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Exx - Exxaro Resources - Audited Group Financial Results And Physical

Release Date: 21/02/2008 07:00:04      Code(s): EXX
EXX - Exxaro Resources - Audited Group Financial Results And Physical           
         Information For The 12-Month Period Ended 31 December 2007             
EXXARO RESOURCES LIMITED                                                        
(formerly Kumba Resources Limited)                                              
Incorporated in the Republic of South Africa                                    
(Registration Number: 2000/011076/06)                                           
Share Code: EXX                                                                 
ISIN Number: ZAE000084992                                                       
("Exxaro" or "the company")                                                     
AUDITED GROUP FINANCIAL RESULTS AND PHYSICAL INFORMATION FOR THE 12-            
MONTH PERIOD ENDED 31 DECEMBER 2007                                             
EXXARO                                                                          
POWERING POSSIBILITY                                                            
-    REVENUE EXCEEDS R10 BILLION                                                
-    NET OPERATING PROFIT UP 15% TO R1,4 BILLION                                
-    TOTAL DIVIDEND OF 160 CENTS PER SHARE                                      
-    FINAL DIVIDEND OF 100 CENTS PER SHARE                                      
-    HEADLINE EARNINGS 425 CENTS PER SHARE                                      
-    EXCITING COAL PROJECT DEVELOPMENTS                                         
CONDENSED GROUP INCOME STATEMENT                                                
                                               2007       2006                  
                                               Audited    Audited               
Year ended 31 December                          Rm         Rm                   
CONTINUING OPERATIONS                                                           
Revenue                                         10 157     7 263                
Operating expenses                              (8 696)    (6 022)              
Fair value adjustment on unbundling of                     17 963               
subsidiary                                                                      
BEE credential expense and unbundling costs                (821)                
Impairment of property, plant and equipment     (17)       (784)                
Net operating profit                            1 444      17 599               
Net financing costs (note 4)                    (215)      (307)                
Income from investments                         2                               
Share of income from equity accounted           728        159                  
investments                                                                     
Profit before taxation                          1 959      17 451               
Taxation                                        (512)      (578)                
Profit for the year from continuing operations  1 447      16 873               
Profit for the year from discontinued                      2 323                
operations (note 6)                                                             
Profit for the year                             1 447      19 196               
Attributable to:                                                                
Equity holders of the parent                    1 427      19 169               
Minority interest                               20         27                   
Net profit                                      1 447      19 196               
Ordinary shares (million)                                                       
- in issue                                      353        351                  
- weighted average number of shares             341        313                  
- diluted weighted average number of shares     355        318                  
Attributable earnings per share (cents)                                         
- basic                                         418        6 124                
- diluted                                       402        6 028                
Attributable earnings per share from                                            
continuing operations (cents)                                                   
- basic                                         418        5 382                
- diluted                                       402        5 297                
Attributable earnings per share from                                            
discontinued operations (cents)                                                 
- basic                                                    742                  
- diluted                                                  731                  
Dividend paid per share (cents) in respect of              160                  
the previous financial year                                                     
Dividend paid per share (cents) in respect of   60         180                  
the interim period                                                              
Special dividend paid per share (cents) on                 185                  
unbundling                                                                      
Final dividend declared per share (cents) in    100                             
respect of this financial year                                                  
CONDENSED GROUP BALANCE SHEET                                                   
                                               2007       2006                  
                                               Audited    Audited               
Year ended 31 December                          Rm         Rm                   
ASSETS                                                                          
Non-current assets                                                              
Property, plant and equipment                   8 235      7 583                
Biological assets                               30         26                   
Intangible assets                               76         69                   
Investments in associates and joint ventures                                    
(note 7)                                                                        
- unlisted                                      757        384                  
Deferred taxation                               732        748                  
Other financial assets (note 7)                 1 031      693                  
                                               10 861     9 503                 
Current assets                                                                  
Inventories                                     1 531      1 391                
Trade and other receivables                     1 931      1 663                
Cash and cash equivalents                       850        906                  
4 312      3 960                 
Non-current assets classified as held for sale  2          2                    
Total assets                                    15 175     13 465               
EQUITY AND LIABILITIES                                                          
Capital and reserves                                                            
Ordinary shareholders` equity                   9 804      8 142                
Minority interest                               19         27                   
Total shareholders` equity                      9 823      8 169                
Non-current liabilities                                                         
Interest-bearing borrowings                     1 259      1 214                
Non-current provisions                          1 329      931                  
Deferred taxation                               1 077      1 116                
3 665      3 261                 
Current liabilities                                                             
Trade and other payables                        1 449      1 321                
Interest-bearing borrowings                     74         613                  
Taxation                                        137        67                   
Current provisions                              27         30                   
Shareholders for dividends                                 4                    
                                               1 687      2 035                 
Total equity and liabilities                    15 175     13 465               
Net debt (note 10)                              483        921                  
Net asset value per share (cents)               2 778      2 320                
Capital expenditure                                                             
- incurred                                      1 296      2 010                
- contracted                                    450        842                  
- authorised but not contracted                 1 278      732                  
Capital expenditure contracted relating to                                      
captive mines, Tshikondeni, Arnot                                               
and Matla, which will be financed by            72         8                    
ArcelorMittal SA Limited and Eskom                                              
respectively                                                                    
Commitment relating to the acquisition of                                       
Namakwa Sands and a 26% interest                                                
in Black Mountain (Pty) Limited from Anglo      2 353      2 353                
Operations Limited, subject to price                                            
adjustments                                                                     
Contingent liabilities                          201        100                  
Operating lease commitments                     127        124                  
Operating sublease rentals receivable           1          10                   
CONDENSED GROUP CASH FLOW STATEMENT                                             
                                       2007          2006                       
                                       Audited       Audited                    
Year ended 31 December                  Rm            Rm                        
Cash retained from operations           2 308         5 068                     
- net financing costs                   (116)         (278)                     
- taxation paid                         (462)         (1 927)                   
- dividends paid (note 8)               (223)         (3 396)                   
Cash used in investing activities                                               
- capital expenditure                   (1 296)       (2 010)                   
- proceeds from disposal of property,   50            170                       
plant and equipment                                                             
- proceeds from disposal of investment                26                        
- income from equity accounted and      379                                     
other investments                                                               
- acquisition of subsidiary (note 9)    (8)           (1 545)                   
- investments acquired                  (249)                                   
- other                                 5             1                         
Net cash inflow/(outflow)               388           (3 891)                   
- cash flows from issue of shares       114           2 199                     
- borrowings (repaid)/raised            (567)         1 518                     
Net (decrease) in cash and cash         (65)          (174)                     
equivalents                                                                     
Special purpose entities consolidated   9                                       
Less cash and cash equivalents of                     (403)                     
unbundled subsidiaries                                                          
Cash and cash equivalents at beginning  906           1 483                     
of year                                                                         
Cash and cash equivalents at end of     850           906                       
year                                                                            
Calculation of movement in net debt                                             
Net cash inflow/(outflow)               388           (3 891)                   
- shares issued                         114           2 199                     
- share-based payments                                (54)                      
- increase in net debt on acquisition   (25)          (120)                     
of subsidiary                                                                   
- special purpose entities              9                                       
consolidated                                                                    
- non-cash flow movements in net debt                                           
applicable to currency translation                                              
differences of transactions                                                     
denominated in foreign currency                                                 
                                       59            16                         
- non-cash flow movements in net debt                                           
applicable to currency translation                                              
differences of net debt items of                                                
foreign entities                                                                
                                       (107)         (195)                      
- net debt of unbundled subsidiaries                  2 762                     
Decrease in net debt                    438           717                       
RECONCILIATION OF HEADLINE EARNINGS                                             
                                  Gross      Tax        Net                     
Year ended 31 December 2007        Rm         Rm         Rm                     
Net profit attributable to         1 427                 1 427                  
equity holders of the parent                                                    
Adjusted for:                                                                   
- IAS 16: Impairment of            23                    23                     
property, plant and equipment                                                   
- IAS 16: Gains or losses on       17         (5)        12                     
disposal of property, plant                                                     
and equipment                                                                   
- IAS 28: Share of associate`s     (3)        1          (2)                    
IAS 16 - Gains or losses on                                                     
disposal of property, plant and                                                 
equipment                                                                       
- IAS 28: Share of associate`s                                                  
IAS 39 - Recycling of                                                           
re-measurements from equity to                                                  
the income statement, including                                                 
a hedge of net investment in a                                                  
foreign entity                                                                  
but excluding cash flow hedges                                                  

