1

NAME OF APPLICANT: ANGLO OPERATIONS LIMITED :KLEINKOPJE COLLIERY REFERENCE NUMBER: 30/5/1/2/2/(307) MR

MINING WORK PROGRAMME

SUBMITTED FOR A MINING RIGHT APPLICATION

AS REQUIRED IN TERMS OF SECTION 23 (a), (b) AND (c) READ TOGETHER WITH REGULATION 11(1) (g) OF THE MINERAL AND PETROLEUM RESOURCES DEVELOPMENT ACT (ACT 28 of 2002)

2

3

STANDARD DIRECTIVE

All applicants for mining rights are herewith, in terms of the provisions of Section

23 (a), (b) and (c) and in terms of Regulation 11 (1) (g) of the Mineral and

Petroleum Resources Development Act, directed to submit a Mining Work

Programme, strictly under the following headings and in the following format

together with the application for a mining right.

4

1. REGULATION 11.1.(a): FULL PARTICULARS OF THE APPLICANT

ITEM COMPANY CONTACT DETAILS

Name Anglo Operations (Pty) Limited Tel no +27 (0)11 638 3658 Fax no: +27 (0)11 638 4608 Cellular no NA E-mail address chantel.gerber@anglomerican.com Postal address

PO BOX 61598 MARSHALLTOWN JOHANNESBURG SOUTH AFRICA 2107

ITEM CONSULTANT CONTACT DETAILS (If applicable)

Name NA Tel no Fax no: Cellular no E-mail address Postal address

2. REGULATION 11(1)(b) PLAN SHOWING THE LAND AND MINING AREA TO WHICH THE APPLICATION RELATES ( the plan require in terms of Regulation 2(2))

PREAMBLE Kleinkopje Colliery is an opencast coal mine located 15 km south of Emalahleni. The Colliery was established to supply export coal but also supplies coal to the local South African market. Kleinkopje Colliery forms part of the South African Coal Estates complex (alongside with Greenside and Landau Collieries). It currently mines virgin coal reserves in addition to large areas that was

5

previously mined underground using bord-and-pillar methods. Kleinkopje started production in 1978 in the 3A & 4E block producing three products LAC,Inland and RB1. The mine increased production in 1983 and maintained the production by first establishing 2A South and 5W pit. In 1998 the 2A North pit was established, still maintaining the product mix of LAC, Inland and RB1. The mine went through an expansion phase in 2003 and operated five draglines and four pits. In 2008 the 5W pit was converted into a Raw domestic product supply to Liketh. The mine currently operates at 3.8Mtpa saleable production from two main pits, reducing from a historic base of +/- 5 Mtpa saleable. The mine operates on a stripping ratio of approximately 4.8 but in the future this figure will increase to approximately 6.0 and result in an increase in the Dragline, truck and shovel and dozer pushover volumes to approximately 22 million BCM's/annum. A boxcut was successfully introduced to join up the 2AS and 2AN pits in 2012/13. The export saleable profile will be maintained and increased with the further plan to relocate the 5W pit machinery to the 2A pit in 2017. These changes were brought about in an attempt to position the mine as a value adding entity in the Anglo American Thermal Coal. The driving force behind the reconfiguration was to focus our attention on a single export pit ensuring improved productivity and optimizing extraction of the multiple seams. 3A North Pit was rehabilitated at the end of year 2014 and rehabilitation focus will move the 5W pit after its closure in 2017. With closure of 5 West pit the saleable profile has reduced to such an extent that it necessitate further exlporation of possible reserves. Mining of the reserves below the 2A Dam, which falls within the mining right boundares, was found to be feasible to extend the life of the mine as well as sustaining jobs.

6

Kleinkopje Colliery previously had two approved Environmental Management Programme Reports (EMPRs) (2001 and 2004) for the mining operations near Witbank, Mpumalanga as well as two unapproved addendums to their EMPR (the EMalahleni Water Reclamation Plant (2006) and the Greenside Expansion Project (2006)). These EMPR’s were consolidated in 2012 and approved by the DMR in September 2012. The coordinates and spheroid : Gauss Conform projection / Clarke 1880 (modified) ellipsoid / Cape Datum / LO 29 co-ordinate system The north point : as given on the Plan The scale to which the plan has been drawn :1:50 000 The location and where applicable, the name and number of the land to which the application relates: as given on the Plan The extent of the land to which the application relates : as given in tabular form on the Plan The boundaries of the land to which the application relates : as given in tabular form on the Plan Surface structures and registered servitudes where applicable : as taken from the 1:50 000 topocadastral map The topography of the land to which the application relates : as taken from the 1:50 000 topocadastral map See Appendix A: Attachment A1

3. REGULATION 11(1)(c): THE REGISTERED DESCRIPTION OF THE LAND TO WHICH THE APPLICATION RELATES

MINING AREA CO-ORDINATES The mining area as defined in the issued Mining Licence MP 30/5/1/2/2/(307) MR is given by the boundary

7

coordinates in Appendix A: Attachment A2 using the LO29 projection system, together with the transformation parameters for LO to WG in Appendix A: attachment A2.1 SURFACE TITLE HOLDERS Description of previously issued (old order) mining rights were based on mineral title whereas new order mining rights are based on surface description. Surface Title owner(s) in respect of Kleinkopje Colliery are detailed in Appendix A: Attachment A3

4. REGULATION 11(1)(d): THE DETAILS OF THE IDENTIFIED MINERAL DEPOSIT 4.1 Resource particulars

ITEM DETAIL

Type of mineral Coal Locality (Direction and distance from nearest

town)

Kleinkopje Colliery is 130 km due east of Johannesburg, and is approximately 10 km south of Witbank. Kleinkopje lies immediately to the south of Greenside and Goedehoop Colliery is to the southeast. Kleinkopje is also bordered by Tweefontein Colliery (Glencore) to the west and Douglas Colliery (BHP Billiton) to the east.

Extent of the area required for mining

5 West = 10.2 Ha 2 A Block = 421.0Ha Total = 431.0 Ha

Extent of the area required for infrastructure, roads, servitudes etc

Total surface Area = 8400 Ha

8

Depth of the mineral below surface Depth to the base of the No.1 Seam may range from 20 to 90 m below surface, and is directly related to surface weathering features and the Pre Karoo basement topography. Future re-mining of the Klippan co-facility disposal will take place on surface.

