Investor Presentation | July 2014!

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EXECUTIVE SUMMARY!!  Power development company with thermal power plant and integrated coal mine project

–  First phase is developing 300MW with potential to scale up to 1,800MW

!  Focused on meeting SADC1 region energy demands, first 300MW targeted at Mozambican demand –  Potential to expand into South Africa, Zimbabwe, Botswana and Malawi

!  Completion of power offtake (PPA) and power concession (PCA) negotiations with Mozambican Government due Q3 2014 –  25 year exclusive offtake with EdM2

!  Targeting construction in 2015 and commissioning in 2018

!  Significant value unlock potential –  +$200m NPV at financial close – H1 2015 –  Equity IRR +18%

!  Ongoing negotiations with co-developers & strategic IPPs

!  Project strategic to Mozambique –  Cost competitive –  Mozambique demand focused –  Close to existing transmission infrastructure

3"1 Southern African Development Community 2 Electricidade de Moçambique (“EdM”) – Mozambican state power and transmission utility

Legal Counsel EPC Selection – Power

Transmission Evacuation

Commercial Advisor - Power

Corporate Advisor Power, EPC Selection – Power & Mine Local Counsel

EPC Selection – Transmission Insurance Advisor

EXPERIENCED AFRICAN POWER TEAM & WORLD CLASS CONSULTANTS!

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Ncondezi Board Management Team

Michael Haworth Non-Exec Chairman

!  Director of Strata Limited, extensive investment banking experience at J.P Morgan in natural resources

Manish Kotecha Chief Financial Officer

Paul Venter CEO

!  +39 years experience in Africa, Russia & Asia, mining, power generation & transport logistics

!  Ex-Prophecy Coal, Gobi Coal & Energy, EN+, Eskom

Hanno Pengilly Chief Development Officer

Dr Estevão Pale NED

!  Ncondezi’s rep on Liaison Committee with EdM & Government !  CEO, Companhia Mocambicana de Hidrocarbonetos, formerly

National Director of Mines & Energy

David Eshmade Country Manager

Christiaan Schutte NED

!  +20 years at Eskom in Group Generation & Technology divisions

Peter O’Connor NED

!  +20 years working for Eskom across Generation Transmission, and Capital Expansion divisions

Jacek Glowacki NED

!  +30 years international experience in the power sector !  CEO & Chairman of Polenergia, a Polish IPP

MOZAMBIQUE HAS THE HIGHEST ENERGY CONSUMPTION GROWTH IN THE SADC REGION!!  Currently generates in excess of 2,000MW (2nd largest in SDAC)

–  1,300MW exported to South Africa

!  Power demand growth at c80MW p.a (14%), the highest in SADC (avg. 3%)

!  Large incentives to expand power generation –  Imports account for 4% of domestic consumption in 2013 but accounted for 40% of total

expenditure –  c. 20% of households have access to electricity –  Projected GDP growth of 7-8%

!  Existing under utilised transmission infrastructure –  300-600MW of capacity –  Plans to expand by over 3,000MW in 2020

!  Potential to sell into SADC region –  Mozambique already sells to SA, Zimbabwe, Botswana

& Namibia

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Southern African Power Pool

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COAL FIRED POWER GENERATION STRATEGIC TO MOZAMBIQUEINSTALLED AND FUTURE CAPACITY�

!  Installed Capacity –  Cahorra Bassa (Hydro) 2,075MW –  Mavuzi (Hydro) 60MW –  Aggreko (Gas) 100MW !  Commissioning Phase��–  Kuvaninga (Gas) 40MW –  Ressano Garcia (Gas) 160MW !  Development (2017-2018) –  Moatize (Coal) 50MW1

–  Ncondezi (Coal) 300MW !  Development (2022+) –  Mpanda Nqua (Hydro) 1,500MW –  Cahora Bassa N.B. (Hydro) 1,245MW –  STE backbone (Transmission) +3,000MW

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1 Available for grid consumption

NCONDEZI POWER PLANT OVERVIEW�

!  First Phase 2x150MW Power Plant

!  Circulating fluidised bed (CFB) combustion technology

!  25 year life

!  EDM exclusive offtaker for 300MW

!  Supplying Mozambican Northern Grid (c.91km away)

!  Coal supply to come from Ncondezi Mine (c.2km conveyor)

!  Transmission evacuation route approved by EdM

!  Commercial Operations Date (CoD) target H1 2018

!  Potential to expand up to 1,800MW �

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Cahorra Bassa (2000MW)

Ncondezi (300-1,800MW)

BASE MAP OF POWER PLANT AND MINE!

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Phase 1 - 300MW!

Phase 2 - 300MW!

Transmission line!

Coal Mine!

