Lonmin. Our operational head office is located in Johannesburg, South Africa and our corporate office is in London, United Kingdom.

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1 CDP Water 2015 Information Request Lonmin Module: Introduction Page: W0. Introduction W0.1 Introduction Please give a general description and introduction to your organization. Lonmin Plc is one of the largest primary producers of PGMs in the world. We are a fully integrated mine-to-market producer with capacity to mine, concentrate, smelt and refine PGMs. These metals are essential for many industrial applications, especially catalytic converters for internal combustion engine emissions. Our operations are based in the North West, Limpopo and Gauteng provinces of South Africa. Our mining division comprises 11 shafts located at Marikana on the Western Limb of South Africa s Bushveld complex. We own an additional mine in Limpopo Province. Alongside our mining operations, our process division comprises eight concentrators, a smelter and a base metals refinery and a precious metals refinery (PMR) situated in Gauteng Province. Our operational head office is located in Johannesburg, South Africa and our corporate office is in London, United Kingdom. We have a premium listing on the London Stock Exchange and a secondary listing on the Johannesburg Stock Exchange. For the financial year ending 30 September 2014, we employed 28,276 full-time employees and 10,016 contractors. Our Approach As a responsible producer of minerals and metals, with an employee complement of 38,292 including contractors, we are conscious of our role as a responsible corporate citizen, and strive for best practice in all areas of our business. Through the work being done by our skilled and committed employee teams, our business partners and our Board, as well as through responsible management of our resources, we believe that we can have a positive impact on those around us and leave a lasting and valuable legacy. Our Safety and Sustainable Development policy, our Lonmin Sustainable Development Standards and all of our supporting strategies and procedures consider our journey towards mine closure, both from an environmental perspective and in terms of leaving a lasting legacy for communities. W0.2

2 Reporting year Please state the start and end date of the year for which you are reporting data. Period for which data is reported Tue 01 Oct Tue 30 Sep 2014 W0.3 Reporting boundary Please indicate the category that describes the reporting boundary for companies, entities, or groups for which water-related impacts are reported. Companies, entities or groups over which financial control is exercised W0.4 Exclusions Are there any geographies, facilities or types of water inputs/outputs within this boundary which are not included in your disclosure? Yes W0.4a Exclusions Please report the exclusions in the following table

3 Exclusion Please explain why you have made the exclusion Exploration and prospecting Joint Ventures Activities related to future development. These are relatively small and erratic water users and are excluded from the scope. Where Lonmin does not have direct control and is therefore excluded Further Information Module: Current State Page: W1. Context W1.1 Please rate the importance (current and future) of water quality and water quantity to the success of your organization Water quality and quantity Direct use importance rating Indirect use importance rating Please explain Sufficient amounts of good quality freshwater available for use Sufficient amounts of recycled, brackish and/or produced water available for use Vital for operations Vital for operations Neutral Neutral Platinum mining, concentrating, smelting and refining is water intensive and dependent on a secure source of good quality water. It is therefore vital for operations. The upstream and downstream value chain is industrial/commercial related and less dependent on water availability and quality. The Lonmin Integrated Water Management System optimises water re-use and recycling through a closed loop system in the processing plants to reduce and minimise water withdrawals. Sufficient amounts of recycled water is therefore vital for operations to reduce withdrawals. The upstream and downstream value chain is industrial/commercial related and less dependent on water availability and quality. W1.2

4 For your total operations, please detail which of the following water aspects are regularly measured and monitored and provide an explanation as to why or why not Water aspect % of sites/facilities/operations Please explain Water withdrawals- total volumes Water withdrawalsvolume by sources Water discharges- total volumes Water discharges- volume by destination Water discharges- volume by treatment method Water discharge quality data- quality by standard effluent parameters Water consumption- total volume Facilities providing fullyfunctioning WASH services for all workers All water withdrawals for all the operations are measured and monitored for operational and regulatory reporting purposes All water withdrawals by sources are measured and monitored for operational and regulatory reporting purposes All the operations are monitored for discharges. Incidents of discharge are recorded and reported to the relevant regulatory authority. Some level indicators are used to measure volume and it is the intent to expand this to all discharge sites. During the reporting period 8 incidents of discharge occurred which was reported to the DWA. All discharge destinations are recorded according to the ISO Incident Management and Reporting Procedure. Some discharge volumes are measured using level indicators and the intent is to expand this to all the discharge sites. No treated water is discharged into the environment as it is management policy to retain all water on site for reuse and recycling. Bio monitoring and toxicological analysis assessments are done at several monitoring sites along the Sterkstroom, Maretlwane and Kareespruit sub-catchments to assess the impact on aquatic biological systems due to mining operations. The water quality of discharges are checked against compliance to effluent standards as stipulated in the General Authorisation issued by the DWA. None of the discharges affected protected or biodiversity sensitive water bodies Monitored for operational and regulatory reporting requirements Monitored for operational, sustainability, stakeholder and regulatory reporting requirements W1.2a Water withdrawals: for the reporting year, please provide total water withdrawal data by source, across your operations

