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EXX - Exxaro - Exxaro`s Inyanda Mine Boosts Coal Export Potential 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") EXXARO`S INYANDA MINE BOOSTS COAL EXPORT POTENTIAL The construction of the Exxaro Resources Limited (Exxaro) Inyanda coal mine near Witbank in Mpumalanga is progressing ahead of schedule and is on track to reach its production capacity of 1,5Mtpa by April 2008. At a ceremony held on-site today to mark the construction phase of the first new Exxaro mine since the launch of the group following the Kumba Resources empowerment transaction in November 2006, chief executive officer (designate) Sipho Nkosi said Inyanda is poised to play a key role in Exxaro`s objective to build a strong position in the export coal market. The Inyanda mine will produce A-grade thermal coal for the export market via Richards Bay Coal Terminal (RBCT). Exxaro is spending an estimated R269 million in developing this new open-pit operation. "We aim to capitalise on the buoyant global market for lucrative high quality thermal coal. Exxaro has been able to acquire additional competitively priced export entitlement through RBCT and at this stage we are signed up for a total entitlement of 6,3Mtpa by 2009. Our shareholding in RBCT is being matched by increasing production of export coal from our existing mines and from our new developments such as Inyanda and the Mafube joint venture with Anglo Coal," said Nkosi. He added that civil and plant construction started in February 2007 and that already run-of-mine from Inyanda is being transported 45km by road to Exxaro`s New Clydesdale mine for processing and export. Some 600 000 tonnes of coal is expected to be produced during the new mine`s pre-commissioning phase running until March 2008. "It is fitting that Inyanda is Exxaro`s first development to come on stream since the group`s launch as the mine originated as a joint venture between Kumba Resources and Eyesizwe Coal in 2002. The project was known as Kalbasfontein, and was one of the early interactions between the companies prior to the merger of their respective coal assets," said Nkosi. Development of the Inyanda mine follows the granting of a new order mining right from the Department of Minerals and Energy (DME), as well as the go- ahead of the Phase V expansion of RBCT, late in 2006. Mpumalanga`s MEC for economic development and planning, Craig Padayachee, said: "Exxaro is important to Mpumalanga`s economy. Mining is one of the biggest sectors in Mpumalanga that is able to create employment and opportunities for young and new entrepreneurs. On completion, the Inyanda mine will play a vital role in boosting the economy of the province and the country." Guests at the Inyanda ceremony today included Mr Padayachee; Debbie Ntombela, the DME`s chief director for the province; local community leaders and other key stakeholders. ends For photographs, please contact Hilton Atkinson (083 609 1452) Editor`s Notes: Exxaro is one of the largest South African-based diversified resources groups with interests in the coal, mineral sands, base metals, industrial minerals and iron ore commodities. The group`s coal business has a capacity of 45Mtpa, making it South Africa`s fourth largest coal producer. Exxaro expects its growth pipeline to enable the group to achieve a production target of 75Mtpa by 2014. The group is the largest supplier of coal to Eskom for power generation and is the country`s largest producer of metallurgical coals. Exxaro operates eight open cast and underground coal mines, six of which are situated in Mpumalanga. Exxaro was formed through the re-listing on the JSE Limited of Kumba Resources in November 2006 as part of the R50 billion empowerment transaction in which Kumba Resources` iron ore assets were unbundled and listed on the JSE Limited as Kumba Iron Ore, and the Kumba Resources` non- iron ore assets were merged with those of Eyesizwe Coal and re-listed as Exxaro. www.exxaro.com Enquiries: Trevor Arran Executive General Manager: Corporate Affairs & Investor Relations Tel: +27 (0) 12 307 3292 Mobile: +27 (0) 83 609 1444 6 July 2007 Sponsor: JPMorgan Date: 06/07/2007 13:00:01 Supplied by www.sharenet.co.za Produced by the JSE SENS Department.
