Ben James - Baobab Resources PLC & Capitol Resources IDA - The Tete pig iron & ferro-vanadiumm...

BAOBAB RESOURCESUNLOCKING THE IRON & STEEL WEALTH OF MOZAMBIQUE

IMM AFRICAN IRON ORE CONFERENCE – JUNE 2014

Baobab Country

Three sentinels in the Zambezi Valley,

home to some of the most dense Baobab

populations in Africa.

SCALE

• 759Mt global resource inventory (34% Fe)

• Base case Pre-Feasibility Study scenario of 1Mtpa pig iron production & c.3ktpa ferro-vanadium (FeV) co-

production over 37 years exploits only 16% of global resource

• Demonstrated ability to scale up production

ROBUST BASE CASE PRE FEASIBILITY STUDY RESULTS

• Pre-Tax NPV10: US$1.3Bn | Pre-Tax IRR: 22% | Upfront capital expenditure: US$1.14Bn

• Lowest Quartile Pre-Credit operating cost: US$225/t (FOB) pig iron | US$159/t (FOB) pig iron post FeV credit

• Pre-Feasibility Study test work confirmed the successful extraction of titanium from the magnetite ore & the

production of a vanadium by-product. Further bench & pilot test work is underway

• Pig iron with 97% Fe & low deleterious elements was produced at bench scale

• Flow-sheet is developed & comparable to production facilities in South Africa & New Zealand

SUPPORTIVE HOST GOVERNMENT

• Mining friendly jurisdiction which has attracted significant Foreign Direct Investment (FDI) & investments by

major blue chip mineral resource & oil/gas companies

• Government of Mozambique offers various investment incentives & favourable taxation terms for major

industrial & natural resource projects

LOCATION & INFRASTRUCTURE WITH CORE IRON & STEEL MAKING COMMODITIES AT DOORSTEP

• Located in the emerging mining & industrial hub of Tete

• Tete hosts some of the world’s largest undeveloped coal deposits which are being brought into production by

some of the world’s largest mining companies & steel producers

• Significant infrastructure investments being made in the region, focusing on expanding port & rail capacity

• Unique access to abundant thermal coal, low tariff hydro & thermal power & water: critical raw materials for

iron & steel making

• Required thermal coal is being produced as a waste by-product of coal washing process & is currently being

reburied at significant cost to mitigate environmental impacts

INVESTMENT HIGHLIGHTSLARGE SCALE | LONG TERM | LOW COST

Unique Investment Proposition

Ricardo Chauchane holds aloft Baobab’s

first billet of Pig Iron smelted at the CSIRO

laboratories in Australia using Tenge iron

ore & locally derived thermal coal.

BAOBAB RESOURCES PLCFIRST MOVER ADVANTAGE IN MOZAMBIQUE

• Baobab Resources plc listed on AIM in 2007.

• Mozambique focused with a portfolio of 5 green to brown field projects boasting a range of commodities.

First mover advantage with 7 years operating experience in country.

• Tete pig iron & ferro-vanadium project is the Company’s flagship asset: robust 1Mtpa Pre-Feasibility Study

results released at the end of March 2013 & 2Mtpa production scenario released in June 2013.

• Baobab owns 85% of the Tete project since bringing in International Finance Corporation (IFC), a member

of the World Bank group, in 2008/2009. IFC now has a 15% contributing interest in the project & is the

Company’s second largest shareholder.

• African Mineral Exploration & Development (AMED) fund holds 35.4% of Baobab Resources through

investments totaling c.£12m.

• Standard Chartered Bank’s specialist mining corporate finance division engaged in June 2013 to advise

Baobab on strategic financing alternatives.

Shares on issue:

342.3m

Warrants: 0.0m

Options: 20.8m

Employee & Director Options: 22.9m

Fully Diluted: 385.0m

Market Cap (25 APRIL 2014): c.£35m

Mozambique: Africa’s Rising Star

Baobab Resources plc is focused on

developing an integrated mining & iron

making operation in Mozambique,

delivering robust investor returns with

unprecedented socio-economic benefits.

