African Energy’s projects are located sedimentary rocks of the Karoo Supergroup. The Karoo has been long known as an important host for the vast reserves of coal in Southern Africa, and was also the focus of considerable exploration for uranium in the late 1970’s. Since that time, very little uranium exploration has been undertaken due to historically weak prices for the metal, prices which have recovered substantially in recent years as demandfor energy resources has grown globally.

Karoo sediments are widespread across southern Africa with thick sequences preserved in areas of rift basins such as the Kariba Valley and Luano-Luangwa Valley in Zambia. The oldest rocks of the Karoo (the Lower Karoo) are the most prospective for coal, and they contain most of South Africa’s coal reserves. Significant coal reserves also occur in the Lower Karoo sediments of Zimbabwe and Zambia.

Most of the known uranium mineralisation occurs in the Upper Karoo sediments in Zambia, Malawi, Tanzania, Mozambique and South Africa. The uranium mineralisation is of the style referred to as “sandstone-type uranium deposits” which have been the source of a significant proportion of uranium ore production globally. The largest known uranium deposits in the Karoo of southern Africa are Kayelekera in Malawi which contains over 15,000t of U3O8; West Beaufort in South Africa and Kanyemba in Zimbabwe.

African Energy has utilised its detailed understanding of the known uranium and coal deposits of southern Africa to acquire an extensive portfolio of projects covering prospective areas in the rift basins filled with Karoo sediments, including access to projects owned by Albidon Limited through an Exploration Agreement (Figure 2). This portfolio includes a number of known occurrences of uranium and coal which the Company will evaluate as a high priority part of its program. The Company also believes there is excellent scope for further significant discoveries in these basins.

Figure 2 African Energy's project locations in the Karoo Basins of Southern Africa)

Projects Overview MalawiZambiaBotswanaZimbabwe