BREAKTHROUGH MINERALS LIMITED — Capital/Financing Update 2017

Jun 7, 2017

ASX Release

8 June 2017

INTRA ENERGY MOVES FORWARD IN TANZANIA

• Record Production in May at level of 600,000 tonnes per year

• Solid Sales and Commencement of Stockpiling for higher throughput

• Letter from Ministry of Energy and Minerals approving the development of 270MW Power Station

• Major Chinese Cement Producers commence discussions with IEC - announce mega Cement and Power Project in Tanzania

• Commences Second Phase expansion to 1,000,000 tonnes per year

Intra Energy Corporation Limited ("IEC" or "the Company") is pleased to announce that Tancoal Energy Limited (IEC 70% and National Development Corporation of Tanzania 30%) has produced a monthly record tonnage for May 2017 of 51,013 tonnes together with sales of 42,720 tonnes, compared with May 2016 production of 19,014 tonnes and sales of 19,548 tonnes.

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Sales were lower than expected which reflected the impact of heavy rains causing a slowdown in cement usage. This enabled the Company to build stockpiles at the coal supply area at Kitai with the installation of an additional weighbridge to increase the turnover of loaded trucks.

Tancoal Energy Limited received a formal letter from the Ministry of Energy and Minerals in May under the heading "Re: Development of the 270MW Coal to Power Project" which stated ".....The Ministry appreciates

your desire towards the development of coal to Power Projects in Tanzania, especially through your mining license No. ML-439/2011. In view of the above, your Company is advised to start the development of the said project by utilizing the allocated coal reserves as per the PSMP" (Power System Master Plan)”. The Company is in discussions with its power station partner, Sinohydro, to move forward as per the Ministry's request.

During the Month in review discussions have commenced with Chinese controlled Sinoma and Hengya Cement (T) Ltd who have announced the development of a USD$ 1 billion cement and power complex at Tanga which will export approximately 70% of its production. It is expected that this will generate a coal requirement of up to 1,200,000 tonnes per year from 2019. During the month, initial survey work was undertaken to determine best potential routes to the coast for barge delivery into Tanga as well as to be able to offer supply into a new coal-fired coastal power station to be built in Kenya.

Second Phase production and supply expansion commenced with the intention to raise production to over 1,000,000 tonnes annually to cater for rising demand generated by Tanzania's industrial development and regional exports. New contractor earth-moving equipment will be delivered along with a crushing plant which will double current capacity.

IEC Chairman, Graeme Robertson, commented "May represented a turning point in our operations and we are moving forward with a very solid Tancoal Team, good partners and new market potential. We are now addressing the pricing of our coal to increase to South African levels and generating long term contractual arrangements to support Tanzanian industrialisation."

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ENDS

Shareholder Enquiries

Jim Shedd Chief Executive Officer Intra Energy Corporation Limited www.intraenergycorp.com.au Registered Office: Level 40, 2 Park Street, Sydney NSW 2000 Postal Address: PO Box 1930, North Sydney NSW 2059

About Intra Energy

Intra Energy is an environmentally responsible, diversified mining and energy group, focused on Eastern Africa, and is listed on the Australian Stock Exchange (ASX:IEC). IEC is a developer and producer of thermal coal in Eastern Africa operating under the motto of “African coal for African growth” and is the only operating thermal coal miner in Eastern Africa. Its flagship coal project is the Tancoal mine in the Ngaka coalfield of Tanzania, operated by Tancoal Energy Limited, a joint venture with the National Development Corporation of Tanzania.

Intra Energy has made significant progress with its Eastern African regional expansion strategy into new mining and renewable energy projects and battery storage materials, and maintains cost effective and efficient operations to remain a low cost producer in this dynamically growing region where it occupies the prime supply position.