Building a mining company in Southern Africa

March 2013 www.xceedresources.com.au

ASX: XCD

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South African coal

A BIG market by world standards…..

7th largest coal producer in the world (about ¼ of US production)

4th largest coal consumer in the world (behind only China, US and Japan)

92% of all coal produced in Africa is produced in South Africa

45% of all electricity produced in Africa is produced by the SA power utility Eskom (7th largest in the world)

With a BIG challenge to be met…….

85% of all coal produced in South Africa has historically come from the Central Basin

85% of all of Eskom’s current generating capacity is located on the Central Basin

From 2015 supplies from the Central Basin will decline rapidly when existing large-scale mine suppliers reach

the end, forcing supplies to be secured from further afield

“…There’s a serious, serious supply shortage in South Africa to supply Eskom. From 2013 to 2019, 120-million tons of new capacity needs to come on stream. South Africa’s biggest challenge right now remains the supply to Eskom over the next six years. Longer term; of the four-billion tons of coal that Eskom will need over the next 40 years, two-billion tons will have to come from new sources…” Ian Hall, Chairman South Africa Coal Road Map, McCloskey Coal Conference, Cape Town, January 2013

We have one of the few remaining long life coal mines located in the Central Basin

PLUS we are one of the closest mines to the premium Johannesburg industrial market.

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What does this mean…

We have a significant opportunity, as well as a competitive edge, to take advantage of this situation

Our two markets are ESKOM and the INDUSTRIAL DOMESTIC MARKET. OR we can focus on Eskom alone.

ESKOM (lower quality coal, exclusively for power generation)

Since the completion of the feasibility study last year, the price being paid by Eskom for Central Basin coal has increased appreciably with every indication that further price rises will happen

Eskom is building and commissioning the 3rd and 4th largest coal fired power stations in the world on the basis that they are being configured to burn lower quality coal i.e. suppliers will be able to extract more product (at better prices) from their existing reserves.

INDUSTRIAL DOMESTIC MARKET (higher quality coal, mainly used in furnaces)

With this market centred on Johannesburg, our location only 50 miles away, gives us a freight advantage equivalent to US$9/t over the majority of our competitors

Competition from Eskom and export markets has increased prices paid by the Industrial Domestic Market such that the net return received in this market is currently at a premium to the net return were we to sell FOB Richards Bay for export

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Moabsvelden: The Eskom market

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Moabsvelden

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Cornerstone Project: Moabsvelden

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Project Snapshot (Bankable Feasibility Study Results)

Resource: 66 mt

Reserve: 44 mt

Annual coal sales

Industrial & Eskom 1.7mt

or

All Eskom 2.1mt

Moabsvelden, with Kendal power station in the background

Project Snapshot (Bankable Feasibility Study Results*)

Estimated cost to build $29 mil

Annual Forecast Sales: $69 mil

Annual Forecast operating costs: $39 mil

Annual Forecast Cash flow: $22 mil

Project NPV: $146 mil

*Based on industrial & Eskom sales; adjusted for current coal prices & foreign

exchange rates; NPV discount rate: 8%

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Moabsvelden Colliery - Attributes

Technically straight forward; entirely open cast and simple processing with long life

Strategically located for its primary and middlings markets

Free of infrastructure constraints

Manageable capital budget

Already passed independent technical review on behalf of banks

Bankable

No identified impediments to development

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66 million tonnes, surrounded by existing collieries, located near Delmas in South

Africa’s Central Basin, 15 year mine life

Only 50 miles from Johannesburg/ Pretoria the centre of the SA industrial market

and in close proximity to most Eskom power stations

All product is sold at the mine gate. Sales comprise by value: SA industrial buyers

(2/3) and Eskom (1/3) or we could go 100% Eskom. No intention to export our

premium product via RBCT as we get superior net prices from the industrial

market

US$29m – achievable because no expensive underground development, simple

plant and use of mining contractors plus no infrastructure costs

The bankable feasibility study has undergone a thorough independent technical

review by independent consultants on behalf of the South African banks

We have received and accepted a firm, credit approved offer of finance from South

