ALMA METALS LIMITED — Investor Presentation 2015

Jul 20, 2015

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Developing Power Generation Projects in Southern Africa July 2015

Summary

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• AFR is participating in the development of three large-scale power projects in Botswana

• These are close to the existing transmission grid and centrally located within SADC

• Sese JV (AFR 49%): First Quantum Minerals are evaluating the potential for development of a fully integrated mine and power station

• Mmamantswe (AFR 100%): binding term sheet agreed to sell project for US $20M subject to a tender bid being shortlisted

• Mmamabula West (AFR 100%): seeking to create further value via development of integrated mine-mouth power station(s) +/export coal mines

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Regional Power Hub

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• African Energy has substantial coal resources in Botswana

• Positioning the business to focus on regional power demand:

• Surrounded by robust demand for power : every country in SADC is chronically short of reliable, affordable base-load power

• Regional hub : AFR’s projects are centrally located within the SAPP transmission grid

• Easy access to core infrastructure : AFR’s projects within close proximity to grid connection

• Stable business environment : Botswana provides the most secure/stable fiscal and political setting in southern Africa

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Power Generation – The Economic Case

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1. Robust market demand for affordable base-load power

• Cost of new baseload generation >>$0.10 per kWh across the region

• Utilities paying short term prices >$0.15 per kWh for imported power

• Most utilities still reliant to some extent on diesel/HFO at >$0.30 per kWh

2. Access to secure fuel source and low financing costs

• Ownership of fuel source reduces exposure to price risk

• Access to low cost coal via resource ownership minimises fuel costs

• Access to low cost finance allows competitive tariff offer whilst maintaining healthy equity returns

3. Competitive advantage for low-cost power producers

• Lowest fuel + finance costs a big advantage in securing long term power purchase agreements

• Few new base load projects able to offer competitive pricing at or below retail tariffs

• Opportunity for energy trading of surpluses if project finance structure allows

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AFR’s Power Generation Portfolio

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Project strengthened via partnership with First Quantum Minerals
Short-term potential return from Mmamantswe
Sese JV fully funded to project decision Future project pipeline
point
JV partner brings balance sheet Under a binding term sheet,
strength, project management Mmamantswe project will be fully
experience and engineering skills funded to bid for RSA IPP tender
A number of development options at
Successful shortlisting will provide a Mmamabula West
strong cash return to AFR
Includes multiple power generation
opportunities and regional/global export
options
SESE JV
MMAMANTSWE
MMAMABULA WEST
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The Sese JV– Key Terms

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• First Quantum Minerals Limited (FQM) have invested AUD $8M in Sese to take a 51% project interest and are now the manager

• FQM increasing their interest to 75% by sole funding the next AUD $12M in the joint venture

• This funding is being used to evaluate the development of a fully integrated mine and mine-mouth power station

• FQM are responsible for sourcing all additional funding beyond the initial $20M investment, which would include that necessary to build an integrated power project (if approved)

• AFR’s 25% share of this additional funding will be loaned to it by FQM, carried to commercial production, and is to be repaid from dividends

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Mmamantswe – Sale Opportunity

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• South Africa’s Dept. of Energy seeking 600MW of cross-border, coal-fired baseload IPP via public tender

• Binding term sheet recently executed to sell the project to an experienced SA project developer who intends to submit a bid:

• Qualifying criteria and the RFP documentation to be released later this year

• Developer will form a bid consortium and will sole bid preparation and submission

• AFR will be paid USD $10M if bid is shortlisted, at which point project ownership will be transferred to the developer

• AFR paid a further USD $10M at financial close

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Mmamabula West : Project Overview

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• 2.47 billion tonnes in two main ~5m thick, 100-150m deep coal seams

• Seam geometry and coal quality provides multiple options for power generation and/or export of coal

• Prefeasibility study (March 2014) evaluated a 220Mt portion of A-Seam for a conventional underground mine and modular wash plant, capable of producing export quality coal and/or power station fuel

