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Exxaro has recently had a number of unsolicited approaches to acquire its NCC asset. As NCC is a relatively short life-of-mine and lower margin asset, the group will embark on a process of testing whether potential third party buyers can generate greater value from this unique asset.

This process may therefore result in a disposal of NCC to a suitably qualified operator, allowing Exxaro to focus on its core portfolio and delivery of its growth prospects.

The group is calling for expressions of interest from parties interested in acquiring the assets and liabilities of the NCC operation.

In 2012 NCC produced 717kt of A-grade steam coal, most of which was exported.

About Exxaro:

Exxaro is one of the largest South African-based diversified resources groups, with interests in the coal, mineral sands, iron ore and energy commodities. www.exxaro.com

Enquiries:

FirstRand Bank Limited, acting through RMB Corporate Finance (“RMB”), has been appointed by Exxaro to act as transaction advisor. For further information interested parties may contact either Pieter Nienaber on +27 11 282 1268 (pieter.nienaber@rmb.co.za) or James Griffiths on +27 11 282 8972 (james.griffiths@rmb.co.za) at RMB.

By being one of the top performers in the National Energy Barometer Survey for the
2011 utility year, Exxaro has received confirmation that its buildings’ energy efficiency
investments are paying off when compared to others in the same sector.

After participating in every National Energy Barometer Survey since its inception, Exxaro is
for the second consecutive year runner up in the Head Office & Corporate Offices category,
with winners Central Energy Fund (CEF) House, and in third place Anglo Gold Ashanti.
Categories assessed in the 2011 survey included Head Offices, Hospitals, Hotels, and Motor
Car Dealers, but due to non-disclosure agreements not all winners in all categories may be
announced.

When asked why Exxaro uses the National Energy Barometer Survey benchmarking
adjudication process, Ernst Venter, executive head for growth, technology and services,
says, “It allows us to compare our building to others in the industry, and it is very
encouraging to know that a 50 year old building fares well against green built buildings, and
other more recently built and upgraded facilities.”

One of the initiatives implemented by Exxaro to assist with its energy management is real-
time metering. By being able to monitor energy usage in real-time, problem areas in a
facility can be identified quickly, and rectified at very short notice, thereby minimising the
risk of unforeseen utility charges. Geysers are also switched off when not required, thereby
reducing the requirement for heating water unnecessarily.

With over 1 000 people using the facility, energy use awareness becomes a challenge.
As regularly reported in respected journals, behavioural change can deliver up to 30% of
energy savings in a well-orchestrated energy management strategy. The ‘human element’
at Exxaro is controlled using a Building Management System (BMS) which switches lights off
after working hours, removing the possible cost of an employee forgetting to turn off a light
when leaving the working area.

“The National Energy Barometer Survey participation has contributed to raising awareness
amongst occupants of the building and serves as a motivation to continuously improve,”
says Venter. Exxaro is looking at intensifying the role of energy champions in each business
unit to maintain the positive impact the awareness and savings initiatives are making.

The Energy Barometer is a tool to encourage taking steps in the right direction and is being
used by many companies to decide which buildings in their portfolios’ energy management
initiatives will deliver the most significant impact, and encourages continuous improvement
to maintain and improve its Barometer benchmarking status. Venter indicated that Exxaro
is striving to continuously improve and said, “the next projects that we will focus on are the
replacement of lamps with more energy efficient ones, replacing inefficient chillers, and
implementing free cooling where possible”.

With support from the National Energy Efficiency Agency (NEEA), the National Energy
Barometer was successfully rolled out for the 2009 utility year by the developers of the

barometer, Energy Cybernetics. The Energy Barometer Survey for the utility year January
to December 2011 is the third survey period since its launch in 2009, when 20 facilities
participated. Participation has grown to over 100 for the current survey.

For the 2012 Utility Year, the National Energy Barometer Survey will open in April for
buildings to enter their energy use, and have the opportunity to benchmark against others
in a similar industry.

