Walkabout discovery forum jan 2014

Mining Indaba Discovery ForumFebruary 1, 2014

Allan Mulligan

Strategies for Unlocking Value

7 bntGood Quality Thermal coal

Walkabout

Diversified Junior Explorer Current Focus Africa

Africa’s Low Risk Mining Destinations

Highly ProspectiveCopper Projectat Kigoma

Low Capital, Early CashFlow

Strategy

4 Active Projects in

Pipe

line

Mineable coal endowment large

enough to host several separate mines

Advanced

PGE

Prospe

ct inTanzania

3www.wkt.com.au

Takatokwane Coal Project 7 Bn Tonne Inferred Resource Grade 2 Thermal Quality Pre‐Feasibility Study

Kigoma Copper Project Epithermal Host Structures Oxide and Sulphide 750 km2 Holdings/JV’s

Lindi Coal

Makete PGE

ASX Code: WKT

Peter Batten Geologist Non Executive,Independent Director

Geoff Wallace Accountant Executive Director

Allan Mulligan Mining Engineer Managing Director

Share Price (19 Jan 2014) A$0.008

Shares on Issue 708m

Market Capitalisation A$5m

Top 20 Shareholders 48%

Salient Details

• 7 billion tonne Inferred Resource of High Quality Thermal Grade Coal

• 748 million tonne Indicated Resource of Shallow, Consistent and Wide Seam Coal

• Identified 4 preferred mine start up areas

• Conducting Pre‐feasibility Study for “Starter Mine”

• Conducting Pre‐feasibility Study for CTG and CTL with technology partner

• Resource distributed over 5 seams, 2A, 2B, 3, 4 and 5• Target Mining Area identified with;

• Shallow coal at 60mbs• Wider seam 2 between 8m and 20m thick• Lower Sulphur washable to ~ 1%

• Selected Take‐Outs of Richards Bay Grade export quality thermal coal

Takatokwane Coal Project (WKT earning ~67%)

Location of 7bn tonnes of thermal coal

Takatokwane is HUGE and will ultimately comprise of an entire coal mining district

Coal quality ranges between ROM Power‐Station coal and can be upgraded to RB1 and 3

200 km from Gaborone on sealed highway

Located proximal to robust South African markets

Close to proposed TransKalahari Rail to Namibia

Proposed Transkalahari

Rail Route

Proposed Transkalahari

Rail Route

Coal Resource Statements – JORC Inferred

Drilling across two areas and two separate resources calculated

Resources defined on PL 035/2007 and PL 159/2009 represents only a small area of potential

Plan showing Inferred Resource drilling on two tenements at Takatokwane Project

Inferred Resource for Takatokwane Project

Tenement Holding

Inferred Resource

(Mt)

Density (t/m3)

Ash (%)

S (%)

CV (KCal/kg)

Moisture (%)

Float (t/m3)

Yield (%)Inferred Resource

(Mt)Ash (%) S (%)

CV (KCal/Kg)

PL 35/2007 4,230 1.65 32 2.8 4,203 6.8 1.6 57 2,395 16 1.7 5,500

PL 159/2009 2,654 1.80 39 1.97 3,650 7.2 1.7 46 1,223 20 1.6 5,015

Raw Coal Washed Resources over 5 seams

Coal Resource Statements – JORC Indicated

Location of Indicated Resource Areas

Indicated Resource for Takatokwane Project ‐ Consolidated

Tenement Holding

Inferred Resource

(Mt)

Density (t/m3)

Ash (%)

S (%)

CV (Kcal/kg)

Moisture (%)

Float (t/m3)

Yield (%)Inferred Resource

(Mt)Ash (%) S (%)

CV (Kcal/Kg)

Combined 748 1.67 37 1.7 4,060 8 1.7 43 318 17 1.0 5,250

Raw Coal Washed Resources over 5 seams


Indicated Resource drilled out in western zone is 324 mn tonnes

Indicated Resource drilled out in eastern zone is 425 mn tonnes

Target Mining Area and Take Outs


Further Target Mining Area potential of shallow, wide coal also located in Northern Zone

Zone of Shallow, Wide Seam 2 and Low Sulphur Coal

Summary ‐ Northern and Western Target AreaWashed results on AD basis ‐ Wash Density Range 1.4 to 1.8 (non‐optimised)

