COMMENTARYFor the year ended 31 December 2021

The health and safety of our employees and communities remained our top priority amidst the COVID-19 pandemic (the pandemic). In line with our Health and Wellness Strategy, which focuses on diagnosis, management and prevention of diseases, our response to the pandemic has prioritised avoiding, reducing, and managing COVID-19 infections. As at 28 February 2022, the group had 7 303 confirmed cases and a recovery rate of 99%, with no loss of life during the recent fourth wave. We remain committed in our fight to prevent loss of life and continue to implement COVID-19 preventative measures in line with government regulations and recommendations. As at 28 February 2022 we achieved our target of vaccinating 80% of our employees and contractors, as a total of 11 942 (81%) of employees and contractors has been vaccinated.

Amidst the backdrop of the pandemic, we are proud to report a record safety performance for five consecutive years without a work-related fatality and the achievement of an LTIFR of 0.08 for the past year, in line with our set target of 0.08. Zero Harm remains Exxaro's key business and sustainability performance objective.

Comparability of results

For a better understanding of the comparability of results between the two reporting years, we have adjusted our earnings for non-recurring items (referred to as non-core adjustments) to derive our core earnings. The non-core adjustments in FY21 are the same as the headline earnings adjustments, resulting in no change between EBITDA and headline earnings to core EBITDA and core headline earnings, respectively. The table below sets out these non-core adjustments:

Non-core adjustments	FY21  Rm	FY20  Rm
Gross headline earnings adjustments1, 2	(1 683)	14
Other adjustments:
– Insurance claim recovery from external parties3		(14)
– Losses on financial instruments revaluations recycled to profit and loss on deemed disposal of Cennergi JV		59
Total net operating profit impact1	(1 683)	59
– Impairment charges of equity-accounted investments1		504
– Post-tax share of equity-accounted income adjustments	(1)	44
– Tax on non-core adjustments4	266	(260)
– NCI adjustments on non-core adjustments	319	(168)
Total attributable earnings impact	(1 099)	179

1	FY20 has been re-presented to exclude impairment charges of equity-accounted investments.
2	Gross headline earnings adjustments before share of equity-accounted investments' separately identifiable remeasurements, impairment charges of equity-accounted investments, tax and NCI.
3	Relates to compensation for business interruption.
4	Excludes tax on share of equity-accounted income adjustments.

Group revenue and core EBITDA

EBITDA is calculated by adjusting net operating profit before tax with depreciation, amortisation, impairment charges or reversals and net losses or gains on disposal of assets and investments (including translation differences recycled to profit or loss).

	Revenue				Core EBITDA1
	FY21  Rm	FY20  Rm	Change  %		FY21  Rm	FY20  Rm	Change  %
Coal	31 395	27 875	13		10 671	7 707	38
Energy2	1 193	889	34		913	648	41
Ferrous	168	147	14		24	12	100
Other	15	13	15		(937)	(1 076)	13
Total	32 771	28 924	13		10 671	7 291	46

1	Calculated after adjusting for non-core adjustments.
2	FY20 includes nine months' financial performance from 1 April 2020 (Cennergi acquisition date).

Group revenue increased 13% to R32 771 million (FY20: R28 924 million), mainly due to the increase in coal revenue and the inclusion of renewable energy revenue from Cennergi for the full twelve months compared to nine months in FY20.

Whilst coal production and export sales volumes were 10% and 9% lower, respectively, a 91% increase in the average benchmark API4 export price to US$124 per tonne (FY20: US$65 per tonne) more than offset the impact of the pandemic and logistical challenges experienced.

Group core EBITDA increased 46% to R10 671 million (FY20: R7 291 million), mainly attributable to a 38% increase in Coal core EBITDA (discussed in more detail under the coal business performance) and the inclusion of Cennergi results for the full twelve months compared to only nine months in FY20.

Earnings

Headline earnings increased 56% to R11 568 million (FY20: R7 417 million). The increase in headline earnings is mainly due to a 47% increase in group EBITDA and a 48% increase in equity-accounted income from SIOC, driven by high iron ore export prices and price premia. There was a slight decrease in the WANOS to 247 million (FY20: 251 million) as a result of shares repurchased and cancelled in terms of the R1.5 billion share repurchase programme. The total number of shares repurchased was 9 401 662 shares, representing 2.62% of Exxaro's issued share capital before the buy-back.

The earnings increase and the change in WANOS equates to basic HEPS of 4 683 cents per share (FY20: 2 955 cents per share).

