Statement of Clarifications and Amendments to Directors' Remuneration Report

"Following the publication of the Annual Report 2015, the Company wishes to make the following
clarifications and amendments in respect of the Directors' Remuneration Report (DRR). In the table showing the calculation of the outcome of the 2014/15 annual bonus:

The currency of the EBITDA and Free Cash Flow targets and performance is to be read as

'US$ million' (and not £ million as is shown)
The 'Annual Bonus' scheme for financial year ending 31st March 2015, is a balanced score card of performance metrics where the weightage for financial performance, a consolidated set of EBITDA and Free Cash Flow metrics, is at 60% and other metrics like operational, strategic & sustainability comprising the balance 40%.

The actual EBITDA for the said financial year was US$3,741m and the corresponding Free

Cash Flow was US$2,578m as reported in other sections of the Annual Report. Page 111 of the Directors Remuneration Report section reflects numbers that need to be amended to reflect the above. Thus the EBITDA at US$3,744m and corresponding Free Cash Flow at US$2,519m as currently reflected on the said page may be substituted with the right numbers as above.
The revised annual bonus table is set out on the next page.
As a result of the above amendment, the final pay out as a percentage of maximum pay out opportunity is calculated at 37.66% against 37.20% published in the DRR. However the remuneration committee has decided to retain the same pay out percentage of 37.20% as reflected currently in the published DRR and Annual Report."

Factors

Parameters

Weighting as a percentage of total bonus

Actual achieved

(£'m)

Threshold performance hurdle (33% of maximum payable)

On-target performance hurdle (70%

of maximum payable)

Achievement

Payout (% of max)

Payout % of total

Financial Performance

EBITDA

30.00%

3,741

3,744

5,349

69.94%

33.30%

9.99%

Financial Performance

Free Cash Flow

30.00%

2,578

2,286

3,265

78.96%

44.26%

13.28%

Financial Performance

Subtotal financial (As per

Scheme)

60.00%

70.00%

100.00%

74.45%

38.77%

23.26%

Sustainability and

Safety Scorecard

Sustainability

7.50%

72.00%

5.40%

Sustainability and

Safety Scorecard

Safety

7.50%

The safety target was not met so no bonus was payable under this element

0.00%

0.00%

Personal / Strategic

Objectives

Stakeholder management and regulatory

25.00%

Parameters: PSC Extension, Divestment of Govt. Share, Simplification of Group

Structure, Iron Ore Export Duty and Bauxite Supply

36.00%

9.00%

Total

100.00%

Payout as a Percentage of Maximum Payout Opportunity

37.66%

Payout as a Percentage of Maximum Payout Opportunity (retained at)

37.20%

Payout

150.00%

Paid as a Percentage of Base Pay (Calculated as per Total Score)

55.80%

distributed by