Optimising a building envelope through standards and regulations is only a step in the
right direction. The National Energy Barometer Survey encourages companies to become
aware of their energy consumption levels and to improve these in the interest of their own
bottom-lines, as well as the national economy, whilst providing a platform for comparison
and learning.

Watch the relevant videos explaining the National Energy Barometer Survey on
www.energybarometer.com

Phillimon Sebona and Prince Maseko (Exxaro/PWC Academy 1) won the Exxaro Development Jersey of the Epic, but that was not the only reason for Mgojo’s exuberant mood.

The two youngsters finished 47th overall and they were 39th in the pro-elite men’s category.

But there is still more to come.

Jan Motshia and Thokozani Mahlangu (Exxaro/Accenture Academy) finished 59th overall and William Mokgopo and Luke Mashiane (Exxaro/Deutsche Bank Academy 1) were 66th overall.

This was an improvement of almost 100% on the Epic results of 2012 in the Development Category, when Sipho Madolo and Azukile Simayile finished 77th overall out of the 600 teams that took part in the race.

In 2012 Sebona and Mokgopo finished 105th overall and Montshioa and Mahlangu 109th.

“The way our riders performed was like a dream come true. They have proven that Exxaro’s vision to have at least one team in the contest for the Epic’s African Jersey within the next three years is still on track,” said Mgojo.

“The racing during the last few days of the Epic really warmed my heart, especially if the backgrounds of our riders are taken into consideration. Watch this space. More of our guys will be riding from the front during the next three years.”

What brought about the major improvement from 2012 to 2013?

“There are various reasons for the difference from last year to now. We not only improved the fitness level of our riders, but we also drilled into them that they should use their heads when they are racing. In other words, we encouraged them to race smartly.”

“In 2012 our riders were very keen to be up there, racing with the seasoned professionals. It was totally unrealistic of them to think that they were able to compete with these experienced riders and, in trying to do so, they made silly mistakes that also caused unnecessary mechanical problems.”

“This year we made sure that our riders understood the foolishness of trying to compete against the pro-elite riders.’

“The Exxaro riders are basically still amateurs, whereas the pro-elite riders eat, sleep and drink mountain biking. It is their job and they are good at it. We told our riders to focus on their own race and to be patient. That was exactly what they did and it was reflected in their results.”

According to Mgojo, the youngsters of the Exxaro Academy will in future get more opportunities to race and to prove themselves.

“To illustrate this, we are sending our top team, Phillimon Sebona and Prince Maseko, to compete in the Trans-Alp. Some of our teams will also take part in the Joburg2C. This will be a just reward for a job done well.”

Motshia and Mahlangu deservedly won the final stage of the Absa Cape Epic, in the Exxaro Development Category, on Sunday (24 March), taking the tally of teams to win a stage to five.

The build-up to Motshia and Mahlangu’s moment of glory was far from ideal.

During Stage 6 the two teammates and friends had an argument about team tactics. The argument was about whether they should ride for personal glory, or work together with some of their teammates to protect the Development Jersey.

Afterwards Brandon Whiteley, team manager, sat down with the two riders, giving each an opportunity to explain the reasoning behind their respective opinions.

His strategy worked, because on Sunday, during the last stage from Stellenbosch to Lourensford (54km), the two rode like a well-oiled machine. Their past differences were clearly something of the past.

Their winning time was 2 hours 52 minutes and 39 seconds. This meant that they finished 29th overall in the pro-elite men’s category, setting another first for the Exxaro Academy.

It was the first time that any of the Academy teams managed to get a top-thirty finish in the Epic.

William Mokgopo and Luke Mashiane (Exxaro/Deutsche Bank Academy 1) were 2nd in 2:56:35 (35th in the pro-elite category) and Phillimon Sebona and Prince Maseko (Exxaro/ PWC Academy 1) were 3rd in 2:59:21 (41st).

The result had no influence on the overall standings in the Exxaro Development Category.

Sebona and Maseko are the winners, with Motshia and Mahlangu 2nd and Mokgopo and Mashiane 3rd

According to Mahlangu, winning the last stage was special.

