Assurance is implemented in terms of a three-tier system, aligned with the guidelines of Exxaro's Mineral Resource and Mineral Reserve reporting procedure, summarised as follows.

In 2020, tier 1 assurance was undertaken for the Grootegeluk, Matla, Dorstfontein and Forzando operations. The Mineral Resource fact packs indicated that an update of the Coal Resource estimate was required either due to additional information being available or as recommended by previous audits. Geological data validation, data analysis and subsequent updating of geological and structural models were concluded in the reporting period. These models were peer reviewed by geosciences central experts for the four operations and the models were signed off by the applicable competent persons and their supporting technical teams. Findings from the reviews were incorporated during the model update process. All the Mineral Reserve fact packs of Exxaro operations were reviewed in the reporting year. The Grootegeluk, Belfast and Leeuwpan LoM plans were subsequently updated. In addition, the Grootegeluk and Belfast strategies were reviewed, leading to optimisation of the LoM plans. The Leeuwpan mine layout was reviewed to accommodate the OL power line and bridge pit as well as an overburden (OVB) dump. An internal review of Matla's LoM plan was carried out in March 2020 with no findings reported.

Table 2 below indicates the tier 2 technical assurances conducted during the reporting year. Where technical findings were identified during reviews that may materially impact the business, remedial actions were recommended to ensure project robustness and shareholder return.

Table 2: Tier 2 technical assurances conducted in the reporting year with general points addressed

On tier 3, in 2020, process audits were done by EY for the Belfast operation. The audit scope was limited to the following modules:

• Module 1: Process audit
• Module 2: Technical review on specific sections of the Coal Resources and Coal Reserves estimation process (covered in a separate report)

Conclusion: The overall review of the Coal Resources and Reserves, as well as the LoM plan processes, are in line with industry norms. EY identified housekeeping recommendations that will enhance the process. No material findings were reported while some improvements have been implemented. The additional recommendations noted in the audit are summarised in the table below and corrective measures, where applicable, were put in place.

Coal Resources

The Coal Resource has been prepared and documented in accordance with the SAMREC Code and SANS 102320:2004 requirements and the process and methodologies are considered fit-for-purpose and considered to be within industry norms. The review of the geological model and Coal Resource classification has identified a number of recommendations, which are largely considered good housekeeping to improve future model and as such do not materially affect the Coal Resource estimate.

Table 3: Tier 3 external audit additional recommendations

Coal Reserves

The Coal Reserves haVE been prepared and documented in accordance with the SAMREC Code guideline and the mine design and LoM scheduling processes as per Exxaro's standard procedures. The overall process reviewed is in line with industry norms. The review of the mine design and LoM scheduling has identified a number of recommendations, which are largely considered as good housekeeping to improve the process in future. As such, they do not materially affect the current estimated Coal Reserves.