Zambezi Resources Limited

Kangaluwi Copper Project Investor Presentation

February 2012

Australian Stock Exchange ASX : ZRL

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Slide 2

Executive Summary

Current resource for Kangaluwi Copper Project (KCP), stands at 23.4 Mt grading 0.85% Cu for 200,575 tonnes of contained copper.

Anticipated additional resources from all Prospects. Infill drilling has recently been completed.

The Company has secured a Convertible Note Facility of AUD$10 million in two tranches of AUD$5 million each carrying a coupon of 10% pa of which Tranche A for AUD$5 million has been drawn down.

The Company raised $2.1 million by way of a 1:3 Rights Issue at a price of 1 cent per share and the directors will place the shortfall of $2.1 million to selected parties.

Funds raised will be applied towards working capital, exploration and development costs associated with the Kangaluwi Copper Project, towards a feasibility study for project development.

Company is aiming for final feasibility study in 2012 and construction in 2013.

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Corporate Snapshot

Directors and Senior Management

David Vilensky Non-Exec Chairman Frank Vanspeybroeck Chief Executive Officer Pierre Malherbe Chief Financial Officer Richard Procter Non-Exec Director Emmanuel Heyndrickx Non-Exec Director Simon Durack Non-Exec Director Marinko Vidovich Project Manager Robert McPherson Country Manager Geology

Capital Structure (as at 21/02/2012)

Share Price AUD 1.1 cents Market Cap AUD $16.2 million Ordinary Shares 1.47 billion Options (unlisted) 165.5 million Cash AUD $2.6 million Debt (Convertible Note) AUD $5.0 million

Top Holders (as at 21/02/2012)

RBC Dexia Investor Services Australia Nominees 369,742,674 25.12 % Lando Pty Ltd 51,555,555 3.50 % JP Morgan Nominees Australia Ltd Cash Income A/c 32,707,241 2.22 % JP Morgan Nominees Australia Ltd 30,199,833 2.05 % Glencore Investments BV 29,162,062 1.98 % Astron Limited 29,000,000 1.97 % Camarri Nominees Pty Ltd Mr Andrew Malcolm Tudor Burne

19,722,222 19,500,000

1.34 % 1.32 %

Voyagers Rentals Limited 17,881,801 1.21 % Southo Investments Limited 17,841,935 1.21 % Woodcross Holdings Pty Ltd 16,500,000 1.12 %

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Slide 4

Tenement Map

100% 49%

100% 100%

100%

ZAMBEZI RESOURCES LIMITED (ZRL)

ASX Listed

Chalimbana Resources Limited Zambia

Uranium Project 5 PL’s for 2,756 km2

Mwembeshi Resources Limited Zambia

Gold/Copper Projects

Kangaluwi Copper Project 1 ML for 245 km2

(Chisawa-Kangaluwi-Kalulu) 3 PL’s for 963 km2

Mpande Limestone Limited Zambia

Limestone Project 2 PL’s for ± 185 km2

Cheowa Resources Limited Zambia

JV Copper Project with Glencore (51%)

3 PL's for 663 km2

Figure 1: Tenement Map

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Slide 5

Zambia Government

Multiparty democracy since 1991 with elections held every 5 years. Michael Chilufya SATA was elected president on the 20th September 2011. Next election due 2016.

Law English Common Law and Customary Law The Mine and Mineral Act (1995) Prospecting Licence period of 2 years renewable Mining Licence period of 25 years Favourable tax laws that allow write-off of capital mining plants and pre-production expenses in the year the costs were incurred.

Mining Culture Extensive history of mining and exploration, dating from the early part of 20th century Mining and exploration well understood by the Government and encouraged by authorities Excellent permitting system based on Cadastral system Secure title to mining rights Zambia is ranked as the world's seventh largest producer of copper, generating 3.3% of the western world’s production

Economy Real GDP growth of 7.6% Agriculture 21.5% Industry 34.5% Services 44.1% Inflation 8.5% Industrial growth production rate 11.2% Exports – copper/cobalt 64%

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Zambia

Infrastructure Kariba Hydroelectric scheme 1800MW, reticulated directly to Copperbelt. Excellent supplies from major rivers – Kafue, Luangwa, Zambezi plus Kariba Dam. Sealed roads and key rail links through Lusaka and the Copperbelt. Major international airport in Lusaka serviced regularly by a number of international airlines, local airline services regional routes and domestic charter companies support air travel within Zambia. Zambia has a well-established infrastructure of domestic and international telecommunications.

