Kumba Iron Ore : receives SARS letter of findings for 2011 tax year

Kumba has now received a similar letter of findings from SARS in relation to the 2011 tax year, indicating potential adjustments to the Company's taxable income which would result in an additional tax liability of approximately R1.0 billion, excluding any potential interest and penalties, should Kumba ultimately be assessed on this basis. SIOC has cooperated fully with SARS during the course of the audit but, supported by its specialist tax and legal advisors, disagrees with SARS' audit findings and will respond to the letter accordingly and within the prescribed period.

Themba Mkhwanazi, CEO of Kumba, said: 'As a responsible corporate citizen, Kumba and its subsidiaries believe that all taxes owed under South African tax legislation have been paid and that we comply with all applicable tax laws in all jurisdictions in which we operate.'

'Kumba generates substantial value for all its stakeholders and is fully committed to the transformation of the South African mining industry and to the wider societal and economic benefits that we bring; for example in 2015 alone, a year during which the iron ore price fell sharply, our business contributed R900 million in corporate taxes and mineral royalties, R4.7 billion in salaries and wages, R15.2 billion in local procurement, R6.8 billion of capital reinvested in the business and R174 million in social investment in health, housing, education and small business development.'

As previously disclosed, the field audit for the 2012 and 2013 tax years is in progress. Kumba will update shareholders as appropriate.

Centurion
___ [September] 2016

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