Geological formation General: The stratigraphy of the coal resource is typical of the Witbank Coalfield. The coal resources are contained mainly within the No.1 Seam(17%), No.2 (64%) and No.4 Seam (19%) whereas the No.3 Seam is too thin to be economically mined, and the No. 5 seam is not in the current mine plan. The No.1 Seam occurs in the southern part of the Block 2A extending through the eastern half of Kleinkopje’s mined out Block 4 East into Block 5 West . The No.2 Seam is present over virtually the whole of the Kleinkopje reserve area. The No.2 Seam sub-outcrops to the north of the Block 2A area, the eastern side of Block 4 East and the northern boundary of Block 5 West . The No.3 Seam, although of good quality, is too thin and has thus not been mined, and is a marker horizon

9

in the Block 2A and 5 West mining areas. The No.4 Seam is present in the Block 2A resource areas. Only remnants of the No.5 Seam are present, as the majority has been mined out by underground methods with up to 75% extraction. Refer to Appendix B1 for more detail.

4.2 Detail of person who compiled the resource statement

ITEM DETAILS

Name Meaker Katuruza Qualification/s Qualifications BSc.

(Geology & Geography) Profession Geologist Experience 28 years Professional Body (If registered) SACNASP

GSSA Registration number (if applicable): SACNASP: 400214/14

GSSA : 967790 4.3 Locality specific geological map (in colour)

Appendix B : Attachment B2

4.4 Exploration results (supporting geological reports to be listed and appended) N/A

4.5 Information required in terms of regulation 8 (in cases where

the application was preceded by a prospecting right. N/A

4.6 Mineral resource map)

Appendix B: Attachment B3

10

4.7 Resource statement The Kleinkopje Colliery Coal Reserve estimates are from the Measured Resource category only, and no Indicated or Inferred Resources are included in the reserve estimates. Appendix B: Attachment B4. AAPLC is currently concluding the new statement which will include the 2A extention area.

5. REGULATION 11(1)(e): THE DETAILS OF THE MARKET FOR, THE

MARKETS REQUIREMENTS AND PRICING IN RESPECT OF THE MINERAL CONCERNED

5.3 A list of products and their proportionate quantities 1. Export Coal = 2.5 - 3.0 Mtons/year for 10 years 2. Domestic Coal = 2.0 Mtons/year for 1 year on average (Pit closes Q1 2017)

5.4 Market for each specific product in terms of Local, Regional or

International 1. Export - International 2. Domestic Coal - Local Market

5.5 Summary of product consumers

Product Customer Country Domestic Local South Africa Export Various Europe/India/ China

5.6 Summary of customer specifications and details of any proposed

beneficiation of the products Product Parameter Reporting basis Indicative Value Domestic Coal Calorific Value (MJ/kg) air dried 20.4 Delivered Ash content air dried % 32.9 Volatiles air dried % 20.8 Sulphur air dried % <1.2 Total Moisture % 8.0 Export Coal Calorific Value (MJ/kg) air dried 27.40

11

Delivered Ash content air dried % 15.5 Volatiles air dried % 23.5 Sulphur air dried % 0.7 Inherent Moisture % 2.2

5.7 Summary of infrastructure requirements such as roads, rail,

electricity and water Kleinkopje Colliery is an opencast strip mine removing both virgin and previously mined coal seams. The coal is exposed by means of draglines (currently 2 operational,1 on rehabilitation of spoils) and coal is loaded by means of truck and shovel. Dewatering ahead of cut to ensure continual mining is critical using pumps and pumpstations as required to dewater pits for coal extraction. The coal is washed by the on-site dense medium separation plant to an average Calorific Value of 27.40MJ/kg (to produce a product known as AAC). The beneficiation plant makes use of Wemco drums, DMS cyclones and spiral circuits to wash the coal, where the product is then sent via a 8km overland conveyor belt to the Rapid Loading Terminal (RLT). Here the coal is either loaded into trains. The Richards Bay Coal Terminal (RBCT) is used to export coal to customers overseas. Liketh Investments purchases on a contract basis, the coal from Kleinkopje 5 West pit which is dedicated to the domestic market. The coal is loaded from this pit is stockpiled on a designated area, where the Liketh blends for quality purposes and road hauls to end users. in addditon poorer quality coal specifically from 5W is also being treaded and predominatly used to blend for the Eskom domestic product. Expansion Options: With the recent reconfiguration of the Kleinkopje colliery (2A Extention), no additioanl infrastructure will be required.

12

5.8 Summary of other information applied that may influence price, e.g.

exchange rate, duties, tariff barriers etc. Export coal prices are based on the API Indices and influenced by the international sea bourne cargo rates. Prices are determined most commonly by negotiation with the customer on the link to the ruling API Index (excluding transport costs) for the relevant quality (typically API 4 = 6000 Kcal/Kg product or API 2 Index = delivered into Europe). Prices can be spot or can be fixed quarterly or annually. The price will typically be in US$. The API 4 Index (as determined independently) is the simple arithmetic mean of: • The FOB Richards Bay assessment published each Friday in Argus Coal Daily International and Argus Coal Daily. • The FOB Richards Bay price as published every Friday in McCloskey’s Fax and fortnightly in McCloskey’s Coal Report. • The SACR (South African Coal Report) Europe Spot Price Indicator as published every Friday in “From the Coal Face”; and monthly in South African Coal Report. The current market API 4 price for typical South African coal has shown significant variation over the last years.

5.9 The price to be used in the cash flow forecast. About 65% of the coal produced at Kleinkopje Colliery is for the local South African national power utility, with the balance being thermal coal for export via Richards Bay to the international market. this will change drastically with the closure of 5W after which the mine will be mainly export orientated from 2018. Prices are determined most commonly by negotiation with the customer on the linked to the ruling API Index (excluding transport costs) for the relevant quality (typically API 4 = 6000 Kcal/Kg product or API 2 Index = delivered into Europe). Prices can be spot or can be fixed quarterly or annually. The price will typically be in US$. The API

13

4 Index (as determined independently) is the simple arithmetic mean of: • The FOB Richards Bay assessment published each Friday in Argus Coal Daily International and Argus Coal Daily. • The FOB Richards Bay price as published every Friday in McCloskey’s Fax and fortnightly in McCloskey’s Coal Report. • The SACR (South African Coal Report) Europe Spot Price Indicator as published every Friday in “From the Coal Face”; and monthly in South African Coal Report. The current market API 4 price for typical South African coal has shown significant variation over the last years.

5.10 Confirmation that a specialist market analysis is attached as an appendix which explains the assumptions made and how the price was determined. The mine uses Anglo American Marketing Limited to deal with pricing and marketing. Hence a marketing specialist analysis was not deemed necessary.

