Zambezi Gold / Swala Resources corporate presentation Dec 2007

Zambezi Gold PLC

Ahead of the game

Proposed name changeto Swala Resources PLC at 29 January 2008 AGM

Important NoticeThis presentation does not constitute or form part of any offer for sale or solicitation of any offer to buy or subscribe for any securities in ZambeziGold plc nor shall it or any part of it form the basis of, or be relied on in connection with, or act as any inducement to enter into, any contract orcommitment whatsoever. No reliance may be placed for any purpose whatsoever on the information or opinions contained in this presentation or onany other document or oral statement or on the completeness, accuracy or fairness of any such information and/or opinions. No undertaking,representation, warranty or other assurance, express or implied, is made or given by or on behalf of Zambezi Gold plc or any of their respectivedirectors, employees or advisers, as to the accuracy or completeness of the information or opinions contained in this presentation, and (save in thecase of fraud) no responsibility or liability is accepted by any of them for any such information or opinions or for any errors, omissions,misstatements, negligence or otherwise contained or referred to in this presentation. All expressions of opinion are subject to change without noticeand do not constitute advice and should not be relied upon. The contents of this presentation have not been approved by an authorised personwithin the meaning of the Financial Services and Markets Act 2000.

This presentation does not constitute an offer to the public as referred to in section 85 of the Financial Services and Markets Act 2000 (as amended)of the United Kingdom and accordingly has not been nor will it be approved by any competent authority in the United Kingdom. This presentation isnot a prospectus within the meaning of the Prospectus (Directive 2003/71/EC) Regulations 2005 of Ireland and therefore has not been approved bythe Irish Financial Services Regulatory Authorities being the competent authority for the purposes of Directive 2003/71/EC in Ireland. Thispresentation is not an offering document for the purposes of section 49 of the Investment Funds, Companies and Miscellaneous Provisions Act 2005of Ireland.

This Presentation has been prepared by and is the sole responsibility of the Directors of Zambezi Gold plc and is being issued solely to and directedThis Presentation has been prepared by and is the sole responsibility of the Directors of Zambezi Gold plc and is being issued solely to and directedat persons who have professional experience in matters relating to investments falling within Article 19(1)(a) of the Financial Services and MarketsAct 2000 (Financial Promotion) Order 2001 ("FPO") or (b) high net worth entities and other persons to whom the presentation may otherwise lawfullybe communicated, falling within Article 49(1)(a) of the FPO (all such persons together being referred to as "Relevant Persons"). In consideration ofthe receipt of the presentation each recipient warrants and represents that he or it is a person falling within that description. Any person who isunsure of their position should seek independent advice. Delivery of this information to any other person or reproduction, in whole or in part,without the prior consent of Zambezi Gold plc is prohibited.

This information is confidential and is being supplied to you, in whole or in part, for information purposes only and not for any other purpose. Inparticular, the distribution of this document in jurisdictions other than United Kingdom or Ireland may be restricted by law and persons into whosedomain this document comes should inform themselves about, and observe, any such restrictions. Any failure to comply with these restrictions mayconstitute a violation of laws of any such other jurisdictions.

Forward-looking statements are based on the Company’s current intentions, expectations and assumptions regarding its proposed business, theeconomy and other future conditions. Any projections, estimates and beliefs contained in any forward looking statements in this document involveknown and unknown risks, uncertainties and changes in circumstances that are difficult to predict. The Company’s actual performance and financialresults in future periods may as a consequence differ materially from any estimates or projections. The Company does not undertake any obligationto update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The Company cautionsrecipients not to rely on forward looking statements.

December 2007 Zambezi Gold PLC 2

Building an independent African mining company

Zambezi Gold PLCMerger August 2007

Proposed name change to Swala Resources PLC at 29 January, 2008 AGM

Combined assets create an independent African mining companyfocusing on gold, base metals and PGM’s

Create valuethrough acquisition & development December 2007 / January 2008 Pre-IPO funding

2008 /2009 IPO


Arc Mining & Investment SA•Exploration in Gabon & DRC

•Experienced mining / exploration geologists, mainly former Anglo-American

•Long African experience

•Common shareholders with Bugeco S.A.

Zambezi Gold PLC•Exploration in Mozambique and Zimbabwe

•Management team running 6 AIM listed resources companies, $600m combined market cap

•Decades of listed exploration company experience

focusing on gold, base metals and PGM’s

Combined contacts and expertise leveragedto generate and develop projects from grassroots to production

Corporate Profile

• Unlisted UK PLC, listing in 2008/2009 on LSE-AIM, JSE-AltX or Euronext

• 24 million shares in issue, 30 million fully diluted

• Market capitalization at 15p share price is £4.5m

• Fund raising - New shares issued at 15p with a warrant(£1.5m) - Warrant for one new share at 30p, life of 2 years.