                                                                                
                                                                                
                                                                                
(7)        1          (6)                     
- IAS 36: Impairment reversal of   (6)                   (6)                    
investment                                                                      
Headline earnings                  1 451      (3)        1 448                  
Year ended 31 December 2006                                                     
Net profit attributable to         19 169                19 169                 
equity holders of the parent                                                    
Adjusted for:                                                                   
- IFRS 3: Excess of acquirer`s                                                  
interest in the net fair value                                                  
of the acquiree`s identifiable                                                  
assets, liabilities and                                                         
contingent liabilities over cost                                                
                                  (36)                  (36)                    
- IFRS 5: Gains or losses on the                                                
measurement to fair value less                                                  
cost to sell on disposal of                                                     
assets or disposal groups                                                       
                                  (17 963)              (17 963)                
- IAS 16: Impairment of            784        (227)      557                    
property, plant and equipment                                                   
- IAS 16: Gains or losses on                                                    
disposal of property, plant                                                     
and equipment                                                                   

                                  3          1          4                       
- IAS 27: Gains on the disposal    (1)                   (1)                    
of a subsidiary                                                                 
- IAS 28: Gains or losses on the                                                
disposal of associates                                                          
or joint ventures                                                               
                                                                                
(38)       7          (31)                    
- IAS 28: Share of associate`s                                                  
IAS 16 - Gains or losses on                                                     
disposal of property, plant and                                                 
equipment                                                                       
                                                                                
                                  (1)                   (1)                     
Headline earnings                  1 917      (219)      1 698                  
Headline earnings from                                   2 328                  
discontinued operations                                                         
Headline (loss) from continuing                          (630)                  
operations                                                                      
2007       2006                    
Year ended 31 December                        Rm         Rm                     
Headline earnings per share                                                     
(cents)                                                                         
- basic                                       425        542                    
- diluted                                     408        534                    
Headline earnings/(loss) per                                                    
share from continuing operations                                                
(cents)                                                                         
- basic                                       425        (201)                  
- diluted                                     408        (198)                  
Headline earnings per share from                                                
discontinued operations (cents)                                                 
- basic                                                  744                    
- diluted                                                732                    
GROUP STATEMENT OF CHANGES IN EQUITY                                            
Non-distributable              
                                            reserves                            
                                                                                
                                                                                
Foreign      Financial    Equity-          
                 Share     Share     currency     instruments` settled          
                 capital   premium   translation  revaluation  reserve          
                 Rm        Rm        Rm           Rm           Rm               
OPENING BALANCE   3         2 937     (29)         (5)          88              
AT 31 DECEMBER                                                                  
2005                                                                            
Net                                   433          31           714             
gains/(losses)                                                                  
not recognised                                                                  
in income                                                                       
statement                                                                       
Currency                              438          1                            
translation                                                                     
differences                                                                     
Share of reserve                      6            (1)          3               
movements of                                                                    
associates                                                                      
Share-based                                                     711             
payments                                                                        
movement                                                                        
Financial                                                                       
instruments`                                                                    
fair value                                                                      
movements                                                                       
recognised in                                                                   
equity                                                                          
- recognised in                                    8                            
current year                                                                    
profit or loss                                                                  
- recognised in                                    33                           
equity                                                                          
Deferred                              (11)         (10)                         
taxation                                                                        
Net profit                                                                      
Dividends paid                                                                  
Share repurchase                                                                
Dividend in                           (25)         (2)                          
specie - fair                                                                   
value                                                                           
Dividend in                                                                     
specie - fair                                                                   
value adjustment                                                                
Dividend in                           (25)         (2)                          
specie - net                                                                    
asset value                                                                     
Issue of share    1         2 198                                               
capital                                                                         
- Management                248                                                 
Share Option                                                                    
Scheme Trust(1)                                                                 
- empowerment     1         1 950                                               
transformation                                                                  
transaction                                                                     
- issue of share            173                                                 
capital to share                                                                
trusts                                                                          
- treasury                  (173)                                               
shares                                                                          
                                                                                
