Appendix 5a. Mining Work Programme (R.11)

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1 Appendix 5a. Mining Wrk Prgramme (R.11) (a)full Particulars f the Applicant: Richtrau 253 (Pty) Ltd Registratin Number f cmpany: 2008/028523/07 Relevant pstal address: PO Bx Centurin 0163 Cntact and crrespndence address fr this applicatin: Surname f cntact persn: Frename(s) f cntact persn: Branch/Divisin: Mkgkng Pius Ssthenes Head Office Pstal address: PO Bx Centurin 0163 Suburb: Centurin City: Pretria Prvince: Gauteng Cuntry: Suth Africa Pstal Cde: 0163 Telephne n: Fax n: Cell phne n: address: pius@liketh.c.za Anitam@liketh.c.za piusmkg@gmail.cm Relevant physical address: Building name: Centurin Gate Building number: Blck 4 Street number: Street name 1: Street name 2 (crner f): Jhn Vrster & Akkerbm street Type e.g. Street, Avenue, Clse: Suburb: Twn/City: Centurin District: Prvince: Gauteng Cuntry: Suth Africa

2 (b) Plan cntemplated in regulatin 2(2), shwing the land and mining area t which the applicatin relates A plan shwing the land and mining area under applicatin by Richtrau 253 (Pty) Ltd is attached. It has been signed and dated by the applicant and cmpetent persn, Mrs. H.E Furie (c)registratin f Panfntein Clliery Panfntein Clliery hlds the prspecting rights ver hectrs n the farm described belw. The surface rights f this farm are in the prcess f being purchased by the applicant. Table B1: Minerals right and surface wners N. Registered Farm Name Extend (ha) Title Deed N. 1. Prtin 10 (a prtin 0f Prtin 7) 133,3091 T71637/2004 Panfntein 437-IR 2. Prtin 7 Panfntein 437-IR 1234,3852 T99271/ Prtin 8 Panfntein 437-IR 23,1315 T118421/ Prtin 1 Panfntein 437-IR, Re ,9617 T48605/2004 T48605/ Prtin 6 Panfntein 437-IR 610,0000 T43954/ Prtin 5 Panfntein 437-IR 1,7493 T6014/ Prtin 9 Panfntein 437-IR 4,1034 T118422/2005 TOTAL 3804,3533 Certified cpies f the mineral rights, title deeds and deed f transfer are attached in Appendix E. (d)the identified mineral depsits are identified belw Type f mineral t be mined: Cal The lcality f the mineral depsit in Relatin t the nearest twn: The cal reserve is lcated 10km ut f Vereeniging twn twards the Vaal Dam in the suth. Extent: A ttal f hectares under prspecting authrizatin, a ttal f hectares are planned t be mined, using bth undergrund and pencast methds Depth f the mineral depsit: The depth f the cal reserves ranges frm 36,39 meters t meters.

3 A brief descriptin f the gelgical structure f the mineral depsit Gelgical structures The Tp, Middle and Bttm cal seams are planned t be mined by means f pen cast methd, and the Bttm and Middle seam by undergrund methd. The seams vary frm 1.49 meters t 7.22 meters in thickness with an average f 4.25 meters used fr gelgical mdel. Reference is made t the figures attached, describing the seam thickness, depth t the flr and five seam stripping rati and the summary. Cal qualities analysis are cmplete and available. The resurce has been determined t have the ttal reserves f MT, refer t Table B2. Delineatin f mineral depsits Reference is made t the figures attached hereafter, delineating the mineral depsit. The mine plan describes the prven reserves as planned t be mined. Nte that there are blcks f cal t be mined using the pencast and undergrund mining methds. Due t the effect f the 1:100 years fld line, the mineable resurces will be as fllws: Table B3: Ttal Run f Mine reserves excluding the fld zne. Open cast tnnage Tp seam 18,561, Mt Middle seam Bttm seam 17, 209, Mt 10,309, Mt Ttal 48, 883, Mt Undergrund tnnage Middle seam 15, 506, Mt Bttm Seam 17, 150, Mt Ttal Overall Ttal 32, 656, Mt 81,540, Mt

4 Mineral cntent The quality f the Tp, Middle and Bttm seam raw cal is described in Figure B23 and B24 attached. (e)details f the market requirements and pricing in respect f the mineral cncerned The cal mined at Panfntein Clliery wuld be sent t supplement the supply t the cal fired pwer statins in Suth Africa especially the Lethab Pwer statin r whichever Eskm dictates. Prvide the list f the cnsumers Eskm and New Vaal Clliery Selling arrangements and market research The quality and supply f cal meets Eskm pwer statin market requirements. (f)time frames/ and scheduling f the varius implementatin phases The applicant Richtrau 253 (Pty) Ltd plans t perate Panfntein Clliery ver the perid f Twenty eight (28) years. The Prpsed Panfntein Clliery will cmprise bth pen pit mining as well as undergrund mining methds. The implementatin schedule includes the initial establishing f an pen pit which will be fllwed by undergrund mining twards year tw. Reserves will be mined fr apprximately 28 years, at the full prductin rate f tns per year fr pen cast mining, and tns per year fr Undergrund mining, allwing fr 12 mnths ramping perid fr undergrund. The cntract phase wuld take three t fur mnths befre the necessary pllutin cntrl measures are in place and prductin frm the undergrund begins. The target date is 1 January The undergrund sectin wuld take tw years lnger t bring int peratin and the first year will be used as a ramp up perid t ensure the infrastructure is in place. The undergrund wuld last 26 years. Refer t the schedule as described in Table B4. Life f mine The life f the prpsed Opencast and undergrund peratins is planned t be apprximately Twenty eight (28) and Twenty six (26) years respectively.

