BOTSWANA RESOURCE SECTOR CONFERENCE Morupule Colliery The Story Is Not Over June 2010

3. Morupule Colliery owns one of the best coal leases and only operating coal mine in Botswana. This makes it central to managing the Botswana power crisisMorupule Colliery owns one of the best coal leases and only operating coal mine in Botswana. This makes it central to managing the Botswana power crisis

13. The MCL Expansion Project in Brief Expansion of Room & Pillar Underground Mine (~1mt/yr to ~3.mt/yr) Mining Fleet from 1 Continuous Miner (CM) to 4 CMs New Surface Plant (crushing, screening, stockpiling & coal handling) Upgraded Power Supply, Water Supply & Ventilation System Surface infrastructure - Workshops, Construction Offices etc EPCM contractor Fluor appointed Imminent mobilisation to site Purchasing long lead items Project on schedule

14. The MCL Expansion Project in Brief Expansion driven by the need to Supply first coal to Morupule B Phase 1 by June 2011 Coal Sales Agreement signed with BPC, for the delivery of approximately 50 million tonnes of coal to both Morupule A and Morupule B Phase 1 Term of contract over 20 years Proven & Probable Reserves are 70 million tonnes (based on 4.2m mining height)

25. Infrastructure The plan shows the infrastructure that exists, the services that will be required to develop the mine and which has been costed. This includes Connection to water supply ( 1) connection to the Serowe /Palapye pipeline, 2) boreholes and connection to the Sotherly Serowe wellfield) Road connection from the mine(s) and CPP to the main Serowe/Palapye road Overland ROM Conveyor to CPP and distribution conveyors to export and BPC Connection via a �Bear� line to the main substation near Morupule Colliery Waste dump construction for CPP waste disposal New rail load out facilities. Infrastructure The plan shows the infrastructure that exists, the services that will be required to develop the mine and which has been costed. This includes Connection to water supply ( 1) connection to the Serowe /Palapye pipeline, 2) boreholes and connection to the Sotherly Serowe wellfield) Road connection from the mine(s) and CPP to the main Serowe/Palapye road Overland ROM Conveyor to CPP and distribution conveyors to export and BPC Connection via a �Bear� line to the main substation near Morupule Colliery Waste dump construction for CPP waste disposal New rail load out facilities.

27. The estimated capital cost of US$ 540M (BWP 3.8Bn) In world relative terms the project is very cost competitive on a FOR cash operating cost basis, and depending on the export pricing should support the cost of railing to a coastal port 20yrs Royalities to GRB 600mill BWP Total opex costs approx 19billion to local & regional suppliers Direct employment salaries 2.2billion BWP Strip ratio bcm/product tonne to product coal less than 5The estimated capital cost of US$ 540M (BWP 3.8Bn) In world relative terms the project is very cost competitive on a FOR cash operating cost basis, and depending on the export pricing should support the cost of railing to a coastal port 20yrs Royalities to GRB 600mill BWP Total opex costs approx 19billion to local & regional suppliers Direct employment salaries 2.2billion BWP Strip ratio bcm/product tonne to product coal less than 5

28. Progress � End of Year 2 28

29. Progress � End of Year 6 29

30. Progress � End of Year 10 30