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1 STRATEGY REFOCUSED: new asset, new leadership Bevan Tarratt, Executive Chairman Ian Benning, Chief Executive Officer

2 Important information The information in this presentation is an overview and does not contain all information necessary to make an investment decision. To the extent permitted by law, no representation or warranty, express or implied, is made as to the accuracy, adequacy or reliability of any statements, estimates or opinions or other information contained in this presentation, any of which may change without notice. This document is not a prospectus, disclosure document or offering document under Australian law or under any other law. It does not constitute an offer or invitation to apply for securities. It is for information purposes only. This presentation is not an offer of securities for subscription or sale in the United States or any other jurisdiction in which such an offer or solicitation is not authorised or to any other person to whom it is unlawful to make such an offer or solicitation. Some of the information contained in this presentation constitutes forward-looking statements that are subject to various risks and uncertainties, not all of which may be disclosed. These statements discuss future objectives or expectations concerning results of operations or financial condition or provide other forward looking information. Prospective investors should make their own independent evaluation of an investment in the securities. The material contained in this document does not take into account the investment objectives, financial situation or particular needs of any particular investor. No recommendation to investors regarding g the suitability of the securities has been made and the recipient must make its own assessment and/or seek independent advice on financial, legal, tax and other matters, including the merits and risk involved. This presentation and its contents have been distributed to you, in confidence, solely for your information and may not be retransmitted or otherwise reproduced or disclosed to third parties or made public in any way, in whole or in part, for any purpose without written permission. Competent person statement Information in this presentation that relates to exploration results, minerals resources or ore reserves is based on information compiled by: Mr Dawie van Wyk in respect of Kangwane Central, Kangwane South and Mbila; Mr Petrus Meyer in respect of Kangwane Central; and Mrs Liz de Klerk in respect of Mbila. Messrs van Wyk and Meyer and Mrs de Klerk are consultants to the Company. Mr van Wyk is a member and fellow of the Geological Society of South Africa and SACNASP, a Recognised Overseas Professional Organisation. Mr Meyer is a member of the Geological Society of South Africa and of the Fossil Fuel Foundation. Mrs de Klerk is on the council of the Geological Society of South Africa and is a member of the British Geological Society. Messrs van Wyk and Meyer and Mrs de Klerk have sufficient experience which is relevant to the styles of mineralisation and types of deposits under consideration and to the activities they are undertaking to qualify as Competent Persons as defined in the 2004 Edition of the Australian Code of Reporting of Exploration, Mineral Resources and Ore Reserves. Messrs van Wyk and Meyer and Mrs de Klerk consent to the inclusion in this presentation of the matters based on their information in the form and context in which it appears. 2

3 Investment case New strategic approach to deliver earlier shareholder returns Mbila Project to be developed first, followed by Kangwane Central Project Msebe Project and Kangwane South Project to be developed in due course Buoyant metallurgical markets South Africa and globally long-term market fundamentals are solid New South African-based team, focused on project development, product marketing South Africa: an improving investor destina ation Company is not infrastructure-dependent 3

4 New strategy: rationale Mbila: regulatory approvals, feasibility work well advanced fast-track development into production other domestic sources of high-quality anthracite largely exhausted Kangwane: work continues on regulatory approva als, feasibility, infrastructure development better placed for delivery into export markets, longer term Zyl Ltd (ASX) 70% 44% Siyanda 83.53% Mainstreet % 16.47% 2.5% BEE Opes Capital Kangwane South 5% 25% Mbila Resources 30% 100% 26% York Energy SA Pty Ltd BEE 22.5% Kangwane Project 5% 10% Double Ring Local community BEE Mbila Project Local community 4

5 Recent share price performa ance explained ZYL share price has tracked junior mining index downward Market reservations re ZYL capacity to fund two projects simultaneously ZYL daily line chart (close) XMM daily line chart (close)

6 Share data Current share price AUD $ Market cap AUD $ 61m Shares in issue Number of shareholders Major shareholders Cash at bank Macquarie Bank (8.13%) Sin-Tang Development Pte Ltd Ld(490%) (4.90%) Mighty River International Ltd (4.90%) (All other shareholdings <4%) approx. AUD $ 28m 6

7 Anthracite: South African market SA domestic supply vs im mports vs exports SA domestic supply Exports Imports Surplus / deficit Source: Estimates Mineral Technologies International

8 South African industry dom mestic size % 10% 11% % 20% 54% Ferrochrome Mineral Sands Steel Ferromanganese Other Source: Estimates Mineral Technologies International

9 Anthracite: global markets Estimated global supply shortfall by 2015: 21.7Mt SA export market dominated by Brazil, Europe, India Kangwane anthracite low-sulphur, low-moisture characteristics particularly well suited to Brazilian market Source: Mineral Technologies International 9

10 Project locations: compellin ng case Mbila: site to Coal Link rail 70km siding to Richards Bay Coal Terminal 105km mine gate sales potential reduces rail dependence can truck product to Richards Bay or Durban Bulk Handling Terminals capacity available at either Bulk Handling Terminal (if required) Kangwane: rail, siding on site 115km to Maputo port ideal for unsized product export trucking by road; no need for rail accesss capacity available at Maputo Bulk Handling Terminal Logistics study under way; report due mid- 10

11 Resource update Total JORC-compliant coal resources GTIS (Mt) Mbila Project Measured coal resources Indicated coal resources Inferred coal resources Total Kangwane Central Project Measured coal resources Indicated coal resources Inferred coal resources Total Kangwane South Project Measured coal resources Indicated coal resources Inferred coal resources Total

