Disclaimer Company Transaction Presentation Agent forward-looking statements

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1 February

2 Disclaimer This document is personal to the recipient and has been prepared and issued by Botswana Diamonds plc (the Company) solely for its use at informational meetings relating to the proposed placing by the Company (the Transaction) and is being delivered on a confidential basis for information purposes only to a limited number of persons. For the purposes of this notice, the presentation that follows (the Presentation) shall mean and include the slides that follow, the oral presentation of the slides by the Company, the question-and-answer session that follows that presentation, hard copies of this document and any materials distributed at, or in connection with, that presentation. By attending the meeting where this Presentation is being made, or by reading the Presentation slides, you agree to be bound by the following limitations. This Presentation has not been independently verified by Westhouse Securities Limited (the Agent). 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Some statements contained in this Presentation or in documents referred to in it are or may be forward-looking statements or forward-looking information (as such terms are understood under applicable securities laws) (forward-looking statements), including, but not limited to, statements as to future operating results, work plans and potential acquisitions and contracts. The forward-looking statements include statements typically containing the words intends, expects, anticipates, targets, plans, estimates and words of similar import. These forward-looking statements speak only as at the date of this Presentation. These statements are based on current expectations and beliefs and, by their nature, are subject to a number of known and unknown risks, uncertainties and assumptions that could cause actual results, performances and achievements of the Company and its subsidiaries to differ. 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3 Company Snapshot Botswana Diamonds is hoping to repeat the success we had at African Diamonds (AFD) in finding a kimberlite diamond mine in Botswana the Karowe Mine Background Experienced management team with prior successful diamond discovery (Karowe) African Diamonds, formed in 2002, identified excellent ground and partnered with world class partners De Beers Result discovered Karowe Diamond mine in Sold in Repeat Success Botswana Diamonds (same team) with excellent ground in Orapa in Botswana 9.46ct Blue: Karowe Source: Lucara Diamonds World class partner in Alrosa the world biggest diamond producer; very successful diamond explorer (17 mines) Active exploration programme 2

4 Why Diamonds? Powerful fundamentals Clear supply-demand gap forming Emerging markets driving growth; Asia rising 40% of Chinese girls now get a diamond ring Indian market growing No significant discoveries in last 10 years Alrosa a growing force, new producing entrants Lucara, Mountain Province, Petra Diamonds Prices remain at historically strong levels 3

5 Why Botswana: Best Address The Switzerland of Africa; stable, wealthy democracy, two million people, one main ethnic group and language World s best address for diamond investment The largest diamond producer (by value) with worldleading diamond mines - Orapa (1972), Letlhakane (1973), Jwaneng (1982) and Damtshaa (2002) New mines: Karowe mine discovered in 2004 by Botswana Diamonds team, producing exceptional stones at average price of $527/ct; 81% gross margin. Ghagoo (Gem) on stream 2014 Alrosa, largest diamond producer in the world, is in Botswana because of high potential of new discoveries by using their proprietary technology Orapa Mine at night Orapa Mine 4

6 pence per share Botswana Diamonds - Background 2003: African Diamonds listed at : AFD then took good ground in Botswana with good partners - De Beers 2004: AFD and De Beers discovered AK6 (Karowe) 2006: Within 3 years of listing the share price had increased to : De Beers sold out their stake of AK6 to Lucara 2010: Lucara subsequently bought out African Diamonds for a consideration of $90m and spun out the exploration assets to shareholders. This became Botswana Diamonds : Botswana Diamonds listed at 0.07 African Diamonds/ Lucara share price 2012: Signed Technical Cooperation Agreement with Alrosa 2013: Formal JV signed with Alrosa and ground identified 2014: Ground acquired and drilling underway 2014: Optioned and farmed out Gope licence block for 15% free carry 2015: $1 million exploration programme 239ct stone mined at Karowe Source: Lucara Diamonds 5

7 Botswana: Alrosa In the 1930 s a Russian geologist identified geological similarities between South Africa and Siberia Alrosa has since discovered 17 kimberlite mines in Russia, producing 37 mcts in 2013 approx. 26% of the entire world s production Currently majority owed by the Russian State. IPO d 16% in October 2013 at a value of around $8bn Geographic diversification into Africa underway Catoca mine 33% share held by Alrosa Exploration programmes in Angola, Botswana & Zimbabwe Botswana Diamonds is Alrosa s sole Botswana partner Alrosa: Open-pit mining operations 50/50 Joint Venture was signed in August

8 Botswana Diamonds/ Alrosa JV Alrosa s unique exploration technology being used to explore up to 200m beneath the Kalahari sand, swamps and basalt in Botswana Botswana Diamonds provided its extensive Orapa database to Alrosa Alrosa analysed the data and produced a series of targets across Orapa The JV applied for extensive ground covering the identified targets The joint venture is a 50/50 heads up; 2015 joint budget of $1 million Fieldwork in Q1 2014, on PL117, targets drilled in late September 2014 Encouraging results increases confidence in the technology New ground awarded May 2014 on which there are high priority targets Alrosa and Botswana Diamonds geologists in the field First phase fieldwork with 7 Alrosa geologists Q budget $1 million focusing on 3 licences, begins late February 7

9 Botswana Diamonds Prospecting Licences in Orapa 8

10 Botswana: PLs /2014 Orapa 5 new PLs awarded in May 2014, Well located in Orapa. Combined acreage 1,357.5 sq km High priority Alrosa targets on this ground. They predict new kimberlites Sand and swamps prevented De Beers success Team of Alrosa and BOD geologists have conducted initial geophysical and geochemical fieldwork Q Work included large sample of concentrate and hard rock samples Electrical and electro-magnetic survey allowed prospecting to depths of m Analysis reveals targets on three blocks PL 206, 207, 210 Orapa 9

