Abridged Mineral Resources and Mineral Reserves Statement

Introduction

The purpose of this report is to document the Mineral Resources and Mineral Reserves of the Merafe Group (Merafe) in accordance with the requirements of the South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves, 2016 (SAMREC Code). All Merafe's operations are part of a pooling and sharing venture with Glencore Operations South Africa Proprietary Limited (the Glencore-Merafe Chrome Venture (the Venture)). Merafe has a 20.5% attributable beneficial interest in the Mineral Resources and Mineral Reserves of the Venture. The estimates in this document are as at 31 December 2017. To arrive at a Mineral Resources and Mineral Reserves estimate for 31 December 2017, the budgeted production for July 2017 to December 2017 has been subtracted from the total estimates. The Mineral Resource and Mineral Reserve information in the tables below is based on information compiled by a Competent Person (as defined by the SAMREC Code).

Type of mining and mining activities

The Venture has chrome mining operations along the Western and Eastern limbs of the Bushveld Complex. The operations along the Western Limb of the Bushveld Complex comprise the Waterval, Kroondal and Boshoek mines. The LG6 Package at both Waterval and Kroondal mines is mined underground using trackless mining methods on a bord-and-pillar layout. Boshoek Mine is 20km northwest of Rustenburg. The MG1, LG5 and LG6 chromitite layers are the mineable open pit layers in the Boshoek area. Boshoek Mine has been put on care and maintenance. The Townlands Extension 9 Prospecting Right area is an exploration project and exploration activities have been put on hold with the Venture applying for a Retention Permit. The eastern mining complex of the Venture consists of Thorncliffe, Magareng and Helena mines which are situated along the southern portion of the Eastern Limb of the Bushveld Complex. Adjacent to these farms, the Venture has applied for a renewal of the Prospecting Right on the farms Richmond and St George. In addition an application has been submitted to incorporate Richmond and St George into the eastern mines Mining Right. The MG1 Chromitite Layer is being mined at the eastern mining complex using underground trackless mining methods on a bord-and-pillar mining layout.

Comparison of Mineral Resource and Mineral Reserve estimates with previous year's estimates

The annual Mineral Resource and Mineral Reserve estimates are compared with the previous year's statement and reconciled each year after the estimates have been finalised. Changes in the
year-on-year tonnage and grade estimates are mainly due to mining depletion and changes in the Mineral Resource and Mineral Reserve tonnages and grades due to additional geological information. The biggest movement in the year on year Mineral Resource estimate is the re-statement of the Helena Mineral Resources and the newly stated Mineral Resources on the St George and Richmond properties.

Material risk factors

There are no foreseen material risk factors that could affect the validity of the current Mineral Resource and Mineral Reserve statement. All the legislative requirements have been met with respect to the rights to mining and prospecting for which the Mineral Resources and Mineral Reserves have been reported. All the operating mines are mining under new order, executed, Mining Rights. The Prospecting Rights of all the prospecting areas have been converted to new order Prospecting Rights.

For the complete Mineral Resources and Mineral Reserves Statement including definitions of the categorisation of mineral resources and reserves as per the SAMREC Code 2009, descriptions and exploration activities, geological settings of the reserves (including maps and diagrams), legal entitlement, methods and assumptions, material risk factors and a summary of environmental funding and management, see our online integrated annual report for 2017.

See Directors report for the statement on mining rights and mining operations.


