Confidential

1. A Pathway for Mozambique: From Reserves to Production to Prosperity Presentation by Sara Menker, Founder and CEO of Gro Ventures 27 February 2013 Confidential

2. Mozambique’s Natural Gas: The Facts • Offshore drilling began in 2009 and Anadarko announced a small discovery early 2010 • 2010 – 2011, 7 out of 9 wells that were drilled discovered significant amounts of gas • 2012: one-third of global oil and gas discovery volumes were in Mozambique • 61% of discovered volumes were in Sub-Saharan Africa.

3. 2012: The Year Mozambique Became a Natural Gas Superpower The Natural Resource Curse and Challenges for Mozambique • Reframing the dialogue around natural resources in sub Saharan Africa: Mozambique is not being challenged with a curse, but is being presented with an opportunity • Capturing this opportunity requires Mozambique to implement specific policies and initiatives Ten Largest Discoveries of 2012 Source: WoodMackenzie

4. Mozambique’s Natural Gas: The Facts Area 1 Estimates • Reserves: 50 TCF • $28bn= Amount that will be spent over the next 30 years producing a portion area 1 gas that is sufficient for a 2-train LNG Project (11.1 TCF) • $18.5bn= Cost of a 2-train LNG Project • $17bn= The government’s profit share the 20 year production period • $16bn= Income tax revenue

5. Mozambique’s Natural Gas: The Facts Area 4 Estimates • Reserves: 42 TCF • $28bn = Amount that will be spent over the next 30 years producing a portion area 4 gas that is sufficient for a 2-train LNG Project (11.1 TCF) • $18.5bn= Cost of a 2- train LNG Project • $18.5bn= The governments profit share during the 20 year production period • $16bn= Income tax revenue

6. Natural Resources as Opportunities, Not Curses Data from the World Bank, Graph powered by Google

7. Capturing Opportunities • The only way for Mozambique to succeed in capturing natural resource opportunities is if the Mozambican government initiates sound policy reforms while strengthening its institutions

8. Institutional and Regulatory Reform • Regulatory framework must be consistent and finalized • Fiscal policy stabilized • Policy stabilization and regulation will lower risk premiums • Contracts must be legally enforceable and financially sound

9. Commercialization • Further commercializing ENH, INP and their subsidiaries • ENH has 10% ownership in Area 1 and 15% ownership in Area 4 • Carried through exploration phase • Further commercialization essential to access the funding required to participate in development

10. Service Providers to the Coal and Gas Industries • Cost competitiveness is essential to LNG. East Africa’s infrastructure is consistently lacking and the local service sector is non-existent • Important to increase the number of national and international service providers • Nigeria: > 400 oilfield service companies. It is the only sub Saharan country with a substantial home-grown industry

11. Emphasis on Local Content • Inclusion of provisions requiring operators to be socially responsible, use local content and employ Mozambicans • The kkey is to act immediately with regards to education. The opportunity costs of waiting are high • Short-term costs: longer project lead times, higher costs and lower project values • Long-term benefits: strengthened infrastructure and heightened competitiveness

12. Emphasis on Local Content Qualitative Summary of Local Content Approaches in sub Saharan Africa Source: Wood Mackenzie

13. Downstream Opportunities • Maximizing resource value: • Multi-use infrastructure important: especially railroads, which should be operated independently and not by resource extractors • Gas monetization options: Liquefied Natural Gas (LNG), Gas to Liquids, Pipelines, Power Plants, Fertilizer Plants, Chemicals, etc.

14. Diversify Funders • Large infrastructural projects need to be funded by diverse actors, beyond traditional developmental financial institutions (DFIs) • DFIs alone cannot meet the funding requirements of ENH, let alone all infrastructure projects.

15. Revenue Management • Ensuring new revenue is managed efficiently and transparently, and invested in a responsible way with a focus on: • Education • Agriculture • Infrastructure • Banking and financial services • Telecommunications • Creation of a sovereign wealth fund

16. Mozambique’s Natural Gas: The Facts Area 1 and Area 4 • The calculated costs and revenues were assuming only two 2-train projects. Area 1 alone has sufficient gas for 4 as does Area 4 • The reserve figures are still growing for both fields Area 1 Estimates • Reserves: 50 TCF • $28bn= Amount that will be spent over the next 30 years producing a portion area 1 gas that is sufficient for a 2-train LNG Project (11.1 TCF) • $18.5bn= The cost of a 2-train LNG Project • $17bn= The government’s profit share the 20 year production period • $16bn= Income tax revenue Area 4 Estimates • Reserves: 42 TCF • $28bn = Amount that will be spent over the next 30 years producing a portion area 4 gas that is sufficient for a 2-train LNG Project (11.1 TCF) • $18.5bn= The cost of a 2- train LNG Project • $18.5bn= The government’s profit share during the 20 year production period • $16bn= Income tax revenue

17. Summary • Natural gas in Mozambique becomes an opportunity, not a curse, through: • Institutional and Regulatory Reform • Commercialization • Emphasizing Local Content • Increasing number and capabilities of service providers • Capturing Downstream Opportunities • Diversified funders • Effective Revenue Management