1. MMMD - PDAC 2008 Presentation, March 2 - 5, 2008: Toronto, Canada 1 HON. DR. KALOMBO T. MWANSA, MP MINISTER OF MINES AND MINERALS DEVELOPMENT REPUBLIC OF ZAMBIA. MINING INVESTMENT OPPORTUNITIES IN ZAMBIA By

2. MMMD - PDAC 2008 Presentation, March 2 - 5, 2008: Toronto, Canada 2 AFRICA WITH ZAMBIA AND NEIGHBOURING COUNTRIES

3. MMMD - PDAC 2008 Presentation, March 2 - 5, 2008: Toronto, Canada 3 ZAMBIA’S PROVINCES

4. MMMD - PDAC 2008 Presentation, March 2 - 5, 2008: Toronto, Canada 4 SUBJECTS OF DISCUSSION: Performance of Zambia’s mining sector since privatisation. Mining regulatory and fiscal reforms. New opportunities in the mining sector.

5. MMMD - PDAC 2008 Presentation, March 2 - 5, 2008: Toronto, Canada 5 PERFORMANCE OF ZAMBIA’S MINING SECTOR SINCE PRIVATISATION Increased annual copper production from 230,000 to 520,000 metric tonnes per annum Technological innovations and expansion programmes at existing mines on the Copperbelt

6. MMMD - PDAC 2008 Presentation, March 2 - 5, 2008: Toronto, Canada 6 PERFORMANCE OF ZAMBIA’S MINING SECTOR SINCE PRIVATISATION – Cont’d Capital investments exceeding US$2.0 billion in new mines and processing plants. Next 12 months new mines at Muliashi, KDMP, Konkola North, Lumwana, Munali, Mkushi, Mokambo, Cheowa and new smelters at Nchanga and Chambeshi.

7. MMMD - PDAC 2008 Presentation, March 2 - 5, 2008: Toronto, Canada 7 MINING REGULATORY AND FISCAL REFORMS New regulatory framework to provide:  Sufficient protection and rights to investors.  Requirements and incentives for doing business.  Computerised mining cadastre to facilitate timely processing of mining rights.

8. MMMD - PDAC 2008 Presentation, March 2 - 5, 2008: Toronto, Canada 8 MINING REGULATORY AND FISCAL REFORMS – Cont’d The new fiscal regime to provide for:  Equitable distribution of mineral wealth between the nation and mining companies.  Sharing in Zambia’s mining sector fortunes to enable the people benefit a little more while ensuring that the mines remain profitable and rewarding to shareholders.

9. MMMD - PDAC 2008 Presentation, March 2 - 5, 2008: Toronto, Canada 9 MINING REGULATORY AND FISCAL REFORMS – Cont’d The new fiscal measures include:  30% Corporate Tax.  15% Variable Profit Tax on taxable income above 8% of gross income.  Windfall Tax triggered at different base metal prices.

10. MMMD - PDAC 2008 Presentation, March 2 - 5, 2008: Toronto, Canada 10 MINING REGULATORY AND FISCAL REFORMS – Cont’d  3% Mineral Royalty on gross value.  15% Withholding Tax on interest, management fees and affiliates.  0% Withholding Tax on dividends.  Hedging to be taxed separately as not mining activity.

11. MMMD - PDAC 2008 Presentation, March 2 - 5, 2008: Toronto, Canada 11 MINING REGULATORY AND FISCAL REFORMS – Cont’d  25% Capital Allowance per annum.  Reference Price to assess mineral royalties, metal and gemstones sale transactions.  Capital Expenditures on new projects to be ring-fenced and deductible on commencement of production.

12. MMMD - PDAC 2008 Presentation, March 2 - 5, 2008: Toronto, Canada 12 MINING REGULATORY AND FISCAL REFORMS – Cont’d The new fiscal and regulatory framework designed:  To work in periods of both high and low metal prices.  To provide for stable fiscal and regulatory regime as mining projects are costly and long-term investments.  To move Zambia into a median comparative position of 47% effective tax rate for the mining sector from 31.7%.

13. MMMD - PDAC 2008 Presentation, March 2 - 5, 2008: Toronto, Canada 13 NEW OPPORTUNITIES IN ZAMBIA’S MINING SECTOR Zambia is endowed with various mineral resources including:  Copper, cobalt, zinc, lead, nickel, platinum group elements, manganese, tin, tantalum and iron.  Limestone, phosphate, feldspars, silica and dimension stones such as marble, granite and sodalite.  Amethyst, aquamarine, emeralds, citrine, tourmaline, gold, silver, diamonds and garnet.  Uranium, coal, oil and gas.

14. MMMD - PDAC 2008 Presentation, March 2 - 5, 2008: Toronto, Canada 14 55% GEOLOGICALLY MAPPED

15. MMMD - PDAC 2008 Presentation, March 2 - 5, 2008: Toronto, Canada 15 NEW OPPORTUNITIES IN MINING SECTOR – Cont’d Zambia provides enormous opportunities for uranium mining and prospects for oil and gas. Equinox Minerals Limited is advanced in the preparation of feasibility study for uranium mining at Lumwana in North-Western Province. OmegaCorp Minerals Limited has discovered significant deposits of uranium near Lake Kariba in Southern Zambia.

16. MMMD - PDAC 2008 Presentation, March 2 - 5, 2008: Toronto, Canada 16 NEW OPPORTUNITIES IN MINING SECTOR – Cont’d African Energy Resources is examining two promising sites at Chirundu and along Lake Kariba in Southern Province. Zambia has adopted International Atomic Energy Agency (IAEA) guidelines to regulate uranium mining, processing, storage, transportation and trade.

17. MMMD - PDAC 2008 Presentation, March 2 - 5, 2008: Toronto, Canada 17 Zambia’s President appointed a Petroleum Committee

18. MMMD - PDAC 2008 Presentation, March 2 - 5, 2008: Toronto, Canada 18 NEW OPPORTUNITIES IN MINING SECTOR – Cont’d Zambia has made significant progress in exploration for oil and gas in North- Western Province, Eastern Province and Western Province. The results of the microbial analyses of soil samples collected from these Provinces are very encouraging.

19. MMMD - PDAC 2008 Presentation, March 2 - 5, 2008: Toronto, Canada 19 CONCEPT OF MICROBIAL PROSPECTING FOR OIL AND GAS

20. MMMD - PDAC 2008 Presentation, March 2 - 5, 2008: Toronto, Canada 20 NEW OPPORTUNITIES IN MINING SECTOR – Cont’d Zambia will soon invite bids from exploration companies to determine the quantities and types of the oil and gas. Zambia’s Petroleum Act is being revised to provide for two separate licences for prospecting and for production. The Petroleum Act is also being amended to strengthen legal provisions for environmental protection and institutional framework to regulate the industry.

21. MMMD - PDAC 2008 Presentation, March 2 - 5, 2008: Toronto, Canada 21 CONCLUSION Investors should take advantage of:  Peace and economic stability in Zambia.  Commitment to the rule of law.  Good economic policies which are consistent and predictable.

22. MMMD - PDAC 2008 Presentation, March 2 - 5, 2008: Toronto, Canada 22 THANK YOU