GlobalMineralResourceandValuationReportingStandards

TheirEvolution,ConvergenceandEffectivenessMattMullins

Chairperson–SAMCODESStandardsCommittee

THE SAMCODES FAMILY OF CODES AND GUIDELINES

• SAMREC–ReportingofExplorationResults,MineralResources/Reserves(SolidMineralsonly)

• SAMVAL–ReportingofValuationofMineralAssets(SolidMineralsonly)

• SAMOG–ReportingandValuationofOil&Gas

CODES

• SAMESG–Environmental,Social&Governance• Diamond/Gemstonespecificrequirements

GUIDELINES

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q ThepurposeoftheSAMCODESStandardsCommittee(SSC)istodevelop,maintain,administerandpromotetheSouthAfricanReportingCodescollectivelyknownasSAMCODES.TheSSCisresponsiblefor:§  Promotingtheawareness(anduse)ofSAMCODES

§  Undertakingeducationandtraining§  UndertakingperiodicreviewsoftheSAMCODESasmaybenecessary•  InputfromCRIRSCO•  Resultsfromcomplaints•  Feedbackfromtrainingprogrammes•  Commentsfrombroaderindustryplayers

q ComplaintsProcedureinassociationwithProfessional/Statutory/RPObodies

q ReadersPanel(inassociationwithJSE)

q RPOStatusforCompetentPersonscompilingreportsforotherjurisdictions(international/local)

q InternationalAlignment§  SSCisrepresentedontheCRIRSCO

committeebytwomembersfromSAMREC§  (SAMREC’sKenLombergisincomingChair)§  SSCisrepresentedonIMVALbytwo

membersfromSAMVALandoneobserverfromSAMOG

§  TiestoUN-ECE(UNFC)•  AfricanMineralsDevelopmentCentre(AMDC)•  AMEREC/PARC

SAMCODES STANDARDS COMMITTEE (SSC)

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ChamberofMinesofSouthAfrica(COM)

CouncilforGeoscience(COG)

DepartmentofMineralResources(DMR)

EngineeringCouncilofSouthAfrica(ECSA)

FinancialServicesBoard(FSB)

GeologicalSocietyofSouthAfrica(GSSA)

GeostatisticalSocietyofSouthAfrica(GASA)

GeneralCounciloftheBar(GCB)

InvestmentAnalystsSocietyofSouthAfrica(IASSA)

InstituteofMineSurveyorsofSouthAfrica(IMSSA)

JSELimited(includingtheChairsoftheReadersPanels)

LawSocietyofSouthAfrica(LSSA)

SouthAfricanGeomaticsCouncil(SAGC)

SouthAfricanCouncilforNaturalScientificProfessions(SACNASP)

SouthAfricanInstituteofCharteredAccountants(SAICA)

SouthernAfricanInstituteofMiningandMetallurgy(SAIMM)

SouthAfricanOil&GasAgency(SAOGA)

ChairpersonsofallCommittees

SAMCODES STANDARDS COMMITTEE (SSC)

SAMCODESStandardsCommittee

SAMRECCommittee

DiamondsWorkingGroup

CoalWorkingGroup

SAMVALCommittee

SAMOGCommittee

SAMESGCommittee

q  Operatesunderjointauspicesof/financingfromSAIMMandGSSA§  Annualoversightmeetingsandquarterlyreports§  Rotatingchair,withatwoyeartenure§  SSChasfourformalmeetingsperyear§  Codecommitteesmeettwiceayear,orasnecessary

q  TermsofReference§  Varioussupportingdocuments

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JORCCommittee

SAMRECWGFormed

Poseidon

Nickel

1971

1989 JORCCodePublished

CMMIinitiative(CRIRSCO)

1994

1997 DenverAccord

1992

2000SAMRECCode

Bre-XScandal

Adoptedby:TheJSETheProfessionalBodies–GSSAandSAIMMAndbytheStatutoryBodies-SACNASP,

ECSA,SAGC

SAMCODES HISTORY OF DEVELOPMENT

1992 SMEGuidePublished

1999 CRIRSCO/UNECEAgreement

IMMCodePublished1991

(Australia,Canada,SouthAfrica,UK,USA)

CIMCodepublished2001

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CRIRSCOformed2002

SAMVALCode

Published2008

SAMVALWGFormed2002

SAMCODES HISTORY OF DEVELOPMENT

SAMRECUpdate*2007

SSCEstablished2008

SAMOGCodePublished2015

SAMESGWGFormed2015

SAMOGWGFormed2014

SAMCODESUpdate&

Consolidation2016

SAMREC/SAMVALCodeupdate2009

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SAMCODESLaunchattheJSE,2016

SAMREC/SAMVALLaunch,2007

SAMCODES GOVERNANCE

SAMCODEShasmultipletiersofGovernance

q ComplianceisaconditionofMembershipoftheSAIMMandtheGSSA

q TheRecognisedProfessionalOrganisation(RPO)systemrequirescompliancefromparticipatingorganisations

q TheStatutorybodiesrequirecompliance

q TheJSEReadersPanel(SolidMineralsandOil&Gas):§  The…ReadersPanel(“thePanel”)isanindependentpanelofexpertsestablishedintermsofsection12oftheJSELimited(“JSE”)ListingsRequirements.

