INVESTOR SITE VISIT – WONDERKOP SMELTER 6 MAY 2016

Presented by Zanele Matlala (CEO) and Amanda Magro (Wonderkop – General Works Manager) Presented by Zanele Matlala (CEO) and Kajal Bissessor (FD) Legal notice/disclaimer

This presentation is published solely for informational purposes and does not constitute investment, legal, tax or other advice nor is it to be relied upon in making an investment decision. Information contained herein has been taken from sources considered by Merafe Resources to be reliable but no warranty is given that such information is accurate or complete and it should not be relied upon as such. Views and opinions expressed in this presentation reflect the judgment of Merafe Resources as of the date of this presentation and are subject to change. Merafe Resources will not be responsible for any liability for loss or damage of any kind which arises, directly or indirectly, and is caused by the use of any of the information provided. The entire presentation is subject to copyright with all rights reserved. The information contained herein shall not be published, rewritten for broadcast or publication or redistributed in any medium without prior written consent from Merafe Resources. Prospective investors should take appropriate investment advice and inform themselves as to applicable legal requirements, exchange control regulations and tax considerations in the countries of their citizenship, residence or domicile. The distribution of the information contained in this presentation in certain countries may be restricted by law and persons who access it are required to inform themselves and to comply with any such restrictions. This information does not constitute an offer or solicitation in any jurisdiction in which such an offer or solicitation is not authorised or to any person to whom it is unlawful to make such an offer or solicitation. Past performance is not a guarantee of future performance. The price of shares can go down as well as up and may be affected by change in exchange rates, market conditions and risks associated with a mining venture.

2 Merafe Resources Ltd | Investor Presentation – Wonderkop Site Visit 6 May 2016 PROGRAMME

1. Depart Lanseria 08h30

2. Arrive Wonderkop Smelter 10h30

3. Welcome by CEO, Zanele Matlala

4. Presentation and Safety Video by Amanda Magro

5. Guests Change in Safety Apparel

6. Site Visit 11h00

7. Lunch 13h00

8. Depart for Lanseria 14h15

3 Merafe Resources Ltd | Investor Presentation – Wonderkop Site Visit 6 May 2016 TABLE OF CONTENTS

1. Overview of the Glencore – Merafe Venture

2. Historical projects

3. Challenges facing the SA Ferrochrome Industry

4. Comparison of Smelting Technologies

5. Our Marketing Agents Offering

6. Labour Relations

7. Overview of the Wonderkop Smelter and Bokamoso Pelletising and Sintering Plant

4 Merafe Resources Ltd | Investor Presentation – Wonderkop Site Visit 6 May 2016 Glencore – Merafe Chrome Venture

Smelters Ports Mines Maputo ● Lydenburg ❶ ❻ Design Capacity: 396kt FeCr Richards Bay ● Processing Capacity: 1,730kt Furnaces: 3 Premus and 1 semi- Production Capacity: 967kt closed conventional Durban ●

Waterval West ❼ Lion Ferrochrome (I & II) ❷ Processing Capacity: 480kt Design Capacity: 720kt FeCr Production Capacity: 240kt ❷❾ Furnaces: 4 Premus ⓫ ❹ ⓬❶ Lion II commissioned during H1 ❺ ❸ ❿ UG2 Plants – West ❽ ❼ ❽ ❻ Production Capacity: 2,220kt Wonderkop ❸ ● Design Capacity: 553kt FeCr Thorncliffe ❾ Furnaces: 6 semi-closed ❿ conventional with Bokamoso Processing Capacity: 1,380kt Outokumpu pelletising Production Capacity: 871kt

● Helena ❿ Boshoek (PSV) ❹ Processing Capacity: 1,380kt Design Capacity: 240kt FeCr ● Production Capacity: 814kt Furnaces : 2 Outokumpu closed with pelletising Magareng ⓫ ❺ Processing Capacity: 1,380kt Production Capacity: 731kt Design Capacity: 430 kt FeCr Furnaces: 6 semi-closed conventional with Tswelopele UG2 Plants – East ⓬ Outokumpu pelletising Production Capacity: 133kt