5 Source Quantity (megaliters/year) How does total water withdrawals for this source compare to the last reporting year? Comment Fresh surface water Lower Withdrawal from the Buffelspoort allocation. Lower withdrawal due to reduced operational activity as a result of prolonged industrial action. Brackish surface water/seawater 0 Not applicable no withdrawal from this kind of source. Rainwater 0 Not applicable not measured as a source. Groundwater - renewable Lower Withdrawal from well fields / boreholes. Lower withdrawal due to reduced operational activity as a result of prolonged industrial action. Groundwater - nonrenewable 0 Not applicable no withdrawal from this kind of source. Produced/process water 0 Not applicable no water is created during any process. Municipal supply Lower Water supplied by Rand Water utility. Lower use due to reduced operational activity as a result of prolonged industrial action. Wastewater from another organization 0 Not applicable no withdrawal from this kind of source. Total Lower Lower use and withdrawal due to reduced operational activity as a result of prolonged industrial action. W1.2b Water discharges: for the reporting year, please provide total water discharge data by destination, across your operations

6 Destination Quantity (megaliters/year) How does total water discharged to this destination compare to the last reporting year? Comment Fresh surface water Higher Incidents of discharge are recorded and reported to the relevant regulatory authority. Level indicators are used to measure volume and discharge was into the environment and monitored fresh water streams. Higher discharge due to higher seasonal rainfall and reduced withdrawal due to reduced operations from prolonged industrial action. During the reporting period 8 incidents of discharge occurred which was reported to the DWA. Brackish surface water/seawater 0 Not applicable No discharge to this destination. Groundwater 0 Not applicable No discharge to this destination. Municipal treatment plant 0 Not applicable No discharge to this destination. Total Higher Incidents of discharge are recorded and reported to the relevant regulatory authority. Level indicators are used to measure volume and discharge was into the environment and monitored fresh water streams. Higher discharge due to higher seasonal rainfall and reduced withdrawal due to reduced operations from prolonged industrial action. During the reporting period 8 incidents of discharge occurred which was reported to the DWA. W1.2c Water consumption: for the reporting year, please provide total water consumption data, across your operations Consumption (megaliters/year) How does this consumption figure compare to the last reporting year? Comment Lower Lower use and withdrawal due to reduced operational activity as a result of prolonged industrial action.

7 W1.3 Do you request your suppliers to report on their water use, risks and/or management? Yes W1.3a Please provide the proportion of suppliers you request to report on their water use, risks and/or management and the proportion of your procurement spend this represents Proportion of suppliers % Total procurement spend % Rationale for this coverage Bulk water is an essential input to business operations. The bulk water supplier is Rand Water on which the operations are dependent for most of its water supply and therefore Rand Water is requested to report on water use, risk and management. Regular meetings are held at multiple levels. Monthly Engineering, Finance and Maintenance meetings are held to report on these disciplines. This information is used to secure supply, anticipate disruptions, cooperate on issues, do long term planning and manage risks. Lonmin and Rand Water also meet on the Rustenburg Water Crisis Forum. Rand Water is incentivised to report regularly through these forums as Lonmin is the major client in the area and cooperation between Rand Water and Lonmin is of mutual benefit to each other. W1.3b Please choose the option that best explains why you do not request your suppliers to report on their water use, risks and/or management

8 Primary reason Please explain W1.4 Has your organization experienced any detrimental impacts related to water in the reporting period? Yes W1.4a Please describe the detrimental impacts experienced by your organization related to water in the reporting year Country River basin Impact indicator Impact Description of impact Length of impact Overall financial impact Response strategy Description of response strategy South Africa Limpopo (WMA) Phys-Seasonal supply variability/inter annual variability Plant/production disruption leading to reduced output High seasonal rainfall 3 months Increased pumping costs, repairs and maintenance costs Develop flood emergency plans Infrastructure investment Infrastructure maintenance Updated policies, procedures and standards on storm water management and new infrastructure development according to best practice guidelines. W1.4b

9 Please choose the option below that best explains why you do not know if your organization experienced any detrimental impacts related to water in the reporting year and any plans you have to investigate this in the future Primary reason Future plans Further Information Module: Risk Assessment Page: W2. Procedures and Requirements W2.1 Does your organization undertake a water-related risk assessment? Water risks are assessed W2.2 Please select the options that best describe your procedures with regard to assessing water risks Risk assessment procedure Coverage Scale Please explain Comprehensive companywide risk assessment Direct operations and supply chain All facilities and some suppliers Lonmin assess water related risks through its structured, multi-disciplinary risk assessment process which covers all operations and some key suppliers, including Rand

