COAL Strategy

• Key project:- Rukwa Coalfields.
• 3 additional prospective coal projects.
• 2 projects prospective for uranium in central Tanzania.
• Exploration and development of coal for domestic and regional sale.
• Coal licences in Southern Tanzania form initial exploration focus.
• Situated within Mtwara Development Corridor- East African economic growth zone.
• Exploration commenced in late Q2 2010.
• Rukwa Coalfields project acquired in Q3 2010.
• Drill targets will be defined by Q4 2010.
• Plan for maiden Resource Estimate in 2011.

Coal In Tanzania



• Huge regional market supporting scalable mining operation.
• Low cost mining environment.
• Situated in Government backed economic development zone.
• Active coalfield development (Atomic Resources) 18km from Matiri licences.
• Government long term aim to create transborder trade and investment, linking Malawi, Mozambique, Tanzania and Zambia.
• Mchuchuma coal concession tender shortlist, includes BHP, Rio Tinto, Tata International plus Chinese companies.
• Memorandum of Understanding (MoU) has been signed between the National Development Corporation (NDC) of Tanzania and the Henan No.1 Thermal Power Construction Company (HPPC) of China relating to the construction of a 400Mw power station.
• Pre‐qualified applicants for the nearby Liganga iron ore concessions announced by NDC.

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URANIUM

Tanzania and Uranium

• Mining code fully supports exploration and production.
• Highly active uranium exploration region (Tanzania, Malawi, Uganda and Zambia).
• Feasibility Study (with 84 million pounds of U308) 120km from Edenville Matiri licence.
• Pre-feasibility study (Uranex NL) underway 60km from Edenville Ikungu licence.
• Close proximity to coastal export routes – good existing infrastructure.
• Political very stable.

Proven Low Carbon Energy Source (World Nuclear Association)

• 30 countries generate 15% of world’s electricity from 436 reactors.
• 50 reactors in construction, 137 on order or planned, 295 proposed.

New Reactors to be built in UK, China and India (World Nuclear Association)

• China: 11 reactors. 22 reactors under construction or planned to start by 2010.
• China: Aims to quadruple by 2020 its nuclear capacity.
• India has 6 reactors under construction and a further 10 planned.

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Uranium Supply And Demand