Makhado Project

Ownership	100%
Location	Limpopo province, South Africa, north of Soutpansberg Mountains, 65km southwest of Musina, 80km southeast of Vele Project
Infrastructure	Excellent existing rail (from Musina directly to Matola), road, power (Eskom) and port allocation (Matola Coal terminal)
Status	Project development
Life of mine	16 years
Product	12.6Mtpa run of mine coal yielding 2.3Mtpa hard coking coal and 3.2Mtpa thermal coal for domestic or export markets
Reserves	172.73Mt mineable tonnes in situ
Resource	344.8Mt mineable tonnes in situ
Mining method	Opencast
Regulatory status	Full suite of authorisations
New order mining right	Granted in May 2015 for 20 years
Environmental Authorisation	Granted in August 2013, transferred to Baobab and validity period extended in July 2016
Integrated Water Use Licence	Granted in January 2016, valid 20 years but currently suspended following an appeal against the licence

Abridged summary of JORC-compliant resources and reserve statement 30 June 2016	JORC-compliant resources (measured, indicated and inferred)¹
	Gross tonnes in situ (Mt)	Gross tonnes in situ (Mt)	Mineable tonnes in situ (Mt)
Makhado Project	795.6	691.6	344.7

Resources are stated inclusive of reserves The resource, defined in accordance with the 2004 JORC Code, has not been updated since to comply with the 2012 JORC Code on the basis that the information has not materially changed since it was last reported