BREAKTHROUGH MINERALS LIMITED — AGM Information 2013

Nov 24, 2013

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“African coal to power African growth”

2013 Annual General Meeting

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www.intraenergycorp.com.au

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Agenda

1. Company Overview

2. Market Overview

3. Mining Operations

4. Energy Projects

5. Community

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www.intraenergycorp.com.au

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Company Overview — Profile

• Intra Energy Corporation (IEC) is an Australian Stock Exchange (ASX:IEC) listed emerging Eastern and Central African integrated mine-power operator with strategically positioned mining operations and coal fired power plant developments in Tanzania and Malawi

• Two mining operations, Tancoal in Tanzania and Malcoal in Malawi, and one mine in development, Tanzacoal in Tanzania, employing 180 Tanzanians and Malawians

Mining

Energy

• Engaged in coal mining and exploration in Tanzania and Malawi

• Tancoal project in the Ngaka basin, Tanzania

• –JORC resources of 423mt

• –360ktpa capacity

• –70% JV with National Development Corporation

• Tanzacoal – 100mt JORC resource

• Sponsor of proposed coal fired power plant developments –200 MW power plant in Tanzania

• –120 MW power plant in Malawi

• Vertical integration with current mining operations

• Projects to provide base load power to the national grids of Tanzania and Malawi as well as potentially to private offtakers

• Strong Tanzanian and Malawian Government support

• Recently acquired Malcoal mine

• –JORC resources of 23mt at Kopakopa, exploration on-going

• –90% JV with Malawi private company

• 2 mining projects operational with other tenements under development

• –Tancoal targeting 360ktpa production by 2H FY14

• –Malcoal targeting 120ktpa production by 2H FY14

• Focused on increasing regional sales to Tanzania, Uganda, Kenya , Malawi, Rwanda, Burundi and Zambia

• PPA term sheet negotiations advanced with TANESCO

• MOU signed with Malawi Government and advanced PPA term sheet negotiations

• Established multi-ministerial taskforces in Tanzania and Malawi to support and fast track project development

• AAA Drilling is a drilling services provider to coal, minerals, coal-bed methane, shale gas and geothermal power companies in Eastern and Central Africa

• Owns and operates 3 drilling rigs as well as downhole geophysical logging equipment including a recently acquired Hanjin D&B45D rig with 2,400m in NQ diameter capacity

• Supports Intra Energy mining developments as well as external clients

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Company Overview — History

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Feb 2011
Commenced mining development
planning, purchasing mine equipment
and upgrading infrastructure US$13m
May 2011
Tancoal Mine first Sep 2011
overburden First coal sales
removal from Tancoal
Mine
August
2011
Tancoal
mining
license
granted
2011
May 2011
Change of name to
Intra Energy
Resources (IEC)
Sep 2011
Feb 2011
Tanzacoal joint
IEC increased its stake
venture formed
in Tancoal to 70%
(70% IEC) with
(acquired minority 100Mt JORC
interest)
Jan 2011
New Management team appointed – Jonathan
Warrand and David Mason join the Board,
Graeme Robertson becomes Exec Chairman
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Apr 2013

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Mar 2012
Signed MOU with Tanesco for
150MW (120MW net) power
station development (later project
expanded to 200 MW net)
Oct 2012
Tancoal JORC
resource upgrade
from 251mt to
423mt (523mt incl.
Songwe-Kiwira)
2012
Oct 2012
Secured debt
facility for Tancoal
and AAA drilling
with National Bank
of Commerce
Tanzania (US$3.9m)
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Announced $4.5m Rights Issue to fund mine expansion and further power station development studies

Nov 2010

Funding of IEC by Aspac Mining

Nov 2013

– Maiden JORC resource estimate for Kapakopa Project (23.9mt) –Tancoal enters into a coal supply agreement with major Tanzanian cement producer

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2012010
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2013

Mar 2013

– Granted Ngana and North Rukuru tenements in Malawi – Signed MOU with Malawi Government for 120MW (net) power station development

Jan 2013

Acquired Nkhachira mining license and exploration licenses in Malawi; commences Malcoal mine development

	Mkt Cap	Nov 2010	Jan 2011	Jan 2012	Jan 2013	Current
	IEC	$37m	$62m	$79m	$51m	$29m

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Agenda

1. Company Overview

2. Market Overview

3. Mining Operations

4. Energy Projects

5. Community

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Eastern & Central Africa Industrial

Markets

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• Eastern Africa offers exceptional growth prospects:

• Current population of approximately 300 million

• Growing, energy-hungry region with GDP forecast to double by 2020 and quadruple by 2034

• IEC is the first and dominant thermal coal miner and supplier in Eastern Africa with operating mines in Tanzania and Malawi currently supplying industrial customers

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Logistics and Supply Capability

• IEC currently supplies coal to over 20 customers in Tanzania, Malawi, Kenya, Uganda and Zambia

• IEC continues to streamline the logistics process by:

• Establishing strategic stockpiles in areas of key demand

• Construction of a bypass haulage road between mine and Kitai stockpile

• Stockpile expansion at Kitai

• Preferred hauliers are being utilised to partner IEC in ensuring distributional reach into key markets across the East African region

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Agenda

1. Company Overview

2. Market Overview

3. Mining Operations

4. Energy Projects

5. Community

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Producing Mines and Mining Operations

Tancoal emerging as pre-eminent supplier of coal to Industrial Customers in the Eastern Africa Region, displacing expensive imported coal in current operation.

