African Energy Resources Guernsey : Investor Presentation

Developing Multiple Power Projects in southern Africa; Company Update

October 2016

AFR: Company overview

AFR is participating in the development of three large-scale power projects in Botswana

African Energy has built a portfolio comprising over 8.5 billion tonnes of thermal coal* in three projects in Botswana, the safest and most stable investment destination in Africa

All three projects are being developed as 300- 600MW fully integrated power projects to supply the chronically power starved SADC region

All three projects are to be funded to investment decision point by development partners,

minimal cash required from AFR

Sese JV: managed by First Quantum Minerals Ltd, targeting power sales to Zambia

Mmamabula West: Term sheet executed with a South African developer to enter into a Joint Venture Agreement to rapidly progress a 600MW power project for South Africa

Mmamantswe: Agreement to sell project to South African developer (TM Consulting) for US

$20M at financial close

* Refer to Appendix 1 Resource Statement

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Corporate summary

Directors and Senior Management

Alasdair Cooke Executive Chairman, >25 years experience in project development, mining and resource sector

Frazer Tabeart Managing Director, >25 years experience in international exploration and development projects,

Bill Fry Executive Director, >25 years experience in finance, funds management and commercial management

Valentine Chitalu Non-executive Director, >25 years experience in finance and funds management, based in Zambia

Phil Clark Non-executive Director, >35 years experience in international coal industry, largely with BHP Billiton

Wayne Trumble Non-executive Director, >35 years experience in power generation and financing, including Bluewaters (WA)

Ian Hume Non-executive Director, >35 years experience in international finance, one of the founders of Sentient Group

John Dean Non-executive Director, Commercial Manager at First Quantum's Sentinel copper operation in Zambia

David Walton Project Manager, >30 years experience with power development, generation and power sales/marketing

Daniel Davis Company Secretary and Financial Accountant, >12 years experience in accounting and resource sector

ASX Code AFR Shares on issue 608 million Market Cap (@ $0.04) AUD $24M Cash (30 Sept 2016) AUD $5.0M Debt Nil

Major Shareholders

The Sentient Group 23% First Quantum Minerals 11% Management 10% Top 20 62%

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Regional power demand - strong growth forecast

Sub-Saharan Africa (SSA) has highest forecast population growth globally

Forecast growth in power demand is linked to population growth and rising living standards

Population is forecast to double between 2010 to 2050, with energy consumption forecast to double in same period

This is driving large procurement programs e.g. South Africa's Integrated Resource Plan (IRP)

Source; Department of Energy, South Africa, 2016

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African Energy Resources Limited published this content on 12 October 2016 and is solely responsible for the information contained herein.Distributed by Public, unedited and unaltered, on 16 October 2016 10:08:03 UTC.

Source: African Energy Resources Guernsey : Investor Presentation