ANNUAL REPORT 2014

Contents Mission and strategic initiatives

IFC OVERVIEW

Mission and strategic initiatives IFC

Highlights 1

Group statistics 2

Major Group companies 4

History and milestones 6

8 LEADERSHIP REVIEW

13 OPERATIONAL REVIEW

Tharisa Minerals 13

Arxo Metals 17

Arxo Resources 17

Arxo Logistics 18

19 MINERAL RESOURCE AND MINERAL RESERVE STATEMENT

24 GOVERNANCE

Board of directors 24

Corporate governance 26

Remuneration report 30

34 ABRIDGED ANNUAL FINANCIAL STATEMENTS

47 GLOSSARY

51 SHAREHOLDER INFORMATION

Analysis of shareholders 51

Notice of Annual General Meeting 52

Form of proxy 57

Corporate information IBC

Tharisa is an integrated resource group incorporating mining and the processing, beneficiation, marketing, sales and logistics of PGMs and chrome concentrates.

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Page reference for further reading within this report

Further reading online at www.tharisa.com

MISSION

To maximise shareholder returns through innovative

exploitation of mineral resources in a responsible

manner

STRATEGIC INITIATIVES

Implementation of optimisation

initiatives to maximise value extraction

Growth through innovative research

and development

Growth through accretive acquisition,

development and operation of large scale

and low cost projects that are in or

close to production

Leveraging off the established platform for

expansion into multi-commodities with

geographic diversity

Tharisa plc A

nnual Report 20141

OPERATIONAL REVIEWGOVERNANCE LEADERSHIP REVIEWMINERAL RESOURCE AND MINERAL RESERVE

STATEMENT

ABRIDGED ANNUAL FINANCIAL STATEMENTS

GLOSSARYSHAREHOLDER INFORMATION

OVERVIEW

Highlights

CH

RO

ME

CO

NC

EN

TR

AT

E

PR

OD

UC

TIO

N

1.085 M

t9.1%

(2013: 1.193 Mt)

production of 148.2 kt of higher value chem

ical and foundry grade concentrates (2013: 62.5 kt)

PG

M P

RO

DU

CT

ION

(5P

GE

+ A

u)

78.2

koz

(2013: 57.4 koz)

36.2

%

NE

T C

AS

H G

EN

ER

AT

ED

FR

OM

OP

ER

AT

ION

S

US$

22.3

m(2013: utilised U

S$3.0m)

832 M

t(2013: 836 M

t)

123 M

t(2013: 127 M

t)

RE

VE

NU

E

US$

240.7m 11.7

%

notwithstanding low

er chrome

comm

odity prices

(2013: US$215.5m

)

PO

SIT

IVE

OP

ER

AT

ING

PR

OF

IT

US$

5.9m

(2013: loss US$0.7m

)

HE

AD

LIN

E L

OS

S

PE

R S

HA

RE

OF

US$

0.2

0(2013: U

S$0.19)M

INE

RA

L R

ES

OU

RC

E

6.9

%(2013: 6.5%

)

EB

ITD

A M

AR

GIN

MIN

ER

AL

RE

SE

RV

E

Tharisa plc A

nnual Report 20142

Group statistics

20142013

2012

2011

Tonnes m

illedkt

3 9133 8

66

1 0

94

505

PG

M o

unces p

roduced

koz

78.257.4

8.0

–

PG

M reco

very%

48.843.7

28.3

–

Metallu

rgical grade ch

rom

e concen

trate to

nnes p

roduced

kt937

1 1

30

339

107

Foundry an

d ch

emical grad

e chro

me

concen

trate tonnes p

roduced

kt148

63

––

Chro

me yield

%27.7

30.9

31.0

21.2

Gro

up reven

ue

US$

’000

240 731215 4

55

53 8

89

28 1

28

Gro

ss pro

fit/(loss)

US$

’000

33 91625 8

85

(8 2

25)

(1 2

47)

Net cash

flow

s from

/(used

in) o

peratin

g activities

US$

’000

22 356(2

956)

(9 1

95)

(49 2

57)

Net lo

ss for th

e yearU

S$’0

00

(54 873)(4

7 4

43)

(29 9

71)

(88 5

48)

EBIT

DA

US$

’000

16 50713 9

30

(28 2

56)

(33 6

48)

Head

line lo

ssU

S$’0

00

(48 925)(4

6 7

62)

(26 0

18)

(84 8

20)

Head

line lo

ss per sh

areU

S$

(0.2)(0

.2)

(3.4

)(1

2.8

)

Gro

ss pro

fit/(loss) m

argin%

14.112.0

(15.3

)(4

.4)

Cap

ital expen

ditu

reU

S$’0

00

24 28924 3

16

189 0

15

40 6

98

On-m

ine lo

st time in

jury freq

uen

cy rate*

0.140.1

40.1

90.3

4

On-m

ine em

plo

yees inclu

din

g contracto

rs1 938

1 6

88

1 5

62

1 0

32

Oth

er Gro

up em

plo

yees66

67

67

61

* per 2

00 0

00 hours w

orked

Tharisa plc A

nnual Report 20143

OVERVIEWOPERATIONAL REVIEWGOVERNANCE LEADERSHIP REVIEWMINERAL RESOURCE AND MINERAL RESERVE

STATEMENT

ABRIDGED ANNUAL FINANCIAL STATEMENTS

GLOSSARYSHAREHOLDER INFORMATION

Net cash flow

s from/(used in) operating activities (U

S$ m

illion)

-50

-35

-20 -5

10

25

20142013

20122011

22.4

(3.0)(9.2)

(49.3)

Gross profit/(loss) (U

S$ m

illion)

-10 0

10

20

30

40

20142013

20122011

33.9

25.9

(8.2)(1.3)

Group revenue (U

S$ m

illion)

0

50

100

150

200

250

20142013

20122011

240.7

215.5

53.928.1

PGM

ounces produced (koz)

0

10

20

30

40

50

60

70

80

20142013

20122011

78

57

8

Chrom

e concentrate tonnes produced (kt)

0

300

600

900

1200

1500

20142013

20122011

14863

339

1 130

937

107

Metallurgical grade tonnes produced

Foundry and chemical grade tonnes produced

Revenue %

per reporting segment on FC

A basis (%

)

0

20

40

60

80

100

20142013

20122011

56.860.7

99.1100

0.9

39.343.2

0

PGM

Chrom

e

Tharisa plc A

nnual Report 20144

Major G

roup companies

INV

ESTM

ENT

HO

LDIN

G C

OM

PAN

Y

Pro

duce

s specialise

d h

igher

margin

chem

ical and fo

undry

grade ch

rom

e conce

ntrate

s an

d re

search

es an

d d

eve

lops

opportu

nitie

s for o

ptim

isation

and b

eneficiatio

n

Marke

ts and se

lls metallu

rgical grad

e chro

me co

nce

ntrate to

cu

stom

ers in

Asia an

d e

lsew

here

OPER

ATIN

G/PRO

DU

CIN

G C

OM

PAN

IESA

rxo M

etals(South A

frica)

100%

*

TRAD

ING

/SERVICE PRO

VIDER C

OM

PAN

IESA

rxo R

esources(C

yprus)100%

*

* The percentages reflect effective shareholding interest in the various subsidiaries.

Tharisa plc A

nnual Report 20145

OVERVIEWOPERATIONAL REVIEWGOVERNANCE LEADERSHIP REVIEWMINERAL RESOURCE AND MINERAL RESERVE

STATEMENT

ABRIDGED ANNUAL FINANCIAL STATEMENTS

GLOSSARYSHAREHOLDER INFORMATION

Tharisa plc(C

yprus)

Pro

duce

s PG

Ms an

d m

etallu

rgical and

chem

ical grade ch

rom

e conce

ntrate

s from

a sh

allow

open p

it min

e near R

uste

nburg,

No

rth W

est P

rovin

ce. T

he G

enesis an

d

Voyage

r plan

ts have a co

mbin

ed d

esign

cap

acity of 4

.8 M

t of R

OM

ore p

er an

num

Man

ages rail an

d ro

ad d

istributio

n of P

GM

co

nce

ntrate an

d ch

rom

e conce

ntrate

s pro

duce

d b

y the T

harisa M

ine to

custo

mers

in South A

frica, and to

inte

rnatio

nal cu

stom

ers

via port facilitie

s in Rich

ards B

ay and D

urb

an

for sh

ipm

ent to

inte

rnatio

nal cu

stom

ers

Tharisa

Minerals

(South Africa)

Thari

Resources

(South Africa)

Tharisa

Com

munity

Trust(South A

frica)

74%

*

20%

6%

Arxo

Logistics(South A

frica)

100%

*

26%

BE

E S

HA

RE

HO

LD

ER

S

Tharisa plc A

nnual Report 20146

History and m

ilestones

PRIO

R TO

AC

QU

ISITIO

N O

F TH

AR

ISA M

INER

ALS BY

TH

AR

ISA PLC

20062007

2008

20062007

2008

Eskom crisis Global financial crisis

Tharisa plc

Feb 2008

Tharisa Lim

ited

(subseq

uen

tly re

nam

ed as

Tharisa p

lc) was

inco

rporate

d

Sept 2008

Gran

ted fu

rther

min

ing righ

t for

certain m

inerals

Oct 2008

Com

mence

d

trial min

ing

Nov 2007

Gran

ted

min

ing

rights

Mar 2006

Tharisa

Min

erals

inco

rporate

d

Mar 2008

Purch

ased

additio

nal

min

ing righ

ts

Dec 2008

US$

65 m

illion

seed cap

ital raising

Tharisa

Minerals

(South Africa)

PRIO

R TO

AC

QU

ISITIO

N O

F TH

AR

ISA M

INER

ALS BY

TH

AR

ISA PLC

Mar 2006 and

Mar 2007

First pro

spectin

g righ

ts secu

red

Tharisa plc A

nnual Report 20147

OVERVIEWOPERATIONAL REVIEWGOVERNANCE LEADERSHIP REVIEWMINERAL RESOURCE AND MINERAL RESERVE

STATEMENT

ABRIDGED ANNUAL FINANCIAL STATEMENTS

GLOSSARYSHAREHOLDER INFORMATION

Mar 2009

Estab

lished

pilo

t plan

t and

com

mence

d

trial pro

ductio

n

POST

AC

QU

ISITIO

N O

F TH

AR

ISA M

INER

ALS BY

TH

AR

ISA PLC

Tharisa

Minerals

(South Africa)

20092010

20112012

20132014

Tharisa plc

POST

AC

QU

ISITIO

N O

F TH

AR

ISA M

INER

ALS BY

TH

AR

ISA PLC

Mar 2009

Acq

uire

d

a 74%

sh

arehold

ing

in Tharisa

Min

erals

Nov 2009

Com

mence

d

pro

ductio

n

of ch

rom

e

conce

ntrate

May 2010

Agre

em

ent

regard

ing

strategic

inve

stment

by Fu

jian

Wuhan

g and

HeY

i Min

ing

Apr 2011

US$15

0m

pre

-listing

capital raisin

g co

mple

ted

Jan 2011

US$95 m

illion

inve

stment

by Fu

jian

Wuhan

g and

HeY

i Min

ing

Aug 2011

Tharisa

Com

munity

Tru

st re

gistere

d

Nov 2011

100 ktp

m

RO

M

achie

ved

July 2013

Challe

nge

r fo

undry an

d

chem

ical grad

e pro

ject

com

ple

ted

Apr 2014

Liste

d o

n the

JSE

Sep 2014

Com

missio

nin

g of h

igh energy

PG

M flo

tation

circuit

Jun 2014

Installatio

n

of tw

o

com

mercial

scale magn

etic

separato

r te

st units

Q4 2012

Exte

nsio

n

of o

pen p

it m

ine life to

23 ye

ars and

undergro

und

there

after

Feb 2012

Secu

red

pro

ject

finan

ce

facility of

ZA

R1 b

illion

Jul 2012

Favourab

le te

rms se

cure

d

from

Impala

Refin

ing

Service

s on

PG

M o

fftake agre

em

ent

Dec 2012

Com

ple

ted

constru

ction

of V

oyage

r plan

t

Tharisa plc A

nnual Report 20148

Our

young

com

pany

is on

course

to

achieve

our

key objectives.

Our b

usin

ess model h

as pro

ven itself in

a year full o

f challen

ges, where

we to

ok d

ecisive action to

overco

me o

peratio

nal d

ifficulties.

Leadership review

Letter to stakeholders from the Executive C

hairman Loucas

Pouroulis, C

hief Executive

Officer

Phoevos Pouroulis

and Chief Finance O

fficer Michael Jones

Dear Stake

ho

lder

This is o

ur first A

nnual R

epo

rt as a public liste

d co

mpan

y.

In co

mpilin

g this re

po

rt we h

ave been gu

ided b

y mate

riality –

to

repo

rt co

ncise

ly o

n

those

issues

most

mate

rial to

our

stakehold

ers

and

our

ongo

ing

ability

to

create

value.

Mo

re detaile

d

info

rmatio

n

is availab

le o

n

our

website

,

ww

w.th

arisa.com

.

We

acknow

ledge

and

than

k our

man

y stake

hold

ers

who

have su

ppo

rted th

is Co

mpan

y and its visio

n sin

ce ince

ptio

n.

We th

ank o

ur sh

arehold

ers fo

r their b

elie

f in T

harisa, as w

ell

as those p

artners w

ho h

ave mad

e our su

ccesse

s possib

le.

Co

mplian

ce with

the in

tegrate

d re

po

rting re

quire

ments as p

er

Kin

g III is a pro

cess w

hich

the C

om

pan

y initiate

d in

2014

and w

ill

contin

ue to

impro

ve on.

This

year

Tharisa

contin

ued

to

imple

ment

its strate

gy to

beco

me

a le

adin

g natu

ral re

source

s co

mpan

y fo

cuse

d

on

origin

ating,

deve

lopin

g an

d

operatin

g m

ines

in

the

PG

M,

chro

me an

d ste

el raw

mate

rials secto

rs with

the co

ntin

ued

ramp-u

p in

pro

ductio

n o

f PG

M an

d ch

rom

e conce

ntrate

s at

the T

harisa M

ine, o

ur p

rincip

al operatin

g asset.

The T

harisa M

ine is lo

cated o

n th

e weste

rn lim

b o

f the B

ush

veld

Co

mple

x, th

e area o

f South

Africa th

at is at the ce

ntre o

f global

PG

M m

inin

g and p

roce

ssing. It is o

wned an

d o

perate

d b

y our

74%

held

, fu

lly B

EE

com

plian

t su

bsid

iary, T

harisa

Min

erals.

Tharisa is re

cogn

ised as b

ein

g a new

but su

bstan

tial pro

duce

r of

PG

Ms an

d ch

rom

e conce

ntrate

s. While P

GM

price

s softe

ned

durin

g the se

cond h

alf of 2

014, au

tom

otive cataly

tic conve

rter,

jew

elle

ry an

d oth

er

consu

mptio

n w

ill co

ntin

ue

to underp

in

dem

and fo

r these p

recio

us m

etals.

The C

om

pan

y is a substan

tial chro

me co

nce

ntrate p

roduce

r,

accountin

g for 9

% o

f total C

hin

ese ch

rom

e impo

rts and 16

%

of S

outh

African

expo

rts to C

hin

a in 2

014. W

hile

the ch

rom

e

secto

r has b

een n

egative

ly impacte

d b

y the slo

w rate o

f global

eco

no

mic

reco

very

in th

e past

year,

this

impact

has

largely

been m

itigated b

y Tharisa’s ab

ility to co

-pro

duce b

oth

PG

M

and ch

rom

e conce

ntrate

s and, im

po

rtantly, to

pro

duce h

igher

value-ad

ded ch

em

ical and fo

undry grad

e chro

me co

nce

ntrate

s

for d

iffere

nt m

arkets.

While

chro

me

conce

ntrate

price

s have

been

suppre

ssed,

fundam

ental

dem

and fo

r ch

rom

e co

nce

ntrate

, esp

ecially

in

Chin

a, rem

ains stro

ng. A

s global gro

wth

gains tractio

n, o

ur ab

ility

to p

roduce b

oth

PG

M an

d ch

rom

e conce

ntrate

s consiste

ntly to

acknow

ledge

d q

uality stan

dard

s, positio

ns T

harisa to

explo

it

what w

e belie

ve is an in

evitab

le and co

nsid

erab

le upsid

e.

Lo

ucas P

ou

rou

lis

EXEC

UT

IVE C

HA

IRM

AN

Ph

oevo

s Po

uro

ulis

CH

IEF EXEC

UT

IVE O

FFICER

Mic

hael Jo

nes

CH

IEF FINA

NC

E OFFIC

ER

Tharisa plc A

nnual Report 20149

OVERVIEWOPERATIONAL REVIEWGOVERNANCE LEADERSHIP REVIEWMINERAL RESOURCE AND MINERAL RESERVE

STATEMENT

ABRIDGED ANNUAL FINANCIAL STATEMENTS

GLOSSARYSHAREHOLDER INFORMATION

JSE LISTIN

G

On

10

April

2014

, th

e

Co

mpan

y liste

d

its o

rdin

ary sh

are

capital in

the “G

eneral M

inin

g” secto

r of th

e Main

Board

of

the

Johan

nesb

urg

Stock

Exch

ange

. T

he

Co

mpan

y raise

d

US$47.9

millio

n

(ZA

R500

millio

n) in

te

rms

of

a private

place

ment

undertake

n

at th

e tim

e of

the

listing,

thro

ugh

the issu

e of n

ew

ord

inary sh

ares at Z

AR

38 p

er sh

are. A

s a

conse

quence o

f the listin

g, the issu

ed p

refe

rence sh

ares o

f the

Co

mpan

y were co

nve

rted in

to o

rdin

ary share

s.

It is

with

gre

at sad

ness,

how

eve

r, th

at w

e re

po

rt th

at

subse

quent to

the fin

ancial ye

ar end, o

ne o

f our e

mplo

yees,

Mr Jo

han

Raath

s, a 23-ye

ar old

instru

ment te

chnician

, lost h

is

life in a tragic accid

ent d

urin

g a routin

e main

tenan

ce shift. W

e

exte

nd o

ur sin

cere co

ndole

nce

s to M

r Raath

s’ family, frie

nds

and co

lleagu

es.

Safe

ty rem

ains o

ur u

tmost p

riority an

d w

e will co

ntin

ue to

strive for ze

ro h

arm at o

ur o

peratio

ns th

rough

the o

ngo

ing

imple

mentatio

n of

appro

priate

risk m

anage

ment

pro

cesse

s,

strategie

s, syste

ms

and train

ing

to pro

mote

a safe

wo

rking

enviro

nm

ent fo

r all.

OPER

ATIO

NA

L OV

ERVIEW

MIN

ING

The T

harisa M

ine is u

niq

ue in

that w

e min

e multip

le min

eralise

d

ho

rizons

with

diffe

rent,

but

defin

ed,

PG

M

and

chro

me

conte

nts. M

inin

g takes p

lace usin

g traditio

nal o

pen p

it meth

ods

by e

xperie

nce

d co

ntracto

rs.

So

me 3

.9 M

t of o

re at an

average

grade o

f 1.63 g/t P

GM

s

and 19.4

% ch

rom

e was m

ined d

urin

g the ye

ar and 11.9

Mm

3

of

waste

rock

was

move

d.

This

was

belo

w plan

prin

cipally

becau

se of

po

or

contracto

r perfo

rman

ce an

d

nece

ssitated

usin

g sto

ckpile

d lo

w grad

e an

d sh

allow

w

eath

ere

d o

res

to

supple

ment p

lant fe

ed at tim

es d

urin

g the ye

ar.

The co

mple

xity an

d scale o

f the m

inin

g operatio

ns re

quire

d

to p

rovid

e 400 k

t of ap

pro

priate

ly ble

nded o

re per m

onth

nece

ssitated a ch

ange in

both

the n

um

ber an

d re

spo

nsib

ilities o

f

min

ing co

ntracto

rs durin

g the ye

ar. The sign

ificant o

peratio

nal

chan

ges

imple

mente

d durin

g th

e ye

ar have

alread

y yie

lded

pro

ductio

n im

pro

vem

ents.

PROC

ESSING

As

befits

a uniq

ue

ore

bo

dy,

the

Tharisa

Min

e pro

cessin

g

facilities are sim

ilarly uniq

ue. T

he m

ine h

as two co

nce

ntrato

rs,

the G

enesis p

lant (10

0 k

t per m

onth

nam

eplate cap

acity) and

the V

oyage

r plan

t (300 k

t per m

onth

nam

eplate cap

acity). Both

plan

ts reco

ver ch

rom

ite usin

g gravity conce

ntratio

n m

eth

ods

and P

GM

s by fro

th flo

tation. D

iffere

nt o

re ble

nds are fe

d to

the p

lants an

d th

e availab

ility of tw

o se

parate facilitie

s afford

s

operatio

nal fle

xib

ility.

The V

oyage

r plan

t was in

ramp-u

p p

hase fo

r much

of th

e year

and e

xperie

nce

d th

e usu

al post-co

mm

issionin

g pro

ble

ms typ

ical

for p

lants o

f this scale an

d co

mple

xity. P

roce

ss de-b

ottle

neckin

g

is largely co

mple

te and th

e intro

ductio

n o

f pro

cess o

ptim

isation

initiative

s has yie

lded sign

ificant im

pro

vem

ents. Fo

r exam

ple

,

the co

mm

issionin

g of a h

igh e

nergy flo

tation circu

it push

ed

PG

M re

cove

ries

at th

e V

oyage

r plan

t ab

ove

65%

w

ith an

average co

mbin

ed p

lant re

cove

ry of 4

8%

for th

e year. C

hro

me

reco

very

usin

g w

et

high

in

tensity

magn

etic

separatio

n

is

undergo

ing p

roductio

n te

sting an

d an

ultra-fin

e grindin

g plan

t

for ad

ditio

nal P

GM

liberatio

n is b

ein

g design

ed.

PG

M p

roductio

n to

talled so

me 7

8 ko

z for th

e ye

ar.

Subse

quent

to

the

listing,

and

due

to

factors

beyo

nd

the

Co

mpan

y’s contro

l, the T

harisa sh

are price h

as not re

flecte

d

the b

usin

ess’s in

trinsic valu

e, a valu

e that w

ill, we h

ave no d

oubt,

be m

ore re

adily ap

pre

ciated as w

e ramp u

p o

ur p

roductio

n

tow

ards

stead

y state

and as

our

robust

value

pro

positio

n

beco

mes b

ette

r understo

od b

y the m

arket.

SAFET

Y

For th

e finan

cial year, T

harisa M

inerals m

aintain

ed an

exce

llent

safety re

cord

with

a lost tim

e inju

ry frequency rate o

f 0.14

per

200 0

00 m

anhours, o

ne o

f the lo

west LT

IFRs in

the P

GM

and

chro

me in

dustrie

s in S

outh

Africa, w

ith 7.5

millio

n fatality-fre

e

ho

urs w

orke

d.

REV

ENU

E

(2013: US$215.5 m

illion)

US$

240.7

millio

n

GRO

SS PROFIT

(2013: US$25.9 m

illion)

US$

33.9

millio

n

NET

CA

SH FRO

M O

PERAT

ING

AC

TIV

ITIES

(2013: utilised US$3.0 m

illion)

US$

22.3

millio

n

Tharisa plc A

nnual Report 20141

0

Pro

ductio

n o

f chro

me co

nce

ntrate

s totalle

d 1.1

Mt d

urin

g the

year, in

cludin

g 148 k

t of h

igh valu

e chem

ical and fo

undry grad

e

conce

ntrate

s.

Pro

ductio

n co

ntin

ues

to in

crease

as th

e m

inin

g o

peratio

ns

pro

vide

consiste

nt

and ap

pro

priate

feed as

a re

sult

of

the

chan

ges m

ade.

LABO

UR

RELAT

ION

S

Tharisa

Min

erals

has

avoid

ed

much

of

the

disru

ptio

n

and

disco

rd th

at characte

rised th

e South

African

PG

M se

ctor in

2014

. A ke

y attribute o

f the T

harisa M

inerals b

usin

ess m

odel is

that it h

as a relative

ly small an

d skille

d lab

our fo

rce due to

the

natu

re of its m

ech

anise

d o

pen p

it min

ing o

peratio

ns, a re

ality

that

has

enab

led T

harisa

Min

erals

to nego

tiate su

ccessfu

lly

with

th

e N

UM

, th

e re

cogn

ised unio

n at

the

min

e,

and to

avoid

any d

isruptio

ns d

ue to

strike action. S

imilarly, o

ur m

inin

g

contracto

r’s succe

ssful co

nclu

sion o

f wage n

ego

tiations th

is year

ensu

red m

inim

al labour d

isruptio

n. T

harisa M

inerals cu

rrently

has a o

ne-ye

ar wage agre

em

ent w

ith th

e NU

M an

d is in

the

pro

cess o

f nego

tiating a lo

nge

r term

agreem

ent.

We co

nsid

er o

ur e

mplo

yees an

d o

ur co

ntracto

rs’ em

plo

yees to

be ke

y stakehold

ers in

our sh

ared q

uest fo

r sustain

able valu

e

creatio

n an

d are co

nfid

ent o

f their active p

articipatio

n go

ing

forw

ard.

ENER

GY

AN

D T

RA

NSPO

RT

Key

areas

of

conce

rn

for

the

sustain

ability

of

any

min

ing

operatio

n in

South

Africa in

clude th

e supply o

f ele

ctricity and

transp

ort

infrastru

cture

. T

he

Tharisa

Min

e has

experie

nce

d

limite

d d

isruptio

n d

ue to

pow

er o

utage

s. The in

dependence

of o

ur re

spective p

roce

ssing p

lants h

as been ke

y in p

rovid

ing

operatio

nal fle

xib

ility durin

g ele

ctricity outage

s that d

id o

ccur.

Durin

g the ye

ar, Arxo

Logistics se

cure

d th

e road

, rail and p

ort

facilities n

ece

ssary to e

nsu

re the m

ove

ment o

f all pro

duct in

an o

ptim

al man

ner. T

ransp

ort co

sts for ch

rom

e conce

ntrate

rem

ain a m

ajor co

st and w

ill contin

ue to

be clo

sely m

anage

d.

A to

tal of 9

02.5

kt o

f chro

me co

nce

ntrate

s was sh

ipped b

y Arxo

Logistics th

is year, m

ostly to

main

ports in

Chin

a. Of th

is, 55%

was sh

ipped in

bulk w

ith th

e balan

ce bein

g ship

ped in

contain

ers,

illustratin

g the fle

xib

ility of o

ur lo

gistics infrastru

cture to

switch

betw

een bulk

and co

ntain

ers.

Arran

gem

ents

with

Tran

snet

for tran

spo

rting p

roduct b

y rail from

the railw

ay sidin

g near

our m

ine to

Rich

ards B

ay Po

rt Dry B

ulk T

erm

inal are

wo

rking

well. N

ego

tiations o

ver a p

lanned p

ublic-p

rivate partn

ersh

ip fo

r

an o

n-site railw

ay sidin

g at the T

harisa M

ine are u

nder w

ay.

This w

ill not o

nly im

pro

ve o

ur e

fficiencie

s, but w

ill also im

pro

ve

safety an

d alle

viate enviro

nm

ental im

pacts b

y reducin

g road

freigh

t hau

lage.

Arxo

Lo

gistics has

pro

cure

d

sufficie

nt

storage

capacity

at

both

the R

ichard

s Bay P

ort D

ry Bulk T

erm

inal an

d th

e Durb

an

Co

ntain

er P

ort to

man

age the fu

ll pro

ductio

n cap

acity of th

e

Tharisa M

ine.

SUSTA

INA

BILITY

Sustain

ability is at th

e heart o

f what w

e do. W

e are pro

ud

of o

ur track re

cord

in m

inim

ising o

ur e

nviro

nm

ental im

pact

and, w

hile w

e strive to im

pro

ve furth

er, w

e take similar p

ride

in o

ur m

ature an

d m

utu

ally beneficial re

lationsh

ips w

ith th

e

com

munitie

s that b

ord

er th

e Tharisa m

ine.

We

not

only

understan

d

our

obligatio

ns

to

create

social

capital as e

nsh

rined in

the M

PR

DA

, but strive to

achie

ve these

obligatio

ns in

ways th

at create o

ngo

ing su

stainab

le social cap

ital.

SALES

PG

M co

nce

ntrate is so

ld lo

cally to Im

pala R

efin

ing S

ervice

s.

Tharisa M

inerals is p

aid a variab

le perce

ntage o

f the m

arket

value o

f the co

ntain

ed P

GM

s in te

rms o

f an agre

ed fo

rmula.

The

average

PG

M

baske

t price

per

ounce

ach

ieve

d

by

Tharisa M

inerals fo

r the fin

ancial ye

ar was U

S$1 10

3/o

z (2013

:

US$1 13

2/o

z).

Chin

a is our m

ain ch

rom

e marke

t with

883.5

kt o

f chro

me

conce

ntrate

sales

durin

g th

e ye

ar. H

ow

eve

r, th

is ye

ar w

e

incre

ased d

om

estic ch

rom

e conce

ntrate sale

s significan

tly, a

resp

onse to

the co

untry’s p

rotracte

d lab

our actio

n an

d th

e

require

ment fo

r do

mestic fe

rroch

rom

e pro

duce

rs to so

urce

mate

rial for th

eir fu

rnace

s. This m

aterial (9

5.2

kt) w

as sold

on

an e

xpo

rt parity p

ricing b

asis and w

as, we b

elie

ve, go

od n

ot

only fo

r our cu

stom

ers, b

ut also

for th

e South

African

eco

no

my.

Chem

ical an

d fo

undry

grade

chro

me

conce

ntrate

s are

sold

prin

cipally

to R

and Yo

rk M

inerals

in te

rms

of

an

off-take

agreem

ent.

FINA

NC

IAL O

VERV

IEW

PG

M

baske

t price

s ach

ieve

d

this

year

rem

ained

relative

ly

flat w

ith

an

average

PG

M

baske

t price

per

ounce

of

US$1 10

3 (2

013: U

S$1 13

2).

Weak

marke

ts fo

r ch

rom

e co

nce

ntrate

s tran

slated

into

a

reductio

n in

the ye

ar-on-ye

ar volu

me w

eigh

ted ave

rage C

IF

contract p

rice for 4

2%

metallu

rgical grade ch

rom

e conce

ntrate

to U

S$15

8/t (2

013: U

S$161/t), a re

ductio

n o

f 1.9%

.

