Disclaimer. Paul Miller, Managing Director JSE New Companies Showcase 7 August 2008

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1 Paul Miller, Managing Director JSE New Companies Showcase 7 August 2008 Disclaimer All statements in this presentation, other than historical facts, that address exploration activities and mining potential are forward-looking statements. Although Keaton Energy believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements should not in any way be construed as guarantees of future performance. Factors that could cause developments to differ materially from those expressed include exploration results, technical analysis and lack of availability to the company of necessary capital to progress its projects. The company is subject to specific risks inherent in the exploration and mining business and general economic and business conditions. 2 1

2 Who we are New SA coal explorer and developer Motivation increase in demand for coal changed SA mineral rights dispensation Founded by Rutendo Mining and the Pouroulis family in 2006 Three advanced development projects, pipeline of exploration prospects JSE main board listing on 22 April 2008 following R100m private placing at R10 per share 142 million shares in issue, R400 million in treasury post listing 3 Share price performance * 4 * Nedcor Securities Junior Mining and Exploration Index 2

3 Our projects Bela-Bela 29º Mokopane 30º PRETORIA Middleburg South Africa Belfast N1 N N14 KLIPFONTEIN WITBANK Duvha JOHANNESBURG N12 Kendal Hendrina DELMAS Matla Kriel N3 Heidelburg STERKFONTEIN Bethal Mbabane 0 30 km Secunda ERMELO Grootvlei Tutuka Harrismith 29º Standerton Volkrust 30º 5 Our projects Klipfontein Project Bela-Bela 29º Mokopane 30º Witbank coal field PRETORIA Small deposit less than 0.5Mt N14 Mining permit application made approval in weeks N N1 Objective is early cash flow JOHANNESBURG ahead of production N12 KLIPFONTEIN Kendal Middleburg WITBANK Duvha Hendrina South Africa Belfast DELMAS Matla Kriel N3 Heidelburg STERKFONTEIN Bethal Mbabane 0 30 km Secunda ERMELO Grootvlei Tutuka Harrismith 29º Standerton Volkrust 30º 6 3

4 Our projects Project Bela-Bela 29º Mokopane 30º Witbank coal field PRETORIA 200 hole drilling programme complete N Mt mineable in situ N resource N Mt bituminous JOHANNESBURG 41.6Mt lean coal Mining Right application made on 31 March 2008 Mining scheduled to begin early 2009 Open pit operation N3 - mainly Heidelburg domestic steam coal with some export quality and metallurgical coal N12 KLIPFONTEIN Kendal Matla 0 30 km DELMAS Kriel Secunda Middleburg WITBANK Duvha STERKFONTEIN Bethal Hendrina South Africa ERMELO Belfast Mbabane Grootvlei Tutuka Harrismith 29º Standerton Volkrust 30º 7 Our projects Sterkfontein Project Bela-Bela 29º Mokopane 30º Highveld coal field PRETORIA 132 drill holes completed thus far N14 34Mt mineable in situ resource 50% export coal N N1 33% domestic steam coal JOHANNESBURG Underground operation N12 KLIPFONTEIN Kendal DELMAS Middleburg WITBANK Duvha Hendrina South Africa Belfast Matla Kriel N3 Heidelburg STERKFONTEIN Bethal Mbabane 0 30 km Secunda ERMELO Grootvlei Tutuka Harrismith 29º Standerton Volkrust 30º 8 4

5 Cape Town Our projects Amalahle Prospects Ermelo coal field Six discrete properties totaling hectares Prospecting right granted in April 2008 R3.5 million exploration programme in progress 9 Our projects Mafla Prospect Klip River coal field hectare property Prospecting right granted in July 2008 Targeting anthracite and/or coking coal Memel Johannesburg30 E Newcastle N 11 Madadeni Osizweni Utrecht Vryheid 31 E Louwsburg Kingsley 28 S Dannhauser MAFLA PROSPECT 28 S Hattingspruit AFRICA N 11 Glencoe Dundee km Mel moth Wasbank 0 30km LEGEND Ladysmith 30 E Greytown 31 E Melmoth Town National Roads Main Road 10 5

6 Exploration pipeline Johannesburg Ellisras Waterberg prospect extension Sterkfontein extension Keaton Energy has submitted prospecting right applications over an exploration pipeline of more than ha Will make further applications when opportunities present Continue to look to partner with holders of prospecting rights contiguous to our existing projects Utrecht prospect Action plan Project Actions Klipfontein Mining permit in +/-6 weeks Mining right application submitted Sterkfontein Amalahle Mafla Ongoing exploration and mining right application in progress Prospecting right granted, drill rig on site Prospecting right granted 12 6

7 The domestic coal market Meanwhile, the price differential between export and local coal price has been increasing drastically. The export price in Feb 08 reached R 850/t and the SASC FOB price on 11 July 2008 was $ /t SA coal production growth has effectively been zero for the past three years - Eskom forced to use discard coal. 13 Source: Eskom presentation to the Fossil Fuel Foundation Conference July 2008 The export coal market US$/t FOB Richards Bay South African spot coal index ( Barlow Jonker) Ave monthly achieved export price (DME: Minerals Economics) 20 0 Jan-03 Apr-03 Jul-03 Oct-03 Jan-04 Apr-04 Jul-04 Oct-04 Jan-05 Apr-05 Jul-05 Oct-05 Jan-06 Apr-06 Jul-06 Oct-06 Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Source: Barlow Jonker 14 7

8 Why buy our share? No better time for coal in SA and internationally with robust domestic and export markets these fundamentals remain sound Company designed from inception to be fully compliant with new Mineral Rights dispensation no future dilution Strong, experienced team Available capital to get into production R400m in treasury at listing no need to raise money in current market conditions Excellent projects and prospects in the right locations good product spread active exploration pipeline rapid exploration/development/production trajectory 15 Paul Miller, Managing Director JSE New Companies Showcase 7 August