“It was not an easy week for us. We have been through some difficult times. That is why winning the last stage was such a great way to finish the Epic.”

When asked about their differences of the day before, Mahlangu said that a true professional lets whatever happens on the bike stay on the bike.

“When we started the last stage, we had the same goal and that was to get the best result possible. We agreed that we were going to give it our all.”

“Therefore we tried to stick with the pro-elite riders for as long as possible to gain a lead on all the other development teams.

“I want to dedicate our team victory to the decision makers of Exxaro. If it were not for them, we would not have had this opportunity.”

Sebona was relieved that he was able to finish the Epic.

“Actually, I am surprised that I had no knee problems during the last stage. In fact, I felt so good that I stopped to take off the strappings so that I could ride faster.”

As a reward for winning the Exxaro Development Jersey, Sebona and Maseko will get an opportunity to compete in the Trans-Alp Mountain Bike Tour in July.

“It will be an honour for us to represent Exxaro in Europe, but it also comes with a great responsibility.”

“Prince and I can certainly not afford to rest on our laurels. After a few days of rest, the hard training will begin all over again.”

“Being able to compete in the eight-day Joburg2C will be excellent preparation.”

Sebona said that they will try not to be too intimidated at the Trans-Alp.

“The important thing to remember is that it will not help to worry about the things that we cannot control. We should rather focus on what we can control.”

According to the 18-year-old Mashiane, one of the youngest riders in the Epic, being able to finish was the best thing that could have happened to him.

“It is big confidence booster. I now realise that I am capable of doing anything once I have made up my mind to do it. I think I have matured during the past eight days.”

The moment Kubwana got off her mountain bike at Lourensford, the finish of the 2013 Epic, she made South African cycling history.

She and Letshego Moshoeu were the first two South African black female mountain bikers who were able to finish the Absa Cape Epic. Moshoeu’s partner was the Epic veteran, Ernst Viljoen.

“I am very proud that I was able to finish what I had started. To complete the Epic was definitely my greatest achievement so far.”

When asked how tough she thought the Epic was, Kubwana uttered a loud ‘eish’ and her infectious giggle before she answered. “I will be quite honest. The Epic was hard and challenging. The first stage, in and around Citrusdal, was nerve wrecking. We made the cut off with only three minutes to spare. At another time I really thought that this was it. I simply could not pedal any longer and might as well quit.”

“Justice Makhale, our team captain and mentor, rode up to me and asked: ‘Why are you doing the Epic?’”

“When I answered: ‘To make history’, I realised that quitting was not an option.”

Kubwana is proud that she and Myers did not crash once and that the only mechanical problem they had was a broken chain.

She made it clear that, if it had not been for Makhale’s guidance throughout all the stages, they would not have been able to complete the Epic.

“Justice was amazing. He just knew how to keep us going. When we really suffered, he physically pushed us along.”

Kubwana said that when she first told her friends that she was going to do the Epic, they all thought that she had lost the plot.

“I was told that the Epic was something that boys should do and not girls.”

“That motivated me. I wanted to prove that, as a black woman, I was able to do anything if I put my mind to it.”

“Watch this space, as they say. More black women will now take up mountain biking as a sport.”

The 19-year-old Kubwana is already a veteran when it comes to mountain biking.

She and William Mokgopo have won the mixed category of the Sabie Experience twice and she has also received Gauteng colours in cross-country riding.

According to Kubwana, mountain biking is quite a popular sport in her hometown, Diepsloot.

“This is mainly because of the involvement of Absa and Exxaro. There are about 40 riders at the Absa Academy in Diepsloot and about ten of us are part of the Exxaro Academy.

“There is a great need for young people to become involved in sports. Crime is a huge problem in our community and a healthy body leads to a healthy mind.”

Kubwana plans to compete mostly in cross-country races during the rest of the season, but she says she is not finished with the Epic yet.

“I would definitely love to do another Epic. As they say, pain is just for now, glory is forever.”

