NATURAL CAPITAL: MINERAL RESOURCES AND MINERAL RESERVES STATEMENT
ABRIDGED MINERAL RESOURCES AND MINERAL RESERVES STATEMENT

Introduction
The purpose of this report is to document the mineral resources and mineral reserves of Merafe Resources (Merafe) in accordance with the requirements of the South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves, 2009 (SAMREC). 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% participation interest in the mineral resources and mineral reserves of the Venture. The estimates in this document are as at 31 December 2015. To arrive at a mineral resources and mineral reserves estimate for 31 December 2015, the budgeted production for July 2015 to December 2015 has been subtracted from the total estimates. The mineral resource and mineral reserve information in the tables on the following pages 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, Boshoek, Horizon and Wonderkop 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. Horizon mine lies just west of the Pilanesberg Complex. The LG6 chromitite layer has been mined at Horizon mine through underground operations. Horizon has been put on care and maintenance. In addition to being mining operations, Wonderkop mine and Townlands Extension 9 are exploration projects and exploration activities have been performed here to fulfil the requirements of the various Prospecting Works Programmes. The eastern mining complex of Glencore 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, Glencore has applied for and has been granted chromitite Prospecting Rights on the farms Richmond and St George. 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.

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. The reporting date for the mineral resources and mineral reserves is 31 December 2015.

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.


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 31.12.15 31.12.14 31.12.15 31.12.14 31.12.15 31.12.14 31.12.15 31.12.14 Competent
person
Operating mines                                
Waterval mine 20.5% UG (Mt) 16.331   16.487 0.98   0.98 17.31   17.47 0.6   0.6 DR/MM
      Cr2O3(%) 41.3   41.3 42.6   42.6 41.4   41.4 43   43  
Marikana West 20.5% UG (Mt) 2.909   3.189 1.60   1.60 4.50   4.79 –   – DR/MM
(Waterval mine ext)     Cr2O3(%) 42.41   42.39 42.6   42.6 42.5   42.5 –   –  
Kroondal mine 20.5% UG/OC (Mt) 7.750   8.827 2.16   2.16 9.91   10.98 –   – DR/MM
      Cr2O3(%) 42.75   42.79 41.5   41.5 42.5   42.5 –   –  
Kroondal Gemini 20.5% UG/OC (Mt) 10.799   11.766 4.98   4.99 15.78   16.75 –   – DR/MM
(Kroondal mine ext)     Cr2O3(%) 42.47   42.44 41.6   41.6 42.2   42.2 –   –  
Marikana East 20.5% UG (Mt) 4.178   4.183 0.75   0.75 4.92   4.93 –   – DR/MM
(Kroondal mine ext)     Cr2O3(%) 42.25   42.23 41.8   41.7 42.2   42.1 –   –  
Horizon mine 20.5% UG/OC (Mt) 4.248   4.248 8.04   8.04 12.28   12.28 2.4   2.4 DR/MM
      Cr2O3(%) 44.53   44.53 43.8   43.8 44.1   44.1 44   44  
Boshoek mine 20.5% OC/UG (Mt) –   – 17.09   17.09 17.09   17.09 –   – DR/MM
      Cr2O3(%) –   – 40.5   40.5 40.5   40.5 –   –  
Thorncliffe mine 20.5% UG/OC (Mt) 38.906   41.627 13.75   9.52 52.65   51.14 47.3   34.1 DR/SV
      Cr2O3(%) 40.61   40.59 41.0   41.0 40.7   40.7 38   40  
Helena mine 20.5% UG/OC (Mt) 23.786   22.987 11.17   6.93 34.96   29.92 133.5   85.8 DR/SV
      Cr2O3(%) 39.75   39.96 38.2   38.1 39.2   39.5 38   39  
Projects                                
Wonderkop 20.5% UG (Mt) –   – 7.05   7.05 7.05   7.05 –   – DR/MM
      Cr2O3(%) –   – 40.6   40.6 40.6   40.6 –   –  
Townlands Extension 9 20.5% UG (Mt) –   – 13.85   13.37 13.85   13.37 –   – DR/MM
      Cr2O3(%) –   – 41.4   41.3 41.4   41.3 –   –  
De Grooteboom 20.5% UG/OC (Mt) 0.812   0.817 0.65   0.64 1.46   1.46 –   – DR/SV
      Cr2O3(%) 40.28   40.28 40.3   40.3 40.3   40.3 –   –  
Klipfontein/Waterval 20.5% UG (Mt) 12.433   11.387 15.79   16.82 28.23   28.21 116.0   115.5 DR/MM
      Cr2O3(%) 42.11   42.12 42.0   42.0 42.0   42.0 42   42  
Total chrome     (Mt) 122   126 98   90 220   215 300   238  
      Cr2O3(%) 41.2   41.3 41.1   41.2 41.2   41.2 40   41  

