CLICK TO EDIT MASTER TEXT STYLES

CLICK TO EDIT MASTER TEXT STYLES 4 JULY 2016 01 July 2016

ALIGNING EXXARO’S ACTIVITIES WITH THE UN

SUSTAINABLE DEVELOPMENT GOALS (SDG)

Corporate Water

Stewardship in Support

of the Water-Related

SDGs

NBI Workshop

Emela Mochubele,

Water Efficiency

Manager

1

Disclaimer

Opinions expressed herein are by nature subjective to known and unknown risks and uncertainties. Changing information or circumstances may cause the actual results, plans and objectives of Exxaro Resources Limited (the “Company”) to differ materially from those expressed or implied in the forward looking statements. Financial forecasts and data given herein are estimates based on the reports prepared by experts who in turn relied on management estimates. Undue reliance should not be placed on such opinions, forecasts or data.

No representation is made as to the completeness or correctness of the opinions, forecasts or data contained herein. Neither the Company, nor any of its affiliates, advisors or representatives accepts any responsibility for any loss arising from the use of any opinion expressed or forecast or data herein. Forward-looking statements apply only as of the date on which they are made and the Company does not undertake any obligation to publicly update or revise any of its opinions or forward looking statements whether to reflect new data or future events or circumstances.

2

PRESENTATION LAYOUT 2

Exxaro Resources Ltd Business Overview

Overview of the SDGs related to mining activities

SDG-6 : Clean water and Sanitation

SDG6.1 Access to clean water – Zeeland Plant in Waterberg

SDG6.1 Access to clean water – Water need assessment in Mpumalanga

SGD 6.4 Increase Water Use Efficiency

SDG 6.3 Improving the water quality – Matla water treatment plant

3

EXXARO RESOURCE LTD BUSINESS OVERVIEW 3

We are one of the largest South

African-based diversified resources

companies with coal and iron ore

assets worth R52,6 bn .

We number 1 employer in the mining

industry in South Africa

We are a 50%+ BEE-owned

business

Woman Actual 19.06%

Greater than 50% HDSA on all

management levels

Market capitalisation ~R 15,8bn

Core coal net operating profit:

R4,3bn

* 2015 annual results

At a glance…….

OPERATIONS IN SOUTH AFRICA

Limpopo

Mpumalanga

Free State

North West

Northern Cape

Western Cape

Grootegeluk Matla

NBC Glisa

Arnot

Inyanda

Leeuwpan Reductants

Eerstelingfontein

Tshikondeni

Thabametsi

Hlobane Mine

DNC Mine

Strathrea

Key

Active operations

Joint Venture Operations

Expansion Projects

Operation in closure

Mafube JV

Belfast

4

5

Sustainable Development Goals 5

Major issue areas for mining and the SDGs

Source: World Economic Forum, Feb 2016

6

Sustainable Development Goals – SDG 6: Clean Water and Sanitation

6

Key UN SDG6 targets relevant for mining

• 6.1 By 2030, achieve universal and equitable access to safe and affordable drinking water for all.

• 6.2 By 2030, achieve access to adequate and equitable sanitation and hygiene for all and end open defecation, paying special attention to the needs of women and girls.

• 6.3 By 2030, improve water quality by reducing pollution, eliminating dumping and minimizing release of hazardous chemicals and materials, halving the proportion of untreated wastewater and substantially increasing recycling and safe reuse globally.

• 6.4 By 2030, substantially increase water-use efficiency across all sectors and ensure sustainable

withdrawals and supply of freshwater to address water scarcity.

• 6.a By 2030, expand international cooperation and capacity-building support to developing countries in water- and sanitation-related activities and programmes, including water harvesting, desalination, water efficiency, wastewater treatment, recycling and reuse technologies.

• 6.b Support and strengthen the participation of local communities in improving water and

• sanitation management.

7

SDG 6:1 - PROVISION OF DRINKING

The Case for Zeeland Water treatment plant 7

• Public Private Partnership project between Exxaro, Eskom and Municipality

• Constructed in the early ‘80 with a capacity of 16Mℓ/d facility

• Exxaro operates and maintain the plant

• Municipality is responsible for distribution of potable water to the Lephalale

communities and the surrounding township (at cost)

• Facility supplies potable water to over 21,000 residents

• Standard laboratory tests conducted at Exxaro Grootegeluk mine and a third party lab

conducts full chemical and microbiological test monthly.

8

• Due to the population growth, an expansion

water treatment project was undertaken

• Exxaro invested R110 million to kick-start

construction in 2010

• The 40Mℓ/d plant was fully commissioned in

2014

• Zeeland WTW has been awarded the prestigious

Blue Drop Certification by the Department of

Water and Sanitation. Completed 40Mℓ/d facility

SDG 6:1 - PROVISION OF DRINKING

The Case for Zeeland Water treatment plant

9

SDG 6:1 - PROVISION OF DRINKING

Water needs assessment in the Mpumalanga area

Village

Population

Distance from the mine

Current Water Source

Comments

Lines Area (Emalayini) 400 people

6 Km

Emalahleni local municipality

Jojo tank System, infrequent

Boshoff Farm (Machisa) 90 people

6 Km

Emalahleni local municipality

Jojo tank System, infrequent

Onverwacht Farm (Kinross and Ogies Rd)

50 people

5Km

Emalahleni local municipality

Jojo tank System, infrequent

Village

Population

Distance from the mine

Current Water Source

Comments

Vlaakfontein 52 people

18 Km Pipe from farmer's house supplying livestock

No water supply

Kleinfontein Farm B19 72 people

29 Km Farmer's house/tap in farmer's yard

virtually no water supply

Kleinfontein Farm Emadamini

90 people

25Km old pipe pumping system not working

No maintenance for the pumping system as a result out of order

Beestepan Farm 56 people

30Km Petrol station nearby virtually no water supply

Noodgedacht Farm 35 people 15Km Nearby spring fountain/neighbouring farms

No water supply

MA

TLA

A

RN

OT

10

SDG 6.4 INCREASE WATER USE EFFICIENCY

The Case for Exxaro Coal Operations 10

• Setting water savings targets across all operations

• Process water re-use and recycling is optimised

across all coal operations as part of IWUL conditions

and social responsibility

• Installation of dewatering process equipment

reduces water in coal streams

• Smart management of ultrafine(<45um) coal slurry

fines to increase dewatering and recycling of process

water

Installation of HBF (HyperBaric filter) for

solid/liquid separation

Medupi Plant

Cyclic Ponds for Coal Slurry Dewatering

Grootegeluk

11

SGD6.3 IMPROVING WATER QUALITY

The Case for Exxaro’s Matla water treatment plant 11

Exxaro invested R250

million to build a Reverse

Osmosis plant at Matla to

address with underground

excess water.

The plant capacity is

10mega litres

2.5MLD is used back in the

mine

7.5MLD of clean water is

discharged to the

environment

Enable access to clean

water to downstream

users.

12

Questions? 12