6. REGULATION 11(1)(f): THE DETAILS WITH REGARD TO THE APPLICABLE TIMEFRAMES AND SCHEDULING OF THE VARIOUS IMPLEMENTATION PHASES AND A TECHNICALLY JUSTIFIED ESTIMATE OF THE PERIOD REQUIRED

6.1 Timeframes and scheduling of implementation Phases

6.1.1 Explanation of time taken to develop the mine and commence production. Kleinkopje is an existing mine.

14

6.1.2 Explanation of the production build up period once production commences. N/A

6.1.3 Explanation of production decline period (as grades

deteriorate). Kleinkopje Colliery Pit 5W Life of Mine (LOM) is expected to cease operations in early 2017. Kleinkopje Colliery Pit 2A to supply export quality coal until 2025, ROM of ± 5.0Mt per annum.

6.1.4 Production forecast for each year over the full period

applied for based on the above explanations. (Not Life of Mine calculation).

Appendix C: Attachment C1

6.2 Technically justified estimate of the period required (Description of the rate of production, estimated payable reserve ratio, efficiency factors and extraction rates, relative to available resources to justify the period applied for).

Both pit's at Kleinkopje Colliery are mined utilizing opencast methods. In both pits the main method/equipment for exposing the various coal seams are Draglines. From pit 5W 2 seam is mined for domestic market, and 1 seam for export market, while in pit 2A 4 seam, 2 seam and 1 seam are mined for export market with the inclusion of 5 seam from 2017. The 2 seam mined in pit 2A consists of previously mined underground workings. In all the pits the appropriate mining extractions is applied to cater for the conditions. due to the previous working, mining by OC means is the only opportunity. The main focus pit going forward is the 2A pit. Due to the prevaling poor market conditions this pit has been redefined to be a two dragline pit. The rates and production profile has been based on historical performance with the inclusion of streched improvement requirements. Margin ranking has been applied over the full area to ensure maximisation of reserve extraction.

15

7 REGULATION 11(1)(g)(i) THE DETAILS WITH REGARD TO THE COSTING

OF THE MINING TECHNIQUE, MINING TECHNOLOGY AND PRODUCTION RATES (excluding labour and capital)

7.1 Mine design map

(Include a high level map indicating the basic mine design and schematic mining schedule).

Kleinkopje Colliery is an opencast strip mine removing both virgin and previously mined coal seams for the export and domestic market. The coal is exposed by means of draglines, and coal is loaded by means of truck and shovel. See Attachment D for the Mine Design Plan. Three coal seams are currently mined, namely, the No.1 Seam, No. 2 Seam and No. 4 Seam, with the 5 Seam to be mined in future. Export coal produced from pit 2A (dewatering ahead to ensure continual mining) is washed by the on-site dense medium separation plant to an average Calorific Value of 27.40MJ/kg (to produce a product known as AAC). The beneficiation plant makes use of drums, cyclones and spiral circuits to wash the coal, where the product is then sent via a >8km conveyor belt to the Rapid Loading Terminal (RLT). Here the coal is either sent via trains to the Richards Bay Coal Terminal (RBCT) for export customers or to local markets in South Africa. Pit 5 West is dedicated to provide coal to the local market. Liketh Investments purchases on a contract basis, the coal from Kleinkopje 5 West pit which is dedicated to the domestic market. The coal is loaded from this pit is stockpiled on a designated area, where the Liketh blends for quality purposes and road hauls to end users. To aid in the blending of this coal, some of the coal form 5W is benificiated to ensure the quality paramanters are met. See Appendix E and A4.1 for plan and plant layout.

16

7.2 Description of the mining method’s impact on operating cost.

7.2.1 Basic overview of the mining method The key parameters determining the mining method employed at Kleinkopje Colliery includes the following: • Increasing depth of the coal deposit, • Extent of previous underground mining (bord and pillar), • Propensity for Spontaneous Combustion (Sponcom), • Multiple seam coal operation, • Saleable stripping ratio, • Equipment limitations, • Environmental considerations Pit 2A - Export Pit The dig method and cut layout of the export pit was changed in 2012. Pits 2A South and 2A North are now mined as a single pit ('U-shaped' layout). In 2013 the 2 pits mentioned above were connected by a box cut resulting in a single pit for export. This resulted in a pit length of ± 4km in 2A. In addition the dig method has also be changed in some areas from a double pass operation to a single pass operation, which means that both the No. 4 Seam and No. 2 Seam are simultaneously exposed by Dragline 4 (Ndlovu) in some of the areas. This will result in a double cut method with both the overburden cut and interburden cut at a width of 50m. There will be a blasted interburden buffer as well that will assist in managing Sponcom by preventing ingress of air into the next cut. The No. 5 Seam, No. 4 Seam, No. 2 Seam and No. 1 Seam operation occur in this pit. The No. 2 Seam is characterized by large areas previously mined by underground bord and pillar methods. Pit 5 West – Domestic Coal Pit Dragline 5 (Bhejane) is situated in this 5 West Pit, where only 2-Seam and 1-Seam operations take place. No spontaneous

17

combustion occurs in this pit and the deposit has no underground workings. This pit will close in 2017 and the DL will reloacte to 2A. Roof coal Dump: re-mining will be conducted using ordinary truck and shovel operations and no blasting will be required. This is predominatly used to assist in the blending to achieve the required quality for the deteriorating quality form 5W.

7.2.2 Description of equipment and activities impacting

electricity cost (excluding the processing plant) The power supply for the mining operations is transmitted at 132 KV from Eskom to the Eskom Kleinkopje 22 KV substation. The substation consists of two 20 MVA transformers which supplies two 22 KV incomer feeders that supply the Kleinkopje Plant and opencast operations. The Kleinkopje substation has 5 feeders supplying the operations, the plant, Pit 3A, Pit 5W and Pit 2A. The 22 KV bus section are open in the Kleinkopje substation to isolate the power supply to the plant due to regeneration from the opencast equipment. The three feeders feeding the different pit areas transmit the power through overhead power lines to the different transformers (10 MVA and 6 MVA) in the different pit areas. From the transformers, splitter-skids and breaker-skids are supplied through pex cable. Equipment is supplied from the breaker skids with power using flexible trailing cable. Underground cable crossings are provided where the overhead power lines are crossing the main haul roads. Power for in-pit pumping is derived from separate spur lines and transformers installed for this purpose. The supply of electricity from Eskom to Kleinkopje Colliery is regulated under the terms of a Power Supply Agreement. Equipment impacting on electricity costs:

18

1. BE 1570W 1 Dragline - Overburden removal 2. BE 1300W 1Dragline - Rehabilitation of spoils and other ad-Hoc work 3. Marion 8200 1Dragline - Overburden removal 4. Bucyrus Erie 61-R 2 - Overburden drilling 5. Bucyrus Erie 49-R 2 - Overburden drilling 6. Hitachi EX 3600 Shovel - Waste removal 7. Electric pumps - Dewatering the pits All of the above will remain similar to the 2016 footprint, barring the continous improvent required to achieve buget requirements.