Tancoal PPP (IEC 70%, NDC 30%)

• Tancoal flagship coal project in the Ngaka basin, Tanzania

JORC Resources at Tancoal Mine (Mt)	JORC Resources at Tancoal Mine (Mt)	JORC Resources at Tancoal Mine (Mt)	JORC Resources at Tancoal Mine (Mt)
Tancoal	Mbalawala	Mbuyura Mkapa	Total
Measured	39	16	55
Indicated	63	49	112
Inferred	114	142	256
Total	216	207	423

Malcoal JV (IEC 90%)

• Malcoal mine acquired in March 2013

• Currently in production and will be fully operational in Q2FY14

• Drilling completed, JORC 26mt

• Supplying diversified Malawi industrial domestic market, customers in brewing, lime, cement, tobacco and tea, other nearby markets targeted

• Pamodzi 120MW Power Station project progressing rapidly with siting of plant at Chipoka near capital city of Lilongwe

• Power Station fuelled by Malcoal and initially supplemented by Tancoal

• Calorific value of 6,500 kcal/kg, 18.0% ash, inherent moisture 5.0%, volatile matter 25.0%, total sulphur 0.5%

• Logistics and supply chain improvements on-going

• Ngaka mine mouth power station will be 4km from Tancoal

• Tancoal increasing to production capacity of 360,000tpa targeted Q2FY14

• Production costs to distribution point currently US$40pt, expected to reduce by 25% on greater sales volumes in Q3FY14

• • Strip ratio currently 3 to 1

• Malcoal targeting 120,000tpa production capacity by 2H FY14

• Production costs ex-gate currently US$43pt, expected to reduce by 30% on greater sales volumes in Q3FY14

• Mining equipment recently acquired on attractive finance terms enables efficient mining operations

Focused on increasing regional sales to Tanzania, Uganda, Kenya , Malawi, Rwanda, Burundi and Zambia

Logistics and supply chain improvements including stockpile expansion and barging and rail solutions

• Progress opportunities for regional expansion into nearby markets in line with Eastern Africa strategy

• Forecast FY14 annual sales of 300 – 360kt into Eastern Africa. Expected to continue to grow to 500+ktpa in FY15. Target countries where price inelasticity is evident – Tanzania, Malawi, Zambia, Kenya, Rwanda and Uganda

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Agenda

1. Company Overview

2. Market Overview

3. Mining Operations

4. Energy Projects

5. Community

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Project Ngaka

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Pre-Feasibility Phase

Bankable Feasibility Study

Permitting & Development

• •Detailed costings for the power plant and HV transmission line

• •Sign MOU •Sign PPA term sheet

• •Delivery of concept •Sign TLA and pre-feasibility •Sign FSA term sheet •More detailed engineering and design paper to TANESCO •Source additional equity •Full social and environmental impact

• •Grid Feasibility investors assessment study Studies •Basic Power Plant and •Technology / supplier selection and EPC

• •Conceptual plant transmission line design agreement with a turnkey contractor designs and fatal •Initial determination of an •Close remaining key agreements for the flaw analysis appropriate grid energy project: fuel supply, water supply, waste

• •TLA terms price discharge, high voltage connection, O&M negotiation agreement etc. •Initial environmental

• •PPA term sheet impact assessment study •Secure all environmental permits negotiations (Project brief) •Secure wayleaves/easements for the high

• •Implementation •Determine all required voltage line, water connection and coal Agreement permits, licences and transport route discussions with other consents •Update bankable feasibility study and Ministry of Energy •Negotiate and initial PPA define final PPA parameters including tariff and Minerals elements •Sign Implementation

• •Seek Govt. Agreement with Tanzania •Close financing arrangements Guarantee to back Ministry of Energy and