Kariba Hydroelectric Dam Scheme

Major International Airport

COPPERBELT

Figure 2: Project Location Copper Smelters

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Slide 7

Kangaluwi Copper Project Overview

Introduction The Kangaluwi Copper Project (100% owned) comprises a 245 km2 granted Mining Licence 15547-HQ-LPL, located approximately 180 km east of Lusaka.

Map of Soil Geochemical Anomalies

Figure 3: Mining Licence

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Slide 8

Geological Setting

Mineralisation at the Kangaluwi Copper Project is hosted by intensely deformed and foliated metasedimentary rocks. These form part of the Zambezi supracrustal sequence located within the Zambezi belt of southern Zambia and are of Neoproterozoic age (~830 Ma). They occur north of the Zimbabwe Archean Craton and form sections of the Irumide belt. The licence falls south east of the celebrated Lufilian Arc, which hosts celebrated deposits of the Zambian copper belt.

Mineralisation is structurally controlled within a series of complex regional shears. The metasedimentary rocks of the Kangaluwi-Chisawa copper prospects trend roughly east-southeast and dip shallowly south-west, between 30-40 degrees. The host rocks for copper mineralisation include biotite-muscovite schists, garnet-biotite-muscovite schists, amphibolites, epidosites, quartzite, pegmatite and graphitic shale. These lithological units are often interbedded and in places may display gradational contacts.

Base metal mineralisation at Kangaluwi and Chisawa comprises chalcopyrite, bornite, with malachite, azurite and chrysocolla an upper oxide zone.

Figure 4: Geological Terrain For

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Exploration History

2005 Soil geochemical sampling programs carried out covering an area of 180km2 identified six prospects:-

- Kangaluwi, Chisawa, Kalulu, Imboo, Moya and Chiwuyu.

2 key structures with continuous copper anomalies > 100ppm over 28km:- - Kangaluwi/Kalulu/Chisawa trend over a strike length of 19km - Chisawa/Imboo trend over a strike length of 9km

2006 24 RC holes for 2,477m were completed at Kangaluwi over an 800m strike length and at Chisawa over a

strike length of 2,600km

2007 15,459m of RC drilling and 4,469m of diamond drilling were completed at Kangaluwi over a 3km strike

length.

2008 - 71 RC holes for 17,058m and 18 DD holes for 5,372m were completed at Kangaluwi

- 63 RC holes for 10,011m at Chisawa - 20 RC holes for 2,560m at Kalulu

VTEM survey of 1,810 line km over Kangaluwi Copper Project.

Metallurgical testwork indicates favourable metallurgical characteristics and soft ore. Bond work index of 11.5 kW per hour/t. Initial floatation tests indicates recoveries in excess of 9% Cu.

2010 Based on previous exploration the resource for Kangaluwi Copper Project stands at 23.4 Mt grading 0.85%

Cu for 200,575 tonnes of contained copper.

Granting of a Large Scale Mining Licence over the Kangaluwi Copper Project covering 145 km2 for a period of 25 years

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Mineral Resource Estimate

Based on previous exploration, an Indicated Mineral Resource of 8.9 Mt grading at 0.78% Cu for 69,000 tonnes of contained copper has been estimated at the Kangaluwi prospect. At Chisawa, an Inferred Mineral Resource of 14.5 Mt, has been estimated grading 0.90% Cu for 130,824 tonnes of contained Cu. Table 1: Global Indicated and Inferred Mineral Resource Estimate - Kangaluwi Copper Project The combined JORC-compliant resources estimates for Kangaluwi and Chisawa total 23.4 Mt, grading 0.85% Cu for 200,575 tonnes of contained copper. At this stage, these estimates do not include any resources from the Kalulu prospect, with ~27% of the 28 km prospective strike length drill tested.

