Prospects – African Energy owns, or is earning an interest in eight uranium projects in Southern Africa. These projects range in maturity from advanced projects, such as the Njame Prospect within the Kariba Project in Zambia, to large tenement holdings with prospective geology but no drilling to date.

The Directors believe that these projects have potential for the discovery of substantial sandstone-type uranium deposits, similar to Kayelekera in Malawi (18.7 Mt @ 830ppm U3O8) and also deposits of coal such as those extracted from Hwange Colliery in Zimbabwe. These deposits and many smaller uranium and coal occurrences are hosted in sediments of the Karoo Supergroup. All of African Energy’s projects are located over similar sediments of Karoo age.

Strategy – African Energy has a straightforward strategy:

• Undertake drill programs to define the resource potential of the uranium prospects already identified on its licences and evaluate these for rapid development;
• Utilise its database to identify additional uranium, coal and coal bed methane exploration projects that have the potential to be developed into mines within a few years; and
• Continue to develop a strategic landholding position over Karoo sediments in countries with favourable infrastructure, attractive fiscal regimes and political stability. Implementation of this strategy will be assisted by the extensive business network developed by the Directors and senior management in Southern Africa. The Company derives additional strategic advantage from its proprietary database and application of state-of-the-art exploration techniques.

Objectives – The primary objective of African Energy is to create value for its shareholders through the exploration and development of energy minerals projects in Southern Africa. The Company aims to achieve this goal through:

• Expanding the uranium resource at Njame North through ongoing exploration, and
  
• Focused selection and evaluation of new exploration opportunities with potential for rapid development.

About African Energy Resources Prospects, Future Strategy and Objectives