• PPA obligations Minerals

Completed In progress

Detailed Design & Construction

• •Design, procure and construct power plant and HV line

• •Commercial Operation

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Project Pamodzi

Permitting & Development Bankable Feasibility Study Pre-Feasibility Phase •Sign MOU •Grid study to confirm power plant size •Engage with multi- lateral agencies •Negotiate and initial/execute: –PPA with ESCOM –Implementation Agreement with Government –Source Performance Guarantee •Drilling and Coal Resource Definition •Investigate carbon sequestration options •Sign PPA term sheet •Sign FSA term sheet •Completion of initial JORC resource •Power plant basic design •Initial costing estimates •Initial estimate of an appropriate grid energy price •Initial environmental impact assessment study (Project Brief) •Determine scope for all required permits, licenses and other consents •Initial coal resource assessment and quality analysis •Source additional equity investors •Detailed costing for the power plant, plus connection •Detailed engineering and design •Detailed environmental impact assessment study •Application for all required permits, licenses and consents •Technology / supplier selection and EPC agreements with a turnkey contractor •Close remaining key agreements for the project including: fuel supply, water supply, waste discharge, high voltage connections, O&M agreement etc •Secure all environmental permits •Secure wayleaves/easements for grid connection •Confirm bankable feasibility study and define final PPA parameters •Close financing arrangements	Pre-Feasibility Phase	Bankable Feasibility Study	Permitting & Development		Detailed Design & Construction

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Completed In progress

Detailed Design & Construction

• •Design, procure and construct power plant and grid connection

• •Commercial Operation

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Agenda

1. Company Overview

2. Market Overview

3. Mining Operations

4. Energy Projects

5. Community

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Community and Environment

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Tanzania
• The Mbalawala Women’s Group established by IEC in late 2011 after consultation
with local women and in partnership with community leaders
• The Women’s Group has established activities for the local women to learn new
skills, including mine catering, vegetable farming and pottery making
• Equipment and start up funds are provided by IEC, however each activity is set up as
a small business owned and managed by the women, promoting economic
empowerment and social equality
• IEC has also upgraded community infrastructure in the area (schools, bridges, roads,
a well for clean drinking water), provides scholarships to promising students and is
working with the local health clinic on a malaria eradication programme.
Malawi
• IEC intends to set up a Women’s Group in the area of the Malcoal Mine similar to the
Mbalawala Group and is developing a Women in Mining programme to provide
training and scholarships for women to take up careers in mining
• IEC is constructing a police post for Karonga region and is ensuring that the local
communities have access to clean water.
• Tancoal accumulates topsoil and other overburden in discrete stockpiles for
rehabilitation.
• Where possible, rehabilitation is carried out on an ongoing basis when all coal has
Aerial shot of Tancoal mine and
been extracted.
rehabilitation area
• A further environmental plan is being developed in conjunction with the relevant
authorities which will address life of mine rehabilitation.
• Aerial shot of Tancoal mine and rehabilitation area shown.
Community
Mine Rehabilitation
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Disclaimer

All statements in this presentation, other than statements of historical facts, that address future production, reserve or resource potential, exploration drilling, exploitation activities and events or developments that Intra Energy Corporation Limited (the “ Company ”) expects to occur, are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements.

Factors that could cause actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, and continued availability of capital and financing and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. The Company does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.

To the extent permitted by law, Intra Energy Corporation Limited accepts no responsibility or liability for any losses or damages of any kind arising out of the use of any information contained in this presentation.

Competent Person’s Statement

The information in this report relates to Exploration Results, Mineral Resources or Ore Reserves based on the Mbalawala Mine Bankable Feasibility Study with related infrastructure feasibility options as at 31 August 2010, the Mbalawala Coal Mine Bankable Feasibility Study as at 13 August 2010 and the Resource Model Assessment and Review, Ngaka Project Area as at 20 July 2010, the Memorandum Summary provided by JB Mining Services Pty Ltd dated 18 October 2012 and have been reviewed by Mr David Mason MBA, BSc (Hons). Mr Mason is a Fellow of the Australasian Institute of Mining and Metallurgy, has Chartered Professional (Management) status, and as such qualifies as a Competent Person as defined by the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The JORC Code) 2004 Edition”. Mr Mason is an Executive Director of Intra Energy Corporation Limited and has sufficient experience to qualify as a Competent Person as defined in the 2004 edition of the “Australian Code for Reporting of Mineral Resources and Ore reserves”. Mr Mason consents to the inclusion of the matters based on his information in the form and context in which it appears.

The Resource Statement in relation to Songwe-Kiwira and the Memorandum Summary relating to the Ngaka coal leases were compiled by Phillip Sides, a qualified senior geologist employed by JB Mining Services Pty Ltd (JBMS), who has over 25 years’ experience in the exploration and evaluation of coal resources. Mr Sides is a Member of the Australian Institute of Geoscientists and as such qualifies as a Competent Person as defined by the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The JORC Code) 2004 Edition”. The report was been prepared using the guidelines for the estimation of black coal resources and reserves as contained in The JORC Code.

Neither Mr Sides nor JB Mining Services Pty Ltd has any material interest or entitlement, direct or indirect, in the securities of Intra Energy Corporation Limited. JBMS has been providing geological services to Intra Energy Corporation on the Kabulo Project since early 2011.

Mr David Mason, Executive Director – Exploration and Business Development of Intra Energy Corporation Limited, originally requested this resource evaluation. All fees for the preparation of this report are charged on a time and materials basis.

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