10 Risk assessment procedure Coverage Scale Please explain Water utility as primary water supplier to Lonmin. W2.3 Please state how frequently you undertake water risk assessments, what geographical scale and how far into the future you consider risks for each assessment Frequency Geographic scale How far into the future are risks considered? Comment Annually River basin >6 years Sporadically not defined Business unit 1 to 3 years An annual assessment is conducted as part of the structured, multi-disciplinary risk assessment process and aligned to the water forecasting model that spans a rolling 10 year period. Other triggers that will launch a separate risk assessment include changes in strategy and tactics, changes in processes and as and when deemed necessary, as risks are perceived. W2.4 Have you evaluated how water risks could affect the success (viability, constraints) of your organization's growth strategy? Yes, evaluated over the next 10 years W2.4a

11 Please explain how your organization evaluated the effects of water risks on the success (viability, constraints) of your organization's growth strategy? The Lonmin risk assessment process highlights the top risks in the business as well as the probability and impact associated with each risk. Water supply and having access to enough, good quality water is the main risk to the overall growth strategy. The company's overall (growth) strategy is crafted, taking this information into consideration. There is a direct correlation between the identified water risks and the company's strategy. The overall strategy will inform the water strategy and vice versa. Should a water risk be perceived as highly probable and the impact severe, it will influence the company strategy to react accordingly. Water is a limiting factor and the company s growth outlooks are stable. W2.4b What is the main reason for not having evaluated how water risks could affect the success (viability, constraints) of your organization's growth strategy, and are there any plans in place to do so in the future? Main reason Current plans Timeframe until evaluation Comment W2.5 Please state the methods used to assess water risks Method Please explain how these methods are used in your risk assessment FAO/AQUASTAT Internal company knowledge UNEP Vital Water Graphics WRI water stress South Africa is a water stressed country from a resource availability point of view and this is exacerbated by various socio-economic, political and environmental challenges in water management. The methods were used in the company risk assessments to confirm the above, that the Lonmin operations are indeed in high to severe water stressed areas. The FAO/AQUASTAT method confirms that the Lonmin operations are situated within an agricultural environment and competing directly for water resources, making stakeholder risk assessments a priority. The UNEP and WRI methods confirm Internal Company Knowledge that the Lonmin operations are in high risk and extremely stressed water areas with scarce fresh water availability. These methods were selected for ease of use, relevance and

12 Method Please explain how these methods are used in your risk assessment definition WRI Aqueduct supporting the outcomes of the risk assessment process. The operational scope includes all the Lonmin operations. W2.6 Which of the following contextual issues are always factored into your organization's water risk assessments? Issues Choose option Please explain Current water availability and quality parameters at a local level Current water regulatory frameworks and tariffs at a local level Current stakeholder conflicts concerning water resources at a local level Current implications of water on your key commodities/raw materials Current status of ecosystems and habitats at a local level for some facilities/suppliers The structured, multi disciplinary risk assessment process spans the operations at a local level. Water risk assessments at the operations take local water availability and quality parameters into account and is based on internal company knowledge gleaned from experience and close cooperation with Rand Water and management of other sources. The structured, multi disciplinary risk assessment process spans the operations at a local level. Regulatory frameworks are well defined and mature through Water Use Licensing and are constantly reviewed. Water tariffs and cost of supply is contained in financial risk assessment and information for assessment is from internal company knowledge e.g. legal, environmental management and finance. The Lonmin operations are situated within agricultural, rural and semi urban areas and local stakeholder engagement on water and other issues are important. Water risk assessments include an analysis of the potential stakeholder impacts. FAO/Aquastat was used to assess and confirm this issue. Water is a key commodity, most of which is supplied by the Rand Water utility. This is a key issue factored into the risk assessment process and based on internal company knowledge to assess this risk, supported by the WRI and UNEP methods to confirm water stress. Lonmin has extensive water monitoring programmes in place in the catchments surrounding its mining and processing activities to monitor the impact on these systems. The results are compared to various standards and the outcomes factored into the structured risk assessment process, based on internal company knowledge Current river basin management for Lonmin is a key industrial player in the Limpopo catchment Management Area and feedback

