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Level 1, 44 Ord Street West Perth WA 6005 Australia

Mozambi Coal Limited (ASX: MOZ) ABN 28 106 353 253

Tel: +61 8 9321 0774 | Fax: +61 8 6314 1557 www.mozambicoal.com

PO Box 1571

West Perth WA 6872 Australia

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ASX ANNOUNCEMENT

29 November 2013

By e-lodgement

EPC 1768 UPDATE

• Geological assessment now underway

• Exploration Target* range of 70-140Mt of metallurgical coal

Mozambi Coal Limited (ASX: MOZ, Mozambi or Company) recently announced it had completed the purchase of two Central Queensland EPC's (exploration Permits for coal) from Rio Tinto Exploration. Assessment of historical geological information, particularly in relation to EPC 1768, is underway and an update on some of the preliminary results of this work is now provided.

Regional Geology and Resource Potential EPC 1768, Bowen River, is considered by Mozambi to be prospective for metallurgical coal due to the fact that the tenement contains outcrops of three coal bearing measures (Rangal Coal Measures (RCM), Fort Cooper Coal Measures (FCCM) and the Moranbah Coal Measures (MCM)). The RCM and MCM in particular are mined extensively within the Bowen Basin for coking coal (hard, semi-hard and semi-soft), PCI coal and to a lesser extent, thermal coal (see stratigraphic column, Figure 1 below). *Exploration Target tonnages are conceptual in nature, there has been insufficient exploration to define a Coal Resource and it is uncertain if further exploration will result in the determination of a Coal Resource.

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Figure 1 Regional Stratigraphy of the North-Central Bowen Basin

The area covered by EPC 1768 was previously drilled by Xstrata prior to Rio Tinto acquiring the project. All drill holes are reported as having intersected coal, which Mozambi considers to be very encouraging. Previous drilling was sparse and coal seams intersected still have not yet been correlated. Mozambi has started to compile and database all historical drilling, local field mapping, photogeological studies, and interpretation of airborne geophysics available. Of assistance is recent government mapping and the publication of the Northern Bowen Basin Geological Framework map in 2008. Figure 2, below, highlights various prospective zones F

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Figure 2: EPC 1768 Prospective Zones based on Regional Mapping

Initial drilling by Xstrata in the period 2006-2009 was widely-spaced and intersected a wide variety of rock types including coal. Figure 3, below, illustrates a partial lithological section from borehole R2012 which intersected coal seams typical of the Fort Cooper Coal Measures.

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Figure 3 R2012 Intersections of banded, high ash coking coals of the Fort Cooper Coal Measures

Sometimes, though, large intersections of coal (refer to Figure 4, Borehole R12009, which intersected 50m of dull, uncindered coal) were recorded. It is likely that the drilling on this occasion intersected a 5-6m coal seam steeply-dipping, with the drill bit penetrating down the axis of the seam. Because of ground stability issues the hole was logged through rods so the geophysical logging was inconclusive as to whether this is a very thick Fort Cooper Coal Measures seam or Rangal Coal Measures seams fault repeated.

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Figure 4 Historical borehole (2006) R12009 completed by XStrata

Resource Potential Mozambi’s exploration strategy for EPC 1768 is targeting:

• 1-3 deposits of 20-50Mt size insitu made up of coal shallow enough to open cut in multiple benches: dips 5 -40 degrees and OB ratio of <15:1;

• Multiple seams across three formations with a combination of all coal sales types: Thermal, PCI, export semi-soft and hard coking coals; with majority PCI coal;

• Exploration based around intrusion-free areas and seams; Based on currently available data, estimates of Exploration Targets were made as listed in Table 1, below:

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Table 1 EPC 1768 Estimation of Exploration Target Ranges for Various Formations

EPC Formation Area Cumulative Thickness

Average Depth

Average Depth

Gross Insitu

Tonnage

Expected Raw

Calorific Value

Expected Raw

Calorific Value

Unexpected Geological

Loss

Residual Mass

Exploration Target

Exploration Target

km2 (m) Lower Bound

(m)

Upper Bound

(m)

Mt Lower Bound

(Kcal/kg)

