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D i s c l a i m e r a n d I m p o r ta nt I n fo r m a t i o n

•This presentation has been prepared by Hodges Resources Limited (“Hodges”). It contains forecasts and forward looking statements which are no guarantee of future performance and which involve certain risks. Actual results and future outcomes will in all likelihood differ from those outlined herein. The presentation should not be construed as an offer or invitation to subscribe for or purchase securities in Hodges. Nor is it an inducement to make offer or an invitation with respect to said securities. •Forward-looking statements are statements that are not historical facts. Words such as “expect(s)”, “feel(s)”, “believe(s)”, “will”, “may”, “anticipate(s)” and similar expressions are intended to identify forward-looking statements. These statements include, but are not limited to statements regarding future production, resources or reserves and exploration results. All of such statements are subject to certain risks and uncertainties, many of which are difficult to predict and generally beyond the control of the Company, that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include, but are not limited to: (i) those relating to the interpretation of drill results, the geology, grade and continuity of mineral deposits and conclusions of economic evaluations, (ii) risks relating to possible variations in reserves, grade, planned mining dilution and ore loss, or recovery rates and changes in project parameters as plans continue to be refined, (iii) the potential for delays in exploration or development activities or the completion of feasibility studies, (iv) risks related to commodity price and foreign exchange rate fluctuations, (v) risks related to failure to obtain adequate financing on a timely basis and on acceptable terms or delays in obtaining governmental approvals or in the completion of development or construction activities, and (vi) other risks and uncertainties related to the Company’s prospects, properties and business strategy. Our audience is cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof, and we do not undertake any obligation to revise and disseminate forward-looking statements to reflect events or circumstances after the date hereof, or to reflect the occurrence of or non-occurrence of any events. •The Company has not completed feasibility studies on its projects. Accordingly, there is no certainty that such projects will be economically successful. Mineral resources that are not ore reserves do not have demonstrated economic viability. The Company is not declaring an ore reserve at this stage with this work yet to be completed. The existing resource model was utilised to estimate mineable resources. •The stated exploration targets and coal quality must be regarded as provisional indication of likely tonnages and qualities only. The exploration targets are based upon the results to date. The exploration targets includes potential quantity and grades and are conceptual in nature. There has been insufficient exploration to define the targets as Mineral Resources and it is uncertain if further exploration will result in the determination of further Mineral Resource. (1) The Coal Resources was compiled by GEMECS (Pty) Ltd and are detailed in a report dated 25 June 2012. The competent person with overall responsibility for the reporting of the Coal Resources is Nico J Denner, Pr.Sci Nat, B.Sc Hons (Geology) of GEMECS (Pty) Ltd who is a fellow of a Recognised Overseas Professional Organisation, the Geological Society of South Africa. Nico Denner has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Denner consents to the inclusion in the presentation of the matters based on his information in the form and context in which it appears. (2) The information in this report that relates to Exploration Targets on the Moiyabana project is based on a report completed and compiled by independent consultant group Runge Limited; whom Gordon Naidoo is the referred competent person and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Naidoo consents to the inclusion in the Presentation of the matters based on his information in the form and context in which it appears.

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Summary COMPANY Public company, listed on the Australian Securities Exchange ASX CODE: HDG

PROJECTS Coal Projects in Botswana (2) Gold Project in Ghana (1) Uranium assets in Sweden (4)

CORPORATE OBJECTIVES To become a mining company with the focus on the development and mining of energy resources, specifically the development of the Coal projects in Botswana. In conjunction with creating shareholders wealth through these developments and other potential acquisitions.

BOARD OF DIRECTORS

Peter Mullens Chairman Bsc (Hons Geol)

Mark Major Managing Director Bsc (Geol), MBA

Nathan McMahon Non-Exec Director BComm

Bryan Dixon Non-Exec Director Bcomm, CA ACIS

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Company Overview

MAJOR SHAREHOLDERS (as at 25/06/12)

Management 15% Pinetree Capital (Toronto) 10% Citicorp Nominees (Hong Kong) 6% Citicorp Nominees 5% Widerange Corporation Pty Ltd 3%

Top 20 54% Top 100 78%

ASX CODE HDG Shares on Issue 78M

Options (20c-58c) 10M

Current Share Price (23/06/12) $0.15

12 month range $0.14 – $0.52

Market Cap (undiluted) $11M

(diluted) $13M

Cash (end Q1/12) $2.7M

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B o t s w a n a C o a l P r o j e c t s - S u m m a r y

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Moiyabana

Exploration target of 1.4-1.65BT.

Shallow bituminous to sub-bituminous coal identified during drilling 2011.

Maiden JORC resource expected Q3 2012.

Morupule South

2.3 BT JORC inferred resource.

1.2 BT amenable to open cut mining.

CV Average of 4,967 Kcal/kg and < 30% ash on the Morupule Seam.

