Zyl%20 %20 investor%20presentation%20-%20november%202011%20(s-tedits1)1

INVESTOR PRESENTATION:

METALLURGICAL COAL PROJECTS

NOVEMBER 2011

PG 2ZYL - Metallurgical Coal Projects

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 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, mineral resources or ore reserves is based on information compiled by Mr Dawie

Van Wyk who is a consultant to the Company and is a member and fellow of the Geological Society of South Africa and SACNASP, a Recognised

Overseas Professional Organisation. Mr Van Wyk 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 Van Wyk consents to the inclusion in the presentation of the matters based on his

information in the form and context in which it appears.

PG 3

CORPORATE OVERVIEW & STRATEGIC INTENT

Capital Structure

ASX Code: ZYL

Current shares on issue 488,535,899

Options on issue (20c ex.) 20,000,000



Market Capitalisation * $82.2 million

Cash on hand $30 million

Share price range (H/L) $0.26 - $0.10Mission - to develop high margin metallurgical coal deposits for domestic and export markets

* Market Capitalisation calculated as at 27 October 2011

PG 4

BOARD OF DIRECTORS – TWO NEW APPOINTMENTS

Bevan Tarratt – Executive ChairmanDirector of a number of ASX listed companies with experience in primary and secondary capital raisings and strategic consulting. Accounting background focussed on small cap resources companies and equity markets experience with Patersons Securities.

Dr Eric Lilford – Managing Director, Kangwane BFS Committee23 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.

Ian Benning – Operations Director, Kangwane BFS Committee25 years of mining industry experience in both production and mine management, and investment banking. Previously worked for Rand Merchant Bank and Investec focussing on corporate & specialised finance and asset management.

Phillipe Lalieu – Commercial DirectorCo-founder of Opes Capital with 13 years experience in corporate finance advisory specializing in the mining and infrastructure sectors. Previously established and jointly managed a SA based private equity fund for a Dubai based company and worked for Anglo Platinum in corporate finance and project development.

SENIOR MANAGEMENT AND NON-EXECUTIVE DIRECTOR

5

David Greenwood – Non-Executive Director29 years of geological and mining experience with a number of coal, precious metal and base metal producers. Extensive operational knowledge of the South African coal environment. Previously section head of new business and international operations within the coal division at Gold Fields of South Africa Limited.

Nicholas Ong – Company SecretaryManagerial experience with the ASX; approved and listed over 100 companies. Detailed knowledge and understanding of all facets of the listing process, company restructurings and compliance with industry codes.

Garth Reardon –Business Development Manager22 years experience in financial, strategic and business development roles spanning the EPCM engineering, mining, media, investment banking, asset management, printing, professional accounting and tax industries.

Mzwandile Nombewu – Director Siyanda Resources, Kangwane BFS Committee15 years of coal (Ingwe) and gold (AngloGold) mining experience in South Africa with additional experience in mining education. Currently holds the position of Technical Director, Coal and Mineral Rights in Siyanda Resources.

ZYL - Metallurgical Coal Projects

MBILA & KANGWANE – COMPLEMENTARY MULTI SITE FOCUS

PG 6

MBILA PROJECT

PG 7

ZYL (44%) and its partner York Energy Pty Ltd (30%) have the right to earn 74% of the Mbila Anthracite Project

Mbila project consists of two licences in the KZN Province;

– Mbila Mining Right covering a total area of 19,000 Ha (enabling early production)

– New Order Prospecting Right covering 53,000 Ha

Full BFS completed in 2008, SRK and RMB updated the financial model in 2009

No additional drilling required for the first 5 years of mineral extraction

Combination of underground and open pittable operations available

MBILA - OPPORTUNITY

PG 8

SAMREC resource of 89Mt GTIS, 97% in Measured and Indicated with target seam resource of 20Mt – 60Mt

• 2 anthracite formations, ECCA and Beaufort:

– Ecca - ultra low phosphorous products – Beaufort - low phosphorous product

• Both products ideal for domestic mineral sands, ferrochrome and ferromanganese markets

• Significant shortfall exists in South African market; short and long term opportunity for Mbila

• High quality metallurgical coal to generate premium pricing (estimates of US$140 – US$180 per tonne at mine gate)


MBILA ANTHRACITE PROPERTIES

PG 9

Mining Right Area – Ecca

Seam

Mining Right Area –

Beaufort Seam

Prospecting Right Area –

Beaufort Seam

Coal Classification High Rank B Anthracite

High Rank C Anthracite

High Rank C Anthracite

Yield % 65.5 57.1 51.9

Ash Content % 9.9 15.1 15.1

Inherent Moisture % 1.5 2.0 <2.0

Volatile Matter % 5.2 5.9 7.3

Fixed Carbon % 84.9 79.0 77.6

Gross Calorific Value MJ/kg 32.25 29.78 30.41

Total Sulphur % 1.06 0.65 0.76

Phosphorous % 0.008 0.012 0.012


MBILA – HIGH QUALITY = COMPETITIVE ADVANTAGE

PG 10

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Mbila Ec

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35, 6% as

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Russian

Size

d (Top)

