NEW NAMIBIA CORPORATION CORRIDOR CONCEPT: RAILWAY, POWER / BULK SERVICES, COAL, COPPER, OIL PIPELINE / REFINERY PLANT, URANIUM BENEFICIATION, IT / TELECOMMUNICATIONS KAZUNGULA TSUMEB SOWA COAL GOBABIS MMAMABULA KANG ELLISRAS (WATERBURG) MARIENTAL LOBATSE NORTHERN CAPE NEW BOTNAM COMPANY NEW NAMIBIA CORPORATION

NEW NAMIBIA CORPORATION 2 NBC JV NNC New BOTNAM Company New Namibia Corporation (Pty) Ltd Exclusive Partners for: China Railway Construction Corporation (CRCC)** China National Nuclear Corporation (CNNC) **Built China/Tibetan Railway NEW BOTNAM COMPANY NEW NAMIBIA CORPORATION

NEW NAMIBIA CORPORATION 3 Other Projects Completed: West Harbour Qingdao Road, Bridges & Tunnelling NEW BOTNAM COMPANY NEW NAMIBIA CORPORATION

NEW NAMIBIA CORPORATION 4 Project Background Botswana has 220-Billion tons of Coal Reserves centered around Mmamabula, near Mahalapye Botswana also has huge potential for Copper mining at several identified sites Botswana, currently a land-locked country with no economical export routes Botswana must link to a harbour The proposed railway corridor offers an opportunity to create an economical export / import route NEW BOTNAM COMPANY NEW NAMIBIA CORPORATION

NEW NAMIBIA CORPORATION 4 Project Background The only economical connection would be by rail The extraction of coal and copper could provide ‘anchor traffic’ to justify the implementation of the railway line The proposed rail line could provide a ‘corridor’ with numerous economic and social benefits NEW BOTNAM COMPANY NEW NAMIBIA CORPORATION

NEW NAMIBIA CORPORATION 5 Project Background Access via South Africa (Richards Bay) is congested Limited expansion potential at Walvis Bay due to the tourism / fishing industry Luderitz, which has favourable deep-sea conditions at Shear Water Bay is thus preferred as a bulk terminal NEW BOTNAM COMPANY NEW NAMIBIA CORPORATION

NEW NAMIBIA CORPORATION 6 Project Outline The complete double track, electrified, heavy gauge rail route, from Selebi Phikwe - Windhoek - Walvis Bay / Luderitz is approximately 2600km, and runs parallel to and supports the Trans-Kalahari corridor The proposed rail route is in alignment with SADC policies to support regional economic growth Deep-sea bulk terminal harbour at Luderitz The system must be able to transfer large volumes of coal / copper per annum, (1km long trains, weighing 5000 tons, leaving every 20 minutes) NEW BOTNAM COMPANY NEW NAMIBIA CORPORATION

NEW NAMIBIA CORPORATION 7 Double-Track Electrified Railway NEW BOTNAM COMPANY NEW NAMIBIA CORPORATION

NEW NAMIBIA CORPORATION 8 The Railway Corridor The Railway Corridor should accommodate: Crude oil pipeline Power line Tele-communication / IT line Bulk services line for the benefit of: - The macro and micro economy of Botswana - New township development - Upgrading of existing infrastructure NEW BOTNAM COMPANY NEW NAMIBIA CORPORATION

NEW NAMIBIA CORPORATION 9 The Corridor Route The Railway Corridor route takes advantage of otherwise neglected and isolated areas, for the benefit of better connectivity, bulk infrastructure and nodal development Route 1: Coal Fields - Selebi Phikwe – Gaborone - Lobatse – Kang – Gobabis – Windhoek – Walvis Bay Route 2: – Windhoek – Marientel – Bethanie – Luderitz NEW BOTNAM COMPANY NEW NAMIBIA CORPORATION

NEW NAMIBIA CORPORATION 10 Developing The Corridor Route Proposed Rail Selebi Phikwe Note:- Track will be Standard Gauge (4’ 8 1/2”) Building Speed = 100Km/ day COPPER COAL NEW BOTNAM COMPANY NEW NAMIBIA CORPORATION

NEW NAMIBIA CORPORATION 11 Developing The Corridor Route RAILWAY CORRIDOR Proposed Rail Power Line / Bulk Services / IT / Tele-comm / Uranium Crude Oil Line Selebi Phikwe COPPER COAL NEW BOTNAM COMPANY NEW NAMIBIA CORPORATION

NEW NAMIBIA CORPORATION 12 Developing The Corridor Route RAILWAY CORRIDOR Proposed Rail Power Line/ Bulk Services / IT / Tele-comm / Uranium Crude Oil Line Power Station Selebi Phikwe COPPER COAL NEW BOTNAM COMPANY NEW NAMIBIA CORPORATION

NEW NAMIBIA CORPORATION 13 Developing The Corridor Route RAILWAY CORRIDOR Proposed Rail Power Line / Bulk Services / IT / Tele-comm / Uranium Crude Oil Line Power Station Maint. & Training Hub Selebi Phikwe COPPER COAL NEW BOTNAM COMPANY NEW NAMIBIA CORPORATION

