Updated trading statement for the year ended 31 December 2015 Kumba Iron Ore Limited A member of the Anglo American plc group (Incorporated in the Republic of South Africa) (Registration number 2005/015852/06) JSE Share code: KIO ISIN: ZAE000085346 (“Kumba” or "the Company") UPDATED TRADING STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2015 Shareholders are advised that Kumba is currently finalising its results for the year ended 31 December 2015 (“the period”), which will be released on SENS on 9 February 2016. In accordance with section 3.4 (b) of the JSE Limited Listings requirements and further to the trading statement released on SENS on 6 November 2015 in which the Company indicated that headline earnings per share (“HEPS”) and basic earnings per share (“EPS”) for the period would be more than 20% lower than the previous year ended 31 December 2014 (“the comparative period”); shareholders are advised that headline earnings for the period are likely to be between R3,674 million and R3,863 million, with basic EPS for the period expected to be between R440 million and R487 million. HEPS is likely to be between R11.45 and R12.05, a decrease of between 65% and 67%. Basic EPS is expected to be between R1.37 and R1.52, a decrease of between 95% and 96%. Reported headline earnings and basic earnings for the comparative period (released on SENS on 10 February 2015) were R11,006 million and R10,724 million respectively, while reported HEPS and EPS for the comparative period were R34.32 and R33.44 respectively. The decrease in earnings is largely attributable to the significant decrease in export iron ore prices. The deteriorating iron ore price environment has necessitated a reconfiguration of the Sishen pit to a lower cost shell. This, together with the significant impact of the weaker iron ore price outlook, has resulted in an impairment charge relating to Sishen mine of R6 billion (pre-tax). The impairment charge will be included in basic earnings but excluded from headline earnings. More information will be provided in the Company’s results to be released on SENS on 9 February 2016. Included in both HEPS and basic EPS is the derecognition of a deferred tax asset of R617 million, as well as a gain realised on a finance lease receivable of R232 million in the current period. Normalised earnings per share, excluding these items, are likely to be between R12.62 and R13.27, a decrease of between 61% and 63% on the normalised earnings per share of the comparative period of R34.32. The financial information, on which this trading statement is based, has not been reviewed or reported on by the group’s external auditors. Pretoria 2 February 2016 Sponsor RAND MERCHANT BANK (A division of FirstRand Bank Limited) Date: 02/02/2016 11:28:00 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.