BALANCE AT 31     4         5 135     379          24           802             
DECEMBER 2006                                                                   
Net gains/losses                      148          (17)         182             
not recognised                                                                  
in income                                                                       
statement                                                                       
Currency                              179          (3)                          
translation                                                                     
differences                                                                     
Share of reserve                      (13)         1            49              
movements of                                                                    
associates                                                                      
Share-based                                                     133             
payments                                                                        
movement                                                                        
Financial                                                                       
instruments`                                                                    
fair value                                                                      
movements                                                                       
recognised in                                                                   
equity                                                                          
- recognised in                                    (36)                         
equity                                                                          
- fair value                                       1                            
adjustment                                                                      
Deferred                              (18)         20                           
taxation                                                                        
Net profit                                                                      
Dividends paid                                                                  
Issue of share              23                                                  
capital(1)                                                                      
Share                       91                                                  
placement(2)                                                                    
- issue                     640                                                 
- repurchase                (460)                                               
- expenses                  (89)                                                
Transfer to                                                     (16)            
retained income                                                                 
Minority                                                                        
share-buy out                                                                   
Special purpose                                                                 
entities now                                                                    
consolidated                                                                    
Prior year                  (3 186)                                             
dividend in                                                                     
specie                                                                          
reclassification                                                                
BALANCE AT 31     4         2 063     527          7            968             
DECEMBER 2007                                                                   
(1) Issued to the Management Share Option Scheme Trust due to options           
exercised.                                                                      
(2) Repurchase of 10 million shares from Anglo South Africa (Pty)               
Limited on 13 April 2007 at R45,99 per share and the subsequent re-issue        
of 10 million new Exxaro shares at R64 per share. Secondary Tax on              
Companies (STC) on the share repurchase of R57,5 million is included in         
net profit.                                                                     
(3) Dividends declared after the year-end comprise of a final dividend          
of 100 cents per share. The STC payable on dividends will be nil after          
taking into account STC credits.                                                
GROUP STATEMENT OF CHANGES IN EQUITY                                            
Attributable                               
                                     to equity              Total               
                 Insurance Retained  holders of   Minority  shareholders        
                 reserve   income    the parent   interest  interest            
Year ended 31     Rm        Rm        Rm           Rm        Rm                 
December 2007                                                                   
OPENING BALANCE             4 325     7 319        9         7 328              
AT 31 DECEMBER                                                                  
2005                                                                            
Net                                   1 178                  1 178              
gains/(losses)                                                                  
not recognised                                                                  
in income                                                                       
statement                                                                       
Currency                              439                    439                
translation                                                                     
differences                                                                     
Share of reserve                      8                      8                  
movements of                                                                    
associates                                                                      
Share-based                           711                    711                
payments                                                                        
movement                                                                        
Financial                                                                       
instruments`                                                                    
fair value                                                                      
movements                                                                       
recognised in                                                                   
equity                                                                          
- recognised in                       8                      8                  
current year                                                                    
profit or loss                                                                  
- recognised in                       33                     33                 
equity                                                                          
Deferred                              (21)                   (21)               
taxation                                                                        
Net profit                  19 169    19 169       27        19 196             
Dividends paid              (1 628)   (1 628)      (9)       (1 637)            
Share repurchase            (1 763)   (1 763)                (1 763)            
Dividend in                 (18 305)  (18 332)               (18 332)           
specie - fair                                                                   
value                                                                           
Dividend in                 (17 966)  (17 966)               (17 966)           
specie - fair                                                                   
value adjustment                                                                
Dividend in                 (339)     (366)                  (366)              
specie - net                                                                    
asset value                                                                     
Issue of share                        2 199                  2 199              
capital                                                                         
- Management                          248                    248                
Share Option                                                                    
Scheme Trust(1)                                                                 
- empowerment                         1 951                  1 951              
transformation                                                                  
transaction                                                                     
- issue of share                      173                    173                
capital to share                                                                
trusts                                                                          
- treasury                            (173)                  (173)              
shares                                                                          
                                                                                
BALANCE AT 31               1 798     8 142        27        8 169              
DECEMBER 2006                                                                   
Net gains/losses            9         322          (4)       318                
not recognised                                                                  
in income                                                                       
statement                                                                       
Currency                              176                    176                
translation                                                                     
differences                                                                     
Share of reserve            9         46                     46                 
movements of                                                                    
associates                                                                      
Share-based                           133                    133                
payments                                                                        
movement                                                                        
Financial                                                                       
instruments`                                                                    
fair value                                                                      
movements                                                                       
recognised in                                                                   
equity                                                                          
- recognised in                       (36)         (4)       (40)               
equity                                                                          
- fair value                          1                      1                  
adjustment                                                                      
Deferred                              2                      2                  
taxation                                                                        
Net profit                  1 427     1 427        20        1 447              
Dividends paid              (208)     (208)        (11)      (219)              
Issue of share                        23                     23                 
capital(1)                                                                      
Share                                 91                     91                 
placement(2)                                                                    
- issue                               640                    640                
- repurchase                          (460)                  (460)              
- expenses                            (89)                   (89)               
Transfer to                 16                                                  
retained income                                                                 
Minority                                           (13)      (13)               
share-buy out                                                                   
Special purpose             7         7                      7                  
entities now                                                                    
consolidated                                                                    
Prior year                  3 186                                               
dividend in                                                                     
specie                                                                          
reclassification                                                                
BALANCE AT 31               6 235     9 804        19        9 823              
DECEMBER 2007                                                                   
NOTES TO THE GROUP FINANCIAL RESULTS                                            
1. BASIS OF PREPARATION                                                         
This condensed report complies with International Accounting Standard           
34, Interim Financial Reporting, and schedule 4 of the South African            
Companies Act. The financial statements from which these group financial        
results have been derived are prepared on the historical basis excluding        
financial instruments and biological assets, which are fair valued, and         
conform to International Financial Reporting Standards. The accounting          
policies adopted are consistent with those applied in the annual                
financial statements for the year ended 31 December 2006, except for the        
adoption of IFRS 7 Disclosure of Financial Instruments during the year.         
This is a disclosure standard which has no impact on the measurement or         
recognition of financial instruments and accordingly the adoption               
thereof has had no effect on the profit or equity for the period.               
                                       2007           2006                      
                                       Audited        Audited                   
Year ended 31 December                  Rm             Rm                       

2.?PROFIT BEFORE TAXATION FROM                                                  
CONTINUING AND DISCONTINUED                                                     
OPERATIONS IS ARRIVED AT AFTER                                                  
Depreciation and amortisation of        (763)          (813)                    
intangible assets                                                               
Financing costs                         (311)          (451)                    
Interest received                       96             115                      
Net realised foreign currency           (42)           199                      
exchange (losses)/gains                                                         
Net unrealised foreign currency         (32)           (97)                     
exchange (losses)/gains                                                         
Derivative instruments held for         61             (226)                    
trading                                                                         
Impairment charges (note 3)             (17)           (784)                    
Excess of minority interest over cost                  36                       
of acquisition                                                                  
Net profit on disposal of investments                  39                       
Fair value adjustment on unbundling                    17 963                   
of subsidiary                                                                   
Net deficit on disposal of property,    (17)           (3)                      
plant and equipment                                                             
Share-based payment: BEE credential                    (580)                    
expense                                                                         
Cost of empowerment transaction,                       (241)                    
unbundling, integration and branding                                            
3. IMPAIRMENT CHARGES AND REVERSALS                                             
Impairment of property, plant and       (23)           (784)                    
equipment(1)                                                                    
Reversal of impairment of other         6                                       
investments                                                                     
                                       (17)           (784)                     
Taxation effect                                        (227)                    
                                       (17)           (557)                     
(1) 2006: Impaired to value in use                                              
based on an 8,53% discount rate.                                                

4. NET FINANCING COST                                                           
Interest expense and loan costs         153            354                      
Finance leases                          59             39                       
Interest income                         (96)           (115)                    
Net interest expense                    116            278                      
Interest adjustment on non-current      99             58                       
provisions                                                                      
215            336                       
Less discontinued operations (note 6)                  (29)                     
Net financing cost as per income        215            307                      
statement                                                                       
5. TAX RATE RECONCILIATION              %              %                        
Taxation as a percentage of profit      26,1           6,5                      
before taxation                                                                 
Taxation effect of:                                                             
- assessed losses (not provided for)    (0,2)                                   
- capital profits                       0,5            0,1                      
- fair value adjustment on unbundling                  25,4                     
of subsidiary                                                                   
- disallowable expenditure              (2,1)          (1,5)                    
- environmental rehabilitation asset                                            
- exempt income                         0,3            0,4                      
- special tax allowances                0,2                                     
- share of associates` and joint        10,8           0,1                      
ventures` differences                                                           
- tax rate differences                  (2,1)          (0,2)                    
- temporary differences not provided                   (0,2)                    
for                                                                             
- Secondary Tax on Companies (STC)      (2,9)          (2,0)                    
- withholding tax                       (0,5)                                   
- Controlled Foreign Company (CFC)      (0,3)                                   
profits                                                                         
- foreign exchange differences          (0,1)          (0,1)                    
- prior year adjustment                 (0,7)          0,5                      
                                       29,0           29,0                      
6. DISCONTINUED OPERATIONS                                                      
Exxaro unbundled its iron ore                                                   
business effective 1 November 2006 as                                           
part of an empowerment transaction                                              
and now holds only a 20% interest in                                            
Sishen Iron Ore Company (Pty) Limited                                           
which is equity accounted.                                                      
                                                                                