Makhale, Exxaro team captain, is proud that Kubwana and Myers persevered, even at times when things were really tough for them.

“I have to admit that I am tired, and not only in my legs. My arms and shoulders took a real hammering during this Epic, with all the pushing I had to do. But in the end it was all worth it.”

“The performance of the Exxaro women’s team will be an inspiration to many youngsters.”

“I am actually proud of the way in which all the Exxaro riders rode. Their results have improved so much from last year until now and this just proves that, with the right support, riders of colour can become good mountain bikers.”

They continue to impress with the way in which they grow stronger as the tour progresses, proving that thereis truth in the saying that Rome was not built in one day.

However, their victory had no influence on the overall standings in the Exxaro Category.

Phillimon Sebona and Prince Maseko (Exxaro PWC Academy, who came second in the 6th stage, still have a comfortable overall lead in the Development Category.

Sebona had everybody worried during the stage from Wellington to Stellenbosch (106km), because his knees were troubling him so badly that he could hardly pedal properly.

After finishing the stage, a limping Sebona had to be supported by a teammate to get to the Exxaro Green Zone tent.

“I am really in pain,” Sebona complained.

“But I will finish the Epic, come what may. I have worked too hard and suffered too much to let pain get me down.”

Maseko admitted that he also experienced stress during the stage.

“I was worried that Phillimon might suddenly decide to quit because he was in so much pain. Not that I would have allowed him to do it.

“If needed, I would have carried him across the mountains and pushed his bike, but finish he would.”

William Makgope and Luke Mashiane (ExxaroDeutsche Bank Academy) deserve to be complimented for sacrificing their personal goals. When they caught up with Sebona and Maseko, they opted to supportSebona, even pushing him along from time to time, instead of racing for a stage victory for themselves,

“We are more than an hour down on the Exxaro classification. It would have served no purpose for us to try to win a stage or make up time. We did what was best for the team, because that should always be a priority.”

Sokolangane and Komape won in 5 hours 31 minutes and 42 seconds. The two teams of Sebona and Masekoand Makgope and Mashiane finished in exactly thesame time, namely 5:34:19.

Sokolangane and Komape certainly did not have the best of starts in this year’s Epic.

The chain of Komape’s mountain bike broke duringstage one and it took some time to fix it. This meant that they were never really in the contest to win the Exxaro jersey.

In spite of a few lesser setbacks, Sokolangane andKomape refused to give up.

Their results speak for themselves. In the 4th stage they finished 55th in the pro-elite men’s category, followedby 49th in the 5th stage and 34th in the 6th stage.

The bar to win the Exxaro Development Jersey has certainly been raised.

In 2012 there were basically three teams that dominated, namely Phillimon Sebona and William Makgope; Azukile Simayile and Sipho Madolo; and Jan Motshia and Thokozani Mahlangu.

So far this year, four teams have won stages and in the first four stages the first three teams were separated by only eight minutes.

According to Sokolangane, the best is yet to come.

“This is only the second time that we are competing in the Epic. Last year we were going backwards because of the silly mistakes we made. This year we are gaining confidence with each stage and moving up in the general classification.

“But we still have much to learn before we will be truly competitive.”

In terms of the agreement, striking employees at the Matla, Arnot, Grootegeluk, Leeuwpan, Inyanda and Reductants operations will return to work on Monday 25 March 2013.

The employees will each be paid a minimum R2 800 in respect of quarter one of the company’s 2013 short term incentive.

A central issue to the strike was the non-payment of 2012 performance incentives which were not paid due to performance targets having not been met. As the striking employees did not achieve performance targets which would have entitled them to a 2012 incentive payment, the group was not prepared to reward these employees with additional payments.

The “no-work-no-pay” principle applied during the strike, which began at some of the operations on 5 March 2013.

The NUM has confirmed that, although it was not the NUM who initiated the unprotected strikes, it was in fact their members who were out on strike.

Exxaro is pleased with the outcome of the engagement between the company and the NUM, particularly as it has averted the possible negative effect that a prolonged strike could have had on Eskom’s electricity generation and the country’s economy as a whole.