Prospect

Measured Indicated Inferred Totals Tonnes

(t) Grade (% Cu)

Tonnes (t)

Grade (% Cu)

Tonnes (t)

Grade (% Cu)

Tonnes (t)

Grade (% Cu)

Kangaluwi Chisawa

- -

- -

8,907,000 -

0.78 -

- 14,535,983

- 0.90

8,907,000 14,535,983

0.78 0.90

Totals - - 8,907,000 0.78 14,535,983 0.90 23,442,983 0.85

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2011 Exploration Results Kalulu Prospect

1. Introduction A total of 44 holes were drilled at Kalulu for 9,350m. Kalulu’s strike length of 1.2km was drilled at 100m intervals, between and along RC drill sections. This will result in a 50m x 50m grid drill coverage designed to begin the Resource Classification process (Figure 5). Assay results and depth of intersection have indicated that mineralisation is still open down dip and across strike.

Figure 5: Kalulu 2011 Drilled Holes

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2011 Exploration Results Kalulu Prospect

2. Results

Section Hole ID Intercept

10,100E KLUDD0005 14.0m @ 1.00% Cu from 87m

10,150E KLUDD0006 10.0m @ 1.13% Cu from 78m

10,200E KLUDD0007 21.0m @ 0.79% Cu from 44m

10,300E KLUDD0011 10.0m @ 1.20% Cu from 194m

10,300E KLUDD0038 16.0m @ 0.70% Cu from 199m

10,400E KLUDD0017 5.0m@ 1.07% Cu from 94m

10,400E KLUDD0015 8.0m @ 1.28% Cu from 113m

10,550E KLUDD0018 9.0m @ 0.90% Cu from 68m

10,600E KLUDD0020 3.5m @ 1.49% Cu from 92m

10,750E KLUDD0025 6.0m @ 1.26% Cu from 41m

10,850E KLUDD0045 43.0m @ 0.53% Cu from 112m includes 13m @ 1.00% Cu from 112m

10,900E KLUDD0030 43.0m @ 0.43% Cu from 81m

10,950E KLUDD0034 19.0m @ 0.51% Cu from 85m includes 12m @ 0.71% Cu from 87m

11,000E KLUDD0035 15.0m @ 0.51% Cu from 51m includes 10.0m @ 0.72% from Cu 55m

Figure 6: Section 10 100E

Figure 7: Section 10 850E

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2011 Exploration Results Chisawa Prospect

1. Introduction

Exploration activity at Chisawa has included the drilling of 40 holes for 8,631m over a 3km mineralized zone. With collars designed at 200m intervals, a 100m x 100m grid drill coverage was realised when combined with existing RC drilling, while a deep drilling program identified extensional mineralized horizons. Located within a series of complex regional shears, diamond drilling has demonstrated potential for down dip extensions at Chisawa. It has also identified increasing sulphide zonation with depth, with the presence of chalcopyrite-bornite mineralisation.

Figure 8: Chisawa 2011 Drilled Holes

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2011 Exploration Results Chisawa Prospect

