MINERAL RESERVES AND RESOURCES Update Wayne Robinson Chief Executive Officer: Gold Division 28 July 2016
Disclaimer The information in this presentation may include forward-looking statements, which are based on current expectations and projections about future events. These statements may include, without limitation, any statements preceded by, followed by or including words such as target, expect, may, anticipate, estimate, will, and other words and terms of similar meaning or the negative thereof. These forward-looking statements, as well as those included in any other material discussed at the meeting, are subject to risks, uncertainties and assumptions, including, among other things, the development of Sibanye s business, general economic conditions and actions of regulators. In light of these risks, uncertainties and assumptions, the events in the forward-looking statements may not occur. No representation or warranty is made that any forward-looking statement will come to pass and no reliance should be placed on any forward-looking statement. No one undertakes to publicly update or revise any such forward-looking statement. In accordance with the requirements imposed by the JSE, Sibanye Gold reports its reserves using the terms and definitions of the SAMREC Code (2007 edition). There are differences between the SAMREC Code and the Security and Exchange Commission s Industry Guide 7. Mineral or ore reserves, as defined under the SAMREC Code, are divided into categories of proved and probable reserves and are expressed in terms of tonnes to be processed at mill feed head grades, allowing for estimated mining dilution, recovery and other factors. The lead Competent Person designated in terms of SAMREC, who take responsibility for the consolidation and reporting of Sibanye Gold s Mineral Resources and Mineral Reserves and of the overall regulatory compliance of these figures is Mr. Gerhard Janse van Vuuren, who gave his consent for the disclosure of the 2015 Mineral Resource and Mineral Reserve Statement. Mr Janse van Vuuren [BTech (MRM), GDE (Mining Eng.), MBA and MSCoC] is registered with Plato (PMS No 243) and has 27 years experience relative to the type and style of mineral deposit under consideration. He is the current Vice President: Mine Technical Services and is a full time employee of Sibanye Gold. Mr. van Vuuren consents to the inclusion of all information in this release relating to mineral resources and mineral reserves in the form in which it appears. The respective business unit based Mineral Resource Managers, relevant project managers and the respective Mineral Resource Management discipline heads have been designated as the Competent Persons in terms of SAMREC and take responsibility for the reporting of Mineral Resources and Mineral Reserves for their respective area(s) of responsibility. Additional information regarding these personnel, as well as the teams involved with the compilation of the Mineral Resource and Mineral Reserve declaration is incorporated in the Mineral Resources and Mineral Reserves Supplement that was published in conjunction with the 2015 Sibanye Gold Integrated Report. 2
Location of gold operations and projects Focused on the Wits Basin 3
Driefontein Commissioned 1952 Production to date 108Moz Resources 19.8Moz Reserves 8.2Moz Production (2016F)* 553koz AISC (2016F) US$780/oz LOM 27 years * at average R15.7/US$ year to date One of the most productive gold mines ever 4
Kloof Commissioned 1968 Resources Resource grade Reserves Reserve grade Production (2016F) AISC (2016F) 28.2Moz 15.4g/t 6.5Moz 7.5g/t 488koz US$825/oz LOM 18 years * at average R15.7/US$ year to date A high grade, long life operation 5
Beatrix Commissioned 1983 Resources (gold) 9.6Moz Reserves (gold) 4.3Moz Production (2016F) 315koz AISC (2016F)* US$865/oz LOM 14 years Resources (uranium) 26.0 Mlb Reserves (uranium) 11.7Mlb * at average R15.7/US$ year to date Gold projects provide opportunities to extend life + Uranium potential 6
Cooke Commissioned 1961 Resources (gold) 15.9Moz Reserves (gold) 1.5Moz Production (2016F) 252koz AISC (2016F)* US$890/oz LOM 8 years Resources (uranium) 95.4Mlb Resources (uranium) 14.7Mlb * at average R15.7/US$ year to date Significant surface tailings resources with high uranium content 7
RESERVES AND RESOURCES Overview 8