13 Issues Choose option Please explain plans Current access to fully-functioning WASH services for all employees Estimates of future changes in water availability at a local level Estimates of future potential regulatory changes at a local level Estimates of future potential stakeholder conflicts at a local level Estimates of future implications of water on your key commodities/raw materials Estimates of future potential changes in the status of ecosystems and habitats at a local level Scenario analysis of availability of sufficient quantity and quality of water relevant for your operations at a local level some facilities/suppliers from the various water quality monitoring initiatives, ecosystem restoration projects and interactions with regulatory authorities and local government are factored into the water risk assessments, based on internal company knowledge and knowledge from the regulatory authorities and local government. Lonmin provides on-site WASH services as well as off-site e.g. its villages as per Water Use License agreements. The Greater Lonmin Community (GLC) is a key focus area for the business and initiatives include creating and maintaining bulk water supply infrastructure into the local municipality on which its workforce is dependent for basic services. This is factored into the organization's water risk assessments and information is based on internal company knowledge. The WRI Aqueduct, Water Risk Assessment method shows SA and the Limpopo Catchment as extremely highly stressed with more water users competing for limited supply. The water forecasting model takes this into account and this is factored into the water risk assessment. The Lonmin water efficiency target which requires a 15% reduction by 2017 is as a direct result of this estimate to match availability to demand. Regulatory changes are difficult to predict, but high awareness and participation in proposed regulatory changes e.g. white papers, etc., keeps the business informed and factors this risk into the assessment, based on the acquired internal company knowledge. Estimates are included in various contexts of upswing, downturn and base case situations. The FAO/AQUASTAT method confirms that the Lonmin operations are situated within an agricultural environment and competing directly for water resources, making stakeholder risk assessments a priority. Estimates on upper and lower limits for production are included and based on internal company knowledge. Bio monitoring and toxicological analysis assessments are done at several monitoring sites to assess the impact on aquatic biological systems due to mining operations. The water quality of discharges are checked against compliance to effluent standards as stipulated in the General Authorisation issued by the DWA. The outcomes and estimates are factored into the risk assessment and is based on internal company knowledge. The WRI Aqueduct, Water Risk Assessment method shows SA and the Limpopo Catchment as extremely highly stressed with more water users competing for limited supply. The likely future scenario is that this situation will continue and therefore Lonmin is focusing on increased water reuse and recycling in its operations. Through its Integrated Water Balance tool it can simulate scenarios and do risk assessments to balance water supply within its operations and reduce water withdrawals. Scenario analysis of regulatory Scenario analysis is integrated into the Life of Business Plan and includes modelling of various

14 Issues Choose option Please explain and/or tariff changes at a local level Scenario analysis of stakeholder conflicts concerning water resources at a local level Scenario analysis of implications of water on your key commodities/raw materials Scenario analysis of potential changes in the status of ecosystems and habitats at a local level Other parameters, based on internal company knowledge for regulatory and tariff change parameters. Lonmin is sensitive to its Greater Lonmin Community (GLC) and proactively manages its extended stakeholders around its operational areas. The FAO/Aquastat method confirms the stakeholder dynamics around vying for scarce resources and this is contained in the risk assessment as various scenarios based on internal company knowledge. Water is a key commodity and scenario analysis are done linked to operational capacity requirements, i.e. how much of the operations can be run at which levels of water supply. This is linked to strategic and tactical decision making in operational risk assessments and based on internal company knowledge. Lonmin puts high focus on ecosystem and habitat stability and for their operations to not negatively impact these. Scenarios on potential changes are linked to mitigation plans and are factored into the risk assessments, based on standards and internal company knowledge. W2.7 Which of the following stakeholders are always factored into your organization's water risk assessments? Stakeholder Choose option Please explain Customers Employees Investors Local communities Relevant, not yet included Customers are increasingly demanding the up and downstream value chain impact and resource footprints of final products. Lonmin has embarked on a total life cycle assessment of its product through the International Platinum Association and the outcomes and learning will be included in future risk assessments. Employees form part of the water risk assessment through relevant and continued communications on water discipline, seasonal cycles and other relevant inputs. Good environmental stewardship is important to investors and therefore factored into water risk assessment. Water management is a material focus area and is reported on in detail in the annual Sustainable Development Report as well as this CDP Water Disclosure report. Local communities are key stakeholders in the business and water issues are integrated into the local community engagements. It is therefore factored in to the water risk assessment.

15 Stakeholder Choose option Please explain NGOs Other water users at a local level Regulators River basin management authorities Statutory special interest groups at a local level Suppliers Water utilities/suppliers at a local level Other Not relevant, explanation provided NGOs are managed through existing stakeholder and public affairs forums, none of which has any current impact on water risk assessments. Should any NGO be linked to water risks, it will be included in the water risk assessment process. Lonmin is sensitive to other water users within the catchment management area, water agreements are in place where required and these are included in the water risk assessment. Water supply and management is highly regulated and regulators such as DWA, Local Government and the Municipality is factored in to the water risk assessment. Water supply and management is highly regulated and river basin management authorities such as the DWA, Catchment Management Agencies are factored in to the water risk assessment. Lonmin is represented at the Rustenburg Water Crisis Forum which meets monthly at the local municipality to discuss water issues and includes topics like water demand management, etc. This stakeholder and the outcomes of these meetings are factored into the water risk assessments. Rand Water and DWA(Buffelspoort allocation) are main suppliers on key commodities which happens to be water supply. These stakeholders are included in water risk assessments. Rand Water is a key supplier, supplying most of the water requirements for the operations. DWA is another supplier (Buffelspoort allocation) and these suppliers are factored in to the risk assessment process. Specialist water consultants and service providers are key stakeholders factored in to the water risk assessment. W2.8 Please choose the option that best explains why your organisation does not undertake a water-related risk assessment Primary reason Please explain Further Information Module: Implications