Notes:
Tonnages are quoted as million metric dry tonnes.
Grades are quoted as %Cr2O3.
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 PSV is currently mining, are discrete solid chromitite layers. Changes in the year-on-year mineral resource tonnage and grade estimates are mainly due to mining depletion and changes due to additional geological information gained through exploration.
There are no foreseen material risk factors that could affect the validity of the current mineral resource.

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.
See Financial capital for commentary on the sale of Horizon mine. The reserves and resources of Horizon mine will be stated until transfer in terms of the sale has taken place.
Chrome mineral reserve statement

        Proved mineral
reserves		 Probable mineral
reserves		 Total mineral
reserves		  
Name of operation Attributable
portion		 Mining
method		 Commodity 31.12.15   31.12.14 31.12.15   31.12.14 31.12.15   31.12.14 Competent
person
Operating mines      
 
 
  
 
 
  
 
 
    
Waterval mine 20.5% UG (Mt) 10.534   10.737 0.91   0.91 11.45   11.65 DR/MM
      Cr2O3(%) 30.94   30.93 26.0   26.0 30.5   30.5  
Marikana West 20.5% UG (Mt) 0.584   0.777 –   – 0.58   0.78 DR/MM
      Cr2O3(%) 28.92   28.87 –   – 28.9   28.9  
Kroondal mine 20.5% UG/OC (Mt) 1.895   2.548 1.94   1.90 3.83   4.45 DR/MM
      Cr2O3(%) 28.44   28.87 28.1   28.1 28.3   28.6  
Kroondal Gemini 20.5% UG/OC (Mt) 6.942   7.774 4.68   4.70 11.63   12.47 DR/MM
      Cr2O3(%) 31.05   31.0 28.3   28.3 29.9   29.9  
Marikana East
(Kroondal Extension) 		20.5% UG (Mt) 0.306   0.005 0.20   – 0.51   0.01 DR/MM
      Cr2O3(%) 29.16   28.89 28.1   – 28.7   28.9  
Horizon 20.5% UG (Mt) 2.102   2.102 –   – 2.10   2.10 DR/MM
      Cr2O3(%) 23.91   23.91 –   – 23.9   23.9  
Boshoek 20.5% OC/UG (Mt) –   – 0.58   0.58 0.58   0.58 DR/MM
      Cr2O3(%) –   – 26.1   26.1 26.1   26.1  
Thorncliffe mine 20.5% UG/OC (Mt) 22.413   24.445 7.80   5.94 30.21   30.39 DR/SV
      Cr2O3(%) 36.94   36.94 37.9   35.5 37.2   36.7  
Helena mine 20.5% UG/OC (Mt) 3.640   3.823 0.18   – 3.82   3.82 DR/SV
      Cr2O3(%) 34.73   36.78 30.6   – 34.5   36.8  
Klipfontein/Waterval 20.5% UG (Mt) 0.232   – 0.29   – 0.53   – DR/MM
      Cr2O3(%) 25.94   – 27.3   – 26.7   –  
Total chrome     (Mt) 49   52 17   14 65   66  
      Cr2O3(%) 33.5   33.8 32.6   31.0 33.3   33.2  

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. Changes in the year-on-year mineral reserves tonnage and grade estimates are mainly due to mining depletion and changes due to additional geological information gained through exploration. No significant year-on-year changes in the ore reserve tonnages were recorded.
There are no foreseen material risk factors that could affect the validity of the current mineral reserves of the Venture. All of the Venture’s operating mines are operating under valid mining right licences.

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 30 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

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.