7.2.3 Description of equipment and activities impacting on fuel

cost Opencast Mining Equipment Type and Use: 1. 150 tonners (e.g. Euclid EH3000) with 2 large loaders (9) - Pre-strip hauling, cladding, ramps 2. Komatsu WA800 (1) - Coal loading 3. Caterpillar 994 FEL (1) - Coal loading 4. EH1700 (MARC contract) (2) - Coal loading and hauling 5. 90 tonners (e.g. Kom 785) (6) - Coal loading and hauling 6. Hitachi EX1900 (2) Topsoil - clean-up, parting removal and coaling 7. Komatsu PC1200 (1) Topsoil - clean-up, parting removal 8. Euclid Hitachi EH1600 (2) - Topsoil, clean-up, parting removal 9. Diesel pumps (9) - Dewatering the pits 10. Graders, Bowsers, TLB, Compactor (10) - Road Building equipment 11. Komatsu 375/ 475 (9) - Waste Dozing and rehabilitation 12. Light Vehicles (91) - Transportation of personnel 13. Maintenance vehicles (10) - Service Trucks

19

7.2.4 Description of equipment and activities impacting on cost of stores and materials Procurement and Inventory Management Systems linked the Anglo American Supply Chain network are utilised to ensure timely supply of all consumables. For specific materials e.g. explosives, drill rods & bits, fuel, etc individual contracts are signed with suppliers. To ensure un-interrupted supply of spares for major equipment, Maintain and Repair Contracts (MARC) are signed with equipment suppliers to provide spares and personnel skills to maintain and repair some of the major pieces of equipment.The main contributor to stores cost will be pretrolium and explosives, this is mainly due to the mature of OC mining.

7.2.5 Description of equipment and activities impacting on the

cost of water Dewatering of pits to the Emalahleni Water Reclamation Plant and reuse for mining activities: Pumps - 9 Diesel pumps to pump pit water Electrical Pumps - for dewatering Mechanical Pumps - for dewatering pit water Jacuzzi Pumps - Borehole pumps to pump borehole underground water Key Plan - Borehole pumps to pump borehole underground water Potable water from Emalahleni Water Reclaimation Plant. Potable water is used for cooling systems on equipment and domestic use (change houses, drinking etc). All water that leaves the mine is treated at the water treatment plant which feeds Emalahleni.

7.2.6 Description of activities impacting on other cost not

included above

20

Discard management is done using a contractor company to build the deposits. With the potential use of the mines discards to power up an IPP power plant the mine is hoping to reduce some costs.

21

7.2.7 Operating Cost Forecast ( Excluding the processing plant and Labour) For first 10 years

COST CATEGORY

YEAR 1

YEAR 2

YEAR 3

YEAR 4

YEAR 5

YEAR 6

YEAR 7

YEAR 8

TEAR 9

YEAR 10

Fuel 100 107 85 90 95 99 104 Electricity 58 56 54 59 64 69 74 Water 1 1 1 1 1 1 1 Stores and materials 53 48 51 54 58 61 65 Other (specify) 597 707 711 753 799 847 897 TOTAL COST (To be reflected in the cash flow forecast)

809 920 907 963 1021 1082 1148

NB! The costs determined here must explain the costs used in line item 4 of the cash flow forecast required herein under Regulation 11 (1) (g ) (vi) *All costs in above table 7.2.7 is in million rands (Rm) Other Costs include explosives, working costs suspense, sundry debits and contractor mining costs.

22

8 REGULATION 11(1) (g) (ii): DETAILS AND COSTS OF THE TECHNOLOGICAL PROCESS APPLICABLE TO THE EXTRACTION AND PREPARATION OF THE MINERAL OR MINERALS TO COMPLY WITH MARKET REQUIREMENTS

8.1 High level description of the processing plant

8.1.1 Basic plant design. (supported by a process flow diagram, of the

plant).

Run of mine coal is received in an 800 tons per hour capacity tip; i.e. C-tip. It is put through Osborn rotary breakers for size reduction to -150mm before being conveyed to a storage and blending stockpile with capacity of 40 000 tons. The rocks from the rotary breaker are conveyed to a stone bin from which they get hauled to the disposal site using articulated dump truck (ADT). The coal from the stockpile is reclaimed with the bucket-wheel reclaimer and gets classified into two size fractions; (-150, +12 mm) and -12mm, using a banana screen. This coal then gets conveyed into ROM holding silos 1 and 4 from which the Wemco drum separator plant and dense medium cyclone (DMC) plant respectively get their coal. The nominal feed rate of the Wemco drum separator and the dense medium cyclone (DMC) is 500 tons per hour. Prior to beneficiation, preparatory wet screening is done on the feed to plant for removal of fines which get treated separately at the fines circuit using a teetered bed separator (TBS) and spirals. Heavy medium separation is used for coal beneficiation in both the Wemco drum and the DMCs. After the separation units, the products (coal product and discard) are subjected to draining-off

23

and rinsing-off of medium for medium recovery to be reused in the plant. The product coal from the DMCs and Wemco drum gets mixed and conveyed to product storage bunkers. From the bunkers it is subjected to screening and crushing to achieve the -50mm final product size. The correctly sized material is mixed with the fines product and gets conveyed through an automated sampling plant, where samples for quality control are taken and then conveyed into 2000 ton silos for storage. From the silos the product is conveyed to the Rapid Loading Terminal (RLT) where it is loaded in trains for dispatch to the Richards Bay Coal Terminal (RBCT). The discard, from the DMCs, Wemco drum and the fines circuit, gets conveyed into a 500 ton capacity silo before being conveyed to the Klippan discard co-disposal facility. The slimes obtained from desliming of the fines in the fines circuit report to a conventional thickener for thickening before it gets pumped to the co-discard disposal facility. See Appendix E Beneficiation Process: The coal preparation plant at Kleinkopje is designed to process ROM coal which is then beneficiated to produce export coal at 27.40MJ/kg with additional capacity utalised to produce a lower quality product for either Eskom blend or export market. Raw Coal Handling: The raw coal handling system (commonly known as the ‘Front-End’) consists of three tips, namely, A, B and C tips (currently A tip is mothballed). The C-tip consists of a single