Africa’s largest bank

Surrounded by existing coal mines, no sensitive river catchments, no habitation or

developments on the site

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Mine Life of 15 years

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The mine has a life of 15 years during which

time it will generate revenue in excess of US$ 1

billion at current coal prices and exchange rates

All mine production is by means of a single box

cut, thereby avoiding the need for expensive

development in future

The coal reserves cover the entire project site,

save for the south-west corner where the

processing plant is to be located

Simple mining and processing routes with highly

competitive contractor market.

Ability to work multiple faces in the pit to ensure

ROM supply.

Secure title, with a pro-mining culture and

attractive tax regime.

No restrictions on earnings repatriation.

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Strategic Cornerstone: Thebe Investment

Corporation

• Subject to Government approval, Thebe is investing

US$7mil directly into Neosho to secure a 30% stake in

the Moabsvelden Project, (a 40% premium to the

market)

• Thebe Investment Corporation is a Level 1 Broad-Based

Black Economic Empowerment (“BBBEE”) contributor,

established before the advent of democratic rule with the

assistance of leaders of the African National Congress

• Thebe manages in excess of US$600m, with a specific

capital allocation dedicated to investing in green fields

exploration and pre-production natural resources

projects.

• Thebe brings with it Regulator and Eskom connections,

an enhanced in country presence as well as strategic

growth opportunities.

100% Ownership

70% Ownership

30% Ownership

Xceed Resources Limited

(ASX Listed)

Project

Company

Thebe Investment

Corporation

Moabsvelden Project

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Xceed Corporate Snapshot

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Capital Structure and Financials

Board & Management

Patrick O’Connor (Non-Executive Chairman) Deputy Chairman of Perilya Limited, formerly MD of Macraes Mining and CEO of Oceana Gold

Limited.

Ian Culbert (Managing Director) Former MD of Tritton Resources Limited and Lafayette Mining Limited, Ian has 20 years experience in the

resources industry.

Stephen Belben (Finance Director) Former national partner of Ernst & Young’s Mineral & Energy Industry Group, Stephen has 25 years of

experience in the resources industry operating in Africa and Asia. He was formerly the Finance Director of Auridiam Limited.

Boetie Jewaskiewitz (In-Country General Manager) Boetie is a mining engineer with over 20 years experience in the South African coal sector.

Formerly, Mine Manager Zululand Anthracite Colliery.

#

Ordinary Shares on Issue 115,500,435 Market Capitalisation $14,000,000

Performance Shares on Issue 25,000,000 Debt $0

Options on Issue 0 Cash $4,500,000

Total Securities on Issue 140,500,435

Shareholder Distribution

Top 20 Shareholders 60%

Board & Management 31%

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Bank Funding

Fully approved project development funding by STANDARD BANK.

Standard Bank is the largest financial institution in South Africa as well as the largest bank in Africa

Facilities secured:

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Facility Principal Rolled up

Interest

Total Tenor

Project

Development

$20 million $2.8 million $ 22.8 million 5 years from

drawdown

Cost Overrun $ 1.6 million $ 0.2 million $ 1.8 million 3 years from

drawdown

Exclusive of the cost over run facility and rolled up interest, this represents a

67% level of debt funding which is above the norm for a greenfields project. This

is a testament to the strength of the project.

The facility is fully approved by the Bank’s Credit Committee and follows on from

an exhaustive due diligence process carried out by independent technical

consultants on behalf of the Bank

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Project Funding & Timing

FUNDING:

Cost of building Moabsvelden US$ 29 m

Funded by: Standard Bank senior debt US$ 20 m

Thebe US$ 7 m

XCD (from existing treasury) US$ 2 m

The project’s construction costs are already fully funded, but we will look to raise working capital and non-development funds

TIMING:

Commence fabrication of coal handling and processing plant 2013

First production 2014

Timing is dependant on permitting. All applications for various regulatory approvals have been submitted and are at an advanced stage of processing.

