EXX - Trading Statement for the six-month period ended 30 June 2019 EXXARO RESOURCES LIMITED Incorporated in the Republic of South Africa (Registration Number: 2000/011076/06) JSE share code: EXX ISIN: ZAE000084992 ADR code: EXXAY (“Exxaro” or “the Company”) TRADING STATEMENT FOR THE SIX-MONTH PERIOD ENDED 30 JUNE 2019 Shareholders are advised that Exxaro and its directors have reasonable certainty relating to the expected financial results of Exxaro for the six-month period ended 30 June 2019. Headline earnings per share (HEPS) for the six-month period ended 30 June 2019 are expected to increase between 35% and 47%, while attributable earnings per share (AEPS) for the six- month period ended 30 June 2019 are expected to increase between 97% and 109% compared to the six-month period ended 30 June 2018. This is mainly due to an increased contribution from our equity-accounted investments which more than offsets the lower EBITDA* contribution from our managed operations. Both HEPS and AEPS are based on a weighted average number of shares of 251 million. EBITDA for the six-month period ended 30 June 2019 are expected to decrease between 22% and 10% compared to the six-month period ended 30 June 2018. Earnings from the coal business were adversely affected by lower domestic sales volumes, a lower average price per tonne achieved on exports due to the lower benchmark API4 price, as well as higher provision for rehabilitation and higher distribution costs. This was somewhat offset by higher export volumes and a favourable ZAR/USD exchange rate. After adjusting for non-core items for both financial years Core HEPS** for the six-month period ended 30 June 2019 are expected to increase between 13% and 25% compared to the six-month period ended 30 June 2018. Core EBITDA** for the six-month period ended 30 June 2019 are expected to decrease between 36% and 24%, compared to the six-month period ended 30 June 2018 due to the reasons mentioned above. Six-month period Six-month period ended 30 June 2018 ended 30 June 2019 Reported earnings Expected range Expected earnings HEPS 1 222 cents 35% - 47% increase 1 650 – 1 796 cents AEPS 1 268 cents 97% - 109% increase 2 498 – 2 650 cents EBITDA R3 766 million 22% - 10% decrease 2 937 – 3 389 (R Million) Core HEPS*** 1 001 cents 13% - 25% increase 1 131 – 1 251 cents Core EBITDA R3 954 million 36% - 24% decrease 2 544 – 2 994 (R Million) Shareholders are advised that Exxaro will release its reviewed financial results for the six-month period ended 30 June 2019 on 22 August 2019. Further details are available on our website, www.exxaro.com. The forecast financial information on which this trading statement is based has not been reviewed, audited nor reported on by Exxaro’s external auditors. This statement is issued in compliance with the JSE Listings Requirements. *EBITDA is calculated by adjusting net operating profit before interest, tax, depreciation, amortisation, impairment charges and net loss or gain on disposal of investments and assets (including translation differences recycled to profit or loss). **Core HEPS and core EBITDA are calculated after adjusting for non-core items. Core HEPS is based on a core weighted average number of shares of 332 million which is calculated by deducting Exxaro’s 24.9% shareholding in Eyesizwe RF Proprietary Limited from Exxaro’s total shares in issue. *** Core AEPS are the same as core HEPS. These are not defined terms under International Financial Reporting Standards (IFRS) and may not be comparable with similarly titled measures reported by other companies. The afore-mentioned adjustments are the responsibility of the directors of Exxaro. The adjustments have been prepared for illustrative purposes only and due to their nature, may not fairly present Exxaro´s financial position, changes in equity, results of operations or cash flows. Editor’s note: Exxaro is one of the largest South African based diversified resources companies, with interests in the coal, titanium dioxide, iron ore and energy. www.exxaro.com Enquiries: Mzila Mthenjane, Executive head: Stakeholder affairs Tel: + 27 12 307 7393 Mobile: +27 83 417 6375 Email: Mzila.mthenjane@exxaro.com Pretoria 14 August 2019 Sponsor: Absa Bank Limited (acting through its corporate and investment banking division). Date: 14/08/2019 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.