1. Rand Merchant Bank Morgan Stanley: Big 5 Investor Conference
15-17 September 2010
Wim de Klerk
Finance Director

2. Doing business in South Africa
Contents
Our country
Today
Risks and challenges
Our industry
Our business
Conclusion
Addendum
Doing business in South Africa

3. South Africa in the world
45th most competitive economy out of 133 countries
Stable constitutional democracy
3,3% average growth p/a
CPI inflation under control and mostly within target range
South Africa economy: 3,2% real GDP growth in 4Q09 Labour participation rate of 42%
Financial markets ranked SA highly for sophistication and protection of investors
Strong currency - low interest rates
2010 Soccer World Cup (9 out of 10)
The country is ranked 90 out of 133 for labour market efficiency
South Africa’s key figures
Population : 49 million
GDP : $287 billion
GDP per capita : $5,600
Unemployment : 25,2% (conservative)
State grants : More than 12 million
No of taxpayers : ± 7,5 million
(5.4 individual)
Education budget : 20% of revenue

4. Risk 1 : Double dip recession
Euro zone fiscal solvency
Global financial stability
US and China’s property bubble
SA GDP and exports strongly dependent on world economy
In 2009 exports were equivalent to 27,5% of SA GDP

5. Risk 2: Political stability
“Political risk can simply be defined as the risk of losing money due to changes that occur in a country’s government or regulatory environment”. John Christie
Government
Positives
Openness to foreign investment
Macro-economic management
Strong and independent Reserve Bank
Negatives
Influence on policy by the “left”
Pressure toward developmental state
Threat to press freedom
Industrial action
Regulatory environment
Increased bureaucracy
Allocation of property rights and farm land
Continuing debate on nationalisation of mines
Unresolved matters - mineral rights application, permits and licences
"We reiterate that nationalisation is not government policy" President Zuma in parliament in a reply to debate on his state-of-the-nation address February 2010

6. Risk 3: Infrastructure Constraints
Fixed investment as % of GDP 2009 5 10 15 20 25 30 35 40 45
1970
1980
1990
2000
2009
2015
2025
% of GDP
China
Japan
South Africa
United States
Forecast
Actual
Constraints
Ageing road, water and electricity infrastructure
Bottlenecks due to insufficient capital spending
Lack of infrastructure in rural areas
Inefficient service delivery
Wastage and unauthorised use
Inadequate billing management
Opportunities
Proven success with mega projects
Government aggressively invests:
Railway: five year R93.4bn capital investment plan
Water: R30bn investment required by 2025
Power: R263bn by 2020
Eskom electricity supply and demand (TWh)
255
259
258
266
250
265
273
280
260
270
290
300
2010
2011
2012
2013
2014
Supply available
Energy required
Supply gap

7. Risk 3: Infrastructure - electricity
Scenarios based on average NERSA projected tariffs*
Electricity prices in SA will increase significantly
The degree to which industry in SA adapts to higher prices will determine new generation capacity
Greater energy efficiency is inevitable and will contribute to the continued competitiveness of industry
Electricity sales by Eskom to SA industry 2008 #
Scenarios compared to capacity*
# Source: Frost and Sullivan
* Sources: Energy Information Administration, NERSA, IHS, CIA Factbook, Exxaro Analyses

8. Mathematics National Benchmark Test levels
Risk 4: Human capacity
Mathematics National Benchmark Test levels
SA February 2009
Growth too slow to tackle >20% unemployment
Income inequality (Gini-coefficient 0,59)
>27% South Africans live < $1,25 per day
Unskilled and unemployed youth
Mathematics and science proficiency
Xenophobia: estimated at 4 million illegal immigrants
Family structures: mothers at school and child headed households
Fraud and corruption
Transformation and equality
One out of 5 people will successfully be absorbed into the formal sector - Bruggemans
Proficient
Basic 7%
20%
Intermediate
73%
Seifsa Chairman report 2008
Unemployment rate per age group (%) 20 40 60 80
No education
Grade 1-8
Grade 9-11
Grade 12
Dipl/cert
Degree
18-24
25-34
Source: UCT 2009
Sustainable, balanced and labour absorbing economic growth is key to reducing unemployment and poverty - creation of meaningful employment

