Independence you can trust

Mozambique A Highlighted Summary

Andrew de Klerk Venmyn Deloitte Advisory & Valuation Manager Venmyn Deloitte Mozambique - A Highlighted Summary

Public Clients Limited Private Clients Under Developed Various Commodities Dynamic Economy Clients Infrastructure

Venmyn Deloitte Oil and Gas Deloitte Mozambique Coal Deloitte Consulting Leadership Mozambique Geology Gold Graphite Heavy Mineral Sands Iron Ore Exploration Tantalum and Niobium Capability Development Mining Technical/Scientific Services Growing Mineral Industry Reporting Growing Gas Sector Independent Mineral Asset Valuation Strategy Financial Services Funding Options

Independence you can trust PAGE 2 Venmyn Deloitte Mozambique - Notes

Independence you can trust PAGE 3 Venmyn Deloitte Mozambique - Country Infrastructure

28°E Lake Bangweulu32°E 36°E 40°E Tanzania Lake Niassa

Lugenda Zambia Metangula Cabo Delgado 12°S Niassa DRC Pemba Malawi Mozambique Nampula Tete Lusaka Lago Chilwa Nacala Cahora Bassa Dam

Kariba Dam Tete Zambezia 16°S Mozambique Manica Harare Quelimane Zimbabwe Sofala

Gwai Mozambique Channel

Lundi Beira 20°S

Roads Transport Corridors Bazaruto Island Rivers Nacala Corridor Vilanculos Botswana Rail Sena Corridor Inhambane Gaza Towns Beira Corridor Nature Reserves Limpopo Airport Port 24°S South Africa Maputo Hydroelectric Power Plant Xai- Xai Gas Pipeline Pretoria Komati Maputo National Boundaries Provincial Boundaries Swaziland Indian Ocean 0 Scale 200km

Independence you can trust PAGE 4 Venmyn Deloitte Mozambique - Notes

Independence you can trust PAGE 5 Venmyn Deloitte Mozambique - Country Infrastructure

Economy and Infrastructure of Mozambique

The Mozambican economy is one of the fastest growing on the African continent, Key Transport Corridors resulting in electricity demand increasing by ~14% annually. 4 Sena Corridor – Mozambique’s only operational railway out of the 4 Mining and quarrying contributes ~3.6% to Mozambique's GDP Tete coalfield. It links Tete to the Port of Beira (heavily invested in by (2013) Vale). A total of 575km, with a capacity of 6mtpa of coal 4 National exports were valued at ~USD4.34 billion, with aluminum 4 Nacala Corridor – will connect the Moatize Coal Mine near Tete to accounting for 31.5%; coal, 12.5%; ilmenite, 7.3%; and natural gas, the Port of Nacala with a capacity of 18 mtpa of coal. A total of 4.9% (2012) 912km, 237km of which passes through Malawi 4 In 2012, Mozambique contributed: 4 Beira Corridor – the main tarred road and rail link between Port of 8 6% of the world's ilmenite production Beira and Harare, Zimbabwe. 8 3% of the world's zircon production 8 1% of the world aluminium production. Power Plants Include 4 Benga Power Plant (Tete Province) – 2,000MW (planning and In addition, Mozambique is a significant contributor to the world's tantalum demand construction) 4 There has been recent significant discoveries of natural gas 4 Ncondezi Power Plant (Tete Province) – 1,800MW (planning and 4 The mineral industry of Mozambique is likely to have substantial construction) growth in the near future, and this growth is expected to be broad 4 Cahora Bassa Hydroelectric Power Plant (Tete Province) – based 2,075MW (power sold to South Africa). 4 Mozambique is divided into ten provinces and has one capital city 4 Resano Garcia Gas Power Plant – 232MW 4 The north of Mozambique is the most underdeveloped and sparsely 4 Mavuzi Hydropower Plant – 52MW populated part of the country 4 Chicamba Hydropower Plant – 38.4MW 4 4,787km of railway 4 Corumana Hydropower Plant – 16.6MW 4 30,331km of roads - 6,303km paved and 24,028km unpaved 4 ACWA Moatize Power Station – 600MW (approved in February 4 98 airports - 21 paved runways and 77 unpaved. 2014 and expected to be completed in three years) 4 Lupata Hydropower Dam will produce 210MW+ and Boroma 612MW, respectively (planning and construction)