24

Osborn breaker fed by an apron feeder at a rate of 1,000 tph. Nominal crushed ROM sizing: • A-Side 150mm • B-Side 150mm • C-Side 100mm The crushed ROM is stacked separately onto two ROM stockpiles via stackers. The stockpiles have a capacity of 40,000 tons per side. The system has the optional flexibility of allowing ROM coal to come straight through the plant without having to be stacked. This is only used during unforeseen circumstances. The front-end is equipped with metal detectors and self cleaning belt magnets to remove tramp metal arising from old underground workings. Non-metallic tramp material is hand-picked from the system and disposed of into the waste containers provided. Rocks and coal that are not broken in the breakers are transferred to a 50 ton rock bin or stone bin. Washing Mode: Coal reclaimed from the ROM stockpiles is screened at the banana screen and classified into +12 mm and -12mm size fractions. This coal then gets conveyed into ROM holding silos 1 and 4 respectively. The +12mm fraction is washed in Wemco Drums, the -12mm, +0.5mm fraction in 610mm cast iron DSM Cyclones and the -0.5mm fraction undergoes classification to remove -150µm material before it is beneficiated in the Teeter Bed Separator, product of which reports to triple-start Multotec MX7 Spirals for further quality upgrade. The -150µm material is then fed to one of two thickeners where it is flocculated and pumped to the slimes dam. The product coal from the DMCs and Wemco drum gets mixed and conveyed to product storage bunkers. From the bunkers it is subjected to screening and crushing to

25

achieve the -50mm final product size. The correctly sized material is mixed with the fines product and gets conveyed through an automated sampling plant, where samples for quality control are taken and then conveyed into two 2000 ton silos for storage (silos 6 & 7). The plants discard, from the DMCs, Wemco drum and the fines circuit, gets conveyed into a 500 ton capacity silo before being conveyed to the Klippan residue deposit co-disposal facility. The slimes obtained from desliming of the fines in the fines circuit report to a conventional thickener for thickening before it gets pumped to the discard disposal facility. Residue Deposit Facility (formerly known as the Discard Disposal Facility): The Klippan residue deposit facility operates on the co-disposal principle where the fine residue slurry (slimes) is impounded within walls constructed of coarse residue material. The facility was commissioned in 1992 and was designed with capacity to cater for the life of mine to 2017 accommodating some 22.4 Mm3 (million cubic metres) of slimes and 37.9 Mm3 of coarse residue material. The final shape of the facility was designed as a terraced profile incorporating overall side slope ratio of 1 vertical:2.5 horizontal (1v:2.5h) with a maximum height set at 50 metres. In early 2002, the projected life of mine was extended to 2025 thus increasing the quantities of material to 20.7 Mm3 of slimes and 55.1 Mm3 of coarse residue material over and above that which had already been placed. In addition, the final profile of the facility was changed to the more environmentally acceptable whaleback profile incorporation 1v:5h side slopes. In order to accommodate the increased volumes of residue material and the

26

whaleback profile whilst maintaining the existing maximum height it was necessary to revise the shape of the slimes compartment and extend the overall residue deposit footprint. The only available area for expansion is to the west of the facility onto the rehabilitated open cast mining ground. It is worthwhile noting that there are large soil stockpiles in this area which need to be relocated before the area can be fully utilised for storage of the residue material. Development over the life of the facility generally followed the design parameters apart from the slimes quantities which have been less than predicted. This resulted in coarse residue developing to a much higher elevation than the slimes, particularly considering the expanded compartment to allow for the whaleback profile. In 2006 the residue deposit facility should have commenced extension to the west to provide deposition area for residue material; however funds were not available to relocate the soil stockpiles. In addition the life of mine was being re-evaluated in the light of poor mining conditions which would likely reduce the total residue deposit facility capacity accordingly it was decided to close in a portion of the slimes compartment with coarse residue material to provide interim tipping space. This has worked well and has permitted the slimes level to increase relative to the coarse residue material. Concurrent rehabilitation of the outer slopes of the facility forms part of the ongoing operation. Rehabilitation consists of cladding the residue deposits with a layer of soil which is then vegetated. Terraces formed on the north and east as per the original profile have been cladded and vegetated. In these sections, the terraces will remain as part of the final shape with the whaleback profile developing above. The whaleback

27

profile is steadily progressing and the first 4ha section at the designed final extent is currently being rehabilitated. The maximum height of the facility above natural ground level is currently some 28 metres and the difference in elevation between the slimes and top of coarse residue material in the perimeter wall is 9 metres. Going forward opportunity exists to reduce the discard footprint by utalising the exisiting mineral residue deposits as coal feed to an IPP.

8.1.2 Efficiency of the process. (together with an estimate of the mineral

recovery rate, and the expected mass or volume of mine waste or residues together with the manner in which it would be disposed of.)

The plant recovery system is designed on the following: Slimes portion is approximately 10% of plant feed reports directly to the slimes dam. The dense medium feed portion is approximately 80% of plant feed is designed at a 95% recovery rate (organic efficiency). The spirals portion is approximately 10% plant feed is deigned at a 80% recovery rate. Daily plant yield targets are generated by the Geology Department using Gradecon. Daily actual yields are reconciled back to the targets. Composite discard samples have a washability analysis done on them. The misplaced product in the discard is measured and compared to a targeted 1% of plant feed. Recovery rates : Plant Feed is approximately 5.0Mt per annum going forward Product yield is approximately 55%

28

Discard yield is approximately 35% Slimes yields is approximately 10% The processing of coal in the Kleinkopje coal washing plant produces waste materials in the form of a fine fraction, known as slimes, and a coarse fraction known as discards (also referred to as coarse discards). Both of these are disposed of at the Klippan discard disposal facility which operates on the co-disposal principle where the slimes is impounded within walls constructed of compacted coarse discard. The design philosophy adopted for the Klippan facility is to operate the residue stockpile in a smooth whaleback shape whist the discards is exposed, thereby encouraging runoff and reducing infiltration. When the residue stockpile reaches its final extremities, in areas where there is sufficient available ground space the whaleback profile will be maintained with a maximum slope of 1V:5H. The facility was commissioned in 1992 and has the capacity to cater for the life of mine to year 2025 accommodating 22.4 Mm3 of slimes and 37.9 Mm3 of coarse discards with the upside potential of the IPP usage to reduce volume. The proposed re-mining of this residue stockpile will significantly reduce the total volume of final discard over time.

8.2 Description of equipment and activities impacting electricity cost

(excluding the processing plant) 1.The Rapid Loading terminal (RLT) overland conveyer system. 2. Process water reticulation system, pumping water from the co-disposal facility. 3. Plant Return Water Dam pumping system.

8.3 Description of equipment and activities impacting on fuel cost

Equipment which adds to fuel cost; LDV's and SME's.

