July 2010

www.zambeziresources.com

Mwembeshi Resources –

Kangaluwi Copper Project

David Russell CEO February 2011

Slide 2

Some background

ZRL has spent over $40m on exploration in

Zambia on Copper and Uranium projects

During GFC hit by a Perfect Wave with JV

partner pulling out, and heavy funding

requirements for Cu and U exploration projects

In 2008 ZRL unable to raise cash as markets and

metal prices sagged. Recapitalisation essential

LinQ Resources Fund took up challenge and

injected capital, new board and management

Rescue plan implemented by LinQ – focused on

new strategic initiative for potential early cash

flow

Slide 3

Zambezi Resources (ASX-ZRL)

Issued Share Capital 1220m Ordinary Shares

Hi / Lo $0.065 - $0.013

Current Price $0.021 (January 11th 2011)

Market Capitalisation $25.62m

Unlisted Options 1.85m @ £0.13 Expiry 31/3/11

3.08m @ £0.20 Expiry 31/8/11

136.25m @ $0.01 Expiry 0/11/12

5m @ $0.02 Expiry 5/5/13

30m @ $0.02 Expiry 31/5/13

Major Shareholders RBC Dexia Investor Services 26.1%

Southo Investments 5.33%

Glencore Investments 3.75%

Slide 4

Directors and Management

Willie Sweta MSc (Met) Dipl (Min Eng).

Chairman - Mwembeshi Resources Limited.

David Vilensky BA LLB. Non-Executive Chairman - Zambezi Resources

• Corporate and resources lawyer

Richard Procter BSc (Eng), MBA, CEng, MIMMM. Non-Executive Director

• 30 years global experience as Mining Engineer and Consultant

Pierre Malherbe BComm Investment Management; B.Comm Acc. (Hons);

M.Comm Business Management. Chief Financial Officer

Simon Durack B.Comm, Post Grad Dip Bus, CA, FCIS Non Executive Director

• Chartered Accountant and Company Secretary

Emmanuel Heyndrickz MSc Bus Econ MSc Fin Mngmnt

Non-Executive Director. Independent Financial Consultant

David Russell BSc Geology and Zoology, BSc (Special) Hons Geology,

MAusIMM, MGSSA, FFin, MAP and SMP (Wits Graduate School of

Business). Chief Executive Officer Zambezi Resources

Slide 5

Why Zambia?

Zambia has a long history of

mining and exploration, back to

early part of 20th century

Mining and exploration well

understood by the Government

Well established mining culture

prevalent and industry

encouraged by authorities

Excellent permitting system based

on Cadastral system

Fraser Institute ranks Zambia as

24 /41 countries globally in its

annual benchmark mining survey

of risk

Better than South Africa - 26/ 41!

Only 3 out of top 5 uranium

producing countries ranked higher

than Zambia in terms of risk

Nchanga Open Pit, Chingola

Nkana Open Pit, Kitwe

Slide 6

Zambia – Attractive Infrastructure

Power –

– Kariba Hydroelectric

scheme 1800MW,

reticulated directly to

Copperbelt

Water –

– Excellent supplies from

major rivers - Kafue,

Luangwa, Zambezi plus

Kariba Dam

Transport –

– Sealed road and rail links

directly to South African

and Tanzanian ports

Slide 7

Zambezi’s Copper and Uranium Portfolio

COPPER EXPLORATION PORTFOLIO

– Mwembeshi Resources - Kangaluwi- New assay

programme will potentially increase resource base up

from existing 23.4mt at 0.85% Cu (from only 25% of

existing strike)

– Cheowa (JV with Glencore) - resource base of 6.5mt

at 1.13% Cu

HARD ROCK – Chingola Dumps

– SX- EW processing of copper dumps is quickest route

to generating significant cash flow

URANIUM EXPLORATION PORTFOLIO

– Uranium portfolio of highly prospective, ready to drill

uraniferous targets

Slide 8

Re-precipitated Copper oxides at base of dumps

Slide 9

Kangaluwi Copper Project - Location Map

Slide 10

Typical landscape in Zambezi National Park

Slide 11

Zambezi’s Commitment to Kangaluwi

Since 2003 when licence granted to subsidiary

Mwembeshi Resources, Zambezi has spent over US$12

million on project

This has included extensive geophysical and geochemical

reconnaissance studies leading to delineation of the

Kangaluwi, Chisawa and Kalulu prospects

Prospects have been partially drilled by Diamond Drilling

and Reverse Circulation Drilling – over 50,000m drilling

Revised Resource Estimate to AusIMM JORC standards of

23.4mt at 0.85% Cu for around 200,000t contained Cu

Environmental Base Line studies initiated in 2006 along

with initial Consultation Process

Large Scale Mining Licence Application made in

December 2010

Slide 12

Additional assay results pending

Further assaying from

deeper drilling at

Kangaluwi remain

pending.

Will materially add to

the current Indicated

Mineral Resource.

