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SIBANYE GOLD LIMITED - Sibanye-Stillwater declares Mineral Resources and Mineral Reserves as at 31 December 2017

Release Date: 19/02/2018 13:15
Code(s): SGL     PDF:  
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Sibanye-Stillwater declares Mineral Resources and Mineral Reserves as at 31 December 2017

Sibanye Gold Limited
Trading as Sibanye-Stillwater
Incorporated in the Republic of South Africa
Registration number 2002/031431/06
Share code: SGL
ISIN – ZAE000173951
Issuer code: SGL
(“Sibanye-Stillwater” or “the Group” or “the Company”)


Sibanye-Stillwater declares Mineral Resources and Mineral Reserves as at 31
December 2017

Johannesburg, 19 February 2018. Sibanye-Stillwater (Tickers JSE: SGL and NYSE: SBGL)
is pleased to report updated Mineral Resources and Mineral Reserves, as at 31
December 2017, including 2E Platinum Group Metals (PGM) Mineral Reserves and
Resources for the United States region (US region) following the acquisition of
Stillwater in May 2017.

Salient points

-   SA Gold operations
       - Total gold Mineral Reserves of 25.737 million ounces (Moz) declined by
          2.957Moz (10%) due to:
             - Depletion of 1.457Moz due to mining activities during 2017, mitigated
                by the addition of 1.882Moz gold Mineral Reserves from successful
                exploration of secondary reefs and white areas (primarily at Kloof and
                Driefontein)
             - The cessation of underground mining at Cooke 1,2 & 3, resulting in the
                exclusion of 0.752Moz
             - The reduction of gold Mineral Reserves at the Beatrix 4 Shaft, due to
                a revised mine plan and increase in pay limit, resulted in 1.659Moz
                being excluded. This exclusion includes the Beisa project
             - A further reduction of 0.971Moz due to technical factors, including a
                change in Mine Call Factor, Tail-end Management and increased pay
                limits
       - Total gold Mineral Resources declined by 16.924Moz to 85.111Moz. The decrease
          is primarily due to increased pay limits at the Cooke and Beatrix West
          operations

-   SA PGM operations
       -Total 4E PGM Mineral Reserves declined by 4% to 22.358Moz mainly due to:
             - Depletion of 1.500Moz due to mining activities during 2017.
             - A revision in the methodology of determining geological losses, by
                calibrating against actual historical losses, resulted in a decrease
                in the overall estimated losses applied to the SA PGM Operations. This
                resulted in an increase of 2.077Moz in Reserves.
             - Mineral Reserves at Siphumelele Mine declined by 0.691Moz as a result
                of the deferral of the UG2 expansion project. This project will be
                reviewed subject to an improving economic environment.
             - A 0.752Moz decrease due to the removal of sub-economic ounces at the
                end of the life of mine.
             - Attributable PGM Mineral Reserves at Mimosa increased by 20% to
                2.030Moz following a successful technical and economic valuation of a
                part of the South Hill Orebody.
       - Total 4E PGM Mineral Resources declined marginally to 100.175Moz


                                                                                     1
-     US PGM operations
         - The acquisition of Stillwater in May 2017, increased the Company’s 2E PGM
            Mineral Reserves by 21.903Moz and 2E PGM Mineral Resources by 80.463Moz
            (2E PGM) with an average Mineral Reserve grade of 16.3g/t


This Mineral Reserves and Mineral Resources declaration represents a condensed and
consolidated summary of the full Sibanye-Stillwater Mineral Resources and Mineral
Reserves declaration available in the Group Mineral Resource and Mineral Reserve
Report, which will be published on 29 March 2018 and will be available at
www.sibanyestillwater.com

In accordance with US Securities and Exchange Commission (SEC) guidelines and
Sibanye-Stillwater reporting standards, approximate three-year average, rolling,
historical commodity prices are assumed for the calculation of Mineral Reserves and
Resources. An average exchange rate of R13.05/US$ and the following commodity prices
were used:


                   Precious metals                       Assumed 2018 prices based on 3 year average
                                                           USD/oz             ZAR/oz           ZAR/kg
    Gold                                                    1,218             15,895          511,033
    Platinum                                               1,092              14,251          458,167
    Palladium                                               704                9,187          295,375
    Rhodium                                                 901               11,758          378,030
    Iridium                                                 575                7,504          241,251
    Ruthenium                                                46                 600              19,300