29

Activities adding to fuel cost: 1. Discard handling using articulated dump trucks (2), Grader (1), Vibrating impact roller (1), Front End Loader (1) and Excavator (1) 2. TLB, Front End Loader, Skidsteer, Tipper truck (4) - General plant cleaning 3. Light vehicles - Operation and maintenance activities.

8.4 Description of equipment and activities impacting on cost of stores

and materials Procurement and Inventory Management Systems linked the Anglo American Supply Chain network will be utilised to ensure timely supply of all consumables. For specific processing materials e.g. magnetite individual contracts will be signed with suppliers. To ensure un-interrupted supply of spares for major equipment, Maintain and Repair Contracts (MARC) will be signed with equipment suppliers to provide spares and personnel skills to maintain and repair all major pieces of equipment.

8.5 Description of equipment and activities impacting on the cost of

water Raw mine water is pumped back to the processing plant for use in the beneficiation process. The super fine coal is pumped to the co-disposal facility where the solids are retained in the dam and the water recovered for re use in the plant. Dust suppression and coal quenching activities.

8.6 Description of activities impacting on other cost not included above

The export coal is dispatched to the Rapid Terminal via an overland belt. The costs incurrend in this process are electricity and general maintenance of the infrastructure.

30

8.6.1 Processing plant operating cost forecast ( Excluding Labour) For first 10 years

COST CATEGORY

YEAR 1

YEAR 2

YEAR 3

YEAR 4

YEAR 5

YEAR 6

YEAR 7

YEAR 8

TEAR 9

YEAR 10

Fuel 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Electricity 29 30 33 36 39 42 45 49 Water 0 0 0 0 0 0 0 0 Stores and materials 7 8 10 11 12 12 13 14 Other (specify) 80 61 75 79 84 89 94 100 TOTAL COST (To be reflected in the cash flow forecast)

116 101 119 127 135 144 153 163

NB! The costs determined here must explain the costs used in line item 5 of the cash flow forecast required herein under Regulation 11 (1) (g ) (vi) * All costs in above Table 8.6.1 is in million rands (Rm) The other costs is sum of working costs suspense and sundry debits

31

9 REGULATION 11 (1) (g) (iii): DETAILS AND COSTING OF THE TECHNICAL SKILLS AND EXPERTISE AND

EXPERTISE AND ASSOCIATED LABOUR IMPLICATIONS REQUIRED TO CONDUCT THE PROPOSED MINING OPERATION

9.1 Organizational Structure of the mine

9.1.1 Description of positions requiring certificates of competency and under which skills category they have been budgeted for. Kleinkopje Colliery is an operational mine, with all its organisational structures in place. Change to the structure are made from time to tiome for the structure to remain aligned to the operaional requirements and the changing environmnent. All the contractors appointed on site will be required to report to a legally responsible mine official. The positions requiring certificates of competency are as listed below 1. General Manager : Overall responsibility for the mine, appointment under MHSA 1996, section 3(1). Mine Manager’s Certificate of Competency (Coal) 2.Mining Manager: Responsible for mining operations, appointment under MHSA 1996, section 3(1), MA Regulation 2.6.1. Mine Manager’s Certificate of Competency (Coal) 3. Engineering Manager: Responsible for overall machinery used at the mine, appointment under MHSA 1996 section 7(2), MA 1991 Regulation 2.13.1 Engineering Certificate of Competency

32

4. Section Engineers : Responsible for machinery safety within specific areas appointment for, appointment under MHSA 1996 section 7(2), MA 1991 Regulation 2.13.3.1 & 2.13.3.2. Engineering Certificate of Competency 5. General Engineering Supervisors (GES): Responsible for machinery safety within specific areas appointment for, appointment under MHSA 1996 section 7(4), MA 1991 Regulation 2.13.3.1 & 2.13.3.2. No Degree N6/S4, trade test & appropriate experience 6. Pit Superintendent: Responsible for mining operations, appointment under MHSA 1996, section 7(2), MA 1991 Regulation 2.6.1 Mine Manager’s Certificate of Competency (Coal) 7. Mine Overseers: Responsible for mining operations, appointment under MHSA 1996 section 7(2), MA 1991 Regulation 2.9.2, 2.14.1, 2.14.2 & 2.14.3. Mine Manager’s Certificate of Competency (Coal), or Mine Overseer’s Certificate of Competency 8. Explosives Magazine Master: Responsible for explosives usage at the mine, appointment under Explosives Act 2003, section 34(1) No. Blasting Certificate, training & appropriate experience. 9. Survey Manager: Responsible for mining operations, appointment under MHSA 1996, section 7(2), & Regulation 17.2. Mine Surveyor’s Certificate of Competency Middle management 10. Occupational Hygiene Officer: Responsible for occupational hygiene matters at the mine, appointment under MHSA 1996, section 12(1).

33

11. Chief Safety Officer 12. Safety officers

9.1.2 Description of which part or parts of the mining operation will be outsourced (if any)

9.1.2.1 Description of positions requiring certificates of competency and under which skills category they have been budgeted for. The following operations or activities at Kleinkopje Colliery are contracted or outsourced: Blasting Assistant skill program certificate - Blasting assistant from AEL (Explosives Supplier)

9.2 Costing of the skills categories in the mining operation to determine if technical competence has been budgeted for: Complete the following tables:

34

MINE EMPLOYEES

PERSONNEL ON THE MINE’S PAYROLL: (Years 1 to5)

CATEGORY

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

NO. OF

POSITIONS

BUDGET NO. OF

POSITIONS

BUDGET NO. OF

POSITIONS

BUDGET NO. OF

POSITIONS

BUDGET NO. OF

POSITIONS

BUDGET

Top management 9 19 8 18 8 19 8 20 8 21

Senior Management 36 36 39 42 39 45 39 49 39 52

Professionally

qualified and

experienced

specialists and mid-

management

97 92 101 97 101 100 101 105 101 109

Skilled technical and

academically qualified

workers, junior

management,

supervisors, foreman

and superintendents

128 93 138 89 138 96 138 104 138 112

Semi-skilled and

discretionary decision

making

287 116 330 113 330 130 330 140 330 152

Non permanent

Employees

0 0 0 0 0 0 0 0 0 0

TOTAL PERSONNEL

EXPENDITURE

557 355 616 357 616 391 616 418 616 447

35

36

PERSONNEL ON THE MINE’S PAYROLL: (Years 6 to10)

