The mineral resources and ore reserves underpinning Exxaro’s current operations and growth projects are summarised in the tables on pages 48 to 55. Mineral resources are reported inclusive of ore reserves and at 100%, irrespective of the percentage attributable to Exxaro, except in the case of Gamsberg and Black Mountain because figures received from Anglo Base Metals represent resources exclusive of reserves. Significant changes in the resource or reserve figures have been explained by relevant footnotes attached to each table. Mineral resources and ore reserves were estimated by competent persons on an operational basis and in accordance with the Samrec Code (2007) for South African properties and the Jorc Code (2004) for Australian properties. Ore reserves in the context of this report have the same meaning as “mineral reserves”, as defined by the Samrec Code of 2007. All the competent persons have sufficient relevant experience in the style of mineralisation, type of deposit, mining method and activity for which they have taken responsibility, to qualify as a “competent person” as defined in these codes. These competent persons have signed off their respective estimates in the original mineral resources and ore reserve statements for the various operations and consent to the inclusion of the information in this report in the form and context in which it appears. A list of Exxaro’s competent persons is available from the company secretary on written request.

The processes and calculations associated with the estimate have been audited by internal competent persons and, on a three- to four-year cycle basis, by external consultants. In the case of Namakwa Sands, which was acquired by Exxaro in 2008, the figures listed in the tables represent the tonnages quoted in the Anglo American 2007 financial statements, depleted by tonnages mined during the reporting period.

The person within Exxaro designated to take corporate responsibility for mineral resources and ore reserve, HJ van der Berg, the undersigned, has reviewed and endorsed the reported estimates.

HJ Van Der Berg

MSc (Geology), BSc (Hons)  
Pr Sci Nat (400099/01)  
Manager Mineral Assets

Comment

Exxaro’s tenure over its mineral assets as listed in the tables was audited and is confirmed with the following consideration. The appeal against the refusal of a prospecting right over several farms included in the Leeuwpan and Strehla mineral resource figures is still pending. This issue is being addressed at senior level and positive progress has been made. The new mining right application over certain Leeuwpan properties is still under consideration by the Department of Minerals and Energy (DME).

Exxaro applied for the conversion of all ex-Kumba oldorder mining licences to new-order mining rights in 2005. Additional information requested by the DME has been provided. Applications for the conversion of all ex-Eyesizwe mines were submitted in 2008, well ahead of the final date for submission on 30 April 2009. Exxaro received written confirmation from the DME in December 2008 that the ex-Kumba mining licences have been converted. The DME needs to schedule the execution of these rights.

Exxaro’s coal resources in the Waterberg coalfield, both in the form of the existing mining area and prospecting rights, are regarded as one of the cornerstones of the company’s future, and their management and optimisation will remain a focus area in 2009. Prospecting rights in the Mpumalanga coalfield are being prioritised to determine the optimum fit in the company’s growth strategy.

Internationally, additional exploration done on the Moranbah South project in Queensland, Australia, in co-operation with Anglo Coal Australia, has confirmed that it is a valuable coking coal resource. The pace of exploration will be increased in 2009 to facilitate the start of a feasibility study on certain areas by 2010. The other international resources growth opportunity – namely iron ore in Turkey – was pursued through an intense exploration programme during the eightmonth long exploration cycle (April to November) and the potential for a small, but profitable, operation established. The 2009 programme will focus on taking the potential mineral resource to pre-feasibility/feasibility level and an investment decision. Base metal potential in Turkey will also be evaluated in 2009 to determine whether it fits Exxaro’s growth strategy. At Rosh Pinah zinc mine, boreholes based on the conceptual extension of the ore model intersected good mineralisation and drilling to delineate the mineralised area will continue in 2009.

The objective to manage and grow Exxaro’s mineral assets was strongly pursued during the review period and will continue in 2009, with distinct focus on prioritised targets. The approach will be to enhance understanding of the mineral resources through the innovative integration and interpretation of available information and by tracking value creation. The foremost objective will be to support Exxaro’s quest to continually improve on safe working conditions. Equally important are the mineral resources needed to sustain Exxaro’s competitiveness through the challenges ahead, but ultimately it is critical to ensure Exxaro has the mineral assets available on which to base its growth strategy when the cycle turns positive again.

Table 1: Exxaro’s Mineral Resource estimates for 2007 and 2008