16 Page: W3. Water Risks W3.1 Is your organization exposed to water risks, either current and/or future, that could generate a substantive change in your business, operations, revenue or expenditure? Yes, direct operations and supply chain W3.2 Please provide details as to how your organization defines substantive change in your business, operations, revenue or expenditure from water risk A substantive change has the potential to divert a business from its existing strategy and business plan due to external factors which drives the re-assessment of the company s strategic direction and key focus areas. Physical water risks like security of water supply, climate change, drought and flooding has the potential to create substantive change and are indicators of change when it happens, the frequency of occurrence and intensity of events. The geographical concentration of the Lonmin operations makes it more prone to regional, physical risks. Legislative, shareholder, stakeholder and pricing indicators are non-geographic that has the potential to cause a substantive change in the business and frequency of occurrence, volatility, insecurity and intensity that goes with these will determine if substantive or not. The same applies for operational and supply chain risks. Substantive changes are reviewed annually during the annual structured, multi-disciplinary risk assessment process or as and when events occur. W3.2a Please provide the number of facilities* per river basin exposed to water risks that could generate a substantive change in your business, operations, revenue or expenditure and the proportion of total operations this represents

17 Country River basin Number of facilites Proportion of total operations exposed to risk within river basin (%) Comment South Africa South Africa Limpopo (WMA) Vaal (WMA) Facility 1 - Aggregation of Mining and Concentrating facilities. The lonmin, Marikana Operation comprising Western and Eastern Platinum Ltd, as well as the Limpopo operation are situated within this WMA. This is a water stressed area according to the WRI water stress definition and the UNEP Vital Water Graphics. Water supply to these operations are mainly from the Rand Water utility which draws on the Vaal WMA and indirectly from the Lesotho, Katze Dam project which constitutes an inter basin transfer. Facility 2 - Aggregating the Refinery and HQ facilities. The Lonmin Precious Metal Refinery (PMR) and HQ is situated in the Vaal WMA. This is a water stressed area according to the WRI water stress definition and the UNEP Vital Water Graphics. Water supply to these operations are from the Rand Water utility which draws on the Vaal WMA and indirectly from the Lesotho, Katze Dam project which constitutes an inter basin transfer. W3.2b Please provide the proportion of financial value that could be affected at river basin level associated with the facilities listed in W3.2a Country River basin Financial reporting metric Proportion of chosen metric that could be affected within the river basin Comment South Africa South Africa Limpopo (WMA) Vaal (WMA) % global production capacity % global production volume Facility 1 - Aggregation of Mining and Concentrating facilities. The Marikana and Limpopo operations represent Lonmin's total production capacity. Facility 2 - Aggregating the Refinery and HQ facilities. The Precious Metal Refinery processes all of Lonmin's production and represents Lonmin's total production volume capacity

18 W3.2c Please list the inherent water risks that could generate a substantive change in your business, operations, revenue or expenditure, the potential impact to your direct operations and the strategies to mitigate them Country River basin Risk driver Potential impact Description of impact Timeframe Likelihood Magnitude of potential financial impact Response strategy Costs of response strategy Details of strategy and costs South Africa Limpopo (WMA) Physical-Climate change Physical-Drought Physical-Flooding Physical-Inadequate infrastructure Physical-Increased water scarcity Physical- Pollution of water source Physical-Projected water scarcity Physical-Rationing of municipal water supply Physical-Seasonal supply variability/inter annual variability Regulatory-Higher water prices Regulatory-Increased difficulty in obtaining withdrawals/operations permit Regulatory-Mandatory water efficiency, conservation, recycling or process standards Plant/production disruption leading to reduced output Reduced water supply due to Physical, Regulatory and Reputational drivers causing Lonmin's water dependent processing plants to scale down production or stop functioning. Oversupply of water due to flooding causing disruption in production. 1-3 years Probable Mediumhigh Develop flood emergency plans Engagement with community Establish site-specific targets Infrastructure investment Infrastructure maintenance Increased capital expenditure R for a storm water control project during this reporting period. Developed an Integrated Water Management plan that caters for flooding and water scarcity scenarios and is aligned to the overall water conservation and demand strategy. The objective is to improve water management efficiency and create a closed loop system by