9. Risk 5: Reliance on the state
Legacy of inadequate black education
Low participation in the labour force contributes to low productivity and sustained high poverty levels
People receiving social support grants increased from 2,4million to 13million since 1997
Child support grants went from zero in 1997 to 8,8million in 2009
5,2% of GDP currently goes towards social grants
Individual income taxpayers and social welfare recipients 14 12 10 8 6 4 2
2004
2005
2006
2007
Taxpayers
Social grant recipients
Source:UCT 2009
Remuneration of labour is ultimately determined by skills which are in turn a function of education and training

10. Doing business in South Africa
Contents
Our country
Today
Risks and challenges
Our industry
Our business
Conclusion
Addendum
Doing business in South Africa

11. Global top 10 mining countries - mining GDP (2008 US$bn)
Mining in South Africa
South African reserves for key minerals (% of global)
Creates 1 million jobs*
Accounts for ~ 18% of GDP* and investment*
Critical foreign exchange earner - >50%
Attracts foreign investments >30% of JSE value
Represents 18,5% of corporate tax receipts
50% volume of Transnet’s rail and ports
Generates 93% of electricity via coal power plants
Constitutes15% of electricity demand
Key foundation industry - enabled South Africa to become the most industrialised country in Africa
Significant contributor to transformation in the economy
Global top 10 mining countries - mining GDP (2008 US$bn)
* Direct and indirect
Source: Global Insight
SA dropped 12 places to 61st in the 2009/10 Fraser Institute of Mining Companies’ survey.

12. SA’s mining performance
Global top 10 mining countries by growth in mining value added ( real US$ terms)
From 2001 to 2008 global mining grew by >5% per annum
SA mining declined by 1%
If SA mining had grown at 5% in this period, direct value would increase by $8billion, creating about additional mining jobs
The gross value added by mining sector had shrunk from R103bn in 1993 to R92bn in 2009
The number of people employed fell from about 830k in 1987 to just below 500k because of the global recession and domestic issues like amongst others, electricity shortages
SA capital investment expanded by a factor of two from 2000 to 2009 compared to an Australian factor of five
SA mining & quarrying capital investment / value added - real 2005 values
Gross fixed capital formation (Rm)
Gross value added (Rm)
95 000
Gross fixed investment
85 000
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
Source: Global Insight
Gross fixed investment
Gross value added

13. South African and Exxaro’s mining business risks
Financial
Compliance
Climate change concerns
Price and currency volatility
Access to capital
Capital allocation
Cost management
Resource nationalism
Skills
shortage
Maintain social license to operate
Governance and regulatory efficiency
Infrastructure access
SA View
Exxaro view
Access to secure energy
Strategic
Operational
Source: Adjusted from Ernest and Young
“Developments in South Africa's mining sector will not lead to changes to the country's sovereign rating and outlook, international ratings agencies Moody's and Standard & Poor's.”INet Bridge17 August 2010.

14. Mining stakeholders’ response to these risks
Agreement by tripartite leadership to develop “Strategy For Sustainable Growth And Meaningful Transformation Of The South African Mining Sector” to be developed by tripartite under auspices of The Mining Industry Growth, Development and Employment Task-team (MIGDETT) (including other key government departments) will:
Address macro-economic issues that could impact the industry’s competitiveness
Limit retrenchments
Develop human capital
Develop infrastructure in time for the next up-cycle
Substantive tripartite declaration on 13 topics signed on 30 June 2010, e.g.
Promoting growth and transformation
Innovation, productivity and cost competitiveness
Sustainable development in mining
The Chamber of Mines has the role to ensure addressing of:
Lack of clarity in laws (review of Mineral and Petroleum Resources Development Act)
Time periods for processing and granting rights raised
Understanding the refusals and rejections
"We are definitely not going to nationalise mines" Susan Shabangu 8 July 2010

15. Doing business in South Africa
Contents
Our country
Today
Risks and challenges
Our industry
Our business
Conclusion
Addendum
Doing business in South Africa