Again

st th

is backgro

und,

Gro

up

reve

nue

totalle

d

US$24

0.7

millio

n, an

incre

ase of 11.7

% re

lative to th

e pre

vious

year. T

he in

crease in

reve

nue, n

otw

ithstan

din

g low

er ch

rom

e

com

mo

dity p

rices, re

sulte

d fro

m an

incre

ase in P

GM

pro

ductio

n

and th

e incre

ased p

roductio

n o

f chem

ical and fo

undry grad

e

pro

ducts.

Our gro

ss pro

fit margin

incre

ased to

14.1%

with

a gross p

rofit o

f

US$33.9

millio

n. T

he h

igher gro

ss margin

was attrib

ute

d m

ainly

to in

crease

d P

GM

sales vo

lum

es co

ntrib

utin

g to an

incre

ase in

the P

GM

gross m

argin to

24.0

%. T

he gro

ss margin

for ch

rom

e

sales re

duce

d to

10.0

%, as a co

nse

quence o

f the lo

wer se

lling

price

s as well as an

incre

ase in attrib

utab

le min

ing co

sts while

operatio

ns w

ere b

ein

g ramped u

p to

ward

s stead

y state, p

lus

high

er e

ngin

eerin

g costs b

ein

g incu

rred b

y post-co

mm

issionin

g

pro

cess o

ptim

isation. T

he co

st of th

e open p

it pre

-strippin

g has

been cap

italised to

pro

perty, p

lant an

d e

quip

ment.

Leadersh

ip review

(continu

ed)

Tharisa plc A

nnual Report 20141

1

OVERVIEWOPERATIONAL REVIEWGOVERNANCE LEADERSHIP REVIEWMINERAL RESOURCE AND MINERAL RESERVE

STATEMENT

ABRIDGED ANNUAL FINANCIAL STATEMENTS

GLOSSARYSHAREHOLDER INFORMATION

The

segm

ental

contrib

utio

n to

re

venue

and gro

ss pro

fit

from

PG

M an

d ch

rom

e conce

ntrate

s is sum

marise

d in

the

table

belo

w:

20142013

US$m

PGM

s C

hrome

PG

Ms

Chro

me

Reve

nue

70.4170.4

54.3

161.2C

ost o

f sales

53.5153.3

50.5

139.1

Gro

ss pro

fit

contrib

utio

n16.9

17.13.8

22.1

Afte

r acco

untin

g fo

r ad

min

istration

expense

s, in

cludin

g

US$2.6

millio

n o

f once

-off co

sts incu

rred o

n th

e listing o

f

the C

om

pan

y, the G

roup ach

ieve

d an

operatin

g pro

fit of

US$5.9

millio

n.

Finan

ce co

sts (to

talling

US$14

.7 m

illion)

prin

cipally

relate

to th

e senio

r debt facility se

cure

d b

y Tharisa M

inerals fo

r

the co

nstru

ction o

f the V

oyage

r plan

t. The le

nders w

aived

certain

debt se

rvice cove

r ratios as at 3

0 S

epte

mber 2

014.

The in

tere

st rate on th

e senio

r debt facility w

as incre

ased b

y

100 b

asis poin

ts to Jib

ar plu

s 490 b

asis poin

ts until te

chnical

com

ple

tion is ach

ieve

d. T

he p

erio

d fo

r achie

ving te

chnical

com

ple

tion w

as exte

nded to

28 N

ove

mber 2

015.

Chan

ges in

fair value o

f finan

cial liabilitie

s incu

rred a n

on-

recu

rring ch

arge of U

S$32.4

millio

n. T

his re

lates to

fair value

adju

stments arisin

g from

the in

tern

al rate of re

turn

of 2

5%

payab

le to p

refe

rence sh

arehold

ers o

n co

nve

rsion o

f their

pre

fere

nce sh

ares in

to o

rdin

ary share

s on th

e listing o

f the

Co

mpan

y.

Afte

r accountin

g for th

e above fin

ancin

g costs, th

e Gro

up

incu

rred a re

duce

d lo

ss befo

re taxatio

n o

f US$40.3

millio

n,

com

pare

d to

the p

rior ye

ar loss o

f US$63.0

millio

n.

Fore

ign cu

rrency d

iffere

nce

s applicab

le where th

e Co

mpan

y

has fu

nded th

e underlyin

g subsid

iaries w

ith U

S$ fu

ndin

g and

the re

portin

g curre

ncy o

f the u

nderlyin

g subsid

iary is not

in U

S$, am

ounte

d to

US$21.2

millio

n again

st the p

rior ye

ar

charge o

f US$38.8

millio

n.

Durin

g th

e ye

ar, T

harisa

Min

erals

reasse

ssed

the

reco

verab

ility of its d

efe

rred tax asse

t. The re

assessm

ent

arose p

rimarily as a re

sult o

f the fu

rther lo

sses in

curre

d b

y

Tharisa M

inerals in

the cu

rrent fin

ancial ye

ar and th

e matte

rs

refe

rred to

in

th

e go

ing

conce

rn asse

ssment

detaile

d in

the

annual

finan

cial state

ments,

particu

larly re

lating

to

com

mo

dity p

rices.

A sign

ificant co

mpo

nent o

f the d

efe

rred tax asse

t relate

s

to th

e fo

reign

exch

ange

losse

s o

n th

e pre

fere

nce

share

liability

betw

een

the

Co

mpan

y an

d

Tharisa

Min

erals,

which

is

deno

min

ated in

U

S$

. T

he

exch

ange

losse

s can

only

be

claimed

by

Tharisa

Min

erals

on

redem

ptio

n

of

the

pre

fere

nce

share

s. T

he

afore

mentio

ned facto

rs have

resu

lted in

a revise

d cash

flow

fore

cast which

indicate

s that

the e

arliest re

dem

ptio

n d

ate of th

e pre

fere

nce sh

ares is

unlike

ly to b

e in th

e near te

rm.

While T

harisa M

inerals re

main

s confid

ent th

at the co

mm

odity

price

s will re

cove

r, base

d o

n, inter a

lia, th

e unce

rtainty o

f futu

re

price

s, Tharisa M

inerals is o

f the vie

w th

at it would

be p

rudent

to take a m

ore n

ear te

rm vie

w in

assessin

g the like

lihood o

f

utilisin

g the d

efe

rred tax asse

t and h

as there

fore d

ere

cogn

ised

a po

rtion o

f the d

efe

rred tax asse

t.

As a re

sult, T

harisa M

inerals h

as dere

cogn

ised U

S$13

.1 m

illion

of

its defe

rred

tax asse

t an

d

did

not

reco

gnise

a fu

rther

US$9.3

millio

n th

at arose d

urin

g the ye

ar.

Head

line

and dilu

ted head

line

loss

per

share

amounte

d to

US$0.2

0 (2

013: U

S$0.19

).

Durin

g this fin

ancial ye

ar, the G

roup ge

nerate

d n

et cash

from

operatio

ns o

f US$22.4

millio

n, a sign

ificant tu

rnaro

und fro

m

the

pre

vious

year

when cash

utilise

d in

operatio

ns

totalle

d

US$3.0

millio

n. C

ash o

n h

and am

ounte

d to

US$19.6

millio

n.

This cash

exclu

des th

e require

d se

nio

r debt facility d

ebt se

rvice

rese

rve account am

ountin

g to U

S$14

.5 m

illion.

Gro

up d

ebt am

ounte

d to

US$116

.0 m

illion, p

roducin

g a debt

to e

quity ratio

of 5

5.3

%, w

ith a targe

ted d

ebt to

equity ratio

of

15%

. The sign

ificantly h

igher actu

al debt to

equity ratio

follo

ws

the m

ajor cap

ital expan

sion u

ndertake

n in

the d

eve

lopm

ent

of th

e Tharisa M

ine an

d co

nstru

ction o

f the p

roce

ssing p

lants

as well as fu

ndin

g losse

s incu

rred d

urin

g the d

eve

lopm

ent an

d

constru

ction p

hase

.

It is

Co

mpan

y policy

to pay

an an

nual

divid

end of

10%

of

conso

lidate

d n

et p

rofit afte

r tax. In

view

of th

e conso

lidate

d

loss afte

r tax fo

r the 2

014 fin

ancial ye

ar, no d

ividends h

ave

been p

ropose

d o

r paid

to o

rdin

ary share

ho

lders d

urin

g the

year u

nder re

view

.

OU

TLO

OK

While

Tharisa

Min

erals

experie

nce

d

num

ero

us

challe

nge

s

this

year,

these

were

addre

ssed

decisive

ly an

d

pro

actively.

Our b

usin

ess m

odel h

as pro

ven itse

lf and w

e rem

ain, d

esp

ite

setb

acks, a robust yo

ung, gro

win

g com

pan

y that is o

n co

urse to

achie

ve its key o

bje

ctives.

Our first m

ine is situ

ated in

South

Africa an

d th

e Co

mpan

y

will

contin

ue

to

operate

with

co

nfid

ence

in

that

country.

Our p

riority in

the n

ear te

rm is to

achie

ve stead

y state PG

M

and ch

rom

e conce

ntrate p

roductio

n an

d im

ple

mentin

g pro

cess

optim

isation in

itiatives.

In th

e m

ediu

m te

rm,

the

Co

mpan

y

will co

ntin

ue to

seek to

grow

thro

ugh

accretive acq

uisitio

n,

deve

lopm

ent an

d o

peratio

n o

f large scale and lo

w co

st pro

jects

that are in

or clo

se to p

roductio

n.

Our

finan

cial perfo

rman

ce w

as im

pacte

d by

once

-off

costs

relatin

g to o

ur listin

g and b

y operatio

nal cap

ital expenditu

re

require

d

to

de-risk

our

pro

cessin

g asse

ts an

d

ensu

re o

ur

contin

ued co

st com

petitive

ness. R

ese

arch an

d d

eve

lopm

ent o

f

PG

M d

ow

nstre

am b

eneficiatio

n an

d ch

rom

e smeltin

g contin

ue

to be

pursu

ed at

min

imal

cost

and hold

sign

ificant

upsid

e

pote

ntial fo

r our in

vesto

rs.

Tharisa plc A

nnual Report 20141

2

We take th

is oppo

rtunity to

expre

ss again o

ur ap

pre

ciation

to

all w

ho

have

wo

rked

for

and

inve

sted

in

our

succe

ss.

In p

articular

we

than

k our

board

, m

anage

ment,

em

plo

yees,

supplie

rs, partn

ers an

d all w

ho h

ave assisted in

the su

ccessfu

l

exe

cutio

n o

f our strate

gy.

Loucas Po

uro

ulis

Execu

tive C

hairm

an

Phoevo

s Pouro

ulis

Mich

ael Jones

Ch

ief E

xecu

tive O

fficer

Ch

ief F

inan

ce O

fficer

11 M

arch 2

015

Leadersh

ip review

(continu

ed)

Tharisa plc A

nnual Report 20141

3

OVERVIEWOPERATIONAL REVIEWGOVERNANCE LEADERSHIP REVIEWMINERAL RESOURCE AND MINERAL RESERVE

STATEMENT

ABRIDGED ANNUAL FINANCIAL STATEMENTS

GLOSSARYSHAREHOLDER INFORMATION

Operational review

Tharisa M

inerals, w

hich

is 74%

ow

ned

by th

e Com

pany, h

old

s the

Min

ing R

ights an

d o

perates th

e Tharisa M

ine, w

hich

is near th

e

tow

n o

f Ruste

nburg in

the N

orth

West P

rovin

ce of So

uth

Africa.

The T

harisa M

ine is a 2

2-year open p

it operatio

n (w

ith a p

rojected

36-ye

ar undergro

und life o

f min

e th

ere

after) co

-pro

ducin

g PG

M

and ch

rom

e conce

ntrates th

rough

the m

inin

g and p

rocessin

g of all

six MG

chro

mitite laye

rs.

Extractin

g and re

cove

ring b

oth

PG

Ms an

d ch

rom

e reduce

s the

unit co

sts of p

roductio

n o

f each

, positio

nin

g the T

harisa M

ine

in th

e low

est co

st quartile o

f operatin

g costs in

South

Africa fo

r

both

PG

Ms an

d ch

rom

e conce

ntrate

s. Durin

g this fin

ancial ye

ar

the T

harisa M

ine acco

unte

d fo

r 9%

of th

e total C

hin

ese ch

rom

e

impo

rts and 16

% o

f South

African

chro

me e

xpo

rts to C

hin

a.

SAFET

Y A

ND

ENV

IRON

MEN

T

Tharisa M

inerals’ LT

IFR fo

r the ye

ar was 0

.14 p

er 2

00 0

00 h

ours

wo

rked, w

hich

is amo

ngst th

e lo

west LT

IFR in

the P

GM

and

chro

me in

dustrie

s in S

outh

Africa.

Regre

ttably,

Tharisa

Min

erals

suffe

red

a fatality

at th

e

Voyage

r plan

t o

n 5 N

ove

mber

2014

in

an

accid

ent

which

occu

rred d

urin

g routin

e main

tenan

ce. T

he b

oard

of d

irecto

rs,

man

agem

ent

and

em

plo

yees

of

the

Tharisa

group

exte

nd

their sin

cere co

ndole

nce

s to th

e family, frie

nds an

d co

lleagu

es

of M

r Johan

Raath

s. Safe

ty rem

ains a to

p p

riority an

d T

harisa

will co

ntin

ue to

strive for ze

ro h

arm at o

ur o

peratio

ns. P

rior to

this fatality, th

e Tharisa M

ine h

ad ach

ieve

d 8

079 6

94 fatality

free h

ours, w

ith a lo

st time in

jury fre

quency rate o

f 0.2

per

200 0

00 h

ours.

Tharisa M

inerals h

as obtain

ed all e

nviro

nm

ental ap

pro

vals and

auth

orisatio

ns re

quire

d fo

r the o

peratio

n o

f the T

harisa M

ine,

inclu

din

g an In

tegrate

d W

ater U

se Lice

nce issu

ed u

nder th

e

Wate

r Act, an

Enviro

nm

ental Im

pact A

ssessm

ent (E

IA) an

d an

Enviro

nm

ental M

anage

ment P

rogram

me as re

quire

d in

term

s

of th

e MPR

DA

. Mo

reove

r, Tharisa M

inerals e

mplo

ys a system

of co

ntin

uous m

onito

ring o

f the im

pact o

f its operatio

ns o

n

the

enviro

nm

ent

and is

com

mitte

d to

co

mplian

ce w

ith th

e

Equato

r Prin

ciple

s.

KEY

STATIST

ICS

Unit

20142013

LTIFR

200 0

00 h

ours

0.140.14

Min

eral R

eso

urce

Mt

832836

Measu

red

Mt

5356

Indicate

dM

t129

130

Infe

rred

Mt

650650

Min

eral R

ese

rveM

t123

127

Pro

ved

Mt

3639

Pro

bab

leM

t87

88

Reef m

ined

Mt

3.93.3

Strippin

g ratiom

3:m3

10.68.4

Rough

er P

GM

feed grad

eg/t

1.61.4

PG

M p

roductio

n (5

PG

E +

Au)

koz

7857

PG

M re

cove

ry%

48.843

.7

RO

M ch

rom

e feed grad

e%

19.420.7

Chro

me yie

ld%

27.730.9

Chro

me co

nce

ntrate p

roductio

nM

t1.085

1.193

Tharisa plc A

nnual Report 20141

4

Operatio

nal review

(continu

ed)

MIN

ING

OPER

ATIO

NS

The T

harisa M

ine h

as an 8

32 M

t reso

urce an

d a re

serve o

f

123 M

t. All m

inin

g takes p

lace by m

ean

s of large scale o

pen

pit m

eth

ods u

sing sp

ecialise

d m

inin

g contracto

rs. Durin

g the

year so

me 3

.9 M

t of o

re at an

average

grade o

f 1.63 g/t P

GM

s

and 19.4

% ch

rom

e w

as m

ined an

d 11.9

M

m3 o

f w

aste ro

ck

was m

ove

d. T

his w

as belo

w p

lan p

rincip

ally becau

se of p

oo

r

contracto

r perfo

rman

ce and n

ece

ssitated u

sing sto

ckpile

d lo

w

grade an

d sh

allow

weath

ere

d o

res to

supple

ment p

lant fe

ed at

times d

urin

g the ye

ar.

The co

mple

xity an

d scale o

f the m

inin

g operatio

ns re

quire

d

to p

rovid

e 4

00 k

t of ap

pro

priate

ly ble

nded o

re p

er m

onth

nece

ssitated a ch

ange in

both

the n

um

ber an

d re

spo

nsib

ilities o

f

min

ing co

ntracto

rs durin

g the ye

ar. The sign

ificant o

peratio

nal

chan

ges

imple

mente

d durin

g th

e ye

ar have

alread

y yie

lded

pro

ductio

n gain

s.

Reef tonnes m

ined

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

FY2014

FY2013

FY2012

FY2011

0 2 4 6 8

10

12

1.433.31

3.910.68

6.1

10.98.4

10.6

Reef tonnes m

ined (Mt)

Reef mined (Mt)

Stripping ratio (reef m3 : w

aste m3)

Stripping ratio (reef m3 : waste m3)

PROC

ESSING

Tharisa

Min

erals

man

ages

and

operate

s th

e G

enesis

and

Voyage

r pro

cessin

g plan

ts, w

hich

have

a co

mbin

ed cap

acity

of

4.8

M

tpa.

Whilst

min

ing

operatio

ns

are su

b-co

ntracte

d,

pro

cessin

g operatio

ns are p

erfo

rmed in

-ho

use

.

The

Tharisa

Min

e co

ntin

ued

in

its ram

p-u

p

phase

tow

ards

annualise

d ste

ady state o

utp

ut o

f 144 ko

z of P

GM

s and 1.8

Mt o

f

chro

me co

nce

ntrate (p

roje

cted to

be ach

ieve

d in

Q1 F

Y2016

).

Durin

g the ye

ar Tharisa M

inerals p

roduce

d P

GM

conce

ntrate

s

contain

ing 7

8.2

koz o

f 5PG

E +

Au co

nce

ntrate

, 36.2

% u

p o

n

the p

rior ye

ar, and ch

rom

e conce

ntrate

s of 1.0

85 M

t. Whilst

the to

tal tonnage o

f chro

me co

nce

ntrate

s was 9.1%

low

er th

an

the p

revio

us ye

ar, it inclu

ded 14

8 k

t of h

igh valu

e foundry an

d

chem

ical grade ch

rom

e conce

ntrate

s, which

impacts o

n th

e

ove

rall chro

me yie

ld.

Plan

t perfo

rman

ce was n

egative

ly impacte

d b

y inco

nsiste

nt o

re

availability an

d th

e su

b-o

ptim

al ble

nd o

f diffe

rent re

ef typ

es

and q

uality d

elive

red to

the G

enesis an

d V

oyage

r plan

ts. The

Voyage

r plan

t was in

ramp-u

p p

hase fo

r much

of th

e year an

d

experie

nce

d th

e usu

al post-co

mm

issionin

g pro

ble

ms typ

ical for

plan

ts of th

is scale and co

mple

xity. P

roce

ss de-b

ottle

neckin

g is

largely co

mple

te and th

e intro

ductio

n o

f pro

cess o

ptim

isation

initiative

s has yie

lded sign

ificant im

pro

vem

ents. Fo

r exam

ple

,

the co

mm

issionin

g of a h

igh e

nergy flo

tation circu

it push

ed

PG

M re

cove

ries

at th

e V

oyage

r plan

t ab

ove

65%

w

ith an

average co

mbin

ed p

lant re

cove

ry of 4

8%

for th

e year. C

hro

me

reco

very

usin

g w

et

high

in

tensity

magn

etic

separatio

n

is

undergo

ing p

roductio

n te

sting an

d an

ultra-fin

e grindin

g plan

t

for ad

ditio

nal P

GM

liberatio

n is b

ein

g design

ed.

MG

0

MG

2A

MG

1

MG

2B

MG

2C

MG

3ZEB

MG

3M

G3D

MG

4(0)M

G4

MG

4AM

INER

AL

RESO

UR

CE

832 Mt

5 PGE +

Au 1.56 g/t

Cr

2 O3 20.38%

OPEN

PIT

MIN

ERA

L RESERV

E104 M

t5 PG

E + A

u 1.51 g/tC

r2 O

3 19.36%

CO

NTA

INED

META

L169.6 M

t chrome

41.8 Moz PG

Ms

Reef dip east: 9-12°

Reef dip w

est: 14-18°

5.5km strike length

Open cast pit

UG

2 incline shaftM

RK

incline shaft1 Vertical

Mining all six M

G chrom

itite layers facilitates co-production

Max 175m

UG

2 110m

UG

1 130m

MG

4, MG

3, MG

2, MG

1 60m

LG6

Schematic illustrating reef access on property dow

ndip from the T

harisa Mine

Tharisa plc A

nnual Report 20141

5

OVERVIEWOPERATIONAL REVIEWGOVERNANCE LEADERSHIP REVIEWMINERAL RESOURCE AND MINERAL RESERVE

STATEMENT

ABRIDGED ANNUAL FINANCIAL STATEMENTS

GLOSSARYSHAREHOLDER INFORMATION

Sin

ce bein

g co

mm

issioned,

bo

th

the

Genesis

and

Voyage

r

plan

ts have u

ndergo

ne d

esign

mo

dificatio

ns to

impro

ve yield

s

and re

cove

ries. T

hese e

nhan

cem

ents w

ere co

ntin

ued th

is year

and

have

substan

tially de-riske

d

pro

cessin

g operatio

ns

and

bette

r equip

ped th

e p

lants to

delive

r the re

quire

d availab

ility

and p

roduct q

uality.

PGM

cash cost of sales

Mining

Utilities

Reagents

Steelballs

Labour

Diesel

Overheads

53%6%9%3%5%

16%8%

Chrom

e cash cost of sales

Mining

Utilities

Steelballs

Labour

Diesel

Overheads

50%6%6%8%

15%

15%

This ye

ar, seve

n h

igh e

nergy flo

tation u

nits (fo

r the re

cove

ry

of fin

e PG

M p

articles) w

ere co

mm

issioned. A

s a resu

lt, PG

M

reco

verie

s at the V

oyage

r plan

t impro

ved to

above

65%

, with

an o

verall ave

rage com

bin

ed p

lant re

cove

ry of 4

8%

for th

e year.

To d

ate the m

agnetic se

paratio

n co

mm

ercial scale p

roductio

n

units h

ave not b

een ab

le to re

plicate th

e laborato

ry unit te

st

resu

lts on a su

stained b

asis and th

erefo

re the e

xpecte

d in

crease

in ch

rom

e reco

very w

as not ach

ieve

d. T

harisa M

inerals co

ntin

ues

to w

ork w

ith th

e OEM

supplie

r to d

ete

rmin

e the o

ptim

al pro

cess

flow

and d

esign

to ach

ieve th

e require

d ch

rom

e conce

ntrate

reco

very.

CO

MM

OD

ITY

MA

RK

ETS

All P

GM

conce

ntrate p

roduce

d b

y Tharisa M

inerals is cu

rrently

sold

to

Im

pala

Refin

ing

Service

s in

te

rms

of

an

off-take

agreem

ent b

ased o

n th

e delive

ry of a m

inim

um

quan

tity of

ounce

s. The P

GM

prill sp

lit refle

cts a high

platin

um

conte

nt

relative to

the in

dustry n

orm

. This tran

slates in

to h

igher th

an

average b

asket p

rices. P

GM

sales re

venues re

ceive

d fro

m IR

S

are dire

ctly impacte

d b

y pre

vailing P

GM

price

s.

Tharisa PG

M prill split

PtPdRh

Au

Ru

Ir

60.5%

15.8%

8.1%

0.1%

11.7%

3.8%

The G

roup’s p

rofitab

ility is expose

d to

global e

cono

mic gro

wth

affectin

g both

new

vehicle m

anufactu

re (PG

Ms fo

r catalytic

conve

rters) an

d stain

less ste

el d

em

and (ch

rom

e).

This ye

ar, wo

rld p

latinum

marke

ts reco

rded h

istoric le

vels o

f

under su

pply as m

arket d

eficits ro

se to o

ver 8

00 ko

z, a positio

n

that w

as aggravated b

y the p

rotracte

d m

inin

g strike in S

outh

Africa d

urin

g the se

cond h

alf of th

e finan

cial year. Fo

llow

ing

the

resu

mptio

n of

pro

ductio

n,

price

s ease

d fro

m a

high

of

US$1 5

20 o

n 10

July 2

014, to

US$1 312

at Tharisa’s S

epte

mber

year e

nd –

and w

ere to

test le

vels alm

ost U

S$10

0 lo

wer th

e

follo

win

g w

eek,

befo

re su

bse

quently

reco

verin

g as

supply

conce

rns w

ere allaye

d.

The o

utlo

ok fo

r PG

Ms is p

ositive w

ith d

em

and e

xpecte

d fro

m

the re

place

ment o

f agein

g vehicle

s in th

e Euro

pean

Unio

n, th

e

impro

ving e

cono

mic o

utlo

ok in

the U

SA

and th

e dem

and fo

r

platin

um

jew

elle

ry in C

hin

a.

Chin

a co

ntin

ues

to

drive

wo

rld

stainle

ss ste

el

pro

ductio

n

and,

there

fore

, co

nsu

mptio

n

of

chro

me

ore

. Sin

ce 2008,

annual

Chin

ese

stainle

ss ste

el

pro

ductio

n

has

grow

n

from

som

e 5.4

Mt to

ove

r 20 M

t and, w

hile an

nual in

crease

s have

slow

ed fro

m rate

s of w

ell o

ver 2

0%

pa, in

crease

d u

rban

isation

and

rising

standard

s of

living

will

sustain

co

ntin

ued

annual

pro

ductio

n in

crease

s ove

r at least th

e m

ediu

m te

rm. C

hin

a

rem

ains h

eavily d

ependent o

n se

abo

rne sh

ipm

ents o

f So

uth

African

chro

me co

nce

ntrate

, this co

untry p

osse

ssing m

ore th

an

thre

e-q

uarte

rs of th

e wo

rld’s kn

ow

n re

source

s and acco

untin

g

for ap

pro

xim

ately 6

0%

of C

hin

a’s Chro

me im

po

rts.

Durin

g the ye

ar, Chin

ese fe

rroch

rom

e pro

ductio

n re

duce

d to

55%

of cap

acity, but e

ven at th

ese le

vels an

analysis o

f po

rt stock

in C

hin

a poin

ted to

dem

and e

xce

edin

g supply b

y som

e 25%

.

The d

eplo

yment in

Chin

a of n

ew

er fe

rroch

rom

e pro

ductio

n

tech

nolo

gy is

alread

y sp

urrin

g dem

and

for

South

A

frican

conce

ntrate o

ver su

pplie

s of o

ther o

rigins. T

he T

harisa b

rand

contin

ues to

be asso

ciated w

ith re

liability an

d q

uality.

This ye

ar, Arxo

Reso

urce

s sold

1.0 M

t of ch

rom

e conce

ntrate

,

of

which

883.5

M

t w

as delive

red

to

main

po

rts C

hin

a –

appro

xim

ately 9

% o

f total C

hin

ese ch

rom

e impo

rts and 16

% o

f

South

African

chro

me e

xpo

rts to C

hin

a.

Tharisa plc A

nnual Report 20141

6

OU

TLO

OK

Subse

quent to

the fin

ancial ye

ar end, T

harisa M

inerals ap

poin

ted

additio

nal co

ntracto

rs with

a multi-m

inin

g contracto

r mo

del

which

, couple

d w

ith an

optim

ised m

ine layo

ut p

lan, b

odes w

ell

for

an im

pro

ved m

inin

g perfo

rman

ce in

2015

. Sim

ilarly, th

e

pro

cess im

pro

vem

ents e

ffecte

d at th

e Genesis an

d V

oyage

r

plan

ts have

substan

tially de-riske

d

pro

cessin

g operatio

ns,

resu

lting in

contin

ued im

pro

ved P

GM

and ch

rom

e conce

ntrate

outp

ut.

Difficu

lties

enco

unte

red

with

th

e m

ix an

d

quality

of

reef

rece

ived are e

xpecte

d to

be o

verco

me b

y the se

cond q

uarte

r

of th

e new

year.

BLAC

K EC

ON

OM

IC EM

POW

ERM

ENT

A

ND

LABO

UR

RELAT

ION

ST

harisa M

inerals co

mplie

s with

the B

EE o

wnersh

ip crite

ria in th

e

Min

ing C

harte

r thro

ugh

Thari R

eso

urce

s and th

e bro

ad b

ased

Tharisa C

om

munity T

rust h

old

ing 2

0%

and 6

% u

nencu

mbere

d

equity

inte

rests

in

Tharisa

Min

erals

resp

ective

ly. A

s at

30 S

epte

mber 2

014, T

harisa M

inerals h

ad a B

EE co

mplian

ce

score o

f 86.6

% an

d ach

ieve

d an

“exce

llent” ratin

g in acco

rdan

ce

with

the M

inin

g Charte

r.

Tharisa M

inerals p

laces a h

igh p

riority o

n co

mm

unity re

lations

and in

itiatives. In

this co

nte

xt, T

harisa M

inerals h

as estab

lished

an e

ngage

ment fo

rum

for th

e local co

mm

unity su

rroundin

g the

Tharisa M

ine an

d h

as imple

mente

d in

itiatives fo

r job cre

ation,

perm

anent

ho

usin

g, pove

rty alle

viation,

basic

infrastru

cture

and co

mm

unity d

eve

lopm

ent, p

roje

cts which

will b

e funded

from

futu

re divid

ends fro

m th

e Tharisa M

ine.

Man

agem

ent

engage

s co

nsiste

ntly

and

pro

actively

with

em

plo

yee re

pre

sentative

s, inclu

din

g the N

UM

, which

enjo

ys

reco

gnitio

n righ

ts at

Tharisa

Min

e.

This

year,

Tharisa

Min

e

experie

nce

d n

o in

dustrial actio

n.

Operatio

nal review

(continu

ed)

Tharisa plc A

nnual Report 20141

7

OVERVIEWOPERATIONAL REVIEWGOVERNANCE LEADERSHIP REVIEWMINERAL RESOURCE AND MINERAL RESERVE

STATEMENT

ABRIDGED ANNUAL FINANCIAL STATEMENTS

GLOSSARYSHAREHOLDER INFORMATION

Arxo

Metals u

ndertake

s exte

nsive re

search

, deve

lopm

ent an

d te

sting o

f various te

chnolo

gies in

ord

er to

impro

ve yield

s and re

cove

ries

and to

create gre

ater valu

e PG

M an

d ch

rom

e pro

ducts to

expan

d an

d o

ptim

ise the G

roup’s o

peratio

ns. D

iffere

nt e

nergy-e

fficient

tech

nolo

gies are b

ein

g teste

d w

ith th

e obje

ctive of p

roducin

g cost-e

ffective P

GM

and ch

rom

e alloys.