NEW NAMIBIA CORPORATION 14 Expansion of The Corridor Route Mmamabula – Ellisras (Lephalale) link from Botswana to South Africa will facilitate extraction of coal from the Waterburg Area (in South Africa) Mosetse – Kazungula / Livingstone link from Botswana to Zambia will facilitate export / import of goods to / from Central Africa Expansion of Railway Corridor from Windhoek, via Tsumeb, to Angola, which will assist in upgrading internal infrastructure / promoting Angolan export / import Expansion of Railway Corridor from Luderitz to the Northern Cape (which is rich in mineral resources), will provide an alternate export route NEW BOTNAM COMPANY NEW NAMIBIA CORPORATION

NEW NAMIBIA CORPORATION 15 Expansion of The Corridor Route RAILWAY CORRIDOR Proposed Rail Power Line / Bulk Services / IT / Tele-comm / Uranium Crude Oil Line Power Station Maint. & Training Hub Selebi Phikwe 2 1 COPPER 3 COAL 4 Expansions: Angola -------------------- Zambia ------------------- Zimbabwe --------------- South Africa (East) --- South Africa (North) - 1 2 3 4 (WATERBURG) 5 (N. CAPE) 5 NEW BOTNAM COMPANY NEW NAMIBIA CORPORATION

NEW NAMIBIA CORPORATION 16 Expansion of The Corridor Route Advantages of implementation: Gives Botswana ability to attract regional tourist traffic between countries to the North, East and South Mobilizes traffic to the region’s Atlantic and Indian Ocean points Opens up access to major centers of population and production Disadvantages of non-implementation Loose opportunity to make Botswana the central pivot to developing a Southern African Corridor (Example: Commissioning of Beit Bridge - Bulawayo Rail Link 1999 – Botswana lost 70% of traditional transit traffic) NEW BOTNAM COMPANY NEW NAMIBIA CORPORATION

NEW NAMIBIA CORPORATION 17 Project Benefits in Perspective Botswana and Namibia will benefit from the ‘Coal Tree’ Industry NEW BOTNAM COMPANY NEW NAMIBIA CORPORATION

NEW NAMIBIA CORPORATION 17 Project Benefits in Perspective Francistown may benefit from a Copper Refinery Botswana will benefit from the Copper industry and its associated by-products: Electrical cables Electric wires Cooking pots / pans Pipes Tubes Automobile parts Pigments Preservatives Brass / bronze Sulphuric acid Proposed Copper Refinery, Francistown NEW BOTNAM COMPANY NEW NAMIBIA CORPORATION

NEW NAMIBIA CORPORATION 18 Project Benefits in Perspective Selebi Phikwe retains a vibrant economy via employment creation with proposed new oil refinery NEW BOTNAM COMPANY NEW NAMIBIA CORPORATION

Project Benefits in Perspective 19 Project Benefits in Perspective URANIUM BENEFICIATION OPPORTUNITY FOR NAMIBIA AND BOTSWANA Background: Gabon & U3O8: Gabon has exported over 100 000 Tonnes since 1970s Mines are now exhausted Gabon was paid in the African Franc 21

Project Benefits in Perspective 20 Project Benefits in Perspective URANIUM BENEFICIATION OPPORTUNITY FOR NAMIBIA AND BOTSWANA Current Situation: China needs uranium Namibia & Botswana have uranium but wants to add value (beneficiate) China has U3O8 to UF4 conversion technology NNC & NBC are partners for CNNC in southern Africa 22

URANIUM BENEFICIATION OPPORTUNITY FOR NAMIBIA AND BOTSWANA 21 URANIUM BENEFICIATION OPPORTUNITY FOR NAMIBIA AND BOTSWANA “Add UF4 Conversion* to existing U3O8 plant” PROPOSAL: U3O8 U3O8 to UF4 Ore Current Export as U3O8 Proposed Export as UF4 *Estimated conversion cost USD2/Kg - Sale of conversion to UF4 at USD7/Kg plus value of U 23

URANIUM BENEFICIATION OPPORTUNITY FOR NAMIBIA AND BOTSWANA 22 URANIUM BENEFICIATION OPPORTUNITY FOR NAMIBIA AND BOTSWANA Fluorine Production Powdered Fluorspar H2SO4 Potassium Fluoride + Hydrogen Fluoride + - F2 Fluorine gas Electrolysis Cells H2 Potassium Fluoride + Hydrogen Fluoride Distillation Column Potassium Fluoride + Hydrogen Fluoride Hydrofluoric Acid 24

URANIUM BENEFICIATION OPPORTUNITY FOR NAMIBIA AND BOTSWANA 23 URANIUM BENEFICIATION OPPORTUNITY FOR NAMIBIA AND BOTSWANA H2 HF KILN U3O8 U3O8 + 2H2 = >3UO2+2H2O UO2 UF4 H2 & HF is either: Made locally Or imported from RSA UO2 + 4HF ===> UF4 + 2H2O 25

