Cautionary announcement and trading statement for the six-month period ending 30 June 2014 EXXARO RESOURCES LIMITED Incorporated in the Republic of South Africa (Registration Number: 2000/011076/06) JSE share code: EXX ISIN: ZAE000084992 ADR code: EXXAY (“Exxaro” or “the company”) CAUTIONARY ANNOUNCEMENT AND TRADING STATEMENT FOR THE SIX-MONTH PERIOD ENDING 30 JUNE 2014 Shareholders are advised that there will be an impairment of the company’s investment in the Mayoko Iron Ore Project (“Mayoko Project”), located in the Republic of the Congo (RoC). The Concept Study on the revised 12 million tonnes Mayoko Project was concluded during June 2014. However, to date, Exxaro has not been successful in concluding the definitive port and rail agreements for the Mayoko Project as was communicated to the market during the results announcement on 06 March 2014. As a result of these delays as well as higher project development costs following the outcome of the Concept Study, Exxaro believes that there will be an impairment of the company’s investment in the Mayoko Project which has resulted in the company having to write down the value of the investment. The impact of this write-down will be a pre-tax write- off of an amount up to the original acquisition cost of the company’s investment in the Mayoko Project as well as the project related costs capitalised to date amounting to R5 362 million in total. The exact quantum of the impairment loss will be communicated as soon as calculations have been finalised. Exxaro will actively liaise with the government of the RoC with regards to the future of the Mayoko Project. Accordingly, shareholders are advised to exercise caution when dealing in the company’s securities, until the full impact of the expected impairment loss has been disclosed. Shareholders are also advised that Exxaro will release its reviewed financial results for the six-month period ending 30 June 2014, on 21 August 2014. Consolidated net operating profit for the group as well as attributable earnings per share for the group for the six-month period ending 30 June 2014 are expected to show a decrease of more than 20% when compared with the corresponding period in 2013. A decrease in consolidated net operating profit for the group is expected when compared to the R917 million net operating profit (including discontinued operations) in the corresponding six-month period in 2013, mainly due to the pre-tax impairment loss of an amount up to a maximum of R5 362 million. The group is expected to record stable net operating profit from the coal operations as well as stable contributions from the equity-accounted investments, in line with the corresponding period in 2013. Headline earnings, which exclude the impact of any impairment, are expected to be in line with the R2 529 million recorded in the corresponding period in 2013. As Exxaro is not at this stage in a position to provide more specific guidance on the ranges of the impact on either attributable earnings per share or headline earnings per share, shareholders are advised that a further trading statement will be issued once Exxaro and its directors have obtained a reasonable degree of certainty relating to the expected financial results for the six-month period ending 30 June 2014. The forecast financial information on which this trading statement is based has not been reviewed, audited or reported on by Exxaro’s external auditors. This statement is issued in compliance with the Listings Requirements of the JSE Limited. A webcast and dial-in Teleconference Call regarding the details of this announcement will be held on Tuesday, 24 June 2014, at 12h00 (GMT+2:00): Internet Broadcast: http://www.exxaro.com/ Dial-in Teleconference numbers: - Republic of South Africa toll-free: 0800 200 648 - Johannesburg: 011 535 3600 or 010 201 6800 - Cape Town: 021 819 0900 - Australia toll-free: 1 800 350 100 - UK toll-free: 0808 162 4061 - USA and Canada toll-free: 1 855 481 5362 - Conference ID: Exxaro Teleconference Conference call document: will be used during the conference call and will be available on our website at Exxaro: http://www.exxaro.com/ Teleconference call replay: available via the Internet and telephone beginning on 25 June 2014, at 08h00 (GMT+2:00): until 30 June 2014. Internet replay: www.exxaro.com Play-back telephone numbers: - Republic of South Africa: 011 305 2030 - Australia toll-free: 1 800 091 250 - UK toll-free: 0 808 234 6771 - USA and Canada toll-free: 1 855 481 5363 - Other countries: +27 11 305 2030 - Playback Code: 31610# Editor’s note: Exxaro is one of the largest South African based diversified resources companies, with interests in the Coal, Titanium Dioxide and Iron ore commodities. www.exxaro.com Enquiries: Wim de Klerk Finance Director Tel: + 27 12 307 4848 Mobile: +27 82 652 5145 Email: wim.deklerk@exxaro.com Pretoria 24 June 2014 Sponsor Deutsche Securities (SA) Proprietary Limited Date: 24/06/2014 08:42:00 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. 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