Co

mm

issioned in

July 2

013, th

e Challe

nge

r plan

t pro

duce

s foundry an

d ch

em

ical grade co

nce

ntrate

s, which

are high

er grad

e chro

me

pro

ducts w

ith m

ore strin

gent q

uality sp

ecificatio

ns, gre

ater m

arket valu

e and h

igher m

argins th

an m

etallu

rgical grade co

nce

ntrate

.

This h

as not o

nly cre

ated ad

ditio

nal valu

e, b

ut h

as incre

ased th

e range o

f chro

me p

roducts o

ffere

d b

y the G

roup.

KEY

STATIST

ICS

2014

2013

Foundry grad

e chro

me co

nce

ntrate p

roduce

d13.4 kt

3.6

kt

Chem

ical grade ch

rom

e conce

ntrate p

roduce

d46.4 kt

11.8 k

t

The fo

undry an

d ch

em

ical grade co

nce

ntrate

s are sold

to R

and Y

ork M

inerals in

term

s of an

off-take agre

em

ent.

Arxo

Metals co

ntin

ues to

evalu

ate low

capital, lo

w e

nergy, valu

e addin

g beneficiatio

n o

ppo

rtunitie

s, thro

ugh

in-h

ouse re

search

and

associatio

ns w

ith in

tern

ational co

mpan

ies. T

he p

ilot p

lant D

C arc fu

rnace te

st wo

rk on P

GM

conce

ntrate

s is contin

uin

g to d

elive

r

enco

uragin

g resu

lts.

Chro

me allo

y rese

arch an

d d

eve

lopm

ent is b

ein

g actively p

rogre

ssed w

ith n

ew

tech

nolo

gy which

has b

een co

mm

ercialise

d fo

r similar

applicatio

ns in

the ste

el an

d stain

less ste

el in

dustrie

s.

Arxo

M

etals,

a w

holly-o

wned

su

bsid

iary, is

the

pro

ducin

g, beneficiatio

n,

research

and

deve

lopm

ent

com

pany

of

the

Gro

up. It p

roduces

high

valu

e fo

undry

and

chem

ical grad

e ch

rom

e conce

ntrates at its C

halle

nge

r plan

t, an ex

tensio

n to

th

e Genesis p

lant.

Arxo

Reso

urce

s has e

stablish

ed a stro

ng p

rese

nce am

ongst cu

stom

ers in

Chin

a. These cu

stom

ers in

clude stain

less ste

el an

d

ferro

chro

me p

roduce

rs and glo

bal co

mm

odity trad

ers. T

he scale o

f operatio

ns allo

ws fo

r dire

ct access to

marke

t and p

rice disco

very

while o

penin

g up ch

annels w

ith cu

stom

ers an

d cre

ating a p

latform

from

which

to ge

nerate fu

ture re

venue th

rough

the sale

s of th

ird-

party p

roducts.

This ye

ar Arxo

Reso

urce

s ente

red in

to a m

arketin

g agreem

ent w

ith N

oble

, a global co

mm

oditie

s tradin

g com

pan

y listed o

n th

e

Sin

gapo

re Stock E

xch

ange

, to act as age

nt fo

r the m

arketin

g of u

p to

50 k

tpm

of m

etallu

rgical grade ch

rom

e conce

ntrate p

roduce

d

by th

e Tharisa M

ine.

Arxo

Reso

urces, a w

holly-o

wned

subsid

iary, has th

e exclusive

right

to

sell m

etallurgical

grade

chro

me

concen

trates, pro

duced

by T

harisa M

inerals, to

custo

mers in

Chin

a and o

ther

intern

ational m

arkets.

Tharisa plc A

nnual Report 20141

8

Chro

me co

nce

ntrate is sh

ipped to

custo

mers in C

hin

a and o

ther in

tern

ational m

arkets th

rough b

ulk an

d co

ntain

er ve

ssels fro

m

Rich

ards B

ay and D

urb

an. A

rxo Lo

gistics also m

anage

s the ro

ad tran

sportatio

n of P

GM

conce

ntrate to

Impala R

efinin

g Service

s.

Arxo

Logistics h

as access to

the n

ece

ssary road

and railw

ay transp

ort, w

arehousin

g and p

ort facilitie

s at Rich

ards B

ay Dry

Bulk T

erm

inal an

d th

e Durb

an P

ort to

han

dle th

e full ste

ady state p

roductio

n le

vels o

f 155 k

tpm

of ch

rom

e conce

ntrate to

be

pro

duce

d b

y the T

harisa M

ine.

Bulk sh

ipm

ents co

mprise

d 5

5%

of ch

rom

e conce

ntrate tran

spo

rted an

d are ge

nerally p

refe

rred b

y custo

mers d

ue to

low

er

disch

arge po

rt costs. A

rxo Lo

gistics inte

nds re

tainin

g its flexib

ility in te

rms o

f delive

ry meth

ods so

as to m

itigate risk.

Arxo

Lo

gistics, a

who

lly-ow

ned

subsid

iary, m

anages the

transportatio

n of chro

me co

ncentrates pro

duced

by the G

roup

to

international custo

mers via the R

ichards B

ay Dry B

ulk Terminal

and the D

urban p

ort, and

to So

uth African custo

mers b

y road

and

rail.

Tharisa plc A

nnual Report 20141

9

OVERVIEWOPERATIONAL REVIEWGOVERNANCE LEADERSHIP REVIEWMINERAL RESOURCE AND MINERAL RESERVE

STATEMENT

ABRIDGED ANNUAL FINANCIAL STATEMENTS

GLOSSARYSHAREHOLDER INFORMATION

Mineral R

esource and Mineral R

eserve Statement

INT

ROD

UC

TIO

N

The p

urp

ose o

f this re

port is to

docu

ment th

e Min

eral R

eso

urce

and M

ineral R

ese

rve of T

harisa M

inerals in

accord

ance w

ith th

e

require

ments o

f the S

outh

African

Code fo

r the R

eportin

g of

Explo

ration R

esu

lts, Min

eral R

eso

urce

s and M

ineral R

ese

rves,

2009 (SA

MR

EC

Code). T

he e

stimate

s in th

is docu

ment are as at

30 S

epte

mber 2

014. T

he p

it limits h

ave been ke

pt co

nstan

t as at

the e

nd o

f Septe

mber 2

013. T

he M

ineral R

eso

urce an

d M

ineral

Rese

rve estim

ate for 3

0 S

epte

mber 2

014 w

as dete

rmin

ed b

y

deple

tion o

f the 3

0 S

epte

mber 2

013 e

stimate b

y the p

roductio

n

durin

g th

e ye

ar. T

he

Min

eral

Reso

urce

and M

ineral

Rese

rve

info

rmatio

n in

the tab

les o

n th

e follo

win

g page

s is base

d o

n

info

rmatio

n co

mpile

d b

y a Com

pete

nt P

erso

n (as d

efined b

y the

SAM

REC

Code).

DEFIN

ITIO

NS

The d

efin

itions (as p

er th

e SA

MR

EC

Co

de), h

ave been ap

plie

d

in e

stimatio

n an

d cate

gorisatio

n o

f the M

ineral R

eso

urce

s and

Min

eral R

ese

rves d

isclose

d w

ithin

this d

ocu

ment, an

d are se

t

out in

the G

lossary o

f abbre

viations, d

efin

itions an

d te

chnical

term

s.

LOC

ATIO

N

The

Tharisa

Min

e is

located

35km

east

of

Rusten

burg

and

120km

northw

est of Jo

han

nesb

urg in th

e North W

est Pro

vince

of So

uth A

frica.

Figure 1

Krugersdorp

Rustenburg

JOH

AN

NE

SB

UR

G

PR

ET

OR

IA

Randfontein Hartbeespoort

Brits

NO

RT

H

WE

ST

PR

OV

INC

E

GA

UT

EN

G

25o30' S25o30' S

26o00' S26o00' S

27o30' E

28o00' E

27o30' E

28o00' E

28o30' E 28o30' E

NT

harisa

Min

e

STATEM

ENT

BY C

OM

PETEN

T PER

SON

The M

ineral R

eso

urce an

d M

ineral R

ese

rve Statem

ent h

as been

revie

wed an

d th

e rele

vant d

ata extracte

d an

d co

mpile

d b

y Ken

Lom

berg. K

en Lo

mberg is a C

om

pete

nt P

erso

n, re

gistere

d w

ith

the

South

A

frican C

ouncil

for

Natu

ral Scie

ntific

Pro

fessio

ns

(SA

CN

ASP,

Private

Bag

X450,

Silve

rton, 012

7, South

Africa),

Reg. N

o.

400038/01

an

d hold

s a

BSc

(Geolo

gy an

d

Geo

chem

istry), BSc

(Ho

no

urs)

Geo

logy,

BC

om

(E

cono

mics

and Statistics),

MEng

(Min

ing

Engin

eerin

g), Pr.S

ci.Nat.

He

is

base

d at B

lock D

, So

merse

t Office E

state, 6

04 K

udu Stre

et,

Alle

n’s N

ek, 17

37, Jo

han

nesb

urg, S

outh

Africa. H

e is a geolo

gist

with

30 ye

ars’ experie

nce in

min

eral e

xplo

ration an

d m

inin

g

geo

logy, d

irectly lin

ked to

the m

inin

g industry an

d cu

rrently a

full-tim

e em

plo

yee o

f Coffe

y.

In

additio

n,

the

Min

eral

Rese

rve

Statem

ent

has

been

revie

wed an

d th

e rele

vant d

ata extracte

d an

d co

mpile

d b

y

Jaco Lo

therin

gen. H

e hold

s a BEng (M

inin

g), Pr.E

ng, is a m

inin

g

engin

eer

and a

dire

ctor

of

Ukw

azi M

inin

g Solu

tions.

He

is

registe

red w

ith th

e Engin

eerin

g Council o

f South

Africa (E

CSA

,

Private B

ag X691, B

rum

a, South

Africa), R

eg. N

o. 2

0030022.

He is a p

rincip

al min

ing e

ngin

eer w

ith ap

pro

priate e

xperie

nce

in th

e estim

ation, asse

ssment an

d e

valuatio

n o

f rele

vant m

ineral

rese

rves b

ased o

n th

e class of d

eposit an

d m

inin

g meth

odo

logy.

He is b

ased at H

azel C

lose

, Unit 4

B, First Flo

or, 141

Witch

-

Haze

l Street, H

ighve

ld, C

entu

rion, 016

9, South

Africa.

The C

om

pan

y has w

ritten co

nfirm

ation fro

m K

en Lo

mberg an

d

Jaco Lo

therin

gen th

at the in

form

ation d

isclose

d is in

com

plian

ce

with

the S

AM

REC

Co

de an

d th

at they h

ave conse

nte

d to

the

inclu

sion o

f this in

form

ation in

the fo

rm an

d co

nte

xt in

which

it appears.

Source

: Coffe

y Min

ing

Tharisa plc A

nnual Report 20142

0

Min

eral Reso

urce an

d M

ineral R

eserve Statemen

t (continu

ed)

Source

: Go

ogle Im

age of th

e Tharisa M

ine p

lan sh

ow

ing b

ore

hole lo

cations (co

llar positio

ns in

green) an

d o

utcro

p p

ositio

ns o

f UG

1

and M

G1 C

hro

mitite L

ayers

Ro

oik

op

pie

s 297JQ

UG

1 O

utc

rop

MG

1 O

utc

rop

N4

342JQ

01000m

N

OV

ERVIEW

When T

harisa w

as listed o

n th

e JSE in

April 2

014, th

e Min

eral

Reso

urce e

stimatio

n fo

r listing p

urp

ose

s was b

ased o

n a C

PR

com

pile

d by

Coffe

y. T

he

CPR

is

available

on th

e C

om

pan

y

website

, w

ww

.tharisa.co

m.

The

reso

urce

blo

ck m

odel

was

constru

cted u

sing all availab

le drill h

ole d

ata up to

Dece

mber

2013

. No ad

ditio

nal e

xplo

ration w

ork h

as been carrie

d o

ut

since th

en.

MIN

ING

RIG

HT

S SUM

MA

RY

Tharisa M

inerals h

old

s a Min

ing R

ight, gran

ted b

y the D

MR

(then th

e DM

E) in

term

s of th

e MPR

DA

on 19

Septe

mber

2008,

for

a perio

d of

30 ye

ars, to

vario

us

po

rtions

of

the

pro

perty 3

42 JQ

and th

e w

hole

of th

e p

roperty R

ooiko

ppie

s

297 JQ

. On 13

Augu

st 2009, th

e Min

ing R

ight w

as registe

red

in th

e Min

ing an

d P

etro

leum

Title

s Registratio

n O

ffice, u

nder

Refe

rence N

o 4

9/2

009(M

R).

On 7

March

2008, a M

inin

g Righ

t in re

spect o

f chro

me w

as

grante

d o

ver P

ortio

ns 9

6 an

d 18

3 o

f the p

roperty 3

42JQ

to

South

A

frican Pro

duce

rs an

d B

eneficiato

rs of

Chro

me

Ore

(Pty) Ltd

and re

gistere

d o

n 2

7 Ju

ly 2009. T

hese

rights w

ere

purch

ased b

y Tharisa M

inerals o

n 18

March

2008. In

July 2

011,

an ap

plicatio

n w

as gran

ted in

te

rms

of

sectio

n 10

2 of

the

MPR

DA

, to am

end th

e existin

g Min

ing R

ight b

y the ad

ditio

n o

f

Po

rtions 9

6, 18

3 an

d 2

86 o

f the p

roperty 3

42 JQ

to th

e Min

ing

Righ

t 49/2

009(M

R).

The T

harisa M

ineral R

eso

urce an

d M

ineral R

ese

rve have b

een

deple

ted

from

th

e M

ineral

Reso

urce

and

Min

eral

Rese

rve

declare

d in

the C

om

pete

nt P

erso

n’s R

epo

rt as at 31 D

ece

mber

2013

by

the p

roductio

n ove

r th

e perio

d.

The

deple

tion of

all the re

levan

t MG

Chro

mitite L

ayers h

ave been take

n in

to

account fo

r the p

erio

d to

end S

epte

mber 2

014.

Tharisa M

inerals

Lonm

inIm

palaEastplats

Brits

MR

UG

2

VMR

VM

R

VM

R

MR

Bapong

MG

outcrop

ElandA

ngloplat

Lonmin

Angloplat (Pandora)

Eastplats

Tharisa plc A

nnual Report 20142

1

OVERVIEWOPERATIONAL REVIEWGOVERNANCE LEADERSHIP REVIEWMINERAL RESOURCE AND MINERAL RESERVE

STATEMENT

ABRIDGED ANNUAL FINANCIAL STATEMENTS

GLOSSARYSHAREHOLDER INFORMATION

MIN

ERA

L RESO

UR

CE

GEO

LOG

Y A

ND

MIN

ERA

LISATIO

N

The T

harisa M

ine is situ

ated o

n th

e south

-weste

rn lim

b o

f the

Bush

veld

Co

mple

x and is u

nderlain

by th

e Mid

dle G

roup (M

G)

and U

pper G

roup (U

G) C

hro

mitite L

ayers.

The M

G C

hro

mitite L

ayers o

utcro

p o

n th

e pro

perty strikin

g

rough

ly east to

west an

d d

ippin

g at 9° to

15° to th

e no

rth.

Tow

ards th

e weste

rn e

xte

nt o

f the o

utcro

p, th

e dip

is steeper,

with

a

gentle

chan

ge in

strike

to N

W-S

E.

The

stratigraphy

typically n

arrow

s to th

e west an

d th

e dip

steepens. T

he d

ip

typically

shallo

ws

out

at depth

acro

ss th

e exte

nt

of

the

min

e area.

The

MG

C

hro

mitite

Laye

r package

consists

of

six gro

ups

of

chro

mitite

layers,

bein

g th

e M

G0

Chro

mitite

Laye

r, M

G1

Chro

mitite

Laye

r, th

e M

G2

Chro

mitite

Laye

r (su

bdivid

ed

into

C, B

and A

chro

mitite laye

rs), the M

G3 C

hro

mitite L

ayer

and th

e M

G4 C

hro

mitite

Laye

r (su

bdivid

ed in

to 4(0

), 4 an

d

4A

chro

mitite laye

rs)). The laye

rs betw

een th

e chro

mitite laye

rs

frequently in

clude strin

gers o

r disse

min

ations o

f chro

mite

. The

MG

Chro

mitite L

ayers at th

e Tharisa M

ine are a typ

ical stack of

tabular d

eposits.

The stru

ctural in

terp

retatio

n o

f the T

harisa M

ine w

as pre

viously

base

d o

n th

e aero

magn

etic d

ata and th

e drillin

g data. T

he o

nly

significan

t fault is a ste

eply d

ippin

g NW

-SE tre

ndin

g no

rmal

fault w

ith a d

ow

nth

row

of le

ss than

30m

to th

e east. T

his fau

lt

occu

rs only o

n th

e far no

rth-e

astern

corn

er o

f the p

roperty an

d

will h

ave little effe

ct on m

inin

g of th

e MG

Chro

mitite L

ayers o

n

the m

ine. A

NE-S

W su

b-ve

rtical dyke o

f som

e 10m

thickn

ess

was in

terp

rete

d o

n th

e aero

magn

etic su

rvey. T

he d

yke is not

expecte

d to

have a m

ajor im

pact o

n m

inin

g. The o

nly o

ther

majo

r featu

re of in

tere

st is the S

pru

itfonte

in u

pfo

ld o

r poth

ole

which

is locate

d o

n th

e pro

pertie

s imm

ediate

ly west o

f the

min

e. It affe

cts the U

G2 C

hro

mitite L

ayer as w

ell as th

e rest o

f

the C

ritical Zo

ne b

elo

w.

The M

ineral R

eso

urce e

stimate w

as com

ple

ted o

ver th

e Min

ing

Righ

t of

Tharisa

Min

erals

to a

depth

of

750m

fo

r th

e M

G

Chro

mitite L

ayers an

d U

G1 C

hro

mitite L

ayer:

EXPLO

RAT

ION

DR

ILLING

Six d

iamo

nd b

ore

hole

s were d

rilled d

urin

g January 19

97 b

y a

local e

ntre

pre

neur, M

r Hennie B

oth

a, in th

e no

rth-w

est p

art

of 3

42JQ

pro

perty (K

01, K02 an

d K

03) an

d o

n th

e ad

jacent

pro

perty,

Spru

itfonte

in

341JQ

(B

SB

01, BSB

02

and

BSB

03).

Five NQ

diam

ete

r, vertical d

iamo

nd b

ore

ho

les to

talling 6

54m

were d

rilled alo

ng strike o

n th

e p

roperty d

urin

g 2006 b

y Thari

Reso

urce

s under th

e supervisio

n o

f Coffe

y Min

ing. O

ne T

NW

diam

ete

r diam

ond b

ore

hole (K

4M

1) was d

rilled 5

m aw

ay from

K4 fo

r m

etallu

rgical te

stwo

rk. T

he

collar

positio

ns

of

these

bo

rehole

s were su

rveye

d b

y Clive M

acinto

sh S

urve

ys.

A to

tal of 121

vertical b

ore

hole

s and 2

3 d

efle

ctions, re

pre

sentin

g

22 5

00m

of d

rilling, w

ere co

mple

ted in

the p

erio

d fro

m M

arch

2007 to

Octo

ber 2

007. D

rilling w

as main

ly of N

Q (4

7.50m

m)

diam

ete

r exce

pt fo

r 18 b

ore

hole

s of T

NW

(60.4

mm

) diam

ete

r

com

ple

ted fo

r m

etallu

rgical te

stwo

rk. Fo

ur

deep bo

rehole

s

drille

d o

n R

ooiko

ppie

s were d

rilled B

Q (3

6.2

7mm

) diam

ete

r.

A to

tal of 13

NQ

diam

ete

r defle

ctions w

ere d

rilled o

ff som

e

moth

er

bo

rehole

s fo

r lith

olo

gical co

mpariso

n.

Ten

TN

W

diam

ete

r defle

ctions w

ere d

rilled to

contrib

ute b

ulk m

aterial

for th

e m

etallu

rgical testw

ork. S

hallo

w p

ercu

ssion b

ore

hole

s

were d

rilled alo

ng th

e full strike e

xte

nt o

n th

e MG

1 C

hro

mitite

Laye

r, on th

e pro

perty, to

accurate

ly dem

arcate it. A to

tal of

31 p

ercu

ssion b

ore

ho

les w

ere d

rilled; th

e bo

reho

les ave

raged

15m

in d

epth

.

The d

rilling p

rogram

me w

as design

ed so

that b

ore

hole

s would

inte

rsect th

e base o

f the M

G1 C

hro

mitite L

ayer alo

ng strike

at appro

xim

ately 3

0m

, 60m

, 120m

, 180m

, 300m

, 500m

and

1 0

00m

belo

w su

rface. A

base

line o

f 220m

was late

r added fo

r

greate

r cove

rage of th

e deposit. T

he d

rilling p

rogram

me w

as

design

ed to

drill th

e deposit clo

sest to

the o

utcro

p at h

igher

density th

an fu

rther d

ow

ndip

, so th

at the su

bse

quent M

ineral

Reso

urce e

stimate clo

se to th

e outcro

p co

uld

confid

ently b

e

declare

d as an

indicate

d an

d/o

r measu

red M

ineral R

eso

urce

in p

reparatio

n fo

r a feasib

ility study an

d th

e consid

eratio

n o

f

open p

it min

ing. T

he p

rogram

me fo

r the d

eeper b

ore

ho

les o

n

the R

oo

ikoppie

s pro

perty, w

here Lo

nm

in w

as then m

inin

g the

Mere

nsky R

eef an

d U

G2 C

hro

mitite L

ayer, w

as revise

d d

ue

to vario

us d

ifficultie

s relatin

g to sitin

g the b

ore

hole

s to avo

id

holin

g into

existin

g undergro

und in

frastructu

re. Fe

wer, m

ore

wid

ely sp

aced b

ore

hole

s were th

ere

fore d

rilled.

The

collars

of

all th

e bo

rehole

s w

ere

surve

yed.

Dow

nhole

surve

ys were co

mple

ted fo

r all the b

ore

hole

s drille

d to

a depth

greate

r than

120m

. All ge

olo

gical and sam

plin

g pro

toco

ls use

d

are to

in

tern

ational

standard

s. T

he

pre

cious

metal

analyse

s

(Pt, P

d,

Rh,

Au,

Ru,

Ir, O

s) w

ere

undertake

n usin

g N

iS/M

S

analy

tical meth

od an

d b

ase metals an

alysis usin

g the IC

P Fu

sion

D/O

ES an

alytical m

eth

od, at G

enalysis (Jo

han

nesb

urg).

A

com

pre

hensive

quality

assuran

ce an

d

quality

contro

l

(QA

/QC

) pro

gramm

e w

as carrie

d

out

concu

rrently

with

drillin

g. Each

inte

rsectio

n w

as com

posite

d afte

r codin

g for all

stratigraphic laye

rs.

The P

t, Pd, R

h, A

u, R

u, Ir, O

s, Cu, N

i, Al, C

a, Cr, C

r2 O

3 , Fe, M

g

and S

i conce

ntratio

ns w

ere co

mposite

d u

tilising th

e weigh

ting

by d

ensity an

d th

ickness. T

his is co

nsid

ere

d n

ece

ssary as the

litholo

gies

have

significan

tly diffe

rent

densitie

s. A

n

analysis

of

the

unit

thickn

ess

show

ed th

at th

ere

is little

corre

lation

betw

een

the

conce

ntratio

n

and

thickn

ess,

confirm

ing

that

the u

se of

conce

ntratio

n

was

appro

priate

in

the

Min

eral

Reso

urce e

stimate

.

An asse

ssment o

f the h

igh grad

e com

posite

s was co

mple

ted

to d

ete

rmin

e wheth

er h

igh grad

e cuttin

g was re

quire

d. B

ased

on th

e ab

ove

assessm

ent, n

o h

igh grad

e cu

tting o

r cappin

g

was u

ndertake

n.

A se

ries o

f two

-dim

ensio

nal grad

e estim

ates w

ere ge

nerate

d

base

d o

n ge

olo

gically and ge

och

em

ically defin

ed u

nits w

ithin

the

MG

C

hro

mitite

Laye

r cycle

. T

he

Min

eral

Reso

urce

estim

ation w

as co

mple

ted usin

g eith

er

an in

verse

distan

ce

(pow

er

2) o

r O

rdin

ary K

riging

meth

odo

logy,

dependin

g if

a suitab

le variogram

for e

ach variab

le with

in e

ach u

nit co

uld

be m

odelle

d.

Tharisa plc A

nnual Report 20142

2

Min

eral Reso

urce an

d M

ineral R

eserve Statemen

t (continu

ed)

MIN

ERA

L RESO

UR

CE D

ECLA

RAT

ION

The M

G C

hro

mitite L

ayer M

ineral R

eso

urce

estim

ate for S

epte

mber 2

014 h

as been d

eple

ted fro

m th

e D

ece

mber 2

013 d

eclaratio

n

usin

g pro

ductio

n d

ata.

Tharisa M

inerals’ R

eso

urce at 3

0 S

epte

mber 2

014 is re

po

rted in

clusive o

f Min

eral R

ese

rve

Min

eralR

eso

urce

Tonnes Mt

6E + A

u grade (g/t)

4E grade (g/t)C

r2 O

3 grade (%

)C

ontained 4E (M

oz)C

ontained 6E +

Au (M

oz)C

ontained C

r2 O

3 (Mt)

2014Sept

2013

Sept

2014Sept

2013

Sept

2014Sept

2013

Sept

2014Sept

2013

Sept

2014Sept

2013

Sept

2014Sept

2013

Sept

2014Sept

2013

Sept

Measu

red

52.77355.8

69

1.531.53

1.141.14

21.3921.3

91.934

2.0

48

2.5962.74

811.288

11.950

Indicate

d129.529

130.0

29

1.681.6

81.24

1.2422.24

22.24

5.1645.18

46.996

7.023

28.80728.919

Infe

rred

650.045650.0

45

1.541.5

41.13

1.1319.93

19.93

23.61623.616

32.18532.18

5129.554

129.5

54

Total832.347

835.9431.56

1.561.15

1.1520.38

20.3830.714

30.84841.777

41.956169.649

170.423

Relatio

nsh

ip b

etw

een e

xplo

ration re

sults, M

ineral R

eso

urce an

d M

ineral R

ese

rve show

ing T

harisa M

inerals’ R

eso

urce an

d M

ineral

Rese

rve as at 3

0 S

epte

mber 2

014

Co

nsid

era

tion

of m

inin

g, m

eta

llurg

ical, e

co

no

mic

, mark

etin

g, le

gal, e

nviro

nm

en

tal,

socia

l an

d g

overn

men

tal fa

cto

rs (the m

od

ifyin

g fa

cto

rs)

Increasing level of geoscientific knowledge and confidence

Reported as in situ

mineralisation estim

atesR

eported as mineable

production estimates

Min

era

l Reso

urc

e

30.714 M

oz 4E

169.649 M

t contained Cr

2 O3

Infe

rred

23.616 M

oz 4E, 129.554 Mt C

r2 O

3

Ind

icate

d

5.164 M

oz 4E, 28.807 Mt C

r2 O

3

Measu

red

1.934 M

oz 4E, 11.288 Mt C

r2 O

3

Exp

lora

tion

resu

lts

Min

era

l Rese

rve

4.648 M

oz 4E

23.801 M

t contained Cr

2 O3

Pro

bab

le

3.262 M

oz 4E, 16.771 Mt C

r2 O

3 3

Pro

ved

1.386 M

oz 4E, 7.029 Mt C

r2 O

3

In-p

it drillin

g contin

ues fo

r the p

urp

ose

s of m

inin

g operatio

ns. N

o ad

ditio

nal re

source d

rilling h

as been co

mple

ted o

r is conte

mplate

d

in th

e near fu

ture

.

MIN

ERA

L RESERV

E DEC

LAR

ATIO

N

The M

G C

hro

mitite L

ayer M

ineral R

ese

rve e

stimate fo

r Septe

mber 2

014 h

as been d

eple

ted fro

m th

e D

ece

mber 2

013 d

eclaratio

n

usin

g pro

ductio

n d

ata. The L

ife of M

ine P

lan w

as design

ed to

extract th

e MG

Chro

mitite L

ayers, firstly fro

m o

pen p

it min

ing d

ow

n

to a m

axim

um

depth

of 2

00 m

etre

s and su

bse

quently fro

m u

ndergro

und e

xtractio

n b

y mean

s of th

e bo

rd an

d p

illar min

ing m

eth

od.

The o

pen p

it shell d

esign

inclu

des th

e final p

it high

wall slo

pe d

esign

s, the b

lasting an

d lo

adin

g meth

odolo

gy as well as th

e sequence

of e

xtractio

n an

d a d

etaile

d d

estin

ation sch

edule re

po

rting to

rock d

um

ps an

d tailin

gs storage facilitie

s.

