Investor Presentation September 2015 Agenda 1. Operational - PowerPoint PPT Presentation

Investor Presentation September 2015

Agenda 1. Operational performance for the year ended 30 June 2015 a) Like-for-like Normalised Earnings to June 2015 3 b) Group Highlights 4 c) Somkhele Operational Highlights 5 d) Somkhele Sales Highlights 6 e) Petmin Group Balance Sheet 7 f) Capex and Investments 8 g) Pre-strip 9 h) Somkhele Production and Sales 10 - 11 2. NAIC 12 - 26 3. Veremo 27 - 28 4. Tendele BEE Transaction 29 - 33 5. Petmin strategy 34 - 35 2 September 2015

Like for Like Normalised Earnings to June 2015 up 38% Year ended 6 months ended 6 months ended Year ended % change (FY (R 000) 30 Jun 2015 31 Dec 2014 30 June 2015 30 June 2014 2015 Vs 2014) Profit/(loss) for the year 125 043 77 890 47 153 (119 425) Adjust for after-tax effect of: - Loss on sale of PPE 9 - 9 5 999 - Mark to market of listed investments - - - 13 464 - Impairments 7 064 7 064 - 200 834 - NRV impairment of inventory - - - 6 703 - Reversal of accruals - - - (5 855) Normalised profit after tax 132 116 84 954 47 162 101 720 30% Shares in issue (millions) 544 577 (6%) Adjusted profit per share 24.28 15.88 8.40 17.63 38% Production and sales 657 231 678 002 Anthracite tonnes produced 1 335 233 1 125 089 19% 562 396 659 754 Anthracite tonnes sold 1 222 150 1 026 250 19% Anthracite cost per tonne R657 R665 R650 R708 (7%) Energy product produced 368 413 196 939 171 474 244 298 51% Energy product sold 352 255 83 467 268 788 174 556 102% Energy product cost per tonne R175 R161 R191 R230 (24%) 3 September 2015

Group Highlights Normalised profit after tax up 38% from R102m (17.63cps) to R132m (24.28cps) Normalised Profit After Tax despite a 2% reduction in at-mine-gate export prices (ZAR) Headline Headline earnings per share (HEPS) up 62% to 24.28cps (2014: 14.95cps) Earnings Annual Annual revenue of R1.27 billion up 25% (2014: R1.02 billion) Revenue Net Cash Net cash flows from operating activities up 35% to R901m (2014: R668m) Flows BEE Transaction arranged to ensure new shares (20%) flow to the community and Transaction employees for R350 million, subject to shareholder approval Market conditions have prevented the unbundling of NAIC. The project remains on NAIC track and a site has been selected Dividend A dividend of 5 cents per share declared Dividend of R17m paid during the year Shareholders 28m shares acquired during the year at an average price of R1.53, for a total of R44m 4 September 2015

Somkhele Operational Highlights Lost Time Injury Frequency Rate of 0.214 (2014: zero), and complimented by NOSA for Safety the continuous focus on risk and the implementation of measures to eliminate and Performance control those risks Yields Production yields up 5% from 41.85% to 44.13% Costs Ex-mine gate cost per tonne of R 657 (2014: R708) 3 March 2014 independent Competent Persons Report valued Somkhele at ~ZAR1.6 CPR billion (~ R2.90/Petmin share). Updated CPR to be published shortly Anthracite Anthracite production increased by 19% to 1 335 233 saleable tonnes (2014: 1 125 Production 089 tonnes) Energy Coal Energy coal production up 51% to 368 413 tonnes (2014: 244 298 tonnes) Energy Cost Ex-mine gate cost per tonne of R 175 (2014: R230) Tendele concluded a 2 year wage agreement with NUM and AMCU, effective from 1 July 2015, comprising of a Total Cost To Company (TCTC) increase of 8.6% for Salary and 2015/2016 and 6.5% for 2016/2017. In addition, a 3 year wage agreement was signed Wage with Solidarity comprising of a TCTC increase of 6% for 2015/2016, 6.5% for Negotiations 2016/2017 and 7% for 2017/2018. A TCTC increase of less than 6% for 2016 was agreed with mine management and HOD’s 5 September 2015

Somkhele Sales Highlights Increased sales volumes of 19% to 1 222 150 tonnes (2014: 1 026 250 tonnes) were Anthracite offset by a 2% reduction in at-mine-gate export prices (ZAR) reflecting tough international market conditions for metallurgical and thermal coal Domestic sales of anthracite were up 24% from 553 194 tonnes in 2014 to Domestic Market 683 573 tonnes Export Export sales up 14% from 473 056 tonnes to 538 577 tonnes Market Energy Sales of energy coal increased 102% to 352 255 tonnes (2014: 174 556 tonnes) Coal 6 September 2015