Assays from the

Imboo prospect to be

conducted

Slide 13

Exploration Drilling

All diamond drilling core

and RC drilling samples in

storage in Lusaka

Commenced process of

submitting outstanding

samples for assay

Only 25% of strike has

been drilled

New assays may

significantly add to

resource base at

Kangaluwi

Slide 14

Staged process towards development decision

• Following grant of LSML, the next stage will be

conducting a Definitive Feasibility Study

• This detailed study will cover ALL aspects relating to

developing a mine and related infrastructure –

environmental, legal, technical, financial, social,

political issues

• All issues addressed to world’s best practice standards

(Equator Principles and World Bank Standards)with

emphasis on health and safety of Zambezi personnel,

contractors and sympathetic to all involved communities

• If this is positive and financing can be arranged the

intention would be to proceed to construct, commission

and operate a copper mine at Kangaluwi

Slide 15

Project Location and National Parks and Game management areas

Slide 16

Slide 17

Precedents for Mining coexisting with National

Parks

United States – Yellowstone National Park

Stillwater Platinum Group Metal Mine and Processing

facilities, owned by Nor’ilsk

South Africa – Kruger National Park

Palaborwa Copper Mine and Smelting facilities

Australia – Kakadu National Park

ERA Uranium mine and processing plant

South Africa – Kruger National Park

Exxaro Tshikondeni Coking Coal Mine

South Africa – Mapungbugwe World Heritage Site

Coal of Africa Vele Mine

Zambia – Lower Zambezi National Park

Chakwenga Gold Mine (closed 1940)

Slide 18

Mining Heritage at Chakwenga

Slide 19

Elephants at Palabora Copper Mine

“Fancy going to work and experiencing roaming animals as a common occurrence, what fun! Rio Tinto’s Palabora Mining Company

(PMC) is one such workplace which is close to the Kruger National Park (KNP) where inquisitive elephant bull came to visit”.

Source : SANParks website - Africa's Premier Wildlife Tourism Destinations

Slide 20

Elephants within RTZ’s Palabora Copper Plant

http://www.sanparks.org/groups/hr/news/2009/rio_tinto_adventure.php?PHPSESSID=udeinvcdabtm9fdmdiiujq7914

Slide 21

Kangaluwi overlay on Regional Geology

Slide 22

Globally Recognised Consultants used

ENVIRONMENT GeoQuest Consulting of Lusaka, to

conduct detailed environmental studies (EIS) and

incorporate all previous studies by GCS Consultants,RSA

RESOURCES Caracle Consulting of Lusaka has been

involved in the preparation of Resource Estimates (to

AusIMM JORC standards) for the Kangaluwi Copper

project

MINING CSA Global Resource, from UK, to conduct

Whittle Pit optimisation studies over the established

resources at Kangaluwi to establish the best pit design

METALLURGY Mineral Engineering Technical Services of

Perth, Australia to provide metallurgical Testwork on

Kangaluwi ore samples. Metallurgical Management

Services of Perth for Concentrator design

Slide 23

Kangaluwi Copper Prospects

Slide 24

Slide 25

Kangaluwi Copper Project

Adjacent to an EXISTING old mine - Chakwenga

Comprises multiple prospects in application area

» Kangaluwi

» Chisawa

» Imboo

» Kalulu

50,000m RC and diamond drilling confirmed structural

controls to sulphide mineralisation

Chalcopyrite, bornite, malachite and azurite

mineralisation intersected in multiple stacked shoots

Completion of priority assaying and JORC compliant

resource (23.4mt at 0.85% Cu )-Chisawa and Kangaluwi

only for 200,000t contained Cu

Slide 26

Kangaluwi Prospect Cross Section

Slide 27

Chisawa and Kalulu

Intersections up to 10m wide to depths of

150m of high grade copper mineralisation in

schist with pegmatite intrusives

Mineral zoning with bornite and chalcopyrite

dominant at depth

Strike of 4.1km at Chisawa and 1.3kms at

Kalulu. Remains open along strike at depth

At Imboo prospect mineralised zones up to 4m

wide with disseminated copper mineralisation

(chalcopyrite / bornite)

Slide 28

Chisawa Prospect Drill Section

Slide 29

Kangaluwi Copper Project

Prospect Measured Indicated Inferred Totals

Tonnes Grade Tonnes Grade Tonnes Grade Tonnes Grade

(t) (% Cu) (t) (% Cu) (t) (% Cu) (t) (% Cu)

Kangaluwi - - 8,907,000 0.78 8,907,000 0.78

Chisawa - - 14,500,000 0.90 14,500,0000 0.90

Totals 8,907,000 0.78 14,500,000 0.90 23,400,000 0.85#

#For 199,265t Cu contained

Slide 30

Location – Conceptual Mine Site

Slide 31

From Resources to Mine Planning

Based on the initial Resource Estimation by

Caracle Consulting of Lusaka, Zambezi engaged

CSA Global as mining consultant

Conducted Whittle Pit Optimisation studies over

the Kangaluwi and Chisawa prospects

Prepared open pit mine design and scheduling

for open pits to operate at 1.5Mtpa

Prepared estimates for Capital and Operating

Costs, included manpower and site

infrastructure requirements

Concluded project is “financially viable

operation”

Slide 32

Proposed Mine Production Plan

To process 1.5Mtpa from open pit mines at Kangaluwi

using modern, environmentally approved metallurgical

processing as per existing Cu mines in Australia

Rock crushed and processed by flotation cells to

separate sulphide ore from waste rock. No cyanide used

Relatively benign reagents used at ppm level as flotation

agents. They breakdown in sunlight.