• AFR sole funding the permitting activities, currently discussing subsequent phases with potential development partners

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Mmamabula West : Development Pathway

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Key activities	• Amend EIA to include power • Surface Rights • Water rights	• Infill drilling for reserve • Mine and power study BFS • Mining Licence application • Generation Licence application • Project financing close	• Access road + water pipeline • Grid connection • Mine + civils EPC contracts • Power station EPC contracts	• Power station O&M • Power station OEM support • Power sales/marketing
Partnership opportunities	• AFR managed and sole funded	• Lead Developer (may be AFR) • Co-developer(s) • OEM contractor input • O&M contractor input	• EPC contractor • OEM contractor • O&M contractor • Infrastructure EPC • Equity providers	• O&M contractor • OEM contractor • Mining contractor
Investment size for a 300MW project	<$1M	$10-15M	$300M equity + $600M debt
Indicative Timeframe	6-9 months	12-18 months	27-36 months	~35 year operation

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Summary - Project Pipeline

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Sese JV

Mmamantswe

Mmamabula

FQM evaluating an integrated mine FQM earning-in, AFR loan carried to and power project production Binding terms for a Share Sale Potential $20M short term return, Agreement in place conditional upon SA IPP bid shortlisting Multiple power projects and longer AFR sole funding permitting. Partners term coal export potential being sought for development phases

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Corporate summary

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ASX Code AFR Shares on issue 620 million Market Cap (@ AUD $43M $0.07) Cash (31 May 2015) AUD $8.2M Debt Nil Major Shareholders The Sentient Group 22% First Quantum 11% Minerals Management 10% Top 20 62%

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Disclaimer

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This presentation has been prepared by and issued by African Energy Resources Limited (“African Energy”) to assist it in informing interested parties about the Company and its progress. It should not be considered as an offer or invitation to subscribe for or purchase any securities in the Company or as an inducement to make an offer or invitation with respect to those securities. No agreement to subscribe for securities in the Company will be entered into on the basis of this presentation.

You should not act or refrain from acting in reliance on this presentation material. This overview of African Energy does not purport to be all inclusive or to contain all information which its recipients may require in order to make an informed assessment of the Company’s prospects. You should conduct your own investigation and perform your own analysis in order to satisfy yourself as to the accuracy and completeness of the information, statements and opinions contained in this presentation and making any investment decision.

The Company has not verified the accuracy or completeness of the information, statements and opinions contained in this presentation. Accordingly, to the maximum extent permitted by law, the Company makes no representation and give no assurance, guarantee or warranty, express or implied, as to, and takes no responsibility and assume no liability for, the authenticity, validity, accuracy, suitability or completeness of, or any errors in or omission, from any information, statement or opinion contained in this presentation. The contents of this presentation are confidential.

This presentation includes certain “Forward- Looking Statements”. The words “forecast”, “estimate”, “like”, “anticipate”, “project”, “opinion”, “should”, “could”, “may”, “target” and other similar expressions are intended to identify forward looking statements. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding forecast cash flows and potential mineralisation, resources and reserves, exploration results, future expansion plans and development objectives of African Energy Resources Limited are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.

The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the ‘JORC Code’) sets out minimum standards, recommendations and guidelines for Public Reporting in Australasia of Exploration Results, Mineral Resources and Ore Reserves. The information contained in this announcement has been presented in accordance with the JORC Code and references to “Measured Resources”, “Inferred Resources” and “Indicated Resources” are to those terms as defined in the JORC Code.

Information in this report relating to Exploration results, Mineral Resources or Ore Reserves is based on information compiled by Dr Frazer Tabeart (an employee of African Energy Resources Limited) who is a member of The Australian Institute of Geoscientists. Dr Tabeart 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 under the 2012 Edition of the Australasian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves. Dr Tabeart consents to the inclusion of the data in the form and context in which it appears.

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