BREAKTHROUGH MINERALS LIMITED — Capital/Financing Update 2019

Apr 7, 2019

ASX Release

8 April 2019

IEC MARCH 2019 UPDATE

• Sales 69,810 tonnes

• Production 59,643 tonnes

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%) recorded 69,810 tonnes of coal sold for March 2019 compared to 45,057 tonnes sold in March 2018.

Production in March was impacted again by rain and some machinery breakdowns. Additional equipment reached the mine toward the end of March and will start working during April. Tancoal is still waiting on leases required to supply additional coal for increased production to be released by the Ministry of Minerals. 59,643 tonnes were produced in March 2019 compared to 57,667 tonnes in March 2018.

==> picture [270 x 337] intentionally omitted <==

MD/CEO Jim Shedd with the Australian High Commissioner to Tanzania, HE Ms Alison Chartres Dar es Salaam, Tanzania

The Attorney General of Tanzania has advised Tancoal’s joint venture partner, the National Development Corporation of Tanzania (“NDC”), that mineral royalties are levied at the point of delivery where Tancoal hands over the coal to the purchaser, which is at the Kitai sales point. This means that the royalty on transports costs to our customers plants should not be implemented.

The Caspian court case (refer ASX announcement on 11 September 2018) is still scheduled for 8 April 2019.

On 4 March 2019, Tancoal won the NBC court case and was awarded its counter claim against NBC bank for the return of US$230,000 that NBC had taken from its bank account without authority, NBC has lodged an appeal and Tancoal is waiting on a court date.

==> picture [469 x 265] intentionally omitted <==

Trees Project at our Communities

During March the annual tree planting project was completed by Tancoal. The Mbinga District Commissioner Cosmas Nsheye attended the launch that distributed and planted more than 10,000 trees around the mine site, stockpile and at prepared areas at villages near the mine. The seedlings are provided by Tancoal and tended by the Mbalawala Women’s Organisation during the year and then planted.

IEC Chairman, Graeme Robertson, commented “IEC continues to reduce debt with improved cash flows from operations. Production was lower than expected due mainly to heavy rain and delay in receiving production equipment which was delivered only at end of March. The Attorney General of Tanzania has advised that the road tax levy on transports costs should not be implemented as the point of delivery is where Tanoal hands over the coal to the purchaser, which is at the Kitai sales point. Tancoal is currently waiting for the release of mining leases held by the Ministry of Minerals to allow it to increase production to build stocks to support the industrial development effort in Tanzania. The major current issue for Tancoal is the matter of the contractor, Caspian, who was appointed under an unfair contract. They have not performed to their expected capacity. Contracts like this do not assist Tanzania's drive to industrialise”.

==> picture [417 x 295] intentionally omitted <==

ENDS

Shareholder Enquiries

Jim Shedd Managing Director 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.