Coal SeamSeam Upper

DepthAve Seam Thickness

Yield Range

Inherent Moisture

Ash Content

Total Sulphur

mbs m % % % %

Seam 2L 77 5.6 23‐65 8‐10 10 ‐ 23 1.0 5,046 6,049 Seam 3 101 2.6 34‐72 8 ‐ 9 9 ‐ 21 1.0 5,181 6,060 Seam 4 112 2.5 35‐80 8 ‐ 9 9 ‐ 18 0.6 5,250 6,075

Other Botswana Coal 1 published average estimated 29 0.3 5,445 Other Botswana Coal 2 published average estimated 17 0.5 5,779 Average of Total Inferred Resource Takatokwane 16‐21 1.6 5,492

South Africa Richards Bay Export Parameters 12‐15 <1 5,850 6,000 Australia Newcastle Export Parameters 11‐17 <1 5,850 6,000

Calorific Value RangeKcal/Kg

Target Mining Area and Take Outs

Eastern Target AreaWashed results on AD basis ‐ Wash Density Range 1.4 to 1.8 (non‐optimised)

Coal SeamSeam Upper


Yield Range

Inherent Moisture

Ash Content

Total Sulphur

mbs m % % % %

Seam 2U 61 6.0 19‐60 8.8 10‐23 1.0 4,716 5,741 Seam 2L 60 8.5 18‐58 8.99 10‐24 0.8 4,743 5,836 Seam 4 120 2.0 28‐79 8.31 10‐20 1.1 5,098 5,841 Seam 5 134 2.1 22‐65 8.72 9‐22 0.5 4,812 5,851


Western Target AreaWashed results on AD basis ‐ Wash Density Range 1.4 to 1.8 (non‐optimised)

Coal SeamSeam Upper


Yield Range

Inherent Moisture

Ash Content

Total Sulphur

mbs m % % % %

Seam 2UB 70 8.0 15‐58 8.5 11‐24 1.4 4,922 5,960 Seam 2L 77 7.0 24‐62 8.6 11‐21 1.0 5,268 6,082 Seam 3 101 1.6 28‐84 8.3 10‐19 0.9 5,289 6,068 Seam 4 112 1.9 40‐83 8.4 10‐16 0.9 5,488 6,175


Northern Area* * Based on wider spaced dri l l ing

Washed results on AD basis ‐ Wash Density Range 1.4 to 1.8 (non‐optimised)

Coal SeamSeam Upper


Yield Range

Inherent Moisture

Ash Content

Total Sulphur

mbs m % % % %

Seam 1 60 3.0 27‐68 8.4 10‐20 2.8 5,082 5,996 Seam 2U 87 6.1 25‐59 8.7 10‐20 2.0 5,055 6,001 Seam 2L 91 5.0 23‐65 8.5 10‐21 0.9 4,881 6,027 Seam 3 110 2.8 36‐81 8.2 10‐20 1.0 5,139 6,015 Seam 4 138 3.0 38‐81 7.8 10‐20 0.6 5,500 6,042


Strategies for Commercialising

Takatokwane Coal Deposit

Direct Export to India / China

Stage 2

Export to South Africa ESKOM, Richards Bay

Stage 1

Coal to Liquid, Coal to Gas Power and by‐

products

Stage 1A

Direct CoalFired Power

Indicative Transport to Market Options

Coal Development Strategy 1

Coal Deposit Export to South Africa,

ESKOM, Richards Bay

Highlights

Requirements

Currently under PFSShort implementation period (2‐3 years)Mineral Rights legitimisedDe‐risks Takatokwane Project

Overcome road transport hurdleCoal prices need to increase as proposed to provide a stronger value proposition

Value PropositionLow Volume (~1mtpa), Short Term ProducerMargins Up to $10/t

Driving Local Demand

• Eskom Coal Cliff

• Export capacity Richards Bay Strategic National Initiative

• Establishment of SA Dry Port

• SA Infrastructure late in developing

• Existing mines deeper and more expensive

• Emergence of other Southern African Economies

Source: Eskom

M to

nnes per ann

um

Indicative Transport to Market Options

Option Volume (m tonnes)

Road (km)

Rail (km)

Margin @ $60/t

Margin @ $90/t

Margin @ $100/t

Power Stations South Africa <1 ~200 550 ‐3

Richards Bay <1 ~200 1140 2 12

Durban <1 ~200 1130 0 9

Maputo 1 <1 ~200 1180 0 10

Maputo 2 >5 0 1630 6 16

Namibia Port >5 0 1300 15 25

Off‐Site Coal Sales basis only

These numbers are qualified as Indicative and do not represent final costed or definitive estimates