19 Country River basin Risk driver Potential impact Description of impact Timeframe Likelihood Magnitude of potential financial impact Response strategy Costs of response strategy Details of strategy and costs Regulatory-Statutory water withdrawal limits/changes to water allocation Reputational- Community opposition optimising water re-use and recycling, increased storage in lined, pollution control dams and creating capacity for natural and artificial recharge. W3.2d Please list the inherent water risks that could generate a substantive change in your business operations, revenue or expenditure, the potential impact to your supply chain and the strategies to mitigate them Country River basin Risk driver Potential impact Description of impact Timeframe Likelihood Magnitude of potential financial impact Response strategy Costs of response strategy Details of strategy and costs South Africa Limpopo (WMA) Physical- Increased water Supply chain The Lonmin operations 1-3 years Probable High Engagement with suppliers Approximately R28m spent Lonmin's integrated

20 Country River basin Risk driver Potential impact Description of impact Timeframe Likelihood Magnitude of potential financial impact Response strategy Costs of response strategy Details of strategy and costs scarcity Regulatory- Limited or no river basin/catchment management Regulatory- Statutory water withdrawal limits/changes to water allocation disruption are dependent on Rand Water for most of its water supply. This constitutes the biggest supply chain risk as a disruption of water supply will negatively impact production output. Infrastructure investment Increased capital expenditure Increased investment in new technology Supplier diversification during this reporting period and a total spend of approximately R90m over the next 5 years. Waste Water Management Plan and Water Conservation and Demand Strategy employs an Integrated Water Balance software tool to facilitate scenario planning, improve efficiencies, reduce cost and ultimately reduce the withdrawal of water, thereby reducing the dependency and risk associated with a single, big supplier through diversification of supply. W3.2e Please choose the option that best explains why you do not consider your organization to be exposed to water risks in your direct operations that could generate a substantive change in your business, operations, revenue or expenditure

21 Primary reason Please explain W3.2f Please choose the option that best explains why you do not consider your organization to be exposed to water risks in your supply chain that could generate a substantive change in your business, operations, revenue or expenditure Primary reason Please explain W3.2g Please choose the option that best explains why you do not know if your organization is exposed to water risks that could generate a substantive change in your business operations, revenue or expenditure and discuss any future plans you have to assess this Primary reason Future plans Further Information Page: W4. Water Opportunities W4.1

22 Does water present strategic, operational or market opportunities that substantively benefit/have the potential to benefit your organization? Yes W4.1a Please describe the opportunities water presents to your organization and your strategies to realize them Country or region Opportunity Strategy to realize opportunity Estimated timeframe Please explain South Africa South Africa South Africa Climate change adaptation Improved community relations Improved water efficiency The Lonmin Climate Change (CC) adaptation strategy recognises the likely impact of CC on water issues and therefore pro-active water management is a clear opportunity to counter the effects of CC. The strategy aims to build resilience in security of supply, combat the effects of severe weather incidence and improve water efficiencies to reduce the reliance on current sources. The strategy is being implemented through the Lonmin Integrated Waste Water Management Plan (IWWMP) and the Water Conservation and Water Demand Management Strategy (WC/WDMS), linked to the Integrated Water Balance (IWB) tool at a total cost of approximately R90m over the next 5 years. Lonmin has a strong strategy that recognises the Greater Lonmin Community (GLC) and has various initiatives linked to improving and building relationships and infrastructure within this community. Lonmin recognises that water scarcity is a great challenge to SA and the regions where it operate. The water management strategy therefore aims to keep improving water efficiency to make best use of its water and be good 4-6 years Current-up to 1 year 1-3 years Managing the impacts of Climate Change (CC) is a material focus area for Lonmin. The effects of CC will most likely manifest in water issues and management and being proactive in this area is a clear CC adaptation initiative. Resilience in the form of security of supply, catchment restoration and infrastructure. Water initiatives linked to the GLC includes sourcing groundwater for human consumption in conjunction with the local municipality. Building bulk water infrastructure that links into the local municipal supply. Creating permaculture food gardens at Lonmin's food centres. The Lonmin Integrated Waste Water Management Plan (IWWMP) and the Water Conservation and Water Demand Management Strategy (WC/WDMS), linked to the Integrated Water Balance (IWB) tool have as main

23 Country or region Opportunity Strategy to realize opportunity Estimated timeframe Please explain South Africa South Africa R&D Social licence to operate water and environmental stewards. Lonmin recognises that technological breakthroughs are required to make step changes in areas like water management. It also wishes to stay up to date with the latest technologies and innovation and therefore has links into external think tanks, industry experts and academia on the latest Research and Developments in the market as well as on the principles of cleaner production. Lonmin wants to be recognised as the good environmental steward and corporate citizen that it is and sees responsible water management as another opportunity to showcase this desire and achievement, thus assuring its social license to operate. 1-3 years 1-3 years objectives the reduction of water withdrawal and the improvement of water use efficiency. Lonmin engages with the water research institutions and is actively engaging with academic institutions on topics such as groundwater modelling, water footprints and optimisation projects. Lonmin covers physical water management through a strong operational strategy backed by the correct level of investment and resources. It ensures regulatory compliance by adhering to the various laws, water use license conditions and regular interaction with regulators and proactively manages its reputation through various interactions within the communities it operates. W4.1b Please choose the option that best explains why water does not present your organization with any opportunities that have the potential to provide substantive benefit Primary reason Please explain W4.1c