Independence you can trust PAGE 6 Venmyn Deloitte Mozambique - Notes

Independence you can trust PAGE 7 Venmyn Deloitte Mozambique - Geology

Geology of Mozambique Tanzania § Geology of Mozambique as a whole is highly diversified and is represented by rocks of Archaean, Palaeo-, Meso- and Neoproterozoic, Karoo, Meso- and Cenozoic ages 12°S

Lake Niassa Lake § Approximately two-thirds of Mozambique is covered by igneous and DRC metamorphic rocks of Archaean to Neoproterozoic age, with the Mozambique Mozambique remaining third covered by Phanerozoic terrains which are found Zambia south of the Zambezi valley and along the coastal belt in the

T northeast. Archaean and Paleoproterozoic terrains represent an Cahora Bassa Dam L E extension of the Zimbabwe Craton, which also includes granitoids, Z A Malawi B M gneisses and migmatites of the Barue Complex B

E 16°S

Z E § Two main orogenies are recognised within Mozambique: the

I L

M I Irumide Orogeny(1,800-1,350Ma), represented today by the

O B

B Irumide Belt in the northwest (forming an extension of the

I O

L Mozambique Channel greenstone belts and granite-gneisses of the Zimbabwe Craton), E

E M

B

B and the Mozambican Orogeny(1,100-850Ma), represented by the

E

Zimbabwe E L

L Mozambique Belt. These geological terrains constitute 90% of the

E

T T Fault Precambrian rocks of Mozambique U § Mozambique's geology is completed by the three main Phanerozoic 20°S Q City/Town Karoo Supergroup (Permo-Carboniferous to Lower Jurassic) I Post Karoo sedimentary basins – the intracratonic Alto Zambezi, Rio Lunho and

B Karoo Supergroup Rio Lugenda Basins.

M

Upr. Proterozoic

A A

Undifferentiated Mid to

Z Z

Upr. Proterozoic

O O

24°S M M Middle Proterozoic South Africa Lower Proterozoic Maputo 0 200km Archaean Scale Indian Ocean

Independence you can trust PAGE 8 Venmyn Deloitte Mozambique - Notes

Independence you can trust PAGE 9 Botswana I Mozambique -OilandGas V n Zambia d South e Zimbabwe enmyn Deloitte p e n d e n Africa c e y o Mozambique u c a n t r u s t Malawi Indian Ocean Mozambique T anzania Mozambique Channel 0 Scale 200km

24°S 20°S 16°S 12°S 0 Mozambique Scale Channel 100km

12°S 20°S (Pande and Area Future NaturalGasPipeline Golfinho/Atum Complex T Prosperidade Complex Coral Discoveries Mamba Complex ENI Petronas Statoil Anadarko Pande/T Persada (EMP) Buzi-Divinhe Block-EnergiMega Sasol Gas Pipeline Sasol ubarão Discoveries A -Sasol Mozambique Basin T emane -Sasol emane Gasfields) Rovuma Basin P AGE 10 Venmyn Deloitte Mozambique - Notes

Independence you can trust PAGE 11 Venmyn Deloitte Mozambique - Oil and Gas

Geology of Mozambique - Oil and Gas

§ East Africa has emerged as a new energy hub, following large § The Central Processing Facility (CPF) of Sasol Petroleum International discoveries of oil and gas in the sub-region creating a growing industry (SPI) in Temane, Mozambique, cleans and dries gas from the nearby which has the potential to greatly impact and transform the economy of Pande and Temane gasfields before it is transported via an 865km Mozambique pipeline to Sasol's facilities in Secunda, South Africa § Mozambique's potential lies primarily in natural gas rather than oil and reportedly, has the potential to host the 4th largest gas reserves of the Deepwater Rovuma Gas Field – Rovuma Basin world after Russia, Iran and Qatar § Oil and gas exploration in the Rovuma River Basin began 50 years ago § Mozambique hosts two important continental-margin basins, namely the but early wells were either dry or gas prone which resulted in the region Rovuma Basin and the Mozambique Basin (Pande, Temane, Buzi- being largely ignored for several decades Divinhe onshore gasfields) § Recently Anadarko and ENI have drilled numerous deep-water wells and have together discovered an estimated 150+ Tcf of natural gas Pande and Temane Gas Fields – Mozambique Basin § Anadarko drilled >25 successful wells, discovering the Prosperidade § Natural gas was first discovered in Mozambique's Pande and Temane complex with an estimated 17-30+ Tcf fields in the mid-1960s, but remained undeveloped for nearly 40 years § This was followed by the discovery of the Golfino and Atum Complexes – due to the socio-political turmoil and lack of a developed gas market at with a combined holding of 15-35 Tcf of recoverable natural gas the time resources § In 1998 Sasol's surveys confirmed potentially significant natural gas § Based on this discovery, Anadarko and its partners are advancing a reserves, with a combined 156 Bcm (5.5 Tcf) field volume, making full- large-scale commercial Liquified Natural Gas development onshore scale production investment economic § In addition, Ani S.p.A (Italy) discovered the Mamba Complex with an § Mozambique launched its first offshore licensing round on 31 March estimated 1.76Tcf of gas. 2000, offering 14 blocks § Sasol Petroleum Temane Limitadah intends boosting electricity capacity at a planned gas processing plant in Mozambique by building an Electrical Expansion and Fuel Gas Superheater at the Temane gas processing facility in the Inhambane Province § The Temane gas processing facility mainly supplies gas to the Central Térmica de Ressano Garcia (CTRG) which generates 175MW of electricity for more than two million Mozambicans – this equates to 23% of Mozambique's current demand

Independence you can trust PAGE 12 Venmyn Deloitte Mozambique - Notes

Independence you can trust PAGE 13 Venmyn Deloitte Mozambique - Coal Deposits

Tanzania Ncondezi Coal Mine (Ncondezi Energy) Chirodzi Coal Mine § Feasibility completed in 2013 (Jindall Africa) § Measured resources of 120mt § First export of coal in Z A M § Planned to produce 1.3mtpa over 25 years LoM May 2013 of 36,000 B 12°S E § Affiliated Ncondezi Power Plant to produce 1 800MW metric tons Lake Niassa Lake Z I M by 2023 § Current production O Mozambique B capacity is 3mtpa I L E Changara Project (Beacon Hiil Resources) § Planned to reach

Zambia B § Drilling completed E 10mtpa L T T Cahora Bassa Dam L E Chigodzi Project (Jindall Africa) Z A Malawi B M § Estimated to contain 700mt B

E 16°S

Z E

I L Mozambique

M I Revuboe Project (Talbot Group, Nippon Steel & Posco)

O B Mozambique Channel § Potential to produce 17mtpa B

I O

L E

E M B

B Minas Moatize Coal Mine (Beacon Hill Resources)

E

Zimbabwe E

L L

E § Commenced production 2011

T T § Reserve of 42.65mt U 20°S

Q Benga Coal Mine (International Coal Ventures Private Limited 65%, Tata Steel 35%) I § Production started in 2012

B § Adjacent to Moatize Coal Mine § Plans to produce 2.4mtpa of coal (1.6 metallurgical and 0.8mt thermal) Botswana M

§ 360mt Resource base inclusive of 112mt Reserve base A

A Coal Mine § Affilicated 2 000MW Benga Power Plant being constructed

Z Z

Coal Deposit Moatize Coal Mine (Vale)

O O

24°S § Opened September 2013 M M Coal Project South Africa § In 2013 produced 4mt of both coking and thermal coal

Zambeze Project (International Coal Ventures Private Limited 65%, Tata Steel 35%) Maputo 0 200km Indian Ocean Scale § Production planned for 2015

Independence you can trust PAGE 14 Venmyn Deloitte Mozambique - Notes

Independence you can trust PAGE 15 Venmyn Deloitte Mozambique - Gold Deposits

32°E 36°E 40°E GOLD BEARING AREAS OF MOZAMBIQUE Tanzania Odzi-Mutare-Manica Greenstone Gold Belt. Alto Ligonha Area. a. Mozambique gold production has a. Gold occurrences within pegmatites traditionally been from this region. associated within rocks resembling

12°S Primarily hydrothermal origin gold in greenstone sequences of iron-quartzites,

Lake Niassa Lake quartz-carbonatic veins and stockworks amphibolitic sequences and/or schists within greenstone zones and lesser gold in alluvia and terraces Namuno Area. Mozambique b. Monarch Mine represents the most typical a. Gold enrichments within alluvia along a Zambia example of these hydrothermal greenstone distance of 20km where the gold is likely gold deposits associated with pegmatites and talc- T chlorite schists Cahora Bassa Dam L Missale, Chifumbaze. E Z a. Gold in quartz veins is located within shear Niassa Greenstone Gold Belt. A B M zones along the contact of Pan-African Fíngoè a. Considered a strategic mineral province of B Malawi E granites and granitoids Mozambique given its largely unexplored 16°S Z E status I L Mulolera. b. Strikes north-south over a distance of M I

O a. Gold within quartz or quartz-sulphide veins >30km through the northwest of the B Mozambique B i n t r u d e d i n t o N e o p r o t e r o z o i c Niassa Province and continues north into

I O Channel

L metasediments neighbouring Tanzania E

E M c. Area targeted by large teams of artisanal B

B Cazula, Tete Suite Area. miners who extract between 5-12t of gold E

E a. Several occurrences of gold-bearing annually, all of which is sold in Tanzania.

