Strategy

Ncondezi Coal Company’s strategy is to become a significant, new, mid-tier coal producer in Mozambique, with initial production currently targeted for the second half of 2014. The Company’s work program focuses on the completion of a fast- track bankable feasibility study at the Ncondezi Project, which is scheduled to begin in the second half of 2010 and be completed in the second half of 2012.

By completing the work program, the Directors believe that the opportunity to confirm the economic and technical viability of the Ncondezi Project, assess the coking coal potential, undertake resource expansion and upgrade as well as explore its other coal licences, will result in value creation for shareholders.

The scoping study completed by SRK in April 2010 indicates that the Ncondezi Project has the potential for a significant thermal coal project able to produce up to 10Mtpa of thermal coal for export. Whilst further work is required to better quantify potential for coking coal on its licences, it is possible that the Ncondezi Coal Company could also become a coking coal producer.

In addition to focusing on development of its Ncondezi Project, the Company may utilise its presence in and knowledge of Mozambique as a platform to seek further growth opportunities via joint ventures and/or acquisition of other coal projects which could add value to the Company.