Assurance

Assurance is implemented in terms of a three-tier system, aligned with the guidelines of Exxaro's Mineral Resource and Mineral Reserve reporting procedure, summarised as follows:

On tier 1, PwC conducted an audit on our internal Resource and Reserve estimation process at Grootegeluk in 2023 and only one minor level 3 finding was reported. The minor finding was that a risk assessment of technical, environmental, social, economic, political and other key risks should be reported on an "if not, why not" basis within the CPR. This was addressed by incorporating this information in the risk table in the CPR and Resource and Reserve reports, to be commented on an "if not, why not" basis.

Table 6 below indicates tier 2 technical assurances conducted on development projects with specific focus on the estimation that underpins these projects. Where technical findings were identified during reviews that may materially impact the business, remedial actions were recommended to ensure project robustness and shareholder return.

Internal Coal Resource estimation reviews measuring compliance to the Exxaro geoscience policy, and the associated Coal Resource reporting and estimation procedures were conducted for Matla and Leeuwpan mines. A Reserve review was done of the Leeuwpan LoM to revise the plan going forward. A summary of findings is listed in Table 7.

In 2023, tier 3 assurance was undertaken for the Mafube, Matla and Leeuwpan operations. Geological data validation, data analysis and subsequent updating of geological and structural models were concluded in the reporting period. These models were peer reviewed by geosciences central experts for the three operations and the models were signed off by the applicable Competent Persons and their supporting technical teams. Findings were incorporated in the model updates. A review of the validation process was done, incorporating additional validation tests as supported by the metallurgy department and these tests were applied to the geological model of Mafube, Leeuwpan and Matla.

Tier 1

External audits are scheduled in a three-year cycle or at the discretion of the lead Competent Persons and entail a full review of the Mineral Resource and Mineral Reserve estimation process from drill hole logging to Mineral Reserve evaluation.

Tier 2

Internal reviews are scheduled and planned for a three-year cycle or when deemed necessary. The focus is on projects and Resource and associated Reserve compliance with Exxaro's governance framework, while ensuring accountability and consequence management

Tier 3

Mineral Resource and Mineral Reserve estimation is undertaken as per Exxaro's governance framework. Sign-offs are required at each stage and the process is concluded in a formal sign-off session by a panel comprising Exxaro's lead Mineral Resource and Mineral Reserve Competent Persons and technical specialists. Technical assurance is managed in terms of dedicated standards

Table 6: Tier 2 technical assurances conducted in the reporting year with general points addressed

Project name	Project description	Summary Resource actions	Summary Reserve actions


Grootegeluk complex (GGC) in‑pit crusher (IPC) relocation	Relocate the existing IPC system closer to the pit face.	Additional structural drilling required to de‑risk site locations.	No findings.
Mafube water treatment plant	Expand the existing Mafube water treatment facility.	No findings.	Enhance the water balance.
GGC trucks and shovels strategies	Present an approach for the efficient and effective management of primary mining equipment.	No findings.	Provide contingency measures for the foreseen capacity gap in 2024.
GGC trucks and shovels strategies		No findings.	Update the norms, life cycle cost and their potential impact on the estimated schedule.
Matla primary equipment strategy	Maintain equipment production capacity at Matla mine.	No findings.	No findings.
Belfast integrated water management	Treat acid mine water generated through the mining operation.		Belfast will require a permanent water treatment facility to prevent potential environmental spillages.
Belfast discard dump phase 3	Phased expansion of discard facilities according to mining activities.		LoM schedule supplied to support with the discard dump design for the Belfast licence to operate Reserves.

Table 7: Tier 2 internal reviews findings

Area under review	Finding	Conclusion and recommendation*
Leeuwpan	Rehabilitation procedure/update exploration procedure.	Procedure to be implemented to incorporate surface owner and environmental department sign-off on rehabilitation form.
	Closing the loop of the reconciliation process.	Improve the follow-through of reconciliation reported by noting reasons for deviations and creating action plans to manage deviations going forward.
	Outdated slope design guidelines.	Review and update slope design guidelines, ensuring applicability to all current mining areas.
	Outdated blasting procedure.	Review blasting procedure and include pre-split holes.
Matla	Historic geophysical drill hole surveys not in drill hole database.	Historic geophysical logs should be imported into the drill hole database.

*	Findings are communicated and corrective measures are implemented.