Merafe Resources Ltd | Investor Presentation – Wonderkop Site Visit 6 May 2016 5 Diversified Operations • Geographically – 22 furnaces – 8 mines (ore and quartzite) – 9 UG2 concentrator plants . Long term contracts

• Technologically – Conventional Process, Semi-Closed . 13 of the 22 furnaces are conventional/semi-closed technology . Ore and reductants are fed cold with minimum pre-processing directly into open submerged arc furnaces . Lowest capital cost per tonne of alloy

– Outokumpu Process . Basis for the 2 Boshoek chrome furnaces and Bokamoso & Tswelopele pelletising plants . A sintering and pelletising plant supplies cold pellets to the pre-heater of the closed submerged arc furnaces at Boshoek Smelter . Cold pellets are fed directly to the semi-closed furnaces . Result in an increase in chrome recovery, reduction in energy and ore efficiencies

– Premus (Lydenburg and Lion I & II) . Developed and modelled at Lydenburg plant . A mixture of fine ore, reductants and binder is milled and pelletised . The pellets are pre-reduced in rotary kilns and the metallized pellets are hot charged to closed furnaces . The use of metallized pellets results in high chrome recoveries and the lowest specific energy consumption

6 Merafe Resources Ltd | Investor Presentation – Wonderkop Site Visit 6 May 2016 Historic Projects Delivered on Time and on Budget

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Commissioning of Merger to form Glencore- Commissioning of Boshoek smelter Merafe Chrome Venture Lion I smelter

Commissioning of Acquired interest in Bokamoso Pelletiser Wonderkop smelter and related mines

2011 2012 2013 2014 2015

Waterval Mine Commissioning Development - Commissioning Ramp-up of Tswelopele 360ktpa of Chrome of Lion II Smelter of Lion II Pelletiser Ore

7 Merafe Resources Ltd | Investor Presentation – Wonderkop Site Visit 6 May 2016 Growth Through Innovation

• Significant investments over the past decade to address: – Power efficiency – Power constraints – Ore efficiency – Process efficiency – Escalating costs

• Lion phases 1 and 2 – Development of the Premus Technology

• Bokamoso Pelletising Plant: Western limb, Wonderkop

• Tswelopele Pelletising Plant: Western limb, Rustenburg

• Magareng Mine: Eastern Limb, Steelpoort

• UG2 Operations – Our own mines – Long term contracts with platinum producers

8 Merafe Resources Ltd | Investor Presentation – Wonderkop Site Visit 6 May 2016 Challenges Facing the South African Ferrochrome Industry Glencore – Merafe Difference

SA Ferrochrome Challenge The Glencore – Merafe Difference . Rapidly escalating power costs  Growth Through Innovation • Lion I & II, Lydenburg: Premus technology • All other plants: Sintered pelletising technology . Power supply constraints  Growth Through Innovation • Lion I & II, Lydenburg: Premus technology • All other plants: Sintered pelletising technology . Limited local coke supply  Growth Through Innovation • Lion I & II, Lydenburg: Premus technology • All other plants: Sintered pelletising technology . Ore costs escalating  Growth Through Innovation • Lion I & II, Lydenburg: Premus technology • All other plants: Sintered pelletising technology • Magareng, UG2 , own mines • Third part ore contracts . Faltering financial backing  Financial Stability • Majority owned by Glencore PLC . Non integrated producers  Fully Integrated Diversified Operations . Logistics constraints  Diversified Port Usage  Diversified Road and Rail Inland Transport . Labour Relations: Industrial Action  Diversified Operations  Diversified Logistics

9 Merafe Resources Ltd | Investor Presentation – Wonderkop Site Visit 6 May 2016 Comparison of Smelting Technologies Premus technology provides a significant advantage