L L

E T T quartz and quartz-sulphide veins occurring Most production is from alluvial terraces,

Zimbabwe U within the basic-ultrabasic Tete Suite but more so from primary sources within (Massif) the Txitonga mountain range 20°S Q

I Mavita-Rotanda. Inchope Gorongoze Zone. a. A 2 8 k m W S W- E N E e x t e n s i o n o f a. Associated with N-S rift border fracture

B greenstones from the Cronley Schist Belt of zone with numerous gold bearing quartz Zimbabwe reaching a max. width of 4km veins, quartz-sulphide veins and M Mozambique b. Historically exploited from quartz veins with columbite-tantalite pegmatites related to

minor alluvial panning recorded Archaean gneisses and granite-diorite A A intrusives

Gold Mine Changara-Luenha River. Z Z a. Numerous gold bearing alluvia associated

(care and maintenance) O O with the mineralised greenstones of

24°S

M M Gold Deposit / Zimbabwe b. Inliers of greenstones may exist within Occurance South Mozambique within this region Africa Gold Project Maputo Fíngoè Zone. a. Consists of a series of amphibolites of basic Indian Ocean 0 200km Scale composition, marbles and metadolerite in Swaziland the proximity of granitic intrusions

Independence you can trust PAGE 16 Venmyn Deloitte Mozambique - Notes

Independence you can trust PAGE 17 Venmyn Deloitte Mozambique - Gold

28°E 32°E 36°E 40°E Tanzania Tulo Gold Project (Gold One International) 4 Niassa Greenstone Gold Belt

DRC 12°S

4 Historical 200,000oz resource Lake Niassa Lake declared in 1990s 4 Extensive artisan mining industry Mozambique Mozambique

T Cahora Bassa Dam L Zambia E Z A Malawi B M Manica Gold Project (Auroch Minerals) B E 4 Odzi-Mutare-Manica Greenstone 16°S Z E

I Gold Belt L M I 4 923,200oz gold at the Fair Bride

O B B Mozambique Deposit cleared

I O

L Channel 4 Mine closed E E M

4 Extensive artisan mining industry

B B E

Zimbabwe E

L L

E

T T

U Monarch Mine (Mincor de Mozambique) 20°S Q 4 Directly on Zimbabwe border

I with the deposit mined on both

B sides of the border 4 Mined since historic times, with Botswana M

Gold Mine first sophisticated mining A

A (care and maintenance) occurring in 1888 Z Z Gold Deposit / 4 Virtually continuous production

since c. 3,000t of gold ore O

O Occurance

24°S M M Gold Project produced per month at 6g/t Au South Africa 4 c. 2.97Moz purported to remain at the mine Maputo 4 Currently on care and Indian Ocean 0 200km maintenance Swaziland Scale

Independence you can trust PAGE 18 Venmyn Deloitte Mozambique - Notes

Independence you can trust PAGE 19 Venmyn Deloitte Mozambique - Graphite

Graphite occurs at numerous localities of the basement complex, the most important of which all occur in high-grade metamorphic zones (amphibolitic and granulitic facies) of Tanzania metasedimentary deposits.

Angónia: numerous localised graphite a. Primary ores (some metres thick up deposits and occurrences are located to 50m) containing about 4,3% 12°S

in a NW–SE-oriented zone of the graphite Lake Niassa Lake Angónia Group, which consists of b. Eluvia with graphite layers (3–9m paragneisses with subordinate thick) containing about 4,43% Mozambique Mozambique marbles, quartzites, anorthosites and graphite locally syenites. A large part of these c. Colluvium with graphite (up to 80m Zambia rocks is migmatised with the entire thick) yielding about 4,65% graphite T g r a p h i t e - b e a r i n g s u b z o n e Cahora Bassa Dam L metamorphosed to the granulitic facies Lúrio: the Lúrio Belt has strong potential to E Z yield graphite deposits with over 30 sites A Malawi B M of graphite mineralisation having been B M o n a p o : t h r e e d e p o s i t s o f

E 16°S stockwork–fissure type have been historically mapped. The graphite is Z E

I concentrated in gneisses interbedded L encountered in a synclinal structure M I which discordantly overlies the Gilé with quartzite, leptite and marbles of the