11 Botswana: PL 206 Orapa Area PL 206 is prospective for discovery of kimberlites according to mineralogical data 118heavy concentrate samples as well as hard rock samples taken across the licence Kimberlite identifier minerals (KIMs) were found in nearly all samples. These include pyropes, picroilmenites, chrome-spinellids and chrome-diopsides Five areas/haloes identified; very high concentrate of KIM s According to the main mineralogical criteria of diamond productivity (pyrope content of diamond association) the host rocks (kimberlites) of slightly eroded pyropes from local KIM halo are diamondiferous Alrosa report Next step in 2015 is to verify whether KIM s are from Orapa cluster, unknown kimberlites or from new kimberlites in or around 206 Sample on licence. 1 contour of licensed area PL 206; 2 contours of prospective sites; 3 heavy concentrate samples and their numbers; 4 hard rock samples and their numbers. 10

12 Botswana: PL 206 Orapa Slightly eroded pyropes from local KIMs halo

13 Botswana: PL 206 Orapa Haloes of dispersion of KIMs within PL 206 area Sites of ground magnetic survey on area PL

14 Botswana: PL 207 Orapa Two diamonds were found in the sampling, this is very rare Several magnetic anomalies were revealed which can be caused by kimberlite bodies KIM s (Pyropes and picroilmenites) were discovered in all samples Formation of dispersion haloes resulted from erosion of kimberlite bodies situated at various distances The north east of the licence has high concentration of KIMs Next step is to carry out additional heavy minerals sampling and ground geophysical works using TEM-FAST equipment Diamond from heavy concentrate sample 1/1 (20 1), size 2x2 mm Work begins late February

15 Botswana: PL 210 Orapa Specialised recognition (reconnaissance) routes and heavy concentrate sampling of surface loose sediments were carried out KIMs are represented mainly by pyropes Slightly eroded pyropes found are characterized by a chemical composition which generally corresponds to the composition of pyropes from diamondiferous kimberlites The existing data suggest that the pyropes have not travelled far Further additional heavy concentrate sampling is necessary and will be undertaken in 2015 Slightly eroded pyropes from soil samples from area PL 210: South-Eastern part (a, b) and Western part (c, d) 14

16 Botswana: PLs 206, 207 & Exploration Programme PL 206: Next step is to verify whether KIM s are from Orapa cluster, unknown kimberlites or from new kimberlites in or around PL 206 PL 207: heavy concentrate sampling on this licence to discover the travel distance of the KIMs PL 210: sample programme to estimate travel distance of KIMs A TEM survey looking for anomalies Further identification of new areas Exploration begins February Budget $1 million 15

17 Brightstone Farm-out in Gope 13 licence blocks 6,518 sq km in Gope Surrounding area contains Gem s Ghaghoo mine and Petra discovery KX- 36. BOD applied extensive geophysical and geochemical database to the area Identified 3 new targets in the Southwest of the block Alrosa applied its techniques and generated additional targets in the North A joint venture has been agreed with a major mining company BOD has a 15% carry through to Feasibility Study A team has been recruited and work started. Budget $1 million in 2015 No cost to BOD ORAPA 16

18 PLs 170, 166 & 167 (100% owned licenses) 3 prospective blocks awarded: May 2012 (PL170) & August 2013 (PL s 166 & 167); 733 sq km of ground Part of the Orapa kimberlite cluster on the Kaapvaal craton; the ground is known to contain diamonds Initial drilling on PL170 unsuccessful; partners & experts believe the diamond indicator minerals might have travelled from adjacent blocks No work proposed for Focus on the JV licences 17

19 Management Team John Teeling - Executive Chairman Founder of a number of listed resource companies, including African Diamonds. Corporate transactions in the last 4 years have returned $250m to shareholders James Finn - Finance Director 20 years African resource company experience. Director of a number of resource and industrial ventures. Has led the listing procedure for ten AIM companies David Horgan - Director Former director of African Diamonds. Holds a Law degree from Cambridge and an MBA from Harvard. 20 years of exploration experience in Africa and South America Robert Bouquet Commercial Director 20 years' experience in diamond industry, 15 with De Beers and Rio Tinto Diamonds in a variety of strategic and commercial roles Anne McFarland Director Has worked in finance, commodity trading and manufacturing with Glencore, BP and Russian conglomerates. Fluent in Russian 18

20 Outlook Principal aim of the Alrosa Botswana Diamonds JV is to be engaged in geological exploration aimed at discovering primary diamond deposits and subsequent obtaining of the rights for their exploitation Confidence that the JV will find sub surface diamond deposits as already proven in Russia Results of drilling on 117 have been analysed in Russia, no further action Action now on highly prospective new licences PL206, 207 & 210 Gope farm-out will give BOD a 15% carry in a new exploration programme Supply/demand scenario means any commercial discovery will launch into a good market 19

21 Company Overview AIM listed diamond explorer focussed on Botswana Experienced management team with prior successful diamond discovery (Karowe) Good ground in the right areas World class partner in Alrosa the world biggest diamond producer; very successful diamond explorer (17 mines) Funded to mid 2015 Corporate Information Significant Shareholders Shareholders who hold more than 3% % Holding John Teeling Rene Nominees 9.00 WB Nominees 5.00 HSBC Global Nominees 5.00 James Finn 5.60 Share Price 1 Year Exchanges AIM (LSE) /BSE Ticker BOD Shares in Issue m Market Cap 2.7 m Share price

22 162 Clontarf Road Clontarf Dublin 3 Ph: Web: info@botswanadiamonds.co.uk 21