Sibanye Gold Division 2016 R&R declaration Gold Mineral Reserves increased by 9% to 31.0Moz, despite depletion of 1.6Moz in 2015 Depth extension projects at Driefontein 5 Shaft, Kloof 4 Shaft and Beatrix South were included Maiden Gold Reserve at Burnstone and gold and uranium reserves at the Beisa Project were included Continued conversion of secondary reefs and white areas at operations (1.4Moz) increased expenditure on exploration R65.1m in 2015 to R77.5m in 2016 Quality reporting Investment Analyst Society 'Squirrel Award' for reporting in 2013 and 2015 Organic growth projects have increased mineral Resources and Reserves 9
Mineral Reserves and Resources: assumptions Item Unit 31 Dec 2015 31 Dec 2014 Reserve gold price R/kg 430,000 420,000 Resource gold price R/kg 470,000 460,000 Reserve uranium price R/kg 1,140 1,110 Current operations Weighted pay limit cm.g/t 1,188 1,187 Average mined value cm.g/t 1,484* 1,529 Mill width cm 201 210 Stoping width cm 160 163 Mine call factor % 84 83 Plant recovery factor % 97 97 * Average mined value excludes the Beisa Project, which is a high grade U3O8, low gold grade project Gold price of R430,000/kg in accordance with SEC guidelines for a three-year average Year to date gold price R605,000 Year to date uranium contract price R1,500/kg Three-year average long-term contract price R1,140/kg applied from 2020 onwards for uranium Organic growth drives Reserve increase 10
Gold Mineral Resources and Reserves: operations Resources Reserves Gold 31 Dec 2015 total 31 Dec 2014 31 Dec 2015 total 31 Dec 2014 Tons (Mt) Grade (g/t) Gold (Moz) Gold (Moz) Tons (Mt) Grade (g/t) Gold (Moz) Gold (Moz) Underground Beatrix 55.8 5.3 9.530 9.788 38.2 3.5 4.264 3.598 Cooke 95.8 5.1 15.860 16.475 9.8 4.7 1.471 1.841 Driefontein 55.0 11.1 19.691 22.755 35.5 7.1 8.102 7.228 Kloof 56.6 15.4 28.023 29.106 26.3 7.5 6.383 6.706 Total underground 263.2 8.6 73.103 78.124 109.8 5.7 20.219 19.374 Surface rock dumps (SRD) Beatrix 5.3 0.4 0.062 0.071 5.3 0.4 0.062 0.071 Cooke 4.7 0.3 0.052 0.114 4.7 0.3 0.052 0.114 Driefontein 4.6 0.6 0.094 0.125 4.6 0.6 0.094 0.125 Kloof 9.5 0.5 0.163 0.223 9.5 0.5 0.163 0.194 Total SRD 24.1 0.5 0.372 0.533 24.1 0.5 0.372 0.504 Total operations 287.3 8.0 73.475 78.657 134.0 4.8 20.591 19.878 Significant addition to operation s reserves through organic growth projects 11
Gold Mineral Resources and Reserves: major projects Resources Reserves Gold 31 Dec 2015 total 31 Dec 2014 31 Dec 2015 total 31 Dec 2014 Tons (Mt) Grade (g/t) Gold (Moz) Gold (Moz) Tons (Mt) Grade (g/t) Gold (Moz) Gold (Moz) Underground Beisa North 14.8 3.4 1.619 1.619 Bloemhoek 28.3 4.7 4.297 4.297 Burnstone 54.1 5.1 8.890 8.890 13.0 4.3 1.799 De Bron Merriespruit 28.3 4.4 4.022 4.022 15.4 4.3 2.112 2.088 Total underground 125.5 4.7 18.828 18.828 28.4 4.3 3.911 2.088 TSFs Cooke surface (RSO) 280.4 0.3 2.401 2.401 280.4 0.3 2.401 2.401 Driefontein 169.1 0.3 1.819 1.805 169.1 0.3 1.819 1.805 Kloof 265.3 0.3 2.267 2.253 265.3 0.3 2.267 2.253 Total TSF 714.8 0.3 6.486 6.459 714.8 0.3 6.486 6.459 Projects 840.3 0.9 25.314 25.287 743.2 0.4 10.397 8.547 Total Sibanye Gold 1,127.6 2.7 98.790 103.944 877.1 1.1 30.988 28.425 Maiden Reserves declared at Burnstone and Beisa 12
Uranium Mineral Resources and Reserves: operations Resources Reserves Uranium 31 Dec 2015 total 31 Dec 2014 31 Dec 2015 total 31 Dec 2014 Tons (Mt) Grade (kg/t) U 3 O 8 (Mlb) U 3 O 8 (Mlb) Tons (Mt) Grade (kg/t) U 3 O 8 (Mlb) U 3 O 8 (Mlb) Underground Beatrix 11.4 1.074 26.968 26.968 7.4 0.715 11.654 - Cooke 58.5 0.530 68.423 66.385 4.2 0.336 3.073 3.827 Driefontein Kloof Total underground 69.9 0.619 95.391 93.353 11.5 0.579 14.727 3.827 Surface rock dumps (SRD) Beatrix Cooke Driefontein Kloof Total SRD Total operations Significant underground and surface uranium resources 13
Uranium Mineral Resources and Reserves: major projects Resources Reserves Uranium 31 Dec 2015 total 31 Dec 2014 31 Dec 2015 total 31 Dec 2014 Tons (Mt) Grade (kg/t) U 3 O 8 (Mlb) U 3 O 8 (Mlb) Tons (Mt) Grade (kg/t) U 3 O 8 (Mlb) U 3 O 8 (Mlb) Underground Beisa North 14.8 1.084 35.373 35.373 Bloemhoek Burnstone De Bron Merriespruit Total underground 14.8 1.084 35.373 35.373 TSFs RSO 280.4 0.088 54.256 54.256 280.4 0.088 54.256 54.256 Driefontein 160.9 0.064 22.686 22.326 160.9 0.064 22.686 22.326 Kloof 265.3 0.038 22.146 22.071 265.3 0.038 22.146 22.071 Total TSF 706.6 0.064 99.088 98.653 706.6 0.064 99.088 98.653 Projects 721.4 0.085 134.461 134.026 706.6 0.064 99.088 98.653 Total Sibanye Gold 791.3 0.132 229.852 227.379 718.1 0.072 113.814 102.480 Significant underground and surface uranium reserves 14