Chrome Recovery for Available Technologies MWh per tonne for Available Technologies

95 6 90 90 88 5 4.4 4.1

85 4 3.5 % 80 77 3 2.4 75 2

68 70 per MWh alloytonne 1

65 0 Con Outk DC Arc Premus Con Outk DC Arc Premus

Coke Consumption for Different Technologies Reduction in Coke Dependency Substitution with Anthracite which is a low cost reductant

60% 70 53% 55% 54% 60 52% 60 50% 44% 50 36% 40 40% 40 30% 30 19% 18 of % Anthracite 20% 20 12% 10% 6% 6%

% Dry of Fixed Carbon 10 0 0 0% Con OutK DC Arc Premus 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 F

Merafe Resources Ltd | Investor Presentation – Wonderkop Site Visit 6 May 2016 10 Our Marketing Agents Superior Offering

• Logistics – Glencore has dedicated logistic teams in all major offices . Direct relationships with shipping lines, port agents and port authorities worldwide . Personnel available on site at load and discharge ports – Logistics solutions ensure smooth, uninterrupted supply to our customers – Diversified port usage . Maputo . Richards Bay . Durban – Dedicated storage areas – Dedicated warehouse space

• Diversified road and rail inland transport – Contracts for both rail and road from inland plants to the ports – Major long term road and freight contracts

• Dedicated global shipping desk – Caters and adapts to customer delivery requirements

11 Merafe Resources Ltd | Investor Presentation – Wonderkop Site Visit 6 May 2016 Labour Relations

• Sound Labour Relations – Employee Share Ownership Plan agreed with Unions – Competitive Salary Structure  Home ownership incentivised . No hostels  Full pension contribution from company  Full medical aid from company

• Low level of migrant labour

• Corporate Social Investment Programme – Community projects

12 Merafe Resources Ltd | Investor Presentation – Wonderkop Site Visit 6 May 2016 WONDERKOP SMELTER

“The home of modern, cost effective charge chrome production”

The plant is in the Bojanala District of the North West Province, . It is one of the lowest cost producers of ferrochrome in the world.

Wonderkop which consists of a sinter plan and smelter plant is close to raw material supplies and able to use a variety of different raw materials effectively making it highly efficient.

Wonderkop Plant13 14 Merafe Resources Ltd | Investor Presentation – Wonderkop Site Visit 6 May 2016 15 Merafe Resources Ltd | Investor Presentation – Wonderkop Site Visit 6 May 2016 Aerial Overview

Bokamoso – Sinter Plant

Aquarius Smelter Plant

16 Merafe Resources Ltd | Investor Presentation – Wonderkop Site Visit 6 May 2016 Smelter Overview

17 Merafe Resources Ltd | Investor Presentation – Wonderkop Site Visit 6 May 2016 Overview

• Six Furnaces 553,000 tonnes of ferrochrome per annum (incl. Metal Extraction Plant) – 270 MVA installed furnace Capacity (semi-closed submerged arc) – Normal Grade Product (>50%Cr) – Alternative Grade Product (<50%Cr) • Agglomeration Capacity 1,200,000 tonnes per annum – Bokamoso Sinter Plant – 1,200,000 tonnes p.a . Outukumpu Technology . High temperature (1200C) sintering process. . High flexibility in fine ore input selection • Metal Extraction Plant – Magnetic and gravity separation – Recovery Product (Typical < 3% slag)

18 Merafe Resources Ltd | Investor Presentation – Wonderkop Site Visit 6 May 2016 History

2007 Bokamoso Sinter Plant commissioned (August 2007) 2004 Pelletising North Plant commissioned 2003 Second Alloy Metal Extraction Plant commissioned

Furnace 5 and 6 commissioned (July 2001)

2001 ISO 14001 certification 2000 Block Plant commissioned ISO 9001 certification (May 1999) 1999 Pelletising South Plant commissioned

