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   REVIEW OF MINERAL RESOURCES                                    and activity for which they have taken responsibility, to
                                                                  qualify as a ‘competent person’ as defined in these codes
   AND RESERVES                                                   at the time of reporting. These competent persons have
   The mineral resources and ore reserves underpinning            signed off their respective estimates in the original mineral
   Exxaro’s current operations and growth projects are            resources and ore reserve statements for the various
   summarised in the tables on 60 to 71 . Mineral resources are   operations and consent to the inclusion of the information
   reported inclusive of those mineral resources which have       in the annual review 2011 in the form and context in which
   been converted to ore reserves and at 100%, irrespective       it appears. A list of Exxaro’s competent persons is available
   of the percentage attributable to Exxaro, except in the case   from the group company secretary on written request.
   of Gamsberg and Black Mountain, because figures received        The processes and calculations associated with the
   from Anglo Base Metals represent resources exclusive of        estimate have been audited by internal competent persons
   reserves. Significant changes in the resource or reserve        and are audited by external consultants when deemed
   figures have been explained by relevant footnotes attached      essential to establish transparency. In the case of mines
   to each table. Resource estimations are based on resource      or projects in which Exxaro does not hold the controlling
   models, which incorporate all new validated geological         interest, the figures have been compiled by competent
   information, updated geological models and, if applicable,     persons from the applicable companies and have not been
   revised resource definitions and classifications. The resource   audited by Exxaro. Resource and reserve estimation at
   models are compiled as a rule between June and August          Exxaro mines or projects outside southern Africa were done
   of the reporting year. Ore reserves are estimated using the    by competent persons as defined by the Jorc Code (2004).
   relevant modifying factors at the time of reporting (mining,
   metallurgical, economic, marketing, legal, environmental,      The person within Exxaro designated to take corporate
   social and governmental regulatory requirements). Mineral      responsibility for mineral resources and reserves,
   resources in which Exxaro held the controlling interest        HJ van der Berg, the undersigned, has reviewed and
   have been reviewed during 2011 to comply with reasonable       endorsed the reported estimates.
   and realistic prospects for eventual economic extraction
   (Samrec Code 2007).
   Exxaro uses a systematic review process that measures the
   level of maturity of the exploration work done, the extent
   of the geological potential, the mineability and associated    HJ van der Berg (Hennie)
   risks/opportunities to establish an eventual extraction        MSc (Geology), BSc (Hons)
   outline (EEO). Mineral resources and ore reserves quoted       Pr Sci Nat (400099/01)
   fall within existing Exxaro Resources mine or prospecting      Manager Mineral Assets
   rights. Mining rights are of sufficient duration (or convey
                                                                  27 March 2012
   a legal right to convert or renew for sufficient duration) to
   enable all reserves to be mined in accordance with current     In almost four decades as a geologist, Hennie has spent
   production schedules. Mineral resources and ore reserves       28 years in senior management and built extensive
   were estimated by competent persons on an operational          exposure to both exploration and mining geology. He has
   basis and in accordance with the Samrec Code (2007) for        been involved in numerous feasibility and due diligence
   South African properties and the Jorc Code (2004) for          studies and has commodity experience in iron ore, coal,
   Australian properties. Ore reserves in the context of the      base metals, industrial minerals and, to a lesser extent,
   annual review 2011 have the same meaning as ‘mineral           diamonds. He has evaluated iron ore deposits in South
   reserves’, as defined by the Samrec Code 2007. All              Africa, Australia, Peru, Guinea, Senegal, Mauritania,
   competent persons have sufficient relevant experience in        Uganda, Mozambique, Turkey, Russia, Azerbaijan and
   the style of mineralisation, type of deposit, mining method    Republic of Congo and coal in South Africa and Australia.