65%

70%

75%

80%

85%

90%

95%

66%

70% 70%71%

72%

76%77% 77%

78% 78%82%

83% 83% 83%84%

85% 85% 85% 85%87%

88%

92%Semi Anthracite Anthracite Standard Metallurgical High Grade Metallurgical


MBILA – CLOSE TO INFRASTRUCTURE & DOMESTIC MARKETS

PG 11

Rail:

Two rail sidings close to tenement

Direct rail link access to port facilities

Port:

Either Richards Bay or Durban Harbour (200km)

Power:

Power supply is in close proximity to the project

Water:

Water sourced from local boreholes in Zululand District


KANGWANE LOCATION & RAIL - IDEAL FOR EXPORT

PG 13

KANGWANE CENTRAL – EXPORT FOCUS

JORC Compliant Resources of 114Mt including a Measured Resource of 21.4Mt

Open Pittable Resource of 60.79Mt at a stripping ratio up to 5 : 1

Initial feasibility results in Q4 2011 with the focus on production from open pit operations (indicative 2.1 Mt per annum ROM)

Approximately 100km from Maputo Port by direct rail link, with existing rail siding. Road, power and water all located nearby

Siyanda Resources (BEE partner) has extensive experience in South African coal mining; currently operating two mines and previous owners of the Koornfontein Coal Mine

High quality metallurgical coal has the potential to generate premium pricing (estimates of US$100 - US$120 per tonne at mine gate)


KANGWANE CENTRAL - CURRENT JORC RESOURCES

Coal Resource Estimate Statement (JORC and SAMREC compliant)for Kangwane Central (gross tonnes in situ – GTIS)

Total Measured Coal Resource (GTIS) 21.4 Mt

Total Indicated Coal Resource (GTIS) 25.5 Mt

Total Inferred Coal Resource (GTIS) 67.2 Mt

Total JORC compliant Coal Resources at Kangwane Central Anthracite 114.1 Mt

Exploration Target 1 of 350Mt to 450Mt at an expected calorific value range of 6,635 kcal to 6,712 kcal ideal for export markets

1 The potential quantity and grade of the above Exploration Target is conceptual in nature and there has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource.

KANGWANE CENTRAL - MINING RESOURCES

PG 15

Indicated Resource Estimate (JORC and SAMREC compliant)for Kangwane Central Anthracite (gross tonnes in situ – GTIS)

Indicated Coal Resource North Open Cut area (GTIS) 11.17 Mt

Indicated Coal Resource South Open Cut area (GTIS) 49.62 Mt

Indicated Coal Resource Central Underground area (GTIS) 29.78 Mt

Total JORC compliant Indicated Coal Resources at Kangwane Central Anthracite 90.57 Mt

Total JORC compliant Coal Resources at Kangwane Central Anthracite 114.1Mt

KANGWANE CENTRAL - EXPORT QUALITY COAL

PG 16

@ 20% ASH @ 16% ASH

Yield % 79.34 66.36

Ash Content % 17.78 15.46

Inherent Moisture % 2.43 2.40

Volatile Matter % 6.35 6.17

Fixed Carbon % 74.32 76.80

Gross Caloric Value MJ/kg 27.74 28.70

Total Sulphur % 0.62 0.61

Washed coal specifications based on exploration to date

*These are the average specifications based on the drilling and washability analysis conducted during 2011. It does not suggest that Kangwane’s product will ultimately be a 20% or 16% ash content product. The final targeted ash content will be dictated by market demand and economics.

PG 17

KANGWANE SOUTHERN – COMPLEMENTARY EXPORT FOCUS

Conceptual Exploration Target of 90Mt - 190Mt at an expected calorific value range of 19MJ/kg to 28MJ/kg¹ (5,250kcal to 6,680kcal) unwashed

Approximately 25km to the South and considered highly complementary to Kangwane Central; potential to share services and infrastructure

Close proximity to port, water, electricity, roads and rail; approximately 130km by rail to Maputo Port in Mozambique with existing rail siding

Mining Right Application (MRA) submitted

Anthracite qualities expected to be similar to Kangwane Central

1The potential quantity and grade of this exploration target is conceptual in nature, there has been insufficient exploration to define a Mineral Resource on the property and it is uncertain if further exploration will result in discovery of further Mineral Resources on the property.