Tharisa plc A

nnual Report 20142

3

OVERVIEWOPERATIONAL REVIEWGOVERNANCE LEADERSHIP REVIEWMINERAL RESOURCE AND MINERAL RESERVE

STATEMENT

ABRIDGED ANNUAL FINANCIAL STATEMENTS

GLOSSARYSHAREHOLDER INFORMATION

Min

eral

Reserve

Tonnes Mt

5E + A

u grade (g/t)

4E grade (g/t)C

r2 O

3 grade (%

)C

ontained 4E (M

oz)C

ontained Cr

2 O3

(Mt)

Open p

it

2014 Sept

2013

Sept

2014 Sept

2013

Sept

2014 Sept

2013

Sept

2014 Sept

2013

Sept

2014 Sept

2013

Sept

2014 Sept

2013

Sept

Pro

ved

35.98439.3

311.54

1.531.20

1.1919.53

19.411.39

1.50

7.07.6

Pro

bab

le68.377

68.9

39

1.501.4

91.16

1.1619.26

19.242.56

2.5

713.2

13.3

Total104.361

108.2701.51

1.501.18

1.1719.36

19.303.95

4.0720.2

20.9

Min

eral

Reserve

Tonnes Mt

5E + A

u grade (g/t)

4E grade (g/t)C

r2 O

3 grade (%

)C

ontained 4E (M

oz)C

ontained Cr

2 O3

(Mt)

Under-

ground

2014 Sept

2013

Sept

2014 Sept

2013

Sept

2014 Sept

2013

Sept

2014 Sept

2013

Sept

2014 Sept

2013

Sept

2014 Sept

2013

Sept

Pro

ved

––

––

––

––

––

––

Pro

bab

le18.649

18.6

49

1.521.5

21.17

1.1719.31

19.310.70

0.7

03.6

3.6

Total18.649

18.6491.52

1.521.17

1.1719.31

19.310.70

0.703.6

3.6

Min

eral

Reserve

Tonnes Mt

5E + A

u grade (g/t)

4E grade (g/t)C

r2 O

3 grade (%

)C

ontained 4E (M

oz)C

ontained Cr

2 O3

(Mt)

Total

2014 Sept

2013

Sept

2014 Sept

2013

Sept

2014 Sept

2013

Sept

2014 Sept

2013

Sept

2014 Sept

2013

Sept

2014 Sept

2013

Sept

Pro

ved

35.98439.3

311.54

1.531.20

1.1919.53

19.411.39

1.50

7.07.6

Pro

bab

le87.026

87.5

88

1.501.5

01.17

1.1619.27

19.25

3.263.2

716.8

16.9

Total123.010

126.9191.51

1.511.18

1.1719.35

19.304.65

4.7723.8

24.5

The M

easu

red M

ineral R

eso

urce d

ecre

ased b

y 5.5

% as a re

sult o

f deple

tion d

urin

g the ye

ar, the to

tal Min

eral R

eso

urce d

ecre

ased

by le

ss than

1%. T

he P

rove

d M

ineral R

ese

rve decre

ased b

y 9%

as a resu

lt of d

eple

tion d

urin

g the ye

ar, the to

tal Min

eral R

ese

rve

decre

ased b

y 3%

.

No In

ferred M

ineral R

esource w

as inclu

ded

or co

nsid

ered fo

r the o

pen

pit o

peratio

n m

ine p

lan o

n w

hich

the o

pen

pit p

ortio

n o

f the

Min

eral Reserve estim

ate was b

ased. In

ferred M

ineral R

esource w

as inclu

ded

in th

e undergro

und sectio

n o

f the m

ine p

lan. If th

e Inferred

Reso

urce is exclu

ded

from

the u

ndergro

und m

ine p

lan, th

e undergro

und p

roject m

ay not b

e feasible

. The M

ineral R

eserve declared

was

derived

from

the In

dicated

Min

eral Reso

urce p

ortio

n in

cluded

in th

e undergro

und Life o

f Min

e plan

. The u

ndergro

und sectio

n is p

lanned

after the o

pen

pit sectio

n h

as been

dep

leted.

MAT

ERIA

L RISK

S

A sign

ificant ch

ange in

the ap

plied

2013 C

PR

com

modity p

rices exists com

pared

to cu

rrent m

arket prices. R

educed

prices relative to

the P

GM

long term

price w

ere used

, while th

e chro

me lo

ng term

price w

as applied

with

out red

uctio

n to

select the eco

nom

ic pit lim

it.

Sustain

ed lo

w co

mm

odity p

rices over th

e long term

could

materially in

fluen

ce the o

verall value o

f the o

peratio

n an

d co

uld

have a m

aterial

impact o

n th

e size of th

e open

pit p

ortio

n o

f the M

ineral R

eserve.

Due to

the selectio

n o

f an u

ltimate p

it with

a value an

d exten

ded

life strategy, sustain

ed lo

w co

st and efficien

t min

ing w

ith sp

ecific focu

s

on w

aste backfill an

d p

rocessin

g recoveries is critical to

create sustain

ed valu

e from

the o

pen

pit o

peratio

n.

REPO

RTIN

G C

OD

ES AN

D C

OM

PLIAN

CE

The re

po

rting o

f Min

eral R

eso

urce an

d M

ineral R

ese

rve for T

harisa M

inerals is d

eclare

d in

accord

ance w

ith th

e prin

ciple

s and

guid

elin

es

of

the

South

A

frican

Co

de

for

the

Repo

rting

of

Explo

ration

Resu

lts, M

ineral

Reso

urce

s an

d

Min

eral

Rese

rves

(SA

MR

EC

Co

de) (2

009).

All th

e regu

latory p

erm

its have b

een o

btain

ed o

r applie

d fo

r. The d

irecto

rs are unaw

are of an

y legal p

roce

edin

gs or im

pedim

ents to

the co

ntin

ued o

peratio

n o

f the T

harisa M

ine.

The L

ife of M

ine P

lan in

cludes th

e upgrad

ing o

f in-p

it road

s and ram

ps, to

geth

er w

ith th

e ado

ptio

n o

f min

ing m

eth

ods d

eve

loped

durin

g the p

revio

us 12

mo

nth

s.

Tharisa plc A

nnual Report 20142

4

Governance

Board

of d

irectors

EXEC

UT

IVE D

IREC

TOR

S

1. Loucas PouroulisC

hairman

Mining a

nd Meta

llurgical E

ngineering (Hons)

(Nationa

l Technical U

niversity, Athens, G

reece)

Loucas

Pouro

ulis

is th

e C

hairm

an

of

the

Gro

up,

with

resp

onsib

ility fo

r th

e deve

lopm

ent

of

strategy

and

the

identificatio

n of n

ew

opportu

nitie

s for th

e

Gro

up. H

e began h

is career in C

ypru

s in

1962, an

d h

is initial p

ost grad

uate train

ing

took p

lace in Germ

any, Sweden an

d C

ypru

s. Lo

ucas is train

ed as a m

inin

g and m

etallu

rgical engin

eer

and has

50 ye

ars' experie

nce

in

min

ing

explo

ration,

pro

ject

man

agem

ent,

finan

cing

and pro

ductio

n in

open

pit

and

undergro

und

min

ing

operatio

ns,

inclu

din

g PG

M an

d go

ld m

ines.

He

imm

igrated to

So

uth

Africa

in 196

4

and

join

ed

Anglo

A

merican

, where h

e rose rap

idly th

rough

th

e m

anage

ment

ranks

and

rece

ived

exte

nsive train

ing an

d e

xperie

nce

. In 1971,

Loucas

began

to

pursu

e his

ow

n m

inin

g in

tere

sts, in

itially fo

cusin

g on

gold

m

inin

g opportu

nitie

s consid

ere

d u

neco

nom

ical by

the m

ajors. B

y the 19

90s, h

e had

estab

lished

Petra

Diam

onds

and,

since

2000,

has

estab

lished E

land P

latinum

, Tharisa, K

ameni,

Keato

n Energy an

d T

ransA

frika Reso

urce

s.

2. Phoevos PouroulisC

hief Executive Officer

Bachelor of Science a

nd Business A

dm

inistration

(Boston U

niversity, Massa

chusetts, USA

)

Phoevo

s Pouro

ulis

is th

e C

hief

Exe

cutive

Office

r of

the

Gro

up,

with

resp

onsib

ility fo

r imple

mentatio

n of o

verall strate

gy and

man

agem

ent.

Phoevo

s has

held

vario

us

senio

r man

agerial an

d o

peratio

nal p

ositio

ns

in his

15-ye

ar care

er.

He

has

exte

nsive

experie

nce

in pro

ject

man

agem

ent,

min

ing

design

, co

mm

issionin

g an

d

min

ing

operatio

ns,

inclu

din

g ch

rom

e an

d

PG

M

min

es, h

aving b

een in

volve

d in So

uth A

frica's m

inin

g industry sin

ce 2003

. He h

as serve

d

as C

om

mercial

Dire

ctor

for

Chro

mex

Min

ing

and

was

a fo

undin

g m

em

ber

of

Keato

n Energy,

where

he

is cu

rrently

a non-execu

tive dire

ctor. P

hoevo

s serves on

the

Council

of

the

Inte

rnatio

nal

Chro

me

Deve

lopm

ent A

ssociatio

n.

3. Michael Jones

Chief Finance O

fficer

Bachelor of A

ccounting (University of K

waZ

ulu-

Nata

l (Pietermaritzburg), South A

frica), CA(SA

);

Mem

ber, South Africa

n Institute of Cha

rtered

Accounta

nts

Mich

ael Jo

nes is th

e Chief Fin

ance O

fficer

of

the

Gro

up an

d is

resp

onsib

le fo

r th

e ove

rall finan

cial operatio

n and th

e finan

cial re

portin

g man

agem

ent o

f the G

roup. H

e has

18 ye

ars’ experie

nce in in

vestm

ent b

ankin

g, fo

cusin

g on

merge

rs an

d acq

uisitio

ns

and

capital

raisings

of

both

equity

and

debt.

Mich

ael also

has six ye

ars’ senio

r finan

cial m

anage

ment

experie

nce

in th

e m

inin

g explo

ration an

d d

evelo

pm

ent sp

here

.

IND

EPEND

ENT

NO

N-

EXEC

UT

IVE D

IREC

TOR

S

4. David Salter

Lead independent non-executive director

Bachelor of Science (H

ons), Ph.D. in M

ineral

Technology (Imperia

l College, London), FSA

IMM

David

Salte

r has

a to

tal of

30

years'

experie

nce

in th

e deve

lopm

ent

and

man

agem

ent o

f min

ing co

mpan

ies, in

cludin

g both

open

pit

and

undergro

und

PG

M

min

ing o

peratio

ns. D

avid w

as the m

anagin

g dire

ctor o

f Elan

d P

latinum

until its sale to

X

strata in

2007.

He

is th

e non-e

xecu

tive C

hairm

an of

Keato

n Energy

and

a non-

exe

cutive d

irecto

r of a n

um

ber o

f unliste

d

min

ing co

mpan

ies.

5. Ioannis Drapaniotis

Independent non-executive director

Bachelor of E

ngineering (Mining a

nd Meta

llurgy)

(Nationa

l Technical U

niversity of Athens, G

reece)

Ioan

nis

Drap

anio

tis has

ove

r 46

years’

experie

nce in th

e min

ing an

d m

etallu

rgical se

ctors,

havin

g w

orke

d

in vario

us

man

agerial

and

operatio

nal

positio

ns

in

min

ing

com

pan

ies

since

1964. H

e w

as th

e general m

anage

r of th

e Federatio

n of

Gre

ek In

dustry fro

m 2

001

to 2

008, an

d th

e exe

cutive ch

airman o

f the H

elle

nic In

stitute

for

Occu

patio

nal

Health

and Safe

ty fro

m

2008 to

2011.

1

4

23

5

Tharisa plc A

nnual Report 20142

5

OVERVIEWOPERATIONAL REVIEWGOVERNANCE LEADERSHIP REVIEWMINERAL RESOURCE AND MINERAL RESERVE

STATEMENT

ABRIDGED ANNUAL FINANCIAL STATEMENTS

GLOSSARYSHAREHOLDER INFORMATION

6. Antonios D

jakourisIndependent non-executive director

Cha

rtered Accounta

nt and Fellow

of the Institute

of Cha

rtered Accounta

nts in Engla

nd and W

ales

Anto

nio

s Djako

uris is a q

ualifie

d ch

artere

d

accountan

t and h

as experie

nce as a m

anage

r an

d d

irecto

r, havin

g serve

d in a n

um

ber o

f posts

with

the

Ban

k of

Cyp

rus,

inclu

din

g in

tern

al au

dit,

credit

review

an

d

retail

ban

king, an

d as G

roup G

eneral M

anage

r in

charge o

f operatio

ns. Fro

m 2

003

to 2

009,

he

dire

cted

the

Ban

k of

Cyp

rus

group's

ove

rseas o

peratio

ns, in

cludin

g ban

ks in the

Unite

d K

ingd

om

, Australia, R

ussia, R

om

ania

and

Ukrain

e.

Anto

nio

s cu

rrently

serve

s in an h

onorary cap

acity on th

e board

and

exe

cutive co

mm

ittee o

f the C

ypru

s Anti-

Can

cer So

ciety, o

ne o

f the large

st charitie

s in C

ypru

s.

NO

N-EX

ECU

TIV

E DIR

ECTO

RS

7. Brian C

hi Ming C

hengN

on-executive director

Bachelor of Science (B

abson C

ollege,

Massa

chusetts, USA

)

Brian

Cheng

is an

exe

cutive

dire

ctor

of

NW

S Hold

ings L

imite

d (“N

WS”), a H

ong

Kong liste

d co

mpany. H

e is resp

onsib

le for

ove

rseein

g N

WS’

infrastru

cture

busin

ess

and m

erge

r and acq

uisitio

n affairs. He is

also

a non-e

xecu

tive dire

ctor

of

five oth

er co

mpan

ies liste

d o

n the H

ong K

ong

Stock

Exch

ange

. Befo

re jo

inin

g N

WS,

Brian w

orke

d as a re

search an

alyst in the

Infrastru

cture

and

Conglo

merate

s se

ctor

for C

LSA

Asia-P

acific Marke

ts.

8. Om

ar Kam

alN

on-executive director

Bachelor in E

conomics a

nd Political Science, PhD

in Mana

gement (B

anking a

nd Finance)

Om

ar Kam

al has

more

than

20

years’

experie

nce

in th

e fie

ld

of

finan

ce an

d

inve

stment.

He

has

a bro

ad sp

ectru

m of

know

ledge an

d e

xperie

nce gain

ed th

rough

his

academ

ic backgro

und,

lectu

ring

at unive

rsity, servin

g as a key exe

cutive at tw

o

pro

min

ent M

iddle E

astern re

gional b

anks as

well as h

aving b

een th

e partn

er in ch

arge of

Islamic Fin

ancial Se

rvices A

dviso

ry Gro

up at

Ern

st & Y

oung L

LP. H

e has se

rved in m

any se

nio

r man

agerial p

ositio

ns th

rough

out h

is care

er

and he

is cu

rrently

the

co-G

roup

CEO

at AR

H (Su

isse) S.A

., the fam

ily office

of

a pro

min

ent

Saudi

family.

Om

ar has

serve

d an

d co

ntin

ues to

serve o

n the b

oard

s of a n

um

ber o

f com

pan

ies –

both liste

d an

d

unliste

d –

across vario

us b

usin

ess se

ctors,

inclu

din

g educatio

n,

health

care,

ban

king

and m

inin

g.

67

8

Tharisa plc A

nnual Report 20142

6

Corporate governance

INT

ROD

UC

TIO

N

The C

om

pan

y is listed o

n th

e JSE u

nder th

e ‘General M

inin

g’

secto

r and, as su

ch, is su

bje

ct to th

e JSE L

istings R

equire

ments,

as well as th

e Cyp

rus C

om

pan

ies L

aw an

d K

ing III.

The

Board

is

fully

com

mitte

d to

th

e prin

ciple

s of

Kin

g III,

belie

ving

that

accountab

ility, in

tegrity,

fairness,

transp

arency

and in

tegrate

d th

inkin

g is esse

ntial to

the G

roup’s lo

ng te

rm

sustain

ability

and to

its

ongo

ing

ability

to cre

ate valu

e fo

r

inve

stors an

d o

ther stake

hold

ers.

In th

is, our first A

nnual R

epo

rt as a listed co

mpan

y, we h

ave

sough

t to e

xplain

how

the G

roup ad

here

s to th

e JSE L

istings

Require

ments an

d th

e prin

ciple

s of K

ing III. A

statem

ent o

f our

com

plian

ce with

Kin

g III is available o

n th

e Co

mpan

y website

,

ww

w.th

arisa.com

.

Oth

er th

an h

aving an

Exe

cutive C

hairm

an an

d n

ot h

aving an

in-h

ouse

independent

inte

rnal

audit

functio

n,

the

Co

mpan

y

is com

plian

t, in all m

aterial re

spects, w

ith K

ing III. T

o m

itigate

these n

on-co

mplian

ces, D

avid S

alter h

as been ap

po

inte

d as

Lead

Independent D

irecto

r and P

ricew

aterh

ouse

Co

opers h

as

been ap

poin

ted as th

e inte

rnal au

dito

rs of th

e Gro

up.

ROLE A

ND

RESPO

NSIBILIT

IES OF T

HE BO

AR

D

The

Board

is

the

ultim

ate go

vern

ing

auth

ority,

resp

onsib

le

for th

e Co

mpan

y’s strategy, ke

y policie

s, eth

ics and co

rpo

rate

gove

rnan

ce,

as w

ell

as ap

pro

ving

the

Co

mpan

y’s fin

ancial

obje

ctives

and targe

ts. T

he

Board

re

cogn

ises

that

strategy,

perfo

rman

ce, risk an

d su

stainab

ility are inse

parab

le and th

at

the e

xecu

tion o

f strategy can

have a m

aterial im

pact o

n th

e

Co

mpan

y’s cre

ation

of

value

and

its vario

us

stakehold

ers.

The B

oard

is fundam

entally im

po

rtant to

the ach

ieve

ment o

f

the C

om

pan

y’s missio

n, fin

ancial o

bje

ctives an

d fu

lfilment o

f its

corp

orate re

spo

nsib

ilities in

a sustain

able m

anner an

d p

rovid

es

effe

ctive lead

ersh

ip o

n an

eth

ical foundatio

n w

hile e

nsu

ring th

at

the G

roup is se

en to

behave as a re

spo

nsib

le corp

orate citize

n.

The B

oard

is the u

ltimate cu

stodian

of th

e gove

rnan

ce framew

ork

which

com

mits th

e Co

mpan

y and its re

pre

sentative

s to act

accord

ing to

the h

ighest stan

dard

s of fairn

ess, acco

untab

ility,

resp

onsib

ility, tran

spare

ncy,

eth

ics an

d

sustain

ability.

The C

om

pan

y’s appro

ach to

corp

orate go

vern

ance strive

s to

be stake

ho

lder in

clusive

, base

d o

n go

od co

mm

unicatio

n, an

d is

inte

grated in

to e

very asp

ect o

f the C

om

pan

y’s busin

ess.

The C

om

pan

y has ad

opte

d a B

oard

Charte

r settin

g out th

e

com

positio

n,

role

, re

spo

nsib

ilities,

obligatio

ns,

rights

and

pow

ers o

f the B

oard

. The B

oard

Charte

r is available

on th

e

Co

mpan

y website

.

BOA

RD

CO

MPO

SITIO

N

Mem

bers

of

the

Board

are

appoin

ted

by

the

Co

mpan

y’s

share

hold

ers.

The

Board

also

has

the

pow

er

to

appoin

t

dire

ctors,

subje

ct to

su

ch ap

poin

tments

bein

g ap

pro

ved

by sh

arehold

ers at th

e next A

GM

. Pursu

ant to

the te

rms o

f

the B

oard

Charte

r, appoin

tments to

the B

oard

are mad

e on

reco

mm

endatio

n of

the

No

min

ation C

om

mitte

e.

A fo

rmal

po

licy detailin

g the p

roce

dure

s for ap

po

intm

ents to

the B

oard

has b

een ad

opte

d b

y the C

om

pan

y. No

n-e

xecu

tive dire

ctors

are re

quire

d to

be

individ

uals

of

calibre

and cre

dib

ility, be

independent o

f man

agem

ent an

d p

osse

ss the n

ece

ssary skills

and e

xpertise to

brin

g judge

ment to

bear o

n issu

es o

f strategy,

perfo

rman

ce, re

source

s, dive

rsity, standard

s of co

nduct an

d

evalu

ation o

f perfo

rman

ce.

Upo

n

appoin

tment,

all new

dire

ctors

are

pro

vided

with

inductio

n m

aterials

to fam

iliarise th

em

w

ith th

e C

om

pan

y’s

operatio

ns,

its busin

ess

enviro

nm

ent,

and

exe

cutive

man

agem

ent, an

d to

induct th

em

in th

eir fid

uciary d

utie

s and

resp

onsib

ilities.

The B

oard

curre

ntly co

mprise

s eigh

t dire

ctors, th

ree o

f who

m

are exe

cutive

dire

ctors,

nam

ely

the

Exe

cutive

Chairm

an,

Chie

f Exe

cutive

Office

r an

d C

hie

f Fin

ance

Office

r, an

d five

no

n-e

xecu

tive dire

ctors, th

ree o

f who

m are co

nsid

ere

d to

be

independent. T

here is a cle

ar balan

ce of p

ow

er an

d au

tho

rity

at Board

leve

l to e

nsu

re that n

o o

ne d

irecto

r has u

nfe

ttere

d

decisio

n-m

aking p

ow

er, an

d th

ere is a cle

ar distin

ction b

etw

een

the ro

les o

f the E

xecu

tive Chairm

an an

d th

e Chie

f Exe

cutive

Office

r. D

avid

Salte

r is

the

Co

mpan

y’s Le

ad

Independent

Dire

ctor.

RE-ELEC

TIO

N O

F DIR

ECTO

RS

In te

rms o

f the C

om

pan

y’s Article

s of A

ssociatio

n, an

y dire

ctors

appoin

ted b

y the B

oard

durin

g the co

urse o

f the fin

ancial ye

ar,

shall

hold

office

only

until

the

next

AG

M of

the

Co

mpan

y

follo

win

g their ap

poin

tment an

d sh

all then re

tire and b

e eligib

le

for re

-ele

ction. In

additio

n, o

ne-th

ird o

f no

n-e

xecu

tive dire

ctors

must re

tire from

office at e

ach A

GM

, in acco

rdan

ce with

Kin

g III

and th

e Co

mpan

y’s Article

s of A

ssociatio

n. T

he n

on-e

xecu

tive

dire

ctors re

tiring at e

ach A

GM

will b

e those d

irecto

rs who

have b

een th

e longe

st servin

g since th

eir last e

lectio

n. R

etirin

g

dire

ctors are e

ligible fo

r re-e

lectio

n, an

d if so

re-e

lecte

d, are

deem

ed to

not h

ave vacated th

eir o

ffice.

Give

n th

at the C

om

pan

y listed o

n th

e JSE d

urin

g the cu

rrent

finan

cial year, all n

on-e

xecu

tive dire

ctors w

ill retire b

y rotatio

n

and w

ill be availab

le fo

r re-e

lectio

n at th

e A

GM

. Om

ar Kam

al,

havin

g been ap

poin

ted d

urin

g the co

urse o

f the fin

ancial ye

ar,

and B

rian C

heng, h

aving b

een ap

poin

ted su

bse

quent to

the

finan

cial year e

nd, w

ill retire an

d b

e available

for re

-ele

ction.

Tharisa plc A

nnual Report 20142

7

OVERVIEWOPERATIONAL REVIEWGOVERNANCE LEADERSHIP REVIEWMINERAL RESOURCE AND MINERAL RESERVE

STATEMENT

ABRIDGED ANNUAL FINANCIAL STATEMENTS

GLOSSARYSHAREHOLDER INFORMATION

Directo

rD

ate of ap

poin

tmen

tR

eason

Om

ar Kam

al11 Ju

ne 2

014

Appoin

ted d

urin

g the fin

ancial year u

nder review

Brian

Chen

g19 D

ecember 2

014

Appoin

ted su

bseq

uen

t to th

e finan

cial year end

Ioan

nis D

rapan

iotis

22 M

ay 2008

Retirem

ent b

y rotatio

n

David

Salter27 O

ctober 2

010

Retirem

ent b

y rotatio

n

Anto

nio

s Djako

uris

11 O

ctober 2

011

Retirem

ent b

y rotatio

n

Brief sum

maries of their curricula vitae ap

pear on p

ages 24 and 2

5

resp

onsib

ilities as m

em

bers o

f the A

udit C

om

mitte

e effe

ctively

and b

ring a b

alance o

f skills and e

xpertise

, particu

larly in th

e

min

ing in

dustry, to

the C

om

mitte

e.

Whilst O

mar K

amal is re

garded as n

on-in

dependent b

y the

Board

, his m

em

bersh

ip o

f the A

udit C

om

mitte

e brin

gs depth

and ad

ditio

nal fin

ancial e

xpertise to

the C

om

mitte

e, give

n h

is

qualificatio

ns an

d e

xperie

nce in

finan

ce and e

cono

mics.

The

Gro

up’s

independent

exte

rnal

audito

rs, in

dependent

inte

rnal

audito

rs, C

hie

f Fin

ance

Office

r an

d C

hie

f Exe

cutive

Office

r attend C

om

mitte

e meetin

gs by in

vitation. T

he A

udit

Co

mm

ittee

meets

with

th

e in

tern

al an

d exte

rnal

audito

rs,

with

out an

y exe

cutive d

irecto

rs bein

g pre

sent, th

rough

out th

e

year. B

oth

the in

tern

al and e

xte

rnal au

dito

rs have u

nre

stricted

access to

the ch

airman

of th

e Co

mm

ittee an

d to

the ch

airman

of th

e Board

.

The ch

airman

of th

e Audit C

om

mitte

e is require

d to

repo

rt to

the B

oard

after e

ach m

eetin

g of th

e Co

mm

ittee.

For

mo

re in

form

ation

on

the

activities

of

the

Co

mm

ittee

durin

g the ye

ar under re

view

, refe

r to th

e Repo

rt of th

e Audit

Co

mm

ittee o

n p

age 35.

The C

om

mitte

e meets as o

ften as is d

eem

ed n

ece

ssary, but is

require

d to

meet at le

ast twice a ye

ar. The A

udit C

om

mitte

e

met five tim

es d

urin

g the ye

ar under re

view

.

RISK

CO

MM

ITT

EE

Contro

l of

the

com

ple

te pro

cess

of

risk m

anage

ment,

the

evalu

ation o

f its effective

ness an

d ap

pro

val of re

com

mended

risk man

agem

ent an

d in

tern

al contro

l strategie

s, system

s and

pro

cedure

s are key Board

resp

onsib

ilities. Fo

r this re

ason, th

e

Risk C

om

mitte

e com

prise

s the e

ntire B

oard

. The C

om

mitte

e is

chaire

d b

y Anto

nio

s Djako

uris, an

independent n

on-e

xecu

tive

dire

ctor. O

ther m

em

bers o

f the R

isk Com

mitte

e are independent

non-e

xecu

tive dire

ctors D

avid Salte

r, Ioan

nis D

rapan

iotis, n

on-

exe

cutive d

irecto

rs Om

ar Kam

al and B

rian C

heng, E

xecu

tive

Chairm

an Lo

ucas P

ouro

ulis, C

hief E

xecu

tive Office

r Phoevo

s

Pouro

ulis an

d C

hief Fin

ance O

fficer M

ichae

l Jones.

The

Risk

Co

mm

ittee

revie

ws

man

agem

ent

repo

rts o

n th

e

adequacy an

d e

ffective

ness o

f the G

roup’s risk m

anage

ment

functio

ns,

ensu

res

com

plian

ce w

ith

the

Gro

up’s

risk

man

agem

ent p

olicie

s and re

view

s the ad

equacy o

f the G

roup’s

insu

rance co

verage

.

Durin

g the ye

ar under re

view

the C

om

mitte

e conducte

d a h

igh-

leve

l revie

w o

f the re

sidual risks an

d actio

n p

lans id

entifie

d an

d

form

ulate

d b

y man

agem

ent fo

llow

ing a facilitate

d risk asse

ssment

worksh

op an

d su

bse

quent b

usin

ess risk re

view

, and co

ntin

ues to

monito

r imple

mentatio

n p

rogre

ss mad

e by risk o

wners.

BOA

RD

MEET

ING

S

The B

oard

meets at le

ast four tim

es p

er ye

ar and at su

ch o

ther

times as m

ay be re

quire

d. T

he B

oard

met six tim

es d

urin

g the

year u

nder re

view

.

BOA

RD

CO

MM

ITT

EES

Certain

re

spo

nsib

ilities

are re

serve

d

for

the

Board

, w

hile

oth

ers are d

ele

gated to

Board

com

mitte

es, e

ach w

ith fo

rmal

man

date

s an

d

term

s of

refe

rence

, w

ithout

abdicatin

g th

e

Board

’s ove

rall fiduciary d

utie

s and re

spo

nsib

ilities. T

he te

rms

of re

fere

nce o

f each

Board

com

mitte

e dete

rmin

es, inter a

lia,

the co

mpositio

n, p

urp

ose

, scope o

f man

date

, and p

ow

ers an

d

dutie

s of th

e com

mitte

e. B

oard

com

mitte

es p

rovid

e feedback

to th

e Board

thro

ugh

repo

rts by th

eir re

spective ch

airmen.

Term

s of re

fere

nce o

f the vario

us co

mm

ittees are co

mplian

t

with

the JS

E L

istings R

equire

ments, are re

view

ed o

n a re

gular

basis an

d are

available o

n th

e Co

mpan

y website

.

AU

DIT

CO

MM

ITT

EE

The

Audit

Co

mm

ittee

pro

vides

the

Board

w

ith

additio

nal

assuran

ce re

gardin

g th

e quality

and

reliab

ility of

finan

cial

info

rmatio

n u

sed b

y the B

oard

and th

e finan

cial statem

ents o

f

the G

roup. T

he C

om

mitte

e revie

ws th

e inte

rnal an

d fin

ancial

contro

l system

s, accountin

g system

s and re

po

rting an

d in

tern

al

audit fu

nctio

ns. It liaise

s with

the G

roup’s e

xte

rnal au

dito

rs and

mo

nito

rs co

mplian

ce w

ith le

gal re

quire

ments.

Furth

erm

ore

,

the

Audit

Co

mm

ittee asse

sses

the

perfo

rman

ce of

finan

cial

man

agem

ent,

appro

ves

exte

rnal

audit

fees

and

budge

ts,

mo

nito

rs no

n-au

dit se

rvices p

rovid

ed b

y the e

xte

rnal au

dito

rs

against

an

appro

ved

policy

and

ensu

res

that

man

agem

ent

addre

sses an

y identifie

d in

tern

al contro

l weakn

ess. In

additio

n,

the

Audit

Co

mm

ittee

ove

rsees

the

inte

grated

repo

rting

pro

cess,

risk m

anage

ment

system

s, in

form

ation

tech

nolo

gy

risks (as they re

late to fin

ancial re

po

rting), an

d th

e Gro

up’s

whistle

blo

win

g arrange

ments an

d p

olicie

s and p

roce

dure

s for

pre

ventin

g corru

pt b

ehavio

ur an

d d

ete

cting frau

d an

d b

ribery.

The

Co

mm

ittee

has

unre

stricted

access

to

all C

om

pan

y

and

Gro

up

info

rmatio

n

and

may

seek

info

rmatio

n

from

any

em

plo

yee. T

he

Co

mm

ittee

may

also

consu

lt exte

rnal

pro

fessio

nal ad

visors in

exe

cutin

g its dutie

s.