URANIUM BENEFICIATION OPPORTUNITY FOR NAMIBIA AND BOTSWANA 24 URANIUM BENEFICIATION OPPORTUNITY FOR NAMIBIA AND BOTSWANA U3O8 “Yellow Cake” Processed in France UF6 Conversion Fabrication 99% U238 0.7%U235 4% U235 96% U238 Enrichment EXPORT From Africa 26

URANIUM BENEFICIATION OPPORTUNITY FOR NAMIBIA AND BOTSWANA 25 URANIUM BENEFICIATION OPPORTUNITY FOR NAMIBIA AND BOTSWANA IN AFRICA $40/lb U3O8 “Yellow Cake” Processed in Africa Sell $7/Kg 5000T p.a Cost $2/Kg Profit $25M p.a UF4 Conversion UF6 Conversion Processed in France UF6 Enrichment Fabrication 27

NEW NAMIBIA CORPORATION 26 ESTIMATE PROJECT COST / FDI Cost of Railway line (@1.5M/km@2600km) 3.9B 31.2B 31.2B Rolling Stock 0.6B 4.8B 4.8B Power Station 2.0B 16B 16B Harbour 1.0B 8B 8B Coal Mine 1.5B 12B 12B Uranium Beneficiation 0.9B 7.2B 7.2B Railway ‘Corridor’ 1.3B 9.6B 9.6B Miscellaneous 0.8B 5.6B 5.6B Total 12B 60B 60B Description U$ P N$ NEW BOTNAM COMPANY NEW NAMIBIA CORPORATION

NEW NAMIBIA CORPORATION 27 ESTIMATE PROJECT INCOME Coal / Copper Export Levy 0.25B 2.0B 2.0B Transport Levy 0.25B 2.0B 2.0B Tourism Levy 0.10B 0.8B 0.8B General Cargo Levy 0.30B 2.4B 2.4B Oil Revenue Levy 0.25B 2.0B 2.0B Uranium Revenue 0.10B 0.8B 0.8B Bulk Services Revenue (Kept low to the benefit of locals) 0.05B 0.4B 0.4B Taxation (Coal, Copper, Oil, Uranium & Sec. Industries) 0.45B 3.6B 3.6B Total (Botswana & Namibia) 1.75B 14B 14B Description U$ P N$ NEW BOTNAM COMPANY NEW NAMIBIA CORPORATION

NEW NAMIBIA CORPORATION 28 Employment Opportunities General management (at all levels) 62 33 95 Operators (at all levels) 143 77 220 Yard staff 140 -- 140 Workshop staff 60 20 80 General labour 60 60 120 Loading / off-loading Staff 30 30 60 Port staff 475 -- 475 Bulk service infrastructure (new / upgrade) 50 150 200 Municipal services 40 80 120 Maintenance / training / skills 45 45 90 Financial / legal 15 15 30 Technical 30 30 60 Coal mining industry / Uranium Benef. 5500 8000 13500 Oil refinery 50 3450 3500 Tele-communications / IT 55 95 150 New township development 350 1000 1350 Supporting private / public services 450 1050 1500 Secondary industries / employment 6500 8500 15000 Control / monitoring systems 75 75 150 Total 15630 22710 38340 Employment opportunity Namibia Botswana Cumulative NEW BOTNAM COMPANY NEW NAMIBIA CORPORATION

NEW NAMIBIA CORPORATION 29 Way Forward Request support / consent from Governments to Build, Operate and Transfer (BOT) as Turnkey Projects: Phase 1 (which is immediate) Railway & Harbour Bulk services / Tele / IT communications / Oil Pipeline Fossil power stations / Power line Uranium beneficiation Phase 2 Oil refinery / Copper refinery Development of new towns Training facilities & maintenance operations Development corridor / nodal developments NEW BOTNAM COMPANY NEW NAMIBIA CORPORATION

NEW NAMIBIA CORPORATION 30 Governmental Aspects Build, Operate & Transfer (BOT) Turnkey Projects And will use Local Labour (LIP) Investment Incentives or Privileges Required: No guarantees or financial aid from Government Offer support for Project: Request Government issues letter giving consent and supporting plans for railway, power stations, harbour, uranium benefications, crude oil pipeline and refinery, bulk services and IT / Tele-communications NEW BOTNAM COMPANY NEW NAMIBIA CORPORATION

NEW NAMIBIA CORPORATION 31 Implementation Plan Principal approval from Government Financing from NNC / NBC Pre-feasibility study Environmental / social impact studies Feasibility study Design and tenders Project construction Systems management and maintenance program NEW BOTNAM COMPANY NEW NAMIBIA CORPORATION

THANK YOU END OF PRESENTATION Compiled on behalf of NNC / NBC by AVG-Gibson International NEW BOTNAM COMPANY NEW NAMIBIA CORPORATION