                    Base minerals
                                                                              USD/lb             ZAR/kg
    Uranium*                                                                    42                1,208

                    Base minerals
                                                                             USD/tonne       ZAR/tonne
    Nickel                                                                     12,185         159,014
 Copper                                                                        5,614             73,263
*Long term contract prices used

Summarised Group Mineral Resources and Reserve Estimate at 31 December 2017

                   Gold Resource and Reserve Estimates as at 31 December 2017


                                     Mineral Resources                           Mineral Reserves
                                                            31 Dec                                   31 Dec
                                31 Dec 2017                  2016           31 Dec 2017               2016
                       Tonnes    Grade      Gold             Gold    Tonnes    Grade    Gold          Gold
    Gold Operations     (Mt)     (g/t)      (Moz)           (Moz)     (Mt)     (g/t)    (Moz)        (Moz)

    SA Region
    Beatrix
    underground*        45.5        5.6       8.249         12.729    20.1        3.2    2.086       3.723
    Beatrix -
    surface              3.7        0.3       0.041         0.052      3.7        0.3    0.041       0.052


                                                                                                              2
 Cooke –
 underground**        10.7      11.8      4.039      13.837                                   0.826

 Cooke – surface       5.7      0.3       0.059       0.047       5.7      0.3     0.059      0.047
 Driefontein –
 underground          50.7      11.2      18.337     17.684      34.8      6.2     6.980      6.851
 Driefontein –
 surface               1.1      0.5       0.019       0.076       1.1      0.5     0.019      0.076
 Kloof –
 underground          70.4      13.6      30.715     32.361      29.7      6.5     6.189      6.450

 Kloof – surface     11.3      0.5       0.192       0.200      11.3      0.5      0.192     0.200
 Total Gold
 Operations          199.1     9.6      61.651       76.985     106.4     4.5     15.565    18.224
 *The Beatrix Mineral Reserve and Resource, was impacted by the increased pay limit at Beatrix
 West, resulting in a decrease in the Mineral Reserves of the Beatrix West operations and Beisa
 Project and decrease in Mineral Resources at Beatrix West
 ** The Cooke Underground Resources reduced due to an increase in the Pay
 Limit, as a result of higher unit costs associated with shafts being placed on
 care and maintenance
                    Tonnes    Grade      Gold         Gold     Tonnes    Grade     Gold       Gold
 Gold Projects       (Mt)     (g/t)      (Moz)       (Moz)      (Mt)     (g/t)     (Moz)     (Moz)

 SA Region

 Beisa North*                                         1.619

 Bloemhoek            28.3      4.7       4.297       4.297

 Burnstone            64.6      4.3       9.015       8.890      14.8      4.1     1.934      2.137
 De Bron
 Merriespruit         28.3      4.4       4.022       4.022      15.4      4.3     2.112      2.112
 WRTRP - surface
 tailings**           670.8     0.3       6.126       6.222      670.8     0.3     6.126      6.222

 Total SA Region      792.0     0.9       23.460     25.050      701.0     0.5     10.171    10.470

 US Region ***

 Altar ****          2,614.0    0.1       6.321

 Total US Region     2,614.0    0.1       6.321

 Total Projects      3 406.0    0.3       29.781     25.050      701.0     0.5     10.171    10.470



 Total Gold          3,605.1    0.8       91.432     102.035     807.4     1.0     25.737    28.694

* Beisa North has been excluded from Mineral Resources due to the expiry of prospecting licenses
**    As part of the proposed transaction  with DRDGOLD Limited (refer to
https://www.sibanyestillwater.com/investors/transactions/drdgold), selected assets (comprising gold
Mineral Reserves and Resources of 3.881Moz) from the West Rand Tailings Retreatment Project (WRTRP)
will be sold to DRDGOLD subject to all conditions of the transactions being met.
*** US operations were acquired in May 2017 and therefore no comparative information has been disclosed
**** Altar is a Copper-gold exploration project in Argentina


                  PGM Resource and Reserve Estimates as at 31 December 2017


                                 Mineral Resources                        Mineral Reserves
                                                     31 Dec                                  31 Dec
                               31 Dec 2017            2016             31 Dec 2017            2016
                     Tonnes     Grade                           Tonnes    Grade
 PGM Operations       (Mt)      (g/t)      (Moz)      (Moz)      (Mt)     (g/t)    (Moz)      (Moz)