Revenue                                                6 483                    
Operating expenses                                     (3 385)                  
Net operating profit                                   3 098                    
Net financing costs                                    (29)                     
Profit before taxation                                 3 069                    
Taxation                                               (746)                    
Profit for the period from                             2 323                    
discontinued operations                                                         
Cash flow attributable to operating                    982                      
activities                                                                      
Cash flow attributable to investing                    (1 079)                  
activities                                                                      
Cash flow attributable to financing                    93                       
activities                                                                      
Cash flow attributable to                              (4)                      
discontinued operations                                                         
7. INVESTMENTS                                                                  
Unlisted investments in associates                                              
- directors` valuation                  9 110          4 812                    
Listed investments included in other                                            
financial assets                                                                
- market value                                         92                       
Unlisted investments included in                                                
other financial assets                                                          
- directors` valuation                  328            93                       
8. DIVIDENDS PAID                                                               
Cash dividends                          211            1 628                    
Share repurchase                                       1 763                    
Paid to minorities                      12             5                        
                                       223            3 396                     
9. BUSINESS COMBINATION                                                         
On 27 February 2007, the group                                                  
acquired 100% of the issued share                                               
capital of Rosh Pinah Mine Holdings                                             
(Pty) Limited which is included in                                              
the base metals segment results. The                                            
acquired business contributed neither                                           
revenue nor operating profits to the                                            
group for the period from 27 February                                           
2007 to 31 December 2007. This                                                  
transaction increased the Exxaro                                                
effective shareholding in Rosh Pinah                                            
Zinc Corporation (Pty) Limited from                                             
89,5% to 93,9%.                                                                 

                                                                                
Details of assets acquired are as                                               
follows:                                                                        
- cash paid on acquisition              (8)                                     
- fair value of assets acquired         8                                       
Goodwill                                                                        
Fair value of assets acquired                                                   
- property, plant and equipment         18                                      
- investments                           15                                      
- interest-bearing borrowings           (25)                                    
Fair value of net assets                8                                       
Total purchase consideration            (8)                                     
Cash outflow on acquisition of          (8)                                     
subsidiary                                                                      
10.  NET DEBT                                                                   
Net debt is calculated as being interest-bearing borrowings less cash           
and cash equivalents.                                                           
11.  RELATED PARTY TRANSACTIONS                                                 
During the period the company and its subsidiaries, in the ordinary             
course of business, entered into various sale and purchase transactions         
with associates and joint ventures. These transactions were subject to          
terms that are no less favourable than those arranged with third                
parties.                                                                        
12.  SUBSEQUENT EVENTS                                                          
The directors are not aware of any matter or circumstance arising after         
the balance sheet date up to the date of this report, not otherwise             
dealt with in this report.                                                      
13.  JSE LIMITED REQUIREMENTS                                                   
The announcement has been prepared in accordance with the listing               
requirements of the JSE Limited.                                                
14.  CORPORATE GOVERNANCE                                                       
The group complies in all material respects with the Code of Corporate          
Practice and Conduct published in the King II Report on Corporate               
Governance.                                                                     
15.  AUDIT OPINION                                                              
The auditors, Deloitte & Touche, have issued their opinion on the               
group`s financial statements for the year ended 31 December 2007. The           
audit was conducted in accordance with International Standards on               
Auditing. They have issued an unmodified audit opinion. A copy of their         
audit report is available for inspection at the company`s registered            
office. These summarised financial results have been derived from the           
group financial statements and are consistent in all material respects,         
with the group annual financial statements.                                     
UNAUDITED PHYSICAL INFORMATION (`000 TONNES)                                    
                      12 months ended         Six months ended                  
                      31 December             31 December                       
                                                                                