95% recoveries from ore to produce 14,000 tpa of Cu in

concentrate with small gold credit

Waste to properly constructed tailings dams (tailings are

only ground up rock with the Cu removed)

Dry Cu concentrate transported to smelter either in

Zambia or offshore to produce Cu metal

Slide 33

Conceptual Flowchart

Slide 34

Ranking of Copper Deposits by contained CuKangaluwi - Indicated and Inferred Mineral Resource

Rank Deposit Country Resources Mt Average Cu% Contained Cu Mt

1 Olympic Dam Australia 3810 1.00% 38.10

2 La Candelaria Chile 470 0.95% 4.47

3 Sossego Brazil 355 1.10% 3.91

4 Mantoverde Chile 630 0.53% 3.34

5 Igarape Bahia Brazil 219 1.40% 3.07

6 Salobo Brazil 256 0.90% 2.30

7 Ernest Henry Australia 166 1.10% 1.83

8 Punta del Cobre Chile 120 1.50% 1.80

9 Mina Justa Peru 209 0.86% 1.80

10 Prominent Hill Australia 119 1.30% 1.55

11 Cerro Negro Chile 249 0.40% 1.00

12 Madhan Kudhan India 66 1.50% 0.99

13 Kitumba (0.5% cut off) Zambia 87 0.94% 0.82

14 Teresa del Colmo Chile 70 0.80% 0.56

15 Kolinan Chandmari India 40 1.35% 0.54

16 Banwas India 30 1.70% 0.51

17 Sin Quyen Vietnam 53 0.91% 0.48

18 Guelb Moghrein Mauritania 24 1.88% 0.45

19 Raul Condestable Peru 25 1.70% 0.43

20 Osbourne Australia 11 2.90% 0.32

21 Mount Dore Australia 26 1.10% 0.29

22 Montecristo Chile 15 1.60% 0.24

23 KANGALUWI ZAMBIA 23.4 0.85% 0.20

24 Productora Chile 13 1.35% 0.18

25 Eloise Australia 3 5.50% 0.17

26 Stara Australia 7 1.90% 0.13

27 Cobrepampa Peru 4 3.00% 0.12

28 Mount Elliot Australia 3 3.60% 0.11

29 Kalkaroo Australia 30 0.28% 0.08

30 Tocopilla Chile 2 3.10% 0.06

31 Greenmount Australia 4 1.50% 0.06

32 Monterossas Peru 2 1.10% 0.02

33 Monakoff Australia 1 1.50% 0.02

34 Eliana Peru 1 2.70% 0.03

Only 25%

Kangaluwi drilled

Slide 35

Concluding Remarks

Mwembeshi Resources is a Zambian company

backed by Australian listed Zambezi

Resources

Utilised world class technical and financial

consultants to appraise all aspects of project

Mining Licence Application in progress and,

subject to successful outcome of all studies,

(technical, environmental, financial) the

project will proceed to development

Mwembeshi committed to maintaining highest

standards for project development

Slide 36

Competent Persons Statements

The information in this report that relates to Exploration Results is based on information compiled by Mr Jay Klopper BSc (Hons). Mr

Klopper has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the

activity which they are undertaking to qualify as Competent Person as defined in the 2004 Edition of the Australasian Code for

Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Klopper consents to the inclusion in the report of the

matters based on the information in the form and context in which it appears.

The reported Mineral Resource as it relates to the Kangaluwi deposit was completed under the overall supervision and direction of

Jay Klopper, MAIG, who is a Competent Person as defined by the Australasian Code for the Reporting of Exploration Results,

Mineral Resources or Ore Reserves (JORC Code 2004 Edition) and who consents to the inclusion in this report of the matters based

on the information in the form and context in which it appears. The information in this report that relates to in‐situ Mineral Resources

is based on information provided by Zambezi Resources Limited.

The reported Mineral Resource as it relates to the Chisawa deposit was completed under the overall supervision and direction of

Boniface Nquni, MAIG, of Caracle Creek Consulting Zambia who is a Competent Person as defined by the Australasian Code for the

Reporting of Exploration Results, Mineral Resources or Ore Reserves (JORC Code 2004 Edition) and who consents to the inclusion

in this report of the matters based on the information in the form and context in which it appears. The information in this report that

relates to in‐situ Mineral Resources is based on information provided by Zambezi Resources Limited.

Qualifying Statement

This release may include forward‐looking statements. These forward‐looking statements are based on Zambezi’s expectations and

beliefs concerning future events. Forward‐looking statements are necessarily subject to risks, uncertainties and other factors, many

of which are outside the control of Zambezi, which could cause actual results to differ materially from such statements. Zambezi

makes no undertaking to subsequently update or revise the forward‐looking statements made in this release, to reflect the

circumstances or events after the date of this release.

Slide 37