O B Mozambique Channel Group. The graphite is of the Mirrote Group of the Lúrio Supergroup B

I O microcrystalline, flaky crystalline type

L Montepuez: in a sequence of leptitic E E M with graphite content varying between

gneisses, quartzite and feldspar schists of B

B 10.84% and 74.55%. Resources were

E Zimbabwe E

historically estimated at approximately the Mirrote Group of the Lúrio Supergroup

L L

E several graphite mineralisations have T T 4,000,000t graphite-bearing rocks, historically been mapped in a zone of U containing 9.4% graphite and 2 30km x 2km. The graphite content attains

20°S distributed over a surface area of 5km

Q at a depth of 25m values between 2.5% and 17%

I Ancuabe: Considered the most B Projects: i m p o r t a n t g r a p h i t e d e p o s i t o f Ancuabe Graphite Mine

Botswana M Mozambique, and historic sole (Advanced Metallurgical Group N.V.)

producer. The graphite is concentrated 4 Operated from 1994 to 1999. A A within biotitic migmatitic gneisses of Graphite Mine Currently closed

the Chiquita Group of the Chiúre Z

Z 4 Intend producing 6,000tpa of

Graphite Deposit Supergroup that is deposited in a graphite O O synform structure. For the entire

24°S M M Graphite Project Ancuabe area, the graphite resources Balama Project South Africa have historically been estimated to (Syrah Resources Ltd) Indian Ocean exceed 35mt from which three ore 4 Resource estimate of 1.15bt at types have been distinguished: 10.2% TGC and 0.23% V2O5 Maputo 0 200km 4 Mining licence issued at end of Scale 2013

Independence you can trust PAGE 20 Venmyn Deloitte Mozambique - Notes

Independence you can trust PAGE 21 Venmyn Deloitte Mozambique - Heavy Mineral Sands (HMS)

Moma Titanium Minerals Mine Tanzania § Owned by Kenmare Resources plc (Ireland) producing ilmenite, rutile and zircon from the Namalope deposit § 2013 Proven and Probable Reserves

12°S 820mt @ 3.0% ilmenite (24mt), 0.19% DRC Niassa Lake zircon (1.6mt) and 0.059% rutile Mozambique (0.48mt) Mozambique § Dredge mining operation Zambia

T Cahora Bassa Dam L E Z A Malawi B M B Moebase/Naburi HMS Project

E 16°S Z E § Owned by Pathfinder Minerals plc (UK) I L

M I completed a scoping study on it in

O B Mozambique Channel 2011 B

I O § 2,021mt @ 3.55% heavy minerals

L E

E M (HM) containing 71.72mt HM B

B § Intend developing a 1.24mtpa of

E Zimbabwe E

ilmenite, 65,000tpa of zircon and

L L

E T T Mozambique Channel 24,000tpa of rutile

U 20°S

Q

I HMS Mine

B HMS Deposit

Botswana M Corridor Sands Project HMS Project

§ 1,764mt of mineralized sands at an A

A average grade of 4.14% ilmenite Z Z containing about 73mt of ilmenite

§ Feasibility Study completed in 2002 by

O O

24°S BHP Billiton on largest such deposit in

M M South Africa the world Indian Ocean § Mozambique government currently Maputo looking for new investors to develop Maputo 0 200km Scale the project

Independence you can trust PAGE 22 Venmyn Deloitte Mozambique - Notes

Independence you can trust PAGE 23 Venmyn Deloitte Mozambique - Iron Ore (Fe)

Tanzania JV between North River Resources and Baobab Resources Ÿ On the Monte Muande magnetite/phosphate deposit 12°S

Ÿ Hosted within a carbonatite and was Lake Niassa Lake DRC drilled extensively in the 1980s Mozambique Mozambique Ÿ Exploration target of 200-250mt to 40m below surface Zambia B

T Cahora Bassa Dam L E Z A Malawi B M B

E 16°S

Z E

I L Baobab Resource plc (UK) M I

O Ÿ Tete Pig Iron & Ferro-Vanadium B Mozambique Channel B Project - 727mt @ 33.8% Fe2O3 I O

L E

E M Ÿ Undertaking a PFS - indications of a B

B 37 year LOM

E

Zimbabwe E

L L Ÿ Pig iron is the raw material derived

E T T from the intermediate smelting of iron

U ore which is used alongside scrap iron 20°S Q in electric arc furnaces to generate

I crude and finished steel products Ÿ The project’s strategic position and B access to iron and steel making