                                                                                                      3
SA Region
Kroondal-
underground (50%
attributable)
(4E)                  49.3       3.1        4.879         4.926        21.9      2.6       1.804     2.291
Blue Ridge (50%
attributable)
(4E)                  23.1       3.3        2.430         2.430
Rustenburg -
underground (4E)      512.6      5.0        83.209        83.987      127.6      3.8      15.706     16.066
Rustenburg -
surface (4E)          81.9       1.1        2.818         3.140        81.9      1.1       2.818     3.140
Mimosa (50%
Attributable)
(4E)                  59.0       3.6        6.839         7.045        18.1      3.5       2.030     1.689

Total SA Region       725.9      4.3       100.175       101.528      249.4      2.8      22.358     23.186

US Region*

Stillwater (2E)       72.8      18.0        42.144                     17.8      20.2     11.519
East Boulder
(2E)                  76.4      15.6        38.319                     24.0      13.4     10.384

Total US Region       149.2     16.8        80.463                     41.8      16.3     21.903

Total Operations      875.0      6.4       180.639       101.528      291.2      4.7      44.261     23.186
*Resources and Reserves for the US region were estimated on July 31, 2017, please refer to the CPR
available on https://www.sibanyestillwater.com/investors/documents-circulars. Mineral Resources
and Mineral Reserves have not been re-estimated as at 31 December 2017, however mining depletion
for the period from August to December 2017, has been included in the December 2017 estimates

                     Tonnes     Grade                                 Tonnes    Grade
PGM Projects          (Mt)      (g/t)       (Moz)         (Moz)        (Mt)     (g/t)      (Moz)     (Moz)

SA Region

Millenium (4E)*                                           1.720

Vygenhoek (4E)         1.4       5.1        0.230         0.230
Sheba's Ridge
(4E)*                                                     7.100

Zondernaam (4E)       77.4       6.4        15.900        15.900
Hoedspruit
(4E)**                32.6       5.5        5.790

Total SA Region       111.4      6.1        21.920        24.950

US Region

Marathon (2E)         151.7      0.8        3.982

Total US Region     151.7     0.8       3.982
*The Resources at Millenium and Sheba’s ridge are omitted for 2017 as the mineral title has
expired
** The Mineral Resources at Hoedspruit have been included in the 2017 declaration following a
successful appeal to the DMR regarding the award of the prospecting right.

Total SA PGM
operations and
projects              837.2      4.5       122.095       126.478      249.4      2.8      22.358     23.186
Total US PGM
operations and
projects              300.9      8.7        84.447                     41.8      16.3     21.903     21.198




                                                                                                              4
Uranium Resource and Reserve Estimate as at 31 December 2017


                                   Mineral Resources                               Mineral Reserves

                                                                                                        31 Dec
                                31 Dec 2017              31 Dec 2016             31 Dec 2017             2016
                      Tonnes      Grade         U3O8         U3O8        Tonnes    Grade        U3O8      U3O8
                       (Mt)       (kg/t)       (Mlb)        (Mlb)         (Mt)     (kg/t)      (Mlb)     (Mlb)
 Uranium Operations

 SA Region

 Beatrix (Beisa)       11.4        1.074      26.968       26.968                                       16.060

 Total Operations      11.4        1.074      26.968       26.968                                       16.060



                      Tonnes      Grade         U3O8         U3O8        Tonnes    Grade        U3O8      U3O8
                       (Mt)       (kg/t)       (Mlb)        (Mlb)         (Mt)     (kg/t)      (Mlb)     (Mlb)
 Uranium Projects

 SA Region

 Beisa North                                               35.373
 WRTRP - surface
 tailings***           670.8       0.065      96.083       97.166        670.8     0.065      96.083    97.166

 Total Projects        670.8       0.065      96.083       132.539       670.8     0.065      96.083    97.166



 Total Uranium         682.2       0.082      123.051      159.507       670.8     0.065      96.083    113.226


***    As part of the proposed transaction with DRDGOLD Limited (refer to
https://www.sibanyestillwater.com/investors/transactions/drdgold), selected assets (comprising uranium
reserves and resources of 44.359Mlb) from the West Rand Tailings Retreatment Project (WRTRP) will be
vended into DRDGOLD when all the conditions of the transactions are met

