BOTSWANA - The Future of Regional Coal Production JUNE 2018 - PowerPoint PPT Presentation

BOTSWANA - The Future of Regional Coal Production JUNE 2018

Disclaimer This presentation has been prepared by and issued by Shumba Energy Ltd (“Shumba Energy”) to assist it in informing interested parties about the Company and its progress. It should not be considered as an offer or invitation to subscribe for or purchase any securities in the Company or as an inducement to make an offer or invitation with respect to those securities. No agreement to subscribe for securities in the Company will be entered into on the basis of this presentation. You should not act or refrain from acting in reliance on this presentation material. This overview of Shumba Energy does not purport to be all inclusive or to contain all information which its recipients may require in order to make an informed assessment of the Company’s prospects. You should conduct your own investigation and perform your own analysis in order to satisfy yourself as to the accuracy and completeness of the information, statements and opinions contained in this presentation and making any investment decision. The Company has not verified the accuracy or completeness of the information, statements and opinions contained in this presentation. Accordingly, to the maximum extent permitted by law, the Company makes no representation and give no assurance, guarantee or warranty, express or implied, as to, and takes no responsibility and assume no liability for, the authenticity, validity, accuracy, suitability or completeness of, or any errors in or omission, from any information, statement or opinion contained in this presentation. The contents of this presentation are confidential. This presentation includes certain “Forward- Looking Statements”. The words “forecast”, “estimate”, “like”, “anticipate”, “project”, “opinion”, “should”, “could”, “may”, “target” and other similar expressions are intended to identify forward looking statements. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding forecast cash flows and potential mineralisation, resources and reserves, exploration results, future expansion plans and development objectives of Shumba Energy Ltd are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the ‘JORC Code’) sets out minimum standards, recommendations and guidelines for Public Reporting in Australasia of Exploration Results, Mineral Resources and Ore Reserves. The information contained in this announcement has been presented in accordance with the JORC Code and references to “Measured Resources”, “Inferred Resources” and “Indicated Resources” are to those terms as defined in the JORC Code. 2

Contents 1. Company Background 2. Projects 3. BOTSWANA - The Future of Regional Coal Production 4. Conclusion 3

Company Background 4

MINING Company Background Shumba Energy, a coal and energy company, was established in Botswana in 2011 to • provide the SADC region with low-cost coal and energy LOGISTICS • STRATEGY FOR 2018 Mining Coal Trading TRADING Logistics Investments with 3 assets in the development phase Shumba Energy controls most of the advanced • INVESTMENTS coal projects in Botswana, including over 4.5 billion tonnes of coal for thermal energy and exports.’ 5

MINING Company Background Listed on the Botswana Stock Exchange (BSE) with 264,604,249 shares in issues and a • market capitalisation of USD 32 million LOGISTICS Invested and committed over USD 20 million in Botswana projects to date • • Shumba Energy is reaching its development objectives and now controls a significant portion of advanced energy projects in Botswana, including over 4.5 billion tonnes of coal for thermal energy TRADING 25% Shareholder of London listed Kibo Mining PLC ( USD 36m Market Cap) • INVESTMENTS 6

