Saudi Arabian Mining Company (Ma'aden) Announces its consolidated interim results for the second quarter and half year ended June 30, 2016

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1 P.O. Box 68861, Riyadh Kingdom of Saudi Arabia Tel: Fax: July Announces its consolidated interim results for the second quarter and half year ended June 30, Production highlights Overall, our current operations have stabilized and are operating at their designed capacities and produced: 669 K tonnes of ammonium phosphate fertilizer, down by 7 y-o-y 300 K tonnes of ammonia, down by 4 y-o-y 220 K tonnes of primary aluminium, up by 6 y-o-y 60 K ounces of gold, up 50 y-o-y, Project highlights Ad Duwayhi gold mine commenced commercial operation on April 1, Al-Ba itha bauxite mine and the alumina refinery are ramping up very well Rolling mill continues to steadily progress towards achieving commercial volumes Wa ad Al Shamal construction work continues to progress towards the completion of construction by end of Q4. On July 1,, Jabal Sayid copper mine started commercial operation Financial Our financial performance during the quarter has been impacted significantly by lower commodity prices. Sales revenues for the quarter declined by 15 in Q2, compared to the same quarter last year. The decline can be attributed to the low commodity prices of ammonia and ammonium phosphate fertilizers for which average realized prices declined by 9 and 31 respectively. Average realized prices of aluminium declined by 16 although gold prices improved by 7. The impact on profitability from the decline in sales was partially offset by an 11 reduction in cost of sales due to lower raw material prices coupled with the effects of the group s ongoing initiative to reduce operating costs. Our various initiatives to contain costs have led to a drop in selling, marketing and logistic expenses, general and administrative expenses, and exploration and technical services expenses by 17, 27 and 65 respectively. Increases in borrowing costs, notably the SIBOR rate, also impacted net income with finance charges rising by 80 since last year. Overall, despite the weak pricing environment for our products, Ma aden demonstrated its ability to achieve operational excellence through the continued increases in production and reduction in

2 Page 2 of 5 costs. These efforts continue with further initiatives underway focused on achieving a significant improvement in cash flows over the coming months and year. Operations In our phosphate business, during Q2, we produced 669K tonnes of ammonium phosphate fertilizer and 300K tonnes of ammonia, a decline of 7 and 4 respectively as compared to the same quarter last year. The decline was mainly due to planned lower output from phosphoric acid plant due to scheduled maintenance. In Q2, we sold 705K tonnes of ammonium phosphate fertilizer which was in line with the same quarter last year. However, our external sales of ammonia increased by 10 due to lower internal consumption in ammonium phosphate fertilizer production. Our aluminium smelter continues to operate above its designed capacity. In Q2, we produced 220K tonnes of primary aluminium and sold 219K tonnes, an increase of 6 and 5 respectively compared to same quarter last year. The increase is mainly on account of increased production efficiency and higher volumes from the recycling facility. Production and sales of gold during the quarter increased significantly by 50 and 54 (60Koz and 63 Koz) respectively compared to the same quarter last year. The increased production was mainly attributed to Ad Duwayhi mine which was commercialized on April 1,. Continuous efforts are underway to reduce costs and with Ad Duwayhi in operation and increasing production we expect the overall production and sales to increase and costs to come down in coming quarters. Projects Wa ad As Shamal is progressing towards completion of the construction by the end of Q4. The first plant in the complex for the production of ammonia is at an advanced stage and commissioning is now underway. Our bauxite mine at Al Ba itha and refinery at Ras Al Khair, continues to progress satisfactorily through it commissioning phase. Jabal Sayid has been in commercial operation since July 1, and is ramping up production to increase the copper production in the coming quarters.

3 Page 3 of 5 Financial summary Consolidated interim statement of income for the quarter ended June 30, SAR (millions) June June March change 31 change H1 H1 change 2015 y-o-y q-o-q 2015 y-o-y Sales 2,546 3, , ,819 5, Cost of sales -2,005-2, , ,785-4, Gross profit ,034 1, Selling, marketing and logistics expenses General and administrative expenses Exploration and technical services expenses Operating income Share in net loss of a jointly controlled entity Income from short-term investments Finance charges Other income, net Income before zakat Provision for zakat Net income for the quarter Net income for the quarter attributable to: Shareholders of the parent company Non-controlling interest Earnings per share (Saudi Riyals)

4 Page 4 of 5 Production and sales summary Particulars Q2 Q y-o-y Q1 q-o-q H1 H y-o-y Phosphate business Ammonium phosphate fertilizer ( 000 tonnes) Production ,328 1,277 4 Sales ,304 1,260 3 Ammonia ( 000 tonnes) Production External sales Aluminium business Aluminium ( 000 tonnes) Production (MAC) Sales Precious and base metals business Gold ( 000 ounces) Production Sales For further information, please contact: Ma aden Investors Relations Walid Al- Hakim, Head Investor Relations Tel: invest@maaden.com.sa About Ma'aden was formed by Royal Decree in 1997 to facilitate the development of Saudi Arabia's mineral resources and was originally wholly owned by the Saudi Government before 50 of its shares were floated on the Saudi Stock Exchange (Tadawul) in Initially Ma'aden's activities focused on expanding its active gold business which now includes five mines and over 15 million ounces gold resources. Ma'aden has also developed its activities beyond gold with the development of Ma'aden Phosphate Company, Ma aden Aluminium Company and Industrial Minerals. A number of projects are underway to make Ma aden the third pillar of Saudi Arabia s economy. For more details visit us at

5 Page 5 of 5 Disclaimer This Press release contains statements that are, or may be deemed to be, forward looking statements, including statements about the beliefs and expectations of Saudi Arabian Mining Company (the "Company"). These statements are based on the Company's current plans, estimates and projections, as well as its expectations of external conditions and events. Forward-looking statements involve inherent risks and uncertainties and speak only as of the date they are made. As a result of these risks, uncertainties and assumptions, a prospective investor should not place undue reliance on these forward-looking statements. A number of important factors could cause actual results or outcomes to differ materially from those expressed in any forward-looking statements. The Company is not obliged to, and does not intend to, update or revise any forward- looking statements made in this press release whether as a result of new information, future events or otherwise. This communication has been prepared by and is the sole responsibility of the Company. It has not been reviewed, approved or endorsed by any financial advisor, lead manager, selling agent, receiving bank or underwriter retained by the Company. This communication is provided for information purposes only. In addition, because this communication is a summary only, it may not contain all material terms and this communication in and of itself should not form the basis for any investment decision. The information and opinions herein is believed to be reliable and has been obtained from sources believed to be reliable, but no representation or warranty, express or implied, is made with respect to the fairness, correctness, accuracy reasonableness or completeness of the information and opinions. There is no obligation to update, modify or amend this communication or to otherwise notify you if information, opinion, projection, forecast or estimate set forth herein, changes or subsequently becomes inaccurate. You are strongly advised to seek your own independent advice in relation to any investment, financial, legal, tax, accounting or regulatory issues discussed herein. Analyses and opinions contained herein may be based on assumptions that if altered can change the analyses or opinions expressed. Nothing contained herein shall constitute any representation or warranty as to future performance of any financial instrument, credit, currency, rate or other market or economic measure. Furthermore, past performance is not necessarily indicative of future results. The Company disclaims liability for any loss arising out of or in connection with your use of, or reliance on, this communication. These materials may not be published, distributed or transmitted and may not be reproduced in any manner whatsoever without the explicit consent of Ma aden s management. These materials do not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction.