EXX - Update on Exxaro's disposal of its 24.4% stake in Black Mountain Mining 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”) UPDATE ON EXXARO’S DISPOSAL OF ITS 24.4% STAKE IN BLACK MOUNTAIN MINING Exxaro, the diversified South African-based resources group , previously concluded that zinc mining was not strategically aligned to the group’s long-term objectives based on a review of its portfolio of assets. Exxaro therefore initiated a sales process for the disposal of its 24.4% interest in Black Mountain Mining Proprietary Limited (“BMM”) to the Industrial Development Corporation (“IDC”). Regretfully, the sale will no longer proceed as envisaged due to a change in the strategic priorities of the IDC, given the prevailing global and domestic economic conditions. The conditions within which the IDC originally considered the purchase of the shares have changed and informed a review of the transaction. These include the immediate development impact of the proposed transaction and the fact that the IDC's funding proceeds will not be directly utilised to yield the developmental objectives in the target company. In addition, given the shifting dynamics in the local economic landscape, the IDC is reprioritising its capital allocation to ensure that it is geared to actively support downstream opportunities to maximise potential job creation and retention opportunities. Exxaro will continue to evaluate its options in relation to the BMM investment as part of its strategic review. Editor’s Note: Exxaro is one of the largest South African-based diversified resources groups, with interests in coal, mineral sands, iron ore and energy markets. www.exxaro.com 28 December 2020 SE Van Loggerenberg Group Company Secretary & Legal Pretoria Lead Sponsor to Exxaro Resources Limited Absa Corporate and Investment Bank, a division of Absa Bank Limited Joint Sponsor to Exxaro Resources Limited Tamela Holdings Proprietary Limited Date: 28-12-2020 11:32:00 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.