Chrome Mineral Resources statement
        Measured Mineral Resources Indicated Mineral Resources Measured and Indicated Resources Inferred Mineral Resources  
Name of operation Attributable portion Mining method Commodity 31.12.17 31.12.16 31.12.17 31.12.16 31.12.17 31.12.16 31.12.17 31.12.16 Competent Person
Western Chrome Mines - LG6 Chromitite Package and MG1 Chromitite Layer
Waterval mine 20.5% UG Ore (Mt) 16.044 16.199 0.98 0.98 17.03 17.18 0.6 0.6 DR/MM
Cr2O3(%) 41.30 41.30 42.6 42.6 41.4 41.4 43 43
Marikana West 20.5% UG Ore (Mt) 2.877 2.807 1.60 1.60 4.43 4.41 DR/MM
Cr2O3(%) 42.44 42.46 42.6 42.6 42.5 42.5
Kroondal 20.5% UG/OC Ore (Mt) 8.803 8.521 1.57 2.15 10.37 10.67 DR/MM
Cr2O3(%) 42.70 42.84 41.6 41.6 42.5 42.6
Kroondal Gemini 20.5% UG/OC Ore (Mt) 10.649 10.566 4.42 5.03 15.07 15.59 DR/MM
Cr2O3(%) 42.59 42.58 41.6 41.6 42.3 42.3
Marikana East 20.5% UG Ore (Mt) 4.196 4.196 0.78 0.78 4.98 4.98 DR/MM
Cr2O3(%) 42.25 42.25 41.8 41.8 42.2 42.2
Klipfontein/Waterval 20.5% UG Ore (Mt) 11.729 11.820 16.98 16.95 28.71 28.77 115.0 114.9 DR/MM
Cr2O3(%) 42.12 42.12 42.0 42.0 42.0 42.0 42 42
Boshoek 20.5% OC/UG Ore (Mt) 17.09 17.09 17.09 17.09 DR/MM
Cr2O3(%) 40.5 40.5 40.5 40.5
Townlands Extension 9 20.5% UG Ore (Mt) 12.94 12.94 12.94 12.94 DR/MM
Cr2O3(%) 41.4 41.4 41.4 41.4
Total chrome Ore (Mt) 54.248 54.108 56.38 57.54 110.63 111.65 115.6 115.5
Cr2O3(%) 42.09 42.11 41.4 41.4 41.7 41.7 42 42
Kroondal Tailings Dam 20.54% OC Tailings (km3) 461.2 MM
Cr2O3(%) 17.2
Bushveld Complex - Eastern Limb
Thorncliffe mine 20.5% UG/OC Ore (Mt) 36.406 36.104 15.27 13.05 51.67 49.16 0.3 5.6 DR/SV
Cr2O3(%) 40.61 40.63 41.3 41.3 40.8 40.8 41 41
Helena mine 20.5% UG/OC Ore (Mt) 23.309 23.621 14.53 11.42 37.84 35.04 9.1 49.0 DR/SV
Cr2O3(%) 39.84 39.88 39.0 39.0 39.5 39.6 39 39
De Grooteboom 20.5% UG/OC Ore (Mt) 1.036 1.039 0.50 0.51 1.54 1.54 SV/DR
Cr2O3(%) 40.23 40.23 40.3 40.3 40.3 40.3
Richmond 20.5% UG Ore (Mt) 0.613 12.28 12.89 13.9 SV/DR
Cr2O3(%) 41.33 41.1 41.1 41
St George 20.5% UG Ore (Mt) 3.20 3.20 7.2 SV/DR
Cr2O3(%) 39.4 39.4 40
Total chrome Ore (Mt) 115 118 83 83 197 201 297 297
Cr2O3(%) 41.2 41.1 41.0 40.9 41.1 41.0 40 40
Eastern Chrome Mines - MG2 Chromitite Layer
Thorncliffe mine 20.5% UG/OC Ore (Mt) 41.8 41.8 DR/SV
Cr2O3(%) 38 38
Helena 20.5% UG/OC Ore (Mt) 85.4 85.4 DR/SV
Cr2O3(%) 38 38
Total chrome Ore (Mt) 127.2 127.2
Cr2O3(%) 38 38
Total MG1 and MG2 20.5% UG/OC Ore (Mt) 61.364 60.764 45.78 24.98 107.14 85.75 157.7 181.7
Cr2O3(%) 40.32 40.33 40.4 40.2 40.3 40.3 38 38

Notes:

Tonnages are quoted as million metric dry tonnes. The tailings are quoted as kilo cubic meters.
Grades are quoted as %Cr2;O3.
The measured and indicated Mineral Resources are inclusive of those Mineral Resources modified to produce Mineral Reserves.
No cut-off grades are applied to the chromitite layers currently being mined because of the exceptional regional grade consistency and continuity.
The Mineral Resources are estimated as chromitite tonnages and grades to reflect the grades of the various individual chromitite layers. Both the LG6 and MG1 chromitite layers which the Venture is currently mining, are discrete solid chromit
ite layers.

Competent Persons:

PJG - Pieter-Jan Gräbe, Glencore Operations SA (SACNASP). Overall responsibility for Mineral Resources.
SV - Solly Vaid, Glencore Operations, Eastern Chrome Mines (PLATO). Responsible for Mineral Resources.
MM - Mogomotsi Maputle, Glencore Operations, Western Chrome Mines (SACNASP). Responsible for Mineral Resources.
DR - Dean Richards, Obsidian Consulting Services (SACNASP). Responsible for geostatistical analysis of data, Mineral resource classification and construction of tonnage and grade block models and reporting of tonnage and grades from block models.


For Merafe ownership of specific mines contributed to the Venture see the Directors' report of this report.