24 Please choose the option that best explains why you do not know if water presents your organization with any opportunities that have the potential to provide substantive benefit Primary reason Please explain Further Information Module: Accounting Page: W5. Facility Level Water Accounting (I) W5.1 Water withdrawals: for the reporting year, please complete the table below with water accounting data for all facilities included in your answer to W3.2a Facility reference number Country River basin Facility name Total water withdrawals (megaliters/year) at this facility How does the total water withdrawals at this facility compare to the last reporting year? Please explain the change if substantive Facility 1 Facility 2 South Africa South Africa Limpopo (WMA) Vaal (WMA) Marikana and Limpopo operations Precious Metal Refinery and HQ Lower Lower Lower withdrawal due to reduced operational activity as a result of prolonged industrial action. Lower withdrawal due to reduced operational activity as a result of prolonged industrial action.

25 Further Information Page: W5. Facility Level Water Accounting (II) W5.1a Water withdrawals: for the reporting year, please provide withdrawal data, in megaliters per year, for the water sources used for all facilities reported in W5.1 Facility reference number Fresh surface water Brackish surface water/seawater Rainwater Groundwater (renewable) Groundwater (nonrenewable) Produced/process water Municipal water Wastewater from another organization Comment Facility Facility Municipal Water supply from Rand Water utility Groundwater (renewable) from the Limpopo operation well field Fresh surface water from the Buffelspoort allocation Municipal Water supply from Rand Water utility W5.2 Water discharge: for the reporting year, please complete the table below with water accounting data for all facilities included in your answer to W3.2a

26 Facility reference number Total water discharged (megaliters/year) at this facility How does the total water discharged at this facility compare to the last reporting year? Please explain the change if substantive Facility Higher Facility 2 0 About the same Higher discharge due to higher seasonal rainfall and reduced withdrawal due to reduced operations from prolonged industrial action. During the reporting period 7 incidents of discharge occurred which was reported to the DWA. Incidents of discharge are recorded and reported to the relevant regulatory authority. Some level indicators are used to measure volume and it is the intent to expand this to all discharge sites. During the reporting period 1 incident of discharge occurred which was reported to the DWA. W5.2a Water discharge: for the reporting year, please provide water discharge data, in megaliters per year, by destination for all facilities reported in W5.2 Facility reference number Fresh surface water Municipal Treatment Plant Seawater Groundwater Comment Facility Facility Incidents of discharge are recorded and reported to the relevant regulatory authority. Some level indicators are used to measure volume and it is the intent to expand this to all discharge sites. During the reporting period 7 incidents of discharge occurred which was reported to the DWA. Incidents of discharge are recorded and reported to the relevant regulatory authority. Some level indicators are used to measure volume and it is the intent to expand this to all discharge sites. During the reporting period 1 incident of discharge occurred which was reported to the DWA. W5.3

27 Water consumption: for the reporting year, please provide water consumption data for all facilities reported in W3.2a Facility reference number Consumption (megaliters/year) How does this compare to the last reporting year? Please explain the change if substantive Facility Lower Facility Lower Lower consumption due to reduced operational activity as a result of prolonged industrial action. Lower consumption due to reduced operational activity as a result of prolonged industrial action. W5.4 For all facilities reported in W3.2a what proportion of their water accounting data has been externally verified? Water aspect % verification What standard and methodology was used? Water withdrawals- total volumes Water withdrawals- volume by sources Water discharges- total volumes Not verified Annual External Statutory Financial Audit performed by KPMG according to International Council of Mining and Metals (ICMM) Sustainable Development Framework, Assurance Procedure, Subject Matter 4 and in accordance with the Global Reporting Initiative (GRI) G4 Guideline. Annual External Statutory Financial Audit performed by KPMG according to International Council of Mining and Metals (ICMM) Sustainable Development Framework, Assurance Procedure, Subject Matter 4 and in accordance with the Global Reporting Initiative (GRI) G4 Guideline. Incidents of discharge are recorded and reported to the relevant regulatory authority. During the reporting period 8 incidents of discharge occurred which was reported to the DWA. Incidents of discharge are recorded and reported to the relevant regulatory authority. During the reporting period 8 incidents of discharge occurred which was reported to the DWA. Incidents of discharge are recorded and reported to the relevant regulatory authority. During the reporting period 8 incidents of discharge occurred which was reported to the DWA. Water discharges- volume by destination Not verified Water discharges- volume by treatment method Not verified Water discharge quality data- Not verified Incidents of discharge are recorded and reported to the relevant regulatory authority. During the reporting