PG 18

KANGWANE SOUTHERN – SAMREC RESOURCE

Coal Resource Estimate Statement (JORC and SAMREC compliant)for Kangwane Southern (gross tonnes in situ – GTIS)

Total Indicated Coal Resource (GTIS) 73.9 Mt

Total Inferred Coal Resource (GTIS) 25.8 Mt

Total SAMREC* compliant Coal Resources at Kangwane Southern Anthracite 99.7 Mt

Minimum seam width of 1.2 metres used in estimation

Seam depth ranges between 20 metres and 400 metres below the surface

Approximately 2Mt open pittable coal on the shallow western limit with the remaining coal to be mined using underground methods

A total of 103 boreholes drilled since 1982

*SAMREC: The South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves.


KANGWANE INFRASTRUCTURE

Rail:- Rail siding access

adjacent to Kangwane Central

- Capacity of 100,000 tonnes/month at rail siding

- 100km by direct rail link to Maputo Port

Port:- Maputo Port operates

24 hrs

- Port can handle 6Mt of product per annum

- Direct rail link access to port facilities

- Capacity upgrade occurring

Power Lines:- Mains power 18km from project

- Power currently supplied to neighbouring Nkomati Anthracite Mine

- Sealed road passes through Kangwane allowing for power line extensions

Water:- Nkomati River

traverses north and west of the Kangwane Central Project

- Supplied to neighbouring Nkomati Anthracite Mine

MBILA PROJECT - JOINT VENTURE STRUCTURE

PG 20

Right to earn a 44% interest via

• Payment of US$2.8 million for the acquisition of an initial 5% of Mbila’s total issued share capital on 16 September 2011

• Payment of an aggregate amount of US$24,200,000 on the 5th business day following the later of 1 May 2012 and the date of fulfillment of the Suspensive Conditions for the acquisition of an additional 39% of Mbila’s total issued capital to be paid via:

- US$13,200,000 cash

- US$11,000,000 by way of issue or transfer of listed shares in ZYL valued as:

i) the AUD Equivalent of US$5,000,000 at the AUD denominated volume weighted average price (VWAP) at which the shares in ZYL traded on the Australian Securities Exchange (ASX) for the 30 day period prior to 14 December 2011, orii) the VWAP at which the shares in ZYL traded on the ASX for the 30 day period prior to the date of conclusion of the Formal Agreement, whichever is the higher amount; iii) If a secondary listing on the JSE has not occurred on or before the Second Payment Date, then ZYL will acquire the 39% Subscription Shares for a cash amount of US$24,200,000 escalated by 1% per month for each month settlement does not occur from 16 September 2011.

PG 21

KANGWANE CENTRAL - JOINT VENTURE STRUCTURE

Right to earn a 50.12% interest subject to spend commitments:

• ZYL to expend ZAR20 million (~A$3 million) over 12 months to complete a FS

• ZYL will invest ZAR30 million (~A$4.5 million) in equity for capital expenditure items in connection with mine development

• Loan of ZAR3.00 per tonne (~A$0.45 per tonne) of economically mineable coal (as demonstrated by the BFS) capped at ZAR100.5 million (~A$15.5 million) provided in two tranches repaid out of profits after an initial 3 year period of operations

• After selling 36.6Mt of anthracite, the original shareholders will receive a royalty of ZAR2/tonne for anthracite sold (~A$0.30/tonne) above 36.6Mt

KANGWANE SOUTHERN - JOINT VENTURE STRUCTURE

PG 22

Right to earn a 70% interest via

Initial payment of $500,000 to Prosperitas Capital on signature of the Share Sale Agreement

Subsequent payment of $500,000 to Prosperitas Capital on obtaining ZYL Shareholder Approval

Final payment of 3,472,000 fully paid shares in ZYL issued to Prosperitas Capital on acceptance of the Mining Right Application

ZYL’s medium term funding commitments will be to maintain the Mining Right in good standing with the Department of Mineral Resources and to complete a FS

PG 23

ANTHRACITE – HIGH CARBON & ENERGY, LOW MOISTURE

Low Rank Coal Hard Coal47% 53%

Peat/Bog Lignite Sub-Bituminous Bituminous Anthracite17% 30% 52% 1%

Thermal Metallurgical

Steam Coal Soft Coking Hard Coking

power generation power generation power generation iron and steel clean heatingcement manufacture cement manufacture smokeless fuelindustrial industrial anode paste

carbon source

USE

S%

OF

WO

RLD

RES

ERVE

S

Moisture Content of Coal

Carbon and Energy Content of CoalLOW

HIGH

Source: World Coal Association

PG 24

INVESTMENT OPPORTUNITY

For further information on investment opportunities in this emerging metallurgical coal producergo to www.zyllimited.com.au

or contact:

Dr Eric LilfordManaging Director

Telephone +61 8 9486 4036Facsimile +61 8 9486 4799Mobile +61 (0)424 757 [email protected]

Bevan TarrattChairman / Director

Telephone +61 8 9486 4036Facsimile +61 8 9486 4799Mobile +61 (0)418 928 [email protected]

Ian BenningOperations Director

Telephone +27 87 350 2751Facsimile +27 11 245 9801Mobile +27 (0)837 028 221

[email protected]

Investor Relations

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