9 May 2017

PRESENTATION TO 121 MINING INVESTMENT LONDON 2017

African Energy Resources advises that the following presentation will be presented to institutional investors and analysts in London this week, including at 121 Mining Investment London 2017 on 10‐11 May 2017.

For any further information, please contact the Company directly on +61 8 6465 5500.

Investor update: progressing the Sese Power Project in Botswana

May 2017

Company overview

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

  • African Energy Resources Ltd (AFR) has built a portfolio comprising over 8.5 billion tonnes of thermal coal* in Botswana, the safest and most stable investment destination in Africa

  • Three projects are being developed as fully integrated power projects to supply the chronically power poor SADC region

    • Sese JV: managed by First Quantum Minerals Ltd (FQML), targeting power sales to Zambia
    • Mmamabula West: 600MW power project being developed for submission into South Africa's 3,750MW coal-fired base-load cross border IPP procurement program
    • Mmamantswe: 600MW project being developed by South African developer for the 3,750MW coal-fired base-load cross border IPP procurement program
* Refer to Appendix 1 Resource Statement

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Regional demand for new power generation is strong

  • First Quantum currently drawing ~320MW for Sentinel copper mine and Kansanshi copper mine and smelter

  • First Quantum have announced plans to expand Kansanshi mine and smelter in the next 2-3 years, which will increase their power requirements to

    ~450MW

  • Zambian hydro-electric projects (~80% of installed base load capacity) operate at

  • Few alternatives in Zambia for base load power due to limited local resources of coal and gas

  • Zambia is importing power from South Africa and Mozambique to meet current demand and is exposed to significant market risk on price and security of supply - this is passed on to customers

  • Sese JV can deliver secure, reliable and affordable power to First Quantum in Zambia, reducing exposure to these risks

  • Well developed regional interconnected transmission grid allows wheeling of power throughout the region

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African Energy Resources Limited published this content on 09 May 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 09 May 2017 02:17:01 UTC.

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