MINING Board Members ALAN CLEGG - CHAIRMAN MASHALE PHUMAPHI – MANAGING DIRECTOR Professional Engineer and Project and § Founding director of Shumba Energy § Construction Manager § formerly part of the corporate finance team 30 years experience in mining and minerals of a London-based natural resources § LOGISTICS projects in over 150 countries corporate finance and issuing house § renowned expert in mining, technical § raised debt and equity finance for projects in assessment, reporting and project valuation the Americas, Europe and Africa in addition with extensive experience in stock exchange to conducting investment analysis and listings and capital raising research currently holds six directorship positions in the § Member of the United Kingdom Society of § mining and energy sectors and is a Fellow of Investment Professionals (UKSIP) and the the Institutes of Mining & Quarrying and London-based Association of Mining Analysts Fellow of the Institute of Directors of RSA/UK (AMA) TRADING SIPHO ZIGA – NON-EXEC DIRECTOR THAPELO MOKHATI – FINANCE DIRECTOR Partner at Armstrongs Attorneys • Management Accounting and Executive • 16 years experience in commercial • Program in Mining and Minerals (WITS) law and currently head the executive director of various junior mining • Commercial Department within the companies in various African countries over law firm last 10 years Advisor to various parties in the • 2004 – cofounded BSC Resources Ltd which is • most recent major capital raisings a junior exploration company with significant INVESTMENTS for mines in Botswana and acted as assets in nickel, copper and coal across South lead advisor for Shumba's listing on Africa the Botswana Stock Exchange 7

MINING Board Members KAPILDEO JOORY – NON-EXEC DIRECTOR BOIKOPO PAYA– NON-EXEC DIRECTOR Over 20 years experience in international tax • B.Sc. and an M.Phil. in Geology with • planning and business structuring extensive research experience Cofounder and executive director of • Currently the director of research at the • International Financial Services Limited which is LOGISTICS Botswana International University of a leading management company specialising in Science and Technology (BIUST) international tax, business and corporate Formerly the permanent secretary in the • advisory services Botswana Ministry of Minerals, Energy • Fellow of the Institute of Chartered and Water Resources for a period of two Accountants in England and Wales and an years as well as deputy permanent associate member of the Society of Trust and secretary in the same post since 2008 Estate Practitioners Prior experience includes holding several • • Serves as a director of numerous offshore funds directorships in the resource sector and companies TRADING GRANT RAMNAUTH – NON-EXEC DIRECTOR B.Sc. (Hons) from London University and a • Joint M.B.A from Hartford University (USA and France) • holds an Investment Advisor license in the offshore financial sector in Mauritius currently a Senior Partner of St. James's • Place Wealth Management formerly with HSBC Bank (Jersey) in • INVESTMENTS business development for international high-net-worth advisory and distribution Fellow of the Mauritius Institute of • Directors 8

Projects 9

MINING Key Projects Shumba Energy has three advanced-stage projects totalling in excess of 4 billion tonnes of coal and one earlier-stage alternative energy asset spread across central Botswana: Mabesekwa Independent Power Plant : Being developed for power generation and coal • LOGISTICS to liquids in partnership with Kibo Mining PLC. The entire resource can be mined using open cast methods. Sechaba Mine : Attractive with substantial resources of which some are open cast • mineable. A mining license application is being made for this project. TRADING Morupule South Mine: Largest of Shumba’s coal resources with over 2.45 Billion • Tonnes. Fast tracking into production for early revenues. Possibility for several open pit mines. Letlhakeng Under Ground Coal Gasification Project : Early stage. Looking to develop the • INVESTMENTS project in conjunction with a strategic partner. 10

MINING Project Stages Overview Three assets in the development phase, one in exploration • Thermal Coal for Export Open cast and Underground mines • Sechaba • ESIA completed and submitted Letlhakeng Mine LOGISTICS Mine feasibility studies completed • • Underground coal UCG Project Water supply from wellfield and • gasification 1.1 Billion Tonnes surface sources • Exploration drilling 300 Million Tonnes ESIA Approved • underway • Mining License application to be Gas for power generation • submitted soon GEOSCIENCE EXPLORATION DEVELOPMENT PRODUCTION DISCOVERY TRADING Morupule South Mabesekwa • Coal for power generation Mine Mine • Open cast mine ESIA approved • 2.45 Billion Tonnes 1 Billion Tonnes • Mine feasibility studies completed INVESTMENTS Water supply from nearby dam • Coal for both export and power generation • • Surface rights attained • Open cast mines Mining license application • ESIA underway • submitted Mine feasibility studies underway • • Railway siding 5km away Surface water supply secured • 11