OREBODY DEVELOPMENT

Security of tenure

The Mineral and Petroleum Resources Development Act, Act No. 28 of 2002 (MPRDA), resulted in the transfer of South Africa's mineral rights and their administration to the custody of the State. A ‘use it or lose it' principle was also adopted by the State which forced companies to relinquish unused mineral rights. In addition, operating mines were required to convert old order mining rights to, and/or apply for, new order mining rights by 30 April 2009. Old order mining rights remain valid until conversion. New order mining rights are valid for up to 30 years and can similarly be renewed for periods of up to 30 years. A new order mining right application must satisfy several prerequisites, including the submission of a mining works programme, a social and labour plan (SLP), an environmental management programme (EMP) and the applicant's status in terms of the participation level of historically disadvantaged South Africans (HDSAs) in the ownership and management of the organisation.

Mining rights

Information on the status of the mining rights and conversions to mining rights over the farms of Styldrift and Boschkoppie, are indicated in the table and map below.

Rustenburg Platinum Mines Limited (RPM) is the holder of the mining right on the farm of Boschkoppie. The new order mining right was registered in the Mineral and Petroleum Titles Registrations Office (MPTRO) on 19 January 2011. With the conversion a 67% interest in the right was transferred to and registered in the name of Royal Bafokeng Resources (RBR). Approval in terms of Section 11 of the MPRDA has been obtained for this transfer.

Furthermore, an agreement was reached between the Bafokeng Rasimone Platinum Mine Joint venture (BRPM JV) and Implats whereby a section proximate and down-dip to the defunct South D shaft will be mined by Implats’ 6 and 8 shafts for UG2 ore, respectively. A similar agreement has been reached with Implats whereby the Boot area of North shaft will be mined by Implats’ 20 shaft for Merensky and UG2 ore. A royalty will be paid by Implats equivalent to approximately 15% for 6 and 8 shafts and 17.5% for the Boot area of gross platinum group metal (PGE), nickel (Ni) and copper (Cu) revenue.

RBR holds a new order mining right on the farm of Styldrift. The mining right was registered on 1 February 2011 in the Mineral and Petroleum Titles Registrations Office (MPTRO). An undivided 33% interest in the right has been transferred to and registered in the name of RPM.

Prospecting rights

Two new order prospecting rights are held fully (100%) over portions of the farm of Frischgewaagd 96 JQ in the name of RPM. These rights are as follows:

• Full share remaining extent Portion 10 and full share of Portion 14
• Full share of Portion 17 (a portion of Portion 10)

Both these prospecting rights were notarially executed on 4 July 2007 and are valid for five years. Both rights lapsed on 3 July 2012. Approval in terms of Section 11 of the MPRDA was obtained to transfer the respective participation interests, 33% to RPM and 67% RBR based on the announcement to restructure the BRPM JV on 23 October 2008. Ministerial consent was granted and registered in the Mining and Titles Registration Office (MTRO) on:

• 27 January 2010 under registration no: 28/2010 (PRC) — Portions 10 and 14
• 23 February 2010 under registration no: 54/2010 (PRC) — Portion 17 of 10.

RPM and RBR will jointly lodge an application under Section 18 of the MPRDA to renew both the prospecting rights for three years.

RBPlat Mineral Rights status

Properties	Percentage interest	Status
Boschkoppie 104 JQ	67	New Order Mining Right – Granted and registered
Styldrift 90 JQ	67	New Order Mining Right – Granted and registered
Frischgewaagd 96 JQ Ptns 10, 14	67	Prospecting Right renewal – Processed
Frischgewaagd 96 JQ Ptn 17	67	Prospecting Right renewal – Processed

The following definitions from South African Code for Reporting Mineral Resources and Reserves (SAMREC) (2007) are used to define Mineral Reserves and Resources and Reserves:

"A 'Mineral Resource' is a concentration or occurrence of material of economic interest in or on the earth's crust in such form, quality and quantity that there are reasonable and realistic prospects for eventual economic extraction. The location, quantity, grade, continuity and other geological characteristics of a Mineral Resource are known, or estimated from specific geological evidence, sampling and knowledge interpreted from an appropriately constrained and portrayed geological model. Mineral Resources are subdivided, and must be so reported, in order of increasing confidence in respect of geoscientific evidence, into Inferred, Indicated or Measured categories."

"A 'Mineral Reserve' is the economically mineable material derived from a Measured or Indicated Mineral Resource or both. It includes diluting and contaminating materials and allows for losses that are expected to occur when the material is mined. Appropriate assessments to a minimum of a Pre-Feasibility Study for a project and a Life of Mine Plan for an operation must have been completed, including consideration of, and modification by, realistically assumed mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors (the modifying factors). Such modifying factors must be disclosed."

The Mineral Reserves and Mineral Resources and Mineral Reserves of RBPlat are classified, verified and reported according to the prescribed South African code (SAMREC) and the Australian Institute of Mining and Metallurgy Joint Mineral Reserves Committee code (JORC). The Reserves and Resources in this statement are stated as RBPlat's attributable interest (67%) and include those of Boschkoppie 104JQ, Styldrift 90JQ and portions 10, 14 and 17 of Frischgewaagd 96JQ.

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