   Exxaro lists on JSE                       Grootegeluk expansion begins              United Nations Global Compact
                                             after signing Medupi coal supply          – signatory
   Mpower employee share scheme
   launched on 27 November                                                             Namakwa Sands acquired
                                             Inyanda – construction begins
                                                          Performance review   41   Governance review   42    Financial statements   71

COMMENT                                                            especially in rural areas, mostly depend on the wealth
                                                                   continuously created by the mine. Once this source of wealth
Exxaro’s tenure over its mineral assets as listed in the           stops, the business ventures cannot survive. Accountable
tables was audited and is confirmed with the following              mining is more appropriate to describe the holistic approach
consideration: the Department of Mineral Resources (DMR)           noted above. Company sustainability and growth can only
has provided written confirmation that the old-order                be achieved by accountable mining operations, replacing
mining licence for all Exxaro’s mines has been converted           depleted mineral assets and adding new mineral assets.
to a mining right, but the mining rights of Tshikondeni,
Matla, Strathrae, Arnot and Glisa still need to be scheduled       The drive to grow and diversify Exxaro’s mineral asset base
for execution by the DMR. Conflicting applications over             has been one of the focus areas in 2011 and it will continue
Exxaro’s existing mining and prospecting rights have               during 2012. In this regard, policies and governance in the
become a constant hindrance, and are being addressed               mineral asset environment will be reviewed and changed
through the right channels. These do not present a real            where necessary to facilitate the principle of accountable
risk, but become a legal burden that cannot be ignored.            mining practices and to improve assurance and legal and
A greater challenge arises from the lack of transparency           statutory compliance. Good mineral deposits have proved
between the DMR and Department of Energy, which                    excellent long-term investment assets throughout economic
results in exploration rights for natural gas being granted        cycles over the previous four decades and represent the
over existing coal rights without prior consultation. This         fundamental value of a mining company. It is therefore
matter is being addressed. Exxaro submitted a mining right         critical for Exxaro and its investors to have a high level of
application for the Belfast block during 2011.                     confidence in its mineral assets and the assurance that
                                                                   these resources and reserves will deliver the expected value.
Exxaro recognises the importance of its mineral assets to          The envisaged policies and governance will be designed to
the wellbeing of the company. The optimisation of mineral          achieve this goal, while the drive to add additional quality
assets beyond what is currently referred to as mineral             mineral assets will continue.
resource management is being driven as a priority. As
noted in the 2010 integrated annual report, changes in             As part of the accountable mining campaign, the level of
the resources market, increased awareness around the               confidence in the mineral resource at each mine is being
protection of the natural environment, and changing                reviewed. The status of the mineral resource is measured
legislation and statutory requirements demand a change             against the objective to assure management that the mineral
in the exploitation strategy and execution of mining and           resource and eventual reserve will be able to deliver the
prospecting operations. It has become essential to involve         predicted value. Additional prospecting programmes are
all functions to optimise every link in the value/action chain.    being planned to suit the assurance need at each mine.
                                                                   Similarly, growth projects are being evaluated using an
This comprehensive objective to optimise Exxaro’s                  inhouse tool, the mineral asset review process, to determine
natural resources, of which the mineral resource is the            the increase/decrease of value in each project as well
most strategic but not the only important part, can only           as where it fits in the growth pipeline. Based on results,
be achieved through holistic integration of all relevant           recommendations will be made to the growth department on
components. These include elements such as geoscience,             the future and prospecting programme for each project.
metallurgy, mining, product quality, marketing, environment,
safety, society, legal and statutory and profitability.             In conclusion, and as reflected in the company’s mineral
Inherently every mineral deposit is a finite mineralised            resources and reserves value statement: Exxaro’s
body. Once mining starts, the size of the mineralised body is      mineral resources and reserves represent the company’s
constantly depleted until, in the extreme case, nothing is left.   fundamental value to be treated with responsibility and
The term sustainable mining, often used at public forums,          respect. Accountable mineral asset management is focused
is therefore inherently flawed. The idea is that communities        on achieving this goal through teamwork by people who are
must be transformed during the life of mine to create other        empowered to grow and participate and are committed to
sustainable industries and businesses; these ventures,             excellence and honest responsibility.

First CEO Summit – focused on                Safe Day flag campaign launched              Exiting base metals as part of
sustainability                               – lost-time injuries drop 15%               portfolio optimisation and group
Leadership programme launched                Detailed closure plans in action
                                             at Durnacol and Hlobane                     Mineral sands business to be
Char plant opened – downstream
                                                                                         merged into international group
beneficiation                                 Grootegeluk Medupi Expansion
                                             Project – construction begins               Record performance marks
                                                                                         Exxaro’s fifth year

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