• Robust geological provinces with little or no historic exploration.

• Stable, democratic government.

• Modern Mining Act & Cadastral licensing system guaranteeing security

of tenure.

• Good infrastructure with major investments into transport,

communications, power, agriculture, industry & mining.

• The Mozambican Government is firmly committed to encouraging

foreign investment in developing Mozambique’s mining industry.

Baobab enjoys exceptional support from the Government, in particular

the Ministry for Mineral Resources.

• Flourishing mining industry with the Tete region becoming significant

mining & industrial hub, expected to produce up to 20% of the world’s

coking coal within the next decade.

• Major discoveries in Oil & Gas sector will position Mozambique as a

significant global producer / exporter.

• Successfully commissioned large scale secondary industries as

evidenced by the Mozal aluminium smelter (BHP Billiton / Mitsubishi /

IDC).

MOZAMBIQUESOUTHERN AFRICA’S RISING STAR

TETE PIG IRON & FERRO-VANADIUM PROJECTA MAJOR ASSET IN AN EMERGING MINING & INDUSTRIAL HUB OF SOUTHERN AFRICA

• Strategically located to access low

tariff hydro/thermal power, thermal

coal & water, critical components in

the beneficiation of iron ore & down-

stream smelting.

• Tete hosts the largest undeveloped

coal deposits on the planet & could

be producing up to 20% of the

world’s coking coal within the next

decade.

• Large scale investments going into

the expansion of existing port & rail

infrastructure as well as Greenfields

alternatives.

• Strategically located on Africa’s

eastern seaboard to access growth

markets in Asia, India & the Middle

East.

Page 5

Sena Rail Corridor & Port of Beira

Vale’s 35,000t transshipment vessel being loaded at the Beira

coal terminal. The Sena rail corridor has recently achieved its

nameplate capacity of 6Mtpa with Portuguese construction firm,

Moto Engil, commissioned to expand capacity to 20Mtpa within 2

years.

GALLERY 1: PORT & RAIL INFRASTRUCTURE

Tangible Progress

Bridge footings: New section of Vale’s Nacala Rail

Corridor in Malawi. Infrastructure development is a

key driver to domestic & regional construction steel

(rebar) demand. Photograph taken during site visit

in April 2013.


Nacala-a-Velha Coal Terminal

Vale’s new coal terminal at Nacala is on target

for first shipments in December 2014. Nacala

is East Africa’s premier deep water port.


Rapid Infrastructure Development

Flying in the face of widely held perceptions of

developing infrastructure in Africa, the new heavy

vehicle bridge crossing the Rio Zambezi down river

from Tete is being completed well ahead of

schedule.


CORE IRON & STEEL MAKING RAW MATERIALS ON BAOBAB’S DOORSTEPRIO TINTO, VALE & NIPPON STEEL/POSCO COAL PROVEN SUITABLE FOR BAOBAB’S REDUCTION PROCESS

TENGE – RUONI RESOURCE BLOCKWORLD CLASS DEPOSIT UNDERPINNING PROJECT LIFE >50 YEARS

• 759Mt JORC global resource inventory defined through c.90,000m of diamond & RC drilling.

• 585Mt of which underlies the 2.5km2 footprint at Tenge-Ruoni & grades 36% Fe (156 Measured / 167Mt Indicated / 262Mt Inferred).

• Independent consultants SRK are completing pit optimisation, mine scheduling & reclassification if Resources to Reserves.

• Magmatic vanadiferous titano-magnetite horizon, averaging 100m in thickness (up to 180m in places), within the Tete Mafic Complex.

• Strip ratio of 0.4 through the first 22 years of operation will contribute to lowest quartile production costs.

The 550Mt Iron Leviathan

Tenge-Ruoni resource block with

diamond & RC drill traces.