Chrome Mineral Reserve statement
        Proved Mineral Reserves Probable Mineral Reserves Total Mineral Reserves  
Name of operation Participation interest Mining method Commodity 31.12.17 31.12.16 31.12.17 31.12.16 31.12.17 31.12.16 Competent Person
Bushveld Complex – Western Limb
Waterval mine 20.5% UG Ore (Mt) 8.548 8.727 0.89 0.89 9.44 9.61 MM/DR
Cr2O3(%) 31.36 31.40 26.8 26.8 30.9 31.0
Marikana West 20.5% UG Ore (Mt) 0.150 0.110 0.15 0.11 MM/DR
Cr2O3(%) 29.88 28.93 29.9 28.9
Kroondal mine 20.5% UG/OC Ore (Mt) 2.199 2.142 1.36 1.92 3.56 4.07 MM/DR
Cr2O3(%) 29.38 29.27 28.8 28.5 29.2 28.9
Kroondal Gemini 20.5% UG/OC Ore (Mt) 6.036 6.178 4.05 4.72 10.08 10.89 MM/DR
Cr2O3(%) 31.57 31.420 28.9 28.5 30.5 30.2
Marikana East 20.5% UG Ore (Mt) 0.725 0.15 0.87 MM/DR
Cr2O3(%) 28.58 28.5 28.6
Klipfontein/Waterval 20.5% UG Ore (Mt) 0.820 0.34 1.16 MM/DR
Cr2O3(%) 28.65 28.7 28.7
Boshoek 20.5% OC/UG Ore (Mt) 0.58 0.58 0.58 0.58 MM/DR
Cr2O3(%) 26.1 26.1 26.1 26.1
Total LG6 and MG1 Ore (Mt) 18.477 17.157 7.37 8.11 25.84 25.26
Cr2O3(%) 31.00 31.13 28.4 28.1 30.4 30.2
Bushveld Complex – Eastern Limb                    
Thorncliffe mine 20.5% UG/OC Ore (Mt) 24.093 22.267 9.09 8.15 33.18 30.41 DR/SV
Cr2O3(%) 35.13 33.76 35.9 34.2 35.3 33.9
Helena mine 20.5% UG/OC Ore (Mt) 2.957 3.250 2.96 3.25 DR/SV
Cr2O3(%) 33.92 33.45 33.9 33.5
Total chrome Ore (Mt) 27.050 25.517 9.09 8.15 36.14 33.66
Cr2O3(%) 35.00 33.72 35.9 34.2 35.2 33.8

Notes:

Tonnages are quoted as million metric dry tonnes.
Grades are quoted as %Cr2O3.
No cut-off grades are applied to the chromitite layers currently being mined due to the exceptional regional grade consistency and continuity. A minimum mining cut of 1.8m is applied to the ore reserve tonnage to accommodate the mechanised mining equipment employed by the underground mining operations. External waste is included to make up the minimum cut where applicable.
The chromitite layers are mined mainly underground using trackless mechanised mining methods on a bord-and-pillar mine layout design.

Competent Persons:

PJG - Pieter-Jan Gräbe, Glencore Operations SA (SACNASP). Overall responsibility for Mineral Reserves.
SV - Solly Vaid, Glencore Operations, Eastern Chrome Mines (PLATO). Responsible for Mineral Reserves.
MM - Mogomotsi Maputle, Glencore Operations, Western Chrome Mines (SACNASP). Responsible for Mineral Reserves.
DR - Dean Richards, Obsidian Consulting Services (SACNASP). Responsible for geostatistical analysis of data, Mineral Resource classification and construction of tonnage and grade block models and reporting of tonnage and grades from block models
.

Statement by Competent Person

This summary has been reviewed and the relevant data extracted and compiled by Pieter-Jan Gräbe (PJG). PJG is the Lead Competent Person, registered with the South African Council for Natural Scientific Professions (SACNASP, Private Bag X450, Silverton, 0127), Reg. No. 400177/87 and holds a BSc Hons degree in Geology as well as a NHD in Metalliferous Mining. PJG is a geologist with 32 years' experience in Mineral exploration and mining geology, directly linked to the mining industry and currently a full time employee of Glencore Operations South Africa. PJG consents to the inclusion in this report of the matters based on this information in the form and context in which it appears.

Pieter-Jan Gräbe

Glencore Operations South Africa Proprietary Limited

PO Box 2131
Rustenburg
0300
RSA

Tel: (014) 590 2415
Fax: (014) 590 2498

See detailed Mineral Resources and Mineral Reserves Statement 2017.