Kumba Iron Ore (KIO), a predominantly South African based mining and natural resource company, recognises that a common approach to reporting Ore Reserves and Mineral Resources to the KIO Board, shareholders and investment community is an essential aspect of best practise and good governance.

Therefore KIO will maintain a common approach to the reporting of Ore Reserves and Mineral Resources. Such reporting will comply with South African reporting standards i.e. the SAMREC Code (The South African Code for the reporting of Exploration Results, Mineral Resources and Mineral Reserves) – 2007 edition, or international reporting standards (if applicable) as well as the regulations set by the Johannesburg Stock Exchange (or other stock exchanges if applicable).

KIO has adopted the following principles, which will be used as the basics for reporting to shareholders and the investment community, which are the principles that govern the operation and application of the SAMREC reporting code, namely:

• Materiality:  all the relevant information which investors and their professional advisors would reasonably require, and expect to find in the report, for the purpose of making a reasoned and balanced judgement regarding the Exploration Results, Mineral Resources and Ore Reserves being reported.
• Transparency:  the reader of a Public Report is provided with sufficient information, the presentation of which is clear and unambiguous, to understand the report and is not misled.
• Competency:  the Public Report is based on work that is the responsibility of suitably qualified and experienced persons who are subject to an enforceable professional Code of ethics.
• Impartiality:  the author of the Public Report is satisfied that his work has not been unduly influenced by the organisation, company or person commissioning a Public Report or a report that may become a Public Report, that all assumptions are documented, and that adequate disclosure is made of all material aspects that the informed reader may require, to make a reasonable and balanced judgement thereof.

In terms of the policy, Kumba Iron Ore will:

• Conform to the currently recognised reporting codes developed in the various regions where KIO operations are based, with the SAMREC Code regarded as the minimum KIO reporting standard.
• Ensure compliance with prevailing national/regional regulations as well as relevant stock exchange regulations.
• Through the company prepare and routinely update on an annual basis summary reports giving details of the Ore Reserves and Mineral Resources and the basis from which they were derived for publication in the Kumba Iron Ore Annual Report.
• Only report Mineral Resources and Ore Reserves after it has been signed-off by appointed Competent Persons whom have a clear understanding of how it was derived and are under no circumstances influenced by Kumba Iron Ore to report in any manner that violates one of the principles listed in this policy.

In terms of the KIO policy “mineral/ore” includes only iron ore as a commodity, and the term Ore Reserves includes “Mineral” Reserves as reported under the SAMREC Code.