Power

Co-generation

Off-gas

PROVEN TECHNOLOGYINDUSTRY STANDARD FLOWSHEET

Operational Analogies:

Highveld Steel & Vanadium

• Operator: EVRAZ

• Years in operation: >40

• Concentrate specs: 59% Fe, 13% TiO2, 1.5%

V2O5

• Annual production: c.750,000t

New Zealand Steel (Glenbrook)• Operator: BlueScope Steel

• Years in operation: c.40

• Concentrate specs: 59%Fe, 8% TiO2, 0.46% V2O5

• Annual production: c.1Mt

• Power Co-gen: 60% to 80% total power

US$1.1bn CAPEX SPLIT BETWEEN

MINING & HEAVY INDUSTRY

1MTPA PIG IRON PRODUCTION FLOW SHEET

Modular technology & large resource base

support scaled up production scenarios

c.3Mtpa ROM

36% Fe Head Grade

Beneficiation Process

(coarse Cobbing)

c.2Mtpa Ti-Magnetite Concentrate

51% Fe Concentrate Grade

c.1Mtpa Thermal Coal(coal production within

50km of operation)

c.0.4Mtpa Carbonate Flux(large dolomite deposit discovered c.5km

of the operation within Company tenure)

Direct Reduction Circuit

Rotary Kilns

Multi-hearth

furnaces

Off-gas

Titanium Slag Electric Smelter

Vanadium Refinery

Vanadium

Recovery

Ladle

Pig Iron

Casting

Vanadium Slag

(c.25,000tpa)

Ferro-Vanadium Alloy

(c.3,000tpa)

Road base / cement extender

Further refining to Ferro-Titanium products

Direct Reduced

Iron (DRI)

1Mtpa Pig Iron

Billets

Low Tariff Hydro-electric

& Thermal Power

Molten Fe/V

PIG IRON MARKETMOZAMBIQUE TO SUPPLY INTO FAST GROWING SUB-SAHARAN AFRICA

COMMODITY OVERVIEW

• Pig iron is a raw material & an intermediate product of the

smelting of iron ore.

• Pig iron used in Electric Arc Furnaces (EAF) along side scrap

iron to produce crude & finished steel products.

• EAFs currently account for c.30% of all steel production globally.

• Global Consumption:

– Pig Iron: c.70Mtpa (including domestic China)

– Scrap Iron: c.350Mtpa (2010)

STRONG MARKET FUNDAMENTALS

• Fundamentals driven by:

• Increasing demand for steel driven by on-going infrastructure

development & urbanisation of the BRICS & sub-Saharan

Africa.

• Middle East / Gulf determination to reduce dependence on

import markets through the establishment of domestic steel

industries.

• Maturing of China’s scrap iron market & general decline in

the quality of scrap iron elsewhere in the world.

• Global shift away from high impact blast furnaces to

environmentally sustainable, modular EAF technology.

• Pig iron price has increased at an average rate of ~15% per

annum over the last decade, driven by an increase in global

demand for crude steel.

• Current pricing varies between markets with current range of

US$425/t – US$500/t

TETE PIG IRON & FERRO-VANADIUM OPERATING COSTSTETE PROJECT TO REDEFINE THE BOTTOM OF THE COST CURVE

Typical OPEX in Brazil (US$385/t) Baobab OPEX by comparison (US$225/t) Baobab OPEX after By-Product credits

BY-PRODUCT: FERRO-VANADIUM ALLOY (FeV)

• Co-production of c.25,000t of vanadium slag (in 1Mtpa scenario) may be refined to produce c.3,000tpa of ferro-vanadium alloy (FeV),

adding significantly to the revenue stream & representing a by-product credit of c.US$65/t of pig iron (using US$25/kg FeV).

• Over 90% of vanadium is consumed as ferrovanadium in the production of steel to improve steel strength, toughness & heat resistance.

It is usually added in the form of ferro-vanadium (FeV), a vanadium-iron alloy.