PROJECT PROGRESS UPDATE!Delivered " Power Framework Agreement with DoE1

" PPA HoTs with EdM

" Transmission Agreement HoTs with EdM

" Mine Concession granted

" Power Plant ESIA approved

" Mine ESIA approved

" Power Plant EPC binding bids received

" Mine EPC and Contractor binding bids received

" Transmission line RFQ tendered

" Govt & EdM project shareholding participation agreed

" Advanced negotiations on PPA & PCA

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Next Milestones !  PCA to be submitted for final approval in July 2014

!  Final Form PPA to be agreed during Q3 2014

!  Power Plant EPC Selection H2 2014

!  Mine EPC and Contractor Selection – H2 2014

!  Project / Financial Close – H1 2015

!  Construction – H2 2015

!  CoD – H1 2018 1 Department of Energy

ATTRACTIVE PROJECT ECONOMICS FOR PHASE 1 300MW!Pricing

!  Indicative tariff range agreed

!  25 year offtake (Power Purchase) agreement in final stages of negotiations

Capital Cost & Opex

!  EPC binding bids on capex received

!  Contractor binding bids on delivered coal price

!  Financing proposals of between 70-85% debt finance

Economics

!  Annual revenues $200m, +50% EBITDA margins

!  Estimated project NPV at Financial Close >$200m

!  Estimated NPV at CoD of >$1.0bn

!  Target equity IRR of 18-20% achievable

!  Economics to be finalised on receipt of approved Power Concession and Power Purchase Agreements 10"

INVESTMENT HIGHLIGHTS!!  Strong regional demand backdrop and expansion potential

!  Significant momentum in project development –  Key commercial parameters agreed –  Finalising HoTs into binding agreements

!  Clear pathway to unlocking value –  Binding Final Form Power Purchase Agreement targeted for H2 2014 –  Co-developer / Strategic Partner to be announced in H2 2014 –  Financial Close targeted for H1 2015

!  Compelling project economics / value prospect –  Target Equity IRR of +18% –  Expected Project NPV of >$200m at Financial Close –  Expected Total net equity cash flows >$2bn over 25 years

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Appendices!

NCONDEZI POWER PROJECT BENEFITS TO MOZAMBIQUE!"  Security of supply - dedicated mine mouth power station

"  Affordable source of electricity

"  Proven and reliable technology

"  Energy portfolio diversification - reduced exposure to hydro and gas

"  Ideally sized and located - not reliant on large longer term transmission projects

"  Scalability - potential to scale up to 1800MW meet future demand

"  Increase in economic investment and national income

"  Job creation and skills development

"  Government revenues from taxes and levies

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THE NCONDEZI COAL MINE WILL SUPPLY THE POWER PLANT!•  Mine will be located next to power plant

•  Open pit, low strip mining contractor operation •  c.2km conveyor to power plant

•  Key permitting completed

•  Mining Concession granted & ESIA approved Coal Supply Agreement HoT agreed

•  25 year fuel supply

•  Mine to ring-fence coal resources

•  Financing to be secured via 100% bankable offtake agreement with power plant

•  Bindings bids from mining contractors received

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Global Resource Measured JORC Resource

+4Bt 120Mt

Production 1.3Mtpa

Life of Mine 25 years

contingency up to 40 years

Life of Mine Opex $15-20/t

Coal Transfer Pricing $22.50 – 26.50/t

(based on mine post tax IRR of 18%)

Capex Excluding Box Cut $53m

Ungeared NPV $37m

Optimised Mine Feasibility Study

MINE OVERVIEW – CONCESSION MAP & RESOURCE BLOCKS!

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MINE OVERVIEW – RING FENCING OF REQUIRED RESOURCES!!  +4Bt Concession coal resource

!  Mining Concession issued August 2013

!  ESIA approved October 2013

!  Mining area identified in South Block to feed 300MW power station –  810Mt mineable JORC resource

!  Area within South Block ring fenced to provide sufficient product –  For 25 year life of mine (ca. ROM 50Mt) plus a 40%

contingency (ca. ROM 20Mt) –  Key for bankable CSA between mine and power plant

!  Infill drilling in ring fenced area to upgrade resource to measured category –  Drilling completed September 2013 –  Lab results completed October 2013 –  Updated resource published November 2013

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Previous Mine area Drill Spacing!

Updated Mine area Drill Spacing!

Source: Company!

Source: Company!

NCONDEZI TRANSMISSION CONNECTION LINE!!  Electricity generated at Power Plant will be evacuated

into national grid via new 85km transmission line

!  Transmission evacuation study complete

!  Route and technical specification approved by EdM –  400kV double circuit line, initially operated at 220kV –  Allows for easy expansion to 600MW

!  Transmission line to connect to grid will be Build Own Transfer –  EdM will own, operate and maintain new line –  Lump sum and/or fixed monthly payment to

Ncondezi –  Power sold to EdM at power plant gate

!  EPC tender process to commence Q2 2014

!  Future potential to expand –  Matambo substation into Zimbabwe, South Africa and Botswana –  Connect to Malawi (<100kms) –  Connect to future north south backbone line (STE Project)

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Matambo

Ncondezi.220.kV.substation

300.MWPower&Plant

85.km Chimuara

190.km

294.km

104.km

Ncondezi.power.plant

Ncondezi.mining.load

M M M M

Coal&Mine

EDM

Existing.EDM.Transmission.Lines

New.Transmission.Infrastructure

Transmission Solution!

Source: PNO Evacuation Study!