The

Co

mm

ittee is

chaire

d

by A

nto

nio

s D

jakouris,

an

independent n

on-e

xecu

tive dire

ctor. O

ther m

em

bers o

f the

Audit

Co

mm

ittee

are in

dependent

no

n-e

xecu

tive dire

ctors

David

Salte

r an

d

Ioan

nis

Drap

anio

tis, an

d

no

n-e

xecu

tive

dire

ctor, O

mar K

amal.

Anto

nio

s Djako

uris is a ch

artere

d acco

untan

t and p

osse

sses

the

requisite

expertise

in fin

ance

, acco

untin

g an

d au

ditin

g,

havin

g experie

nce in

inte

rnal au

dit, cre

dit re

view

, info

rmatio

n

tech

nolo

gy an

d

retail

ban

king.

David

Salte

r an

d

Ioan

nis

Drap

anio

tis have su

fficient fin

ancial acu

men to

disch

arge their

24 and 25

35

Tharisa plc A

nnual Report 20142

8

The R

isk Co

mm

ittee m

et o

nce d

urin

g the ye

ar under re

view

.

A fo

rmal risk w

orksh

op, at w

hich

strategic risks an

d th

e to

p

ten G

roup risks an

d m

itigation strate

gies w

ere re

view

ed an

d

evalu

ated, w

as held

durin

g Dece

mber 2

014.

NO

MIN

ATIO

N C

OM

MIT

TEE

The

No

min

ation

Co

mm

ittee

ensu

res

that

pro

cedure

s fo

r

appoin

tments to

the B

oard

are form

al and tran

spare

nt b

y makin

g

reco

mm

endatio

ns to

the B

oard

on all n

ew

appoin

tments in

accord

ance w

ith th

e Co

mpan

y’s policy fo

r such

appoin

tments.

It do

es

so

by

regu

larly re

view

ing

the

size,

structu

re an

d

com

positio

n

of

the

Board

, takin

g co

gnisan

ce of

the

skills,

know

ledge

, independence

, experie

nce an

d d

iversity o

f Board

mem

bers.

The

No

min

ation

Co

mm

ittee

is also

re

spo

nsib

le

for e

valuatin

g B

oard

perfo

rman

ce,

undertakin

g perfo

rman

ce

appraisals

of

the

Chairm

an

and

dire

ctors,

evalu

ating

the

effe

ctiveness o

f Board

com

mitte

es, m

aking re

com

mendatio

ns

to th

e Board

and d

ete

rmin

ing B

oard

succe

ssion p

lans.

The

Co

mm

ittee

is ch

aired

by

David

Salte

r, th

e Le

ad

Independent D

irecto

r. Oth

er m

em

bers o

f the C

om

mitte

e are

Anto

nio

s D

jakouris,

an in

dependent

no

n-e

xecu

tive dire

ctor,

and Lo

ucas P

ouro

ulis, th

e Exe

cutive C

hairm

an. Lo

ucas P

ouro

ulis

is entitle

d to

particip

ate and co

ntrib

ute to

the C

om

mitte

e but

is not e

ntitle

d to

vote o

n an

y matte

r befo

re it. In th

e e

vent o

f

a tied vo

te, D

avid S

alter h

as a casting vo

te.

The w

ork o

f the C

om

mitte

e d

urin

g the ye

ar follo

wed b

oth

its

term

s of re

fere

nce an

d e

stablish

ed go

od p

ractice in co

rpo

rate

gove

rnan

ce.

The

Co

mm

ittee

conducte

d re

gular

revie

ws

of

the stru

cture

, size and co

mpositio

n o

f the B

oard

, with

specific

em

phasis o

n skills, kn

ow

ledge

, independence an

d d

iversity o

f

the B

oard

mem

bers. It co

nsid

ere

d an

d re

com

mended to

the

Board

the ap

poin

tment o

f one ad

ditio

nal d

irecto

r, Dr O

mar

Kam

al, durin

g th

e ye

ar under

revie

w.

The

appoin

tment

of

Mr B

rian C

heng as an

additio

nal d

irecto

r was also

consid

ere

d

and re

com

mended to

the B

oard

subse

quent to

the fin

ancial

year e

nd. T

he C

om

mitte

e conducte

d re

gular se

lf-evalu

ations o

f

its ow

n activitie

s and co

nclu

ded th

at it was o

peratin

g effe

ctively.

The C

om

mitte

e met fo

ur tim

es d

urin

g the ye

ar under re

view

.

REM

UN

ERAT

ION

CO

MM

ITT

EE

The

Rem

uneratio

n C

om

mitte

e co

nsid

ers

the

rem

uneratio

n

framew

ork

of

the

Exe

cutive

Chairm

an,

Chie

f Exe

cutive

Office

r, Chie

f Finan

ce Office

r, the C

om

pan

y Secre

taries an

d

oth

er m

em

bers o

f the e

xecu

tive man

agem

ent o

f the C

om

pan

y

and

its su

bsid

iaries,

with

th

e assistan

ce an

d

guid

ance

of

independent e

xperts an

d lo

cal and in

tern

ational b

ench

marks.

The C

om

mitte

e also co

nsid

ers b

onuse

s, which

are discre

tionary

and b

ased u

po

n ge

neral e

cono

mic variab

les, th

e perfo

rman

ce

of th

e Co

mpan

y and e

ach in

divid

ual’s p

erfo

rman

ce, allo

cations

in

term

s of

the

Gro

up’s

ince

ntive

schem

es

and

certain

oth

er e

mplo

yee b

enefits an

d sch

em

es.

All m

em

bers o

f the C

om

mitte

e are independent n

on-e

xecu

tive

dire

ctors. T

he C

om

mitte

e is chaire

d b

y Anto

nio

s Djako

uris.

Oth

er m

em

bers o

f the C

om

mitte

e are Ioan

nis D

rapan

iotis an

d

David

Salte

r. The C

hie

f Exe

cutive O

fficer an

d C

hie

f Finan

ce

Office

r are invite

d to

attend m

eetin

gs of th

e Co

mm

ittee to

make p

rese

ntatio

ns, e

xce

pt w

hen th

eir o

wn re

muneratio

n is

under co

nsid

eratio

n.

Durin

g th

e ye

ar, th

e C

om

mitte

e re

view

ed vario

us

aspects

of th

e Gro

up’s re

muneratio

n p

olicy an

d stru

cture

, inclu

din

g

exe

cutive salarie

s, perfo

rman

ce base

d re

muneratio

n sch

em

es

and th

e Share A

ward

Plan

. The C

om

mitte

e is satisfied w

ith th

e

pre

vailing p

olicie

s, rem

uneratio

n an

d stru

cture

. The C

om

mitte

e

conducte

d re

gular

self-e

valuatio

ns

of

its ow

n activitie

s an

d

conclu

ded th

at it was o

peratin

g effe

ctively.

The C

om

mitte

e met th

ree tim

es d

urin

g the ye

ar under re

view

.

SAFET

Y, HEA

LTH

AN

D EN

VIRO

NM

ENT

CO

MM

ITT

EE

The

Safe

ty, H

ealth

an

d

Enviro

nm

ent

Co

mm

ittee

deve

lops

and re

view

s th

e G

roup’s

framew

ork,

po

licies

and gu

idelin

es

on safe

ty, health

an

d enviro

nm

ental

man

agem

ent,

mo

nito

rs

key

indicato

rs o

n

accidents

and

incid

ents an

d

consid

ers

deve

lopm

ents

in

rele

vant

safety,

health

an

d

enviro

nm

ental

practice

s and re

gulatio

ns.

The C

om

mitte

e is chaire

d b

y David

Salte

r, the Le

ad In

dependent

Dire

ctor. T

he o

ther m

em

bers o

f the co

mm

ittee are A

nto

nio

s

Djako

uris

and

Ioan

nis

Drap

anio

tis, both

in

dependent

no

n-

exe

cutive d

irecto

rs. The C

hie

f Exe

cutive O

fficer atte

nds th

e

meetin

g by in

vitation.

The C

om

mitte

e met fo

ur tim

es d

urin

g the ye

ar under re

view

.

ATT

END

AN

CE AT

MEET

ING

S

Directo

rBoard

Audit

Nom

inatio

nR

emuneratio

nR

iskSH

E

Loucas Po

uro

ulis

6/6

–4/4

–1/1

–

Phoevo

s Pouro

ulis

6/6

#5/5

#1/4

#3/3

1/1

#3/4

Mich

ael Jones

6/6

#5/5

–#3

/31/1

–

David

Salter6/6

5/5

4/4

3/3

1/1

4/4

Anto

nio

s Djako

uris

6/6

5/5

4/4

3/3

1/1

4/4

Ioan

nis D

rapan

iotis

6/6

5/5

–3/3

1/1

4/4

Om

ar Kam

al *2

/6

^––

–#1

/1–

* A

ppointed 1

1 June 2

014

#

By invitation

^

Appointed to the C

omm

ittee on 12 N

ovember 2

014

Corp

orate go

vernan

ce (continu

ed)

Tharisa plc A

nnual Report 20142

9

OVERVIEWOPERATIONAL REVIEWGOVERNANCE LEADERSHIP REVIEWMINERAL RESOURCE AND MINERAL RESERVE

STATEMENT

ABRIDGED ANNUAL FINANCIAL STATEMENTS

GLOSSARYSHAREHOLDER INFORMATION

JOIN

T G

ROU

P CO

MPA

NY

SECR

ETAR

IES

The ro

le of th

e Join

t Gro

up C

om

pan

y Secre

taries is, inter a

lia,

to p

rovid

e guid

ance an

d ad

vice to th

e Board

with

resp

ect to

matte

rs relatin

g to th

e JSE L

istings R

equire

ments, th

e Cyp

rus

Co

mpan

ies

Law

, K

ing

III an

d oth

er

corp

orate

gove

rnan

ce-

relate

d m

atters. In

additio

n to

their statu

tory d

utie

s, the Jo

int

Co

mpan

y Secre

taries p

rovid

e the B

oard

as a whole

, individ

ual

dire

ctors an

d th

e various co

mm

ittees w

ith gu

idan

ce as to th

e

man

ner in

which

their re

spo

nsib

ilities sh

ould

be d

ischarge

d in

the b

est in

tere

st of th

e Gro

up.

The B

oard

form

ally assesse

d an

d co

nsid

ere

d th

e perfo

rman

ce

and qualificatio

ns

of

the

Join

t C

om

pan

y Secre

taries

and is

satisfied th

at the Jo

int C

om

pan

y Secre

taries are co

mpete

nt,

suitab

ly qualifie

d

and

experie

nce

d.

Neith

er

of

the

Join

t

Co

mpan

y Secre

taries

is a

dire

ctor

of

Tharisa,

no

r are

they

relate

d o

r connecte

d to

any o

f the d

irecto

rs and th

e Board

is satisfied th

at the Jo

int C

om

pan

y Secre

taries m

aintain

ed an

arms-le

ngth

relatio

nsh

ip w

ith th

e Board

.

ETH

ICS H

OT

LINE A

ND

WH

ISTLEBLO

WIN

G

POLIC

Y

A

24-h

our

“whistle

blo

win

g” Eth

ics H

otlin

e m

onito

red

by

an

independent

exte

rnal

party

is fu

lly o

peratio

nal

and

facilitates

the

dete

ction an

d re

solu

tion of

eth

ical vio

lations.

This co

nfid

ential an

d an

onym

ous h

otlin

e pro

vides an

impartial

facility for e

mplo

yees, se

rvice pro

viders, cu

stom

ers an

d o

ther

stakehold

ers

to

repo

rt an

y eth

ics-relate

d

matte

r su

ch

as

fraudule

nt

activity, co

rruptio

n,

statuto

ry m

alpractice

, unsafe

behavio

ur, fin

ancial an

d acco

untin

g reportin

g irregu

larities an

d

oth

er d

eviatio

ns fro

m e

thical b

ehavio

ur. It is th

e duty o

f the

Audit C

om

mitte

e to

ensu

re that arran

gem

ents are

in p

lace fo

r

the in

dependent in

vestigatio

n o

f such

matte

rs and ap

pro

priate

follo

w-u

p actio

n.

CO

NFLIC

TS O

F INT

EREST

Dire

ctors are re

quire

d to

declare th

eir o

ther d

irecto

rship

s and

inte

rests, as w

ell as an

y conflict o

f inte

rest in

any m

atter b

efo

re

the B

oard

.

SHA

RE D

EALIN

G A

ND

INSID

ER T

RA

DIN

G

All d

irecto

rs, senio

r exe

cutive

s and e

mplo

yees w

ho

, by virtu

e

of th

eir p

ositio

ns h

ave access to

info

rmatio

n, are re

garded as

insid

ers, are re

quire

d to

obtain

prio

r auth

orisatio

n to

deal in

the C

om

pan

y’s share

s.

Clo

sed p

erio

ds are o

bse

rved as re

quire

d b

y the JS

E L

istings

Require

ments.

The

Co

mpan

y’s dire

ctors,

exe

cutive

s an

d

em

plo

yees are n

ot p

erm

itted to

deal in

the C

om

pan

y’s share

s

durin

g close

d p

erio

ds o

r when th

ey are in

posse

ssion o

f no

n-

public in

form

ation. A

dditio

nal clo

sed p

erio

ds w

ill be e

nfo

rced

should

th

e C

om

pan

y be

subje

ct to

an

y co

rpo

rate activity

where a cau

tionary an

nounce

ment is p

ublish

ed.

INFO

RM

ATIO

N T

ECH

NO

LOG

Y G

OV

ERN

AN

CE

The B

oard

Charte

r com

mits th

e Board

to assu

min

g ultim

ate

resp

onsib

ility for e

nsu

ring th

at effe

ctive in

form

ation te

chnolo

gy

(IT) syste

ms, in

tern

al contro

l, auditin

g and co

mplian

ce policie

s,

pro

cedure

s and p

roce

sses are im

ple

mente

d in

ord

er to

avoid

or m

itigate key IT

-relate

d b

usin

ess risks. A

t year e

nd a d

etaile

d

IT go

vern

ance fram

ew

ork w

as in th

e pro

cess o

f bein

g pre

pare

d.

INT

ERN

AL C

ON

TRO

L SYST

EMS

To

meet

the

Co

mpan

y’s re

spo

nsib

ility to

pro

vide

reliab

le

finan

cial in

form

ation,

the

Co

mpan

y m

aintain

s fin

ancial

and o

peratio

nal syste

ms o

f inte

rnal co

ntro

l. These co

ntro

ls are

design

ed to

pro

vide re

asonab

le assuran

ce that tran

sactions are

conclu

ded in

acco

rdan

ce w

ith m

anage

ment’s

auth

ority,

that

the

assets

are ad

equate

ly pro

tecte

d again

st m

aterial lo

sses,

unau

tho

rised acq

uisitio

n, u

se or d

isposal, an

d th

at transactio

ns

are pro

perly au

tho

rised an

d re

cord

ed.

The syste

ms in

clude a d

ocu

mente

d o

rganisatio

nal stru

cture an

d

divisio

n o

f resp

onsib

ility, estab

lished p

olicie

s and p

roce

dure

s

which

are

com

municate

d

thro

ugh

out

the

Gro

up,

and

the

carefu

l sele

ction, train

ing an

d d

eve

lopm

ent o

f peo

ple

.

The

board

m

onito

rs th

e o

peratio

n of

the

inte

rnal

contro

l

system

s in o

rder to

dete

rmin

e wheth

er th

ere are d

eficie

ncie

s.

Co

rrective actio

ns are take

n to

addre

ss contro

l deficie

ncie

s as

they are id

entifie

d. T

he B

oard

, operatin

g thro

ugh

the A

udit

Co

mm

ittee,

ove

rsees

the

finan

cial re

po

rting

pro

cess

and

inte

rnal co

ntro

l system

s.

The C

om

pan

y do

es n

ot h

ave an in

-ho

use in

dependent in

tern

al

audit fu

nctio

n. T

he A

udit C

om

mitte

e revie

ws, o

n an

annual

basis, w

heth

er th

ere

is a need fo

r an in

-ho

use in

tern

al audit

functio

n an

d m

akes

the

nece

ssary re

com

mendatio

n to

th

e

Board

. The A

udit C

om

mitte

e has co

nsid

ere

d th

e decisio

n at

the tim

e of listin

g that, give

n th

e size and stage o

f deve

lopm

ent

of th

e Co

mpan

y and th

e Gro

up, an

in-h

ouse in

tern

al audit

functio

n is

no

t ju

stified,

and is

still of

the

opin

ion th

at th

e

appo

intm

ent o

f Price

wate

rho

use

Co

opers as in

tern

al audito

rs

for th

e G

roup su

fficiently m

itigates th

e risk o

f not h

aving an

in-

ho

use in

tern

al audit fu

nctio

n.

There are in

here

nt lim

itations to

the e

ffective

ness o

f any syste

m

of in

tern

al contro

l, inclu

din

g the p

ossib

ility of h

um

an e

rror an

d

the circu

mve

ntio

n o

r ove

rridin

g of co

ntro

ls. Acco

rdin

gly, an

effe

ctive inte

rnal co

ntro

l system

can p

rovid

e only re

asonab

le

assuran

ce w

ith

resp

ect

to

finan

cial state

ment

pre

paratio

n

and th

e safegu

ardin

g of asse

ts.

Tharisa plc A

nnual Report 20143

0

Rem

uneration report

estab

lishes acco

untab

ility by lin

king to

tal rew

ard to

busin

ess

obje

ctives

and

the

exe

cutio

n

there

of

and

man

aging

it in

a fair

and

transp

arent

man

ner

in

a bid

to

fin

d

a balan

ce

betw

een sh

arehold

er

retu

rn re

quire

ments,

afford

ability

and

ince

ntivisatio

n. T

he th

ree sh

ort- an

d lo

ng-te

rm in

centive

s aim

to ad

dre

ss dive

rse em

plo

yee n

eeds acro

ss diffe

ring cu

lture

s.

SHO

RT-TER

M BO

NU

S SCH

EME

The G

roup h

as imple

mente

d a sh

ort-te

rm b

onus sch

em

e for all

ban

ds o

f em

plo

yees an

d is calcu

lated at 16

% o

f the re

spective

em

plo

yees’ re

muneratio

n p

ackages fo

r on-targe

t perfo

rman

ce.

The

bo

nuse

s are

no

t gu

arante

ed,

but

are dependent

on

the ach

ieve

ment

of

safety

standard

s an

d

are payab

le o

nly

upo

n th

e ach

ieve

ment

of

pro

ductio

n targe

ts an

d perso

nal

perfo

rman

ce stan

dard

s. T

he

bo

nuse

s are

payab

le an

nually

in

arrears

for

exe

cutive

dire

ctors,

quarte

rly in

arre

ars fo

r

man

agem

ent an

d e

mplo

yees grad

ed ab

ove P

aterso

n b

and D

3

and m

onth

ly in arre

ars for e

mplo

yees o

f ban

ds D

3 an

d b

elo

w.

SHA

RE A

WA

RD

PLAN

In

anticip

ation

of

listing

the

share

s of

the

Co

mpan

y o

n

the

JSE,

the

share

hold

ers

appro

ved th

e Share

Aw

ard Plan

2014

. The p

urp

ose

of th

e S

hare

Aw

ard P

lan is to

retain

and

ince

ntivise e

mplo

yees o

f the G

roup. T

he n

um

ber o

f award

s

and th

e perfo

rman

ce conditio

ns attach

ing th

ere

to are se

t by

the R

em

uneratio

n C

om

mitte

e.

Under th

e Share A

ward

Plan

the fo

llow

ing aw

ards m

ay be m

ade:

Conditio

nal A

ward

s, which

are conditio

nal aw

ards o

f a specified

num

ber o

f shares in

the C

om

pany (T

harisa Sh

ares), contin

gent

on th

e ach

ievemen

t of

perfo

rman

ce co

nditio

ns

establish

ed

by th

e R

emuneratio

n

Com

mittee

. The

vesting

perio

ds

for

these

award

s are

also

establish

ed

by

the

Rem

uneratio

n

Com

mittee; an

d

Appreciatio

n R

ights, w

hich

are rights to

receive such

num

ber

of T

harisa Sh

ares equal to

the in

crease in th

e market p

rice of

such

shares o

n th

e JSE b

etween

the d

ate of gran

t and th

e date

of exercise o

f the aw

ard. T

he aw

ard m

ay be exercised

betw

een

the vestin

g date as set b

y the R

emuneratio

n C

om

mittee an

d

the fifth

anniversary o

f the d

ate of gran

t. Vestin

g of A

ppreciatio

n

Righ

ts m

ay also

be

contin

gent

upon

the

achievem

ent

of

perfo

rman

ce conditio

ns set b

y the R

emuneratio

n C

om

mittee

.

The

purp

ose

of

the

Co

nditio

nal

Aw

ards

and A

ppre

ciation

Righ

ts is to in

centivise se

lecte

d e

mplo

yees w

ho are e

mplo

yed

at m

anage

rial an

d

exe

cutive

leve

l w

ithin

th

e G

roup

to

ensu

re the re

tentio

n o

f key skills to

geth

er w

ith th

e individ

ual

achie

vem

ent o

f certain

perfo

rman

ce factors th

at are require

d

for th

e ongo

ing p

erfo

rman

ce and gro

wth

of th

e Gro

up an

d to

align m

anage

ment in

tere

sts with

those o

f share

hold

ers.

The first aw

ards u

nder th

e S

hare

Aw

ard P

lan w

ere m

ade o

n

9 A

pril 2

014, an

d th

e Rem

uneratio

n C

om

mitte

e will co

nsid

er

furth

er aw

ards o

n an

annual b

asis in te

rms o

f the ap

pro

ved

Share A

ward

Plan

.

REM

UN

ERAT

ION

CO

MM

ITT

EE

The co

mpositio

n, ro

le and re

spo

nsib

ilities o

f the R

em

uneratio

n

Co

mm

ittee are d

etaile

d o

n p

age 28. W

hile th

e Rem

uneratio

n

Co

mm

ittee

estab

lishes,

main

tains,

revie

ws

and

gove

rns

the

Gro

up’s

rem

uneratio

n po

licy, it

focu

ses

main

ly o

n th

e

rem

uneratio

n o

f dire

ctors, e

xecu

tives an

d se

nio

r man

agem

ent.

REM

UN

ERAT

ION

POLIC

Y

The

Gro

up’s

rem

uneratio

n policy

refle

cts th

e dyn

amics

of

the

marke

t an

d th

e co

nte

xt

in w

hich

th

e G

roup o

perate

s.

The p

olicy p

lays a vital role in

attracting, m

otivatin

g and re

tainin

g

em

plo

yees, m

anage

ment an

d d

irecto

rs with

the n

ece

ssary skills

to e

ffective

ly man

age operatio

ns an

d gro

w th

e busin

ess. T

he

Gro

up re

gularly

seeks

and co

nsu

lts re

muneratio

n su

rvey

service

s. The re

muneratio

n p

olicy ap

plie

s to all e

mplo

yees w

ho

are perm

anently e

mplo

yed an

d is n

ot ap

plicab

le to e

mplo

yees

of th

ird-p

arty contracto

rs.

Basic

rem

uneratio

n

package

s an

d

benefits

are se

t at

a

com

petitive

leve

l by

bench

markin

g pre

vailing

marke

t rate

s

in th

e min

ing in

dustry an

d are re

view

ed o

n an

annual b

asis.

The o

bje

ctive is to se

t leve

ls of re

muneratio

n fo

r South

African

em

plo

yees b

ased o

n th

e 50

th perce

ntile fo

r min

ing co

mpan

ies in

South

Africa an

d th

e 7

5th p

erce

ntile fo

r all com

pan

ies n

ationally

in South

A

frica. Salarie

s are

revie

wed an

nually,

taking

into

consid

eratio

n th

e eco

no

mic e

nviro

nm

ent an

d size

, structu

re

and fin

ancial p

erfo

rman

ce of th

e Gro

up. T

he m

inin

g industry

is, how

eve

r, a

very

com

petitive

marke

t w

ith

a scarcity

of

appro

priate skills an

d to

p-e

nd salary scale

s are ofte

n p

aid to

attract and re

tain critical skills.

Guaran

teed

cost-to

-com

pan

y re

muneratio

n

consists

of

a

cash co

mpo

nent

plu

s ce

rtain benefits

which

, dependin

g o

n

the e

mplo

ying co

mpan

y, inclu

de co

mpulso

ry mem

bersh

ip o

f

the G

roup p

rovid

ent fu

nd, w

hich

inclu

des risk b

enefits su

ch as

life, d

isability, fu

neral an

d d

read

dise

ase cove

r, and th

e Gro

up’s

medical aid

schem

e. V

arious allo

wan

ces are p

aid at ce

rtain jo

b

leve

ls or to

certain

job cate

gorie

s.

The G

roup aim

s to cre

ate and e

nfo

rce a high

perfo

rman

ce

cultu

re that m

otivate

s em

plo

yees to

achie

ve more th

an ju

st

satisfactory le

vels o

f perfo

rman

ce by d

iffere

ntiatin

g betw

een

exce

llent

and

medio

cre perfo

rman

ce.

By

ensu

ring

that

em

plo

yees are re

cogn

ised an

d re

ward

ed fo

r their p

erfo

rman

ce

in a fair an

d e

quitab

le man

ner, th

e Gro

up strive

s to re

munerate

em

plo

yees e

quitab

ly accord

ing to

the valu

e they co

ntrib

ute to

the G

roup.

At th

e A

GM

held

on 13

March

2014

, share

hold

ers ap

pro

ved

the d

esign

and im

ple

mentatio

n o

f the T

harisa S

hare A

ward

Plan

, which

serve

s to re

ward

long te

rm su

stained p

erfo

rman

ce,

align sh

arehold

er an

d e

xecu

tive inte

rests an

d re

tain ke

y talent.

Sho

rt-term

and lo

ng-te

rm in

centive

s are geare

d to

a num

ber

of

perfo

rman

ce facto

rs in

th

e busin

ess

and

achie

vem

ent

of

individ

ual

perfo

rman

ce.

The

rem

uneratio

n

philo

sophy

28

Tharisa plc A

nnual Report 20143

1

OVERVIEWOPERATIONAL REVIEWGOVERNANCE LEADERSHIP REVIEWMINERAL RESOURCE AND MINERAL RESERVE

STATEMENT

ABRIDGED ANNUAL FINANCIAL STATEMENTS

GLOSSARYSHAREHOLDER INFORMATION

GRO

UP EM

PLOY

EES CO

VER

ED BY

CO

LLECT

IVE

BA

RG

AIN

ING

So

me 6

3%

of T

harisa M

inerals’ e

ligible e

mplo

yees are m

em

bers

of

the

NU

M. T

harisa

Min

erals

has

a re

cogn

ition agre

em

ent

with

the N

UM

which

guaran

tees th

e unio

n fu

ll organ

isational

rights. A

ccord

ingly, all u

nio

nise

d e

mplo

yees’ salary le

vels, an

nual

incre

ases an

d allo

wan

ces are n

ego

tiated o

n a co

llective b

asis.

Furth

er

info

rmatio

n

on

labour

relatio

ns

can

be

found

on

page

s 10 an

d 16

.

EXEC

UT

IVE D

IREC

TOR

S

Each

dire

ctor

should

be

rem

unerate

d

fairly an

d

the

rem

uneratio

n p

aid to

each

dire

ctor sh

ould

take into

account

the

individ

ual

dire

ctor’s

leve

l of

resp

onsib

ility, skills

and

experie

nce

. All e

xecu

tive dire

ctors h

ave em

plo

yment co

ntracts

and are re

munerate

d in

accord

ance w

ith th

eir fu

nctio

n an

d

positio

n an

d are n

ot re

munerate

d fo

r their ro

les as d

irecto

rs.

Exe

cutive

dire

ctors

are su

bje

ct to

th

e G

roup’s

standard

term

s and

conditio

ns

of

em

plo

yment

with

notice

perio

ds

bein

g six mo

nth

s. In lin

e with

the re

muneratio

n gu

idelin

es o

f

Kin

g III, no e

xecu

tives h

ave exte

nded e

mplo

yment co

ntracts,

special te

rmin

ation b

enefits o

r ballo

on p

ayments lin

ked to

any

restrain

t of trad

e.

The e

xecu

tive dire

ctors are e

ligible to

particip

ate in th

e Share

Aw

ard P

lan.

Refe

rence is m

ade to

a rem

uneratio

n su

rvey o

f key p

ositio

ns

such

as CEO

and C

FO w

hen d

ete

rmin

ing re

muneratio

n le

vels.

Durin

g the ye

ar under re

view

, no in

crease

s were gran

ted to

exe

cutive d

irecto

rs and se

nio

r man

agem

ent in

view

of th

e difficu

lt

eco

nom

ic climate in

which

min

ing in

South

Africa is o

peratin

g.

With

effect fro

m 1

Octo

ber 2

013, th

e exe

cutive d

irecto

rs and

office

rs volu

nte

ere

d a 15%

reductio

n in

basic salary.

RET

IREM

ENT

BENEFIT

S

Durin

g th

e ye

ar, th

e re

levan

t gro

up

com

pan

ies

mad

e

contrib

utio

ns

for

all exe

cutive

dire

ctors

and

em

plo

yees

to th

e Gro

up pro

vident

funds.

The

rate of

contrib

utio

n is

betw

een 3

%

and

15%

, of

the

pensio

nab

le salary

of

these

individ

uals.

The

value

of

contrib

utio

ns

for

each

exe

cutive

dire

ctor ap

pears in

the su

mm

ary of d

irecto

rs’ rem

uneratio

n

and b

enefits b

elo

w.

