Exxaro concludes disposal of new Clydesdale colliery EXXARO RESOURCES LIMITED Incorporated in the Republic of South Africa (Registration Number: 2000/011076/06) JSE share code: EXX ISIN code: ZAE000084992 ADR code: EXXAY (“Exxaro”) EXXARO CONCLUDES DISPOSAL OF NEW CLYDESDALE COLLIERY Diversified South African-based resources group Exxaro Resources Limited (“Exxaro”) announced today that it has concluded a sale of assets agreement (“the Agreement”) relating to its New Clydesdale Colliery (“NCC”) with Main Street 1201 Proprietary Limited (“Main Street”) (to be renamed Universal Coal Development VIII Proprietary Limited), Universal Coal plc (“Universal Coal”) and Universal Coal and Energy Holdings SA Proprietary Limited (“Transaction”). The Transaction is not a categorised transaction in terms of the JSE Limited Listings Requirements. In terms of the Agreement, once all conditions precedent to the Transaction have been fulfilled, a cash amount agreed will be paid to Exxaro. The most material condition involves a section 11 approval required in terms of the Mineral and Petroleum Resources Development Act (“MPRDA”) in respect of the transfer of the new order mining right from Exxaro Coal Mpumalanga (Pty) Ltd to Main Street. Further details will be released to the market in due course. A tender sale process started in April 2013 following a decision to dispose of NCC, based on an Exxaro review which concluded that the mine was not strategically aligned to the group’s strategy. NCC has been generating a negative-margin and the life of the mine has shortened beyond the profile that suits Exxaro’s investment profile. However, under the new ownership of Universal Coal further opportunities can be extracted through exploiting synergies with its contiguous operations. Following extensive consultation with the unions and employees of NCC, a successful section 189 process was concluded in terms of the Labour Relations Act. Of the 371 NCC employees, 296 have been redeployed within the Exxaro group and 40 were retrenched or retired. Exxaro has subsequently placed the mine on care and maintenance, with about 35 people employed for this purpose, until the fulfillment of all the conditions precedent and the Transaction becomes unconditional and the operation is handed over to the new owners. Universal Coal is an Australian Stock Exchange-listed junior coal mining company which owns the Roodekop reserve adjacent to NCC. Universal Coal has commenced with the development of the Kangala Coal Project which is the flagship asset to produce 2,1 million tonnes per annum of thermal coal in the first half of 2014. NCC is situated near eMalahleni in Mpumalanga province. In 2012 the mine produced 717kt of steam coal, primarily for the export market. Coal is mined using both open-pit and underground methods. The Transaction remains subject to the fulfillment, or to the extent possible, the waiver of suspensive conditions of transactions of this nature such as the Competition Commission approval and the Ministerial consent in terms of section 11 of the MPRDA. Editor’s Note: Exxaro is one of the largest South African-based diversified resources groups, with interests in the coal, mineral sands, iron ore and energy markets. www.exxaro.com Enquiries: Mzila Mthenjane Executive Head: Strategy & Corporate Affairs Tel: +27 12 307 4481 Mobile: +27 83 417 6375 Email: mzila.mthenjane@exxaro.com Pretoria 3 February 2014 Sponsor Deutsche Securities (SA) Proprietary Limited Date: 03/02/2014 05:18:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.