• Global demand is set to increase with new Chinese regulations on high strength construction steel a key driver.

BASE CASE OF 1MTPA OF PIG IRON

• Tete Province is an unique confluence of iron making commodities (iron ore, coal, power & water).

• Required thermal coal is being produced as a waste by-product of coal washing process & is currently being reburied to mitigate

environmental impacts.

• Significant progress is being made in securing the source (hydro-electric & thermal coal) & supply of long term, economically feasible

power.

COMPLETED REDUCTION & SMELTING TESTWORKHIGH PURITY PIG IRON PRODUCED WITH BAOBAB IRON ORE & TETE COAL

CSIRO REDUCTION & SMELTING TESTWORK

• Bench-scale pyro-metallurgical test work carried out by the Commonwealth Scientific and

Industrial Research Organisation (CSIRO) has confirmed the ability to produce a low impurity

pig iron product using Baobab’s iron ore & local Mozambique thermal coal.

• A final iron alloy containing 99% Fe after refining was produced which is significantly purer than

the specification of a commercial pig iron product.

• Critically, the experiments demonstrated that both titanium & vanadium could be

removed from the pig iron to separate slag by-products.

• The iron making process can be adapted to ensure that products are tailored to meet end user

requirements (particularly with regards to carbon content). Assuming a final composition

containing 4.0% carbon, the test work results indicate that a high quality pig iron product of the

following specifications can be produced (after Vanadium removal):

• The test work further confirmed the suitability of three sources of local thermal coal (from two

commercial operations & one in-development project in the immediate Tete Project area) in the

reduction process, achieving at least 85%, and up to 93%, metallisation.

• The bulk samples of Tenge oxide iron ore, Massamba carbonate & local thermal coal product

are undergoing pilot scale reduction tests at FLSmidth’s test facilities in the USA.

• Further larger scale test work utilising the direct reduced iron produced at FLS will be

conducted to confirm the final specifications of both titanium & vanadium by-products.

Empirical Evidence

Baobab’s bench scale test work at the CSIRO

laboratories in Australia has successfully

produced low impurity pig iron & vanadium &

titanium rich slags using Tenge iron ore &

locally derived thermal coal.

TETE PROJECT FLY-THROUGHTHE CONCEPT IN 4D

PFS HIGHLIGHTS ROBUST INVESTOR RETURNSWITH UNPRECEDENTED SOCIO-ECONOMIC BENEFITS TO MOZAMBIQUE

Impressive Geology

Baobab’s Chairman, Jeremy Dowler,

reviews the TGDH0005 144m mineralised

intercept grading 42% Fe with Exploration

Manager Iain Plews

BANKABLE FEASIBILITY STUDYPRIORITISING KEY AREAS OF PERCEIVED RISK

Eliminating the Risks

Reverse Circulation (RC) drilling at the

Monte Tenge deposit nears completion.

Baobab intends to elevate the first c.10

years of mining to a ‘Measured’ category

(JORC).

TECHNICAL DEVELOPMENT

• Systematic programmes are underway to address the following:

• Measured Resource Definition: drilling & associated studies to elevate

sufficient resources to a Measured category to support the first 8 to 10

years of operation.

• Coal Supply: further bench scale reduction test work of local coal to

determine suitability. Negotiations for competitive off-take.

• Beneficiation Optimisation: review & optimise beneficiation flow sheets.

• Pilot Scale Direct Reduction: complete direct reduction test work at a

pilot plant scale using Tete iron ore & locally sourced thermal coal.

• Advanced Pyro-Metallurgy: smelting test work to confirm the

characteristics of the pig iron, vanadium slag & titanium slag products.

• Technical Marketing Studies: to better illustrate global pig iron & ferro-

vanadium supply/demand dynamics & identify prospective end users of

Baobab’s production.

• Raw Materials Supply: quantify sources of ancillary raw materials

including limestone/dolomite & silica (used as fluxes in reduction process).