• Use of funds - Bring current projects to the next stage of developmentdevelopment

- Due diligence on current acquisition projectinvolving producing gold assets

• Shareholders - 50% former Arc shareholders- 24% 162 Group - 26% approximately 90 individual shareholders

• Lawyers: Mc Evoy Partners Limited

• Auditors: Deloitte & Touche

• Bankers: Allied Irish Bank


Directors and Management

John Teeling

Chairman

• 35 years resources experience in minerals & hydrocarbons• 20 years African mining experience• Established a number of AIM resources companies

Gerard de la Vallee

Poussin

Executive Director

• 35 years resource experience in hydrocarbons, minerals and diamonds• CEO of Bugeco SA and Arc Mining and Investment sa• Consultant to both De Beers and Anglo American in West and Central Africa • Co- Founder of Arc Mining and Investment SA

James Campbell

Director

• Over 20 years of diamond experience with Anglo American PLC & De Beers• Had worldwide responsibility for diamond resource delivery in De Beers• Managing Director of African Diamonds PLCDirector• Managing Director of African Diamonds PLC• CEO of West African Diamonds PLC

Daniel Wouters

Director

• Director of Areva Mining Business Unit• Formerly General Manager of African Merchant Bank• Extensive experience in the financing of projects in francophone Africa

Barry Bayly

Technical Consultant

• 28 years experience in exploration, evaluation, project development, mineral resource management and mine management

• Formerly General Manager Exploration De Beers for Southern Africa, India and Australasia

• Registered with the South African Council as a Professional Natural Scientist


Current projects : Gabon - DRC

Gabon•Joint venture with SearchGold Resources on 7,000km² gold exploration permits: Search Gold to spend $1.5m to earn 50% interest•Aeromag and ground gravity and stream sampling data acquired from De Beers•Strong gold indications present in stream samples taken in area•Exploration underway since June 2007

DRC•Joint venture with Umbono Capital Partners (50/50) on Zinc/Lead project•Potential PGM/Nickel project identified, exploration permits applied for•Ongoing project generation by Bugeco S.A.

Strong contacts , joint ventures and experience limit regional risk

December 2007 6Zambezi Gold PLC

Current projects : Mozambique - Zimbabwe

Mozambique•Joint venture with Magmas Ltda to earn 51% interest in Muda River Gold project•Evidence of significant gold on the licences•Primary exploration underway•Other licences under evaluation

Zimbabwe•Detailed data base of 6,000 gold occurrences being prioritized•Discussions with relevant authorities on a potential joint venture on a gold tailings resource•Exploration licences approved not yet gazetted

Group contacts ensure a constant flow of African resource projects


Mozambique

• Stable and attractive mining policy

• Good geology, largely unexplored

• 51% interest in Muda River Gold Project (Sofala Province, centre of the country ) in joint venture with Magmas Ltda, Mozambique-registered company

• Significant gold historically recovered by artisanal miners, presently extracting 600oz per month from alluvial, eluvial and bedrock deposits

• Exploration underway to find primary gold sources believed to be associated with alkaline ring complexes in close proximity

• Setting is typical of alkaline epithermal and mesothermal gold deposits associated with continental rifting, similar to Cripple Creek deposits (USA)

• Other licences currently under evaluation


Mozambique Muda River Gold ProjectSofala Province


Alluvial diggings along Muda River

Democratic Republic Congo (DRC)

• One of the largest countries in Africa known to have the world’s best undeveloped potential for minerals

• Extensive, high-quality resource base

• Current political transition- New constitution adopted by referendum in

• 2005- Democratic elections in 2006

• New, highly effective Mining Code- Drawn up with World Bank assistance- Passed into law in July 2002

• Southern regions, where projects are located, now relatively stable

• Large mining companies currently re-entering the country


Extensive contacts and Bugeco S.A. relationship: Continued access to top-quality projects

DRC

• 50% interest in joint venture with Umbono Capital Partners LLC, asset management entity of South African Umbono Group

• Geophysical target identified from

Zinc and Lead Project

programme carried out by Bugeco S.A./De Beers

• Previously recorded lead occurrences within the area


• Further geochemical analysis of stream sediment samples carried out by Umbono confirmed anomalous zinc/lead/copper associated with the geophysical target

Application for exploration permits submitted

Zinc/Lead stream sample results in the DRC

DRC PGM and Nickel Project

• Large geophysical anomaly identified in joint venture with BugecoS.A.

