From Exploration to Extraction:

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From Exploration to Extraction
The Chirundu Uranium Project, Zambia
July 2008 presentation to the Botswana Resource
Conference, Gaborone
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Disclaimer

• The information in this presentation is published
  to inform you about African Energy Resources
  Limited (AFR) and activities of it and its
  subsidiaries.
• All reasonable effort has been made to provide
  accurate information but we do not warrant or
  represent its accuracy and we reserve the right
  to make changes to it at any time without notice.
• To the extent permitted by law, AFR accepts no
  responsibility or liability for any losses or
  damages of any kind arising out of the use of any
  information contained in this presentation.
• 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 Inferred Resources and
  Indicated Resources are to those terms as
  defined in the JORC Code.
• Information in this report relating to
  Exploration results, Mineral Resources or Ore
  Reserves is based on information compiled by Dr
  Frazer Tabeart (an employee of African Energy
  Resources Limited) who is a member of The
  Australian Institute of Geoscientists. Dr
  Tabeart has sufficient experience which is
  relevant to the style of mineralisation and type
  of deposit under consideration and to the
  activity which he is undertaking to qualify as a
  Competent Person under the 2004 Edition of the
  Australasian Code for reporting of Exploration
  Results, Mineral Resources and Ore Reserves. Dr
  Tabeart consents to the inclusion of the data in
  the form and context in which it appears.

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African Energy Resources summary

• AFR has defined 9.5 Mlb U3O8 in resources at the
  Njame and Gwabe deposits (70 AFR) in Southern
  Zambia.
• Pre-Feasibility study completed and Bankable
  Feasibility study approved and underway
• Target for first uranium deliveries in early 2010
• Excellent pipeline of exploration opportunities
  including three within economic trucking distance
  of Njame
• Management team with broad experience of
  developing projects in Africa

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African Energys project locations

• Extensive tenement holdings with projects in
  Zambia, Botswana, Malawi and Zimbabwe
• The most advanced projects are in Zambia and
  Botswana
• Tenements are considered prospective for uranium,
  coal and coalbed methane
• Successful exploration team has discovered almost
  10 million lb U3O8 since 2006, with numerous
  uranium anomalies in Zambia, Botswana and Malawi
  currently under evaluation

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Capital Structure and Management

• BOARD
• Alasdair Cooke, Executive Chairman
• Frazer Tabeart, Managing Director
• Bill Fry, Executive Director
• Valentine Chitalu, Non-executive Director
• Ian Duncan, Non-executive Director
• Michael Curnow, Non-executive Director

CAPITAL STRUCTURE (ASX) Ordinary
Shares 173,219,350 Options 14,225,000 Cash in
hand A 7.1 million Market Cap A 30
million MAJOR SHAREHOLDERS Energy Ventures
Ltd 60 Stanlib 10 National
Nominees Geologic Resource Fund Ltd African Lion
2 Ltd RAB Special Situations Ltd
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African Energys southern Zambian projects

• 9.5 Mlb U3O8 in resources at the Njame and Gwabe
  deposits in the Chirundu JV
• AFR has 70 equity interest in the Chirundu JV
  project, remaining 30 held by Albidon Limited
• AFR earning initial 30 interest in Kariba Valley
  JV (also Albidon) and can increase to 70 by
  completing Pre Feasibility Study and delivering
  an Indicated Resource
• Discoveries at Chisebuka and Namakande in the
  Kariba Valley JV, additional drilling to be
  undertaken

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The Chirundu JV Uranium Project

• Sandstone-type uranium mineralisation (Karoo)
• Near-surface, sub-horizontal lenses of
  mineralisation
• Amenable to open-pit mining and acid heap
  leaching
• Two deposits discovered to date with considerable
  potential for near-mine and brown-fields upside

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Mineral resources

• Njame Deposit
• Indicated 3.9 Million Tonnes at 388 ppm U3O8
• Inferred 5.2 Million Tonnes at 275 ppm U3O8
• Containing 2,965 Tonnes of U3O8 (6.5 Mlb U3O8)
• Gwabe Deposit
• Indicated 0.9 Million Tonnes at 196 ppm U3O8
• Inferred 4.0 Million Tonnes at 304 ppm U3O8
• Containing 1,380 Tonnes of U3O8 (3.0 Mlb U3O8)
• 100 ppm U3O8 cut-off in all cases
• Infill programme to Measured and Indicated
  underway

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Project development timetable
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Processing options and uranium recovery

• Ore minerals mainly uraninite (U-oxide) and
  orthobrannerite (hydrated U-Ti oxide)
• Amenable to sulphuric acid leaching with
  subsequent recovery of uranium onto ion-exchange
  resins
• Bottle-roll tests indicate acid leaching is more
  effective than alkaline leach
• Column-leach tests indicate excellent leach
  characteristics with rapid equilibrium and
  recovery of 85-93 at Njame, 73 at Gwabe

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Mining options

• Surface miners are being considered for mining
  ore horizons and may also be used for waste
• Mining costs comparable to drill and blast,
  potentially lower due to soft nature of the ore
  and host-rock
• Surface miners enable better dust control
  measures and more precise grade control than
  alternatives
• May remove all crushing requirements if broken
  rock can be directly leached without further
  comminution

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Conceptual Project Design

• Sequential mining of open pits, Njame (Yrs1-4),
  then Gwabe (Yrs 4-6)
• Central Processing Facility at Njame, operating
  cost range USD 30-40/lb U3O8
• Remote Ion-Exchange operation (RIX) at Gwabe with
  loaded resins trucked to Njame for processing
• Initial CAPEX USD 71M with additional USD 21M
  for Gwabe deferred to Yr 3

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Indicative mining schedule
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Permitting schedule
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Corporate Social ResponsibilityRelocation
Action Plan (RAP)

• Need to relocate 160 households at Njame which
  sit directly above the uranium mineralisation
• Valuation report, site survey, health survey
  completed with environmental monitoring programme
  in place
• Modern village layout for new village being drawn
  by architect, based on AFR conceptual design
  modified with community feedback
• Housing policy being developed based on
  demographics, valuation report and extensive
  community consultation

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Corporate Social ResponsibilitySustainability
Projects

• African Energy has recognised the need for
  sustainable community projects beyond the mine
  life
• BRICK MAKING PROJECT where local artisans are
  being trained and will ultimately run a block
  making business to supply local demand (including
  RAP and mine construction requirements)
• JATROPHA PLANTATIONS where African Energy is
  providing in-kind support to establish a jatropha
  growing business with out-grower sales contracts
  to a local biodiesel company

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Summary

• AFR has defined 9.5 Mlb U3O8 in resources at the
  Njame and Gwabe deposits (70 AFR)
• Bankable Feasibility study approved and underway
• Strong Government and Community support
• Target for first uranium deliveries in early 2010
• Excellent pipeline of exploration opportunities
  including three within economic trucking distance
  of Njame

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Thank you for your attention
www.africanenergyresources.com
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