•Direct Export to India/China. Strategy is being driven by increasing international demand for thermal coal
•Export to South Africa, ESKOM and Richards Bay is currently under PFS and is a short two to three year implementation
•Coal to Liquid and Coal to Gas strategy has no risk and is being subsidised
3. General View 2014
SPP + Capital Placement to Raise $2.2m*
Takatokwane Coal
Kigoma Copper
Other and New
Business
Admin and Compliance
Integrated Feasibility
Study
Drilling of Malagarassi N
Stockwork Structures
Assess New Projects or
JV’s
Capacity Building
Develop Market for Coal
Work towards Orebody
Definition
Partnerships
Costs paid by Coalswana
according to HOA
Moving to Wider Regional
Exploration
Low Cost Opportunities
Value Transactions
Lean and Mean
Payfreeze Ongoing
3
4. Coal Market Options
Takatokwane
Coal Deposit
Direct Export
to India / China
Export to South Africa
ESKOM, Richards Bay
Coal to Liquid,
Coal to Gas Power
and by-products
Direct Coal
Fired Power
4
5. Coal Development Strategy 1
Highlights
Best long term utilisation of assets
Locked in margins for long periods
Large scale economic activity
Coal
Deposit
Requirements
Direct Export
to India / China
Rail line to be built
Co-ordinated industry approach
Lobbying and collaboration
Value Proposition
High Volume, Long Term Producer
Margins Up to $40/t
5
6. Driving International Demand
Forecast Prices Thermal Coal
• India and other rapidly
emerging economies heavily
reliant on thermal coal
$170
• India, China and others
have little alternative but
coal fired power expansions
$130
Period of introduction
of higher cost
marginal coal
$150
Period of overhang
productive and
infrastructure
capacity
$110
• Southern Africa and India
facing thermal coal import
“cliff”
$90
• USA Infrastructure for export
surplus coal now reaching
capacity
$50
$70
$30
2007
2009 2011
2013
2015
2017 2019
FOB Newcastle @ 6,322 kcal/kg GAR
FOB Richards Bay @ 6,300 kcal/kg GAR
2021
2023 2025
2027 2029
FOB Indonesia EnviroCoal @ 5,000
kcal/kg GAR
FOB HA Newcastle @ 5,500 kcal/kg GAR
Source: Anglo-American Coal Presentation, Wood McKenzie Coal Service Forecasts
6
7. Coal Development Strategy 2
Highlights
Currently under PFS
Short implementation period (2-3 years)
Mineral Rights legitimised
De-risks Takatokwane Project
Coal
Deposit
Requirements
Export to South
Africa, ESKOM,
Richards Bay
Overcome road transport hurdle
Coal prices need to increase as proposed
to provide a stronger value proposition
Value Proposition
Low Volume, Short Term Producer
Margins Up to $10/t
7
8. Driving Local Demand
RSA Pending Coal Supply Cliff
180
• Eskom Coal Cliff
160
• Export capacity Richards
Bay Strategic National
Initiative
• Existing mines deeper and
more expensive
• Emergence of other
Southern African
Economies
120
M tonnes per annum
• SA Infrastructure late in
developing
140
100
80
60
40
20
Contracted Coal
Junior Coal
Non Contracted
2035
2034
2033
2032
2031
2030
2029
2028
2027
2026
2025
2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
2014
2013
0
Waterberg
Source: Eskom
8
9. Coal Development Strategy 3
Highlights
No capital risk for WKT
Coalswana subsidises studies
On site sales of Coal and Fuels
Appropriate Power Generation
Coal
Deposit
Requirements
Coal to Liquid,
Coal to Gas,
Power and byproducts
Reduce the technical risks
Dependent volumes
Logistics to be finalised
Value Proposition
Technology De-Risked
Moderate Volume, Long Term Producer
Margins Up to $30/t
9
10. Driving Emerging Economies
World Growth in CTG Capability
250,000
• Severe lack of power
infrastructure – remote and
localised power
opportunities
200,000
• Mining and industrialisation
held back by power access
• Export of by-product to
Southern Africa
MWth Synthesis Gas
• Botswana imports 100% of
liquid fuels
150,000
100,000
50,000
Operating (2013)
Construction (2015)
2016
2013
2010
2007
2004
2001
1998
1995
1992
1989
1986
1983
1980
1977
1974
1971
1968
1965
1962
1959
1956
1953
1950
0
Planned (2018)
Source: Gasification Technologies Council (2013)
10
11. Coal Development Strategy 4
Highlights
Politically sensitive Pricing
Margins are low
High Capital Risk
Coal
Deposit
Requirements
Direct Coal
Fired Power
Need High Tension Electrical Distribution
Need Regulatory Integration
Need Price Certainty
Value Proposition
High Capital
Moderate Volume, Long Term Producer
Margins Up to $10/t
11
12. Coal Fired Power Market
Southern Africa very immature in terms of Private
Power Producer concepts
Dominated by State Electrical Utilities that work
according to politically sensitive pricing issues
Margins will remain tight with little consideration for
traditional business models
No high tension reticulation available – capital
constraint
Not attractive proposition for WKT
12
13. Coal Development Strategy
Risks & Returns
High Risk
Coal to Liquid,
Coal to Gas Power
and by-products
Direct Coal
Fired Power
Short Term
Long Term
Export to Local / BTS
South Africa ESKOM
Richards Bay
Low Risk
Direct Export
to India / China
(Rail line)
13
14. Nett Return Potential
Strategic Projects Timeline
Direct Export
to India / China
(Rail line)
Coal to Liquid,
Coal to Gas Power
and by-products
Direct Coal
Fired Power
Export to South
Africa ESKOM
Richards Bay
0 Years
4 Years
7 Years
14
15. Kigoma Copper Project
Malagarassi North Quartz Vein Mineralised System
Interpreted at least three off-set quartz vein structures ranging between 4m and 7m thick each and open to strike
15
16. Kigoma Copper Project
Selected Results - Malagarassi North Quartz Veins
Structure
No.
Hole
No.
Depth
(downhole) m
Cu
%
Ag
g/t
Au
g/t
1
30
25-26
0.4
14
7.2
26-27
3.1
85
10.1
7-8
0.24
8
17.0
12-13
2.3
82
14.0
13-14
0.35
32
9.1
18-19
0.5
8
10.0
2 and 3
31
* Grades are by XRF and 1m bulk consolidation and wet -sieving of drill chips
16
17. Points of Difference
Low risk business
model
Create strategies that
are developable
Diversified by
location
Pipeline of
projects a different stages
Diversified by
commodity
Adopt a long term
vision
17
18. Disclaimer
Forward-Looking Statements
This presentation includes certain “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 and future expansion plans and development objectives of Walkabout Resources 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.
Competent Person Statement
The information in this report that relates to exploration results and Mineral Resources is based on information compiled by Mr.
Nathan Jombwe, who is a Member of the Australasian Institute of Mining and Metallurgy and a full time employee of Walkabout
Resources Ltd. Mr Jombwe has sufficient experience which is relevant to the style of mineralization and type of deposit under
consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the
"Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (The JORC Code). Mr Jombwe
consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
18