May 2006 Moving from Exploration to Resource Definition 2006 drilling to establish resource status

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May 2006Moving from Exploration to Resource
Definition2006 drilling to establish resource
status
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Disclaimer

• The information contained in this presentation is
  subject to updating, completion, revision,
  further verification and amendment without
  notice. This presentation does not constitute, or
  form part of, any offer or invitation to sell or
  issue, or any solicitation of any offer to
  purchase or subscribe for, any shares in Zambezi
  Resources Limited (ZRL), nor shall it (or any
  part of it) or the fact of its distribution, form
  the basis of, or be relied on in connection with,
  or act as an inducement to enter into any
  contract or commitment therefore.
• No representation or warranty, express or
  implied, is made or given by or on behalf of ZRL,
  any of ZRLs directors, or any other person as to
  the accuracy or completeness or fairness of the
  information or opinions contained in this
  presentation and no responsibility or liability
  is accepted by any of them for such information
  or opinions or for any errors, omissions,
  misstatements, negligent or otherwise, or for any
  communication written or otherwise, contained or
  referred to in this presentation.
• Accordingly, neither ZRL nor any of the ZRL
  directors, officers, employees, advisers,
  associated persons or subsidiary undertakings
  shall be liable for any direct, indirect or
  consequential loss or damage suffered by any
  person as a result of relying upon the statement
  or as a result of any admission in, or any
  document supplied with, this presentation or by
  any future communications in connection with such
  documents and any such liabilities are expressly
  disclaimed

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Corporate Financial Summary

• Market Cap - 14 - 16 million
• Zambezi Resources Limited LSE (AIM) ZRL ticker
• 94.5 million shares on issue
• 4.5 million executive staff options on
  Issue
• 1.1 warrants
• 101.1 million shares fully diluted
• Share Holders
• Top 10 Shareholders own 70
• 500 registered shareholders
• Major shareholders includeRAB Capital,
  Fidelity, Mineral Securities, JP Morgan,
  Jutland Nominees, MG, Morley Funds
  Management, Credit Suisse, Colonial First
  State, Management
• Note - London Institutional Investors, -
  Seed Investors

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Zambia Combination of Political and Geological
Risk

• Infrastructure
• Industrialised Copperbelt
• Low Cost Hydro-electric Power
• Mining Workforce
• Two Universities with Mining Degree/ Mining
  Educated Local workforce
• Revamped Main Roads

• Political Risk
• Non Tribal
• Stable Democracy since 1990
• New Mines Act 1995
• No history of civil war
• Strong non government institutions

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Zambezi History and Development

• 1997 Founding Director established presence in
  Zambia
• 2003 February, Mwembeshi Registered in Zambia
• 2004
• February, Zambezi established and seed capital
  raised
• July, Zambezi completes 2.5 million IPO on
  Londons AIM
• August, Exploration commences in Zambia
• 2005
• February, exploration results from brief field
  season confirm copper/gold mineralization and
  gold endowment on properties
• April, Secondary placement to raise 5 million
• July, Exploration team increased four fold
• November, Nickel IPO spin out in AIM completed
• December, Uranium anomaly identified
• 2006
• February, Chakwenga area becomes apparent as
  potential major gold camp reinforced by
  positive results at Moiya and Kangaluwi
• March, Oryx Uranium project gains momentum with
  positive mineralogy assessment
• April, Cheowa Copper Project gains momentum with
  positive VTEM results

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2006- Establishing JORC Resources

• 18 months solid exploration work in Zambia
• 30 staff/12 Geologists/2 drilling contactors/
• four drill crews mobilised for field season
• close government relations
• Progress hampered by drill rig availability
• Mineral and Energy Prospecting Licences covering
  17,300 km2 in Zambia
• Assets
• 49 Interest in Zambezi Nickel (Valued at 2.3
  million)
• 2 million Cash on hand at March 2006
• Establishing JV partnerships
• Core Zambian Projects identified prioritised
• Gold Drilling out Chakwenga, a major new gold
  province
• Nickel Drilling Mitaba River a very large
  disseminated Nickel Sulphide Target
• Copper Major breakthrough with VTEM drilling
  testing multiple EM anomalies at Cheowa
• Uranium Fast Track Development Plan being
  executed

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Chakwenga Priority Project
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Chakwenga
Chakwenga A new gold camp beckons

• Best Trench Results

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Chakwenga - Regional Opportunities
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Kangaluwi Moiya
The first two regional targets are stacking up!
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Chakwenga Regional
Helimag a quantum leap in knowledge!
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Gold - Chakwenga

• Project Characteristics
• Historical Mine (1940s)
• 900m geochem anomaly with multiple trenches
  completed in 2004 2005
• Wider lower grade selvedge adjacent to high grade
  veins,
• 6km strike length at Chakwenga Main
• Two major neighbouring projects multiple
  regional targets
• Development Schedule
• April-completed environmental base line study
• May - commencement of drilling with tracked rig
  at Chakwenga
• July - target Drilling at Moiya and Kangaluwi
• Planned Multiple Rig drilling of Chakwenga from
  August onwards
• Target to establish significant JORC compliant
  resource prior to feasibility and possible
  development