CATEGORY

YEAR 6 YEAR 7 YEAR 8 YEAR 9 YEAR 10

NO. OF

POSITIONS

BUDGET NO. OF

POSITIONS

BUDGET NO. OF

POSITIONS

BUDGET NO. OF

POSITIONS

BUDGET NO. OF

POSITIONS

BUDGET

Top management 8 23 8 24

Senior Management 39 57 39 61

Professionally

qualified and

experienced

specialists and mid-

management

101 114 101 119

Skilled technical and

academically qualified

workers, junior

management,

supervisors, foreman

and superintendents

138 121 138 131

Semi-skilled and

discretionary decision

making

330 164 330 177

Non permanent

Employees

0 0 0 0

TOTAL PERSONNEL

EXPENDITURE

616 478 616 512

37

SUBCONTRACTORS EMPLOYEES (if applicable) (Duplicate this form for each Subcontractor)

CATEGORY

NUMBER YEAR

1

NUMBER

YEAR 2

NUMBER

YEAR 3

NUMBER

YEAR 4

NUMBER

YEAR 5

NUMBER

YEAR 6

NUMBER

YEAR 7

NUMBER

YEAR 8

NUMBER

YEAR 9

NUMBER

YEAR

10

Top management Appendix F

Senior Management

Professionally

qualified and

experienced

specialists and mid-

management

Skilled technical and

academically qualified

workers, junior

management,

supervisors, foreman

and superintendents

Semi-skilled and

discretionary decision

making

TOTAL CONTRACT

BUDGET (Not only

salaries &wages)

BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET

38

39

SERVICE PROVIDERS

LIST OF SPECIALISTS,

CONSULTANTS AND

SERVICE PROVIDERS

BUDGET

YEAR 1

BUDGET

YEAR 2

BUDGET

YEAR 3

BUDGET

YEAR 4

BUDGET

YEAR 5

BUDGET

YEAR 6

BUDGET

YEAR 7

BUDGET

YEAR 8

BUDGET

YEAR 9

BUDGET

YEAR 10

Refer to Appendix F

TOTAL BUDGET

(SERVICES)

R416 922 188

R441 937 519

R468 453 770

R496 560 997

R526 354 656

R557 935 936

R591 412 092

40

TOTAL COST OF ALL TECHNICAL SKILLS AND SERVICES REQUIRED TO OPERATE THE MINE

CATEGORY BUDGET

YEAR 1

BUDGET

YEAR 2

BUDGET

YEAR 3

BUDGET

YEAR 4

BUDGET

YEAR 5

BUDGET

YEAR 6

BUDGET

YEAR 7

BUDGET

YEAR 8

BUDGET

YEAR 9

BUDGET

YEAR 10

IN HOUSE SKILLS AND

SERCICES 93 89 96 104 112 121 131

SKILLS AND SERVICES

PROVIDED BY

SUBCONTRACTORS

0 0 0 0 0 0 0

SKILLS AND SERVICES

PROVIDED BY SERVICE

PROVIDERS

0 0 0 0 0 0 0

TOTAL BUDGET FOR

TECHNICAL SKILLS

AND COMPETENCE

93 89 96 104 112 121 131

NB! THE TOTAL BUDGET FOR TECHNICAL SKILLS AND SERVICES AND COMPETENCE MUST BE TRANSFERRED TO LINE ITEM 6 IN THE CASH FLOW FORECAST

41

10 REGULATION 11(1) (g) (iv): DETAILS AND COSTING OF REGULATORY

REQUIREMENTS IN TERMS OF THE ACT AND OTHER APPLICABLE LAW, RELEVANT TO THE PROPOSED MINING OPERATION

10.1 Environmental cost forecast. 10.1.1 Rehabilitation cost estimate

(Refer to the guideline for Financial provision (described in Regulation 54 (1) (2) published on the Departments website. Complete 10 forecasts and paste them into this section, i.e. one for the progressive impact in each of the first 10 years of operation. The progressive total (10th year must be stated under this heading and also included into the first year of the cash flow under Regulation 11 (1) (g) (vi) below in the environmental cost category.)

As per the November 2015 Venn & Milford report the following provisions are made regarding rehabilitation: Planned Closure - R 963 186 381 Immediate Closure - R 739 573 923 This is due for update based in the planned completion of pit 5W end Q4 2016.

10.1.2 Socio Economic impact cost estimate. (Refer to the guidelines on community consultation, and the scoping report template. Estimate the risk of compensation to persons whose socio-economic conditions may be directly affected by the mining operation. Provide the estimated total under this heading and also include it into the first year of the cash flow under regulation 11 (1) (g) (vi) below in the environmental cost category).

The estimated total of compensation to persons is R143 500 000 Refer to Table below in section 11.1

10.1.3 Summary of estimated environmental cost: complete the

table below.

Estimated Environmental and Rehabilitation cost

CATEGORY COST ESTIMATE

a) Progressive total for rehabilitation R 256 708 420 b) Cost to mitigate socio-economic conditions of directly affected persons

R 7 845 000

42

TOTAL COSTS (Transfer amount to cash flow forecast – Line 7 Year 1 only)

R 264 553 420

10.2 Other Regulatory Costs (complete the table below)

Cost Amount per annum

Explanation on how amount was calculated

Royalties R5m % of Turnover Mine Health and Safety Regulations

R336000 Part of operational Cost

Occupational Health R5555526 Part of operational Cost Rates and Taxes R258488 Part of 28% Tax rate National Skills fund 1% of Labour Bill Other: Specify Other: Specify Other: Specify Other: Specify Other: Specify TOTAL COSTS (Include amount into the cash flow forecast – Line 7)

R6369772

The costs thus derived must be clearly explained and used to justify the numbers that are reflected in line item 7 of the cash flow forecast required in terms of regulation 11 (1) (g) (vi).

43

44

11 REGULATION 11 (1) (g) (viii): PROVISIONS FOR THE EXECUTION OF THE SOCIAL AND LABOUR PLAN 11.1 The following table must be duplicated here from the table in SECTION 5: FINANCIAL PROVISION of the

Social and Labour Plan ESTIMATED EXPENDITURE ON THE SOCIAL AND LABOUR PLAN IN A 10 YEAR PERIOD

ITEM

YEAR1 YEAR2 YEAR

3

YEAR

4

YEAR

5

YEAR

6

YEAR

7

YEAR

8

YEAR

9

YEAR10

HUMAN

RESOURCE

DEVELOPMENT

R20.2m

R21.8m

R22.7m

R23.8m

R25.2m

R26.7 R28.3m

LOCAL ECONOMIC

DEVELOPMENT

R4.5m R4.5m

R4.5m

R4.5m

R10.7m

R10.7m

R10.7m

MANAGEMENT OF

DOWNSCALING

ESTMATED TOTALS

PER YEAR

R24.7m

R26.3m

R27.2m

R28.3m

R35.9m

R37.4m

R39.0m

The costs quantified in the aforesaid categories must justify the numbers that are reflected in line item 8 of the cash flow forecast required in terms of Regulation 11(1)(g)(vi).

