EXXARO RESOURCES LIMITED - EXX: Trading Statement For The Year Ended 31 December 2017

EXX: Trading Statement For The Year Ended
 31 December 2017

EXXARO RESOURCES LIMITED
Incorporated in the Republic of South Africa
(Registration Number: 2000/011076/06)
JSE share code: EXX
ISIN: ZAE000084992
ADR code: EXXAY
(“Exxaro” or the “Company” or the “Group”)

TRADING STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2017

Shareholders are advised that Exxaro and its directors now have reasonable certainty
relating to the expected financial results of Exxaro for the year ended 31 December 2017.

During 2017, Exxaro’s financial results have been impacted by once-off items, these being
mainly costs relating to the implementation of its Replacement BEE Transaction as well as
gains on the partial disposal of its shareholding in Tronox Limited (“Tronox”). Exxaro is of the
view that these various once-off items should be excluded from the calculation of earnings
and attributable earnings per share, in order to enable a more meaningful comparison to be
made to the prior year 31 December 2016 results. This trading statement therefore sets out
the expected financial results including and excluding these once-off items.

Whilst the coal business benefited from higher selling prices and volumes, the group’s
results were impacted by once off items, of which the major items are:
    1. Costs associated with the structuring and implementation of the Replacement BEE
        Transaction;
    2. Exxaro’s post-tax share of Tronox's loss on disposal of its Alkali chemicals business;
    3. Gain on disposal of Exxaro’s partial investment in Tronox; and
    4. Exxaro’s post-tax share of Sishen Iron Ore Company Proprietary Limited’s reversal of
        impairment of property, plant and equipment.
Collectively the “Once-Off Items”.

Therefore, Exxaro’s headline earnings per share (HEPS) for the year ended
31 December 2017 are expected to be between R76 million and R89 million (approximating
24 cents to 29 cents per share) compared to 1 302 cents per share reported for the year
ended 31 December 2016. Core HEPS1 are expected to increase by between 30% and 42%
compared to the prior year HEPS of 1 457 cents per share excluding the Once-Off Items.

Attributable earnings per share (AEPS) for the year ended 31 December 2017 are expected
to decrease by between 6% and 15% (approximately between 1 360 cents per share and
1 500 cents per share) compared to AEPS of 1 600 cents for the year ended
31 December 2016. For the sake of clarity, Core AEPS are the same as Core HEPS.

Core headline earnings are calculated by adjusting headline earnings with Once-Off Items. However, these are
not defined terms under IFRS and may not be comparable with similarly titled measures reported by other
companies. The afore-mentioned adjustments are the responsibility of the directors of Exxaro. The adjustments
have been prepared for illustrative purposes only and due to their nature, may not fairly present Exxaro´s
financial position, changes in equity, results of operations or cash flows.

Shareholders are advised that Exxaro will release its reviewed financial results for the year
ended 31 December 2017 on 8 March 2018.

The forecast financial information on which this trading statement is based has not been
reviewed, audited nor reported on by Exxaro’s external auditors.
This statement is issued in compliance with the JSE Listings Requirements.

Editor’s note:
Exxaro is one of the largest South African based diversified resources companies, with
interests in the coal, titanium dioxide and chemicals, iron ore and renewable energy
commodities. www.exxaro.com

Enquiries:
Mzila Mthenjane, Executive head: Stakeholder Affairs
Tel: + 27 12 307 7393
Mobile: +27 83 417 6375
Email: Mzila.mthenjane@exxaro.com

Saret van Loggerenberg
Group Company Secretary and Legal

Pretoria
2 March 2018

Sponsor:
Absa Bank Limited (acting through its Corporate and Investment Bank Division).

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