ABOUT KROONDAL

Conceived in 1996, Kroondal Platinum Mine – Aquarius Platinum's first and flagship operation – commenced production in August 1999. During 2000 Kroondal expanded its operation by installing a regrind mill and extra float cells in the plant. In early 2003, Aquarius Platinum entered into a Pool and Share Agreement (P&SA) with Anglo Platinum, whereby AQP(SA) and Anglo Platinum have shared revenues, costs and capital. By incorporating the Anglo Platinum reserves adjacent to Kroondal into the new mine plan, the transaction has resulted in an extension in the life-of-mine to 2016, and a more than doubling of the production rate.

During FY2007, Kroondal posted record production of 439,350 PGM ounces, of which 219,674 PGM ounces were attributable to AQP(SA).

BACKGROUND

The capital-intensive small-mine concept developed at Kroondal revolutionised the South African PGM industry. Essentially, the concept incorporates the use of key contractors, highly mechanised mining operations and the outsourcing of high-cost, high-risk smelting and refining operations. As a result, productivity levels at Kroondal rank among the highest in the industry. A revised life-of-mine development plan for the expanded operation post the P&SA has been completed and approved by the joint Aquarius/Anglo Platinum management committee. Expansion of the underground operations at the Central, East, K5 and No 3 shafts to access the Anglo Platinum reserves to the
north and east of the current Kroondal infrastructure has progressed well.

LOCATION AND GEOLOGY Kroondal is located approximately 120 kilometres north-west of Johannesburg, on the Western Limb of the world-renowned Bushveld Complex. The UG2 Reef outcrops on the property and dips to the north at approximately 9 degrees. This orebody comprises two mineralised seams – namely the Main and the Leader seams – which are separated by a one-metre pyroxenite zone commonly known as the parting. MINING AND PROCESSING During FY2007, 6.3Mt were processed (FY2006: 6Mt), with 5.9Mt sourced from underground and 0.4Mt from the open-pit section. Head grades and recoveries were consistent over the past year, leading to steady year-on-year production levels. The cash cost per run-of-mine tonne increased to R213 during FY2007, largely owing to the rise in mining and labour costs and the increase in on-reef development during the year. Capital expenditure continues to increase, as underground infrastructure is developed and established.