KEATON ENERGY HOLDINGS LIMITED - Statement

Statement

 Keaton Energy Holdings Limited
(Incorporated in the Republic of South Africa)
Registration number: 2006/011090/06
JSE share code: KEH ISIN ZAE000117420
(“Keaton Energy” or “KEH”)

STATEMENT

Keaton continues to follow due legal process in its attempts to resolve the illegal industrial
action by employees of Nasonti Mining (Pty) Limited (“Nasonti”) that included an illegal
sit-in at the group’s Vaalkrantz Colliery (“Vaalkrantz”) last week. Vaalkrantz is currently
held in group subsidiary Leeuw Mining & Exploration (Pty) Limited (“LME”).

Nasonti, a contractor to LME, employs all underground mine workers onsite at Vaalkrantz.
Keaton’s key concern was and remains the safety of its own personnel, that of other
contractors’ and the Nasonti employees. Community members who wished to lend support to
the Nasonti employees were peacefully withheld from site in the interest of their own
protection and wellbeing. Throughout the illegal industrial action by Nasonti employees,
another area of concern to Keaton was their personal wellbeing as they refused to exit the
underground to collect food and water which was offered by LME mine management.

On 9 February 2016 underground mining contractor Nasonti launched a s189A retrenchment
process, citing financial pressure, and halted all operations at Vaalkrantz. Nasonti applied
for voluntary liquidation, without informing LME before the process was completed.

On 29 February 2016, an uncertain number of Nasonti employees overpowered private mine
security and entered the mine via the belt road at the West Gus Adit, Vaalkrantz, demanding
payment of their outstanding salaries and retrenchment packages from Nasonti. LME mine
management initially made attempts to communicate with the employees in an effort to
peacefully resolve the situation, which was unsuccessful. After further illegal actions by the
Nasonti employees, resulting in damage to mine property, Keaton was forced to call on the
Public Order Police. LME at this point also alerted the Department of Mineral Resources
(“DMR”) and organised labour and requested their intervention.

On 1 March 2016 the Labour Court granted Keaton an Eviction Order, which was
subsequently served on the Nasonti employees on 2 March 2016 following their ongoing
rejection of continued attempts at peaceful resolution. The SAPS was represented onsite in
line with a second court order. In addition, Keaton arranged for additional private mine
security and riot teams from Bidvest Coin Security to maintain the peaceable status quo as far
as possible.

On the afternoon of 4 March 2016, after having presented a three-part resolution plan
proposed by LME mine management, Nasonti employees agreed to exit the underground
workings. No harm came to any person during the negotiation process. Production was
largely unaffected given that Nasonti had halted operations and underground mining was
temporarily on stop.
Notwithstanding the absence of any legal obligation on Keaton and LME, Keaton continues
to engage peacefully with all stakeholders in an attempt to facilitate resolution in good faith
and with the best interests of all in mind.

By order of the Board
Bryanston

8 March 2016

Sponsor
Investec Bank Limited

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