Disclaimersc a e

All statements in this presentation, other than historical facts, thataddress exploration activities and mining potential are forward-lookingstatements. Although Keaton Energy believes the expectationsexpressed in such forward-looking statements are based onreasonable assumptions, such statements should not in any way beconstrued as guarantees of future performance. Factors that could

d l t t diff t i ll f th d i l dcause developments to differ materially from those expressed includeexploration results, technical analysis and lack of availability to thecompany of necessary capital to progress its projects. The company issubject to specific risks inherent in the exploration and miningsubject to specific risks inherent in the exploration and miningbusiness and general economic and business conditions.

2

Who we areS li t f tSalient features

• New SA Coal explorer and developer

• Impetus• Increase in demand for coal• Changed SA mineral rights dispensation• Changed SA mineral rights dispensation

• Founded by Rutendo Mining and the Pouroulis family in 2006

• 2 advanced development projects, pipeline of exploration prospects

• Private placing R100 million – R10 per share

• Trade begins on the JSE main board on 22 April, 2008

142 illi h i i R400 illi i t t li ti

3

• 142 million shares in issue, R400 million in treasury post listing

What we haveC t t tCorporate structure

Izwi Coal(Pty) Ltd

Mafla Coal(Pty) Ltd

4

Why coal?E t l iExport coal prices

120

100

120

s B

ay

60

80

FOB

Ric

hard

s

20

40

US$

/t

2007 prices as at October

0

Jan-

03

Apr

-03

Jul-0

3

Oct

-03

Jan-

04

Apr

-04

Jul-0

4

Oct

-04

Jan-

05

Apr

-05

Jul-0

5

Oct

-05

Jan-

06

Apr

-06

Jul-0

6

Oct

-06

Jan-

07

Apr

-07

Jul-0

7

Oct

-07

Jan-

08

South African Spot Coal Index (Barlow Jonker)

5

South African Spot Coal Index (Barlow Jonker)Average Monthly Achieved Export Price (DME: Minerals Economics)

Why coal?SA l t k t 2004 2007SA coal export markets 2004 - 2007

52.9 55.452.4

60‘000 000 tons

45.1

20

30

40

50

0

10

Europe8.7 6.6 7.2 6.3

0

10

Middle East

Indian Sub-continent

0.8 3.3 2.5

10.5

0

10East Asia

0

101.6 0.8 0.6 1.8

North Africa

1.9 2.8 3.2 1.50

10

1.4 1.2 1.7 1.2

South America0

100.5 0.7 1.1 1.2

Indian Ocean Islands0

10

66

SA

Source: Barlow Jonker

Why coal?R l ti t f lRelative cost of coal

United Kingdom - Oil, Gas and Coal Prices for Electricity Generationg y(US$/tons oil equivalent)

400

450

S$/

ton

250

300

350

S$/to

eU

S

150

200

US

50

100

Q1'

03

Q2'

03

Q3'

03

Q4'

03

Q1'

04

Q2'

04

Q3'

04

Q4'

04

Q1'

05

Q2'

05

Q3'

05

Q4'

05

Q1'

06

Q2'

06

Q3'

06

Q4'

06

Q1'

07

Q2'

07

7

High Suphur Fuel Oil Natural Gas Steam CoalSource: IEA

Why coal?RBCT it tili tiRBCT capacity utilisation

88

Why coal?RBCT it tili tiRBCT capacity utilisation

8590

95

65

7075

80

Mill

ion

tons

50

5560

65

50

2005

2006

2007

2008

2009

2010

9

Capacity Actual Exports

Why coal?I l d l tiInland coal consumption

150

175

200

s

75

100

125

milli

on to

ns

0

25

50

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Power Generation Sasol Small Consumers Metallurgical Industry

2007 consumption for 12 months to October

10

Power Generation Sasol Small Consumers Metallurgical Industry

Why coal?I l d l iInland coal prices

110

90

100

70

80

90

d/to

n FO

R

60

70

Ran

d

40

50

2000 2001 2002 2003 2004 2005 2006 2007

11

000 00 00 003 00 005 006 00

Steam Coal

Source: Department of Minerals and Energy – Minerals Economics

Our projectsL tiLocations

SouthPRETORIA

Bela-Bela 29º Mokopane 30º

ast

South Africa

N

Bel

fa

WITBANKDuvha

Middleburg

N1

N14

JOHANNESBURG

DELMAS PROJECT

26 º

26 º

Delmas

KendalHendrina

u a

N12

N11

Heidelburg

STERKFONTEIN PROJECT

Mba

bane

MatlaKriel

BethalN3

N11

Pie

t Ret

ief

SecundaERMELO

Tutuka

0 30 km

12

Harrismith 29º Standerton Volkrust 30º

Grootvlei

Our projectsD lDelmas

• 1 635 ha property, p p y

• 6 000m drilled, 91 boreholes included in resource statement

• A further 40 holes completed

• Scoping study suggests a multi-product mine producing 250 000

0 1 000

m

producing 250 000 tons ROM per month from 3 open pitsDrill hole data included in resource statement