45

12 REGULATION 11 (1) (g ) (iv): DETAILS REGARDING OTHER RELEVANT COSTING, CAPITAL EXPENDITURE REQUIREMENTS AND EXPECTED REVENUE APPLICABLE TO THE PROPOSED MINING OPERATION.

12.1 Expected Revenue.

12.1.1 Explanation of revenue determination. (given the prices of the various relevant products and byproducts produced) how the price referred to in item 5.9 above, and the production referred to in item 6.1.4 above was arrived at and applied to each year’s production estimate in order to estimate revenue.

Kleinkopje Sells 2 products namely: Export Product and, Domestic Product.

12.1.2 Revenue forecast (for each year over the full period applied for based

on the above explanations. Note that this revenue estimate must be stated both here and in line item 3 of the cash flow forecast required below in terms of Regulation 11 (1) (g) (vi).)

2016 - R1,637b 2017 - R2,526b 2018 - R1,940b 2019 - R2,842b 2020 - R2,880b 2021 - R2,736b

12.2 Estimated Capital Expenditure

12.2.1 Initial capital expenditure.

(List of expenditure on the initial capital expenditure items).

N/A for existing mining operations

12.2.2 Ongoing capital expenditure(A discussion on ongoing capital

expenditure items and estimated amount thereof in each of the years in which it will be incurred).

Ongoing capital expenditure will be required for sustaining of the operation to provide for replacement as well updating technology. As the equipment age, its efficiency and maintenance costs would escalate resulting in the need to replace with new ones. Refer to the table below

46

12.2.3 Summary, in a 10 year tabular format. (stating the initial, ongoing, and total amount of capital expenditure in each of the first ten years in which it will be incurred. ) Refer to the Table below

12.3 Explanation and summary of other costs (not addressed elsewhere in the mining work programme, in each year in which they are to be incurred.)

Refer to the Table below

12.4 Summary of capital and other costs. Complete the table below

47

SUMMARY OF CAPITAL AND OTHER EXPENDITURE

CATEGORY

YEAR 1

YEAR 2

YEAR 3

YEAR 4

YEAR 5

YEAR 6

YEAR 7

YEAR 8

TEAR 9

YEAR 10

Initial capital expenditure NA Ongoing capital expenditure 124.4

2 164.960

273.27

34.3 35.967

35.0

Other costs specified in 12.3 above

TOTAL CAPITAL AND OTHER (To be reflected in the cash flow forecast)

124.42

164.960

273.27

34.3 35.967

(Note ! These total amounts must be transferred to line item 9 of the cash flow forecast required in terms of Regulation 11 (1) (g) (vi) below.

Year 1 - 4 is as per latest capital budget Year 5 as per prior year budget 13 REGULATION 11 (1) (g) (vi): A DETAILED CASH FLOW FORECAST AND VALUATION, EXCLUDING FINANCING

OF THE PROPOSED MINING OPERATION, WHICH FORECAST MUST ALSO CLEARLY INDICATE HOW THE APPLICABLE REGULATORY COSTS WILL BE ACCOMMODATED THEREIN.

48

(The following cash flow forecast must be submitted in accordance with the line items provided. The applicant may not change the line items or their sequence. The applicant may, however provide for escalation within accepted practice, and provide other indicators such as IRR in addition)

49

The Applicant may provide for escalation, based on accepted practice, and may provide other indicators such as IRR.

CASH FLOW FORECAST AND VALUATION (REGULATION 11(g)(vi)

Y1 R’000

Y2 R’000

Y3 R’000

Y4 R’000

Y5 R’000

Y6 R’000

Y7 R’000

Y8 R’000

Y9 R’000

Y10 R’000

TOTAL R’000

1

REGULATIONS 11(1) (d) and (f) PRODUCTION

4103

2679

2739

3051

3022

2985

2

REGULATION 11(1) (e) PRICE

399 943 708 931 953 917

3 REVENUE 1637

2526

1940

2842

2880

2736

4

REGULATION 11(1) (g) (i) MINING COST

809 920 907 963 1021

1082

5

REGULATION 11(1) (g) (ii) TECHNOLOGY COST

116 101 119 127 135 144

6

REGULATION 11(1) (g) (iii) TECHNICAL SKILLS COST

93 89 96 104 112 121

7 REGULATION 11(1) (g) (iv) REGULATORY REQUIREMENTS

6 6 6 6 6 6

ENVIRONMENTAL COST

8

REGULATION 11 (1)(G) (viii) SOCIAL AND LABOUR PLAN COST

24.7 26.3 27.2 28.3 35.9 37.4

9

REGULATION 11(1) (g) (v) CAPITAL AND OTHER

124.4

164.960

273.27

34.3 35.967

0

10 WORKING PROFIT/LOSS 79 487 75 877 792 518 11 TAX 22 136 21 61 222 145 12 NET CASH FLOW -13 394 -203 807 561 401

13 DISCOUNTED CASH FLOW

50

.

51

14 REGULATION 11 (1) (g) (vii): DETAILS REGARDING THE APPLICANTS

RESOURCES OR PROPOSED MECHANISMS TO FINANCE THE PROPOSED MINING OPERATION, AND DETAILS REGARDING THE IMPACT OF SUCH FINANCING ARRANGEMENTS ON THE CASH FLOW FORECAST.

14.1 Financing the cash flow

(Provide in tabular format an explanation of how the cash flow will be financed, showing the amounts, the type of financing, eg. Loans, equity, retained earnings, etc, as well as the impact of financing on the cash flow in terms of financial arrangements and repayments)

N/A

14.2 Detail regarding the financing arrangements (Elaborate on the financing arrangements that are described in item 14.1 above, in terms of where the finance will be sourced, extent to which the financing has been finalized and on the level of certainty that such financing can be secured.)

N/A

14.3 Confirmation of supporting evidence appended (Attach evidence of available funding and or financing arrangements such as balance sheets, agreements with financial institutions, underwriting agreements, etc. and specifically confirm in this regard what documentation has been attached as appendices).

N/A 15 REGULATION 11 (1) (h): UNDERTAKING, SIGNED BY THE APPLICANT,

TO ADHERE TO THE PROPOSALS AS SET OUT IN THE MINING WORK PROGRAMME

Herewith I, the person whose name and identity number is stated below, confirm that I am the Applicant or the person authorised to act as representative of the Applicant in terms of the resolution submitted with the application, and undertake to implement this mining work programme and adhere to the proposals set out herein.

Full Names and

Surname

Identity Number