16. Exxaro Resources : history16
2001
2006
2008
NAMAKWA
SANDS
Restructuring ensures compliance to South Africa’s mining charter

17. Exxaro Resources : Corporate structure17
Anglo
American
Free float
BEE
HoldCo
Employees’ Shareholding trust
9.9%
34.2%
52.9% 3%
Exxaro
Resources Ltd
100%
20%
Sishen Iron Ore
4th largest supplier
in international seaborne trade
Exxaro Coal
4th largest SA coal producer:
9 mines, 45Mtpa
Exxaro Base Metals
only zinc producer in SA:
3 operations in
3 countries
Exxaro Sands
3rd largest mineral
sands producer:
3 operations in
2 countries
SA’s largest Black Economically Empowered resources company

18. * Interim results for 6 months ended 30 June 2010
Exxaro at a glance
One of the largest South African diversified resource companies
Top 40 companies on the JSE
Employ about people
Access to significant strategic assets and quality resources
50%+ BEE owned business
Healthy financial metrics
10% increase in revenue
43% increase in net operating profit
73% increase in attributable earnings
Decrease in cost in real terms
Strong cash flow and balance sheet
Decrease net debt by R857m
Net debt/equity 19%
R4,5bn undrawn Medupi facility
Extensive growth pipeline and stable platform for growth opportunities
* Interim results for 6 months ended 30 June 2010

19. Exxaro commodity ranking
Still a positive view on pigment & zircon over the long term

20. Exxaro’s mineral resource
SA diversified miners - LOM on the basis of resources, reserves & UBS estimates (based on 2010 production rates)
Exxaro: LOM on the basis of resources, reserves and UBS estimates
* Source: UBS investment research

21. Exxaro’s strategy Safety first, always
Exxaro will remain a diversified resources group
Coal
Remain a major reliable supplier to Eskom
Consider mega-mine opportunities to grow the coal business
Increase export allocation and de-bottleneck logistical chain
Develop downstream value-adding products such as char and market coke
Increase volumes to metals markets
Mineral Sands
Complete detailed studies on strategic fit
Advance bankable feasibility study on Fairbreeze
Ramp-up of pigment expansion
Base Metals
Progress divestment initiatives
Iron ore
Energy
Energy security
Clean and renewable alternatives

22. Doing business in South Africa
Contents
Our country
Today
Risks and challenges
Our industry
Our business
Conclusion
Addendum
Doing business in South Africa

23. Global steel production
200
400
600
800
1000
1200
1400
1600
1800
1920
1925
1930
1935
1940
1945
1950
1955
1960
1965
1970
1975
1980
1985
1990
1995
2000
2005
2010
Production (Mt)
The emerging era
Pre % pa
The golden era
% pa
Materials-intensive
gowth and
reconstruction in
Japan and Europe
The efficiency era
% pa
The China era
% pa
Oil shocks
Fall of
communism
Global steel production since 1920
The China era to be followed by the era of the “next two billion” – India, Brazil, Indonesia, Mexico, Nigeria, etc. 23 23

24. Copper and iron ore long term view
Ultra long-term real 2009$ copper price
2000
4000
6000
8000
10000
12000
14000
16000
18000
1908
1913
1918
1923
1928
1933
1938
1943
1948
1953
1958
1963
1968
1973
1978
1983
1988
1993
1998
2003
2008
2013
Prce (US$/t)
Ultra long-term real 2010$ fine iron ore prices 20 40 60 80
100
120
140
160
1900
1905
1910
1915
1920
1925
1930
1935
1940
1945
1950
1955
1960
1965
1970
1975
1980
1985
1990
1995
2000
2005
2010
2015
Price (Real 2010 US$/t)
US Price (cif)
Aus-Japan Price (fob)
Materials intensive
infrastructure and
(re)construction
investment
Source: Barclays Capital 24

25. Conclusion
Debate on political issues should not be confused with government policy
Risks around the mining industry have increased
Super tax policies the norm of the future?
Environmental pressures around mining industry will increase further
Long term growth driven by China and still very healthy
India to play an important future role
China is becoming a major investor in Africa including South Africa, securing access to future minerals
Good quality resources and assets the key for companies to survive these realities
Great investment opportunities available in South Africa
Very strong long term growth opportunities still available in South Africa’s mining industry