Core income from equity-accounted investments

	Core equity-accounted income/(loss)			Dividends received
	FY21  Rm	FY20  Rm		FY21  Rm	FY20  Rm
Coal: Mafube	375	67
Coal: Tumelo1	29
Coal: RBCT	(18)	8
Energy: Cennergi2		13			144
Energy: LightApp	16	(18)
Ferrous: SIOC	9 035	6 123		9 991	3 119
TiO2: Tronox SA3	54	226
Other: Black Mountain	352	122
Other: Other4		(86)
Total	9 843	6 455		9 991	3 263

1	Disposed on 3 September 2021 as part of the ECC operation.
2	Application of the equity-method ceased on 31 March 2020 after which Cennergi was consolidated.
3	FY21 equity-accounted income up to the date of disposal on 24 February 2021.
4	Includes the investment in Insect Technology, which was fully impaired at 31 December 2020 and the investment in Curapipe, which was sold on 9 November 2020.

Cash flow and funding

Cash flow generated by operations was up 36% to R10 552 million (FY20: R7 770 million) and, together with the dividends received from our equity-accounted investments of R9 991 million (FY20: R3 263 million), were sufficient to fund capital expenditure and ordinary dividends paid.

Following the disposal of Exxaro's remaining shareholding in Tronox Holdings plc for R5 763 million, a special dividend of R1 363 million was paid to external shareholders, and a share repurchase programme of R1.5 billion was implemented with the last trade executed on 2 November 2021.

Total capital expenditure decreased to R2 471 million (FY20: R3 175 million), comprising R1 635 million sustaining capex and R836 million expansion capex.

Debt exposure

Our positive operational results and monetisation of our investment in Tronox Holdings plc strengthened our balance sheet, resulting in a net cash position of R764 million (excluding Cennergi's net debt of R4 482 million) compared to net debt of R6 335 million (excluding Cennergi's net debt of R4 632 million) at 31 December 2020.

In April 2021, Exxaro also successfully refinanced its R8 billion loan facility with various financial institutions.

As a result, the group has sufficient liquidity to navigate through the current uncertain operating environment.

Unreviewed coal production and sales volumes

	Production				Sales
	FY21  '000 tonnes	FY20  '000 tonnes	Change  %		FY2  1'000 tonnes	FY20  '000 tonnes	Change  %
Thermal	40 351	44 933	(10)		41 803	45 723	(9)
Commercial – Waterberg	25 335	26 554	(5)		25 698	25 629
Commercial – Mpumalanga	9 113	12 226	(25)		2 574	1 767	46
Exports					7 632	12 170	(37)
Tied	5 903	6 153	(4)		5 899	6 157	(4)
Metallurgical	1 894	2 222	(15)		956	1 036	(8)
Commercial - Waterberg	1 894	2 222	(15)		956	1 036	(8)
Total coal (excluding buy-ins)	42 245	47 155	(10)		42 759	46 759	(9)
Thermal coal buy-ins	232	291	(20)
Total coal (including buy-ins)	42 477	47 446	(10)		42 759	46 759	(9)

Chinese and Indian governments continue to wield significant influence over thermal coal seaborne markets by deploying domestic protectionist policies such as price controls, tariffs, and quotas. China's ban on Australian coal imports is also shifting more Australian coal to India, and imports from further afield into China.

After reaching record highs in mid-October 2021, thermal coal prices have started to ease as China's restrictions on power demand and supply intervention drove down domestic prices. However, current price levels are still well above marginal costs, owing to strong winter demand, a tight gas balance in Europe and the La Nina weather pattern bringing heavy rainfall and flooding to key exporters in the Pacific market. The lack of coal in the spot market in Australia, Russia and South Africa also provided support to high ash coal prices, whilst the Indonesian low-ranking coal has been more exposed to China's domestic coal price correction.

The domestic low CV market experienced subdued demand due to weak demand from Eskom. Most of the exporters prioritised railing high CV products to maximise returns on limited export rail availability, with the lower quality unsized export coal sold domestically to reduce high stockpiles.

Exxaro, along with other South African coal exporters, were severely constrained by a lack of sufficient logistical rail capacity. Locomotive unavailability remains a huge challenge, combined with cable theft, vandalism, and sabotage of rail infrastructure. This resulted in the industry only railing 58.1 Mt to RBCT in 2021 (FY20: 70.1 Mt). Exxaro export volumes decreased by 37% from 12.2 Mt in FY20 to 7.6 Mt in FY21.