Copper Resource and Reserve Estimate as at 31 December 2017

                                  Mineral Resources                               Mineral Reserves
                                                          31 Dec                                         31 Dec
                                31 Dec 2017                2016                 31 Dec 2017               2016
                       Tonnes      Grade       Copper     Copper       Tonnes      Grade       Copper    Copper
 Copper Projects        (Mt)        (%)        (Mlb)       (Mlb)        (Mt)        (%)         (Mlb)     (Mlb)

 US Region
 Altar                2,614.0      0.311      17,931.0

 Marathon              151.7       0.220       730.1


 Total Projects       2,765.7      0.306      18,661.1



                                Mineral Reserve reconciliations

GOLD OPERATIONS

SA GOLD OPERATIONS
 Factors                                                                                    Gold (Moz)

                                                                                                                  5
 31 December 2016                                                                        28.694
 2017 depletion                                                                          (1.457)
 Inclusions                                                                              1.882
 White Areas1                                                                            1.503
 Secondary Reefs2                                                                        0.379
 Exclusions/reductions:                                                                  (3.382)
 Closure of Cooke underground                                                            (0.752)
 Revised mine plan and increased pay limit at Beatrix West (including Beisa)             (1.659)
 Technical Factors3                                                                      (0.971)
 31 December 2017                                                                        25.737
Rounding off of figures may result in minor computational discrepancies. Where this happens, it is not deemed
significant

1 Additional areas identified for mining through exploration and underground investigations, primarily at

Driefontein 4 Shaft, Driefontein 8 Shaft and Kloof 8 Shaft
2 The Carbon Leader at Driefontein 8 Shaft and the Kloof Reef at Kloof 8 Shaft

3 Primarily pay limits, tail management from the Life of Mine profiles, and Mine Call Factor adjustments




PGM OPERATIONS

SA PGM OPERATIONS
 Factors                                                                                 4E PGM(Moz)
 31 December 2016                                                                        23.186
 2017 depletion                                                                          (1.500)
 Inclusions
 Evaluation                                                                              0.027
 Geological   Changes1                                                                   2.077
 Boundary Changes                                                                        0.081
 Exclusions/reductions:
 Economic Valuation2                                                                     (0.752)
 Technical Factors3                                                                      (0.757)
 31 December 2017                                                                        22.362
Rounding off of figures may result in minor computational discrepancies. Where this happens, it is not deemed
significant
1 Decrease in geological losses following the revision of the geological losses methodology applied to the

Kroondal and Rustenburg Operations. The revision aligned estimated and actual geological losses.
2 Removal of sub-economic ounces at the end of the life of mine by tail cutting

3 Reserves in the UG2 section were downgraded back into Resources as a result of the deferment of the UG2 reef

expansion project at Siphumelele Mine (0.7Moz)




US PGM OPERATIONS
 Factors                                                                                 2E PGM(Moz)




 31 July 20171                                                                           22.216

                                                                                                                 6
    Depletion August 2017 to December 2017                                                 (0.313)
    31 December 2017                                                                       21.903
Rounding off of figures may result in minor computational discrepancies. Where this happens, it is not deemed
significant
1
    Based on the competent persons report compiled by The Mineral Corporation as at 31 July 2017 available on

https://www.sibanyestillwater.com/investors/documents-circulars

SA URANIUM
    Factors                                                                                U3O8 (Mlb)
    31 December 2016                                                                       113.226
    Exclusions/reductions:                                                                 (16.060)
    Revised mine plan and increased pay limit at Beatrix West (including Beisa)            (16.060)
    31 December 2017                                                                       96.083
Rounding off of figures may result in minor computational discrepancies. Where this happens, it is not deemed
significant


Corporate governance

Sibanye-Stillwater reports its Mineral Resources and Mineral Reserves in accordance with the
SAMREC Code, the updated Section 12 of the JSE Listings Requirements and the SEC Industry
Guide 7, which is aligned with the guiding principles of SOX. Both Altar and Marathon resources
are compliant with NI 43-101 guidelines. In accordance with SEC requirements, Reserves are based
on three year average, trailing, commodity prices.

Guided by a commitment to best practice corporate governance, the statement has been reviewed
by each Region’s Technical Services.     For the Southern African Platinum Operations, the
Mineral Reserves and Mineral Resources was independently reviewed by Mineral Corporation
Consultancy Proprietary Ltd, and has been found to be compliant with the relevant codes with
no material shortcomings. The South African Gold Operations was subjected to an external
audit during 2016.     The United States Region was audited by The Mineral Corporation
Consultancy Proprietary Ltd, and has been found to be compliant with the relevant codes with
no material shortcomings.