EXEC

UT

IVE D

IREC

TOR

S’ REM

UN

ERAT

ION

Oth

er

Pro

vident

mate

rial

All am

ounts in

Basic

Expense

fund

benefits

Bo

nuse

sTotal

Total

US$’0

00

salaryallo

wan

ceco

ntrib

utio

ns

rece

ived

paid

20142013

Executive directors

L Pouro

ulis

580

––

––

580715

P P

ouro

ulis

444

1213

14–

483584

MG

Jones

360

–54

21–

435526

Other

To

p e

arner A

360

–22

64

–446

467

To

p e

arner B

313–

58

17–

388467

To

p e

arner C

244

–45

13–

302318

CO

ND

ITIO

NA

L AW

AR

DS

B

alance at

Allo

cated

First ve

sting

Allo

cation

Balance at

30 S

epte

mber

durin

g the

Date o

fdate

price

30 September

2013

year

allocatio

n(3

3%

of aw

ards)

(33%

) ZA

R2014

Executive directors

L Pouro

ulis

–161

052

9 A

pril 2

0149 A

pril 2

01538

161 052

P P

ouro

ulis

–13

4 211

9 A

pril 2

0149 A

pril 2

01538

134 211

MG

Jones

–12

0 7

89

9 A

pril 2

0149 A

pril 2

01538

120 789

Other

To

p e

arner A

–10

7 3

68

9 A

pril 2

0149 A

pril 2

01538

107 368

To

p e

arner B

–10

7 3

68

9 A

pril 2

0149 A

pril 2

01538

107 368

To

p e

arner C

–25 10

5

9 A

pril 2

0149 A

pril 2

01538

25 105

10 and 16

Tharisa plc A

nnual Report 20143

2

APPR

ECIAT

ION

RIG

HT

S

Balan

ce at30 S

epte

mber

2013

Allo

cated

durin

g the

year

Date o

fallo

cation

First vestin

gdate

(50%

of righ

ts)

Allo

cation

price

ZA

R

Balance at

30 September

2014

Executive directors

L Pouro

ulis

–80 5

26

9 A

pril 2

0149 A

pril 2

01538

80 526

P P

ouro

ulis

–67 10

59 A

pril 2

0149 A

pril 2

01538

67 105

MG

Jones

–60 3

94

9 A

pril 2

0149 A

pril 2

01538

60 394

Other

To

p e

arner A

–53

684

9 A

pril 2

0149 A

pril 2

01538

53 684

To

p e

arner B

–53

684

9 A

pril 2

0149 A

pril 2

01538

53 684

To

p e

arner C

–58 5

78

9 A

pril 2

0149 A

pril 2

01538

58 578

Rem

uneratio

n rep

ort (co

ntinu

ed)

NO

N-EX

ECU

TIV

E DIR

ECTO

RS’ R

EMU

NER

ATIO

N

No

n-e

xecu

tive dire

ctors are e

ntitle

d to

rece

ive fees fo

r their

service

s as

no

n-e

xecu

tive dire

ctors

and

for

mem

bersh

ip

of

Board

co

mm

ittees.

No

n-e

xecu

tive dire

ctors’

fees

are

dete

rmin

ed b

y the B

oard

and are p

ayable q

uarte

rly in arre

ars.

With

effe

ct from

1 O

ctober 2

013, th

e n

on-e

xecu

tive d

irecto

rs

volu

nte

ere

d a 15

% re

ductio

n in

dire

ctors’ fe

es.

No

n-e

xecu

tive dire

ctors’ fe

es fo

r the ye

ar under re

view

are

set o

ut b

elo

w.

Follo

win

g a bench

markin

g exe

rcise com

parin

g the C

om

pan

y’s

no

n-e

xecu

tive dire

ctors’

fees

with

th

ose

of

mediu

m

cap

reso

urce

s com

pan

ies liste

d o

n th

e JSE an

d co

mpan

ies ran

ked

betw

een 31

and 10

0 o

n th

e FT

SE 10

0, th

e Board

agreed to

reduce

the n

on-e

xecu

tive d

irecto

rs’ fees fo

r the 2

015 fin

ancial

year as fo

llow

s:

All am

ounts in

US$

FY2014

FY2015

Annual fe

e42 500

42 500

Co

mm

ittee ch

airman

42 50025 000

Co

mm

ittee m

em

ber

29 75018 000

No

n-e

xecu

tive dire

ctors

do not

particip

ate in

th

e G

roup’s

sho

rt- and lo

ng-te

rm in

centive

s and d

o n

ot co

ntrib

ute to

the

Gro

up p

rovid

ent fu

nd.

The G

roup p

ays for all trave

l and acco

mm

odatio

n e

xpense

s

incu

rred

by

dire

ctors

to

attend

Board

m

eetin

gs. A

ll no

n-

exe

cutive d

irecto

rs have e

nte

red in

to se

rvice agreem

ents w

ith

the C

om

pan

y which

set o

ut th

eir d

utie

s and re

spo

nsib

ilities as

no

n-e

xecu

tive dire

ctors.

NO

N-EX

ECU

TIV

E DIR

ECTO

RS’ FEES FO

R T

HE Y

EAR

UN

DER

REV

IEW

Safe

ty,

R

em

u-

Health

and

Oth

er

All am

ounts

Annual

Audit

Risk

No

min

ation

neratio

nEnviro

nm

ent

Gro

up

TotalTotal

in U

S$

fee

Co

mm

ittee

Co

mm

ittee

Co

mm

ittee

Co

mm

ittee

Co

mm

ittee

com

pan

ies

2014 2013

JD S

alter

42 5

00

29 7

50

–^

37 5

49

29 7

50

42 5

00

79 8

57

261 906251

953

A D

jakouris

42 5

00

42 5

00

–^

34 2

22

42 5

00

29 7

50

191 472

235 0

00

I Drap

anio

tis42 5

00

29 7

50

–^

–29 7

50

29 7

50

131 750

155 0

00

O M

Kam

al12

986

*–

#–

^–

––

12 986

–

* Appointed to the B

oard on 11 June 2

014

# A

ppointed to the A

udit Com

mittee on 1

2 N

ovember 2

014

^ The Risk C

omm

ittee comprises all m

embers of the B

oard and does not carry a fee

Tharisa plc A

nnual Report 20143

3

OVERVIEWOPERATIONAL REVIEWGOVERNANCE LEADERSHIP REVIEWMINERAL RESOURCE AND MINERAL RESERVE

STATEMENT

ABRIDGED ANNUAL FINANCIAL STATEMENTS

GLOSSARYSHAREHOLDER INFORMATION

Tharisa plc A

nnual Report 20143

4

Abridged A

nnual Financial Statem

ents

35

REPO

RT O

F TH

E AU

DIT

CO

MM

ITT

EE

36

CO

NSO

LIDAT

ED STAT

EMEN

T O

F PROFIT

O

R LO

SS AN

D O

TH

ER C

OM

PREH

ENSIV

E IN

CO

ME

37

CO

NSO

LIDAT

ED STAT

EMEN

T O

F FINA

NC

IAL

POSIT

ION

38

CO

NSO

LIDAT

ED STAT

EMEN

T O

F CH

AN

GES

IN EQ

UIT

Y

40

CO

NSO

LIDAT

ED STAT

EMEN

T O

F CA

SH

FLOW

S

41

NO

TES TO

TH

E FINA

NC

IAL STAT

EMEN

TS

Preparation of condensed consolidated annual financial statem

entsT

he

condense

d

conso

lidate

d

annual

finan

cial

statem

ents

for

the

year

ended

30

Septe

mber

2014

have b

een e

xtracte

d fro

m th

e au

dite

d an

nual

finan

cial state

ments

of

the

Gro

up,

but

have

not

been au

dite

d. T

he au

dito

r’s repo

rt on th

e audite

d

annual fin

ancial state

ments d

oes n

ot re

po

rt on all

of th

e info

rmatio

n co

ntain

ed in

this an

no

unce

ment.

Share

hold

ers are th

ere

fore ad

vised th

at in o

rder

to

obtain

a

full

understan

din

g of

the

finan

cial

positio

n an

d re

sults o

f the G

roup, th

ese co

ndense

d

statem

ents sh

ould

be re

ad to

geth

er w

ith th

e full

audite

d an

nual

finan

cial state

ments

and fu

ll au

dit

repo

rt.

These

condense

d

statem

ents

and

the

audite

d

annual fin

ancial state

ments, to

geth

er w

ith th

e audit

repo

rt, are

availab

le o

n th

e C

om

pan

y’s w

ebsite

,

ww

w.th

arisa.com

and are

available

for in

spectio

n at

the re

gistere

d o

ffice of th

e Co

mpan

y.

The

dire

ctors

take fu

ll re

spo

nsib

ility fo

r th

e

pre

paratio

n o

f this re

po

rt and th

e corre

ct extractio

n

of

the

finan

cial in

form

ation

from

th

e underlyin

g

annual fin

ancial state

ments.

While

the

annual

finan

cial state

ments

have

been

repo

rted o

n w

ithout q

ualificatio

n b

y KPM

G L

imite

d,

an e

mphasis o

f matte

r paragrap

h is co

ntain

ed w

ithin

the au

dit re

po

rt draw

ing sh

arehold

er’s atte

ntio

n to

the d

isclosu

re on “go

ing co

nce

rn”, w

hich

is set o

ut

in n

ote 2

to th

ese co

ndense

d re

sults.

The

pre

paratio

n

of

these

condense

d

resu

lts

was

supervise

d

by

the

Chie

f Fin

ance

Office

r,

Mich

ael Jo

nes, a C

harte

red A

ccountan

t (SA

).

The co

nso

lidate

d an

nual fin

ancial state

ments w

ere

appro

ved b

y the B

oard

on 15

Dece

mber 2

014.

Tharisa plc A

nnual Report 20143

5

OVERVIEWOPERATIONAL REVIEWGOVERNANCE LEADERSHIP REVIEWMINERAL RESOURCE AND MINERAL RESERVE

STATEMENT

ABRIDGED ANNUAL FINANCIAL STATEMENTS

GLOSSARYSHAREHOLDER INFORMATION

Report of the Audit C

omm

ittee

The A

udit C

om

mitte

e met five tim

es d

urin

g the ye

ar under

revie

w

and

disch

arged

its re

spo

nsib

ilities

in

term

s of

the

appro

ved te

rms o

f refe

rence

, inter alia

:

FINA

NC

IAL STAT

EMEN

TS

Review

ed

finan

cial rep

orts,

inclu

din

g th

e In

terim

Finan

cial

Statemen

ts and an

nual fin

ancial statem

ents

Review

ed th

e acco

untin

g policies

and pro

cedures

adopted

by

the

Gro

up an

d en

sured

th

at fin

ancial

statemen

ts w

ere

prep

ared based

on ap

pro

priate

accountin

g policies

and in

accord

ance w

ith IFR

S, the C

ypru

s Com

pan

ies Law an

d th

e

JSE Listin

gs Req

uirem

ents

Consid

ered th

e goin

g concern

as the b

asis of p

reparatio

n o

f

the in

terim an

d an

nual fin

ancial statem

ents

EXT

ERN

AL A

UD

ITOR

Consid

ered an

d ap

pro

ved th

e terms o

f engagem

ent, sco

pe o

f

the extern

al audit an

d au

dit fees

Review

ed au

dit fin

din

gs (and m

anagem

ent’s resp

onse th

ereto)

Monito

red th

e extent o

f cooperatio

n b

etween

external an

d

intern

al audito

rs

Consid

ered th

e natu

re and exten

t of th

e non-au

dit services th

at

may b

e pro

vided

by th

e external au

dito

rs and p

re-appro

ved

the

pro

vision of

non-au

dit

services on th

e basis

that

the

pro

vision o

f these services d

oes n

ot affect th

e indep

enden

ce

of th

e external au

dito

r

Discu

ssed w

ith th

e external au

dito

rs their o

pin

ion o

f the level

of

ethical

conduct

of

the

Gro

up,

its execu

tives an

d sen

ior

man

agers

Held

separate m

eetings w

ith m

anagem

ent an

d th

e external

audito

rs

Reiterated

th

e extern

al au

dito

rs’ righ

t to

direct

access to

the ch

airman

of th

e Audit C

om

mittee an

d th

e chairm

an o

f

the B

oard

Evalu

ated th

e indep

enden

ce, effectiven

ess and p

erform

ance

of th

e external au

dito

rs

Nom

inated

KPM

G fo

r reappoin

tmen

t as external au

dito

rs

INT

ERN

AL A

UD

ITR

eviewed

th

e effectiven

ess an

d

adeq

uacy

of

the

intern

al

contro

l systems

Consid

ered an

d ap

pro

ved th

e terms o

f engagem

ent, sco

pe o

f

the in

ternal au

dit an

d au

dit fees

Received

and co

nsid

ered rep

orts fro

m th

e intern

al audito

rs

Monito

red

the

status

of

implem

entatio

n

by

man

agemen

t

of reco

mm

endatio

ns o

n id

entified

contro

l weakn

esses

Discu

ssed w

ith th

e intern

al audito

rs their o

pin

ion o

f the level

of

ethical

conduct

of

the

Gro

up,

its execu

tives an

d sen

ior

man

agers

Reiterated

th

e in

ternal

audito

rs’ righ

t to

direct

access to

the ch

airman

of th

e Audit C

om

mittee an

d th

e chairm

an o

f

the B

oard

Evalu

ated th

e indep

enden

ce, effectiven

ess and p

erform

ance o

f

the in

ternal au

dito

rs

Nom

inated

Pricew

aterhouseC

oopers

for

reappoin

tmen

t as

intern

al audito

rs

CH

IEF FINA

NC

E OFFIC

ER

Review

ed th

e perfo

rman

ce,

qualificatio

ns

and exp

ertise of

Mich

ael Jones, th

e Chief Fin

ance O

fficer, and is satisfied

as to

his su

itability to

act as Chief Fin

ance O

fficer of th

e Com

pany

and th

e Gro

up

OT

HER

Consid

ered th

e adeq

uacy o

f finan

cial contro

ls, risk man

agemen

t

systems an

d in

form

ation tech

nolo

gy risks relating to

finan

cial

reportin

g

Confirm

ed

the

adeq

uacy

of

the

Gro

up’s

whistleb

low

ing

arrangem

ents

and

policies

and

pro

cedures

for

preven

ting

corru

pt b

ehavio

ur an

d d

etecting frau

d an

d b

ribery

Conducted

a

self-evaluatio

n

to

establish

w

heth

er th

e

Com

mittee

operated

effectively

and

iden

tified

areas fo

r

impro

vemen

t.

The ch

airman

of th

e Audit C

om

mitte

e repo

rted to

the B

oard

after e

ach m

eetin

g of th

e Audit C

om

mitte

e.

On

reco

mm

endatio

n

of

the

Audit

Co

mm

ittee,

the

Board

appro

ved:

The

annual

finan

cial statem

ents

for

the

year en

ded

30 Sep

tember 2

014

The A

nnu

al Rep

ort fo

r the year en

ded

30 Sep

tember 2

014, an

d

The N

otice o

f the A

nnual G

eneral M

eeting to

be h

eld o

n

23 A

pril 2

015.

For m

ore in

form

ation o

n th

e com

positio

n an

d re

spo

nsib

ilities

of th

e Audit C

om

mitte

e, p

lease re

fer to

page 2

7 .

Antonios D

jakourisChairm

an of the Audit C

omm

ittee

11 M

arch 2

015

27

Tharisa plc A

nnual Report 20143

6

Consolidated statem

ent of profit or loss and other com

prehensive income

FOR

TH

E YEA

R EN

DED

30 SEPTEM

BER 2014

30 Sep 201430 S

ep 2

013

N

ote

US$’000

US$’0

00

Reve

nu

e

4

240 731215

455

Cost o

f sales

4

(206 815)(18

9 5

70)

Gross profit

33 916

25 8

85

Oth

er in

com

e

14948

Adm

inistrative e

xpense

s

(28 212)(2

6 59

6)

Results from

operating activities

5 853(6

63)

Finan

ce inco

me

897

863

Finan

ce costs

(14 655)

(14 74

4)

Chan

ges in

fair value o

f finan

cial liabilitie

s at fair value th

rough

pro

fit or lo

ss

(32 420)(4

8 4

24)

Net finance costs

(46 178)

(62 3

05)

Loss before tax 5

(40 325)(6

2 9

68)

Tax

(14 548)

15 5

25

Net loss for the year

(54 873)

(47 4

43)

Other com

prehensive income

Items tha

t will not b

e classified subsequently to p

rofit or loss–

–

Items tha

t may b

e classified subsequently to p

rofit or loss:

Fore

ign cu

rrency tran

slation d

iffere

nce

s for fo

reign

operatio

ns, n

et o

f tax

(21 162)(3

8 7

81)

Total comprehensive expense for the year

(76 035)

(86 2

24)

Net loss for the year attributable to:

Ow

ners o

f the C

om

pan

y

(48 997)(4

8 3

47)

No

n-co

ntro

lling in

tere

sts

(5 876)904

Loss for the year

(54 873)(4

7 4

43)

Total comprehensive expense for the year attributable to:

Ow

ners o

f the C

om

pan

y

(66 188)(7

5 9

89)

No

n-co

ntro

lling in

tere

sts

(9 847)(10

235)

Total comprehensive expense for the year

(76 035)

(86 2

24)

Basic an

d d

ilute

d lo

ss per sh

are (US$)

6(0.20)

(0.2

0)

Head

line an

d d

ilute

d h

ead

line lo

ss per sh

are (US$)

6(0.20)

(0.19

)

Tharisa plc A

nnual Report 20143

7

OVERVIEWOPERATIONAL REVIEWGOVERNANCE LEADERSHIP REVIEWMINERAL RESOURCE AND MINERAL RESERVE

STATEMENT

ABRIDGED ANNUAL FINANCIAL STATEMENTS

GLOSSARYSHAREHOLDER INFORMATION

Consolidated statem

ent of financial positionA

S AT 30 SEPT

EMBER

2014

30 Sep 2014

30 S

ep 2

013

N

ote

US$’000

US$’0

00

Assets

Pro

perty, p

lant an

d e

quip

ment

7253 356

269 13

0

Goodw

ill

1 2111 4

27

Oth

er fin

ancial asse

ts14

5 008

3 7

74

Long-te

rm d

eposits

814 479

7 7

08

Defe

rred tax

assets

95 970

20 6

23

Non-current assets

280 024

302 6

62

Inve

nto

ries

1014 567

24 0

43

Trad

e and o

ther re

ceivab

les

32 515

29 12

3

Oth

er fin

ancial asse

ts14

442

311

Curre

nt tax

ation

3

–

Cash

and cash

equivale

nts

1119 629

28 017

Current assets

67 156

81 4

94

Total assets

347 180384 15

6

Equity

Ord

inary sh

are capital

255

6

Share p

rem

ium

452 363

113 3

42

Oth

er re

serve

47 245

47 24

5

Fore

ign cu

rrency tran

slation re

serve

(47 361)

(30 17

0)

Reve

nue re

serve

(216 596)

(167 8

59)

Equity attributable to owners of the C

ompany

235 906

(37 43

6)

No

n-co

ntro

lling in

tere

sts

(26 052)(16

205)

Total equity

209 854(53

641)

Liabilities

Pro

visions

4 452

4 7

38

Bo

rrow

ings

1364 223

92 812

Defe

rred tax liab

ilities

20

–

Non-current liabilities

68 695

97 5

50

Co

nve

rtible re

deem

able p

refe

rence sh

ares

12–

260 2

91

Class B

pre

fere

nce sh

ares

–

12 171

Bo

rrow

ings

1330 986

36 6

88

Curre

nt tax

ation

421

294

Trad

e and o

ther p

ayable

s

37 22430 8

03

Current liabilities

68 631

340 24

7

Total liabilities

137 32643

7 7

97

Total equity and liabilities

347 180384 15

6

Tharisa plc A

nnual Report 20143

8

Consolidated statem

ent of changes in equityFO

R T

HE Y

EAR

END

ED 30 SEPT

EMBER

2014

Share

capital

Share

pre

miu

mU

S$’0

00

US$’0

00

Balance at 1 O

ctober 20136

113 342

Total comprehensive incom

e for the year

Net lo

ss for th

e year

––

Oth

er co

mpre

hensive in

com

e:

Fore

ign cu

rrency tran

slation d

iffere

nce

s–

–

Total comprehensive incom

e for the year–

–

Transactions with ow

ners, recognised directly in equity

Share issu

e expense

s–

(1 416)

Equity se

ttled sh

are-b

ased p

ayments

––

Issue o

f ord

inary sh

ares fo

r cash13

47 847

Issue o

f ord

inary sh

ares to

em

plo

yees re

sultin

g from

share gran

ts–

115

Issue o

f ord

inary sh

ares fro

m b

onus issu

e154

(154)

Issue o

f ord

inary sh

ares fro

m co

nve

rsion o

f redeem

able co

nve

rtible

pre

fere

nce sh

ares

82292 629

Co

ntrib

utio

ns b

y ow

ners

249

339 021

Total tran

sactions w

ith o

wners o

f the C

om

pan

y

249339 021

Balance at 30 Septem

ber 2014

255452 363

Balance at 1 O

ctober 20126

113 3

42

Total comprehensive incom

e for the year

Net lo

ss for th

e year

––

Oth

er co

mpre

hensive in

com

e:

Fore

ign cu

rrency tran

slation d

iffere

nce

s–

–

Total comprehensive incom

e for the year

––

Transactions with ow

ners of the Com

pany, recorded directly in equity

Co

ntrib

utio

ns b

y ow

ners

––

Total tran

sactions w

ith o

wners o

f the C

om

pan

y

––

Balance at 30 Septem

ber 2013

6113

342

Tharisa plc A

nnual Report 20143

9

OVERVIEWOPERATIONAL REVIEWGOVERNANCE LEADERSHIP REVIEWMINERAL RESOURCE AND MINERAL RESERVE

STATEMENT

ABRIDGED ANNUAL FINANCIAL STATEMENTS

GLOSSARYSHAREHOLDER INFORMATION

Oth

er

rese

rve

Fore

ign cu

rrency

translatio

n

rese

rve

Reve

nue

rese

rveTo

tal

No

n-co

ntro

lling

inte

rests

To

tal equity

US$’0

00

US$’0

00

US$’0

00

US$’0

00

US$’0

00

US$’0

00

47 245(30 170)

(167 859)(37 436)

(16 205)(53 641)

––

(48 997)(48 997)

(5 876)(54 873)

–(17 191)

–(17 191)

(3 971)(21 162)

–(17 191)

(48 997)(66 188)

(9 847)(76 035)

––

–(1 416)

–(1 416)

––

260260

–260

––

–47 860

–47 860

––

–115

–115

––

––

––

––

–292 711

–292 711

––

260339 530

–339 530

––

260339 530

–339 530

47 245(47 361)

(216 596)235 906

(26 052)209 854

47 24

5(2

528)

(119 512)

38 5

53(5

970)

32 5

83

––

(48 3

47)

(48 3

47)

904

(47 4

43)

–(2

7 6

42)

–(2

7 6

42)

(11 13

9)

(38 7

81)

–(2

7 6

42)

(48 3

47)

(75 9

89)

(10 2

35)

(86 2

24)

––

––

––

––

––

––

47 24

5(3

0 17

0)

(167 8

59)

(37 43

6)

(16 2

05)

(53 6

41)

Tharisa plc A

nnual Report 20144

0

2014

2013

U

S$’000U

S$’0

00

Cash flow

s from operating activities

Net lo

ss for th

e year

(54 873)(4

7 4

43)

Adju

stments fo

r:

Depre

ciation o

f pro

perty, p

lant an

d e

quip

ment

10 76412

438

Am

ounts w

ritten o

ff dire

ctly in p

rofit an

d lo

ss–

81

Write

-off o

f pro

perty, p

lant an

d e

quip

ment

25–

Impairm

ent lo

ss of p

roperty, p

lant an

d e

quip

ment

–2 0

97

Impairm

ent lo

ss of go

odw

ill72

75

Allo

wan

ce for in

vento

ry obso

lesce

nce

1 195–

Chan

ges in

fair value o

f finan

cial liabilitie

s at fair value th

rough

pro

fit or lo

ss32 420

48 4

24

Inte

rest in

com

e(897)

(607)

Chan

ges in

fair value o

f finan

cial assets at fair valu

e thro

ugh

pro

fit or lo

ss659

54

Inte

rest e

xpense

13 40014

336

Tax

14 548(15

525)

Equity se

ttled sh

are-b

ased p

ayments

389–

17 70213

930

Chan

ges in

:

Inve

nto

ries

8 1444 2

54

Trad

e and o

ther re

ceivab

les

(3 392)(11

076

)

Trad

e and o

ther p

ayable

s996

(4 3

84)

Pro

visions

(152)(5

000)

Cash

from

/(use

d in) o

peratio

ns

23 298(2

276

)

Inco

me tax p

aid(942)

(680)

Net cash flow

s from/(used in) operating activities

22 356(2

956)

Cash flow

s from investing activities

Inte

rest re

ceive

d699

399

Acq

uisitio

n o

f subsid

iaries, n

et o

f cash acq

uire

d–

154

Additio

ns to

pro

perty, p

lant an

d e

quip

ment

(24 289)(24

316)

Pro

ceeds fro

m d

isposal o

f pro

perty, p

lant an

d e

quip

ment

37–

Additio

ns o

f oth

er fin

ancial asse

ts(1 606)

(850)

Net cash flow

s used in investing activities(25 159)

(24 613

)

Cash flow

s from financing activities

Pro

ceeds fro

m issu

e of o

rdin

ary share

s47 860

–

Estab

lishm

ent o

f long-te

rm d

eposits

(6 771)(7

708)

Pro

ceeds fro

m b

orro

win

gs, net o

f transactio

n co

sts(2 835)

16 0

73

Repaym

ent o

f bo

rrow

ings

(30 989)(3

68)

Inte

rest p

aid(349)

(248)

Redem

ptio

n o

f Class B

pre

fere

nce sh

ares

(6 818)–

Share issu

e expense

s capitalise

d to

share p

rem

ium

(1 416)–

Net cash flow

s (used in)/from financing activities

(1 318)7 74

9

Net decrease in cash and cash equivalents

(4 121)(19

820)

Cash and cash equivalents at the beginning of the year

28 01752 8

05

Effe

ct of e

xch

ange rate flu

ctuatio

ns o

n cash

held

(4 267)(4

968)

Cash and cash equivalents at the end of the year

19 62928 017

Consolidated statem

ent of cash flows

FOR

TH

E YEA

R EN

DED

30 SEPTEM

BER 2014

Tharisa plc A

nnual Report 20144

1

OVERVIEWOPERATIONAL REVIEWGOVERNANCE LEADERSHIP REVIEWMINERAL RESOURCE AND MINERAL RESERVE

STATEMENT

ABRIDGED ANNUAL FINANCIAL STATEMENTS

GLOSSARYSHAREHOLDER INFORMATION

Notes to the financial statem

entsFO

R T

HE Y

EAR

END

ED 30 SEPT

EMBER

2014

1. G

ENER

AL IN

FOR

MAT

ION

Tharisa p

lc (“the C

om

pan

y”) is a com

pan

y do

micile

d in

Cyp

rus.

The

condense

d

conso

lidate

d

annual

finan

cial

statem

ents

of

the

Co

mpan

y fo

r th

e ye

ar ended

30 S

epte

mber

2014

co

mprise

s th

e C

om

pan

y an

d

its

subsid

iaries

(toge

ther

refe

rred

to

as th

e

“Gro

up”).

The G

roup is p

rimarily in

volve

d in

platin

um

group m

etals

(“PG

M”) an

d ch

rom

e min

ing an

d p

roce

ssing, th

e tradin

g

of th

e chro

me co

nce

ntrate an

d th

e associate

d lo

gistics.

The G

roup h

old

s the m

inin

g rights to

5 59

0 h

ectare

s of

the B

ush

veld

Co

mple

x locate

d o

n vario

us p

ortio

ns o

f the

farms 3

42 JQ

and E

landsd

rift 467 JQ

near R

uste

nburg in

the N

orth

West P

rovin

ce of S

outh

Africa.

2. B

ASIS O

F PREPA

RAT

ION

The

condense

d

conso

lidate

d

finan

cial in

form

ation fo

r

the ye

ar ended 3

0 S

epte

mber 2

014 h

as been p

repare

d

in

accord

ance

with

th

e JS

E

Listin

g R

equire

ments.

The L

isting R

equire

ments re

quire fin

ancial state

ments to

be p

repare

d in

accord

ance w

ith th

e framew

ork co

nce

pts

and

the

measu

rem

ent

and

reco

gnitio

n

require

ments

of

Inte

rnatio

nal

Finan

cial R

eportin

g Stan

dard

s (“IFR

S”)

and

the

SA

ICA

Fin

ancial

Repo

rting

Guid

es

as issu

ed

by

the

Acco

untin

g Practice

s C

om

mitte

e an

d

Finan

cial

Pro

nounce

ments

as issu

ed

by

Finan

cial R

eportin

g

Standard

s Council an

d to

also as a m

inim

um

, contain

the

info

rmatio

n re

quire

d b

y IAS 3

4 In

terim

Finan

cial Repo

rting.

The

condense

d

conso

lidate

d

finan

cial in

form

ation

has

been

pre

pare

d

under

the

histo

rical co

st co

nve

ntio

n

exce

pt fo

r certain

finan

cial assets, fin

ancial liab

ilities an

d

derivative fin

ancial in

strum

ents w

hich

are measu

red at fair

value.

The

sum

marise

d

conso

lidate

d

finan

cial in

form

ation

is

pre

sente

d in

Unite

d State

s Dollars (“U

SD

”), which

is the

Co

mpan

y’s functio

nal cu

rrency.

Go

ing c

on

cern

The

Gro

up

incu

rred

a lo

ss fo

r th

e ye

ar ended

30 S

epte

mber

2014

of

US$54

873

thousan

d

(2013

:

US$47 443

th

ousan

d)

and,

as at

that

date

its cu

rrent

liabilitie

s exce

eded its cu

rrent asse

ts by U

S$1

475 th

ousan

d

(2013

: US$258 7

53 th

ousan

d).

The sh

ort-te

rm cash

flow

fore

casts of th

e Gro

up re

flect

a positive

cash

flow

positio

n

sufficie

nt

to

meet

the

operatio

nal cash

flow

s, the ap

pro

ved cap

ital expenditu

re

and th

e debt

repaym

ents.

Ach

ieve

ment

of

the

sho

rt-

term

cash

flo

w fo

recast

is dependent

on th

e plan

ned

pro

ductio

n le

vels b

ein

g achie

ved an

d/o

r no w

eake

nin

g in

the

com

mo

dity

price

s. Should

fo

recast

pro

ductio

n not

be ach

ieve

d an

d/o

r com

mo

dity p

rices w

eake

n, th

is may

resu

lt in a sh

ortfall in

cash. C

ertain

capital e

xpenditu

re

can b

e postp

oned in

such

eve

nt an

d alte

rnative fu

ndin

g

optio

ns are b

ein

g evalu

ated in

cludin

g the re

lease o

f the

enviro

nm

ental re

hab

ilitation gu

arante

e collate

ral inclu

ded

in “o

ther fin

ancial asse

ts” which

would

then b

e available

for o

peratio

nal cash

require

ments.

Durin

g the fin

ancial ye

ar, insu

fficient co

rrect re

ef laye

rs

were b

ein

g expose

d as a re

sult o

f waste an

d in

terb

urd

en

strippin

g bein

g belo

w p

lan b

ecau

se of co

ntracto

r min

ing

equip

ment

availability

bein

g belo

w

industry

no

rms.

