Illawarra Metallurgical Coal Update South32 Limited (Incorporated in Australia under the Corporations Act 2001 (Cth)) (ACN 093 732 597) ASX, LSE, JSE Share Code: S32 ADR: SOUHY ISIN: AU000000S320 south32.net 10 May 2017 ILLAWARRA METALLURGICAL COAL UPDATE South32 Limited (ASX, JSE, LSE: S32; ADR: SOUHY) (South32) advises today that production at Illawarra Metallurgical Coal in FY17 is expected to be at least 10 per cent below prior guidance of 7.9Mt. On 7 May 2017 elevated gas concentrations were recorded at Appin Area 7. All personnel were safely evacuated. We have informed the New South Wales Department of Planning and Environment (Resources Regulator) of the incident and a prohibition notice has been issued. Production at the Area 7 and Area 9 longwalls, which form part of the broader Illawarra Metallurgical Coal operation, has been suspended until our investigation into the incident is completed. A revised production forecast for FY17 will be provided in due course, with the decrease expected to translate directly to sales given low inventory levels. A commensurate increase in unit costs is also anticipated. About South32 South32 is a globally diversified mining and metals company with high quality operations in Australia, Southern Africa and South America. Our purpose is to make a difference by developing natural resources, improving people’s lives now and for generations to come. We are trusted by our owners and partners to realise the potential of their resources. We have a simple strategy to maximise the potential of our assets and shareholder returns by optimising our existing operations, unlocking their potential and identifying new opportunities to compete for capital. Forward-looking statements This release contains forward-looking statements, including statements about production forecasts. These forward-looking statements reflect expectations at the date of this release; however, they are not guarantees or predictions of future performance. They involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results to differ materially from those expressed in the statements contained in this release. Readers are cautioned not to put undue reliance on forward-looking statements. Except as required by applicable laws or regulations, South32 Limited does not undertake to publicly update or review any forward looking statements, whether as a result of new information or future events. Past performance cannot be relied on as a guide to future performance. Registered Office: Level 35, 108 St Georges Terrace, Perth Western Australia 6000, Australia ABN 84 093 732 597 Registered in Australia FURTHER INFORMATION INVESTOR RELATIONS Alex Volante Rob Ward T +61 8 9324 9029 T +61 8 9324 9340 M +61 403 328 408 M +61 431 596 831 E Alex.Volante@south32.net E Robert.Ward@south32.net MEDIA RELATIONS Diana Wearing Smith Hayley Cardy T +61 8 9324 9198 T +61 8 9324 9008 M +61 436 482 290 M +61 409 448 288 E Diana.Smith@south32.net E Hayley.Cardy@south32.net Further information on South32 can be found at www.south32.net. JSE Sponsor: UBS South Africa (Pty) Ltd 10 May 2017 Date: 10/05/2017 10:05:00 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.