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1 28 August 2012 REVISED INVESTOR PRESENTATION Xceed Resources Limited (ASX: XCD) advises that it has amended its investor presentation to exclude references made to share price targets published in broker reports. The revised investor presentation is attached. Yours faithfully Xceed Resources Limited Fiona Taylor Company Secretary Chairman: Patrick O Connor Managing Director: Ian Culbert Finance Director: Stephen Belben Company Secretary: Fiona Taylor Registered Office Level 9, 105 St Georges Terrace Perth WA 6000 Postal: GPO Box 2575 Perth WA 6001 T: +61 (8) F +61 (8) South Africa 4/B Midland Office Park Middelburg, Mpumalanga 1050 T: +27 (13) F: +27 (13) ABN: Xceed Resources Limited is an Australian based public company engaged in the acquisition of mineral projects in Southern Africa. The company s primary focus is the development of coal projects located within South Africa s premier coal fields, which are supported by established infrastructure and are readily capable of reaching their markets. The company s first project is the Moabsvelden thermal coal project situated in the Witbank coal field. Subject to regulatory approval, Moabsvelden is expected to have a mine life in excess of 14 years with the potential to produce export quality as well as domestic quality thermal coal from an open-cast, low strip mine.

2 Building a multi-project African Mining Company Investor Presentation September ASX: XCD

3 Disclaimer & Attribution This document has been prepared by Xceed Resources Limited ( XCD ) in connection with providing an overview to interested analysts 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 /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. 2 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 Exploration, 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.

4 Overview Production Planned for 2013 Moabsvelden Project in advanced stages of securing development financing There are no infrastructure constraints to development with all production to be sold at the mine gate Project expected to deliver $20m net operating cashflow per year for 15 years Cornerstone investment by new BEE partner materially reduces dilution to shareholders Restructuring of BEE interests at a project level is significantly beneficial to shareholders New BEE partner brings own balance sheet, as well as strategic relationships for new and existing projects Pipeline of New Projects Management to drive shareholder value through the acquisition of new projects Maiden resources established on two new projects Significant Value Proposition to Investors Moabsvelden Project s Feasibility Study ungeared post-tax NPV of A$92mil Current Market Capitalisation of A$10mil with A$7mil Cash at Bank 3

5 Corporate Snapshot Capital Structure and Financials Board & Management # Ordinary Shares on Issue 115,500,435 Market Capitalisation^ $9,835,030 Performance Shares on Issue 25,000,000 Debt $0 Options on Issue 0 Cash $7,048,000 Total Securities on Issue 140,500,435 Cash Backing per share $0.050 Shareholder Distribution Last traded^ $0.070 Top 20 Shareholders 60% Board & Management 31% 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. 4 ^Last traded at 7.0 cents on the 27th of August Source ASX.

6 Project and Strategy Overview Current Projects & Strategy Project Name Location Owership Stage Comments Moabsvelden South Pre- 70% Company starter project, to begin production in 2013 Africa Production Roodepoort South Africa 15% - 70% Exploration Existing resource, with remaining exploration potential Bankfontein South Africa 15% - 70% Exploration 35km from Richards Bay coal line, a well established area Bringing Moabsvelden into production in 2013 is a priority for the Company and the project is on track to meet this target, The Directors believe that bringing Moabsvelden into production presents the best outcome for the Company and its shareholders, The Roodepoort and Bankfontein projects represent add-on exploration opportunities not requiring significant capital or management time, The substantial cashflow and establishment of an operational team at Moabsvelden will be the platform to acquire and develop larger, longer term projects 5

7 Project and Strategy Overview Growth by Acquisition The Company will develop a pipeline of new projects to underwrite its growth as an ASX listed mining company, Management have been continuously assessing new acquisition opportunities with the objective of enhancing the Company s current portfolio of projects; these projects must be either advanced in terms of permitting and resource definition or have the potential to develop into large, long lead time operations The Company s new cornerstone BEE partner, Thebe Investment Corporation significantly adds to our in-country presence and boosts the chances of us finding the right acquisition Thebe will be represented on the boards of Xceed and the Moabsvelden operating company and Xceed will be their largest resource investment to date. 6

