Trading statement for the year ended 31 December 2017 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") TRADING STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2017 Shareholders are advised that Kumba is currently finalising its financial results for the year ended 31 December 2017 (“the period”), which will be released on the Stock Exchange News Service (“SENS”) on or about 13 February 2018. In accordance with paragraph 3.4(b) of the JSE Limited Listings Requirements, shareholders are advised that headline earnings for the period are likely to increase to between R9,300 million and R9,985 million, with headline earnings per share (“HEPS”) likely to be between R29.13 and R31.27, an increase of between 7% and 15%. The increase in headline earnings is largely attributable to higher sales volumes on the back of improved operational performance as well as an increase in export iron ore prices. Basic earnings for the period are expected to increase to between R11,795 million and R12,660 million, with basic earnings per share (“EPS”) expected to be between R36.94 and R39.65, an increase of between 37% and 47%. The improved operational performance at Sishen mine, as a result of improved levels of production and operating efficiencies, as well as the recovery in the price outlook for the iron ore market, has necessitated an assessment of the recoverable amount of the Sishen mine. This has resulted in an impairment reversal relating to Sishen mine of R4.8 billion (pre-tax). The impairment reversal, net of tax and non-controlling interest, is R2.6 billion and will be included in basic earnings but excluded from headline earnings. More information will be provided in the Company’s financial results for the period to be released on SENS on or about 13 February 2018. Reported headline earnings and basic earnings for the prior comparative period (released on SENS on 14 February 2017) were R8,724 million and R8,621 million respectively, while reported HEPS and EPS for the comparative period were R27.30 and R26.98 respectively. The financial information on which this trading statement is based has not been reviewed or reported on by the Company’s external auditors. Pretoria 9 February 2018 Sponsor RAND MERCHANT BANK (A division of FirstRand Bank Limited) Date: 09/02/2018 01:56:00 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.