• Licencing: applications for mining concession/contract, industrial licences

& land use permits (DUATs).

• Additional studies & test work addressing specific areas of perceived project risk.

SECURING THE SOURCE OF POWERHYDRO-ELECTRIC, THERMAL COAL & CO-GENERATION

A RANGE OF POWER OPTIONS ARE BEING ASSESSED

The Project would employ two 75MW electric arc furnaces & would therefore require access to c.150MW.

In conjunction with Mozambique’s publically owned electricity company, Electricidade de Moçambique (EDM),

Baobab is working to secure a balanced, long term, sustainable power tariff. Current & developing power

sources include:

HYDRO-ELECTRIC POWER

• 2,075MW Cahora Bassa dam & North Bank expansion project.

• Future hydro-electric facilities tabled at Mphanda N’kuwa (1,500MW) & other sites on the Zambezi

River.

• Studies have identified potential sites for c.130MW of base-load hydro-power in the immediate vicinity

of the Tete Project which may underpin future production expansion initiatives.

THERMAL POWER

• Abundant thermal coal being produced in Tete as a wash by-product & not commercially viable for

export, represents a low cost power source.

• 300MW Moatize Power Plant: (ACWA | Vale | Mitsui) anticipated production by Q1 2017

• 300MW Ncondezi Energy Project: PPA signed with EDM. Within 25km of Tete Project.

CO-GENERATION

• Collection of off-gas from direct reduction & smelting processes may be used to co-generate power.

• BlueScope Steel’s Glenbrook operation in New Zealand co-generates between 60% & 80% of total

power requirements.

The unique location of Baobab’s project means that only c.50km of transmission infrastructure will be required

to link site with national grid.Cahora Bassa Dam

Located on the Zambezi River in

Mozambique’s Tete Province, the 2,075MW

dam is southern Africa’s single largest source

of hydro-electric power.

EXISTING & FUTURE PORT & RAIL CORRIDORS

Baobab is in advanced discussions with both the public & private sectors to formalise port & rail requirements.

Current & developing rail/port options include:

SENA RAILWAY LINE & BEIRA PORT

• Operator: CFM (Mozambique port & rail authority)

• Length: 570km

• Current | Expanded capacity: c.6Mtpa | c.20Mtpa by H2 2014

• Contractor: Mota Engil

• Port capacity: river mouth port requiring dredging. Suitable for Handimax vessels. Larger vessels require

transshipment.

NACALA RAILWAY CORRIDOR & PORT

• Operator: US$4.5bn investment by Vale in consortium with Mozambique & Malawi concessionaries.

• Length: 912km

• Current | Expanded capacity: <1Mtpa | c.22Mtpa by H1 2015

• Contractor: Mota Engil | Kentz | Soares Da Costa | others

• Port capacity: East Africa’s premier natural deep water port. Existing port & new facilities able to

accommodate Capesize vessels. Estimated capacity c.100Mtpa.

MACUSE RAILWAY CORRIDOR & PORT

• Operator: US$3bn tender awarded to the Italian Thai Development PLC.

• Length: 525km

• Current | Expanded capacity: 0tpa | c.25Mtpa by 2018

• Port capacity: new deep water port to be developed. Dedicated bulk commodity handling facility.

SECURING PORT & RAIL ALLOCATIONOPTIONS ON EXISTING & EXPANDING INFRASTRUCTURE

Railway Solutions

With the Tete region potentially contributing

up to 20% of global sea-borne coking coal,

railway infrastructure development is a

question of ‘when’, not ‘if’.