The average benchmark API4 RBCT export price of US$124 per tonne was 90% higher (FY20: US$65 per tonne), resulting in a 100% increase in the average realised export price for Exxaro of US$96 per tonne (FY20: US$48 per tonne).

Production and sales volumes

Coal production volumes (excluding buy-ins) decreased by 4 910 kt (-10%) across all our mines, mainly due to the impact of the lower rail performance and market constraints as well as the ECC disposal on 3 September 2021.

Sales volumes decreased by 4 001 kt (-9%), mainly on export volumes due to lower rail performance, partly offset by higher domestic sales volumes as export product was sold in the local market.

Thermal Coal

Commercial Waterberg

Production at Grootegeluk decreased by 1 219 kt (-5%), as the tie-in of the newly constructed GG6 plant, coupled with the impact of heavy rain and COVID-19 restrictions in 1Q21, reduced production volumes. This was mitigated through higher stock utilisation with inventory reducing by approximately 1.2 Mt to meet contractual sales volumes.

Sales increased slightly as demand in the domestic markets ramped up following the impact of the lockdown restrictions in FY20.

Commercial Mpumalanga

The commercial Mpumalanga mines' thermal coal production decreased by 3 113 kt (-25%), as follows:

• Leeuwpan 1 324 kt (-36%), due to market constraints, full stockpiles as well as a 17-day TFR shutdown.
• ECC 1 045 kt (-27%), due to the divestment in September 2021.
• Lower offtake from Mafube of 415 kt (-23%), mainly due to the poor rail performance.
• Belfast 329 kt (-12%), impacted by heavy rains and the production of higher value coal resulting in lower power station coal production.

The commercial Mpumalanga mines' thermal coal sales increased by 806 kt (+46%), attributable to higher sales at ECC of 685 kt (+212%), Belfast of 325 kt (+374%) and Mafube of 16 kt, as export coal was redirected to the local market to counter the rail constraints.

The increase was partly offset by lower sales at Leeuwpan of 220 kt (-16%), mainly due to the mentioned market and rail constraints.

Exports commercial

Export sales volumes decreased by 4 538 kt (-37%), mainly due to logistical constraints and the ECC divestment in September 2021.

Tied

Coal production and sales decreased by 250 kt (-4%) and 258 kt (-4%), respectively.

Metallurgical Coal

Grootegeluk's metallurgical coal production decreased by 328 kt (-15%), as the operations were impacted by severe rain and high COVID-19 infections at the beginning of FY21. Due to the poor rail performance and high stock levels, production was curtailed.

Sales volumes decreased by 80 kt (-8%), mainly due to the lower availability of trains.

Coal revenue and core EBITDA

	Revenue				Core EBITDA1
	FY21  Rm	FY20  Rm	Change  %		FY21  Rm	FY20  Rm	Change  %
Commercial – Waterberg	16 852	15 449	9		8 627	8 093	7
Commercial – Mpumalanga	9 439	8 037	17		2 120	(433)
Tied2	5 089	4 355	17		157	144	9
Other	15	34	(56)		(233)	(97)
Coal	31 395	27 875	13		10 671	7 707	38

1	Calculated after adjusting for non-core adjustments.
2	Matla mine supplying its entire production to Eskom.

Coal revenue increased 13%, largely driven by an increase in revenue from our commercial mines as we achieved higher sales prices in all markets. Higher domestic sales volumes were offset by lower export volumes.

At Matla, revenue increased due to a higher recovery of capital expenditure and production cost from Eskom.

The increase in revenue was partially offset by a stronger ZAR/USD exchange rate realised of R14.78 (FY20: R16.45), and the divestment of ECC in September 2021.

Coal core EBITDA of R10 671 million (FY20: R7 707 million) increased 38%, driven mainly by:

• Higher commercial revenue (+R3 661 million)
• Lower selling and distribution costs (+R734 million), due to lower export volumes
• Realised and unrealised exchange rate gains (+R231 million)
• Lower operational costs (+R136 million), mainly due to lower production volumes and cost saving initiatives.

The increase was partly offset by:

• Inflationary pressures (-R1 000 million), driven by diesel and electricity tariff increases significantly above the PPI inflation rate
• Inventory drawdown and third party buy-ins (-R536 million)
• Royalties and carbon tax (-R365 million), in line with higher profitability
• Higher employee costs (-R218 million), due to bonus payments in line with performance targets, as well as higher costs incurred on the ESOP scheme.

