2017 ANNUAL GENERAL MEETING

“BALANCING ECONOMIC, SOCIAL AND ENVIRONMENTAL NEEDS “

CREATING A NEW VISION: BUILDING BRIDGES

Lonmin at a Glance Key figures

Key features

 Listings: LSE and JSE  Market capitalisation: c. USD520m

Shareholder register by geography United Kingdom

4%

Rest of Europe 39% 39%

North America South Africa 12%

6%

Rest of World

 Third largest producer of platinum globally  Only major integrated PGM participant on the LSE  Main operations located in South Africa, host to c.80% of global PGM resources  Top 3 Platinum Producer globally with High Quality, Long Life PGM Resources  Greater leverage to upside than PGM peers  Well established customer relationships  11 shafts, 7 concentrators and 5 furnaces in Marikana

United Kingdom Ireland Exploration North America Sudbury PGM joint venture JVs with Vale & Wallbridge Southern Africa  Western Platinum Ltd. & Eastern Platinum Ltd.  Pandora JV  Tailings Dams (Marikana)  Limpopo

Asia Furuya Metals Co.

 Akanani  Loskop JV  Petrozim (Zimbabwe)

• Leading processing operations with surplus capacity • Significant replacement value • Total employees  Total contractors  HDSAs in management

25,296 7,497 52.4%

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How we Shared the $1.1bn Cash we Earned

$93m $20m $9m $56m

$460m

$517m

Shareholders received no dividend

WHAT HAVE WE DONE SINCE MARIKANA 2012…

For our Dependants

For our Community

For our Employees

1. What Have we Done for Dependants

   

Lonmin offered a job to one family member of each deceased Assisted to get statutory benefits Formed the Sixteen Eight Memorial Trust

The trust supports the educational needs of 153 children, the approximate breakdown of children at different levels of education is as follows: •

114 primary and secondary school, including 7 at a crèche

•

10 tertiary education

•

31 not in school (includes babies and adults)

•

Tuition Fees, Boarding Fees, Transportation, Uniform, Textbooks, Tertiary Fees, Accommodation, Meals and Textbooks

 Psychological counselling, parental and learner support in place  The lives of the beneficiaries have been changed for the better in providing them with the best education, thus opening them up to new possibilities

 First Trust Graduate: Mandla Yawa in BSc (Hons) In Agriculture

2. What Have we Done with Communities BAPO (2.24% and 0.9%) Other Communities (0.9%) Procurement Contracts (R1.65bn)

2016 GLC Matric pass rate (84,37%) versus national pass rate (72,5%)

Shared vision creates shared value

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3. What Have we Done for our Employees 1) Salaries 2) Financial Literacy 3) Employee Share Ownership Plan (2014)

4) Employee Total Wellbeing  ART – reducing AIDS related deaths  Nutritional supplements

5) Employee Living Conditions  No more single sex hostels at Lonmin  Living Out Allowance in place  Home ownership facilitation  Infill apartments for rental accommodation  Rezoning of informal settlements 8

Update on Wages

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Housing Historic Overview Timelines

1977-1988 Lonmin and Samancor initially partnered to undertake very first major development in Mooinooi, comprising more than 1,000 houses (Lonmin owned 877)

1989-1990 280 homes built at Renamile Township, adjacent to Wonderkop Hostel as well as Andrew Saffy Hospital

Development comprised 46 (three bedrooms) and 234 (four bedrooms) houses

HOUSING CONSTRUCTION ACTIVITIES

TOTAL UNITS

877

OTHER HOUSES (RUSTENBURG, MOOINOOI & BRITS) GRAND TOTAL

280

1990-2000

2003-2004

2004-2005

Marikana Ext 1 Home Ownership scheme: • 1,149 homes, each house 2 measures 40m with two bedrooms, • 370 houses sold and transferred to date • Another 372 houses occupied by employees on rent-to-buy scheme. • 325 units currently illegally occupied by employees reluctant to partake in ownership initiative Low take-up of home ownership is low,.

Karee 369 stand2 alone houses of 40m built, houses consist of two bedrooms (177 rented out to employees and families and balance shared by former Karee hostel dwellers)

1,149

369

2008-2014

650 low-cost houses built for Rustenburg Local Municipality, North West Province Housing Board). Allocations done by municipality to all in the community.