12 Refocused team Bevan Tarratt Executive Chairman Moves to frontline investor relations To spend minimum of six months a year in South Africa overseeing project development Director of a number of ASX listed companies with experience in primary and secondary capital raisings and strategic consulting. Accounting background focused on small cap resources companies and equity markets experience with Patersons Securities. John Beck Non-executive director Joins board to assist with Mbila and to spearhead anthracite marketing strategy development, implementation Phillipe Lalieu Commercial Director South African-based, takes responsibility for pursuing and developing commercial opportunities in country Ian Benning Chief Executive Officer Moves to frontline investor relations South African-based, takes day-to-day accountability/responsibility for project development 30 years of mining industry experience in both production and mine management, and investment banking. Previously worked for Rand Merchant Bank and Absa Capital focusing on mining finance and private equity. Dr Eric Lilford Managing Director Australia-based, takes responsibility for business development 23 years operational experience across the global resources sector, including large gold, platinum, copper and coal mines. 12 years in investment banking and commodities research. Completion of bankable feasibility studies (BFS) in numerous jurisdictions. 12

13 Mbila: profile ZYL (44%), partner York Energy (30%): right to ear rn 74% High-grade anthracite low phosphorus, low sulphur, low ash high domestic demand (mineral sands, ferrochrome, ferromanganese, silicon carbide) premium pricing at mine gate expressions of interest (EOIs) signed with some major international resource companies no export logistics solution required Mbila 125Mt JORC-compliant resource New Order Mining Right over ha EMP (Environmental Management Plan), SLP (Social and Labour Plan) approved Section 11 application submitted 13

14 Mbila: profile, cont d Mbila, cont d mine design well advanced open pit, underground flexibility production rate: Phase 1: 840ktpa ROM Phase 2: 1,5Mtpa ROM new drilling programme to start Q full DFS completed in 2008; update due end of January 2012 final DFS due end of Q Msebe New Order Prospecting Right over ha extended until October 2013 Key members of previous management team retained 14

15 Mbila: project timeline Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Draft feasibility study update Draft CPR Definitive feasibility study Final CPR Integrated water use licence approved Section 11 approval Offtake Letters of Intent Binding offtake agreements Arrange funding Detailed engineering design Infrastructure construction Mine/CPP construction Pre-production preparation Commence production Production ramp up Full production 15

16 Kangwane update Pre-feasibility study proves viability capex: AUD $ 58m (ZYL portion) production rate: 18MtpaROM 1.8Mtpa 1.2Mtpa saleable Feasibility study due end Q Export focus well located for trucking to Maputo Port (Mozambique) discussions i re port allocation, stockpiling, etc. under way complimentary to Mbila s domestic focus product suitable for Brazilian market in particular due to low-sulphur, low-moisture content Kangwane South Project drilling program to start Q to increase and expand the JORC-compliant resource category 16

17 Kangwane Central: project timeline Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Updated pre-feasibility study Environmental specialist reports Compile EIA/EMP/IWULA applications Submit EIA/EMP/IWULA applications EIA/EMP process Approval of EIA/EMP IWULA process Integrated water use licence (IWUL) approved Feasibility study Draft CPR Definitive feasibility study Final CPR Offtake letters of intent Binding offtake agreements Arrange funding Detailed engineering design Infrastructure construction Mine/CPP construction Pre-production preparation Commence production Production ramp up Full production 17

18 Kangwane South: project tim meline Q4 Q1 Q2 Q3 Q Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Phase 1 drilling program Geological modelling Phase 2 drilling program Pre-feasibility study Definitive feasibility study Environmental specialist reports Compile EIA/EMP/IWULA applications Submit EIA/EMP/IWULA applications EIA/EMP process Approval of EIA/EMP IWULA process Integrated water use licence (IWUL) approved Offtake letters of intent Arrange funding Detailed engineering design Infrastructure t construction ti Mine/CPP construction 18

19 Value curve HIGH Mbila Mine Kangwane Central Mine Msebe prospecting right Kangwane South Mine LOW Pre-exploration Scoping study Feasibility study Mine construction Production TIME 19

20 Capital profile Debt funding commitments expected by mid 2012 expressions of interests received from various development agencies, commercial lenders AUD $m Macquarie Bank appointed to 40 evaluate funding options Pre-delivery funding (from strategic offtakers) Trade finance Equity investments to secure offtake Kangwane Central Kangwane South Mbila Other 20

21 SA: investor destination sta atus improving Minerals legislation beefed-up minerals act on the way ambiguities removed security of tenure assured new on-line system for rights applications in place faster more transparent Mining royalties system bedding down Nationalisation ANC deals with Julius Malema factor ANC nationalisation report to be re-drafted business community more pro-active, vocal (Business Leadership SA, Chamber of Mines) Possible red flags? tax on mineral exports mooted producer beneficiation obligations 21

22 Investment case New strategic approach to deliver earlier shareholder returns Mbila Project to be developed first, followed by Kangwane Central Project Msebe Project and Kangwane South Project to be developed in due course Buoyant metallurgical markets South Africa and globally long-term market fundamentals are solid New South African-based team, focused on project development, product marketing South Africa: an improving investor destina ation Company is not infrastructure-dependent 22

23 Bevan Tarratt, Executive Chairman Mobile Telephone btarratt@zyllimited.com.au Ian Benning, Chi ef Executive Officer Mobile +27 (0) Telephone +27 (0) ian.benning@zyllimited.com.au