§  MembersofthePanelareremuneratedbytheJSEasperagreementwiththePanel

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q SAMCODESawardstwoannualSQUIRRELAWARDSthroughtheInvestmentAnalystsSociety

q PreviouswinnersoftheSAMREC/IASSAawardare:

2016AngloGoldAshanti2015AngloGoldAshanti2014GoldFieldsandSibanyeGold(jointly)2013GoldFields2012SibanyeGold2011GoldFields2010HarmonyGoldMiningCompany

SAMCODES/ INVESTMENT ANALYSTS SOCIETY OF SA

The2017SAMREC/IASSASquirrelawardwaspresentedtoImpalaPlatinumHoldingsLimitedatthe32ndAnnualAwardsCeremonyTheawardisgivenfortheAnnualIntegratedReport(“AIR”)adjudicatedbestintermsofcompliancewiththeJSEListingRequirementsandtheSAMRECCode.

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SAMCODES/JSE INTERNATIONAL RECIPROCITY

TheSSCadvisestheJSEwhethertograntreciprocitytoProfessionalBodiesinorderthattheirmembersmaysubmitreportstotheJSEincompliancewiththeJSElistingrequirements.ThecriteriaforaRPOarethattheorganisationmust:

q Beaself-regulatoryorganisationcoveringprofessionalsintheminingand/orexplorationindustry;

q Admitmembersprimarilyonthebasisoftheiracademicqualificationsandexperience;

q Requirecompliancewiththeprofessionalstandardsofcompetenceandethicsestablishedbytheorganisation;and

q Haveacodeofethicsandadisciplinarycode,whichincludesthepowertosuspendorexpelamember.

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q AmericanInstituteofProfessionalGeologists

q AssociationofProfessionalEngineersandGeoscientistsofBritishColumbia

q AustralianInstituteofGeoscientists

q CanadianCouncilofProfessionalGeoscientists

q ComisiónCalificadoradeCompetenciasenRecursosyReservasMineras(ChileanMiningCommission)

q EuropeanFederationofGeologists

q EngineeringCouncilofSouthAfrica

q GeologicalSocietyofLondon

q AustralasianInstituteofMiningandMetallurgy

q GeologicalSocietyofSouthAfrica

q  InstituteofGeologistofIreland

q  InstituteofMaterials,MineralsandMining

q MiningandMetallurgicalSocietyofAmerica

q ProfessionalSocietyofIndependentExpertsinSubsoilUseoftheRepublicofKazakhstan

q RussianSocietyofSubsoilUseExperts(OERN)

q SocietyofMining,MetallurgyandExploration

q SouthAfricanCouncilforNaturalScientificProfessions

q SouthAfricanCouncilforProfessionalandTechnicalSurveyors

q SocietyofPetroleumandEvaluationEngineers(SPEE)

q Thisisasubsetofthetotallistof31RPO’s

SAMCODES/JSE INTERNATIONAL RECIPROCITY

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q  CRIRSCOformedin1994undertheauspicesoftheCouncilofMiningandMetallurgicalInstitutes(CMMI)

q  Formallyestablishedin2002withthepurposeofestablishingfundamentalstandarddefinitionstobeusedasthebasisforthereportingcodesofallmembernations.

§  CRIRSCOtemplatehas15definitionsand3guidingprinciples

§  Meetannuallytodiscusson-goingrequirements

q  Mineralreportingcodesandguidelines(PublicReporting):

§  Australasia(JORC),Canada(CIM),Europe(PERC),SouthAfrica(SAMREC)andtheUSA(SME).

§  Othercountriesaddedcontinually

q  Thecombinedvalueofminingcompanieslistedonthestockexchangesofthesecountriesaccountsformorethan80%ofthelistedcapitaloftheminingindustry

§  Anyforeign-listedcompanyinAfricawillbereportingaccordingtooneoftheseCRIRSCOCodes(dependingonwheretheyarelisted),somelocally-listedcompanieswillalsodosobychoice.

§  AnyAfricancompanylistedinternationallywillalsolikelybereportingaccordingtooneoftheseCodes.

§  Almostallinternationalinvestmenthouses,financialinstitutionsalsorequirecompliancewhensupplyingsignificantcapital

INTERNATIONAL RELATIONSHIPS

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INTERNATIONAL CONVERGENCE

q ThroughtheCRIRSCOandtheIMVALtemplatesweareachievingconvergenceinwhatareintheCodes

q TheCRIRSCOTemplateiscurrentlybeingupdated

q TheInternationalMineralValuationCommittee(IMVAL)wasformedin2012inAustralia,primarilytodevelopagloballyacceptablemineralassetvaluation(MAV)templatebyharmonisingthevaluationcodes

q IMVALincludesMineralsandOil&Gas

q Thereisflexibilityforthetemplatetoevolveovertimetoincludeaspectsnotinitiallyaddressed,suchasvaluationofmineralcorporationsandtheirrespectivesecurities,andvaluationofoilandgasassets.

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EFFECTIVENESS OF THE CODES

q Thereislimitedco-brandingofthethreemainReportingareas:MineralsReporting,MineralsValuation,andOil&GasReportingandValuation

q ThereislimitedacceptanceinsomejurisdictionsoftheCodesontherelevantSecuritiesExchanges(e.g.VALMINisnotacceptedontheASX)

q GlobalacceptanceofValuationreportingisstillsubjecttoconsiderablevariation

q Governanceisvariablyapplied,andisstilltooreliantonthe“complaint”procedure

q InternationalReciprocityisnotalwaysclear(e.g.OSConlyrecognisingFellowsoftheAusIMM)

q InternationalconformityinO&GisverydependentonresolvingthedifferencesbetweenPRMSandCOGEH

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