Mozambique's New Independent Coking Coal Project

Andrew Matheson Executive Director Minas de Revuboè Maputo, 5th July 2011

Disclaimer: The information in this presentation is provided by Minas de Revuboe (the “Company”) for information purposes only. No representation or warranty is made with respect to the accuracy, completeness or reliability of the information.Any forward looking information provided by the Company has been prepared on the basis of a number of assumptions which may be incorrect. This document should not be relied upon for any purpose as a recommendation by the Company.

Minas de Revuboè Ltda in Mozambique

Partnerships

Talbot Group 58.9%

Nippon Steel33.3%

Posco7.8%

Moatize Basin -Tete Region

Located in Tete Region, Moatize Basin Prospecting Permit 693L RevuboèCovers area of 3,860 hectare Focussed on a single project area only

Revuboè

Objectives

Corporate Establish Revuboè and build capability within Mozambique Establish infrastructure

Camp and facilities on site at Tete Offices Maputo

People Improve Government liaison Community involvement

Secure Tenure Complete and lodge Mining Concession application ahead of prospecting

permit expiry EIA Social and Labour Plan Mining Concession Submission (including Feasibility study)

Advance development of the project

Approach to the Community

Education & Training Primary Secondary Tertiary Vocational / trade training Scholarships

Infrastructure Medical Community centre Sporting facilities Transport Clean Water Housing

Health HIV Awareness Malaria Cholera Nutrition Emergency Care Immunizations Water Quality

Philosophy Minimise community dislocation

Partnerships with local communities Prioritise local employment from

effected communities Support

Environment andSustainability Responsible development Integrated to operations Safe place work

Project Overview

Exploration History

Phase /Year Company No. Holes Description

1 1968 Govt 14 Regional drilling

2 2005/06 NAB 35 Exploration

3 2007 NAB 19 Exploration (HQ)

4 2008 TMC 42Resource definition (HQ3), aeromagnetics, coal

quality primarily around thermal products (SAMREC Resources)

5 2009 TMC 20 Overall resource definition and coal quality programme HQ +large diam.

6 2010/11 TMC 143

Aerial survey, structural definition in initial mining area, coal quality and resource extension to west and south (HQ/PQ)

(JORC Resources and Reserves)

Drilling

Geology

Moatize Basin - Productive series Alternating sandstone, siltstones and coal

seams Classed as a thick inter-bedded seam

deposit Andre, Grande Falesia and Intermedia

seams intersected in the south and west only

Further review of these seams warranted Chipanga and Bananeiras seams

historically the prime targets due to thickness and proportion of coking coal

Coal Horizons(Typ Thickness)

Andre (2.8m)

Grande Falésia (8.1m)

Intermédia (10.1m)

Bananeiras (9.2m)

Chipanga (31.5m)

Typical Cross Sections

Coal Resources and Raw Quality

Seam Measured* (Mt)

Indicated* (Mt)

Inferred* (Mt)

Total*Measured & Indicated

(Mt)

Total* (Mt)

Andre - 14.48 1.64 14.48 16.12Grande Falesia - 88.65 27.92 88.65 116.57Intermedia - 149.78 35.94 149.78 185.72Bananeiras 54.72 77.03 49.58 131.75 181.33Chipanga 298.68 384.34 213.62 683.02 896.64Total 353.41 714.28 328.71 1067.69 1396.40

Seam Insitu RD

IM(% adb)

Ash(% adb)

Volatiles(% adb)

TS(% adb)

Andre 1.83 1.0 53.0 15.3 1.35Grande Falesia 1.77 0.9 51.3 15.8 1.02Intermedia 1.79 0.9 49.9 15.9 0.94Bananeiras 1.60 1.0 36.7 17.7 1.06Chipanga 1.73 0.9 45.1 15.9 0.93

Note: *JORC GuidelinesAll figures are air dried basis

Project Development

Assumptions:

Secure TenureTiming for start up subject to Regulatory approvals and delivery of port and rail capacityPort and rail capacity restricted in first 5 YearsRamp up to 5Mtpa HCC product by Year 7 CHPP construction staged to this scheduleMining exclusion corridor on Marangozi River (500m)Mine schedules developed based on a 25 Year mine life for hard coking coal production