Hostel conversion programme completed, 128 blocks converted in line with Mining Charter requirements, yielding a total of 2,684 units (776 family and 1,908 Converted 22 single- single units) sex blocks (157 units) completed at a total prior to 2010 Mining capex cost of Charter requirements R378.5 million (R22 million) Donated 50ha of serviced land (valued at R80 million) for development of possible 2,658) housing units at Marikana Ext 2 Employees paying rentals ranging from R320 to R350 per month

650

2,684

2015-2016 Total of 493 modern multi-storey apartments constructed at cost of R160 million 2015: Completed 325 infill apartments at Karee (225 family and 100 single) 2016: Commenced with construction of 168 infill apartments of which 84 situated at Wonderkop and another 84 at Easterns (60 family and 24 single) The infill apartments to be allocated on the basis of market related rentals Consultations with union on rentals in progress

493

255 (Rustenburg – 42, Mooinooi – 185, Brits – 28) Mainly occupied by artisans, miners, first line supervisors, Market related rentals apply

6,757

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• COMPLETION OF HOSTEL CONVERSION PROGRAMME

• R378m

• ~ 2,684 UNITS

• PRIMARILY RENTAL ACCOMMODATION • TOTAL OF 1,240, BUT CAPACITY FOR 4,000 INFILL APARTMENTS • 2015: PHASE 1 OF 325 UNITS • 2016: PHASE 2 OF 168 UNITS

• R410 m

• ~ 1,240 UNITS, WITH CAPACITY FOR 4,000

STRATEGIC PILLARS

INFILL APARTMENTS – IMMEDIATE PROGRESS

HOME OWNERSHIP SCHEMES & MARKET RELATED RENTALS

REZONING OF INFORMAL SETTLEMENTS

NEW / EXISTING REALESTATE DEVELOPMENTS

• IMPLEMENT MEASURES TO PROMOTE HOME OWNERSHIP • INCREASE FOCUS ON LOCAL RECRUITMENT TO REDUCE NEED FOR HOUSING

• PARTICIPATE IN PLANNING FOR REZONING AND/OR RELOCATION OF INFORMAL SETTLEMENTS ADJOINING TO LONMIN OPS

• MARIKANA EXT. 2 (50ha WITH CAPACITY FOR 1,600 UNITS) • MARIKANA EXT. 5 (134ha WITH CAPACITY FOR 5,300 TO 6,000 UNITS OF MIXED TYPOLOGIES) • MOOINOOI (25ha WITH CAPACITY OF 2,500 OF MIXED TYPOLOGIES)

• TBD

• TBD

• DEPENDENT ON EMPLOYEE NEEDS SURVEY

• ~ 10,000 UNITS

• R78m (MHDC Marikana Ext 1) • 1149 MHDC (Marikana Ext 1) • Under review

OBJECTIVES

HOSTEL CONVERSIONS

COST

FACILITATE VIA COLLABORATIVE PARTNERSHIPS

LONMIN

YIELD

YIELD

COST

OBJECTIVES

STRATEGIC PILLARS

Lonmin Employee Housing Strategy

Building of 1240 Modern Infill Apartments in Progress PHASE 1: 325 units by Jan 2016

KAREE

PHASE 3: 300 units by Dec 2017 PHASE 4: 447 units by Dec 2018

PHASE 2: 168 units by Jan 2017

WPL

EPL

493 of 1 240 apartments already constructed at a cost of R140 million 12

Summary of Actions Since August 2012

Taking care of families of our lost colleagues

Build new accommodation options for our employees. Reviewing living standards , Revising human settlements strategy

OUR COMMITMENT:

Building and sustaining trusted relationships within GLC

* to operate in a transparent and mutually trustworthy environment Reviewed all policies, procedures and structures to ensure alignment with best practice in respect for human rights in and outside the workplace

* to improve labour relations Assisting our employees with debt management and financial planning

Building and sustaining trusted and empowered relationships between union leadership, employees and management

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Acknowledging our past, we are building bridges because…

Adversaries never achieve anything but partners can achieve a lot

QUESTIONS

2017 ANNUAL GENERAL MEETING