LOCAL & NATIONAL ECONOMIC IMPACTDIRECT & MULTIPLIER EFFECT BENEFITS

c.500

Direct Employment

Opportunities

+2,000

Indirect Employment &

Associated Business

Opportunities

| supply | maintenance | agriculture | health |

| education | infrastructure | transportation |

| manufacture | entertainment | catering |

| finance | housing | electrification |

| communications |

MULTIPLIER EFFECT

• Personal tax revenues

• Disposable income & development of cash economy

• Growth of small to medium sized business enterprises

• Poverty mitigation & improved access to health & education services

BAOBAB OBJECTIVES ALLIGNED WITH CPI INVESTMENT LAW

• Corporate tax & royalties

• Development of export economy & generating foreign currency

• Reduction & substitution of imports

• Personal tax revenues

• Creating jobs for national workers & raising professional skill levels

• Diversification of export products

Profound Changes

Although only c.50km from the provincial

capital of Tete, Baobab’s work area is

sparsely populated & under-developed.

Safe Access to Safe Water

Drawing water from the Rio Revuboe is not without considerable

risk, with crocodile attacks a constant threat. Baobab has

commissioned the first of 5 planned water bores that will provide

local communities with safe access to safe water.

GALLERY 2: COMMUNITY

Revuboe Crossing

Baobab’s light vehicle pontoon links the Tenge

Camp with the Massamba Camp & has

become a happy alternative for the Tenge &

Mbuzi communities to crossing by dugout

canoe. The pontoon captain & crew are

employed locally.

GALLERY 2: COMMUNITY

SKILLS TRANSFERBAOBAB FOCUSSING ON MOZAMBICAN SKILLS DEVELOPMENT

First Mover Advantage

Baobab has been active in Mozambique

since 2006, during which time it has

developed an excellent team of industry

professionals as well as strong government

relationships.

MOZAMBIQUE TO BECOME THE CORNERSTONE OF REGIONAL STEEL DEMANDLARGE SCALE INFRASTRUCTURE PROJECTS TO DRIVE FUTURE REGIONAL STEEL DEMAND

BAOBAB’S LOW COST PRODUCTION KEY TO REGIONAL STEEL SUPPLYSTRATEGIC LOCATION MAKES THIS PROJECT GLOBALLY COMPETITIVE

TETE PROJECT’S COMPETITIVE ADVANTAGE

• Processing flow sheets easily adapted to incorporate steel production.

• The project’s strategic access to all requisite steel making commodities

ensures it will maintain first quartile production costs going from pig iron

production to steel production.

• Desk top evaluation of steel billet & reinforcing bar (rebar) mill returned

encouraging results, with OPEX estimates very cost competitive against

merchant & South African steel prices.

• Rapid growth of domestic demand for steel products due to continued

urbanisation & commissioning of large scale infrastructure projects (including

the Rovuma Basin LNG industry, hydro-electric & thermal power projects &

associated power transmission expansion programmes).

Tenge Trenching

Senior geologist Norman Gwaza poses beside one of two

large scale trenches excavated across the Tenge deposit.

Bulk samples collected from the trenches will be used for

pilot scale test work in the USA, Japan & possibly China.

Q1 2013 H2 2014 H1 2017

Project Financing

Vale Nacala corridor

commissionedApplication for

Mining Licence1 – 2Mtpa Pig Iron

(scalable to 4Mtpa)

Port, rail & power MoU

agreements signed with

government, EDM & CFM

PROJECT STATUS & DEVELOPMENT TIMELINECLEAR DE-RISKING ACTIVITIES ALONGSIDE DEFINITIVE FEASIBILITY

Pre-Feasibility Study

outlines compelling

commercial case for

development.

Tete Bridge

One of only seven bridges crossing the

2,574km long Zambezi River. A new heavy

vehicle bridge is under construction 2km

down river & is expected to open in 2014. Page 27

SUMMARYCOMPELLING INVESTMENT CASE

• Operating expenditure redefining the bottom of the global cost curve

• Impressive returns & unprecedented socio-economic benefits

• Proven technology producing high value / high demand materials

• Domestic, regional & international end-markets

• Potential to scale up production

• Clear timeline to production with strategic partnership discussions underway

• BFS funding effectively underwritten by AMED

• IFC, government & investor support

Tier 1 Asset

Project geologist Jone Dzindua inspects a

specimen of oxidised titano-magnetite at

the Tenge deposit.