28 Water aspect % verification What standard and methodology was used? quality by standard effluent parameters Water consumption- total volume period 8 incidents of discharge occurred which was reported to the DWA. Annual External Statutory Financial Audit performed by KPMG according to International Council of Mining and Metals (ICMM) Sustainable Development Framework, Assurance Procedure, Subject Matter 4 and in accordance with the Global Reporting Initiative (GRI) G4 Guideline. Further Information Module: Response Page: W6. Governance and Strategy W6.1 Who has the highest level of direct responsibility for water within your organization and how frequently are they briefed? Highest level of direct responsibility for water issues Frequency of briefings on water issues Comment Individual/Sub-set of the Board or other committee appointed by the Board Scheduledquarterly Water Management is recognised as a material issue and Lonmin proactively manages this through its Environmental Committee appointed by the Board. Monthly reports are forwarded to the Board and quarterly meetings are held to discuss progress against the water strategy and its various focus areas. W6.2 Is water management integrated into your business strategy?

29 Yes W6.2a Please choose the option(s) below that best explain how water has positively influenced your business strategy Influence of water on business strategy Please explain Establishment of sustainability goals Establishment of a clear water strategy Exploration of environmental impact Introduction of water management KPIs Investment in staff/training Publicly demonstrated our commitment to water Greater supplier engagement Tighter operational performance standards Water management incentives established for Water management is recognised as a key element and enabler of the Lonmin Sustainability Strategy and is reported on in the annual Sustainable Development Report. Water being a key input into the daily operations of the business demands a clear strategy to manage this resource in a responsible way as good stewardship demands. Bio monitoring and toxicological analysis assessments are done at several monitoring sites along the Sterkstroom, Maretlwane and Kareespruit sub-catchments to assess the impact on aquatic biological systems due to mining operations. The water quality of discharges are checked against compliance to effluent standards as stipulated in the General Authorisation issued by the DWA. Various KPIs have been introduced to manage and monitor progress against targets. These KPIs are reported on in the annual Sustainable Development report and are subject to internal and external audits, ensuring accountability and good governance. Audited water KPI reporting in the annual Sustainability Report. As part of ongoing training initiatives within the business to increase the awareness of water use, safety and responsible management. Lonmin undertakes water awareness programmes in the greater Lonmin communities to educate members on the management and safe use of water. Lonmin closely cooperates with the local municipality to identify areas for underground water abstraction for human consumption. Water has always been a critical input into the operations and with more focus on water as a scarce resource and the importance of being good environmental stewards, the engagement with Rand Water as a key supplier has increased to multiple levels, ranging from Engineering to Finance to Maintenance. The Lonmin Integrated Waste Water Management Plan and the Water Conservation and Water Demand Strategy supported by the Integrated Water Balance tool has resulted in much improved and tighter operational performance standards. Improved quantitative water management enabled target setting linked to incentive initiatives for senior management. Quantitative water management targets are included in senior manager Key Performance Appraisals and linked to incentives.

30 Influence of water on business strategy Please explain senior management Accelerating vital research and development Lonmin recognises that technological breakthroughs are required to make step changes in areas like water management. It also wishes to stay up to date with the latest technologies and innovation and therefore has links into external think tanks, industry experts and academia on the latest Research and Developments in the market. Lonmin engages with the Water Research Council and is funding research at academic institutions like Wits and the University of the North-West on topics such as groundwater modelling. W6.2b Please choose the option(s) below that best explains how water has negatively influenced your business strategy Influence of water on business strategy Please explain Increased capital expenditure Capital diverted from other business initiatives to increase capex spending on water management projects in order to secure future water supply. W6.2c Please choose the option that best explains why your organization does not integrate water management into its business strategy and discuss any future plans to do so Primary reason Please explain

31 W6.3 Does your organization have a water policy that sets out clear goals and guidelines for action? Yes W6.3a Please select the content that best describes your water policy (tick all that apply) Content Please explain why this content is included Company-wide Performance standards for direct operations Incorporated within group environmental, sustainability or EHS policy Acknowledges the human right to water, sanitation and hygiene Other: Participation in catchment management forums and government and other bodies to ensure sustainable water use and protection of resources The Lonmin Water and Sustainable Development policies are linked to show the inter dependence of these disciplines and is available on the company intranet. Policies will be made public in due course. It contains performance and management standards linked to reporting to ensure accountability and that targets are met. Performance standards only for selected suppliers currently. The Policy determines participation in forums outside of the business as it recognises that water is at the very least a regional issue and needs to be managed collectively. It also recognises, respects and values the fundamental human rights, cultural heritage and indigenous traditions of our employees, communities and other stakeholders where we operate in recognition of the Greater Lonmin Community (GLC). Employee and GLC education in water discipline but not customers, could consider customers education through the International Platinum Association, Platinum Total Life Cycle study. W6.4 How does your organization's water-related capital expenditure (CAPEX) and operating expenditure (OPEX) during the most recent reporting period compare to the previous reporting period?