Bwanje Cement Project Presentation London – 20 th March, 2013

1. Bwanje Cement Bwanje Cement Project Presentation London – 20th March, 2013

2. Bwanje Cement • Bwanje Cement Company Limited (BCCL) has for sometime been working on a green field cement plant to be constructed at Malowa Hills, Malawi. • The planned plant will consist of one 500,000 MT annual capacity production line.

3. Bwanje Cement Company Ltd Bwanje Cement • Bwanje Cement Company Limited, a wholly Malawian owned company was incorporated on 19th March, 2010, with Company Registration No 10401 • BCCL Current Shareholders are: • Umoza Holdings Limited , • Kanjere Associates (Architects), • Zingano Associates (Architects), • Anderson Engineering(Mechanical Engineers), • Matundu Holdings(Investors) • Umoza Holdings has been incorporated as a special purpose vehicle (SPV)

4. Bwanje Cement Co. Ltd cont.. Bwanje Cement Mining Licence/rights was granted to Bwanje Cement Company Limited over the Malawi and Khungule Hills Limestone deposit by the Malawi Department of Mines in April, 2010, Licence number ML0186/10 Mining Licence is valid for an initial 15 year period and renewable, covering a 15 sq. km of concessioned land; Malawian Laws provide that land rights are secured together with mining rights provided that relocation and compensation is agreed between settlers and rights holders; Environmental approval have been granted by the Department of Environmental Affairs in Malawi;

5. Project Description cont.. Bwanje Cement

6. Project Description cont.. Bwanje Cement • Site Locality + Lease Area Malowa Hill Railway Line to Lilongwe and Blantyre Khungule Hill Tarred Road (M5) to Blantyre & Lilongwe ESCOM Sub-station

7. TECHNICAL OVERVIEW Bwanje Cement • MINING AND GEOLOGY • Initial studies carried out by Met-Chem, a Canadian consulting company commissioned by Malawi Government and funded by the World Bank covered surface mapping 2481 metres of drilling and 647 assay samples which proved 15million Mt at Malowa Hills. • The exploration programme was for chemical grade lime. • Kai Batla reviewed the data and produced models

8. TECHNICAL OVERVIEW cont.. Bwanje Cement

9. TECHNICAL OVERVIEW cont.. Bwanje Cement

10. Current Results Bwanje Cement

11. TECHNICAL OVERVIEW cont.. Bwanje Cement • BCCL and PPC carried out a joint drilling programme in September, 2011 on Khungule Hill as a potential source of limestone uncontaminated by granite and/or dolerite intrusives. • The drilling consisted of 25 inclined RC holes on sections 200m apart with 100m hole spacing. Hole depths varied from 30m to 73m. • Downhole samples were collected every meter and full analyses of the 1561 samples were undertaken at PPC Lab and counter checked by Set Point Lab; • The scope of work included the creation of a geological database, ore body modelling, block model creation and grade interpolation, pit design and reserve reporting and resource classification.

12. TECHNICAL OVERVIEW cont.. Bwanje Cement • Geomagnetic Survey • A hand-held geomagnetic survey was conducted by C. E. Kaphwiyo, consulting Geo-Physist and reported in November 2011. • A low magnetic signature indicates a potential for sub-outcropping limestone.

13. TECHNICAL OVERVIEW cont.. Bwanje Cement • Based on the recent Geomagnetic Survey, the area of most potential for • further prospecting is to the North East of the Malowa hill. The survey • indicates a wide unit of sub-outcropping limestone striking in a South • Easterly direction towards the Khungule hill. • All inclusive drilling and sampling could also be conducted to test the Malowa • hill resource. • The tonnage distribution for the Bwanje deposits are illustrated below:

14. TECHNICAL OVERVIEW cont.. Bwanje Cement Further drilling indicated Malowa-24Mt (granite/dolerite intrusions + high alkalis) Khungule-4.5Mt (high alkalis)

15. CEMENT MARKET Bwanje Cement • LHA Management Consultants (LHA) were contracted to • produce an independent review of the Malawi cement • market and assess the competitive market situation • The report also gives an overview of the economic and • infrastructure investment prospects in Malawi, as well as • a cement industry perspective with respect to future • cement production capacity and demand and pricing • trends.

16. CEMENT MARKET Contd/… Bwanje Cement • CEMENT PROJECTED PRODUCTION CAPACITY • Lafarge strategy is to supply Malawi through its production units in Zambia and Tanzania. • Shayona proposing expansion to 100,000 mta; • Cement Products Limited is a new entrant with projected production capacity of 90,000 mta

17. CEMENT MARKET Contd/… Bwanje Cement • Regional Cement Demand in 2010 and 2020

18. PROJECT FUNDING Bwanje Cement • Equity Investors • Umoza Holdings - Sponsor Equity; • Private Placement – Issue of shares for cash in Umoza Holdings; • Strategic Equity Partner – controlling shareholder and operator; • Sponsor Equity will be cash and contribution of the mineral asset; • Strategic Equity Partner will contribute cash into the project.

19. Transaction Structure Sponsor Shareholder 1 Shareholder 2 Umoza Holdings Ltd SEP/Operator Lenders BCCL Mining Licence EPC Operator

20. CONCLUSION Bwanje Cement • Mining licence and Environmental approvals granted, but EIA has to be verified for World Bank Compliance; • 28 million MT indicated cement grade limestone deposit to be signed off by competent person; • Market study for both Malawi and the region completed; • FLSmidth have provided preliminary process and plant designs ; • Investment Certificate with the Malawi Investment and Trade Centre obtained; • Geotechnical Survey to be carried out for factory foundations; • Access road from Road M5 to be improved to all weather; • Optimally positioned close to essential infrastructure; • Low per capita consumption presents upside potential; • Power supply committed by ESCOM Malawi;