The focus at the operations now will be to re-start operations as soon as possible after employees have returned to their duties and undergone safety and training interventions.

Ends

Editor’s note:
Exxaro is one of the largest South African-based diversified resources groups, with interests in the coal, mineral sands, ferrous and energy markets. www.exxaro.com

For enquiries:
Retha Piater
Executive Head: Human Resources
Tel: +27 12 307 4058
Mobile: +27 83 609 1106

By winning this stage (in and around Wellington) they completed a hat trick of victories. They were also victorious in the 2nd and 4th stages.

Sebona and Maseko will be the first to admit that taking this third stage victory was certainly a bonus. With a little bit of luck on their side, one of the other Exxaro teams could easily have been the winners.

From a long-term perspective, it was encouraging to see how well Sebona and Maseko, Jan Motshia and Thokozani Mahlangu (Exxaro Accenture Academy) and William Mokgopo and Luke Mashiane (Exxaro Deutsche Bank Academy) all worked together as one big team.

The Exxaro riders have been discussing the tactics used by Germany’s various Bulls teams, suggesting that they should try to simulate it. It basically boils down to the well-known motto made famous by the Three Musketeers, namely ‘One for all and all for one.’

The three Exxaro teams joined forces quite early during the stage and then worked together to pass as many teams as possible. Their mission was to ensure that they achieve a good result for their sponsors.

Their hard work and discipline paid off.

Maseko and Sebona won the Exxaro Development Category of the 76km stage in 3 hours 52 minutes and 37 seconds. Motshia and Mahlangu crossed the line a mere second later and Mokgope and Mashiane were only two more seconds adrift.

This meant that they finished respectively 39th, 40th and 41st overall in the pro-elite category. It was the first time that three Exxaro teams managed to get top-fifty finishes in the same Epic stage.

Without any further bad luck during the last two stages, it seems a forgone conclusion that Sebona and Maseko will win the Exxaro Development Category.

They have a 46-minute lead on Motshia and Mahlangu and are currently 53rd in the pro-elite category.

Sebona admitted afterwards that he battled over the last five kilometres.

“My legs were dead sore. The only reason why I did not give up was because I did not want to let Prince down.”

The 18-year-old Mashiane proved that he is able to take the knocks dealt by mountain biking and still come back fighting.

In a very bad crash during the 4th stage, he landed hard on his right knee.

Mashiane admits that he cried after the fall because he was in so much pain.

There were some worries about whether he would be able to finish the Epic.

Mashiane, however, made it clear that a much more serious crash will be necessary for him to even begin to contemplate quitting the Epic.

“I promise that I will ride across the finishing line at Lourensford on Sunday. I firmly believe that you have to finish what you have started.”

Mahlangu has an amazing story to tell about his Epic.

He arrived in Cape Town carrying a picture of his hero, Burry Stander. He even completed the first stage of the Epic carrying the picture with him. He also makes no secret that he dedicates his race to Stander.

Stander, one of the legends of South African and international mountain biking, was killed in January by a minibus taxi while he was on a training ride.

“Burry is my hero and role model. When I first heard the news that he was dead, I did not want to believe it. But when more and more people told me the same story, I had to accept the reality that Burry was really dead.

“I cried because I loved Burry.

“I met Burry for the first time when I was 14. We both competed at the Eric van Enter provincial schools event.

“We had a very good rider in our team and I thought nobody could beat him. But to my astonishment Burry won the race.

“That was not the last time that Burry’s cycling feats astonished me. When he won his World Cup event I was over the moon.

“His gutsy performance at last year’s Olympic Games in London is also something I will treasure forever. I have never seen a rider fight so hard for so long.

“What made Burry special was that he never considered himself too good to talk to youngsters like me and to give advice.

“The most important thing I learned from Burry was that patience is a virtue and that you can only be successful if you are disciplined and prepared to put in the long hard hours.

“He must have said that to me on at least six occasions.”