EXXARO RESOURCES LIMITED - Exxaro enters MOU with Eskom and Seriti to realise a Just Energy transition to a low carbon future in South Africa

Exxaro enters MOU with Eskom and Seriti to realise a Just Energy transition to a low carbon future in South Africa

EXXARO RESOURCES LIMITED
Incorporated in the Republic of South Africa
(Registration Number: 2000/011076/06)
JSE share code: EXX
ISIN code: ZAE000084992
ADR code: EXXAY
Bond Code: EXX04
ISIN No: ZAG000160326
Bond Code: EXX05
ISIN No: ZAG000160334
(“Exxaro” or the “Company”)

EXXARO ENTERS MEMORANDUM OF UNDERSTANDING WITH ESKOM AND SERITI IN ORDER
TO REALISE A JUST ENERGY TRANSITION TO A LOW CARBON FUTURE IN SOUTH AFRICA

Exxaro, Eskom Holdings SOC Ltd (“Eskom”) and Seriti Resources Holdings (“Seriti”) (the “Parties”)
have entered into a memorandum of understanding (“MOU”) in order to record their intent to pursue the
development of renewable energy solutions for the cost-plus mines supplying coal to Eskom (the
“Mines”).

The Parties have agreed to work towards achieving a just energy transition in South Africa by, inter alia,
participating in these renewable energy projects at the Mines and/or related Eskom sites, with the aim
of creating employment and re-skilling opportunities for communities in South Africa.

Exxaro, acting under the auspices of its subsidiary Cennergi Holdings Proprietary Limited (“Cennergi”),
and Seriti, under its newly formed subsidiary Seriti Green, shall investigate and propose suitable
renewable energy solutions and projects at their respective Mines and related Eskom sites in
consultation with Eskom.

Eskom agrees to support and assist Exxaro and Seriti in their implementation of sustainable renewable
energy solutions, as contemplated in the MOU, it being acknowledged that Eskom is, and will at all
times remain, subject to applicable procurement legislation.

The Parties acknowledge that the project/s undertaken by each of them should be implemented as soon
as possible and Eskom will use all reasonable endeavours to assist them to do so.

Under the MOU, Exxaro envisages achieving a reduction in Scope 2 CO2 emissions of up to 130,000
tonnes per annum at its Matla coal mine, which represents a saving of 70% of the greenhouse gases
with Matla at full production. Seriti envisages achieving a reduction in Scope 2 CO2 emissions of up to
350,000 tonnes per annum, around half of its current emissions of 700,000 tonnes of CO 2 equivalent
through the consumption of coal-fired electricity generation.

AK MARÉ, Inlexso (Pty) Ltd
ACTING GROUP COMPANY SECRETARY
25 October 2021

Lead Equity Sponsor and Debt Sponsor to Exxaro Resources Limited
Absa Corporate and Investment Bank, a division of Absa Bank Limited

Joint Equity Sponsor to Exxaro Resources Limited
Tamela Holdings Proprietary Limited

Date: 25-10-2021 07:05:00
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