O B R I G A D O

BAOBAB RESOURCES PLCUNLOCKING THE IRON & STEEL WEALTH OF MOZAMBIQUE

Monte Tenge

Mighty Monte Tenge rears some 120m above the local

plateau. The Tenge starter pit will support a 1Mtpa pig

iron operation for 22 years at an enviably low average

strip ratio of just 0.4. RC drill rigs completing measured

resource drilling can be seen on the lower slopes.

Page 29

ANNEXURE 1: TETE PROJECT GLOBAL RESOURCE INVENTORYLARGE RESOURCE BASE PROVIDING SCOPE TO SIGNIFICANTLY SCALE UP PRODUCTION

ANNEXURE 2: BOARD PROFILEDEMONSTRABLE EXPERIENCE, FOCUS & SUCCESS

Jeremy Dowler, Chairman• Founding shareholder & Finance Director of Platmin Ltd from 2000 to 2005. During this period Platmin was transformed from a concept capitalised at £1m to an exploration

company capitalised at £170m, with a discovered resource base of 23m ounces of PGE’s, upon listing on the AIM & TSX in 2006. By mid-2007, the pre-production market

capitalisation had risen to c.£450m.

• Non-executive director of Welsh coal miner Unity Power Plc from 2006 until December 2011, developing a world class metallurgical coal deposit.

• Qualified Chartered Accountant & board member of various resource companies of the past 20 years including ASX listed Cove Mining as well as corporate consultant to OFEX

traded Coronation Mining Limited which initiated exploration on the Essakane gold deposit in Burkina Faso, now in the IAMGOLD stable.

Ben James, Managing Director

• Geologist with over 17 years global experience in the mineral exploration & development industry (MAusIMM).

• Working expertise in a wide variety of geological terrains & commodities in Africa, Australasia & eastern Europe.

• With Baobab Resources since 2006 as Exploration Manager, Technical Director & Managing Director.

• Relocated to Mozambique during Q2 2012 to oversee aspects of PFS, particularly government & key stake holder liaisons.

Jonathan Beardsworth, Non-executive Director• Managing Director (Asia) for corporate advisors Cutfield Freeman & Co. Based in Hong Kong.

• Former CEO of Metals Exploration Plc. – delivered the feasibility study on the Runruno Au/Mo project in the Philippines.

• Former head of the London office of Standard Bank Plc’s Mining & Metals team with specific responsibility for Asia/China.

• Nearly 20 years corporate & M&A experience in the mining industry worldwide.

• Early career: Major, Royal Tank Regiment, British Army

Dr Mohan Kaul, Non-executive Director• Dr Kaul is currently Chairman of the Commonwealth Business Council (CBC) & Commonwealth Investment Corporation.

• Appointed Director-General & CEO of the CBC on its establishment by the Commonwealth Heads of Government in 1997, a position held until March 2012.

• A member of the Presidential Advisory Councils of Mozambique, Uganda & Zambia.

• Has led international advisory & consultancy assignments in over 40 countries, including assisting the South African government on public service reforms & leading a

delegation to China for Presidential level discussions on governance & globalisation.

Dr David Twist, Non-executive Director• PhD geologist & business man with more than 30 years experience in mineral research & exploration.

• Has been involved in multi-commodity target generation, implementation & management of exploration programmes, feasibility studies, mining & deal-making.

• Founding a director of Platmin, Taung Gold, Sephaku Holdings & other companies.

• Co-founder of African Minerals Exploration & Development SICAR, a private equity fund focused on brownfields exploration in Africa.

Carlo Baravalle, Non-executive Director• Holds an MBA from INSEAD & brings a wealth of experience in corporate finance to the board.

• Held numerous roles in the European & North American telecoms industry, including Director of the Corporate Finance Telecoms team at Warburg.

