Our operations and projects in review

Exxaro maintains a world-class Coal Resource portfolio, comprising fully owned operations and projects as well as jointly owned interests in South Africa and Australia. Our fully owned South African assets are strategically located in the highly prospective Waterberg coalfield in Limpopo and the mature Highveld and Witbank coalfields in Mpumalanga.

Our Coal Resource and Coal Reserve estimation strategy is focused on providing reliable and assured estimates through responsible and innovative technical management principles.

Our Competent Persons are the custodians of the mineral assets and are accountable for ensuring the integrity of our Resource and Reserve estimates by applying pioneering technology and trusted knowledge and experience. Our projects, operations and expansion initiatives are built on these assured Coal Resources and Coal Reserves, creating a platform for the LoM plan (LoMP) from which annual business plans are derived. The Mineral Resource managers at each operation are custodians of the LoM and ensure professional execution of business plans, stimulating profitability and return on investment while guarding against irresponsible exploitation.

We actively execute annual exploration programmes to investigate Resource potential outside our current LoMP and to increase confidence in those Resources that fall within the LoMP.

Using new geological information, we annually challenge the fundamentals of our exploitation plans and update our LoMPs where required. This continuous review process ensures optimal extraction of our Resources and enables technical teams to focus on maximum value extraction. The technical teams actively investigated opportunities to expand the LoM at all our operations. Some high-potential opportunities were identified and the teams are currently evaluating for potential implementation.

We made an adjustment on our LoM reporting. LoM presents the period in years during which the Ore Reserves can be economically exploited considering all modifying factors, with clear explanatory footnotes on regulatory approvals. The reported LoM years were previously constrained by the expiry of the mining right. The only exception is at our Grootegeluk mine, where the LoM is constrained by the lapse of the Eskom supply agreement.




Grootegeluk		We successfully implemented a new long-term geological zones model, which provides higher geological resolution and enhances mining bench quality flexibility for evaluating multiple exploitation scenarios. The unlocked value triggered a review of our exploitation strategy, and we subsequently updated the LoMP, resulting in changes to reported Coal Reserves. A North Pit bench feasibility study is in progress, the outcome of which will guide the consideration of possible bench redefinition. New information on overburden material types has led to a consolidated plan that integrates strategic backfill and a sump strategy for effective in-pit water management. The strategic mine planning teams ensure that RoM and overburden scheduling, together with in-pit water management, remain key focus areas to support timely bench exposure for accurate product and backfill plan execution.
Thabametsi		The exploitation of the adjacent Thabametsi mining right is under review, and early results indicate clear synergies with the current Grootegeluk mine plan. We may potentially compile a consolidation plan of the two mining rights once the evaluation is concluded.
Belfast		The exploitation and LoM plans were updated following completion of a life extension feasibility study (Lifex), which demonstrated a positive financial outcome and resulted in the inclusion of the Coal Reserve base. The study focused on the key enablers needed to move the project into execution. The establishment of Pit 5 will further enhance our mine plan execution and contribute towards coal exposure. Both developments enhance the operation's Reserve base.
Leeuwpan		The mine's turnaround programme is progressing. Challenging geological conditions, such as high seam thickness, coal quality variability, geological faults, irregular sill occurrence and weathering, have impacted coal extraction.
Mafube		Vital environmental approvals, including the water use licence and environmental impact assessment, enabled the reporting of the Nooitgedacht North area as Proved Reserves. We reviewed the viability of all coal seams, considering exploitation, processing, product and market factors, and excluded some of the coal seams from the Reserve.
Matla		We are addressing life extension project delays through innovative exploration and short-term mine planning to identify additional mining ground. Life extension projects at all three Matla mines are in progress.
		Matla Mine 1 relocation is scheduled for handover to the operational team in the first half of 2026. North-west access at Mine 2, to access Seam 2, will become fully operational following a belt extension scheduled for early 2026. Access to Seam 4 Resources at Mine 3 is expected to be concluded in the first quarter of 2026, with ventilation shaft development in progress. All three life extension projects are planned for completion in 2026.
		Focused annual exploration is a key enabler for mining operations and plans, as geological challenges related to coal seam proximity to basement, geological structures as well as sills and dykes, require timely and accurate information. Exploration results have contributed to a study investigating the benefits of coal washing at Matla. Exploration teams achieved more drilling metres than planned, despite higher-than-normal rainfall during the exploration window.

Governance and assurance

We conducted assurance during the execution of exploration plans and the update of Resource models at our various operations. We also undertook specific reviews at the conclusion of the updated exploitation and LoMP at Grootegeluk, Mafube, Matla, Leeuwpan and Belfast operations. A specific highlight of the Tier 3 level independent reviews was the audit of the newly optimised Grootegeluk geological model that was conducted by A&B Global, with no findings that would materially impact our reported estimates.

There are no other pertinent technical or operational risks that may impact the group's ability to mine or explore.

Total attributable Resources: 9 517Mt

Total attributable Reserves: 2 795Mt

Exxaro attributable Coal Resources and Reserves (Mt)

Our total attributable Coal Resource increased by ~2%, primarily due to the successful conclusion of on-mine drilling programmes at Grootegeluk, Belfast and Matla. The newly acquired information increased the level of geological confidence, as reflected in the movement between the various Resource categories. Material changes in the Coal Resource at individual operations are reported at Leeuwpan mine (11%), mainly the result of mining depletion and sterilisation of outlined Resource areas after consideration of geotechnical challenges and reasonable prospect of eventual economic extraction considerations.

Our total attributable Coal Reserve decreased by ~2%, primarily due to mining depletion and optimisation of mining plans including revised market assumptions. Material changes in Coal Reserves are reported at three of our operations. A decrease of 17% at Leeuwpan mine is primarily the result of depletion and changes within the Resource base. At Mafube mine, a decrease (14%) was reported due to mining and a review of market assumptions resulting in the exclusion of certain coal seams. The significant increase of 118% at our Belfast mine is due to the successful conclusion of the Belfast life extension (Lifex) feasibility study and subsequent inclusion as Probable Coal Reserves.

Notes:

Resource estimations are based on the latest available geological models, which incorporate new validated geological information and, if applicable, revised seam, Resource definitions and Resource classifications. For the 2025 reporting cycle, reported estimates are derived from actual mining up to the end of September, incorporating the planned estimates for October to December
Resource and Reserve estimates in our statements are quoted in full, irrespective of Exxaro's shareholding. Our attributable tonnage is clearly presented in the image above and, when used in our report, always clearly defined as such
Rounding off of quoted figures may result in minor computational discrepancies, although these are not deemed significant

For further information, refer to the CMRR report.