General Arrangement

Coal Production

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

20,000,000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26

ROM

Coa

l (to

nnes

)

Year

Rom Tonnes Coking Tonnes Thermal Tonnes CHPP Capacity

Second CPP Module

Coal Production

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

9,000,000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

Prod

uct C

oal (

tonn

es)

Year

CokingTons_CoalMined ThermalTons_CoalMined

Introduction of Western area

Second CPP Module

Mining Sequence –Year 1

Mining Sequence –Year 5

Mining Sequence –Year 10

Mining Sequence –Year 15

Mining Sequence –Year 20

Mining Sequence –Year 25

Mining Sequence – Final Landform

Site Infrastructure

Mine Industrial Area and CHPP

Coal Handling Facilities

2 Truck dump stations ROM coal hoppers 700 tonne capacity Primary crushing to 200mm Secondary crushing to 50 mm at nominal capacity of 4,000 tph

Raw coal rejects system Surge bin of 1,500 tonne capacity

2 Coal preparation module- each rated at 1,200 tph Two stage dense medium cyclones Reflux clarifier Flotation

Dual product handling system rated at 2,000 tph Pair of product reclaim tunnels for handling to the train loadout

Coarse rejects system including tailings filtration and co-disposal system, reject conveyor, rejects bin (1,000 tonne)

Coal Handling Facilities

Fine Coal CircuitCoarse Coal Secondary StageCoarse Pre-scalp

Quality and Markets

Metallurgical Coal Demand

Thermal Coal Demand

Product Quality Hard Coking Coal

Coal quality programme at ACIRL/ALS completed June 2011Composites for each seam at target 10.5% ash and averaged

Seam IM Ash Volatiles TS Phos CSN

Andre 1.0 10.5 26.8 1.05 - 8.4

Grande Falesia 0.6 10.5 24.6 0.89 - 8.6

Intermedia 0.8 10.5 25.2 0.90 - 8.7

Bananeiras 1.1 10.5 23.2 0.98 0.067 8.3

Chipanga 0.9 10.5 20.9 1.08 0.080 7.9

Nominal Spec.* 1.0 10.5 22.0 1.04-1.24** 0.085 8*Typical Product Bananeiras and Chipanga seams only** Increases with pit development to the west

Product Quality Thermal Coal

High ash, low volatile, bituminous coal Thermal as a secondary product Based on limited data at this stage Substantial work yet to be completed to establish spec and approach to marketing

Seam Ash(% adb)

CV(MJ/kg adb)

Volatiles(% adb)

TS(% adb)

Andre 24.0 26.7 24.0 1.08

Grande Falesia 24.0 26.7 21.1 0.87

Intermedia 24.0 26.7 21.8 0.78

Bananeiras 24.0 25.2 19.8 0.93

Chipanga 24.0 25.7 17.9 1.02

Nominal Spec 24.0 26.0 19.0 1.1

Challenges

Rail and port infrastructure solutions

Project delivery in a rapidly expanding region

Developing and maintaining trust and productive relationships in the community in which we operate

Integrating new information into the planning and development of the project

Stewardship of the Revuboè business

Summary

Start-up clearly subject to delivery of a robust port and rail solution

Feasibility study has been based on Phase 4 resource work, project improving with technical understanding

We have seen a 30% increase in resources with upper seams

Margin ranking and reserves currently being prepared, expect improvements in reserves and overall project economics

Further optimisation of the project and strategy will be completed once regulatory approvals are finalised

Revuboè is a World Class Coking Coal Project

Contacts

General Enquiriesinfo@revuboe.com

CorporateAndrew Matheson – Executive Director

amatheson@revuboe.com

Clint Zahmel – Country Managerczahmel@revuboe.com

Contact Us

Mozambique

Rua Beijo da Mulata (nº 3.504), nº 98,EdifícioSun Square, MaptuoTel: +258 21 493 429

+258 21 498 177

Obrigado