The Mineral Resources and Mineral Reserves are estimates at a particular date, and are
affected by fluctuations in mineral prices, the Rand-US dollar currency exchange rate,
operating costs, mining permits, changes in legislation and operating factors. Although all
permits may not be finalised and in place at the time of reporting, there is no reason to
expect that these will not be granted. However, the length of the approval process for such
permits may have an impact on the schedules stated.

All statement figures are managed by Sibanye-Stillwater with the exception of those for
Mimosa. Mineral Resources are reported inclusive of Mineral Reserves, and production volumes
are reported in metric tonnes (t).

Gold and uranium estimates are reported separately from each other, therefore no gold
equivalents are stated to avoid potential anomalies as a result of year-on-year metal price
differentials. The Southern African PGM Operations statement are reported as 4E PGM, which
consists of platinum, palladium, rhodium and gold. Individual proportions of the 4E PGM are
determined via prill splits as determined from the assays. The United States Region’s PGM
Operations statement consists of platinum reported as 2E PGM, which consists of palladium
and platinum.

All financial models used to determine Mineral Reserves are based on current tax regulations
at 31 December 2017.

For the Southern African Gold Operations, the lead competent person designated in terms of
the SAMREC Code, with responsibility for the consolidation and reporting of the SA Gold
Operations Mineral Resources and Mineral Reserves, and for overall regulatory compliance of
these figures, is Gerhard Janse van Vuuren, who gave his consent for the disclosure of the

                                                                                                                7
2017 Mineral Resources and Mineral Reserves Statement. Gerhard [GDE (Mining Eng), MBA, MSCC
and B.Tech (MRM)] is registered with SAIMM (706705) and has 30 years’ experience relative
to the type and style of mineral deposit under consideration.

For the Southern African Platinum Operations, the lead competent person designated in terms
of the SAMREC Code, who takes responsibility for the consolidation and reporting of the SA
Platinum Operations Mineral Resources and Mineral Reserves, and for the overall regulatory
compliance of these figures, is Andrew Brown, who gave his consent for the disclosure of the
2017 Mineral Resources and Mineral Reserves Statement. Andrew [M.Sc Mining Eng] is registered
with SAIMM (705060) and has 33 years’ experience relative to the type and style of mineral
deposit under consideration.

For the United States Region, the lead competent person designated in terms of the SAMREC
Code, who takes responsibility for the consolidation and reporting of the Stillwater and
East Boulder Mineral Resources and Mineral Reserves, and for the overall regulatory
compliance of these figures, is Brent LaMoure, who gave his consent for the disclosure of
the 2017 Mineral Resources and Mineral Reserves Statement. Brent [B.Sc Mining Eng] is
registered with the Mining and Metallurgical Society of America (01363QP) and has 22 years’
experience relative to the type and style of mineral deposit under consideration. For the
foreign project Resource estimation, the competent person is Stanford Foy. Stan is registered
with the Society for Mining, Metallurgy and Exploration Inc. (4140727RM) and has 27 years’
experience relative to the type and style of mineral deposit under consideration.



Investor relations contact:

James Wellsted
Head of Investor Relations
Tel: +27 (0) 83 453 4014
Email: ir@sibanyestillwater.com
Sponsor: J.P. Morgan Equities South Africa Proprietary Limited

Ends.


FORWARD LOOKING STATEMENTS
This announcement includes “forward-looking statements” within the meaning of the
“safe harbour” provisions of the United States Private Securities Litigation Reform
Act of 1995. Forward-looking statements may be identified by the use of words such
as “target”, “will”, “forecast”, “expect”, “potential”, “intend”, “estimate”,
“anticipate”, “can” and other similar expressions that predict or indicate future
events or trends or that are not statements of historical matters. The forward-
looking statements set out in this announcement involve a number of known and unknown
risks, uncertainties and other factors, many of which are difficult to predict and
generally beyond the control of Sibanye-Stillwater, that could cause Sibanye-
Stillwater’s actual results and outcomes to be materially different from historical
results or from any future results expressed or implied by such forward-looking
statements. These forward-looking statements speak only as of the date of this
announcement. Sibanye-Stillwater undertakes no obligation to update publicly or
release any revisions to these forward-looking statements to reflect events or
circumstances after the date of this announcement or to reflect the occurrence of
unanticipated events, save as required by applicable law.




                                                                                            8

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