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Copper Project - Cheowa Neningombe
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Copper - Cheowa
three bulls eye drill targets from VTEM data!
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Copper - Cheowa
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Copper - Cheowa
VTEM very effective

• Project Characteristics
• Anglo Discovery in 1960s
• Anglo drilling confirmed copper sulphide and gold
  intersections from IP anomalies
• 15km plus gold and copper geochem anomaly,
• VTEM successful in identifying massive sulphide
  conductors
• Development Schedule
• Fly VTEM over additional 12km of geochem strike
  length in May
• Commence test drilling of three VTEM targets in
  May
• June, VTEM interpretation and assaying of drill
  results
• July onwards, commence drilling of multiple
  targets if successful

April 2006 3D interpretation of VTEM with
historical Anglo data has prompted Zambezi to
fast track extension of VTEM coverage over 16km
of strike length
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Nickel ZRL Retains a 49 Interest in ZNI
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Nickel - Mitaba River
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Nickel
Pursuing Significant Nickel Production

• Project Characteristics
• Anglo Discovery in 1960s
• Anglo drilled a few drill holes
• Successive flow Komatiite style deposit similar
  to Mt Keith
• Project footprint 2 - 3 times size of Mt Keith
  pit
• Development Schedule
• Drilling of 4,300m programme has commenced to
  test two main projects
• June July, Mineralogy Investigation Met
  Testwork
• August, Inferred JORC resource compilation
• October onwards multiple rig drill out campaign

The key issues in proving up Mitaba as a
significant global nickel resource will be
proving up mineralogy, namely nickel tenor,
nickel to sulphur ratio and metallurgical
characteristics
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Uranium Oryx
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Uranium - Oryx
Additional Value from Existing Assets

• Potentially high grade mineralization
• 6.4 Uranium in first sample Davidite
• Current Deposit Interpretation
• Intrusive type
• Multiple sheeted veins
• Large Anomaly
• 1.5km by 6 km
• Multiple Other, smaller anomalies exist nearby

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Oryx - 2006
Uranium A fast track development schedule

• Project Characteristics
• extensive surface expression, amenable to
  multiple rig drill out campaign
• Historically Davidite mineralisation has been
  treated by low cost, physical beneficiation with
  subsequent upgrade prior to acid leaching
• Upgraded concentrate is inert and suitable for
  bulk transport
• Development Schedule
• April ground exploration commenced
• May - trenching, structural interpretation and
  geological validation
• June July Assay confirmation, drill rig
  mobilisation
• Fast Track Program if Successful
• Aug Sept Bench Scale upgrade testwork,
  assessment of drilling results to confirm mineral
  endowment, leach testing
• Oct Dec Bulk testwork to validate upgrade
  testwork and generation of bulk samples for
  offtake testwork
• 2007 Jan Mar, Prefeasibility Study Completed

April 2006 - Initial structural interpretation
of helimag data and spectrometer results has
confirmed the geological model
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Zambezi - A Value Investment Opportunity

• Zambia
• A great place to be
• A combination of political risk and mineral
  endowment
• A Huge Mineral Endowment
• Targeting IOCG Copper Gold
• Also found Nickel Uranium
• Execution Capability
• 12 Geologists on Staff
• A modern office in Lusaka
• Established network of local suppliers

• Zambezi (AIMZRL)
• Commodities Cu, Au, Ni, U
• Market Cap. 15 mil.
• Comparative Companies
• Albidon (AIMALD) Nickel
• Market Cap. 35 million
• African Eagle (AIMAFL) Cu Au
• Market Cap. 22 million
• Teal (TSXTL) Cu Au
• Market Cap. 142 million
• Other Zambian Companies
• First Quantum (TSXFM)(Cu)
• Market Cap. 1,543 million
• Equinox (TSXEQN)(Cu, U)
• Market Cap. 310 million
• Note All values are at 18 May 2006. For TSX
  listed companies, the exchange rate assumed is 2
  C

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Summary of Priority Projects

• Gold
• First Mover Advantage
• Chakwenga is proving to be a major new gold
  province.
• Targeting a 1 million oz JORC resource, commence
  drilling in May 2006,
• Major Regional Prospectivity with additional
  drill targets for testing later in 2006

• Copper/Gold
• Modern Exploration Effective
• 2005 VTEM effective in defining multiple massive
  conductors co-incident with surface copper and
  gold geochem anomalies
• copper and gold in 15km long shear
• Drilling commencing in May

• Nickel
• Large Disseminated Ni Sulphide
• Zambezi retains strategic 49 stake in Zambezi
  Nickel (AIM ZNI)
• 2005 exploration confirmed geological model
• 4000m diamond drill campaign commences April 06

• Uranium
• Discovery, Nov 2005
• The nature of mineralisation (Davidite), extent
  of the anomaly (2km X 6km) and grade (6 in rock
  chip) favours a fast track development schedule
• Fast Track program commenced in April 06 at start
  of field season

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Appendix - Map of projects
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Exploration The Big Opportunity
All Information is from UBS Research, Issue 12,
January 2006