Shareholders are referred to the cautionary announcement dated 24 June 2014, and are advised that the full impact of the impairment of the Mayoko Iron Ore Project (Mayoko Project), located in the Republic of the Congo, has now been determined and finalised. As such, shareholders are advised that caution is no longer required to be exercised by shareholders when dealing in Exxaro securities.

The pre-tax impairment of the company's investment in the Mayoko Project was concluded during July 2014 and the impairment loss recorded amounts to R5 807 million. This amount includes an impairment of the original acquisition cost of R2 897 million, the carrying amount of property, plant and equipment of R1 167 million and the project related costs capitalised to date of R1 696 million. A write down of short term receivables amounting to R47 million was also recorded during the six-month period ended 30 June 2014. The final pre-tax impairment loss recorded is higher than the previously reported R5 362 million mainly due to the impact of exchange rates ruling at 30 June 2014 on the valuation of the investment and property, plant and equipment. Details of the calculation will be included in the announcement of the reviewed financial results for the six-month period ended 30 June 2014 to be released on 21 August 2014.

Exxaro and its directors have in the meantime obtained a reasonable degree of certainty relating to the expected financial results for the six-month period ended 30 June 2014.

Consolidated net operating profit as well as attributable earnings per share for the six-month period ended 30 June 2014 are expected to show a decrease of more than 20% when compared to the corresponding period of 2013 and accordingly the following information is given in terms of paragraphs 3.4(b)(i) and 3.4(b)(iii) of the JSE Listings Requirements.

A decrease in consolidated net operating profit for the group is expected when compared to the R917 million net operating profit reported in the corresponding period in 2013 mainly due to the non-recurring pre-tax impairment loss of R5 807 million relating to the Mayoko Project recorded in June 2014.

The coal business is expected to report a higher net operating profit for the six-month period ended 30 June 2014 compared to the R1 031 million net operating profit reported in the corresponding period of 2013. This is mainly as a result of higher revenue recorded, higher shortfall income from Eskom and lower operating costs incurred during the six-month period ended 30 June 2014, as well as the non-recurring pre-tax impairment recorded in the six-month period ended 30 June 2013.

A lower contribution from Exxaro's equity-accounted investments is expected for the six-month period ended 30 June 2014 when compared to the corresponding period in 2013, mainly as a result of a 19% decrease in earnings from Sishen Iron Ore Company largely attributable to lower iron ore export prices.

Attributable losses for the six-month period ended 30 June 2014 are expected to be between R2 373 and R2 645 million. This equates to a basic attributable loss per share of between 668 cents and 745 cents, representing a decrease of between 206% and 218% when compared to the attributable earnings per share of 632 cents recorded in the corresponding period in 2013. This is mainly due to the non-recurring pre-tax impairment loss of R5 807 million recorded in respect of the Mayoko Project in June 2014.

Basic headline earnings per share, which exclude the impact of any impairment losses, are expected to be between 745 cents and 800 cents, representing an increase of between 5% and 12% when compared to the 712 cents recorded in the corresponding period of 2013.

The forecast financial information on which this trading statement is based has not been reviewed, audited nor reported on by Exxaro's external auditors.

Editor's note:
Exxaro is one of the largest South African based diversified resources companies, with interests in the coal, titanium dioxide and iron ore commodities. www.exxaro.com

Enquiries:
Wim de Klerk
Finance Director
Tel: + 27 12 307 4848
Mobile: +27 82 652 5145
Email: wim.deklerk@exxaro.com

Pretoria
30 July 2014

Sponsor
Deutsche Securities (SA) Proprietary Limited

distributed by