2007        2006        2007        2006                  
Coal(1)                                                                         
Production                                                                      
- Power station        34 246      34 599      16 830      16 849               
- Tied operations(2)   16 732      17 596      8 353       8 638                
- Commercial           17 514      17 003      8 477       8 211                
operations                                                                      
- Coking               2 962       2 496       1 479       1 109                
- Tied operations(2)   463         363         242         180                  
- Commercial           2 499       2 133       1 237       929                  
operations                                                                      
- Other commercial     4 112       4 665       2 016       2 339                
operations                                                                      
Total                  41 320      41 760      20 325      20 297               
Sales                                                                           
- Eskom                34 226      34 665      16 604      16 554               
- Tied operations(2)   16 699      17 598      8 337       8 623                
- Commercial           17 527      17 067      8 267       7 931                
operations                                                                      
- Other domestic       5 237       4 892       2 572       2 449                
- Tied operations(2)   449         381         214         207                  
- Commercial           4 788       4 511       2 358       2 242                
operations                                                                      
- Export commercial    1 821       2 434       813         1 092                
operations                                                                      
Total                  41 284      41 991      19 989      20 095               
Mineral Sands - RSA                                                             
Production                                                                      
- Ilmenite             367         319         187         160                  
- Zircon               34          50          19          26                   
- Rutile               17          25          9           12                   
- Pig Iron             86          75          48          41                   
- Scrap Pig Iron       20          10          9           5                    
- Chloride Slag        150         134         77          72                   
- Sulphate Slag        26          36          14          18                   
Sales                                                                           
- Ilmenite (external   50          50          30          30                   
sales)                                                                          
- Zircon               27          48          14          23                   
- Rutile               18          31          9           9                    
- Pig Iron             88          60          45          29                   
- Scrap Pig Iron       8           9           4           5                    
- Chloride Slag        163         104         81          64                   
- Sulphate Slag        29          30          8           10                   
Minerals Sands -                                                                
Australia(3)                                                                    
Production                                                                      
- Ilmenite             216         227         111         116                  
- Zircon               36          36          19          18                   
- Rutile               17          18          8           9                    
- Synthetic Rutile     100         98          48          54                   
- Leucoxene            16          14          8           7                    
- Pigment              54          54          26          27                   
Sales                                                                           
- Ilmenite             20          30          10                               
- Zircon               29          32          16          16                   
- Rutile               16          18          2           8                    
- Synthetic Rutile     57          27          21          19                   
- Leucoxene            17          10          7           4                    
Base Metals                                                                     
Production                                                                      
- Zinc concentrate -   95          104         53          55                   
Rosh Pinah                                                                      
- Zinc metal           124         106         61          56                   
- Zincor               101         90          51          48                   
- Chifeng(4)           23          16          10          8                    
- Lead concentrate -   22          21          11          13                   
Rosh Pinah                                                                      
Zinc metal sales       122         115         57          60                   
- Domestic             93          91          45          45                   
- Export               29          24          12          15                   
Lead concentrate                                                                
sales - Rosh Pinah                                                              
- Export               19          32          7           12                   
(1)  For comparative purposes the Eyesizwe Coal mines are included for          
the full periods disclosed.                                                     
(2) Tied operations refer to mining operations that supply their entire         
production to either Eskom or ArcelorMittal SA Limited in terms of              
contractual arrangements.                                                       
(3) The production and sales tonnes reflect Exxaro Sands Australia`s 50%        
interest in the Tiwest joint venture with Tronox Inc., Western                  
Australia.                                                                      
(4)  The effective interest in the physical information for the Chifeng         
(Hongye) refinery has been disclosed.                                           
COMMENTS                                                                        
REPORTED RESULTS NOT COMPARABLE                                                 
The group`s audited financial results and actual physical information           
for the 12-month periods ended 31 December 2007 and 2006 respectively           
are not comparable as a result of the empowerment transaction that              
resulted in the creation of Exxaro Resources Limited ("Exxaro") in              
November 2006.                                                                  
The audited financial results for the 12-month period ended 31 December         
2006 include Sishen Iron Ore Company ("SIOC") fully consolidated for 10         
months to October 2006 with Eyesizwe Coal (Pty) Limited ("Eyesizwe")            
only consolidated for two months to December 2006 and an effective 20%          
holding in SIOC equity accounted for the same two-month period.                 
The 2007 financial year, however, has Eyesizwe fully consolidated and           
the effective 20% interest in SIOC equity accounted, for the entire 12-         
month period.                                                                   
COMPARABLE SUPPLEMENTARY RESULTS                                                
Comparable unaudited supplementary financial results, together with             
physical information, is additionally provided below for information            
purposes only, on the assumption that Exxaro had been created with              
effect from 1 January 2006.                                                     
Comments are for comparable purposes based on an analysis of the group`s        
audited financial results and physical information for the 12-month             
period to 31 December 2007 compared with the unaudited supplementary            
financial results and physical information compiled for the 12-month            
period to 31 December 2006.                                                     
OPERATING RESULTS                                                               
The group experienced strong demand at higher commodity prices despite          
the significant decrease in LME zinc prices in the last quarter of 2007.        
This, together with a stronger rand of R6,80 to the US dollar on                
31 December 2007, resulted in revaluations of stock to net realisable           
value in the base metals and mineral sands businesses decreasing by R133        
million compared to the end of 2006.                                            
Revenue increased by 15% to R10 157 million and net operating profit was        
R183 million higher at R1 444 million.                                          
An average exchange rate of R7,26 to the US dollar was realised compared        
with R6,76 for the corresponding period in 2006. The significant                
strength of the Australian dollar to the US dollar (US$0,83 to the AUD          
realised against US$0,75 for 2006), however, impacted negatively on the         
financial results of the mineral sands operations in Australia.                 
EARNINGS                                                                        
Attributable earnings for the period are R1 427 million (418 cents per          
share) representing a 48% increase on the comparable 2006 attributable          
earnings of R962 million (307 cents per share). This includes Exxaro`s          
20% interest in the after-tax profits of SIOC amounting to R746 million,        
some R148 million higher than for the comparable period.                        
Headline earnings increased from R893 million to R1 448 million with            
headline earnings per share 49% higher at 425 cents compared with 285           
cents for the comparable corresponding period.                                  
CASH FLOW                                                                       
Cash retained from operations of R2 308 million was mainly applied to           
taxation payments of R461 million, capital expenditure of R1 296 million        
(consisting of R727 million invested in new capacity and R569 million in        
sustaining and environmental capital), an investment of R239 million in         
the Richards Bay Coal Terminal (RBCT) to secure 2,5Mtpa export                  
entitlement, and the interim dividend payment of R211 million or 60             
cents per share in September 2007. The group had a net cash inflow of           
R388 million for the financial year.                                            
After accounting for the net surplus of R91 million on the repurchase of        
10 million shares from Anglo South Africa Capital (Pty) Limited and the         
market placement of the same number of new shares, as well as a dividend        
inflow of R373 million from SIOC, cash and cash equivalents increased by        
R502 million before the repayment of borrowings.                                
Net debt of R921 million at 31 December 2006 decreased to R483 million          
at a net debt to equity ratio of 5% on 31 December 2007. Net debt will          