Follo

win

g a

strategic

revie

w,

an

additio

nal

min

ing

contracto

r has b

een ap

poin

ted to

undertake th

e mo

re

specialise

d b

lasting an

d e

xtractio

n o

f the re

ef laye

rs and

rem

oval o

f inte

rburd

en. T

he e

xistin

g min

ing co

ntracto

r

will fo

cus o

n b

ulk w

aste rem

oval.

The G

roup e

xperie

nce

d ram

p-u

p p

roble

ms typ

ical of large

com

ple

x conce

ntrato

rs couple

d w

ith m

ech

anical failu

res

of ce

rtain ke

y equip

ment. D

e-b

ottle

neckin

g and p

roce

ss

optim

isation

toge

ther

with

equip

ment

re-e

ngin

eerin

g

have

ove

rcom

e th

ese

pro

ble

ms.

Initiative

s to

im

pro

ve

reco

verie

s and yie

lds are o

ngo

ing.

The

senio

r debt

pro

viders

have

waive

d ce

rtain facility

cove

nan

ts re

lating

to

the

debt

service

cove

r ratio

as

at 30

Septe

mber

2014

, an

d

have

exte

nded

the

date

for

com

ple

tion

of

the

tech

nical

com

ple

tion

tests

to

28 N

ove

mber 2

015.

Sho

uld

the fo

recast p

roductio

n n

ot b

e achie

ved an

d/o

r

com

mo

dity p

rices w

eake

n, a m

aterial u

nce

rtainty e

xists

which

m

ay cast

doubt

on th

e ab

ility of

the

Gro

up to

contin

ue as a go

ing co

nce

rn an

d it m

ay be u

nab

le to re

alise

its assets an

d se

ttle its liabilitie

s in th

e no

rmal co

urse o

f

busin

ess w

itho

ut ad

ditio

nal fu

nd-raisin

g.

The fin

ancial state

ments h

ow

eve

r contin

ue to

be p

repare

d

on th

e goin

g conce

rn b

asis.

3. SIG

NIFIC

AN

T A

CC

OU

NT

ING

POLIC

IEST

he p

rincip

al accountin

g policie

s applie

d in

the p

reparatio

n

of

the

conso

lidate

d

finan

cial state

ments

from

w

hich

the

condense

d

finan

cial in

form

ation

was

derive

d,

are

consiste

nt w

ith th

ose ap

plie

d in

the p

revio

us fin

ancial ye

ar,

and in

term

s of IFR

S.

Tharisa plc A

nnual Report 20144

2

Notes to the financial statem

entsFO

R T

HE Y

EAR

END

ED 30 SEPT

EMBER

2014

4. SEG

MEN

T R

EPORT

ING

The G

roup d

iffere

ntiate

s its segm

ents b

etw

een P

GM

operatio

ns an

d ch

rom

e operatio

ns. M

anage

ment h

as dete

rmin

ed th

e

operatin

g segm

ents b

ased o

n th

e busin

ess activitie

s and m

anage

ment stru

cture w

ithin

the G

roup.

Segm

ent in

form

ation re

gardin

g the re

sults o

f each

operatin

g segm

ent is in

cluded b

elo

w. P

erfo

rman

ce is measu

red b

ased o

n

segm

ent re

venue, co

st of sale

s and gro

ss pro

fit as inclu

ded in

the in

tern

al man

agem

ent re

po

rts that are re

view

ed b

y the G

roup’s

man

agem

ent. S

egm

ent re

venue, co

st of sale

s and gro

ss pro

fit are use

d to

measu

re perfo

rman

ce as man

agem

ent b

elie

ves th

at

such

info

rmatio

n is th

e most re

levan

t in e

valuatin

g the re

sults o

f each

segm

ent.

PG

M

Chrom

eTotal

Year ended 30 September 2014

US$’000

US$’000

US$’000

Reve

nue

70 365170 366

240 731

Cost o

f sales

(53 485)(153 330)

(206 815)

Gro

ss pro

fit16 880

17 03633 916

Year ended 30 September 2013

Reve

nue

54 2

71161

184

215 4

55

Cost o

f sales

(50 4

96)

(139 0

74)

(189 5

70)

Gro

ss pro

fit3 7

75

22 110

25 8

85

Geo

gra

ph

ical in

form

atio

n

The fo

llow

ing tab

les se

t out in

form

ation ab

out th

e geograp

hical lo

cation o

f the G

roup’s re

venue fro

m e

xte

rnal cu

stom

ers an

d

the G

roup’s p

roperty, p

lant an

d e

quip

ment an

d go

odw

ill (“specifie

d n

on-cu

rrent asse

ts”). The ge

ograp

hical lo

cation an

alysis of

reve

nue fro

m e

xte

rnal cu

stom

ers is b

ased o

n th

e country o

f estab

lishm

ent o

f each

custo

mer. T

he ge

ograp

hical lo

cation o

f the

specifie

d n

on-cu

rrent asse

ts is base

d o

n th

e p

hysical lo

cation o

f the asse

t in th

e case o

f pro

perty, p

lant an

d e

quip

ment an

d th

e

locatio

n o

f the o

peratio

n to

which

they are allo

cated in

the case o

f goo

dw

ill.

30 Sep 2014

30 S

ep 2

013

U

S$’000U

S$’0

00

Revenue from

external customers

Chin

a71 136

93 5

09

South

Africa

94 18755 011

Sin

gapo

re27 220

36 8

20

Ho

ng K

ong

37 65328 174

Oth

er co

untrie

s10 535

1 9

41

240 731

215 4

55

Specified non-current assets

South

Africa

254 547270 4

41

Cyp

rus

1461

Chin

a6

55

254 567

270 5

57

Tharisa plc A

nnual Report 20144

3

OVERVIEWOPERATIONAL REVIEWGOVERNANCE LEADERSHIP REVIEWMINERAL RESOURCE AND MINERAL RESERVE

STATEMENT

ABRIDGED ANNUAL FINANCIAL STATEMENTS

GLOSSARYSHAREHOLDER INFORMATION

30 Sep 201430 S

ep 2

013

US$’000

US$’0

00

5.LO

SS BEFOR

E TAX

Loss b

efo

re tax is arrived at afte

r chargin

g:

(a) Staff co

sts

Dire

ctors’ fe

es

598732

Dire

ctors’ salarie

s and o

ther b

enefits

1 4301 74

2

Salarie

s, wage

s and o

ther b

enefits

19 68220 0

05

Co

ntrib

utio

ns to

defin

ed co

ntrib

utio

n re

tirem

ent p

lans

1 6231 5

40

Equity se

ttled sh

are base

d p

ayment e

xpense

389–

23 72224

019

(b) O

ther ite

ms

Allo

wan

ce for in

vento

ry obso

lesce

nce

1 195–

Fair value ch

arge of fin

ancial asse

ts–

310

Impairm

ent lo

ss of go

odw

ill72

75

Am

ounts w

ritten-o

ff dire

ctly in p

rofit o

r loss

–81

Impairm

ent lo

ss of p

roperty, p

lant an

d e

quip

ment

–2 0

97

Write o

ff of p

roperty, p

lant an

d e

quip

ment

25–

Depre

ciation

10 76412

438

Fees fo

r pro

fessio

nal se

rvices fo

r the listin

g2 610

3 12

6

Independent au

dito

rs’ rem

uneratio

n504

608

Operatin

g lease p

ayments

425342

Marke

ting fe

es

1 304–

6.B

ASIC

AN

D H

EAD

LINE LO

SS

The calcu

lation o

f basic an

d d

ilute

d lo

ss per sh

are was b

ased o

n th

e loss attrib

utab

le to

ord

inary sh

arehold

ers o

f the C

om

pan

y and th

e weigh

ted ave

rage num

ber o

f ord

inary

share

s outstan

din

g durin

g each

year.

R

econciliation of losses to headline losses

Lo

ss attributab

le to o

rdin

ary share

hold

ers o

f the C

om

pan

y(48 997)

(48 3

47)

A

dju

stments:

Im

pairm

ent o

f goo

dw

ill72

75

Im

pairm

ent lo

ss of P

PE m

inin

g assets an

d in

frastructu

re–

2 0

97

Tax

effe

ct on im

pairm

ent o

f PPE

–(5

87)

H

eadline loss(48 925)

(46 76

2)

B

asic and d

ilute

d lo

ss per sh

are (US$)

(0.20)(0

.20)

H

ead

line an

d d

ilute

d h

ead

line lo

ss per sh

are (US$)

(0.20)(0

.19)

Weigh

ted ave

rage n

um

ber o

f ord

inary sh

ares o

utstan

din

g

durin

g the ye

ar (‘000)

For th

e purp

ose o

f calculatin

g both

basic an

d d

ilute

d lo

ss per sh

are and h

ead

line an

d

dilu

ted h

ead

line lo

ss per sh

are the w

eigh

ted ave

rage num

ber o

f ord

inary sh

ares u

sed

in th

e above calcu

lations re

flects th

e effe

ct of th

e bo

nus issu

e and th

e conve

rsion o

f

the re

deem

able co

nve

rtible p

refe

rence sh

ares as if it h

ad o

ccurre

d at th

e begin

nin

g

of th

e earlie

st perio

d p

rese

nte

d.

247 879241

591

Tharisa plc A

nnual Report 20144

4

Notes to the financial statem

entsFO

R T

HE Y

EAR

END

ED 30 SEPT

EMBER

2014

30 Sep 201430 S

ep 2

013

US$’000

US$’0

00

7.PR

OPERT

Y, PLAN

T A

ND

EQU

IPMEN

T

O

pening net book value269 130

318 2

63

A

dditio

ns

24 28924

316

Net d

isposals

(36)–

Im

pairm

ent

–(2

097)

D

epre

ciation

(10 764)(12

438)

Tran

sfers

–(1

769)

Exch

ange ad

justm

ent o

n tran

slation

(29 263)(5

7 14

5)

C

losing net book value253 356

269 13

0

Cap

ital c

om

mitm

en

ts

At 3

0 S

epte

mber 2

014 th

e Gro

up’s cap

ital com

mitm

ents fo

r contracts to

purch

ase pro

perty, p

lant an

d e

quip

ment am

ounte

d to

U

S$4.4

millio

n (3

0 S

epte

mber 2

013: U

S$10

.7 m

illion).

Secu

rities

At 3

0 S

epte

mber 2

014 an

amount o

f US$24

9.1 m

illion (3

0 S

epte

mber 2

013: U

S$264.4

millio

n) of th

e carrying am

ount o

f the

Gro

up’s p

roperty, p

lant an

d e

quip

ment w

as ple

dge

d as se

curity again

st secu

red b

ank b

orro

win

gs.

30 Sep 201430 S

ep 2

013

US$’000

US$’0

00

8.LO

NG

-TER

M D

EPOSIT

S

R

estricte

d cash

14 4797 7

08

T

he re

stricte

d cash

is design

ated as a “d

ebt se

rvice re

serve

account” as re

quire

d b

y the te

rms o

f the se

cure

d b

ank

bo

rrow

ings.

9.D

EFERR

ED TA

X

Durin

g the ye

ar, Tharisa M

inerals P

roprie

tary Lim

ited re

assesse

d th

e reco

verab

ility of its d

efe

rred tax asse

t. The re

assessm

ent

resu

lted p

rimarily fro

m th

e furth

er lo

sses in

curre

d b

y Tharisa M

inerals P

roprie

tary Lim

ited in

the cu

rrent fin

ancial ye

ar and th

e m

atters re

ferre

d to

in th

e goin

g conce

rn asse

ssment d

etaile

d in

note 2

, particu

larly relatin

g to th

e curre

nt tre

nd o

f declin

ing

com

mo

dity p

rices e

xperie

nce

d d

urin

g the ye

ar.

A sign

ificant co

mpo

nent o

f the d

efe

rred tax asse

t relate

s to th

e fore

ign e

xch

ange lo

sses o

n th

e pre

fere

nce sh

are liability d

ue b

y T

harisa M

inerals P

roprie

tary Lim

ited to

the C

om

pan

y, which

is deno

min

ated in

US$

. The e

xch

ange lo

sses can

only b

e claimed

on re

dem

ptio

n o

f the p

refe

rence sh

ares. T

he afo

rem

entio

ned facto

rs have re

sulte

d in

a revise

d cash

flow

fore

cast which

in

dicate

s that th

e earlie

st redem

ptio

n d

ate of th

e pre

fere

nce sh

ares is u

nlike

ly to b

e in th

e near te

rm.

While T

harisa M

inerals P

roprie

tary Lim

ited re

main

s confid

ent th

at the co

mm

odity p

rices w

ill reco

ver, b

ased o

n th

e curre

nt

com

mo

dity p

rices an

d th

e unce

rtainty o

f futu

re price

s, Tharisa M

inerals P

roprie

tary Lim

ited is o

f the vie

w th

at it would

be p

rudent to

take a mo

re near te

rm vie

w in

assessin

g the like

lihood o

f utilisin

g the d

efe

rred tax asse

t and h

as there

fore

dere

cogn

ised a p

ortio

n o

f the d

efe

rred tax asse

t.

As a re

sult, T

harisa M

inerals P

roprie

tary Lim

ited h

as dere

cogn

ised U

S$13

.1 m

illion o

f its defe

rred tax asse

t and d

id n

ot

reco

gnise a fu

rther U

S$9.3

millio

n th

at arose d

urin

g the ye

ar.

The e

stimate

s use

d to

assess th

e reco

verab

ility of th

e reco

gnise

d d

efe

rred tax asse

t inclu

de th

e follo

win

g:

SA

RB in

flation targe

t) per an

num

with

effe

ct from

1 A

pril 2

015

the p

refe

rence sh

are liability)

In asse

ssing th

e reco

verab

ility of th

e defe

rred tax re

cogn

ised, m

anage

ment is satisfie

d th

at Tharisa M

inerals P

roprie

tary Lim

ited

will ge

nerate su

fficient tax

able in

com

e against w

hich

the re

cogn

ised d

efe

rred tax asse

t on th

e tax losse

s and d

eductib

le te

mporary d

iffere

nce

s can b

e utilise

d.

Tharisa plc A

nnual Report 20144

5

OVERVIEWOPERATIONAL REVIEWGOVERNANCE LEADERSHIP REVIEWMINERAL RESOURCE AND MINERAL RESERVE

STATEMENT

ABRIDGED ANNUAL FINANCIAL STATEMENTS

GLOSSARYSHAREHOLDER INFORMATION

30 Sep 201430 S

ep 2

013

US$’000

US$’0

00

10.IN

VEN

TOR

IES

Fin

ished p

roducts

6 89113

037

In

pro

gress m

etal

3 0116 8

41

O

re stockp

ile1 517

1 24

7

C

onsu

mab

les

3 1482 918

14 56724

043

T

he G

roup p

rovid

ed fo

r inve

nto

ry obso

lesce

nce in

the am

ount o

f US$1.2

millio

n.

11.C

ASH

AN

D C

ASH

EQU

IVALEN

TS

B

ank b

alance

s19 370

27 4

72

C

all deposits

259545

19 62928 017

U

S$4.8

millio

n (2

013: U

S$5.2

millio

n) was p

rovid

ed as se

curity fo

r certain

credit facilitie

s an

d b

ank gu

arante

es o

f the G

roup.

12.R

EDEEM

ABLE PR

EFEREN

CE SH

AR

ES

C

onve

rtible re

deem

able p

refe

rence sh

ares

–260 2

91

T

he co

nve

rtible re

deem

able p

refe

rence sh

ares w

ere co

nve

rted in

to fu

lly paid

ord

inary

share

s on 10

April 2

014.

13.BO

RRO

WIN

GS

N

on-cu

rrent:

Secu

red b

ank b

orro

win

g63 333

90 8

33

O

ther b

orro

win

gs890

1 9

79

64 22392 812

C

urre

nt:

Secu

red b

ank b

orro

win

g17 899

19 8

54

O

ther b

orro

win

gs13 087

16 8

34

30 98636 6

88

The p

rovid

ers o

f the se

cure

d b

ank b

orro

win

g have w

aived ce

rtain facility co

venan

ts relatin

g to th

e debt se

rvice cove

r ratio

as at 30 S

epte

mber 2

014 an

d h

ave exte

nded th

e date o

f com

ple

tion o

f the te

chnical co

mple

tion te

sts to 2

8 N

ove

mber 2

015.

The in

tere

st rate was in

crease

d b

y 100 b

asis poin

ts to Jib

ar plu

s 490 b

asis poin

ts up to

tech

nical co

mple

tion.

The sh

ort-te

rm p

ortio

n o

f the se

cure

d b

ank b

orro

win

g inco

rrectly in

cluded fu

ture in

tere

st not ye

t accrued o

n th

e facility,

accord

ingly th

e com

parative figu

res re

lating to

the se

cure

d b

ank b

orro

win

g have b

een re

stated w

ith th

e effe

ct of in

creasin

g

no

n-cu

rrent fin

ancial liab

ilities b

y an am

ount o

f US$8.0

millio

n an

d cu

rrent fin

ancial liab

ilities re

ducin

g by th

e same am

ount.

Tharisa plc A

nnual Report 20144

6

Notes to the financial statem

entsFO

R T

HE Y

EAR

END

ED 30 SEPT

EMBER

2014

30 Sep 201430 S

ep 2

013

US$’000

US$’0

00

14.FIN

AN

CIA

L INST

RUM

ENT

S

Fin

ancial in

strum

ents at fair valu

e thro

ugh

pro

fit or lo

ss:

N

on-cu

rrent:

In

vestm

ents in

cash fu

nds an

d in

com

e funds

4 9693 6

56

In

tere

st rate caps

39118

5 008 3 7

74

C

urre

nt:

In

vestm

ents at fair valu

e thro

ugh

pro

fit or lo

ss86

86

D

iscount facility

356225

442 311

15.SU

BSEQU

ENT

EVEN

T – C

ON

TIN

GEN

T LIA

BILITY

The C

om

pan

y has, su

bse

quent to

the fin

ancial ye

ar end, re

ceive

d a “le

tter b

efo

re action” fro

m a firm

of so

licitors re

pre

sentin

g a

share

ho

lder w

hich

asserts in

tended claim

s against, inter a

lia, th

e Co

mpan

y for d

amage

s purp

ortin

g to arise in

the co

nte

xt o

f the

listing o

f the C

om

pan

y on th

e JSE an

d th

e com

pulso

ry conve

rsion o

f the co

nve

rtible re

deem

able p

refe

rence sh

ares h

eld

by th

at

share

hold

er in

the C

om

pan

y into

ord

inary sh

ares as p

rovid

ed fo

r in th

e term

s of th

e conve

rtible re

deem

able p

refe

rence sh

ares.

The B

oard

has take

n le

gal advice an

d in

the e

vent le

gal pro

ceedin

gs are institu

ted, th

e Co

mpan

y will d

efe

nd itse

lf vigoro

usly.

In acco

rdan

ce with

paragrap

h 9

2 o

f IAS 3

7 “P

rovisio

ns, co

ntin

gent liab

ilities an

d co

ntin

gent asse

ts” no fu

rther in

form

ation is

disclo

sed in

relatio

n to

the su

bje

ct matte

r on th

e grounds th

at it may p

reju

dice th

e positio

n o

f the C

om

pan

y in a d

ispute w

ith

oth

er p

arties.

16.D

IVID

END

SIn

view

of th

e loss in

curre

d b

y the G

roup, th

e Board

of D

irecto

rs do

es n

ot re

com

mend th

e paym

ent o

f divid

ends. T

he d

ividend

Tharisa plc A

nnual Report 20144

7

OVERVIEWOPERATIONAL REVIEWGOVERNANCE LEADERSHIP REVIEWMINERAL RESOURCE AND MINERAL RESERVE

STATEMENT

ABRIDGED ANNUAL FINANCIAL STATEMENTS

GLOSSARYSHAREHOLDER INFORMATION

Glossary of abbreviations, definitions

and technical terms

In th

is Annual R

epo

rt, unle

ss oth

erw

ise indicate

d, th

e wo

rds in

the first co

lum

n h

ave the m

ean

ings state

d o

pposite th

em

in th

e seco

nd

colu

mn, w

ord

s in th

e sin

gular in

clude th

e plu

ral and vice versa

, wo

rds d

enotin

g one ge

nder in

clude th

e o

ther, an

d w

ord

s denotin

g

natu

ral perso

ns in

clude ju

ristic perso

ns an

d asso

ciations o

f perso

ns an

d vice versa

.

4EPlatin

um

Gro

up M

etals co

mprisin

g platin

um

, pallad

ium

, rho

diu

m an

d go

ld;

5PGE +

Au

Platin

um

Gro

up M

etals co

mprisin

g platin

um

, pallad

ium

, rho

diu

m, ru

theniu

m, irid

ium

and go

ld;

6PGE +

Au

5PG

E p

lus o

smiu

m;

Au

gold

;

BEE

Black

Eco

no

mic

Em

pow

erm

ent,

as defin

ed

in

the

MPR

DA

an

d

“Bro

ad-b

ased

So

cio-e

cono

mic

Em

pow

erm

ent” as d

efin

ed in

the M

inin

g Charte

r;

Bushveld C

omplex

a majo

r intru

sive igneous b

ody in

the n

orth

ern

part o

f South

Africa, th

at has u

ndergo

ne re

markab

le

magm

atic diffe

rentiatio

n, an

d th

e lead

ing so

urce o

f PG

Ms an

d C

hro

miu

m;

certificated sharesShare

s which

are held

and re

pre

sente

d b

y a share ce

rtificate or o

ther tan

gible d

ocu

ment o

f title, w

hich

Share

s have n

ot b

een d

em

aterialise

d in

term

s of th

e require

ments o

f Strate;

Challenger or

Challenger plant

the in

tegrate

d b

eneficiatio

n p

lant ad

jacent to

the G

enesis p

lant fo

r the p

roductio

n o

f chem

ical and

foundry grad

e co

nce

ntrate

ow

ned b

y Arx

o M

etals;

Charter Scorecard

the

Sco

recard

fo

r th

e M

inin

g C

harte

r publish

ed pursu

ant

to se

ction 10

0(2)(a)

of

the

MPR

DA

under G

ove

rnm

ent G

azette N

o. 2

6661

of 13

Augu

st 2004, as am

ended b

y General N

otice 8

38 o

f

20 S

epte

mber 2

010;

chemical grade concentrate

the m

ain in

gredie

nt in

the p

roductio

n o

f chro

me ch

em

icals. The critical sp

ecificatio

ns are a m

inim

um

2 O3

2 ;

chrome

use

d to

refe

rence an

y form

of ch

rom

ium

, Cr o

r chro

me co

nce

ntrate

;

chrome concentrate

any co

mbin

ation o

f chem

ical, foundry an

d/o

r metallu

rgical grade co

nce

ntrate w

ith a p

redo

min

ance

of m

etallu

rgical grade co

nce

ntrate

;

chrome alloys

a chro

me allo

y pro

duce

d d

irectly th

rough

smeltin

g usin

g carbo

n as a re

ducin

g agent in

the p

rese

nce

of flu

xes, w

hich

alloy is u

sed as p

rimary raw

mate

rial in th

e pro

ductio

n o

f stainle

ss steel;

chromite

a hard

, black, re

fractory ch

rom

ium

-spin

el m

ineral co

nsistin

g of varyin

g pro

portio

ns o

f the o

xid

es

of iro

n ch

rom

ium

, alum

iniu

m an

d m

agnesiu

m;

chromitite

a rock co

mpose

d e

ssentially o

f chro

mite

, that typ

ically occu

rs as layers o

r irregu

lar masse

s exclu

sively

associate

d w

ith m

agmatic co

mple

xes. T

he b

ulk o

f the w

orld

’s explo

itable ch

rom

itite occu

rs almost

exclu

sively in

layere

d co

mple

xes;

chromitite layers

thick accu

mulatio

ns o

f chro

mite grain

s to fo

rm m

ono

min

eralic b

ands o

r layers, w

hich

chro

mitite laye

rs

are typically gre

ater th

an 3

0cm

thick;

chromium

or Cr

the e

lem

ent ch

rom

ium

(Cr) is classifie

d as a m

etal an

d is situ

ated b

etw

een o

ther m

etals su

ch as

vanad

ium

(V), m

angan

ese (M

n) and m

olyb

denum

(Mo) in

the P

erio

dic T

able o

f Ele

ments;

CIF

cost, in

suran

ce and fre

ight as d

efin

ed in

Inco

term

s 2010

;

cmce

ntim

etre

s;

Com

petent Person’s R

eport or CPR

a repo

rt com

pile

d b

y independent C

om

pete

nt P

erso

ns re

lating to

the te

chnical asp

ects o

f a min

e that

may in

clude a te

chno

-finan

cial mo

del;

Cr

2 O3

chro

miu

m (III) o

xid

e;

CSD

P Markets A

cta C

entral S

ecu

rities D

eposito

ry Particip

ant as d

efin

ed in

sectio

n 1

of th

e Finan

cial Marke

ts Act;

Cyprus C

ompanies Law

Co

mpan

ies L

aw, ch

apte

r 113 o

f the law

s of C

ypru

s, as amended, su

pple

mente

d o

r oth

erw

ise mo

difie

d

from

time to

time;

dematerialise,

dematerialised or

dematerialisation

the p

roce

ss by w

hich

physical sh

are certificate

s are replace

d w

ith e

lectro

nic re

cord

s of o

wnersh

ip in

accord

ance w

ith th

e rule

s of Strate

;

dematerialised shares

share

s which

are held

in e

lectro

nic fo

rm as u

nce

rtificated se

curitie

s in acco

rdan

ce with

the re

quire

ments

of Strate

;

DM

Rth

e South

African

Departm

ent o

f Min

eral R

eso

urce

s;

EIAenviro

nm

ental im

pact asse

ssment;

Tharisa plc A

nnual Report 20144

8

EMP

the e

nviro

nm

ental m

anage

ment p

lan in

term

s of th

e MPR

DA

;

Equator Principlesth

e set o

f volu

ntary gu

idelin

es ad

opte

d an

d in

terp

rete

d in

accord

ance w

ith In

tern

ational Fin

ance

Co

rpo

rate Perfo

rman

ce Standard

s and th

e Wo

rld B

anks E

HS gu

idelin

es, ad

opte

d b

y Equato

r Prin

ciple

Finan

cial Institu

tions, as u

pdate

d fro

m tim

e to tim

e;

FCA

Free C

arrier –

a trade te

rm re

quirin

g the se

ller to

delive

r goo

ds to

the carrie

r or an

oth

er p

erso

n

no

min

ated b

y the b

uye

r at the se

ller’s p

rem

ises o

r anoth

er n

amed p

lace. C

osts fo

r transp

ortatio

n an

d

risk of lo

ss transfe

r to th

e buye

r after d

elive

ry to th

e carrier;

foundry grade concentrate 2 O

32 an

d a sp

ecific

particle size d

istributio

n;

g/tgram

s per to

nne;

Genesis or

Genesis plant

the

100 000 tp

m nam

eplate

capacity

pro

cessin

g plan

t fo

r th

e pro

ductio

n of

PG

M an

d ch

rom

e

conce

ntrate

, ow

ned b

y Tharisa M

inerals;

HD

SAH

istorically D

isadvan

taged S

outh

African

s as defin

ed in

the M

PR

DA

and th

e Min

ing C

harte

r;

IFRS

Inte

rnatio

nal Fin

ancial R

eportin

g Standard

s;

Impala R

efining Services

Incoterms 2010

the In

cote

rms ru

les are a se

ries o

f pre

-defin

ed co

mm

ercial te

rms p

ublish

ed b

y the In

tern

ational

Cham

ber o

f Co

mm

erce th

at are wid

ely u

sed in

inte

rnatio

nal co

mm

ercial tran

saction o

r pro

cure

ment

pro

cesse

s;

Indicated Mineral

Resource

an In

dicate

d M

ineral R

eso

urce is th

at part o

f a Min

eral R

eso

urce fo

r which

tonnage

, densitie

s, shap

e,

physical ch

aracteristics an

d m

ineral co

nte

nt can

be e

stimate

d w

ith a re

asonab

le leve

l of co

nfid

ence

.

Design

ating a re

source as In

dicate

d is b

ased o

n in

form

ation fro

m e

xplo

ration, sam

plin

g and te

sting

of m

aterial gath

ere

d fro

m lo

cations su

ch as o

utcro

ps, tre

nch

es, p

its, wo

rkings an

d d

rill ho

les. T

he

locatio

ns are to

o w

idely o

r inap

pro

priate

ly space

d to

confirm

geolo

gical or grad

e contin

uity b

ut are

space

d clo

se enough

for co

ntin

uity to

be assu

med;

Inferred Mineral

Resource

an In

ferre

d M

ineral R

eso

urce is th

at part o

f a Min

eral R

eso

urce fo

r which

volu

me o

r tonnage

, grade

and m

ineral co

nte

nt can

be e

stimate

d w

ith o

nly a lo

w le

vel o

f confid

ence

. It is infe

rred fro

m ge

olo

gical

evid

ence an

d sam

ple an

d assu

med b

ut n

ot ve

rified ge

olo

gically or th

rough

analysis o

f grade co

ntin

uity.

