Bwanje Cement Project PresentationLondon – 20th March, 2013

Bwanje Cement

• Bwanje Cement Company Limited (BCCL) has for sometime been working on a green field cement plant to be constructed at Malowa Hills, Malawi.

• The planned plant will consist of one 500,000 MT annual capacity production line.

Bwanje Cement

Bwanje Cement Company Limited, a wholly Malawian owned company was incorporated on 19th March, 2010, with Company Registration No 10401

BCCL Current Shareholders are: Umoza Holdings Limited , Kanjere Associates (Architects), Zingano Associates (Architects), Anderson Engineering(Mechanical Engineers), Matundu Holdings(Investors)

Umoza Holdings has been incorporated as a special purpose vehicle (SPV)

Bwanje Cement

Bwanje Cement Company Ltd

Mining Licence/rights was granted to Bwanje Cement Company Limited over the Malawi and Khungule Hills Limestone deposit by the Malawi Department of Mines in April, 2010, Licence number ML0186/10

Mining Licence is valid for an initial 15 year period and renewable, covering a 15 sq. km of concessioned land;

Malawian Laws provide that land rights are secured together with mining rights provided that relocation and compensation is agreed between settlers and rights holders;

Environmental approval have been granted by the Department of Environmental Affairs in Malawi;

Bwanje Cement Co. Ltd cont..

Bwanje Cement

Bwanje Cement

Project Description cont..

Bwanje Cement

Project Description cont..

Railway Line to Lilongwe and Blantyre

Malowa Hill

Khungule HillTarred Road (M5) to Blantyre

& Lilongwe

Site Locality + Lease Area

ESCOM Sub-station

MINING AND GEOLOGY Initial studies carried out by Met-Chem, a Canadian

consulting company commissioned by Malawi Government and funded by the World Bank covered surface mapping 2481 metres of drilling and 647 assay samples which proved 15million Mt at Malowa Hills.

The exploration programme was for chemical grade lime.

Kai Batla reviewed the data and produced models

Bwanje Cement

TECHNICAL OVERVIEW

Bwanje Cement

TECHNICAL OVERVIEW cont..

Bwanje Cement

TECHNICAL OVERVIEW cont..

Bwanje Cement

Cut-offCaO%

Tonnes

Percent (%)

CaO CaCO3 MgO MgCO3Total

CarbonatesSiO2 Al2O3 Fe2O3

0.00 46,809,000 45.46 80.92 4.60 9.61 90.53 8.94 1.52 0.51

10.00 46,803,000 45.47 80.93 4.59 9.60 90.53 8.94 1.52 0.51

20.00 46,781,000 45.48 80.96 4.58 9.57 90.53 8.94 1.52 0.51

30.00 45,884,000 45.83 81.57 4.59 9.58 91.16 8.58 1.44 0.51

40.00 38,543,000 47.71 84.92 3.78 7.89 92.81 7.68 1.32 0.51

50.00 15,169,000 51.69 92.00 1.84 3.85 95.85 4.77 1.04 0.30

Current Results

Bwanje Cement

TECHNICAL OVERVIEW cont..

• BCCL and PPC carried out a joint drilling programme in September, 2011 on Khungule Hill as a potential source of limestone uncontaminated by granite and/or dolerite intrusives.

• The drilling consisted of 25 inclined RC holes on sections 200m apart with 100m hole spacing. Hole depths varied from 30m to 73m.

• Downhole samples were collected every meter and full analyses of the 1561 samples were undertaken at PPC Lab and counter checked by Set Point Lab;

• The scope of work included the creation of a geological database, ore body modelling, block model creation and grade interpolation, pit design and reserve reporting and resource classification.

• A hand-held geomagnetic survey was conducted by C. E. Kaphwiyo, consulting Geo-Physist and reported in November 2011.

• A low magnetic signature indicates a potential for sub-outcropping limestone.

Geomagnetic Survey

Bwanje Cement

TECHNICAL OVERVIEW cont..

Based on the recent Geomagnetic Survey, the area of most potential for further prospecting is to the North East of the Malowa hill. The survey indicates a wide unit of sub-outcropping limestone striking in a South Easterly direction towards the Khungule hill.

All inclusive drilling and sampling could also be conducted to test the Malowa

hill resource.

The tonnage distribution for the Bwanje deposits are illustrated below:

Bwanje Cement

TECHNICAL OVERVIEW cont..

Bwanje Cement

TECHNICAL OVERVIEW cont..

Further drilling indicated

Malowa-24Mt (granite/dolerite intrusions + high alkalis)

Khungule-4.5Mt (high alkalis)

• LHA Management Consultants (LHA) were contracted to produce an independent review of the Malawi cement market and assess the competitive market situation

• The report also gives an overview of the economic and infrastructure investment prospects in Malawi, as well as a cement industry perspective with respect to future cement production capacity and demand and pricing trends.

Bwanje Cement

CEMENT MARKET

• Lafarge strategy is to supply Malawi through its production units in Zambia and Tanzania.

• Shayona proposing expansion to 100,000 mta;

• Cement Products Limited is a new entrant with projected production capacity of 90,000 mta

CEMENT PROJECTED PRODUCTION CAPACITY

Bwanje Cement

CEMENT MARKET Contd/…

Regional Cement Demand in 2010 and 2020Bwanje Cement

CEMENT MARKET Contd/…

Equity Investors

Umoza Holdings - Sponsor Equity;

Private Placement – Issue of shares for cash in Umoza Holdings;

Strategic Equity Partner – controlling shareholder and operator;

Sponsor Equity will be cash and contribution of the mineral asset;

Strategic Equity Partner will contribute cash into the project.

Bwanje Cement

PROJECT FUNDING

Transaction Structure

Shareholder 2Shareholder 1Sponsor

BCCL

SEP/OperatorUmoza Holdings

Ltd

Lenders Mining Licence

EPC Operator

Mining licence and Environmental approvals granted, but EIA has to be verified for World Bank Compliance;

28 million MT indicated cement grade limestone deposit to be signed off by competent person;

Market study for both Malawi and the region completed; FLSmidth have provided preliminary process and plant designs ; Investment Certificate with the Malawi Investment and Trade

Centre obtained; Geotechnical Survey to be carried out for factory foundations; Access road from Road M5 to be improved to all weather; Optimally positioned close to essential infrastructure; Low per capita consumption presents upside potential; Power supply committed by ESCOM Malawi;

Bwanje Cement

CONCLUSION