Upper Bound

(Kcal/kg adb)

%vol Mt Lower Bound (Mt)

Upper Bound (Mt)

1768 Rangal CM 20.0 3.0 25.0 250.0 87.0 5800 6300 25 65.3 20 60 1768 Fort Cooper CM 18.0 10.0 25.0 250.0 217.5 5500 5800 50 108.8 40 90 1768 Moranbah CM 3.0 8.0 25.0 250.0 42.0 6000 7000 25 31.5 10 20

70 170

1. Regardless of actual coal quality results, coals from all Formations have been given an average wet, insitu density of 1.45 g/cc;

2. Total tonnages in situ estimated with non-weathered seams un-intruded and >0.3m. Based on density log coverage seams, with raw ash <50% (adb);

3. Unexpected geological loss mainly due to dips, intrusions, and seam splitting and thinning over large distances between boreholes;

4. It should be noted that the tonnages quoted above are conceptual in nature and there has been insufficient exploration to define a coal resource. Some coal quality data within the project area was uncovered in previous reports for the Rangal Coal Measures. Although a preliminary analysis was undertaken, insufficient data exists to confidently correlate coal seams and generate a grid mesh model. However, further exploration is likely to lead to the reporting of a JORC-standard resource. There is some evidence to support the current exploration tonnage calculations, and the sufficient coal thicknesses interpreted from historic drilling to warrant further investigation in some areas. These estimates are designed to comply with the 2004 JORC Code.

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Conclusions Exploration success in EPC 1768 will most likely depend upon planning a tightly-focussed exploration drilling program simultaneously geared to characterising local structure and coal quality variations in an expected multi-seam, multi-product, multiple bench open-cut mining operation. Such a program will require design and implementation of north-east- trending 2D seismic lines, to be spaced at 4km intervals and completed prior to a closely-spaced drilling program being implemented. Such an exploration plan would be based around:

• Identifying “relatively benign” areas based on interpretation of high resolution 2D seismic lines at 4km spacing;

• Mapping local structure and demarcating areas of <25 degrees dip; • Drilling and coal quality sampling based on closer-spaced drilling (initially 500m); • Any mining plan would be similar to that of Bandanna Energy’s (ASX:BND) Dingo

West Deposit and such complex structure is already being mined in the Bowen Basin, e.g.

o AAMC’s Dawson North and Foxleigh Mines; o Yancoal’s Yarrabee Mine; o Wesfarmers Curragh Mine;

Mozambi’s technical consultant has advised that an Exploration Target of a metallurgical coal product for EPC 1768 would be in the range of 70Mt to 170Mt.

EPC 1768 – BOWEN RIVER – LOCATION

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COAL RESOURCE STATEMENT OF COMPETENCE AND COMPLIANCE Technical information on Mozambi Coal Limited's Queensland coal projects discussed in this memo have been compiled by Mr Mark Biggs, Principal Geologist of ROM Resources Pty Ltd. Mr Biggs is a member of the Australasian Institute of Mining and Metallurgy and has the experience relevant to the style and type of coal deposit under consideration and to the activity which is being undertaken to qualify as a Competent Person as defined by the Australasian Code for Reporting of Minerals Resources and Reserves (JORC) 2004. The resource information in this report is being released to the Australian Stock Exchange. Mark Biggs consents to the inclusion in the report of the matters based on this information in the form and context in which it appears. The report is based on factual geological data acquired by Mozambi Coal Limited over a period of several months as well as pre-existing data from Government stratigraphic drilling and private company coal exploration. Interpolation and extrapolation of data has been avoided in most cases but where necessary it was done with due consideration of the JORC Coal Guidelines. Whilst significant coal intersections are present within most of the coal tenures discussed, insufficient data exists to estimate coal resource tonnages to the JORC standard at this time. . 1 It should also be noted that the Exploration Target tonnages quoted in the above Table are conceptual in nature, that there has been insufficient exploration to define a Coal Resource and that it is uncertain if further exploration will result in the determination of a Coal Resource

Name Job Title Registration Experience (Years) Signed

M Biggs Principal Geologist ROM Resources Pty Ltd

AusIMM 107188 28

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