Adding value

Extracting optimal value from the Mineral Resources and Mineral Reserves in our portfolio is fully aligned to ARM’s purpose of delivering competitive returns and creating sustainable value for all our shareholders through its strategic objectives:

Mineral Resources and Mineral Reserves report is issued annually to inform shareholders and potential investors of the mineral assets held by African Rainbow Minerals Limited (ARM). This summary should be read with the detailed 2022 ARM Mineral Resources and Mineral Reserves report on our website.

Introduction

Historical ARM Mineral Resources and Mineral Reserves reports can be found at www.arm.co.za under investor relations, financial results, integrated report.

The SAMREC Code, 2016 edition sets out minimum standards, recommendations and guidelines for Public Reporting of Exploration Results, Mineral Resources and Mineral Reserves in South Africa. It was launched and adopted by the JSE in May 2016. The 2022 ARM Mineral Resources and Mineral Reserves report is based on the SAMREC Code, 2016 edition. The reporting of Mineral Resources and Mineral Reserves is done annually according to the following flow chart:

Formal guidelines have been formulated to assist Competent Persons in the estimation, classification and reporting of Mineral Resources and Mineral Reserves. The guidelines are available at the corporate offices on the Mineral Resources Management (MRM) server.

As part of ARM’s management process of Mineral Resources and Mineral Reserves, quarterly divisional forums are conducted with the following objectives:

• Skills and technical knowledge transfer in the Mineral Resources and Mineral Reserves fields
• Ensuring that best practices through SAMREC compliant standard procedures are shared and applied
• Facilitate internal peer reviews and audits
• Advance professional development and registration of technical personnel.

The convention adopted in this report is that the Measured and Indicated Mineral Resources estimates are reported inclusive of that portion converted to Mineral Reserves. Inferred Mineral Resources have not been included in feasibility studies or life-of-mine plans. Mineral Resources and Mineral Reserves estimates are quoted as at 30 June 2022 unless stated otherwise.

Underground Mineral Resources are in-situ tonnages that have reasonable prospects for eventual economic extraction (RPEEE) at the postulated mining width, after deductions for geological losses. Underground Mineral Reserves reflect tonnages that will be mined and processed. Open-pit Mineral Resources are quoted as in-situ tonnages that have reasonable prospects for eventual economic extraction and Mineral Reserves are tonnages falling within an economic pit-shell. Surface Mineral Resources and Mineral Reserves consist of stockpiles already mined. All Mineral Reserves are quoted at the grade fed to the plant.

The classification into Measured, Indicated and Inferred Mineral Resources is done by consideration of geostatistical parameters, spacing of boreholes, geological structures and continuity of the mineralisation.

External consulting firms audit the Mineral Resources and Mineral Reserves of the ARM operations when substantial geological borehole data has been added to the previously established database or every three years, whichever comes first. During the past reporting cycle, the following operations were externally audited:

• Black Rock Mine: Mineral Resources were audited by Pivot Mining while Mineral Reserves were audited by Fraser McGill – Mining and Minerals Advisory
• Khumani Mine: Mineral Resources and Mineral Reserves were audited by Ukwazi.

The findings from these audits provided recommendations to improve some aspects of Mineral Resources and Mineral Reserves estimations, but also noted some areas of good practice.

Management of risk factors that relate to environmental, social and governance (ESG) aspects that could impact on the Mineral Resources and Mineral Reserves estimates are reported in this report, in the operating environment, sustainability performance for F2022 and managing our risk sections. It is also reported in the ESG report in our approach to ESG and value creation, environment and social sections.

Competence

The lead Competent Person with overall responsibility for the compilation of the 2022 Mineral Resources and Mineral Reserves report is Shepherd Kadzviti, an ARM employee. He confirms that the information in this report complies with the SAMREC Code, 2016 edition and that it may be published in the form and context in which it was intended.

Shepherd Kadzviti graduated with a BSc in geology and mathematics and an MSc in exploration geology from the University of Zimbabwe. He later completed a graduate diploma in mining engineering (GDE) at the University of the Witwatersrand. He worked at RioZim’s Renco Gold Mine for 14 years in various capacities as geologist, technical services superintendent and mine manager.

In 2005, he joined Anglo American Platinum at Union Mine as an evaluation geologist with responsibilities for geological database management and Mineral Resource estimation. After two years at the mine, he was transferred to the Anglo American Platinum corporate office where he was appointed resource geologist. He then joined ARM as mineral resources specialist in 2008, and was involved in the evaluation of various mineral deposits for the group. In 2012, he was appointed group mineral resources manager for ARM. He is registered with the South African Council for Natural Scientific Professions (SACNASP) as a professional natural scientist (PrSciNat) in the field of practice of geological science, registration number 400164/05. SACNASP is based in the Management Enterprise Building, Mark Shuttleworth Street, Innovation Hub, Pretoria, 0087, South Africa. He has a total of 32 years’ experience in various aspects of mining and exploration geology, database management and Mineral Resource estimation and as such is considered to be a Competent Person.

All Competent Persons at the ARM corporate office and the operations have sufficient relevant experience in the type of deposit and in the activity for which they have taken responsibility. The Competent Persons consent to the inclusion of the Exploration Results, Mineral Resources and Mineral Reserves information in this report, in the form and context in which it appears. Details of ARM’s Competent Persons are available from the company secretary on written request.

The following Competent Persons were involved in the estimation and/or compilation of Mineral Resources and Mineral Reserves. They are employed by ARM or its subsidiaries and/or joint-venture (JV) partners:

Shepherd Kadzviti PrSciNat
Group mineral resources manager

African Rainbow Minerals
24 Impala Road, Chislehurston, Sandton, South Africa.

7 October 2022

Salient features for F2022

Platinum

Ferrous

Coal