Delivering a sustainable Gold Division kg Forecast of gold produced based on LoM profiles 60 000 50 000 40 000 30 000 20 000 10 000 Gold Fields plan Pre-feasibilities studies undertaken De Bron Beisa Pending capital approval WRTRP Projects in development Burnstone Below infrastructure projects Kloof Driefontein Surface reserves in LoM Kloof Driefontein Cooke Beatrix Underground reserves in LoM Kloof Driefontein Cooke Beatrix 0 Note: Project profile is based on pre-feasibility and feasibility studies as at December 2015 Based on Reserves declared as at 31 December 2015 Assumptions: Gold price: R430,000/kg, Uranium R1,455/lb (real 2015 terms) Extending the operating life 15
2016 LOM REVIEW Current operations and organic projects
Operations LoM profiles: square metres 140 000 120 000 Kloof and Driefontein DE Projects start production 100 000 Average m²/month 80 000 60 000 40 000 20 000 0 Beatrix Cooke Driefontein Kloof Based on current mine plan, production stable until 2023 17
Operations LoM profiles: tons milled 2 000 000 1 800 000 Current Cooke surface and Driefontein SRD complete in 2016 1 600 000 1 400 000 Average t/month 1 200 000 1 000 000 800 000 Kloof SRD complete in 2019 600 000 400 000 200 000 0 Beatrix Cooke Driefontein Kloof Surface Surface TSF and SRD mining to be replaced by WRTRP 18
Operations LoM profiles: forecast gold produced 4 500 4 000 3 500 3 000 Average kg/month 2 500 2 000 1 500 1 000 500 0 Beatrix Cooke Driefontein Kloof Surface Gold production stable for five years 19
Operations LoM profiles: average value mined 2 500 2 000 1 500 cm.g/t 1 000 500 Beatrix increase in value due to West Section comprising majority of tail Increase in average due to Driefontein below infrastructure forming largest % of remaining mining 0 Group Beatrix Cooke Driefontein Kloof LoM profiles based on stable geological models and in line with current values 20
Operations LoM profiles: development 7 000 6 000 5 000 Average m/month 4 000 3 000 2 000 1 000 0 Beatrix Cooke Driefontein Kloof Development excludes opening up and secondary development required to access white areas 21
LoM profiles: development replacement rate 100 90 m²/m 80 70 60 50 40 Standard replacement ratio (with allowance for flexibility) is ~12m 2 /month for Cooke and between 20-30m²/month for the other operations The ratio increases as the development grid is completed and required development declines 30 20 10 0 2013 2014 2015 2016 2017 2018 2019 2020 The historical replacement rate is ~20m²/month 22
Development requirement Gold required/planned (input) Gold rec. 316kg All development is calculated from ratios as per standard layout. Flexibility is added to the minimum amount required Tons milled 40,000 Stoping m 2 6,137 Ledging m 2 341 Tons and square metres are calculated from ore flow parameters (input) Ledging calculated from ratio of stoping to ledging as per standard layout Main Reef metres Secondary 88 88 0 Main 195 Waste metres 195 Secondary 0 Main 282 Total metres 282 Secondary 0 Planning pyramids are used to scientifically calculate development required 23
Access to secondary reefs Development required to access secondary reef horizon is significantly less than original development required to access the primary reef ORD capex is significantly lower As a result, pay limits for the secondary reefs will be lower than average Existing infrastructure Planned development Existing infrastructure reduces capital cost 24
Developed ore reserves: months per mine Developed ore reserves (DOR) are available for mining in the short term, pending sequencing and/or equipping of individual panels 35 Months of mining available 30 25 20 15 18 17 29 30 26 24 18 10 5 0 Beatrix Kloof Driefontein Cooke Cooke DOR months 2014 DOR months present Present The continued focus on cost reduction and development maintains flexibility 25
Addressing operational underperfomance Cooke 4 has continued to underperform operationally and losses have accumulated Section 189 notification given on 11 July 2016 Underperformance largely volume related driven by: complex geology and structure seismic activity affecting access to high grade panels section 54 stoppages Closure of Cooke 4* would: reduce annual production by between 1.5t to 2t reduce AISC costs at the Cooke Operations by R32,000/kg reduce Sibanye Gold Divison AISC by R7,800/kg Resulting in a more profitable Group *Using 2015 reported numbers Sibanye will not subsidise loss-making production 26
QUESTIONS