Petmin Group Balance Sheet Audited 30 June 2015 ASSETS (R ‘000) 30 June 2015 30 June 2014 Non-current assets 1 569 463 1 552 484 Property, plant and equipment 1 062 878 1 122 531 Investment in equity accounted investee 337 572 420 452 Investment / Loan -Joint Venture 61 133 67 381 Investments 25 000 25 000 Current assets 621 395 482 951 Inventories 250 118 264 532 Trade and other receivables 110 249 121 549 Current tax assets 3 681 2 095 Cash and cash equivalents 257 347 94 775 Total assets 2 190 858 2 035 435 EQUITY AND LIABILITIES (R ‘000) 30 June 2015 30 June 2014 Ordinary share capital and reserves 1 284 849 1 169 304 Non-current liabilities 451 362 602 692 Interest bearing loans and borrowings 108 405 289 159 Deferred taxation liabilities 258 632 246 670 Environmental rehabilitation provision 84 325 66 863 Current liabilities 454 647 263 438 Trade and other payables 138 377 116 520 Revenue in advance 147 562 - Current portion of non-current liabilities 143 671 75 042 Hedge liability 4 628 - Bank overdraft 20 409 71 876 Total equity and liabilities 2 190 858 2 035 435 Net Gearing (interest bearing debt/equity) 12.66% 29.19% 7 September 2015

Capex and Investments 12 months 12 months (R million) 30 Jun 2015 30 Jun 2014 Total capital expenditure - excluding pre-strip 28 45 Somkhele 26 39 Group 2 6 Capital pre-strip (57) (23) Capital expenditure including pre-strip (29) 22 Investments 38 74 NAIC 29 68 CPF 3 Somkhele Plant JV (6) 6 West Road Property 12 - Total Capex and Investments * 9 96 * Estimated Capex for 2016 of R83 million at Tendele with a further investment of $4 million into NAIC 8 September 2015

Pre-stripping costs Somkhele: Pre-strip costs June 2015 June 2014 Opening balance on balance sheet 305 328 Cash spend in the period 448 498 Mining – expensed on units of production basis (Depreciation) (505) (521) Closing balance on the balance sheet 248 305  Petmin incurred cash stripping costs amounting to R448 million during the current period (2014: R498 million). It is Petmin’s accounting policy to record the cash cost incurred on these stripping activities as additions to mine development cost under property plant and equipment (a non-current asset).  These capitalised cash costs are expensed (depreciated) as coal is extracted. This is done on a units-of-production basis over the life of the component of the ore body to which access is improved and amounts to R505 million during the current period (2014: R521 million). This resulted in a net decrease in the capital expenditure capitalised to pre-stripping activities of R57 million during the current period (2014: decrease of R23 million).  The depreciation is, in reality, the mining cost (stripping cost) that is expensed during the period when run-of-mine coal is removed from the pit. 9 September 2015

Somkhele Production and Sales (tonnes or BCM) 30 June 2015 30 June 2014 % Change BCM overburden mined 6 639 766 6 757 099 (2%) ROM tonnes mined 2 965 355 2 719 984 9% ROM tonnes washed 3 025 567 2 688 561 13% Discard tonnes washed 1 374 716 1 174 419 17% Total tonnes washed 4 400 283 3 862 980 14% Yield (Anthracite only) 44.13% 41.85% 5% Yield (Energy Coal) 26.80% 20.80% 29% Saleable tonnes produced - Anthracite 1 335 233 1 125 089 19% Tonnes sold – local 683 573 553 194 24% Tonnes sold – export 538 577 473 056 14% Tonnes sold – anthracite total 1 222 150 1 026 250 19% Saleable tonnes produced – Energy coal 368 413 244 298 51% Tonnes sold – Energy coal 352 255 174 556 102% 10 September 2015

Forecast Sales to June 2016 2016 2016 2016 Market/Product June 2015 Confirmed Unconfirmed Total Export 538 577 278 206 425 000 703 206 Inland 683 573 662 151 - 662 151 Total Anthracite 1 222 150 940 357 425 000 1 365 357 Energy Coal 352 255 253 488 150 000 403 488 11 September 2015

NAIC

Executive Summary: NAIC • The purpose of this Executive Summary is to provide a synopsis of the status of this multifaceted and complex project • It is virtually impossible to do justice to the enormous amount of work undertaken and completed over 5 years in a few slides and it is trite that one cannot develop any sense of the magnitude, complexity and potential of the project without going into a degree of detail • In sum, despite a 50 % drop in the price of Merchant Pig Iron (“MPI”) and numerous extraneous other hurdles, we have developed a detailed business model, based on real inputs, backed by the best in the business, that has enabled us to maintain our required return profile • 4 production cases were designed and reviewed by Tenova and NAIC: − 2 production levels – 425ktpa and 850ktpa − 2 smelting furnaces – electric arc furnace (“EAF”) and submerged arc furnace (“SAF”) − All cases include pre-reduction in a rotary hearth furnace (“RHF”) • The economics of each case are reviewed in the detailed presentation however the IRRs were all very similar - The qualitative, and risk and risk mitigation factors are what ultimately lead to the decision 13 September 2015