Aerf Presentation Sept 2010 1

African Energy Resources Fund
AFRICAN ENERGY RESOURCES FUND

INVESTOR PRESENTATION
SA
African Energy Resources Fund is an investment fund under Swiss law of the “other funds for traditional
investments“ type pursuant to the Swiss Federal Act on Collective Investment Schemes of 23 June 2006. The
fund‘s assets will be invested primarily in equities and other equity-type rights issued by companies carrying a
large part of their business activities in Africa and which are active in the energy resources industry. The fund
contract was drawn up by Solufonds SA, as fund management company, and submitted to the Swiss Financial
Market Supervisory Authority (FINMA) with the consent of Credit Suisse SA, as custodian bank.
SUMMARY
• A Swiss-regulated fund open to the public.

• Will invest in the energy resources sector on the African continent.
• Investments will be in equities listed on stock markets world-wide.
• The objective will be to generate above average capital growth.
• Investments will be guided by a highly experienced Committee.
Page 2
WHY INVEST IN AFRICAN ENERGY?
African energy companies are at an earlier stage in their

development and therefore offer better long term
growth opportunities.
Fiscal terms generally better than other regions offering
growth.
Access is better than that of other markets (Russian
market restricted to for key assets, Chinese reserves
restricted unless in deeper waters, new deepwater finds
in Brazil restricted, Gulf of Mexico deep water drilling
moratorium).
Surplus gas globally but lack of gas gathering
infrastructure also presents significant opportunities
(Nigeria, Uganda and Ghana). BP Statistical Review 2010
Page 3
INVESTMENT RATIONALE
• Traditional producing areas forecast to decline or saturated.
• This is in contrast to strong production growth expected from Africa.
Source: BP Statistical Review 2010
Page 4
INVESTMENT RATIONALE
• Out of top 280 projects 62 are in Africa, 61 in North America, 30 in South America, 34 in Asia
Pacific and 80 in Asia/Middle East.
Three price cases, 1980-2030

2007, US Dollars per barrel
Source: Goldman Sachs
Page 5
MACROECONOMIC BACKGROUND
• African GDP growth rate better

than the rest of the World.
• GDP growth rate in Sub-Saharan

Africa held up better during
global downturn.
• Real GDP growth throughout

Africa is expected to remain
strong for years.
Page 6
MACROECONOMIC BACKGROUND
Strong GDP growth rates in Sub-Saharan Africa.
10.0 9.2 8.8

7.8 7.7
8.0 6.9 7.0 6.7 7.2
6.8 6.5
6.1 5.9 6.4
5.5 5.8
6.0 5.3
4.3 4.5
3.8 4.0 3.84.1 4.0 3.9
4.0 3.2 3.0
2.8 2.8 2.8
2.2 2.4
2.0
0.7
0.0
1984-04 2005 2006 2007 2008 2009F 2010F
-2.0
-4.0 -3.1 -3.3
-6.0 -5.3
Sub-Saharan Africa Latin America

Emerging Europe Emerging Asia
Advanced Economies
Data Source: JP Morgan (AfDB, IMF)
Page 7
OIL PRICE TRENDS
• Global Growth in Energy Demand World Primary Energy Demand

Supportive over the long term.
• 93% of increase in energy

demand for 2007 to 2030 is
accounted for by Non-OECD
countries.
• Developing countries in Asia,

particularly China, India and the
Middle East will be key in driving
growth.
Source: IEA, World Economic Outlook 2009
Page 8
OIL PRICE TRENDS
Strong GDP growth rates in Sub-Saharan Africa.
2011 2012 2013 2014 2015 2016 2017 2018 2019
Page 9
COAL MARKET OUTLOOK
• 40% of global energy generated from coal.

• Key driver near and long term is electricity
demand in Asia, primarily India and China.
• Recent contract settlement of $98/t
reflects recovery in Asian and Chinese
markets.
• New production from South Africa and
Indonesia has decreased some of tightness
in the market.
• Coal demand expected to grow faster than
oil demand over near, medium and long
term driven by demand from power
generation.
• Coal forecast to retain its share in the
energy mix over the long term
Page 10
URANIUM MARKET OUTLOOK
• Global growth in nuclear power consumption

is expected to be double that of oil over the
next 20 years.
• As with other energy sources, growth in
consumption will be led by China, where
several new nuclear power plants are under
construction.
• New mines in Niger, Namibia will bring
additional supplies of Uranium on to global
markets.
• Exploration is under way in Algeria, Angola,
Botswana, Burkina Faso, Burundi, Central
African Republic, Chad, DRC, Mali, Gabon,
Guinea and several other countries.
Page 11
HYDRO-ELECTRIC POWER OUTLOOK
• Hydro-electric power consumption is

forecast to growth at an annual rate of
2.3% globally over the next twenty years.
• The hydropower potential of the continent,
mostly in central and western Africa,
amounts to 13 percent of the world
potential.
• New and prospective projects in the DRC,
Kenya, South Africa and other countries,
will expand electricity availability
throughout the continent.
• Opportunities for investment in production
and distribution will be considered.
Page 12
OTHER RENEWABLES OUTLOOK
• Many African countries receive on average 325 days of bright sunlight

per year.
• Africa has a large coastline, where wind power and wave power
resources are abundant and underutilized
• Geothermal power is mostly concentrated in eastern Africa, but there

are many fragmented spots of high intensity geothermal potential
spread across the continent.
Page 13
ASSET MANAGER
Delegated Management SA (Delman) was incorporated in