increase by the payment commitment of R2 353 million, subject to the            
disclosed price adjustments, for the acquisition of Namakwa Sands and a         
26% interest in Black Mountain/Gamsberg on conversion and subsequent            
cession of their mining rights.                                                 
SAFETY, HEALTH AND ENVIRONMENT                                                  
The group remains committed to achieving a working environment that is          
fatality and injury free. Its safety awareness and preventative                 
programmes have been strengthened by further initiatives to enhance             
hazard identification and safe behaviour by individuals. Despite                
excellent safety achievements at several operations, regrettably four on-       
mine fatalities and one public road fatality were suffered during the           
period under review. The average lost time injury frequency rate (LTIFR)        
per 200 000 man-hours worked for the reporting period, however, improved        
to 0,36 compared to 0,42 for the corresponding period in 2006.                  
Nine of the group`s 12 operations have achieved both the international          
health and safety certification (OHSAS 18001) and environmental                 
certification (ISO 14001). The group aims to have all business units            
fully compliant with both certifications by December 2008.                      
In response to the growing global threat of climate change, Exxaro has          
developed a Clean Energy Strategy as a dedicated response measure.              
Through this initiative Exxaro will be aligning all of its energy               
related activities to South Africa`s Climate Change Response Strategy,          
with a key output for 2008 being the company-wide carbon footprint. This        
footprint will serve as a baseline against which our energy efficiency          
progress will be measured, monitored, and improved.                             
The implementation of HIV/Aids voluntary counselling and testing (VCT)          
and extension of anti-retroviral programmes to all of the group`s               
businesses is also progressing well with the majority of employees who          
tested HIV-positive enrolled on the disease management programme. Thirty        
percent of the workforce participated in the VCT programme by the end of        
2007 and a renewed focus to encourage participation by employees in the         
programme and, where necessary, to enrol on the disease management              
programme, is planned for 2008.                                                 
REPORTED SEGMENT RESULTS                                                        
                                         2007         2006                      
                                         Audited      Audited                   
12 months ended 31 December               Rm           Rm                       
REVENUE                                                                         
Iron Ore                                               6 483                    
Coal                                      5 087        2 882                    
Mineral Sands                             2 172        1 859                    
KZN Sands                                 984          817                      
Australia Sands                           1 188        1 042                    
Base Metals                               2 732        2 379                    
Industrial Minerals                       159          122                      
Other                                     7            21                       
Total as per audited income statement     10 157       13 746                   
NET OPERATING PROFIT                                                            
Iron Ore                                               3098                     
Coal                                      885          599                      
Mineral Sands                             (97)         (698)                    
KZN Sands                                 (157)        (842)                    
Australia Sands                           60           144                      
Base Metals                               688          609                      
Industrial Minerals                       (3)          26                       
Other                                     (29)          17 063(1)               
Total as per audited income statement     1 444        20 697                   
(1)  Includes the non-recurring accounting entries associated with the          
empowerment transaction in November 2006.                                       
COMPARABLE UNAUDITED SUPPLEMENTARY RESULTS                                      
2007             2006                      
12 months ended 31 December           Rm               Rm                       
REVENUE                                                                         
Coal(1)                               5 087            4 433                    
Commercial operations                 3 319            2 808                    
Tied operations                       1 768            1 625                    
Mineral Sands                         2 172            1 859                    
KZN Sands                             984              817                      
Australia Sands                       1 188            1 042                    
Base Metals                           2 732            2 379                    
Rosh Pinah                            941              888                      
Zincor                                2 558            2 234                    
Consolidation entries                 (767)            (743)                    
Industrial Minerals                   159              122                      
Other                                 7                21                       
Total comparable revenue              10 157           8 814                    
NET OPERATING PROFIT                                                            
Coal(1)                               885              620                      
Commercial operations                 797              515                      
Tied operations                       88               105                      
Mineral Sands                         (97)             86                       
KZN Sands(2)                          (157)            (114)                    
Australia Sands                       60               200                      
Base Metals                           688              609                      
Rosh Pinah                            457              404                      
Zincor                                298              238                      
Consolidation entries                 (67)             (33)                     
Industrial Minerals                   (3)              (1)                      
Current operations                    24               26                       
AlloyStream                           (27)             (27)                     
Other(3)                              (29)             (53)                     
Total comparable net operating        1 444            1 261                    
profit                                                                          
Net financing costs                   (215)            (315)                    
Income from investments               2                                         
Equity accounted income(4)            728              638                      
Taxation(2)                           (512)            (595)                    
Minority interest                     (20)             (27)                     
Comparable attributable earnings      1 427            962                      
Post tax adjustments                  21               (69)                     
Comparable headline earnings          1 448            893                      
Comparable attributable earnings per  418              307                      
share (cents)                                                                   
Comparable headline earnings per      425              285                      
share (cents)                                                                   
(1) Includes ex-Eyesizwe mines for the full periods.                            
(2) Excludes the pre-tax impairment in 2006 of R784 million and the             
taxation effect of R227 million.                                                
(3) Excludes non-recurring expenditure of R241 million associated with          
the empowerment transaction in the 12 months to 31 December 2006.               
(4) Includes 20% investment in SIOC equity accounted from 1 January             
2006.                                                                           
OPERATIONS                                                                      
COAL                                                                            
Production of power station coal was 353kt lower than for the                   
corresponding period in 2006 as reduced output at Matla and Arnot was           
only partially offset by increased production at the North Block Complex        
(NBC), Leeuwpan and Grootegeluk mines. Lower production at the Eskom            
tied operations, Matla and Arnot, resulted respectively from a delay in         
obtaining regulatory approval for a river diversion and from difficult          
geological conditions.                                                          
Coking coal production showed a marked increase of 466kt year-on-year           
due to improved performance at Tshikondeni as well as the successful            
ramp-up of the GG6 plant at the Grootegeluk mine.                               
Coal exports were 25% lower than in 2006 primarily due to Exxaro`s              
decision to close the underground mining operations during January 2007         
at New Clydesdale Colliery (NCC) as a result of unsafe mining                   
conditions. To mitigate the loss of production at NCC, commissioning of         
the Inyanda mine was fast tracked and first run-of-mine coal was                
supplied to NCC for beneficiation four months after site establishment.         
Leeuwpan mine`s reclaimer suffered a structural failure in September            
2007 and is only expected to be repaired in the third quarter of 2008.          
Front-end loaders have been deployed to minimise the impact on sales.           
Total sales to Eskom were 439kt lower year-on-year in line with the             
decrease in production. However, other domestic sales were significantly        
higher on the back of a 27% increase in semi-soft coking coal sales to          
ArcelorMittal SA Limited (ArcelorMittal) in line with increased demand.         
Revenue increased by 15% to R5 087 million. This was due to                     
significantly higher free on rail export prices, increased selling              
prices to ArcelorMittal based on higher international coking coal prices        
and stronger power station coal prices to Eskom.                                
Despite a lower operating income at the tied operations brought about by        
a non-recurring payment of R30 million from Eskom to Arnot for committed        
reserves in 2006, Exxaro Coal achieved a record net operating profit of         
R885 million, 43% higher than in 2006. The higher revenue, the                  
profitable turnaround at NBC and the savings realised from integrating          
the Eyesizwe and Kumba Coal corporate offices, offset inflationary              
pressures primarily in respect of labour and diesel costs.                      
MINERAL SANDS                                                                   