• Involved in the private equity sector since 2007, managing large funds for mainly Italian institutional investors.

• Co-founder of African Minerals Exploration & Development SICAR, a private equity fund focused on brownfields exploration in Africa.

ANNEXURE 3: MANAGEMENT PROFILEDEMONSTRABLE EXPERIENCE, FOCUS & SUCCESS

Ben James, Managing Director• Geologist with over 18 years global experience in the mineral exploration & development industry (MAusIMM).

• Working expertise in a wide variety of geological terrains & commodities in Africa, Australasia & eastern Europe.

• With Baobab Resources since 2006 as Exploration Manager, Technical Director & Managing Director.

• Relocated to Mozambique during Q2 2012 to oversee aspects of PFS, particularly government & key stake holder liaisons.

Frank Eagar, Chief Financial Officer & New Business Manager• Frank joins Baobab as CFO after 9 years as finance manager & business development executive at BSG Resources.

• Chartered Accountant with 13 years of accounting, finance & business development experience across a diversified range of minerals projects &

jurisdictions.

• Experienced in capital raisings by means of IPO’s & project finance for green & brown field resource projects across Sierra Leone, Zambia & South Africa.

• Close working relationship with a number of international investment banks & lenders to the mining industry.

• Heavy involvement in the M&A, evaluation & due diligence of a number of large scale mining & resource transactions across Africa & Eastern Europe.

Iain Plews, Exploration Manager• Over 30 years exploration & mining experience in Africa, holding senior positions with Anglo American Corporation, Ashanti Goldfields, ITM Corporation,

Reunion Mining & Takoradi Gold NL.

• Operated in over a dozen countries in sub-Saharan Africa exploring for a range of commodities including gold, PGEs, diamonds & base metals.

• Residential in Mozambique. Fluent Portuguese language/literacy.

Fatima Sing Sang Neto, Finance & Administration Manager• Honors degree in Business Management by Universidade Eduardo Mondlane.

• 7 years’ experience in audit & accounting at KPMG Auditors & Consultants Mozambique.

• 6 years’ experience as Administrative & Finance Manager at Grindrod / Maputo Car Terminal Lda & TORA Group.

• Joint to Baobab / Capitol Resources Lda in May 2013.

Elisa Vicente, Community & Environment Manager• MSc in Marine and Coastal Management from the University of KwaZulu-Natal in South Africa.

• Senior Consultant at Coastal & Environmental Services Mozambique Lda.

• Project Manager on a range of Environmental Impact studies with special relevance in mining, water supply systems, resettlement & aquaculture.

• Worked at the National Institute of Fisheries Research in Maputo where she developed several aquaculture projects from 2007 to 2012.

Karl van Turnhout, technical Systems Manager• Geologist & GIS analyst with over 15 years experience in the exploration, consulting & groundwater industries.

• Degree in geology from Otago University & post graduate diploma in GIS & Remote Sensing from the University of Canterbury.

• Worked in various roles for the API West Pilbara Iron Ore Project & Mt Edon Gold Mines in Western Australia, Argentina Mineral Development South

America Ltd in Argentina, Iamgold in Tanzania & CRL Energy Ltd on the West Coast of New Zealand for commodities including as iron ore, gold, copper,

nickel & coal.

• Completed a number of projects as a contract GIS Geologist for Baobab Resources plc since 2006; joining them on a permanent basis as GIS & Database

Manager in 2011 and as Technical Systems Manager in 2013.

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may cause the actual results, achievements or performance expressed or implied by such forward looking statements. Such risks & other factors include,

but are not limited to, general economic & business conditions, changes in government regulations, currency fluctuations, the gold price, the Group’s

ability to recover its reserves or develop new reserves, competition, changes in development plans & other risks.

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These forward-looking statements are correct or represent honestly held views only as at the date of delivery of this presentation.

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Ben James - Baobab Resources PLC & Capitol Resources IDA - The Tete pig iron & ferro-vanadiumm...

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