Geneva, Switzerland in March 2000 and is headed by Marc-
Etienne Rouge, formerly Vice President at Prudential-Bache
and a member of the management board of CBI (now UBP).
Delman is a private investment management company,

specialised in providing innovative financial products.
Delman is a member of the Organisme d'Autorégulation des

Gérants de Patrimoine (OAR-G) and the Groupement Suisse des
Conseils en Gestion Indépendants (GSCGI), and is licensed &
regulated by the Swiss Financial Market Supervisory Authority
(Finma) to distribute the DM Swiss Equity Asymmetric Fund in
Switzerland and to manage the African Energy Resources Fund.
Page 14
ADVISORY BOARD (1 of 4)
Ethelbert J.L. Cooper

Mr Cooper holds a Bachelors Degree in Economics from Yale
University (1974). Since 1982, he has overseen the
development and management of African natural resource
projects.
In 2003, Mr. Cooper founded Afren plc, and organised its
successful listing on the LSE AIM in March 2005. He is also the
founder of Gasol plc. He remains Special Adviser to the board
of Directors of Afren plc.
Mr Cooper, a Swiss resident, is a founder of African Gas and
Trading Services SA
Page 15
Manuel Lamboley
Mr Lamboley has extensive knowledge of the investment

banking industry. He was a director of UBS AG, and has held
senior positions at Bank Julius Bar, Kidder Peabody, Paine
Webber International and Prudential-Bache Securities.
Mr Lamboley was the founder or seed investor in a number of

natural resource companies with activities in emerging
markets of the former Soviet Union and Africa
He is a founder of Ocean Finance SA and Eastern Capital Fund

and is a non-executive director of several listed companies
dedicated to the mining/energy sectors.
Page 16
Julien Balkany
Mr. Balkany has served as a managing partner and Chief
Investment officer of Nanes Balkany Partners LLC since
January 2008, and as director and Vice-Chairman of
Toreador Resources Corp. since January 2009. He is also
currently Chairman of the Advisory Board of Stellar
Energy Ltd.
Previously, Mr Balkany was an investment banker
focused on oil and gas exploration and production M&A
transactions.
Mr. Balkany studied political science at the Political
Studies Institute (France) and finance at the University
of California at Berkeley.
Page 17
Ennio Sganzerla
Mr. Sganzerla is a mechanical engineering graduate of the
University of Padua and holds a Masters degree in
petroleum engineering from the ENI Corporate University.
Mr. Sganzerla took his retirement from ENI after 35 years of

service. In 1990, as Vice-President of the Reserves
Department, he directed the process of certification for the
privatization. In 1994, he was the Director of ENI in the U.K.,
where he led the acquisitions of Sun Oil Britain, British
Borneo Plc, Lasmo Plc and Fortum FPAS.
Mr. Sganzerla was non-executive director of Tristan Oil . He

is currently non-executive director of Straticenergy, and is a
member of the Consultative Board of Afren Plc.
Page 18
INVESTMENT STRATEGY
• African markets are long crude and short refined products.
• Downstream is significantly underdeveloped and presents significant opportunities.
• E&P stocks have outperformed integrated oils, including in recent recovery.
• E&Ps /African energy companies provide better leverage to energy outlook.
• Surplus gas globally but lack of gathering infrastructure also presents significant opportunities.
• Local participation of domestic energy markets creates opportunities, e.g. Nigeria.
• Significant opportunities as larger companies dispose of their smaller assets.
Page 19
INVESTMENT PROCESS
• Based on proprietary in-house research.
• Investment universe limited to 100 best companies within our investment guidelines.
• Stock selection criteria established to favour growth in revenues and earnings.
• Sell discipline and methodology has been determined and will be applied.
• Fund will invest in markets globally.
Page 20
RISK MANAGEMENT
• In order to reduce risks, the following guidelines will be applied :
• A maximum of 20% of net assets will be invested in the securities of a single issuer.
• Unlisted securities will be limited to a value equivalent to 10 % of net assets.
• Options and/or futures transactions will be allowed strictly for hedging purpose.
• Regular meetings including the fund manager and the advisory board will be held.
• Diversification between asset classes, listed and unlisted securities, and several resource types.
Page 21
STRUCTURE
Fund Type: Swiss registered investment fund
Investment objective: Long term capital gains
Net Asset Value: calculated and published monthly
Liquidity: monthly, on the first Bank working day
Management fee: 1.9% p.a.
Incentive fee: 20% p.a. over 5% hurdle rate
Placement fee: 3% upfront
Redemption fee: n.a.
Page 22
ORGANIZATION
Asset manager: Delman SA
Investment Committee: As described
Fund management and administration: Solufonds SA
Custodian: Credit Suisse SA
Auditors: PricewaterhouseCoopers SA
Distributor: Delman SA
Regulatory body: FINMA
ISIN code: CH0111840010
Page 23
CONTACTS
Delman SA
Asset Manager and Distributor
Marc-Etienne Rouge tel. +41 22 317 10 20