KZN SANDS                                                                       
KZN Sands reported improved production results from both furnaces for           
the 2007 financial year in contrast with the negative impact that the           
Furnace 1 shut had on production in the same period in 2006. Titanium           
slag tapped was 35 659 tonnes higher at an annual production record of          
186,6kt. Increased slag throughput also boosted low manganese pig iron          
(LMPI) production. Ilmenite production was aligned with higher smelter          
feed requirements, resulting in 48kt more than in 2006.                         
Business improvement initiatives during the year focused on increasing          
smelter output at KZN Sands with Furnace 1 and Furnace 2 achieving cold         
feed capacity of 92kt (84%) and 94,6kt (86%) respectively.                      
The pre-heater was not introduced as planned due to instability in the          
furnaces, exacerbated by Eskom`s power supply shortages in the last             
quarter of the year. KZN Sands will undertake a review in 2008 of the           
current furnace hearth technology in use at the operation with the              
objective to improve the performance of the furnaces.                           
Zircon and rutile production declined due to lower mineral grades in the        
area mined during the period under review.                                      
Revenue was R167 million higher due to increased chloride slag and LMPI         
sales. Net operating loss increased by R43 million which includes a R45         
million write down of the crude ilmenite stockpile from cost to net             
realisable value due to the stronger rand at the end of the financial           
year.                                                                           
Furnace 2 is due for a scheduled maintenance shut in the latter part of         
2008 which will result in less slag and LMPI production in 2008 when            
compared to the 2007 financial year.                                            
The average minerals sands in-situ grade at the Hillendale mine nearing         
the end of its life is expected to be lower in 2008 until the mining and        
development of the Fairbreeze and Braeburn deposits can commence upon           
obtaining the mining rights.                                                    
AUSTRALIA SANDS                                                                 
Revenue increased by 14% primarily as a result of substantially higher          
synthetic rutile sales due to successful treatment of the ilmenite              
stockpile and the rollover of 2006 sales following the unplanned shut of        
the kiln for repairs and preventative maintenance in 2006.                      
Record pigment production was maintained during the period due to               
continuous de-bottlenecking of the pigment plant and business                   
improvement initiatives. Zircon and rutile volumes were sustained as            
initiatives to increase recoveries were offset by reduced feed into the         
dry mill, in turn caused by lower mining grades resulting in reduced            
concentrate production.                                                         
A planned five-week shut for the synthetic rutile plant was successfully        
completed on schedule in July 2007. The benefits of the shut led to             
increased synthetic rutile production. A successful two-week shut was           
also completed at the Cooljarloo mine and included the replacement of           
the outer shell of the floating feed preparation unit.                          
Net operating profit, however, decreased substantially as the Australian        
dollar strengthened by more than 20% against the US dollar to a 23-year         
high and continued cost increases in energy consumables were not fully          
offset by modest price increases for zircon and pigment.                        
The 2008 mining plan indicates mining of a lower grade area for most of         
the year. This is expected to result in marginally lower heavy minerals         
concentrate production.                                                         
BASE METALS                                                                     
Production of zinc concentrate at the Rosh Pinah mine of 95kt was nine          
percent lower than the equivalent period in 2006 attributable to floods         
in the early part of the year in southern Namibia, industrial action at         
the mine in the second half of the year as well as stoppages due to             
equipment and plant failure. This also had a negative effect on lead            
production.                                                                     
Production volumes at the Zincor refinery increased from 90kt in 2006 to        
101kt in 2007 underpinned by the improved quality of imported zinc              
concentrates and plant performance which in turn positively impacted on         
zinc recoveries of up to almost 92%. Zincor successfully completed a            
rebuild of the number 4 roaster similar to roaster number 3 that was            
rebuilt in the second half of 2006, resulting in a marked improvement in        
the roaster throughput in the plant.                                            
Similar to 2007, capital expenditure in 2008 at both Rosh Pinah and             
Zincor will focus on the replacement of mining and plant equipment              
including the rebuild of the two small roasters and the realignment and         
major maintenance of the cell house at Zincor.                                  
Revenue increased by 15% to R2 732 million with an operating margin of          
25% as a result of a 2% increase in the average rand zinc price for the         
year to R22 824 per tonne compared to R22 311 per tonne in 2006. This           
was partially offset by inflationary production cost increases, and a           
write down to net realisable value of zinc stocks in the amount of R88          
million resulting from the decline in LME zinc prices converted to rand         
terms, at the end of the reporting year.                                        
Production ramp-up from 50ktpa to 110ktpa at the Chifeng refinery has           
reached 80% of design capacity at year-end. Exxaro has an effective 22%         
interest in the expanded operation. The significant decline in demand           
for zinc, especially zinc alloys, in the local Chinese market as well as        
the sharp decline in prices at year-end combined with the higher                
operating expenditure during the ramp-up phase, resulted in Exxaro`s            
equity accounted interest reducing from a profit of R40 million in 2006         
to a loss of R18 million in 2007.                                               
Completion of the transaction to divest a 43,8% interest in Rosh Pinah          
Zinc Corporation (Pty) Limited ("Rosh Pinah") to Namibian shareholder           
groupings is targeted for the first half of 2008, effectively reducing          
Exxaro`s shareholding in Rosh Pinah to 50,04%. Exxaro will continue to          
manage the mine in terms of a management agreement.                             
A total of 13kt representing 30% of Rosh Pinah`s projected lead sales up        
to June 2010 were hedged at forward prices ranging from US$1 700 to             
US$940 per tonne to accommodate the stand-alone funding structure               
arranged for the divestment. A further 30% of an intended 60% of the            
projected zinc sales up to mid 2011 were hedged subsequent to year-end          
at prices ranging from US$2 098 to US$2 435 per tonne.                          
INDUSTRIAL MINERALS                                                             
Production at both the FerroAlloys plant and the Glen Douglas mine              
remained in line with the previous corresponding period. Net operating          
profit declined at the Glen Douglas mine by R3 million as a result of           
higher maintenance expenditure and lower offtake of higher premium              
metallurgical dolomite products by ArcelorMittal.                               
GROWTH OPPORTUNITIES                                                            
COAL                                                                            
Ramp-up of the GG6 project has reached 90% of the design capacity of            
750ktpa. In addition to supplementing semi-soft coking coal to                  
ArcelorMittal`s South African coking plants, the project contributes to         
alleviating the shortage of market coke for the ferro-alloy industry.           
A supply agreement for 45 years was awarded to Exxaro Coal by Eskom in          
March 2007 to supply 8,5Mtpa of power station coal from the Grootegeluk         
mine to Eskom`s new 2 400MW Medupi power station consisting of three            
generating units adjacent to the Matimba power station. Feasibility             
studies are underway to also supply the planned additional three                
generating units of Medupi which could increase the total coal supply           
from the Grootegeluk mine to the new power station to 14,6Mtpa.                 
Capital expenditure on the char project for the production of char for          
the ferro-alloy industry from a four retort facility at the Grootegeluk         
mine ramping up to 160ktpa in 2008, has been revised to R320 million            
from R296 million due to contractor skills shortages and scope changes.         
The completion of the feasibility study to investigate the viability of         
a market coke plant has been extended to 2008 to allow for more test            
work on the coking characteristics of the process. If viable, the plant         
will produce high quality market coke from semi-soft coking coal                
produced at Grootegeluk mine.                                                   
In May 2007 Exxaro was awarded 2,5Mtpa export entitlement through RBCT          
by means of a subscription process in addition to the existing 0,8Mtpa          
entitlement. Exxaro also purchased a further 1Mtpa export entitlement           
through RBCT from Billiton Energy Coal South Africa Limited for R212            
million, bringing the total export allocation to 4,3Mtpa. On completion         
of the RBCT Phase V expansion scheduled for the second quarter of 2009,         
Exxaro will receive a further 2Mtpa export entitlement through the South        
Dunes Coal Terminal Company, bringing the total entitlement to 6,3Mtpa.         
Construction of the beneficiation plant at Inyanda is progressing well          
with hot commissioning planned for the second quarter of 2008. The R269         
million Inyanda coal mine will produce up to 1,5Mtpa of product.                
The capital cost of the Mafube expansion project, in which Exxaro is a          
50:50 joint venture partner with Anglo Coal, is expected to be                  
approximately R1,9 billion on completion. Construction commenced in July        
2006 with the first coal to the washing plant delivered in January 2008         
and ramp-up to full capacity expected in seven months.                          
Mining of the Eerstelingsfontein reserves near Belfast to supply 1Mtpa          
power station coal to Eskom is targeted for 2008 on receipt of                  
environmental approvals. The feasibility study on the project has been          
completed and mining authorisation was received. In addition, expanded          
production of up to 2,4Mtpa from the Blesbok project at Belfast is              
currently underway to meet the increased local demand for power station         
coal.                                                                           