Equity-accounted investments

Mafube, our 50% joint venture with Thungela, recorded core equity-accounted income of R375 million (FY20: R67 million). This increase is mainly due to higher export prices realised, partially offset by lower sales volumes and a stronger exchange rate.

Capex and projects

Coal Capex

	FY21 Rm	FY20 Rm	Change  %
Sustaining	1 564	2 110	(26)
Commercial – Waterberg	1 285	1 683	(24)
Commercial – Mpumalanga	261	411	(37)
Other	18	16	13
Expansion	836	950	(12)
Commercial – Waterberg	705	643	10
Commercial – Mpumalanga	131	307	(57)
Total coal capex	2 400	3 060	(22)

The coal business's capital expenditure decreased 22% in FY21. Sustaining capital decreased 26% driven mainly by lower spend at Grootegeluk, Leeuwpan, Belfast and the disposal of ECC in September 2021. Expansion capital decreased 12% as we completed the construction on the GG6 project and the Belfast mine.

Energy Core EBITDA was R914 million (FY20: R648 million for the 9-month period post acquisition).

The two Cennergi windfarms were operating at slightly lower than planned capacity due to lower than expected windspeeds, increased maintenance in low wind periods as well as the production time lost during the end of 5-year warranty inspections impacting energy generation negatively. Combined electricity generation was 724GWh (FY20: 727GWh based on 12-month period).

Normalised Cennergi EBITDA margin exceeds 80%, which shows the consistency of earnings and margins underpinned by long-term offtake agreements.

The Cennergi project financing of R4 700 million (FY20: R4 810 million) will mature over time and be fully settled in 2031. It has no recourse to the Exxaro balance sheet and is hedged through interest rate swaps achieving an effective rate of 11.9%.

Equity-accounted investment

The 48% increase in core equity-accounted income from SIOC to R9 035 million (FY20: R6 123 million), was primarily driven by the higher iron-ore prices and price premia.

An interim dividend of R6 329 million was received from our investment in SIOC in August 2021 (2H20: R1 706 million). SIOC declared a final dividend to its shareholders in February 2022. Exxaro's 20.62% share of the dividend amounts to R2 655 million, which is 58% lower than the interim dividend received. The dividend will be accounted for in 1H22.

Exxaro concluded its strategy to monetise its investment in Tronox Holdings plc when Tronox Holdings plc exercised the "flip-in" call option for the Tronox SA shares. This became effective on 24 February 2021 and resulted in the deemed disposal of the Tronox SA shares in exchange for Tronox Holdings plc Ordinary Shares. On 1 March 2021 all the Tronox Holdings Ordinary Shares were sold.

On 8 April 2021, Exxaro signed an SPA to dispose of our ECC operation to Overlooked Colliery. All conditions precedent to the SPA were fulfilled and the transaction became effective on 3 September 2021.

The disposal process for Leeuwpan continues with definitive legal agreements envisaged to be signed in 1H22, and regulatory approvals thereafter.

Exxaro continues to evaluate its options to dispose of its 26% shareholding in Black Mountain.

The FY21 audit is still in progress and the certificate will be published as soon as the audit is concluded.

Climate change response strategy implementation

The decarbonisation project management office (DPMO) was established in June 2021 to coordinate the decarbonisation activities across the group and compile a detailed baseline of our emissions. A multi-functional project team, comprising 10 functional and 4 cross-functional streams, has been established to develop a group-wide decarbonisation system and 2050 carbon neutrality pathway streams.

The team has compiled a detailed emissions baseline for the organisation and identified potential emission reduction opportunities from the planned projects. In the 2020 audited GHG emission data, Exxaro's total emissions were 66 000 ktCO₂eq, with Scope 1 accounting for 0.49%, Scope 2 for 0.76% and Scope 3 for 98.75%. A detailed breakdown of our emissions sources reveals that:

• Diesel accounts for 67% of the total Scope 1
• Methane emissions (i.e. fugitive emissions from the coal seam) accounts for 31% of Scope 1
• Grootegeluk accounts for 73% of Scope 2 emissions which are the result of electricity purchases and use from Eskom.

The organisation has opportunities to reduce current Scope 1 and Scope 2 emissions by 40% by 2025 with the implementation of the following initiatives:

• Grootegeluk solar PV project
• Execution of the pollution prevention plans, which are part of our compliance responsibilities
• Finalisation of divestment activities of Leeuwpan.

The implementation of the Grootegeluk renewable energy project will significantly reduce Exxaro's Scope 2 emissions, given the materiality of Grootegeluk's contribution. Additional GHG mitigation activities have been identified through the decarbonisation projects, and the team is refining the business case to ensure maximum value can be obtained for the organisation.