8 Strategic Cornerstone: Thebe Investment Corporation Thebe Investment Corporation is a Level 1 Broad-Based Black Economic Empowerment ( BBBEE ) contributor. Thebe manages in excess of R5.5bn, with a specific capital allocation dedicated to investing in green fields exploration and pre-production natural resources projects. Thebe is a 51.7% owned subsidiary of the Batho Batho Trust; a trust established by Nelson Mandela, Walter Sisulu and Beyers Naudé amongst other notables. Strategic Advantages to Xceed Resources Limited Enhanced working relationships with regulators and ESKOM, Enhanced project sponsor status leading to reduced cost of capital via competitive debt financing and greater leverage, Introduction to new projects. 7 For more Information, visit

9 Strategic Cornerstone: Thebe Investment Corporation Thebe proposes to invest $7.75mil directly into Neosho to secure a 30% stake in the Moabsvelden Project, Neosho proposes to buy back shares from the existing BEE partners, Xceed Resources Limited (ASX Listed) This transaction values Moabsvelden at $25.8mil at its current stage, XCD shareholders will own the remaining 70% ($18mil) Thebe Investment Corporation 30% Ownership Neosho Trading 86 Pty Ltd 70% Ownership By re-structuring the BEE interest XCD s Management have substantially reduced dilution to its shareholders In addition, Thebe proposes to invest directly into ordinary XCD shares if and when required. Consideration $7.75mil to be injected by Thebe to become a 30% shareholder 100% Ownership Moabsvelden Project 8

10 Cornerstone Project: Moabsvelden The Moabsvelden project is a 100% open cast project with an average strip ratio of less than 2:1 and a combined 18m coal seam. The project is located in the Witbank coal fields of South Africa; 80kms east from Johannesburg. Project Snapshot (Bankable Feasibility Study Results) JORC Resource: 66.1 mt JORC Reserve: 43.8 mt The project is forecast to produce 666,000 tonnes export quality product (26Mj) and 890,000 tonnes of domestic product (20Mj) per annum for over 15 years. Annual ROM Production: Estimated CAPEX: Annual Forecast Sales: Annual Forecast OPEX: 3 mt $33mil $73mil $40mil The Company has received written advice from buyers confirming demand for these export quality volumes at the mine gate, for the prices modeled in the feasibility study. Eskom ordinarily buys at the mine gate. Annual Forecast Cash flow: Project NPV: $20mil $92mil Moabsvelden, with Kendal power station in the background 9

11 Moabsvelden: Development Schedule EVENT CY2012 CY2013 Permitting (all applications lodged) Off-take arrangements Contractor arrangements Financing - equity Financing - debt Fabrication / Construction Site works / plant construction Commissioning Notes: I. Permitting is assumed to take months from time of lodging MR application II. Off-take discussions i.r.o. export quality product will be concluded when permitting finalised, Eskom will take longer Timetable is indicative only and dependent upon a number of factors including receipt of all required mining permits 10

12 Summary Substantial value exists in XCD on its current projects Moabsvelden Project NPV of $92mil vs. a Market Cap. of $9.8mil, Thebe cash transaction prices XCD share of Moabsvelden at $18.1m Forecast free cash flow of +$20mil p.a. at production; Production to begin mid 2013, Management are actively pursuing the acquisition of new projects With the aim of significantly driving shareholder value, management are assessing new acquisitions, Our in-country presence has been very substantially enhanced with Thebe s involvement, Experienced and Effective Management Team Recently demonstrated managements capacity to protect shareholder interests by restructuring BEE interest to minimize dilution to XCD shareholders Everyone on the Xceed board has hands on experience of developing new mines. 11

13 Contact Us Please feel free to contact either of our representatives below with regards to: Investing in Xceed Resources Limited Business Development Opportunities for the company Receiving more information on the company (including broker reports) Ian Culbert Managing Director Tel: (08) Josh Puckridge Equity Capital Markets Advisor to the Company Tel: (08)