2. Results

Section Hole ID Intercept

10,200E CHSDD0001 7.0m @ 1.14% Cu from 145.0m

10,400E CHSDD0005 4.0m @ 1.09% Cu from 235.0m

10,400E CHSDD0006 11.0m @ 1.25% Cu from 131.0m

10,400E CHSDD0008 25.0m @ 1.27% Cu from 159.0m

10,600E CHSDD0007 5.0m @ 1.10% Cu from 194.0m

10,800E CHSDD0012 4.0m@ 1.22% Cu from 81.0m

11,000E CHSDD0013 10.0m @ 0.77% Cu from 40.0m

11,000E CHSDD0013 3.0m @ 1.49% Cu from 135.0m

11,000E CHSDD0014 5.0m @ 1.58% Cu from 87.0m

11,200E CHSDD0016 5.0m @ 1.40% Cu from 102.5m

11,600E CHSDD0022 22.0m @ 0.64% Cu from 16.0m

11,600E CHSDD0020 16.0m @ 1.34% Cu from 58.0m

11,600E CHSDD0021 23.0m @ 1.08% Cu from 117.0m

11,700E CHSDD0024 17.0m @ 1.08% Cu from 53.0m

11,800E CHSDD0025 18.0m @ 1.12% Cu from 17.0m

11,800E CHSDD0027 12.0m @ 0.83% Cu from 148.0m

12,100E CHSDD0028 11.0m @ 0.90% Cu from 106.0m

12,100E CHSDD0029 15.0m @ 0.79% Cu from 46.0m

12,200E CHSDD0030 10.0m @ 0.94% Cu from 99.0m

12,300E CHSDD0033 6.0m @ 1.37% Cu from 246.0m

12,500E CHSDD0031 7.0m @ 1.22% Cu from 74.0m

Figure 9: Section 11 600E

Figure 10: Section 12 000E

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2011 Exploration Results Kangaluwi Prospect

1. Introduction A total of 10 DD holes were drilled at Kangaluwi for 4,020m over a 1km strike length to test the down dip extension of the ore body (Figure 11).

Figure 11: Kangaluwi 2011 Drilled Holes

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2011 Exploration Results Kangaluwi Prospect

2. Results Assay results pending

Figure 12: Section 786 800E

Figure 13: Section 787 100E

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2012 Objectives

Q1 Completion of diamond core sampling and logging

Auditable data base by AMC Consultants Pty Ltd meeting JORC Code requirements

Q2 Quantitative Group Pty Ltd (QG) to report on an updated Mineral

Resource estimate for the Kangaluwi Copper Project Prefeasibility studies including metallurgical testwork, hydrogeology and geotechnical desktop studies and global multi element Resource Calculations Drilling program for geotechnical, hydrogeology, sterilisation and resource definition

Q3-Q4 Bankable Feasibility Studies

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Summary

Based on 57,400m of historic drilling the combined resource from Kangaluwi and Chisawa Prospects stands at 23.4 Mt grading 0.85% Cu for 200,575 tonnes of contained copper. The 2011 22,000m drilling program will establish a new resource estimate for copper and gold, as a base for the BFS. Proceeds from the Rights Issue and the Convertible Note Facility will provide the Company with valuable funding towards the feasibility study for the development of the Kangaluwi Copper Project.

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This presentation has been prepared by Zambezi Resources Limited (ZRL) for the sole purpose of providing financial, operational and other information to enable recipients to review the business activities of ZRL. This presentation is not intended as an offer, invitation, solicitation or recommendation with respect to the purchase or sale of any securities. Nothing in this presentation should be construed as financial product advice, whether personal or general, for the purposes of section 766B of the Corporations Act 2001. This presentation may contain forward looking information, statements or forecasts that are subject to risks and other factors outside the control of ZRL. Any forward looking, information, statements of forecasts provided is/are considered reasonable in the circumstances and has/have been prepared in good faith and with all due care, but may differ materially from actual future results and performance. ZRL and its affiliates or any of its directors, agents, officers or employees do not make any representation or warranty, express or implied, as to or endorsement of, the accuracy or completeness of any information, statements or forecasts contained in this presentation, and they do not accept any liability for any statement made in, or omitted from, this presentation. This presentation should not be relied upon as a representation of any matter than an investor should consider in evaluating the business activities of ZRL. Investors must make and rely upon their own enquiries and due diligence in relation to the subject of this presentation and an investment in ZRL. A potential investor must assess the merits or otherwise of an investment in ZRL having regards to their own personal, financial and other circumstances. The information in this report that relates to Exploration Results and Mineral Resources is based on information compiled by Ms Chiedza Nematadzira and Borniface Nquni, of Caracle Creek Consulting Zambia. Both are members of the Australian Institute of Geoscientists and have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as Competent Persons as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves and who consent to the inclusion in this report of the matters based on the information in the form and context in which it appears. The information in this announcement that relates to Exploration Results is based on information compiled by Geoffrey Booth, Consulting Geologist. Geoffrey Booth is employed as a consultant for Zambezi Resources and is also a Fellow of the Australasian Institute of Mining and Metallurgy 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 Exploration Results, Mineral Resources and Ore Reserves”. Geoffrey Booth consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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