In terms of the 50:50 joint venture agreement between Exxaro and Anglo          
Coal Australia, exploration of the coking coal resource on the adjacent         
properties of Moranbah South and Grosvenor South in Queensland,                 
Australia is progressing according to schedule. Exploration in 2008 will        
focus on geophysical work to delineate potential long-wall mining               
resources. Moranbah South has the potential to produce about 3,5Mtpa of         
quality hard coking coal from underground long-wall mining for at least         
20 years.                                                                       
The Board has approved the development of the Diepspruit reserve at NCC         
with implementation planned for the third quarter of 2008, subject to           
regulatory approvals. The R136 million project will produce 1,3Mtpa run         
of mine coal for beneficiation at NCC to supply the export market.              
MINERAL SANDS                                                                   
The start of construction of the Fairbreeze mine, south of KZN Sands`           
existing Hillendale mine in KwaZulu-Natal, has been delayed to October          
2008 subject to the approval of mining rights. The water-use licence has        
been approved and production is planned to start in July 2010.                  
Feasibility studies on the Port Durnford project, located to the                
immediate south-west of Hillendale mine, are on track for completion by         
December 2008. The project, if viable, could potentially supply the             
current KZN Sands furnaces for over 25 years.                                   
The Toliara Sands project in south-western Madagascar comprises two             
exploration areas, Ranobe and Monombo-Marombe. Hand-auger drilling in           
the Monombo-Marombe area indicates resources capable of supplying long-         
term ilmenite feedstock to the Exxaro KZN Sands furnace complex. Further        
exploration drilling in this area is planned for 2008. Completion of the        
feasibility study for the Ranobe deposit is targeted for the end of             
2008.                                                                           
The feasibility study on the pigment plant expansion to 160ktpa at the          
Tiwest Kwinana facility was completed in the last quarter of 2007. A            
decision on implementation by Exxaro and its joint venture partner,             
Tronox Inc., is planned for the first half of 2008.                             
Bankable feasibility studies on the Dongara project, which forms part of        
the Tiwest joint venture, are ongoing. With a 20Mt reserve and 10% heavy        
minerals, the project will provide supplementary feedstock for Tiwest`s         
mineral separation plant and synthetic rutile facility. As a result of          
increased life expectancy at the Tiwest dry mine at Cooljarloo,                 
production at Dongara is planned to start in early 2011.                        
BASE METALS                                                                     
A feasibility study is currently being undertaken on the further                
expansion of the Chifeng refinery with a capacity increase in the order         
of 130ktpa. The outcome of this study is expected to be completed by mid-       
2008 after which Exxaro will review its participation in the expanded           
operation.                                                                      
ALLOYSTREAMTM                                                                   
The Furnace 1 feasibility study of the AlloyStreamT technology, which           
allows for the demonstration of this furnace`s beneficiation of                 
manganese ore, is planned for completion during the second half of 2008.        
The AlloyStream technology could also lend itself to the production of          
ferro-nickel for which test work and pilot campaigns are planned for            
2008.                                                                           
POWER CONSTRAINTS                                                               
It is considered unlikely that future production at the coal mines will         
be affected by Eskom`s load shedding/rationing programme. Most of the           
group`s coal operations supply some or all their production to Eskom`s          
power plants. However, both KZN Sands and Zincor have an agreement with         
the electricity utility which may result in some 10% of production being        
lost.                                                                           
The group supports the initiative contemplated by Eskom to introduce            
stability into the power plant fleet and electricity transmission grid          
and is committed to assisting Eskom in finding longer term solutions in         
terms of additional coal supply, and consistency and quality of coal            
supply. Exxaro is also examining various alternatives with regard to the        
conservation and use of electricity throughout its operations.                  
CONVERSION OF MINING RIGHTS                                                     
Exxaro is approaching the conversion of its old order mining rights to          
new order rights in two phases. It is firstly progressing the                   
applications which have been submitted for the conversion of the former         
Kumba Resources - associated rights, excluding iron ore. This will be           
followed by applications for the conversion of the former-Eyesizwe old          
order mining rights. The scheduled date for submission of the latter is         
April 2008.                                                                     
Exxaro held a workshop with the Department of Minerals and Energy (DME)         
in July 2007 as part of the conversion process to clarify and progress          
the applications for new order mining rights. In addition to the                
conversion applications, Exxaro also lodged applications for new order          
mining rights for mineral sands deposits at Fairbreeze C Extension,             
Braeburn, UVS and Braeburn Extension close to its existing Hillendale           
mine in KwaZulu-Natal, and coal reserves at Tshikondeni Goni and                
Leeuwpan Extension. The outcome of the applications is awaited.                 
CHANGES TO THE BOARD                                                            
Subsequent to year-end, Ms N Nyembezi-Heita has resigned from the Board         
with effect from 29 February 2008. The Board wishes to thank her for her        
services as director and chairperson of the Transformation,                     
Remuneration, Human Resources and Nomination Committee of the Board.            
OUTLOOK                                                                         
The acute shortage of skills in critical operational and project                
development positions poses a significant challenge to the group.               
Retention strategies and other programmes have been initiated to                
mitigate this risk.                                                             
Strong local and export demand for coal products at increased prices            
linked to higher sales volumes from the current project developments            
coming on stream, is expected to increase the profit contribution from          
the group`s commercial coal operations. The results of the mineral sands        
business are likely to be adversely affected by the planned reline shut         
of Furnace 2 at Empangeni, a continued strong Australian dollar and the         
mining of lower grade mineral sands deposits. The current softer trend          
in zinc metal prices is expected to persist. Continued buoyant iron ore         
market conditions should benefit the group in respect of its equity             
interest in SIOC. A weaker rand will positively impact on US dollar             
denominated revenue.                                                            
FINAL DIVIDEND                                                                  
The directors have declared a final dividend, dividend number 10 of 100         
cents per share in respect of the 2007 financial year. The dividend has         
been declared in South African currency and is payable to the                   
shareholders recorded in the books of the company at close of business          
on Friday, 14 March 2008.                                                       
In compliance with the electronic statement system of JSE Limited, the          
following dates are applicable:                                                 
Last date to trade cum dividend         Friday, 7 March 2008                    
Shares trade ex dividend                Monday, 10 March 2008                   
Record date                             Friday, 14 March 2008                   
Payment date                            Monday, 17 March 2008                   
Share certificates may not be dematerialised or rematerialised between          
10 March 2008 and 14 March 2008, both days inclusive.                           
On behalf of the Board                                                          
SA Nkosi                      DJ van Staden                                     
(Chief Executive Officer)     (Chief Financial Officer)                         
20 February 2008                                                                
Registered Office           Transfer Secretaries                                
Exxaro Resources Limited    Computershare Investor Services 2004                
Roger Dyason Road           (Pty) Limited                                       
Pretoria West               Ground Floor, 70 Marshall Street                    
0183                        Johannesburg, 2001                                  
                           PO Box 61051, Marshalltown, 2107                     
Tel no +27 12 307 5000                                                          
Fax no +27 12 307 4760                                                          
Directors: SA Nkosi (Chief Executive Officer)*, PM Baum,                        
JJ Geldenhuys, U Khumalo, MJ Kilbride*, Dr D Konar, VZ Mntambo,                 
RP Mohring, PKV Ncetezo, N Nyembezi-Heita, NL Sowazi,                           
DJ van Staden*, D Zihlangu                                                      
*Executive                                                                      
Company Secretary: MS Viljoen                                                   
Corporate Affairs and Investor Relations: Trevor Arran                          
(+27 12 307 3292)                                                               
Sponsor: JP Morgan (+27 11 507 0300)                                            
JSE share code: EXX                ADR code: EXXAY                              
Registration number: 2000/011076/06?ISIN code: ZAE000084992                     
If you have any queries regarding your shareholding in Exxaro Resources,        
please contact the Transfer Secretaries at +27 11 370 5000.                     
This report is available at www.exxaro.com                                      
20 February 2008                                                                
Date: 21/02/2008 07:00:01 Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department                             .                  
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howsoever arising, from the use of SENS or the use of, or reliance on,          
information disseminated through SENS.                                          



                                        
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