Holes drilled subsequently

Water course

Power line

13

Regional paved roads Illustrative cross section

DelmasN th S th h ti tiNorth South schematic cross section

Surface topography

No.5 Seam

Avg 1.32m

Avg 14.41m

No.4 Seam

Avg 8 5m

Avg 5.8m

No.2 Seam

Avg 8.5m

Avg 5.4m

14Paeleo floor

Not to scale

DelmasN 2 SNo. 2 Seam

Pseudo anthracite

Bitumin-ous

Mineable Tonnes (‘000)

Mineable Tonnes (‘000)

Resource Area

EAST

CENTRAL 4,40026,300Central(Indicated)

2,40010,000East(Measured)

anthraciteous

N West

24,40060,10017,60023,800

West(Indicated)

• Bituminous coal to yield 61% 22 1S West • Bituminous coal to yield 61% 22.1 MJ/kg product suitable for domestic power sector

• Pseudo-anthracite to yield a high-ash product

0 1 000

m

15

N 4 SDelmasN 4 SNo. 4 SeamNo. 4 Seam

Pseudo anthracite

Bitumin-ous

Mineable Tonnes (‘000)

Mineable Tonnes (‘000)

Resource Area

EAST

CENTRAL 6,40030,700Central(Indicated)

None10,300East(Measured)

anthraciteous

WEST20,90062,50014,50021,500

West(Indicated)

• Bituminous coal to yield 62% 22 5• Bituminous coal to yield 62% 22.5 MJ/kg product suitable for domestic power sector

• Pseudo-anthracite to yield a high-ash product

0 1 000

m

16

DelmasN 5 SNo. 5 Seam

Pseudo anthracite

Bitumin-ous

Mineable Tonnes (‘000)

Mineable Tonnes (‘000)

Resource Area

NoneCentral(Indicated)

None500East(Measured)

anthraciteous

EAST

CENTRAL 1,900

None900NWest(Measured)

3 600None500

SWest(Inferred)

NW

3,600

• Bituminous coal to yield 50% 27.5 MJ/kg product suitable for export

SW

0 1 000

m

17

Our projectsD lDelmas

Sept Dec Mar Jun Sept Dec Mar

1 t h l ti1st phase exploration

Scoping

S.L.P

E.M.PE.M.P

2nd phase exploration

Pre-Feasibility

Mobile plant delivery

Mining Right Application

Feasibility

Environmental Approval

CPR Listing

Resource update

Pre-feas results

Reserve update

Mining begins

18

Our projectsSt kf t iSterkfontein

• 4 009 ha property, 25 000m p p ydrilled, 132 boreholes included in resource statement

• Results indicate better than expected yields

• Significant portion may be North

low phosphorous – suitable for metallurgical market

• Each of Sterkfontein North and Sterkfontein South would support a shaft complex

South

Drill hole data included in resource statement

Illustrative cross section

190 800 1600

m

South

SterkfonteinN th h ti t li d tiNorth schematic stylised cross section

Surface topography

Avg 132m

Avg 30m

No.3 Seam marker

No.4 Seam

Avg 1.87m Avg 3.00m Parting

20

Not to scale

Our projectsSt kf t iSterkfontein

• Mineable coal resources* for• Mineable coal resources for No. 4 seam

• North 1:

North

• North 2:

o

• Indicated: 3.4 MtNorth 1

North 2 • Indicated: 14.1 Mt

• South:

SouthSouth • Measured: 17.3 Mt

• Total coal resource of 34.8 Mt

21

Exploration pipelinep o at o p pe e

• Ermelo Coalfield: application forErmelo

• Waterberg Coalfield: application for

prospecting rights over 1 189ha

EllisrasWaterbergprospect

Johannesburg

Ermelo Coalfield: application for

prospecting rights over 3 263ha

• Utrecht Coalfield: application for

ErmeloErmelo

prospect

Utrecht pp

prospecting rights over 50 887ha

• Klip River Coalfield: application for

Utrechtprospect

DundeeKli Ri

prospecting rights over 4 914haKlip Riverprospect

• Keaton Mining has submitted prospecting right applications over an

2222

g p p g g ppexploration pipeline totaling 60 253ha in 4 different South African coalfields

The investment casee est e t case

• Sound regulatory environment:g y

company design from inception to be fully compliant with new Mineral Rights dispensation

• Strong, experienced team

• Sufficient capital to get into production - R400m in treasury at listing

• Excellent projects and prospects in the right locations:

good product spread

active exploration pipeline

rapid exploration/development/production trajectory

23

• No better time for coal in SA and internationally with robust domestic and export markets

Private placing mechanicsd ti t bland timetable

• Following the presentation, interested participants will be emailed g p p pirrevocable application forms for signature, together with a spreadsheet template for completion

• Signed application forms together with completed spreadsheets to be emailed to Nedbank Corporate Finance (Attention: Michelle Henning) by 12h00 on Tuesday, 8 April

• Successful applicants notified of their allocation by close of business on Wednesday, 9 April

• Abridged PLS published on Tuesday, 15 April

• Listing on the JSE on Tuesday, 22 April (shares issued and payment made)

24

Contact details: Michelle Henning (Tel: 011 294 3524, Fax: 011 294 8602, michellehenning@nedbank.co.za)