Site Visit to Sishen Mine 14 April 2010 Summary: Kumba Iron Ore - PDF document

Site Visit to Sishen Mine 14 April 2010

Summary: Kumba Iron Ore • Large hematite ore body: ± 14km x 3 2km x 400m: 2 4bt resource � 1 6bt reserve • Large hematite ore body: ± 14km x 3.2km x 400m: 2.4bt resource � 1.6bt reserve • Hard ore: 60:40 lump to fine ratio • Mining started in 1953; First ore exported in 1976 • Highly mechanized continuous blending mining operation Highly mechanized, continuous blending mining operation • Entire Run-of-Mine (ROM) beneficiated – Dense medium separation (DMS) - drums and cyclones – JIG gravity separation – Coarse, medium and fine jigs • Products – 25mm 66% Fe lump – 25mm 64% Fe lump – 27 and 20mm 66% Fe lump – niche products – 27 and 20mm 66% Fe lump – niche products – 8mm 65% Fe course sinter – niche product – 6.3mm 64% Fe fines • Consistent product quality is ensured through final product blending and reclaiming at Sishen before dispatch to customers Sishen before dispatch to customers • Export ore is transported via the Sishen-Saldanha Iron Ore Export Channel (IOEC) to Saldanha port 2

Sishen Mine Management Team Andrew Loots General Manager Hannes Lambert Hannecke Gerhard Brits Susan Howard Supply Cronje Mostert Nico Smit Retief Louw Da Silva Anel Marais Projects Bezuidenhout Nicholas Manager Mining Engineering Plant Manager Manager BI Manager Manager SD Manager Manager HR Manager SHE Vacant Manager Manager Finance

Safety: LTIFR Sishen and Safety Achievements 2009 LTIFR LTIFR – Sishen Mine – 2010 – YTD Sishen Mine 2010 YTD LTIFR - SISHEN MINE - 2010 - YTD 0.9 0.85 • LTIFR = 0.09, the best ever. 0.8 • TRCFR = 1.32, the best ever. • LTIs for the year 2009 = 9, the best ever. 0.7 • Man hours worked without LTI = 5 443 746, the best ever. 0.6 • Safe days = 102, the best ever. 0 51 0.51 • Fatalities = 0, the first year since 2004 without a fatal. 0.48 0.5 0.4 0.29 0 3 0.3 0.23 0.22 0.2 0.14 2010 - Sishen Target - 0.06 0.09 0.1 0.06 0 06 0 Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- 2002 2003 2004 2005 2006 2007 2008 2009 10 10 10 10 10 10 10 10 10 10 10 10 0.85 0.48 0.51 0.29 0.22 0.23 0.14 0.09 HISTORY ACTUAL 0 0.13 0.17 0 0 0 0 0 0 0 0 0 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06 SISHEN TARGET 4

5 • Waste ramp up • SWEP View of ore body

Summary of Production trends 2006 2006 200 2007 2008 2008 2009 2009 Total Tons Handled (Including Contractors) 108,146,936 122,223,344 128,852,640 152,961,734 ROM to Crusher Production 32,252,855 32,965,188 44,282,717 52,169,049 Expit Waste 59,081,159 65,696,664 64,207,926 81,266,739 Expit Stripping Ratio 1.902 1.713 1.440 1.758 Resource (Mt) 691.5 1,316.00 1,565.30 1,362.10 Reserve (Mt) 1,053.80 1,032.50 956.9 911.5 Truck Fleet (Primary Equipment) 55 55 62 Shovel Fleet (Primary Equipment) 15 14 16 Production Production 2006 2006 2007 2007 2008 2008 2009 2009 DMS 28,691,977 29,550,673 28,394,804 28,957,233 JIG 172,928 4,746,532 10,430,445 Additional 897,270 Total Production Total Production 28,691,977 28 691 977 29 723 601 29,723,601 34 038 606 34,038,606 39 387 678 39,387,678 6

Jig Plant Flow Diagram TERTIARY Feed Crusher & SEP SEP 3981 tph Bunkers Screening ROM ROM 5451 FEED 3331 tph FEED 21.7Mtpa hpa Bed 1 Bed 2 6500 hpa 3179 tph 6825 hpa p BENEFICIATION 8 M d l BENEFICIATION 8-Modules -8mm Coarse JIG dewatering nr 1 1998 tph Blending beds Blending beds Medium JIG Fine JIG nr 1 nr 1 Final Products Lump Fine 7,9 5,1 Mtpa Mtpa Mtpa Mtpa

Average Monthly Yie eld Monthly Jig Plant Yield 10 20 30 40 50 60 70 0 0 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 Monthly Jig Plant Yield May-09 Jun-09 Month Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10

DMS Plant Flow Diagram PRIMARY & TERTIARY SECONDA Crusher Fine Coarse Medium Coarse Washing & Up Current RY Crusher Cyclone Cyclone Drum Drum Screening Classifier DRS IN-PIT Screenin Crusher g Blending beds Final Products Fi l P d t Quaternar Quaternar C.S Lump DRS DR Fine y y Ore Ore Ore Ore Ore Screening Crushing 8mm 25mm 27mm 20mm 5mm

Monthly Product to waste loss(%) 3 2.5 2 uct to Waste (%) 1.5 Produ 1 Target=0.8% 0 5 0.5 0 y e y t r r r r y y h s a l e e e e r n u r c u b b b b a a M u r J g m o m m u u a J u t n r M A e c e e b a t O v c e p J o e F e e N N D D S S Months (2009 to date)

Asset Optimisation P Project Bokamoso: Initial achievements j t B k I iti l hi t February 2010 % improvement vs. KPIs Baseline performance baseline Trucks and Daily tonnes Shovels handled 218kt 305kt +40 OEE 51% 64.8% +27 Mean time to repair (shovels) 2.39 hours 1.7 hours -29 D illi Drilling and d D il Daily metres t Blasting drilled 1558m 2454m +57 OEE 39% 48.1% +23 Daily ROM Jig Plant stacked 58kt 61kt +5 11

Asset Optimisation Project Bokamoso: Initial achievements P j t B k I iti l hi t 330000 310000 290000 290000 270000 250000 230000 210000 190000 170000 150000 Baseline e r ct r Mar May y n Jun l Aug g Sep p Nov v c Dec Jan n b Feb Ju Oc Ap TTH Baseline 2 per. Mov. Avg. (TTH) 12

Social and Community Development Initiatives Education Multipurpose Skills • Whole school development Training Centre • Teacher development • Teacher development • Enterprise development: • Enterprise development: • Integration of SD into HR training, mentoring, support Health interventions • Various skills programmes • UGM Clinic • Rural libraries • Community access (rural) • Early Childhood Development Development 2010: 2010: Priorities SLP SIOC Community Small business Start-up Hubs • Delivering long term Development Trust • Expand Sishen Hub sustainable value • Alignment • New business hubs at • Partnerships • Partnerships Thabazimbi and Kolomela Thabazimbi and Kolomela • Resourcing the hubs

Summary There are five distinguishing features of Sishen’s operations and products: There are five distinguishing features of Sishen s operations and products: At Sishen Mine we … • passionately care about our people, environment and the community • have experience in mining and beneficiating iron ore • supply on a reliable basis a product of constant quality and superior physical properties to our clients • are used to operating is a challenging environment with year-on-year growth • deliver on our promises 14