merouge@delman.com
Ian McFarlane tel. +41 22 317 10 36

imcfarlane@delman.com
Ocean Finance SA
Strategic advisor to Delman SA
Manuel Lamboley tel. + 41 22 311 90 00

ml@oceanfinance.ch
Page 24
DISCLAIMER
This document was prepared by Delman SA, asset manager and distributor of the fund, and is intended to summarize the
terms and conditions and strategy of the African Energy Resources Fund. This is not an offer to sell or solicitation to buy the
securities described herein. This document is confidential and may not be reproduced, redistributed or passed on, directly
or indirectly, to any other person, or published, in whole or in part, without the prior written approval from African Energy
Resources Fund.
Whilst all reasonable care has been taken to confirm the reliability of the information and opinions expressed herein, no
representation or warranty is made as to the accuracy or completeness of this document. Any assumptions,
interpretations, estimates and forecasts contained herein involve subjective judgements that may subject to significant
uncertainties and contingencies and may not prove accurate. Accordingly, any estimates and forecasts may not be
achieved, and any statements as to future matters may not prove correct and the differences may be material. In all cases,
the recipient must conduct his/her own investigation and satisfy his/her self as to the completeness, accuracy or reliability
of the information SA herein.
This investment fund is suitable for investors who have a long-term investment horizon and who are willing to accept
significant price fluctuations over a longer period. They are aware of the principal risks of investing in shares in the energy
resources sector.
20

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African Energy Resources Fund

AFRICAN ENERGY RESOURCES FUND

• A Swiss-regulated fund open to the public.

WHY INVEST IN AFRICAN ENERGY?

African energy companies are at an earlier stage in their

Source: BP Statistical Review 2010

Three price cases, 1980-2030

Source: Goldman Sachs

• African GDP growth rate better

• GDP growth rate in Sub-Saharan

• Real GDP growth throughout

10.0 9.2 8.8

-4.0 -3.1 -3.3

Sub-Saharan Africa Latin America

Data Source: JP Morgan (AfDB, IMF)

OIL PRICE TRENDS

• Global Growth in Energy Demand World Primary Energy Demand

• 93% of increase in energy

• Developing countries in Asia,

Source: IEA, World Economic Outlook 2009

OIL PRICE TRENDS

Strong GDP growth rates in Sub-Saharan Africa.

2011 2012 2013 2014 2015 2016 2017 2018 2019

COAL MARKET OUTLOOK

• 40% of global energy generated from coal.

URANIUM MARKET OUTLOOK

• Global growth in nuclear power consumption

HYDRO-ELECTRIC POWER OUTLOOK

• Hydro-electric power consumption is

OTHER RENEWABLES OUTLOOK

• Many African countries receive on average 325 days of bright sunlight

• Geothermal power is mostly concentrated in eastern Africa, but there

Delegated Management SA (Delman) was incorporated in

Delman is a private investment management company,

Delman is a member of the Organisme d'Autorégulation des

Ethelbert J.L. Cooper

Mr Lamboley has extensive knowledge of the investment

Mr Lamboley was the founder or seed investor in a number of

He is a founder of Ocean Finance SA and Eastern Capital Fund

Mr. Sganzerla took his retirement from ENI after 35 years of

Mr. Sganzerla was non-executive director of Tristan Oil . He

• African markets are long crude and short refined products.

• Downstream is significantly underdeveloped and presents significant opportunities.

• E&P stocks have outperformed integrated oils, including in recent recovery.

• E&Ps /African energy companies provide better leverage to energy outlook.

• Local participation of domestic energy markets creates opportunities, e.g. Nigeria.

• Significant opportunities as larger companies dispose of their smaller assets.

• Based on proprietary in-house research.

• Stock selection criteria established to favour growth in revenues and earnings.

• Fund will invest in markets globally.

• In order to reduce risks, the following guidelines will be applied :

• Unlisted securities will be limited to a value equivalent to 10 % of net assets.

Fund Type: Swiss registered investment fund

Investment objective: Long term capital gains

Net Asset Value: calculated and published monthly

Liquidity: monthly, on the first Bank working day

Management fee: 1.9% p.a.

Incentive fee: 20% p.a. over 5% hurdle rate

Placement fee: 3% upfront

Redemption fee: n.a.

Asset manager: Delman SA

Investment Committee: As described