Botswana M commodities of iron ore, coal, power A A and water (Cahora Bassa Dam) makes Fe Mine

it an ideal position for Fe projects to be

Z Z

Fe Deposit developed

O O

24°S M M Fe Project South Africa Indian Ocean

Maputo 0 200km Scale

Independence you can trust PAGE 24 Venmyn Deloitte Mozambique - Notes

Independence you can trust PAGE 25 Venmyn Deloitte Mozambique - Tantalum (Ta) and Niobium (Nb)

Mozambique is one of three historical tantalum producers in Africa (the others being Rwanda Tanzania and the Democratic Republic of Congo), with Africa currently the second most important source of tantalum after Australia. The majority of Mozambique’s Ta and Nb deposits are located within the Alto Ligonha Pegmatite Belt which is recognised as one of the premier mineralised pegmatite fields in the world. 12°S

Lake Niassa Lake Œ Marropino Mine § Owned by Noventa Ltd (UK), funded by Paragon Resources plc Mozambique Mozambique § One of the largest deposits of tantalum in Mozambique with an estimated 21.7mt of ore grading at 0.019% tantalum Zambia § In 2012 Noventa Ltd (UK) produced 24,918kg of Ta2O5 from Marropino T § Recent closure due to near-surface high-grade resources having been exhausted, Cahora Bassa Dam L E Z increasing levels of radiation affiliated to remaining resources and the lack of A Malawi B M infrastructure B

E 16°S § Radiation is a problem as no Mozambican ports are certified to handle Class 7 Z E

I L radioactive materials and, as such, overland routes to Walvis Bay, Namibia, made this M I

O costly to develop B Mozambique Channel B

I O

L E

E M  Morrua Mine B

B § Owned by Noventa Ltd

E

Zimbabwe E L L § Mine closed in the 1980s and is currently being actively explored

E

T T

U Ž Mutala Mine 20°S Q § Owned by Noventa Ltd

I § Mine closed in the 1980s and is currently being actively explored

B  Muiane Mine

Botswana M

§ Owned by Pacific Wild Cat Resources since 2009 A A § Historical production of unknown amounts, closure date unknown Ta & Nb Mine

§ Declared 1.375mt @ 250g/t Ta O and have commissioned a processing plant with

Z Z 2 5

Ta & Nb Deposit initial planned production of 16,000-34,000kgpa of Ta2O5 concentrate

O O

24°S M M Ta & Nb Project South Africa Indian Ocean

Maputo 0 200km Scale

Independence you can trust PAGE 26 Venmyn Deloitte Mozambique - Notes

Independence you can trust PAGE 27 Venmyn Deloitte Mozambique - Exploration Development Mining

Exploration Development Mining The natural gas sector remains one of Mozambique's most exciting prospects, with Notwithstanding the Mozambican economy having developed year-on-year since the Rovuma Basin nearing a production phase following numerous gas the end of the civil war in 1992, the country remains one of the world's poorest and discoveries. The exploitation of this gas, and development of the Rovuma gas most underdeveloped nations. Despite this, the Mozambican economy remained pipeline, coupled with the production from the Mozambique Basin, has the one of the most dynamic on the African continent in 2013 with a 7% rate of GDP potential to transform the Mozambican energy sector and stimulate further growth. economic growth and development.

The main drivers of this growth were foreign direct investment, which was focused mostly on the extractive sector, and increasing public expenditure with the fastest growing sectors in 2013 being the extractive sector, propelled by a boost in coal exports.

Mozambique’s largely underdeveloped status can be attributed to the lengthy periods of instability during the War of Independence (1964-1975) and the Mozambican Civil War (1977-1992), a time during which the mining and exploration industry remained stunted with little to no growth compared to that of other neighbouring South and East African countries.

Since democracy the minerals industry has been growing and in 2012 contributed 1.7% to Mozambique's GDP, with the value of output increasing by 40.7%. Mozambique currently plays a major role in the world's supply of HMS, aluminium, tantalum and rubies.

Most of Mozambique's mining and mineral processing operations are privately owned, with the government holding varying interests in these. Excluding industrial minerals and gemstones, there are currently approximately 8 producing modern mines in Mozambique (5 coal, 1 HMS, 1 tantalum and 1 graphite), at least 20 advanced exploration projects, some of which are nearing development, and numerous artisanal mining communities.

Independence you can trust PAGE 28 Venmyn Deloitte Mozambique - Notes

Independence you can trust PAGE 29 Venmyn Deloitte Mozambique - Capability

Fill the gaps, find the value...