5 Mine infrastructure develpment and bx cut establishment The initial establishment phase will require apprximately 12 weeks. During this phase the rads and pllutins cntrl structures will be cnstructed, tp sil will be stripped. The cal will be sld as ROM via the New Vaal surface infrastructure systems. The Electrical and water reticulatin system will be cmmissined t supply pwer and water t the prcessing plant, Weight Bridge and ffices as well t manage the strm water runff. Management f discard and dumps The layut f the surface infrastructure and especially the crushing, cal washing and screening plant will be designed in rder t prperly manage the affected strm water. A water drain system t cllect runff rain water dwn slpe and t divert clean water upslpe f the crushing plant and cal stck piles will be cnstructed. The water wuld feed int the evapratin dam frm which water t dust suppressin wuld be drawn. The cal stckpiles will be restricted t crushing, screening and prduct plant areas. This area will be rehabilitated nce the mining has ceased. The extent f stckpiles will be cntrlled as cal will be prduced t satisfy the take ff agreements. An effective water management system will be cnstructed t prtect the Vaal River (especially n the western side f the reserve) shuld the risk significant impact be unacceptable. These systems may als be used fr pst clsure water treatment until a clsure treatment is issued. This will be designed in detail during the mine establishment phase. Prductin perid The actual caling phase will cmmence with the pen cast peratin and then undergrund sectin after initial tw year perid. Reserves will be mined fr apprximately 28 years, at the full prductin rate f tns per year fr pen cast mining, and tns per year fr Undergrund mining, allwing 12 mnths ramping perid fr undergrund.

6 Rehabilitatin Rehabilitatin will be nging in terms f the pencast peratin and will be finalized nce all the undergrund mining has been cmpleted. It is envisaged that a tw year maintenance and mnitring perid will be needed (r as required by the gvernment) befre the clsure certificate will be issued. (g)financial plan Details and csting f the financial plan has been included in Appendix D Table D2: Detail financial plan. i)mining Technique The mining will be financed by Richtrau 253 (PTY) LTD thrugh the establishment f a supply agreement with Angl cal and Eskm. Technlgy Richtrau 253 (PTY) LTD will use prven technlgy in terms f the pen cast mining methd, i.e. using Truck and Shvel with a rll ver methds. The cnventinal Brd and pillar mining will be emplyed fr Undergrund mining methd. The Primary and secndary mining will be used t ensure stability f the place. Prductin rates At full prductin, the reserves will be mined at a rate f 1, 788, 554 tns per year fr pen cast mining, and 1, 211, 446 tns per year fr Undergrund mining, allwing 12 mnths ramping perid fr undergrund. ii) Technlgical prcess applicable t the extractin and preparatin f the cal t cmply with the market requirements The cal will be simply crushed, screened and washed t meet the Eskm requirements.

7 iii) Technical skills and expertise and assciated labr implicatins required fr the prpsed mining peratins Richtrau 253 (Pty) Ltd will emply full time technical persnnel. The technical skills and expertise required fr the prpsed mining peratin will be supplemented by a cmbinatin f specialist cntractrs, cnsultants and practitiners as the need arises. A full time Safety Health and Envirnmental manager will be emplyed fr the mine. iv) Regulatry requirement relevant t the prpsed mining peratin in terms f the: The financial plan f the prpsed mining peratins has taken int accunt the requirements fr perating legally under the relevant legislatin. An additinal amunt f R0.005% f grss sales per ROM tns, has been included in the mdel t cater fr the requirements f ther applicable laws. v) Other relevant csts in terms f the: Capital expenditure A ttal f R 3,089,143,464 is needed fr capital expenditure fr the prject Expected revenue The expected revenue ver a perid f Twenty eight (28) years (LOM) is R 19,245,596,220 rands. vi) A detailed cash flw frecast and valuatin The cash flw frecast fr Panfntein Clliery fr year ne thrugh t year Twenty seven, Year 0 t year 2 has a negative cumulative cash flw f R1,237,299,298. Nte that this frecast excludes financing f prpsed peratins The applicable regulatry csts have been accmmdated in the financial mdel by the prvisin f an amunt f R0.005% f grss sales per ROM tns.

8 Vii) A descriptin f hw the implementatin and maintenance f Scial and labr plan has been prvided fr The implementatin and the maintenance f the Scial Labr plan has been catered fr funding frm the mining peratins at the tnnage rate f 6% f ttal verheads. The frecast f implementatin and maintenance is as fllws: Operating mining csts is R69.49/ROM tns Beneficiatin csts is R36.96/ROM tns Overheads csts is R37.13/ROM tns

9 viii) Undertaking by the applicant t adhere t the abve prpsal as set ut in the mining wrk prgramme. I, Pius Ssthenes Mkgkng herewith acknwledge must that the mining wrk prgramme cntemplated in sub regulatin (1) shall frm part f the mining right where such right is granted upn apprval by the minister Signed n this day July 2013 at Centurin Applicant Date Witness