Scope of our engagement

Exxaro Resources (read more), (the report), of the 2008 Annual Report, has been prepared by the directors and management of Exxaro (management). Management is responsible for the collection and presentation of information within the report, and for maintaining adequate records and internal controls that are designed to support the sustainability reporting process. There are currently no prescribed requirements relating to the preparation, publication and verification of sustainability reports.

Our responsibility, in accordance with was to carry out our reasonable assurance engagement on the fatalities key performance indicator set out here and our limited assurance engagement over certain key performance indicators; the self declared GRI G3 application level; the compliance to the reporting requirements of the Mining Charter; and the AA1000 Principle Standards 2008 principles of materiality, responsiveness and inclusivity.

Our responsibility in performing our assurance activities is to the management of Exxaro only and in accordance with the terms of reference for this engagement as agreed with them. We do not, therefore, accept or assume any responsibility for any other purpose or to any other person or organisation. Any reliance any such third party may place on the report is entirely at its own risk.

Our assurance engagement was planned and performed in accordance with the International Federation of .Accountants’ Engagements (ISAE) 3000, Assurance Engagements Other Than Audits or Reviews of Historical Financial Information. The report has been evaluated against the following criteria: the principles of Materiality, Responsiveness and Inclusivity as set out in (AA1000PS) as well as against the application of the Global Reporting Initiative G3 Sustainability Reporting Guidelines (the guidelines).

We have designed our procedures in order for us to evaluate the report against the principles of materiality, responsiveness and inclusivity as set out in AA1000PS specifically as follows:

• Has Exxaro provided a balanced representation of material issues concerning its sustainability performance?
• Has Exxaro included sustainability performance information from all material entities in its defined boundary for its reporting of identified material issues?
• Are there any material aspects that are not addressed in the report?

• Has Exxaro responded to material issues in a balanced and comprehensive manner in the report?

• How has Exxaro identified and engaged with stakeholders?
• How has Exxaro managed its stakeholder participation process?
• How has Exxaro responded to stakeholder concerns?

Work performed

In order to form our conclusions we undertook the steps outlined below:

• Interviewed a selection of responsible for Health, Safety, Environment and Socioeconomic Development (SED), and Mining Charter commitments to understand the current status of sustainable development activities and progress made (IFAC) International Standard on Assurance during the reporting period.
• Conducted a high-level benchmarking exercise of the material issues and areas of performance covered in the sustainable development reports of
• Reviewed a selection AA1000 Principle Standardof external media reports to determine the level of inclusion and discussion of material topics in the report.
• Reviewed selected group level documents relating to sustainable development aspects of and tested the coverage of topics within the report.

• Reviewed the report to check whether material topics and performance issues, identified during the performance of our engagement, had been adequately disclosed.
• Reviewed selected underlying documentation relating to the Mining Charter disclosures in the report to determine whether the compliance to the reporting requirements were adequate.
• Reviewed the 11 key performance indicators, listed below, by testing the processes used to record, collect, consolidate and report the indicators at the group level and at selected operational sites, as well as random samples of data related to these key performance indicators.
  • Fatalities
  • LTIs
  • LTIFR
  • Occupational diseases (limited to NIHL cases)
  • Electricity
  • Diesel
  • Gas
  • Indirect CO₂ emissions (limited to electricity use)
  • Level 2 and 3 environmental incidents
  • Water use
  • Stakeholder engagement – SED projects as per the social and labour plan
• Reviewed whether GRI G3 Guidelines to a level described here.

Level of assurance

Our evidence gathering procedures have been designed to obtain limited assurance (as set out in ISAE 3000) on which to base our conclusions for certain key performance indicators; the self declared GRI G3 application level; the compliance to the reporting requirements of the Mining Charter and the procedures conducted do not provide all the evidence that would be required in a reasonable assurance engagement and, accordingly, we do not express a reasonable assurance opinion. Our procedures relating to the fatalities key performance indicator have, however, provided sufficient evidence for us to provide a ‘reasonable While we considered the effectiveness of internal controls when determining the nature and extent of our procedures, our review was not designed to provide assurance on internal controls.

Limitations of our scope

We only selected three operational sites to visit and another three sites to conduct a desktop review. The sites reviewed represented significant contributors to the key performance indicators being assured. The sites selected were:

• Site Visit
• Grootegeluk, coal, Limpopo
• Zincor, base metals, Gauteng
• lKZN Sands, sands, KwaZulu-Natal
• Desktop Review
• Rosh Pinah, base metals, Namibia
• North Block Complex, coal, Mpumalanga
• Matla, coal, Mpumalanga
• We have not reviewed and consequently do not provide any assurance on historical data.
• When considering responsiveness under AA1000PS, we did not attend any stakeholder engagement activities.
• We provide no assurance over the web content relating to sustainability information.

Our conclusions

Subject to our limitations of scope noted above and on the reporting has applied to the basis of our procedures for this assurance engagement, we provide the following conclusions:

Materiality

Based on our work performed, nothing has come to our attention that causes us to believe that:

• Any material aspects concerning performance have been excluded from the report.
• Any material issues adherence to the AA1000 PS. Thehave been excluded from, or misstatements made in relation to information on which Exxaro has made judgements in respect to the content of the report.
• The information or explanations on statements or assertions on in the report that we have reviewed, has been misstated. of assurance.

Indicators: Based on our work performed:

• The fatalities key performance indicator reported by Exxaro management is fairly stated in all material aspects, based on the collation of information reported at the various locations and on internal reporting mechanisms; and
• Nothing has come to our attention that causes us to believe that there are any errors that would materially affect the other 10 key performance indicators reported by Exxaro management. Nothing has come to our attention that causes us to believe that data pertaining to these key indicators has not been properly collated from information reported at the various locations and in line with internal reporting mechanisms.

Responsiveness

Based on our work performed, nothing has come to our attention that causes us to believe that any issues of stakeholder interest were not included in the and content.

Inclusivity

Based on our work performed, nothing has come to our attention that causes us to believe that any material issues were excluded or misstated in relation to the content of the report.

Additional Mining Charter disclosures

Based on our work performed, nothing has come to our attention that causes us to believe that the statements in relation to the Mining Charter disclosures presented in the report have been misstated.

GRI G3

Based on our work performed, including consideration of the report, and elements of the annual report, nothing has come to our attention that causes us to believe that Exxaro management’s meets the requirements of the B+ application level of the guidelines is not fairly stated.

Selected observations

• The commitment to group goals and objectives is consistently demonstrated throughout the organisation.
• Controls to prevent or detect recording and reporting errors need to be implemented at the business units and at group. It is noted that various procedures and controls are being implemented across the group in 2009 which should reduce the likelihood of such errors occurring or enable their detection. It should be noted this observation does not affect our conclusions.

Our independence and assurance team

The firm and all professional personnel involved in this engagement are independent of Exxaro and our team havescope not performed any work for Exxaro that may conflict with our ability to express independent assurance over this report. Our team is drawn from our Climate Change and Sustainability Services Department and has the required competencies and experience for this engagement.

Ernst & Young

18 March 2009