Production alue ility sib Fea

Project V Exploration Project Evaluation

Level Of Confidence

TECHNICAL / SCIENTIFIC SERVICES

§ Exploration Planning Ÿ Pit Optimisation Ÿ Definitive Feasibility Study Management Ÿ Yield Reconciliation Ÿ Independent Sign-Offs Ÿ Reserve Estimation and Review Ÿ Macro Analysis of Commodities, Ÿ Sample Trail Audits Ÿ Preliminary Economic Assessment Ÿ Mass Balances Markets and Trends Ÿ 3D Geological Modelling Ÿ Preliminary Feasibility Studies Ÿ Cut-Off and Pay Limit Calculations Ÿ Cost Analysis Ÿ Mineral Resource Estimation Ÿ Feasibility Gap Analysis Ÿ Metallurgical Studies and Ÿ Support Structure Assessment Ÿ Technical Trail Audit Ÿ Database Verification Statements Ÿ Life of Mine Reviews Ÿ Environmental Statements Ÿ Independent Environmental Ÿ Environmental Feasibility Studies Ÿ Life of Mine Design, Scheduling and Ÿ Structural Modelling Scoping and Feasibility Studies Ÿ Market Studies Optimisation Ÿ NI 51-101 Oil and Gas Reports Ÿ NI 51-101 Oil and Gas Reports Ÿ NI 51-101 Oil and Gas Reports Ÿ Stockpile Management Ÿ NI 51-101 Oil and Gas Reports

REPORTING - Compliance with all Global Reporting Codes and Securities Commissions

Ÿ Prospectivity Reviews Ÿ Competent Persons’ Reports Ÿ Full Technical Independent Reviews and Ÿ Annual Reporting Ÿ Listing Documentation and Readiness Ÿ Techno-Economic Reports Report Compilation Ÿ Compliance Gap Analysis Appraisals Ÿ NI 43-101 Independent Technical Ÿ Mineral Asset Valuation Reports Ÿ On-Going Reporting Reports Ÿ Independent Sign-Off on Press Releases Ÿ Expert Reports Ÿ Sarbannes-Oxley Compliance Checks Ÿ Due Diligence Ÿ Investor Promotional Documentation Ÿ Coal Reporting (SANS 10320)

Independence you can trust PAGE 30 Venmyn Deloitte Mozambique - Notes

Independence you can trust PAGE 31 Venmyn Deloitte Mozambique - Capability

Exploration Project Evaluation Feasibility Production

INDEPENDENT MINERAL ASSET VALUATION

Ÿ Financing Purposes Ÿ Financing Purposes Ÿ Financing Purposes Ÿ Financing Purposes Ÿ M&A Purchase / Sale of Mineral Ÿ M&A Purchase / Sale of Mineral Ÿ M&A Purchase / Sale of Mineral Ÿ M&A Purchase / Sale of Mineral Property Property Property Property Ÿ Capital Gains Tax Purposes Ÿ Capital Gains Tax Purposes Ÿ Capital Gains Tax Purposes Ÿ Capital Gains Tax Purposes Ÿ Insurance Purposes Ÿ Insurance Purposes Ÿ Insurance Purposes Ÿ Insurance Purposes Ÿ Statutory Filing and Reporting Ÿ Statutory Filing and Reporting Ÿ Statutory Filing and Reporting Ÿ Statutory Filing and Reporting Ÿ Feasibility Studies and Technical and Ÿ Feasibility Studies and Technical and Ÿ Fair Value Impairment Testing Financial Due Diligence Financial Due Diligence Ÿ Purchase Price Allocations Ÿ Purchase Price Allocations (in (in conjunction with Corporate Finance) conjunction with Corporate Finance) Ÿ Fairness Opinions

STRATEGY

Ÿ Strategic Portfolio Assessment Ÿ *Mergers and Acquisitions Ÿ Mergers and Acquisitions Ÿ Mergers and Acquisitions Ÿ Market and Commodity Reviews Ÿ Deal Structure Assessment Ÿ Deal Structure Assessment Ÿ Deal Structure Assessment Ÿ Independent Techno-Economic Ÿ Independent Techno-Economic Ÿ Independent Techno-Economic Due Diligence Due Diligence Due Diligence FINANCIAL SERVICES - Independent Financial Reporting in Compliance with all International Reporting Codes (SAMVAL, VALMIN, CIMVAL)