1998 Furnace 3 and 4 commissioned 1997 Alloy Metal Extraction Plant commissioned 1996 Furnace 1 and 2 commissioned 1995 Wonderkop Project started – Greenfields Project

19 Merafe Resources Ltd | Investor Presentation – Wonderkop Site Visit 6 May 2016 Smelter Operation – Process Flow

RM COARSER ORE, REDUCTANTS & FLUXES RM MIXING BUNKERS

RM RECEIPTS & HANDLING

FINE ORE

F1 & F2

F3 & F4 PELLETIZING

SLAG & METAL METAL SEGREGATION TAPPING (DUAL PER PRODUCT TYPE, METAL INGOT SKIMMER) CRUSHING & SCREENING COOLING & F5 & F6 BREAKING

TRANSIT SLAG DUMP

RECOVERED TRUCK OR RAIL METAL METAL TO PORT EXTRACTION PLANT

SHIP TO CUSTOMER FINAL SLAG STOCKPILE

RM FLOW SLAG FLOW METAL FLOW

20 Merafe Resources Ltd | Investor Presentation – Wonderkop Site Visit 6 May 2016 Production Input and ENERGY (excl aux) • ESKOM Output 3.5 MWh • Dolomite FLUX • Quartz BOKAMOSO SINTER PLANT 0.436 t • Limestone

REDUCTANTS • ESKOM 0.68 t ORE FEED: ORE • Pellets • UG2 2.20 t • LG6 Met Grade Concentrate • Other Ore Cr – 47- 49% Si – 3.0-7.0% S – <0.050%

1 250˚C Sinter Steel Belt FURNACE

PELLET QUALITY: Ferrochrome - 1.0 tonne Cr2O3 Depending on Cr:Fe quality of ore input Furnace Availability = 98%

Slag – 1.2 tonnes

21 Merafe Resources Ltd | Investor Presentation – Wonderkop Site Visit 6 May 2016 Bokamoso

• Bokamoso means “the future” in Tswana (one of South Africa’s 11 official languages) • The plant has a design capacity of 1.2 million tonnes of pellets per annum and consists of two similar production lines Bokamoso has produced 7,981,055 tonnes of sintered pellets for the period Aug 2007 up to Apr 2016 • During the South African winter period (Jun-Aug), extensive maintenance is performed on both phases to ensure optimal efficiency of the plant

22 Merafe Resources Ltd | Investor Presentation – Wonderkop Site Visit 6 May 2016 Aerial View – Bokamoso Sinter Plant

23 Merafe Resources Ltd | Investor Presentation – Wonderkop Site Visit 6 May 2016 Sinter Plant – Process Flow

BENTONITE ANTHRACITE RAW MATERIAL DAY BINS GRINDING SLURRY CERAMIC HANDLING BALL MILL MIXING TANK FILTERS

PELLETISING ROLLER DRUM MIXER SCREEN FEED BINS

SHUTTLE FEEDER & BURNERS ROLLER FEEDER PRODUCT BINS

SCREENS

BOTTOM PELLETS STEEL BELT SINTERING FURNACE

BOTTOM PELLETS PRODUCT STORAGE

24 Merafe Resources Ltd | Investor Presentation – Wonderkop Site Visit 6 May 2016 Sinter Plant – Raw Material Flow

25 Merafe Resources Ltd | Investor Presentation – Wonderkop Site Visit 6 May 2016 Metal Extraction Plant – Process Flow

26 Merafe Resources Ltd | Investor Presentation – Wonderkop Site Visit 6 May 2016 Our Team

• Competitive

• Positive

• Team Players

• Passionate

• Entrepreneurial Culture

• Ownership

• Committed

27 Merafe Resources Ltd | Investor Presentation – Wonderkop Site Visit 6 May 2016 Thank you for your attendance!

28 Merafe Resources Ltd | Investor Presentation – Wonderkop Site Visit 6 May 2016