Coal Development Strategy 1A

Coal Deposit Coal to Liquid, Coal to

Gas, Power and by‐products through

Integrated Gasification Combined‐Cycle (IGCC)

systems

Highlights

Requirements

Co partner Coalswana subsidises studiesOn site sales of Coal and Fuels Appropriate Power GenerationStaged development

Reduce the technical risksStaged development and capex managementDependant volumesLogistics to be finalised

Value PropositionTechnology De‐RiskedModerate Volume, Long Term ProducerMargins Up to $40/tSignificant cross subsidising

Driving Emerging Economies

• Botswana imports 100% of liquid fuels

• Severe lack of power infrastructure – remote and localised power opportunities

• Mining and industrialisation held back by power access

• Export of by‐product to Southern Africa

• Cross subsidy of transport hurdles through unlocking of previous unavailable value

Source: Gasification Technologies Council (2013)

Growth in CTG Process Capacity






Coal Deposit


Highlights

Requirements

Best long term utilisation of assets Locked in margins for long periodsLarge scale economic activity

Rail line to be builtCo‐ordinated industry approachLobbying and collaboration

Value PropositionHigh Volume, Long Term ProducerPotential Margins Up to $35/t

Forecast Price Improvement

Long‐Term offshore international export market

1. India and other rapidly emerging economies heavily reliant on thermal coal

2. India, China and others have little alternative but coal fired power expansions

3. Southern Africa and India facing thermal coal import “cliff”

4. USA Infrastructure for export of surplus coal now reaching capacity

5. Requires infrastructure investment by others

Forecast International Thermal Coal Prices


Coal Deposit


Highlights

Requirements

Politically sensitive PricingMargins are lowHigh Capital Risk

Need High Tension Electrical Distribution Need Regulatory Integration Need Price Certainty

Value PropositionHigh CapitalModerate Volume, Long Term ProducerMargins at RiskNot considered for Taka at this time

Coal Development StrategyRisks & Returns

High Risk

Low Risk

Long TermShort Term


(Rail line)

Export to Local / BTS South Africa ESKOM

Richards Bay


productsDirect CoalFired Power

Strategic Projects Timeline

0 Years 4 Years 7 Years

NettR

eturn Po

tential

Export to South Africa ESKOM Richards Bay


products



(Rail line)

Kigoma Copper Project

Current Status at Kigoma Copper

Reconnaisance Drilling has delineated several epithermal structures hosting payable grades of Cu, Ag and Zn

This is the first discovery of sulphide mineralised ore in this highly rich oxidised Cu region

Indications are that these structures extend for more at least 1km and are open in all directions

WKT is first mover at Kigoma and has locked up the entire area

Makete PGE

• Historical Result ‐ 17.6m at 4.9g/t 2PGE+Au intersected in drill hole NDH014, (including 1,7m @ 26.8 g/t)) in 2005.

• Significant and widespread enrichment of Pt, Pd and Au occurs within large mafic and ultra‐mafic body.

• 7 holes recorded intersections in excess of 1m at +3.5g/t 2 PGE+Au.

Investment Case

Takatokwane is a LARGE and LONG TERM, EASILY‐MINED orebody of good quality thermal COAL

We are seeking a CORNERSTONE INVESTOR either at Project or at Company level

WKT offers significant upside at Kigoma – potentially an outstanding project

WKT is a compelling, undervalued investment option

www.wkt.com.au

Disclaimer

Forward‐Looking StatementsThis presentation includes certain “Forward‐Looking Statements.” All statements, other than statements of historical fact, included herein, including without limitation, statements regarding forecast cash flows and potential mineralisation, resources and reserves, exploration results and future expansion plans and development objectives of Walkabout Resources Limited are forward‐looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.

Competent Person – Dr Ian D. BlaydenInformation in this announcement above relating to Coal Resources at Takatokwane is based on information compiled by Dr Ian D. Blayden of Geological and Management Resources Pty Ltd which provides geological consulting services to Optiro Pty Ltd. Dr Blayden is a Member of the Australasian Institute of Mining and Metallurgy 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 by the 2004 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Dr Blayden consents to the inclusion in the document of the information in the form and context in which it appears.

Competent Person – Mr Alan GoldingThe information in this announcement that relates to exploration results at Takatokwane South is based on data compiled by Mr Alan Golding who is a member of the South African Geological Society, the South African Institute of Engineering Geologists and a Fellow of the Geological Society of London. Mr Golding has sufficient experience relevant to the style of mineralisation and the type of deposit under consideration to qualify as a competent person as defined in the 2004 edition of the Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Golding consents to the inclusion in this announcement of the matters based on his information in the form and context in which they appear.