Ÿ Mineral Asset Valuation Ÿ Economic Evaluation of Project Ÿ Full Economic Evaluation Ÿ Quality of Capital Investment Ÿ BEE Deal Structure Options Ÿ Tax Structure Advice Ÿ Risk Return Analysis Ÿ Commodity Valuation Curves Ÿ *Capital Efficiency Studies Ÿ *Corporate Finance Ÿ Tax Structure Advice Ÿ Corporate Finance Ÿ *Risk Assessment Ÿ *Risk Assessment Ÿ *Corporate Finance Ÿ Deal Structure Assessment Ÿ *Decision Analysis Ÿ *Maximisation of Capital Return Ÿ *Risk Assessment Ÿ Fair and Reasonable Statements Ÿ Independent Valuation Reports Ÿ *Business Case Robustness Ÿ *Maximisation of Capital Return Ÿ Fairness Opinion Ÿ Capital Gains Tax Certificates Review Ÿ *Business Case Robustness Review FUNDING OPTIONS

Ÿ *Access to Capital through Debt and Ÿ *Access to Capital through Debt and Ÿ *Access to Capital through Debt and Ÿ *Access to Capital through Debt and Equity Equity Equity Equity Ÿ *Commodity Backed Finance Ÿ *Commodity Backed Finance Ÿ *Commodity Backed Finance Ÿ *Commodity Backed Finance Ÿ *Private Equity Markets Advice Ÿ *Private Equity Markets Advice Ÿ *Private Equity Markets Advice Ÿ *Private Equity Markets Advice

* IN CONJUNCTION WITH GLOBAL DELOITTE ADVISORY SERVICES

Independence you can trust PAGE 32 Venmyn Deloitte Mozambique - Notes

Independence you can trust PAGE 33 Venmyn Deloitte Mozambique - Leadership and Key People

Leadership and Key People

VENMYN DELOITTE DELOITTE MOZAMBIQUE Andy Clay - Managing Director João Machado - Country Managing Partner - Partner, Consulting +27 (0)11 656 1450 [email protected] + 25 (0)821 320 955 [email protected]

VENMYN DELOITTE DELOITTE CONSULTING SOUTH AFRICA Andrew de Klerk - Exploration Manager Andrew Lane - Energy & Resources Leader, Director

+27 (0)11 517 4167 +27 (0)11 517 4205/6 [email protected] [email protected]

Independence you can trust PAGE 34 Venmyn Deloitte Mozambique - Notes

Independence you can trust PAGE 35 Venmyn Deloitte Mozambique - Clients

Clients

Historically, the Mozambican mining industry has been driven by the exploitation of the coal deposits of the Moatize Basin in the Tete Province and gold of the greenstone deposits of the Odzi-Mutare-Manica and the Tulo Greenstone Belts.

Over the past +10 years Venmyn Deloitte has conducted numerous phased and compliant studies and due diligences on these key commodities for varying clients (both public and private) as well as on other deposits including Ta and Nb, HMS and industrial minerals.

Coupled with Venmyn Deloitte’s Mozambican Experience, Deloitte Mozambique's in-country relationship with the Mozambican government, other state owned entities and key producers and explorers continues to spread Deloitte and Venmyn Deloitte's service offering to the Mozambican minerals industry.

Independence you can trust PAGE 36 Venmyn Deloitte Mozambique - Notes

Independence you can trust PAGE 37 Venmyn Deloitte Mozambique - Glossary & Abbreviations

Glossary & Abbreviations

CTRG Central Téramica de Ressano Garcia Ma Millions of years mtpa Million tonnes per annum

Ta2O5 Tantalum pentoxide Tcf Trillions of cubic feet

V2O5 Vanadium pentoxide

Independence you can trust PAGE 38 Venmyn Deloitte Mozambique - Notes

Independence you can trust PAGE 39 Venmyn Deloitte Mozambique - Contact Us

www.venmyndeloitte.com Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (DTTL), a UK +27 (0)11 656 1450 | P.O. Box 782761, Sandton, 2146, South Africa | Deloitte private company limited by guarantee, and its network of member firms, each of Place, The Woodlands, Building 33, 20 Woodlands Drive, Woodmead, Sandton. which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Compiled by Technigraphics Touche Tohmatsu Limited and its member firms. [email protected] | +27 (0)11 517 4205/6 Deloitte provides audit, tax, consulting and financial advisory services to public and private clients spanning multiple industries. With a globally connected network of member firms in more than 150 countries, Deloitte brings world-class capabilities Android Apple and high-quality service to clients, delivering the insights they need to address their most complex business challenges. Deloitte has in the region of 200 000 professionals, all committed to becoming the standard of excellence.

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Independence you can trust PAGE 40