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Growth of Reserves and Resources

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Project Measured

Resources

Indicated

Resources

Inferred

Resources

Total Resources

Moabsvelden 63 745 154 2 393 471 - 66 138 625

Project Proven Reserves Probable Reserves Total Reserves

Moabsvelden 30 708 330 13 160 713 43 869 043

Project Measured

Resources

Indicated

Resources

Inferred

Resources

Total Resources

Moabsvelden 63 745 154 2 393 471 - 66 138 625

Roodepoort 9 860 000 13 590 000 5 850 000 29 300 000

Bankfontein - 5 935 000 13 829 000 19 764 000

Totals 73 605 154 21 918 471 19 679 000 115 202 625

2011

2012

2012

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Disclaimer & Attribution

This document has been prepared by Xceed Resources Limited (“XCD”) in connection with providing an overview to interested ana lysts and investors.

The presentation is being provided for the sole purpose of providing background information to enable recipients to review the business activities of XCD.

This presentation is thus by its nature limited in scope and is not intended to provide all available information regarding XCD. This presentation is not

intended as an offer, invitation, solicitation or recommendation with respect to the purchase or sale of any shares. This presentation should not be relied

upon as a representation of any matter that a potential investor should consider in evaluating XCD. Prospective investors should make their own

independent evaluation of an investment in XCD.

Any statements, estimates, forecasts or projections with respect to the future performance of XCD contained in this presentation are based on

assumptions made by XCD’s management and about circumstances and events that have not yet taken place. Such statements, estimates, forecasts or

projections involve significant elements of subjective judgement and analysis which, whilst reasonably formulated, cannot be guaranteed to occur.

Accordingly no representations are made by XCD or its directors, officers, agents, advisers or employees as to the accuracy of such information; such

statements, estimates, forecasts or projections should not be relied upon as indicative of future value or as a guarantee of value or future results; and

there can be no assurance that the projected results will be achieved. XCD accepts no obligation to correct or update anything in this presentation.

The Coal Resources and Reserve estimate for the Moabsvelden thermal coal project is based on Coal Resource estimates compiled by Mr Kobus

Dippenaar, Pr.Sci.Nat, B.Sc Hons (Geology), GSSA, who is a senior coal geologist at Gemecs (Pty) Ltd who have consulted to the Company. Mr

Dippenaar is a member in good standing of the South African Council for Natural Scientific Professions (SACNASP No. 4090079/94) as well as a

member of the Geological Society of South Africa. Both organisations are Recognised Overseas Professional Organisations. Mr Dippenaar has sufficient

experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as

a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration, Mineral Resources and Ore Reserves’. Mr

Dippenaar consents to the inclusion in the ASX release of the matters based on his information in the form and context in which it appears.

The Coal Reserve estimate was prepared by Mr Van Reenen Jewaskiewitz, who is a registered Professional Mining Engineer with the Engineering

Council of South Africa (ECSA) (a Recognised Overseas Professional Organisation) and has a Mine Managers Certificate of competency for coal mines.

He has more than 25 years’ experience in the South African coal and minerals industries. Mr Jewaskiewitz is a full time employee of Xceed Resources

Limited and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he

is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exp loration, Mineral Resources

and Ore Reserves’. Mr Jewaskiewitz consents to the inclusion in the ASX release of the matters based on his information in the form and context in

which it appears.

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Contact Us

Please feel free to contact either of our representatives below:

Ian Culbert

Managing Director

iec@xceedresources.com.au

Telephone: +61 8 9226 0329

Mobile: +61 412 348 277

Stephen Belben

Finance Director

sfb@xceedresources.com.au

Telephone: +61 8 9226 0329

Mobile: +61 419 907 094

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