Seam yields up to 51 % deliver14.5% ash & 6,200Kcal/kg for the Bottom Morupule Seam.

BOTSWANA

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Morupule South Pro ject

1 Hodges ASX announcement: JORC inferred 2.3Bt resource released to the ASX 25 June 2012

Morupule South Drill hole location

Activities completed in last 12 Months.

Drilled 52 drill holes including 15 diamond drill holes (2,076 meters) and 37 reverse circulation (RC) open holes (5,070 meters). All diamond and the majority of RC open holes were geophysically logged and depth corrected. Coal bore core samples were delivered to M&L Inspectorate Pty Ltd laboratory in Middelburg, for proximate analysis and washability test work. Ultra High Resolution Airborne Magnetic survey flown over entire PL and interpretation completed. Development of environmental and social baselines. Updated 2.3BT JORC Inferred resource estimate1 completed by GEMECS (Pty) Ltd.

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Morupule South JORC Resource

RESOURCE MODEL INFORMATION Coal seams thinner than 50cm, as well as coal with a raw ash of >45% were excluded from the resource estimation reporting. Bore hole coal seam data was correlated by geological logging and down hole geophysics, with subsequent geological modelling and coal resources estimated using Gemcom MinexTM software. Coal qualities were modelled and reported on an air-dried basis as reported from the lab. Coal qualities were only composited for seams that have a sampling coverage of at least 90%. Compositing of qualities is done on a density weighted basis across the total thickness of the coal seam/selection. Model expansion of the qualities was limited to 500m from the last known data point. Model grids were created on a 50x50 mesh size.

SEAM NAME

GROSS INSITU

TONNES

RAW COAL QUALITIES (AIR DRIED)

Ave Seam

TK

CV (Kcal/kg)

Ash (%)

Inherent Moisture (%)

Volatile Matter

(%)

Fixed Carbon

(%)

Total Sulphur

(%)

SSB 1.0 MT 0.6 4,346 34.2 3.1 29.6 33.8 1.84 SLB 319 MT 2.6 4,442 35.3 3.5 25.1 36.1 2.25 S2B 35 MT 1.9 4,069 38.6 4.1 21.2 36.2 1 SMT 1,010 MT 10.3 4,083 38.2 3.9 20.1 37.8 0.87 SMB 965 MT 7.3 4,967 29.6 3.7 20.2 46.6 1.13 Total 2,330 MT

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Schematic Stratigraphy of the Morupule South Coal field

Morupule Shallow

Morupule Deep

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Resource Zones within Morupule South Project

Open pit Underground

Average Strip Ratio Waste m3: Coal tonne e.g. 1.7 : 1

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Indicative Wash Results

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Target range CV 24Mj (5,731Kcal)

Seam Sample No.

CV Ave

Mj/kg

Ave Yield

Min Yield

Max Yield

Ave Ash

Min Ash

Max Ash

Ave VM

Ave IM

Ave TS

Min TS

Max TS

SSB 1 24.0 89.5 22.6 34.2 3.5 5.72 SLB 4 24.0 75.0 62.2 87.0 20.9 20.0 21.9 30.8 3.7 0.93 0.76 1.22 S2B 3 24.0 34.7 21.9 58.5 19.4 13.3 25.8 25.4 5.0 0.59 0.26 1.19 SMB 7 24.0 78.3 41.8 94.4 19.8 18.9 20.7 23.9 4.5 0.48 0.34 0.74

Target range CV 25Mj (5,970Kcal)

Seam Sample No.

CV Ave

Mj/kg

Ave Yield

Min Yield

Max Yield

Ave Ash

Min Ash

Max Ash

Ave VM

Ave IM

Ave TS

Min TS

Max TS

SSB 1 25.0 59.1 20.4 35.4 3.5 6.06 SLB 4 25.0 66.9 52.6 81.7 18.2 17.1 19.3 31.8 3.8 0.79 0.46 1.05 S2B 3 25.0 24.0 8.8 45.1 16.9 10.8 23.8 26.4 5.1 0.57 0.22 1.16 SMB 7 25.0 66.6 29.2 90.9 17.0 15.6 18.0 24.6 4.5 0.46 0.25 0.69

Target range CV 26Mj (6,209Kcal)

Seam Sample No.

CV Ave

Mj/kg

Ave Yield

Min Yield

Max Yield

Ave Ash

Min Ash

Max Ash

Ave VM

Ave IM

Ave TS

Min TS

Max TS

SSB 1 26.0 45.4 19.7 36.6 3.9 6.05 SLB 4 26.0 56.7 15.5 14.4 16.7 32.7 3.9 0.72 0.48 0.90 S2B 3 26.0 14.4 0.0 28.5 17.6 13.3 21.8 28.2 4.8 0.74 0.36 1.12 SMB 7 26.0 51.3 20.7 79.5 14.5 13.2 15.7 25.5 4.7 0.46 0.23 0.70

Target range CV 27Mj (6,448Kcal)

Seam Sample No.