Social investment

Our social investment and engagement activities continued from FY20 within the COVID-19 environment, taking the necessary precautions. Our primary focus was to execute our ESD programme and implementation of community infrastructure projects, especially those related to water supply.

We achieved a local procurement spend of 11.3%, equal to R1.05 billion compared to our target of 10% and a prior year achievement of 4.5%, doubling our local procurement spend to empower over 241 local black owned SMME's.

During the year under review, we approved total ESD funding of R127.7 million to fifteen SMME's employing 243 people. We onboarded and provided support to 97 beneficiaries on the contractor development programmes, in partnership with the Gordon Institute of Business Science and 29 enterprise owners on a financial excellence programme with the SAICA enterprise development programme.

A total of R64 million was spent on the completion of schools, an ESD hub, water, and sanitation infrastructure projects through our Social and Labour Plans, in both Mpumalanga and Waterberg. A total of 205 jobs were created during the construction periods, with 53 484 community members being positively impacted, including 272 households, school children, women and youth entrepreneurs.

Changes in municipal leadership, post the local government elections, brought some stability which bodes well for current and future engagements and collaboration for local investment and community development.

The environmental authorisation application and water use license (Phase 1) applications have been submitted for the Belfast expansion project. We hope to receive these licenses in the first quarter of 2023.

Though the pandemic restrictions have improved, our interactions with the DMRE, Department of Water and Sanitation and other state departments remain impacted. The following applications are in process at the DMRE:

• The execution of Grootegeluk's section 102 application amending the mining right boundary
• The execution of Leeuwpan's section 102 application consolidating the two mining rights into a single mining right
• A section 102 application amending Matla's mining right to swap Coal Reserves with Seriti Resources as part of a commercial transaction.

In December 2021, the DMRE issued a directive for Exxaro to explain the failure to commence mining at Thabametsi. A formal response has been submitted to the DMRE.

An internal investigation to incorporate Thabametsi into the Grootegeluk mining right is underway, and we have committed to keep the authorities abreast of the outcome.

The group's compliance to valid licences or authorisations is at 96%. Where rights and other licences are nearing expiry dates, renewal applications are submitted timeously.

Our total attributable Coal Resources decreased by 6%, primarily due to mining depletion at our operations, the divestment of ECC and a change at Matla mine where 111 Mt of Coal Resources located outside the LoM was moved to inventory. These Matla Coal Resources are remnant and isolated coal blocks due to their locality and infrastructure and accessibility constraints and do not comply with our considerations of Realistic Prospects of Eventual Economic Extraction (RPEEE) for reporting of Coal Resources.

Our total attributable Coal Reserves decreased by 4%, mainly due to the divestment of ECC and normal mining depletion.

The divestment of ECC decreased the total attributable Coal Resources by 556 Mt and the total Coal Reserves by 95 Mt.

Other than normal LoM depletion, no material changes are reported on the Coal Resources and Coal Reserves estimates at our other operations.

Both Coal Resource and Coal Reserve lead Competent Persons are in the full-time employment of Exxaro, Henk Lingenfelder (Bachelor of Science: geology (Honours), Certified Professional Natural Scientist, Pr Sci Nat: 400038/11) as the Group Manager: Geosciences and Chris Ballot (Bachelor of Engineering (mining), Engineering Council of South Africa (ECSA), 20060040) as the Group Manager: Mining. Both persons have approved the information in writing in advance of this publication.

Economic context

In 1H22, the post-pandemic economic surge is expected to subside, as pent-up demand is exhausted, allowing for a downshift in global real GDP expansion. The withdrawal of fiscal and monetary policy stimuli will weigh on global growth as governments contain spending and contend with higher debt burdens. COVID-19 vaccination rates are expected to increase further, and barring any renewed infection rate increases, enabling affected economies to reopen.

The pandemic has strained South Africa's fiscal position, with public sector debt unsustainably high. Furthermore, South Africa experienced its worst-ever year of rotational power cuts, with Eskom continuing to highlight the impact of high debt burdens, illegal connections and weak cash flow. South Africa's electricity constraints are expected to continue into 2022 impacting growth prospects.

The rand/dollar exchange rate is expected to remain volatile in 1H22, depending on whether the surge in inflation largely reflects transitory factors.