26. THANK YOU

27. Doing business in South Africa
Contents
Our country
Today
Risks and challenges
Our industry
Our business
Conclusion
Addendum
Addendum
Doing business in South Africa

28. Why coal? Healthy fundamentals of coal industry
Good position in industry with quality assets
Diversifying and balancing the Exxaro portfolio and mitigates exposure to R/$ exchange rate
High quality growth project pipeline
Access to the Waterberg reserve:
Volume: 75,7 billion tonnes in-situ inferred resources
> 50% of remaining SA coal reserves
Stratigraphic thickness: 115m consisting of 11 coal bearing zones
Mineable coal seams much thicker than Witbank Mpumalanga coalfields
Develop opportunities:
Grootegeluk (including reductants and market coke)
Medupi
Thabametsi
Mafutha
Geographically well positioned for export to Europe, USA and Far East 28
“The Waterberg is the new jewel in South Africa's minerals crown” Sipho Nkosi 28

29. Exxaro’s development plan for the Waterberg
Phase 1: Grootegeluk Mine
Completed GG6 plant in ktpa to other markets
Brownfields expansion of Grootegeluk coal mine near Lephalale with Medupi power station (4 800MW)
14,6Mtpa to Medupi power station
Time-frame: 2009 to 2015
Phase 2: Thabametsi Mine
Greenfields development - new open pit coal mine and beneficiation complex and a new coal-fired (clean technology) power station
(5 000MW)
16Mtpa to power station (PF)
2,5Mtpa to other markets
Time-frame: 2014 to 2017
Phase 3: Exports / Synfuels
Greenfields coal mine
10Mtpa for exports
Time-frame: 2015 to 2018
Mafutha JV with Sasol
Time-frame: 2013 to 2018
Other downstream opportunities:
Char plant
Phase 1 being commissioned
Phase 2 in planning
Market coke
Feasibility study in progress
Electricity generation
Including co-generation 29 29

30. Why energy?
Kusile expected to be the last coal fuelled power station built by Eskom in South Africa
Waterberg replacing Mpumalanga coalfields as primary source of new coal supply
Integrated Resource Plan for electricity due later in the year is expected to include renewable energy and participation of independent power producers in the energy mix
Renewable Energy Feed-In Tariff guidelines was approved by NERSA in 2009
Business collaborates with Eskom to ensure electricity supply/demand balance
Exxaro’s strategy defines the intent also to get involved in renewable energy and reduce our carbon footprint
Wind
Solar
Co-generation
Gas
Base Load
Why?
Lower carbon footprint
Sufficient resources
Refit R1,25/kWh
Readily available resource in parts of SA
Refit R2,10/kWh
Use of readily available waste gas/heat
Can utilise over the fence distribution option
Lower carbon footprint than coal
Utilises non-mineable coal beds
Contributes to satisfy demand
Advanced technology
Economically attractive
Exxaro owns significant coal reserves
What?
50 MW Wind farm at Brand-se-Baai
40 MW Wind Farm at Tsitsikamma
200MW concentrating solar power plant at Lephalale
15 MW Namakwa Sands cogeneration project in
A number of other projects, totaling more than 300 MW
50 MW coal bed methane gas field and power station in Botswana
1800 MW Base Load IPP coal fired power station at Lephalale 30 30

31. Significant increase forecast - except in USA
Why Mineral Sands?
Intensity of use plotted for 1980, 1990, 2000, 2007*, 2015 and 2025**
4.5
4.0
3.5
3.0
2.5
Pigment demand per capita - kg
2.0
USA
Rest of N America
1.5
Western Europe
1.0
Asia Pacific ex China
China
0.5
Rest of World
0.0 -
10,000
20,000
30,000
40,000
50,000
60,000
* 1980, 1990, 2999, Solid line
** 2015 and Dotted line
GDP per capita - real 2000 USD 31
Significant increase forecast - except in USA 31