• Anomalous levels of platinum group metals, nickel, copper, and


nickel, copper, and chrome reported in analytical results from wide-spaced stream sediment samples

• Abundant gold flakes present in some of the sediment concentrates

Application for exploration permits submitted

Heli-sampling in the DRC

Gabon

• Abundant natural resources

• One of the more prosperous and stable African countries

• Assets transferred in 2007 merger:- Arc rights to De Beers exploration database including airborne geophysics and stream sample geochemistry data- Prospecting authorisations for 7000 km² terrain known to contain alluvial gold and diamondsknown to contain alluvial gold and diamonds


• Long-established artisanal gold workers in Booué concession areas

• Discussions with major companies showing interest in licensed areas: geology propitious for iron ore, base metals and uranium

• Interest in Gabon as gold resource country substantially enhanced by the results of the SearchGold / Managem Bakoudou operation near Franceville (recently drilled 49m with 16 g/t average)

Gabon

• Joint venture agreement with SearchGold Resources Inc., Canadian junior mining company; SearchGold to spend US$1.5m over 3 years to gain 50% interest

• Booué Gold Property: 3 exploration licences confirmed covering approx 4,000km², north central Gabon

• Mimongo Gold Property: 529 km² exploration licence confirmed, south central Gabon

Booué & MimongoGold Projects

confirmed, south central Gabon

• Identified from De Beers exploration data: total area of 33,513km², airborne geophysical surveys and regional stream geochemistry, 9,315 stream samples with coarse fraction isolated and studied with binocular microscope for diamond indicator minerals – in licensed areas, numerous instances of visible gold grains observed


Gabon Booué & MimongoGold Projects

• De Beers exploration work on these properties: 2,719 stream samples including 128 reporting visible gold grains in the coarse fractions

• Favourable geological context of under-explored greenstone belts, regional structural


belts, regional structural features

• First brief exploration campaign completed in summer 2007:- 40km of lines cut through the jungle- 11km of traverses opened- 796 ground samples taken

Zimbabwe

• Recognized significant potential for gold and base metals- Historically produced over 20 tons gold per year- 2006 production under 10 tons due to political uncertainty and lack of investment- Very little prospecting carried out over past 20 years

• Many mines that have closed down have substantial residual potentialresidual potential


Could be realised through new technology and mineral resource development

• Ownership of detailed data base of 6000 gold occurrences currently being prioritized and targets identified

• 10 exploration licences approved but must still be gazetted

Objective: Positioning for political change and improved investment climate - Strong established network of technical, business, political contacts

Zimbabwe Database used to prioritise deposits


Zimbabwe Licences

EPO Local GeographicMining District

Area applied for(Hectares)

Minerals sought

Period of Tenure(Years)

Rowa Harare 33,250 Diamonds 2

Pauls Rest Bulawayo 60,271 Diamonds 2

Norwood Bulawayo 56,678 Gold 3

Mutata School Harare 45,480 Gold 3


Mutata School Harare 45,480 Gold 3

Mushinge Township Harare 60,768 Diamonds 2

Masembura Harare 41,630 Gold 3

Manami Bulawayo 59,733 Gold 3

Madziwa Harare 54,670 Diamonds 2

Chirinda School Harare 58,757 Diamonds 2

Chief Bota Masvingo 65,000 Diamonds 2

Fundraising – Use of Proceeds

18-month Budget (£) 1,500,000

Mozambique - Muda River Gold Project 150,000

DRC - Zinc/Lead Project & PGM/Nickel Project 200,000

Gabon – Booué & Mimongo Gold Projects(Project expenditures mostly covered by SearchGold Resources)

50,000

Zimbabwe – Gold Projects 150,000

New project generation and miscellaneous costs

200,000

Acquisition transaction “war chest”(Due diligence on current acquisition project involving producing gold assets)

500,000

Listing costs 250,000


Conclusion

• Top quality management team

• Expected continued high commodity prices

• Highly prospective portfolio

• Constantly evaluating new projects• Constantly evaluating new projects

• Value enhancing operational development

• IPO will crystallise value and build for future


Zambezi Gold PLC


Contacts

Email [email protected] +353 1833 2833Fax +353 1833 3505

Presentation No.

Zambezi Gold / Swala Resources corporate presentation Dec 2007

Business

Transcript of Zambezi Gold / Swala Resources corporate presentation Dec 2007