Commodity markets and price

The domestic unsized market will continue experiencing pressure due to the increased volumes in the domestic market on the back of lower rail performance as domestic mining operations continue to struggle to excavate coal destined for the export market. On the international front, we expect the demand for coal to remain strong as supply is constrained. The influence of high gas prices and expected cold weather in the northern hemisphere will continue to drive stable demand for coal.

Lower steel production is anticipated in China, due to power shortages, a property sector slump, emission controls in the lead up to the winter Olympics and a broad-based economic slowdown.

Global iron ore supply growth remains a further downside risk to the expected softer market.

Operational performance

As previously communicated, poor logistical performance is impacting our ability to produce and export coal at desired levels. This highlighted the importance to respond quickly to value chain interruptions, and through our integrated operations centres and Market to Resource optimization strategy, we have the visibility required to respond effectively.

To remain competitive across various markets, our operational excellence and digital programmes are focused on specific projects across the value chain, aimed at managing stock levels, productivity, and production costs.

The pre-feasibility study to determine the way forward for the Moranbah South hard coking coal project started during 3Q21 and is expected to be completed by 1Q23.

We will remain prudent in our capital allocation framework, in terms of returning cash to shareholders, managing debt, and selectively reinvesting for the growth of our business.

Our strategic approach to build our renewable energy business necessitated a change in our dividend policy, which was approved by the board of directors in March 2021.

The revised dividend policy is still based on the following two components:

• A targeted cover ratio of 2.5 times to 3.5 times Adjusted Group Earnings; and
• Pass-through of the SIOC dividend.

Exxaro will continue to target a gearing ratio of below 1.5 times net debt (excluding ring-fenced project financing) to EBITDA.

The board of directors has declared a cash dividend, comprising:

• 2.5 times Adjusted Group Earnings (group core net profit after tax (excluding SIOC core equity-accounted income) less NCI of Exxaro subsidiaries (excluding NCI of Eyesizwe)); and
• Pass-through of SIOC dividend of R2 655 million.

Notice is hereby given that a gross final cash dividend, number 38 of 1 175 cents per share, for the year ended 31 December 2021 was declared, and is payable to shareholders of ordinary shares.

For details of the final dividend, please refer note 6 of the reviewed condensed group annual financial statements for the year ended 31 December 2021. The details will also be published on our website at www.exxaro.com.

Salient dates for payment of the final dividend are:

Last day to trade cum dividend on the JSE	Tuesday, 3 May 2022
First trading day ex dividend on the JSE	Wednesday, 4 May 2022
Record date	Friday, 6 May 2022
Payment date	Monday, 9 May 2022

No share certificates may be dematerialised or re-materialised between Wednesday, 4 May 2022 and Friday, 6 May 2022, both days inclusive. Dividends for certificated shareholders will be transferred electronically to their bank accounts on payment date. Shareholders who hold dematerialised shares will have their accounts at their central securities depository participant or broker credited on Monday, 9 May 2022.

In compliance with paragraph 3.59 of the Listings Requirements and paragraph 6.39 of the Debt Listings Requirements, shareholders were advised of the changes to the board of directors during the year ended 31 December 2021.

The company welcomed Dr Pumla Mnganga, Ms Karin Ireton, Mr Billy Mawasha and Mr Ben Magara to the board of directors as independent non-executive directors, with effect from 7 February 2022.

Shareholders are further advised that the board of directors has approved the early exit of Mr Mxolisi Mgojo with effect from 31 July 2022. The appointment of Dr Nombasa Tsengwa as chief executive officer will be effective as from 1 August 2022. The board of directors thanks Mr Mgojo for his invaluable contribution to Exxaro and wishes him well in his retirement and looks forward to Dr Tsengwa's management of the company.

Shareholders are also advised of the executive appointment of Mr Kgabi Masia in the position of Managing director: Minerals, formerly held by Dr Tsengwa. Mr Masia has exposure to Manganese, Coal and Aluminium Operations in his career. He has also worked across multiple functions such as operations, commercial, supply and logistics at a General Manager level and brings deep insight of the sector. He has led and executed decarbonisation strategies and exits. He has operated at executive level when he led South32's SA Coal business and has served more broadly on the Minerals Council. Mr Masia's most recent role was President, South Africa Energy Coal for South32 and he has worked for one company his entire career (South32/BHP).

Additional information on financial and operational results for the year ended 31 December 2021, and the accompanying presentation can be accessed on our website on www.exxaro.com.

On behalf of the board of directors

Geoffrey Qhena	Mxolisi Mgojo	Riaan Koppeschaar
Chairman	Chief executive officer	Finance director

3 March 2022