CV Ave

Mj/kg

Ave Yield

Min Yield

Max Yield

Ave Ash

Min Ash

Max Ash

Ave VM

Ave IM

Ave TS

Min TS

Max TS

SSB 1 27.0 0.0 SLB 4 27.0 44.4 27.0 70.7 13.0 11.5 14.1 33.7 4.0 0.73 0.48 1.01 S2B 3 27.0 8.4 0.0 44.4 14.5 10.8 18.1 30.1 4.6 0.71 0.42 1.00 SMB 7 27.0 29.6 13.7 52.2 12.3 10.3 13.5 27.1 4.7 0.45 0.24 0.63

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Morupule Ready to Mine

Pictorial view of the Government’s Plans to extend the grid into the North Western part of the country, which is currently at Feasibility Study Stage.

Information was obtained from the presentation by Botswana Power Corporation at the Botswana Coal and Energy Conference 2011

400KV power line runs directly over project which links into SAPP grid.

Low strip open pit, thus low cost mining, expected.

Significant resource and with premium domestic power generation raw product and benefit of greater product beneficiation.

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Morupule South Future

2011Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Initial drilling and JORC inferred ResourceIndicated and Measured ResourceConceptual StudyPrefeasibility StudySample testingE&S Baseline collectionMine PlanEnvironmental assessmentFinal Feasibility (Bankable)Decision to MineEngineering & ConstucutionStart Production

2012 2013 2014Activity

Focus on the areas amenable to open pit operations; Central, West and East blocks. Concept and Prefeasibility studies on mine and integrated power projects. Potential small scale Mine development for domestic IPP off take (1.5Mtpa). Baseline studies and preparation of EIA ongoing.

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Moiyabana Coal Project

Summary In-situ coal exploration target(2) to between 1,400Mt and 1,650Mt, with 58 diamond holes (~5,650m) & 11 reverse circulation drill holes (~996m), drilled in 2011. All (~581 samples) analytical results submitted (proximate and washed) have been received now. Resource Model and JORC compliant resource estimation currently being undertaken. Maiden inferred resource report expected soon (Q3, 2012). Scoping studies to commence once resource complete. Potential to move rapidly into proving up minable reserves on area which shows most promising for low cost mining and better quality.

2. The stated exploration targets and coal quality must be regarded as provisional indication of likely tonnages and qualities only. The exploration targets are based upon the results to date. The exploration targets includes potential quantity and grades and are conceptual in nature. There has been insufficient exploration to define the targets as Mineral Resources and it is uncertain if further exploration will result in the determination of further Mineral Resource.

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Moiyabana Coal Project F

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Moiyabana Update

Findings Continuous flat lying, thick coal seams identified over length of completed 2011 drilling. Two major seams identified. Two minor. Potential open pit zones with low strip ratios. The coal beds comprise bituminous to sub-bituminous coal seams separated by partings of higher ash coal and carboniferous shale’s. Calorific values up to 6,197Kcal/kg were recorded on raw air dried basis. Wash testing reveals calorific values up to 7,212Kcal/kg and <10% ash can be achieved on selected seams. Yields recorded ranged from 26% up to 76% at the 1.6 float fraction.

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Moiyabana Future

2011Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Initial drilling and JORC inferred ResourceIndicated and Measured ResourceConceptual StudyPrefeasibility StudySample testingE&S Baseline collectionMine PlanEnvironmental assessmentFinal Feasibility (Bankable)Mine ApprovalEngineering & ConstucutionStart Production

2012 2013 2014Activity

Focus on the areas amenable to open pit operations with quality coal. Concept and Prefeasibility studies on mine and integrated power projects. Baseline studies and preparation of EIA ongoing. Development plan for 50Km of rail, rail infrastructure and power line.

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Maiden resource on Moiyabana (inferred and some indicated) Q3 2012. Measured and Indicated resource on portion of Morupule South. Scoping/Prefeasibility studies on each project and associated integrated power project. Obtain direction on export potential and possible timings – mid to long term viable export options. Review and secure domestic coal supply agreements (IPP and others). Marketing study and strategy development on coal products. Identify strategic long term coal partners.

MOVING TO PRODUCTION

Hodges - The Next 12 Months

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Summary

Potential for +4 Billion tonnes of thermal coal;

2.3 Billion tonnes already in inferred status and situated next to operating coal fired power station and infrastructure.

Large exploration upside still existing at Moiyabana.

Commencing resource definition and mining studies and intergraded power project studies at Morupule South (Bulk sampling, establishment of reserves, etc).

Complete economic studies and move towards production at Morupule South.

EXCITING YEAR AHEAD

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Level 2, 38 Richardson Street, West Perth, Western Australia info@hodgesresources.com.au www.hodgesresources.com.au

Ph – (08) 9322 6412 Fax – (08) 9322 6398

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