Design

ating a M

ineral R

eso

urce “In

ferre

d” is b

ased o

n in

form

ation gath

ere

d th

rough

appro

priate

tech

niq

ues fro

m lo

cations su

ch as o

utcro

ps, tre

nch

es, p

its, wo

rkings an

d d

rill ho

les th

at may b

e limite

d

in sco

pe o

r of u

nce

rtain q

uality an

d re

liability;

Investec Bank

Inve

stec B

ank L

imite

d (R

egistratio

n n

um

ber 19

69/0

0476

3/0

6), a p

ublic co

mpan

y duly re

gistere

d an

d

inco

rpo

rated in

South

Africa;

JSE or Johannesburg Stock Exchange

JSE L

imite

d (R

egistratio

n n

um

ber 2

005/0

22939/0

6), a p

ublic co

mpan

y duly re

gistere

d an

d in

corp

orate

d

in S

outh

Africa an

d lice

nse

d in

term

s of th

e Finan

cial Marke

ts Act, N

o 19

of 2

012;

King III

the K

ing C

ode o

f Gove

rnan

ce Prin

ciple

s for S

outh

Africa, 2

009 (K

ing C

ode) an

d th

e Kin

g Repo

rt on

Gove

rnan

ce for S

outh

Africa, 2

009 (K

ing R

epo

rt) as amended fro

m tim

e to tim

e;

km1 0

00 m

etre

s;

koz1 0

00 o

unce

s;

kt1 0

00 to

nnes;

Listingth

e prim

ary listing o

f Tharisa, a fo

reign

registe

red co

mpan

y, in th

e “General M

inin

g” secto

r of th

e Main

Board

of th

e JSE u

nder th

e abbre

viated n

ame “T

harisa”, JS

E co

de “T

HA

” and IS

IN C

Y010

3562118

;

JSE Listings Requirem

entsth

e Listin

gs Require

ments o

f the JS

E, as am

ended fro

m tim

e to tim

e;

LoMlife o

f min

e, b

ein

g the e

xpecte

d re

main

ing ye

ars of p

roductio

n b

ased o

n p

roductio

n rate

s and o

re

Min

eral R

ese

rves;

LTI

lost tim

e inju

ry resu

lting in

the in

jure

d b

ein

g unab

le to atte

nd/re

turn

to w

ork to

perfo

rm th

e fu

ll dutie

s

of h

is/her re

gular w

ork, as p

er ad

vice of a su

itably q

ualifie

d m

edical p

rofe

ssional, o

n th

e next cale

ndar

day afte

r the in

jury;

LTIFR

lost tim

e inju

ry frequency rate

, the n

um

ber o

f lost tim

e inju

ries p

er 2

00 0

00 h

ours w

orke

d;

Glossary of abbreviations, definitions

and technical terms (continued)

Tharisa plc A

nnual Report 20144

9

OVERVIEWOPERATIONAL REVIEWGOVERNANCE LEADERSHIP REVIEWMINERAL RESOURCE AND MINERAL RESERVE

STATEMENT

ABRIDGED ANNUAL FINANCIAL STATEMENTS

GLOSSARYSHAREHOLDER INFORMATION

Measured M

ineral R

esourcea M

easu

red M

ineral R

eso

urce is th

at part o

f a Min

eral R

eso

urce fo

r which

tonnage

, densitie

s, shap

e,

physical ch

aracteristics, grad

e and m

ineral co

nte

nt can

be e

stimate

d w

ith a h

igh le

vel o

f confid

ence

.

Describ

ing a re

source as “M

easu

red” is b

ased o

n d

etaile

d an

d re

liable in

form

ation fro

m e

xplo

ration,

samplin

g and te

sting o

f mate

rial from

locatio

ns su

ch as o

utcro

ps, tre

nch

es, p

its, wo

rkings an

d d

rill

hole

s. The lo

cations are sp

aced clo

sely e

nough

to co

nfirm

geolo

gical and grad

e contin

uity;

metallurgical grade

concentrate2 O

3 ;

MG

0ch

rom

itite layer th

at consists o

f chro

mitite d

issem

inatio

n w

ith m

ore ch

rom

itite layers an

d strin

gers,

that are d

eve

loped in

the fo

otw

all pyro

xenite o

f the M

G1 ch

rom

itite layer;

MG

Ich

rom

itite layer th

at typically h

as a massive ch

rom

itite conte

nt w

ith m

ino

r feld

spath

ic pyro

xenite

partin

gs or laye

ring. In

som

e areas th

e MG

1 ch

rom

itite layer h

as deve

loped in

to tw

o ch

rom

itite layers

separate

d b

y a feld

spath

ic pyro

xenite

;

MG

2ch

rom

itite layer th

at consists o

f thre

e groupin

gs of ch

rom

itite layers w

hich

from

the b

ase are the

MG

2A

chro

mitite laye

r, MG

2B ch

rom

itite layer an

d th

e MG

2C

chro

mitite laye

r. The p

artings are

typically fe

ldsp

athic p

yroxe

nite

. The p

arting b

etw

een th

e MG

2B ch

rom

itite layer an

d M

G2C

chro

mitite

layer in

cludes a p

latinife

rous ch

rom

itite stringe

r;

MG

3ch

rom

itite laye

r th

at is

occasio

nally

a m

assive ch

rom

itite laye

r but

mo

re ofte

n a

very

irregu

lar

assem

blage o

f chro

mitite laye

rs and strin

gers w

ithin

a no

rite and/o

r ano

rthosite

. The to

p o

f the

package typ

ically consists o

f thin

chro

mitite strin

gers an

d d

issem

inatio

n o

f chro

mite in

norite w

hich

deve

lops in

to a m

assive layer at th

e base

;

MG

4th

e MG

4 ch

rom

itite layer co

nsists o

f a low

er ch

rom

itite (MG

4(0

) chro

mitite laye

r) (appro

xim

ately

0.6

m th

ick) imm

ediate

ly ove

rlain b

y a no

rite (appro

xim

ately 0

.85m

thick) fo

llow

ed b

y the ch

rom

itite

layer o

f the M

G4 ch

rom

itite layer (ap

pro

xim

ately 1.8

m th

ick), ove

rlain b

y anoth

er p

arting, o

f feld

spath

ic

pyro

xenite co

mpositio

n, so

me 3

.2m

thick an

d fin

ally ove

rlain b

y the ch

rom

itite of th

e MG

4A

chro

mitite

layer (ap

pro

xim

ately 1.5

m th

ick);

MG

4Ath

e MG

4A

chro

mitite laye

r consists o

f a num

ber o

f chro

mitite laye

rs with

in a p

yroxe

nite h

ost ro

ck;

MG

chromitite layers

group

of

five ch

rom

ite laye

rs th

at are

know

n

in

the

low

er

and

upper

Critical

Zo

ne

of

the

Bush

veld

Co

mple

x;

Mineral R

eserveth

e eco

no

mically m

ineab

le mate

rial derive

d fro

m a m

easu

red o

r indicate

d M

ineral R

eso

urce o

r both

,

which

inclu

des d

ilutin

g and co

ntam

inatin

g mate

rials and allo

ws fo

r losse

s that are e

xpecte

d to

occu

r

when th

e mate

rial is min

ed. A

ppro

priate asse

ssments to

a min

imum

of a p

re-fe

asibility stu

dy fo

r a

pro

ject an

d a Lo

M p

lan fo

r an o

peratio

n m

ust h

ave been co

mple

ted, in

cludin

g consid

eratio

n o

f, and

mo

dificatio

n b

y, realistically assu

med m

inin

g, metallu

rgical, eco

no

mic, m

arketin

g, legal, e

nviro

nm

ental,

social an

d go

vern

mental facto

rs (the m

odifyin

g factors);

Mineral R

esourcea co

nce

ntratio

n o

r occu

rrence o

f mate

rial of e

cono

mic in

tere

st in o

r on th

e earth

’s crust in

such

form

,

quality an

d q

uan

tity that th

ere are re

asonab

le and re

alistic pro

spects fo

r eve

ntu

al eco

no

mic e

xtractio

n.

The lo

cation, q

uan

tity, grade, co

ntin

uity an

d o

ther ge

olo

gical characte

ristics of a M

ineral R

eso

urce are

know

n, o

r estim

ated fro

m sp

ecific ge

olo

gical evid

ence

, samplin

g and kn

ow

ledge in

terp

rete

d fro

m

an ap

pro

priate

ly constrain

ed an

d p

ortraye

d ge

olo

gical mo

del. M

ineral R

eso

urce

s are subdivid

ed,

and m

ust b

e so re

po

rted, in

ord

er o

f incre

asing co

nfid

ence in

resp

ect o

f geoscie

ntific e

vidence

, into

Infe

rred, In

dicate

d o

r Measu

red cate

gorie

s;

Mining C

harterth

e B

road

-base

d So

cio-e

cono

mic

Em

pow

erm

ent

Charte

r fo

r th

e South

A

frican M

inin

g In

dustry

(toge

ther w

ith th

e C

harte

r Sco

recard

), publish

ed p

ursu

ant to

sectio

n 10

0(2)(a) o

f the M

PR

DA

under

Gove

rnm

ent G

azette

No. 2

6661

of 13

Augu

st 2004 an

d th

ere

after am

ended b

y General N

otice

838

of 2

0 S

epte

mber 2

010;

Mining R

ighta n

ew

ord

er m

inin

g right, gran

ted b

y the D

MR

in te

rms o

f the M

PR

DA

, which

pro

vides th

e ho

lder

there

of th

e require

d le

gal title to m

ine;

MPR

DA

the S

outh

African

Min

eral an

d P

etro

leum

Reso

urce

s Deve

lopm

ent A

ct, No 2

8 o

f 2002, as am

ended;

Mt

millio

n to

nnes;

Tharisa plc A

nnual Report 20145

0

Mtpa

millio

n to

nnes p

er an

num

;

Noble

No

ble R

eso

urce

s Inte

rnatio

nal P

TE L

imite

d, (R

egistratio

n n

um

ber 2

01115304N

), a com

pan

y duly

registe

red an

d in

corp

orate

d in

Sin

gapo

re;

NU

Mth

e N

ational U

nio

n o

f Min

ew

orke

rs;

oza tro

y ounce w

hich

is exactly 31.10

3476

8 gram

s;

ozpaoz p

er an

num

;

paper an

num

;

PGM

splatin

um

group m

etals b

ein

g platin

um

, pallad

ium

, rho

diu

m, ru

theniu

m, irid

ium

, and o

smiu

m;

PGM

concentrate th

e com

mercially acce

ptab

le flotatio

n co

nce

ntrate co

ntain

ing P

GM

s;

prill splita b

reakd

ow

n b

y mass o

f the vario

us P

GM

metals co

ntain

ed in

PG

M co

ntain

ing m

aterials;

Prospecting Right

a pro

spectin

g right gran

ted b

y the D

MR

in te

rms o

f the M

PR

DA

;

Rand York M

ineralsR

and Y

ork M

inerals P

roprie

tary Lim

ited (R

egistratio

n n

um

ber 19

85/0

04951/0

7), a p

rivate com

pan

y

duly re

gistere

d an

d in

corp

orate

d in

South

Africa;

reefin

the co

nte

xt o

f this A

nnual R

epo

rt, reef re

fers to

any o

r all of th

e MG

and U

G ch

rom

itite layers;

RO

Mru

n o

f min

e, b

ein

g the o

re tonnage e

xtracte

d to

be p

roce

ssed;

SAM

REC

Code

the

South

A

frican C

ode

for

Repo

rting

of

Explo

ration R

esu

lts, M

ineral

Reso

urce

s an

d R

ese

rves

(pre

pare

d b

y the S

outh

African

Min

eral R

eso

urce C

om

mitte

e (SA

MR

EC

) Wo

rking G

roup) (2

007 an

d

as amended in

2009);

SAM

VAL C

odeth

e South

African

Co

de fo

r the R

epo

rting o

f Min

eral A

sset V

aluatio

n (2

008) (as am

ended in

July 2

009)

pre

pare

d b

y the S

outh

African

Min

eral A

sset V

aluatio

n C

om

mitte

e (SA

MVA

L) Wo

rking G

roup;

SENS

the Sto

ck Exch

ange N

ew

s Service

of th

e JS

E;

SiO2

silicon d

ioxid

e;

SLPSo

cial and L

abour P

lan aim

ed at p

rom

otin

g em

plo

yment an

d ad

vance

ment o

f the so

cial and e

cono

mic

welfare

of all S

outh

African

s whilst e

nsu

ring e

cono

mic gro

wth

and so

cioeco

no

mic d

eve

lopm

ent as

stipulate

d in

the M

PR

DA

;

StrateStrate L

imite

d (R

egistratio

n n

um

ber 19

98/0

2224

2/0

6), a lim

ited liab

ility public co

mpan

y duly re

gistere

d

and in

corp

orate

d in

South

Africa, w

hich

is a registe

red ce

ntral se

curitie

s deposito

ry and w

hich

is

resp

onsib

le for th

e ele

ctronic se

ttlem

ent syste

m u

sed b

y the JS

E;

stripping ratioth

e ratio, m

easu

red in

m3 to

m3 at w

hich

waste an

d in

ter-b

urd

en are re

move

d, re

lative to o

re min

ed;

tto

nne;

tpato

nnes p

er an

num

;

tpmto

nnes p

er m

onth

;

UG

1th

e Upper G

roup 1

Chro

mitite L

ayer th

at is a well d

eve

loped an

d co

nsiste

nt m

arker in

the C

ritical

Zo

ne o

f the B

ush

veld

Co

mple

x that co

nsists o

f a massive ch

rom

itite, ch

rom

itifero

us p

yroxe

nite

, ban

ds

of an

orth

osite

, chro

mitite an

d n

orite

s and strin

gers o

f chro

mitite

s;

UG

2th

e Upper G

roup 2

Chro

mitite L

ayer o

f the B

ush

veld

Co

mple

x that is w

ell kn

ow

n an

d typ

ically

contain

s PG

Ms in

a conce

ntratio

n th

at is sufficie

nt fo

r eco

no

mic e

xtractio

n;

US$

Unite

d State

s Dollars, th

e law

ful cu

rrency o

f the U

S;

Voyager or Voyager plant a 3

00 0

00 tp

m n

ameplate cap

acity pro

cessin

g plan

t for th

e pro

ductio

n o

f PG

M an

d ch

rom

e conce

ntrate

,

ow

ned b

y Tharisa M

inerals;

ZA

R or R

or Rand

South

African

Ran

d, th

e lawfu

l curre

ncy o

f South

Africa.

Glossary of abbreviations, definitions

and technical terms (continued)

Tharisa plc A

nnual Report 20145

1

OVERVIEWOPERATIONAL REVIEWGOVERNANCE LEADERSHIP REVIEWMINERAL RESOURCE AND MINERAL RESERVE

STATEMENT

ABRIDGED ANNUAL FINANCIAL STATEMENTS

GLOSSARYSHAREHOLDER INFORMATION

Shareholder information

Analysis of ordinary shareholders

Num

ber ofshareholders

Num

ber ofshares

Percentage ofissued share

capital

Hold

ings o

f 1 –

10 0

00 sh

ares

7193 8

40

0.0

4

Hold

ings o

f 10 0

01 to

100 0

00 sh

ares

21827 0

30

0.3

2

Hold

ings o

f 100 0

01 to

1 0

00 0

00 sh

ares

51 2

78 53

90.5

0

Hold

ings o

f 1 0

00 0

01 to

5 0

00 0

00 sh

ares

717

504 4

92

6.8

7

Hold

ings o

f 5 0

00 0

01 to

100 0

00 0

00 sh

ares

11235 0

76 74

592.2

7

Total115

254 780 646100.00

Major shareholders

Num

ber of shares

Percentage ofissued share

capital

Shareholders holding 10% or m

ore M

edw

ay Deve

lopm

ents L

imite

d119

030 0

73

46.7

2

Persh

ing L

LC40 5

48 241

15.91

Fujian

Wuhan

g Stainle

ss Steel C

o. L

imite

d28 0

70 211

11.02

Shareholders holding 5% or m

ore (but less than 10%)

Maad

en In

vest L

imite

d (d

irect an

d in

dire

ct hold

ing)

14 9

89 3

57

5.8

8

Public and non-public shareholdersN

umber of

shareholdersN

umber ofshares

Percentage ofissued share

capital

Public

11060 159

025

23.61

No

n-p

ublic

Dire

ctors an

d asso

ciates o

f the C

om

pan

y and its su

bsid

iaries

312

6 0

03 16

949.4

6

Perso

ns in

tere

sted (o

ther th

an d

irecto

rs), dire

ctly or in

dire

ctly,

268 618

452

26.9

3

Total115

254 780 646100.00

DISC

LOSU

RE O

F DIR

ECTO

RS’ IN

TER

ESTS IN

TH

E CO

MPA

NY

’S SHA

RE C

APITA

L

The aggre

gate dire

ct and in

dire

ct inte

rests o

f the d

irecto

rs in th

e issued sh

are capital o

f the C

om

pan

y are as follo

ws:

20142013

Beneficial

Non-beneficial

Director

Direct

IndirectD

irectIndirect

Loucas P

ouro

ulis

––

––

–

Phoevo

s Pouro

ulis

–6 664 157

––

–

Mich

ael Jo

nes

––

––

–

David

Salte

r–

––

––

Anto

nio

s Djako

uris

––

––

–

Ioan

nis D

rapan

iotis

––

––

–

Om

ar Kam

al–

––

308 939*–

Total

–6 664 157

– 308 939

–

* These shares are held indirectly and beneficially by Om

ar Kam

al’s mother, and w

hilst she is not regarded as an associate in terms of the JSE

Listings Requirem

ents,

the holding is disclosed in the interest of transparency.

The fo

llow

ing ch

ange

s in d

irecto

rs’ inte

rests o

ccurre

d su

bse

quent to

the fin

ancial ye

ar end an

d ap

pro

val of th

e annual fin

ancial state

ments:

i) Pho

evo

s Pouro

ulis acq

uire

d 24

5 2

75 sh

ares o

n 18

Febru

ary 2015

(indire

ct beneficial h

old

ing)

ii) B

rian C

hi M

ing C

heng w

as appoin

ted as a n

on-e

xecu

tive dire

ctor o

n 19

Dece

mber 2

015. H

e has n

o in

tere

sts in th

e Co

mpan

y’s sh

are capital.

AN

ALY

SIS OF SH

AR

EHO

LDER

S AT 30 SEPT

EMBER

2014

Tharisa plc A

nnual Report 20145

2

Notice of A

nnual General M

eeting

Notice is h

ere

by give

n th

at the A

nnual G

eneral M

eetin

g of

share

hold

ers o

f Tharisa w

ill be h

eld

at Office 10

9, First Floo

r, S. P

ittoko

pitis B

usin

ess C

entre

, No 17

Neo

phyto

u N

icolaid

es

and K

ilkis Street, P

aphos, C

ypru

s on T

hursd

ay, 23 A

pril 2

015

at 11:00 (U

TC

+3) to

consid

er an

d, if d

eem

ed fit, p

ass with

or

with

out m

odificatio

n, th

e ord

inary an

d sp

ecial re

solu

tions as

set o

ut in

this N

otice o

f Annual G

eneral M

eetin

g and to

deal

with

such

oth

er b

usin

ess as m

ay be d

ealt w

ith at th

e Annual

General M

eetin

g.

IDEN

TIFIC

ATIO

NShare

hold

ers

are ad

vised

that

any

perso

n

attendin

g o

r particip

ating

in an

A

nnual

General

Meetin

g of

share

ho

lders

must p

rese

nt re

asonab

ly satisfactory id

entificatio

n b

efo

re bein

g entitle

d to

particip

ate in

and vo

te at the A

nnual G

eneral M

eetin

g an

d th

e perso

n p

resid

ing at th

e Annual G

eneral M

eetin

g must

be re

asonab

ly satisfied th

at the righ

t of an

y perso

n to

particip

ate in

and vo

te (wheth

er as sh

arehold

er o

r pro

xy fo

r a share

hold

er)

has b

een re

asonab

ly verifie

d. Fo

rms o

f identificatio

n th

at will b

e acce

pte

d in

clude o

riginal an

d valid

identity d

ocu

ments, d

river’s

licence

s or p

asspo

rts.

IMPO

RTAN

T D

ATES

Reco

rd d

ate to re

ceive n

otice o

f

the A

nnual G

eneral M

eetin

gFrid

ay, 13 M

arch 2

015

Last d

ay to trad

e to b

e eligib

le

to vo

teFrid

ay, 10 A

pril 2

015

Reco

rd d

ate to b

e eligib

le to vo

te

at the A

nnual G

eneral M

eetin

gFrid

ay, 17 A

pril 2

015

Last d

ay for lo

dgin

g pro

xy fo

rms

(by 11:0

0)

Tuesd

ay, 21 A

pril2

015

Acco

rdin

gly, the d

ate on w

hich

a perso

n m

ust b

e registe

red as

a share

ho

lder in

the re

gister o

f the C

om

pan

y to b

e entitle

d to

atte

nd an

d vo

te at the A

nnual G

eneral M

eetin

g will b

e Friday,

17 A

pril 2

015.

ELECT

RON

IC PA

RTIC

IPATIO

NT

harisa

inte

nds

to

offe

r sh

arehold

ers

reaso

nab

le acce

ss, th

rough

ele

ctronic facilitie

s, to p

articipate in

the A

nnual G

eneral

Meetin

g by m

ean

s of a co

nfe

rence call facility. S

hare

hold

ers w

ill be ab

le to liste

n to

the p

roce

edin

gs and raise q

uestio

ns sh

ould

th

ey w

ish to

do so

and are in

vited to

indicate th

eir in

tentio

n

to m

ake use o

f this facility b

y makin

g applicatio

n, in

writin

g (in

cludin

g details as to

how

the sh

areho

lder o

r repre

sentative

can

be

contacte

d),

to

the

Co

mpan

y at

ir@th

arisa.com

. T

he

applicatio

n is

to be

rece

ived by

the

Co

mpan

y at

least

10 busin

ess

days

prio

r to

th

e date

of

the

Annual

General

Meetin

g, nam

ely W

ednesd

ay, 8 A

pril 2

015. T

he C

om

pan

y will,

by w

ay of e

mail, p

rovid

e in

form

ation e

nab

ling p

articipatio

n to

th

ose sh

arehold

ers w

ho h

ave mad

e applicatio

n. S

hare

hold

ers

will b

e bille

d se

parate

ly by th

eir o

wn te

lepho

ne se

rvice p

rovid

er

for th

eir te

lepho

ne call to

particip

ate in th

e meetin

g.

Votin

g w

ill not

be

possib

le via

the

ele

ctronic

facility an

d

share

hold

ers

wish

ing

to

exe

rcise th

eir

votin

g righ

ts at

the A

nnual G

eneral M

eetin

g are require

d to

be re

pre

sente

d

at th

e meetin

g eith

er

in

perso

n,

by

pro

xy

or

by

lette

r of

repre

sentatio

n

as pro

vided

for

in

the

Notice

of

Annual

General M

eetin

g.

RESO

LUT

ION

S FOR

CO

NSID

ERAT

ION

AN

D

AD

OPT

ION

Ord

inary

bu

siness

1. O

rdinary resolution number 1

Adoption of annual financial statements

“RESO

LVED

TH

AT

the au

dite

d an

nual fin

ancial state

ments

for

the ye

ar ended 30 Septe

mber

2014

, in

cludin

g th

e

repo

rts of th

e dire

ctors an

d th

e independent au

dito

r, be

rece

ived an

d ad

opte

d.”

Additional inform

ation in respect of ordinary resolution num

ber 1T

he

condense

d

conso

lidate

d

audite

d

annual

finan

cial state

ments fo

r the ye

ar ended 3

0 S

epte

mber 2

014 are

inclu

ded

in

the

Annual

Repo

rt of

which

th

is N

otice

of

Annual

General

Meetin

g fo

rms

part.

The

com

ple

te au

dite

d an

nual

finan

cial state

ments,

toge

ther

with

th

e re

levan

t repo

rts for th

e year e

nded 3

0 S

epte

mber 2

014,

are availab

le o

n th

e C

om

pan

y’s website

, ww

w.th

arisa.com

.

This

reso

lutio

n

is non-b

indin

g, th

ere

fore

no

min

imum

vo

ting

thre

shold

is

require

d

for

ord

inary

reso

lutio

n

num

ber 1.

2. O

rdinary resolution number 2

Re-appointment of external auditors

“RESO

LVED

T

HA

T

KPM

G

Lim

ited

Cyp

rus,

with

M

aria Karato

ni b

ein

g the d

esign

ated re

gistere

d au

dito

r, be

re-ap

po

inte

d as

the

independent

exte

rnal

audito

rs of

the

Co

mpan

y an

d

of

the

Gro

up

for

the

finan

cial ye

ar endin

g 30 S

epte

mber

2015

, to

hold

office

until

conclu

sion o

f the n

ext A

nnual G

eneral M

eetin

g of th

e C

om

pan

y, and th

at their re

muneratio

n fo

r the fin

ancial

year e

ndin

g 30 S

epte

mber 2

015 b

e dete

rmin

ed b

y the

Audit C

om

mitte

e.”

Additional inform

ation in respect of ordinary resolution num

ber 2In

accord

ance w

ith clau

se 195 o

f the C

om

pan

y’s Article

s of A

ssociatio

n an

d se

ctions 153

to 15

5 o

f the C

om

pan

ies

Law

, K

PM

G

Lim

ited

Cyp

rus

is pro

pose

d

to

be

re-

appoin

ted as th

e exte

rnal au

dito

rs of th

e Co

mpan

y, until

the

conclu

sion

of

the

next

Annual

General

Meetin

g. T

he A

udit C

om

mitte

e conducte

d an

assessm

ent o

f the

TH

AR

ISA PLC

(Inco

rporate

d in

the R

epublic o

f Cyp

rus w

ith lim

ited liab

ility)(R

egistratio

n n

um

ber: H

E223412)

JSE sh

are code: T

HA

ISIN: C

Y0103

562118

(“Tharisa” o

r “the C

om

pany”)

plc

Tharisa plc A

nnual Report 20145

3

OVERVIEWOPERATIONAL REVIEWGOVERNANCE LEADERSHIP REVIEWMINERAL RESOURCE AND MINERAL RESERVE

STATEMENT

ABRIDGED ANNUAL FINANCIAL STATEMENTS

GLOSSARYSHAREHOLDER INFORMATION

Tharisa plc A

nnual Report 20145

3

perfo

rman

ce an

d

the

independence

of

the

exte

rnal

audito

rs an

d

their

com

plian

ce w

ith

the

JSE

Listin

gs R

equire

ments an

d re

com

mends th

eir re

-appoin

tment as

independent au

dito

rs of th

e Co

mpan

y and th

e Gro

up.

The

perce

ntage

of

votin

g righ

ts re

quire

d fo

r o

rdin

ary

votin

g rights e

xercise

d o

n th

is reso

lutio

n b

y all share

hold

ers

pre

sent o

r repre

sente

d b

y pro

xy an

d e

ntitle

d to

vote at

the A

nnual G

eneral M

eetin

g.

3. O

rdinary resolution number 3 (com

prising ordinary resolutions num

bers 3.1 to 3.5)Re-election of directors appointed by the Board

The fo

llow

ing d

irecto

rs retire in

term

s of th

e C

om

pan

y’s A

rticles o

f Asso

ciation an

d, b

ein

g eligib

le, o

ffer th

em

selve

s fo

r re-e

lectio

n, e

ach b

y separate vo

te:

3.1

“R

ESO

LVED

TH

AT

Om

ar Marw

an K

amal, w

ho re

tires in

te

rms o

f the C

om

pan

y’s Article

s of A

ssociatio

n an

d w

ho,

bein

g eligib

le, o

ffers h

imse

lf for re

-ele

ction, b

e re-e

lecte

d

as a dire

ctor o

f the C

om

pan

y.”

3.2

“R

ESO

LVED

TH

AT

Brian

Chi M

ing C

heng, w

ho re

tires in

te

rms o

f the C

om

pan

y’s Article

s of A

ssociatio

n an

d w

ho,

bein

g eligib

le, o

ffers h

imse

lf for re

-ele

ction, b

e re-e

lecte

d

as a dire

ctor o

f the C

om

pan

y.”

Additional

information

in resp

ect of

ordinary resolutions

numbers 3

.1 and 3

.2

In

term

s of

clause

156

of

the

Com

pan

y’s A

rticles

of

Asso

ciation,

the

Board

has

the

pow

er

to ap

poin

t an

y perso

n as an

additio

nal d

irecto

r to th

e Board

, pro

vided

that a d

irecto

r so ap

poin

ted sh

all hold

office o

nly u

ntil th

e next A

nnual G

eneral M

eetin

g of th

e Com

pan

y and sh

all th

en b

e eligib

le for re

-ele

ction. O

mar M

arwan

Kam

al and

Brian

Chi M

ing C

heng w

ere ap

poin

ted b

y the B

oard

as ad

ditio

nal

dire

ctors

to th

e B

oard

on 11

Ju

ne

2014

an

d

19

Dece

mber

2014

re

spective

ly. A

ccord

ingly,

they

are re

quire

d to

retire an

d are e

ligible fo

r re-e

lectio

n, an

d h

ave offe

red th

em

selve

s for re

-ele

ction.

Re-election of directors retiring by rotation3.3

“R

ESO

LVED

T

HA

T Io

annis

Drap

anio

tis, w

ho re

tires

in

accord

ance w

ith th

e Co

mpan

y’s Article

s of A

ssociatio

n

and w

ho, b

ein

g eligib

le, o

ffers h

imse

lf for re

-ele

ction, b

e re

-ele

cted as a d

irecto

r of th

e Co

mpan

y.”

3.4

“R

ESO

LVED

T

HA

T

John

David

Salte

r, w

ho

retire

s in

acco

rdan

ce with

the C

om

pan

y’s Article

s of A

ssociatio

n

and w

ho, b

ein

g eligib

le, o

ffers h

imse

lf for re

-ele

ction, b

e re

-ele

cted as a d

irecto

r of th

e Co

mpan

y.”

3.5

“R

ESO

LVED

T

HA

T A

nto

nio

s D

jakouris,

who re

tires

in

accord

ance w

ith th

e Co

mpan

y’s Article

s of A

ssociatio

n

and w

ho, b

ein

g eligib

le, o

ffers h

imse

lf for re

-ele

ction, b

e re

-ele

cted as a d

irecto

r of th

e Co

mpan

y.”

Additional

information

in resp

ect of

ordinary resolutions

numbers 3

.3 to 3

.5In

te

rms

of

clause

110

of

the

Co

mpan

y’s A

rticles

of

Asso

ciation, o

ne-th

ird o

f the n

on-e

xecu

tive dire

ctors o

f th

e Co

mpan

y for th

e time b

ein

g are require

d to

retire

from

office at e

ach A

nnual G

eneral M

eetin

g. The d

irecto

rs of th

e Co

mpan

y to re

tire in e

very ye

ar shall b

e those

who h

ave been lo

nge

st servin

g since th

eir last e

lectio

n.

A re

tiring d

irecto

r shall b

e eligib

le for re

-ele

ction. G

iven

that th

e Co

mpan

y listed o

n th

e JSE d

urin

g the fin

ancial

year u

nder re

view

, all no

n-e

xecu

tive dire

ctors are re

tiring

by ro

tation an

d o

ffer th

em

selve

s for re

-ele

ction.

A b

rief curriculum

vitae in

resp

ect o

f each

dire

ctor re

ferre

d

to

in

ord

inary

reso

lutio

ns

num

bers

3.1

to

3.5

ab

ove

appears o

n p

ages 24

and 2

5 o

f the A

nnual R

epo

rt of

which

this N

otice o

f Annual G

eneral M

eetin

g form

s part.

The B

oard

reco

mm

ends to

share

hold

ers th

e re-e

lectio

n

of e

ach o

f the re

tiring d

irecto

rs as set o

ut in

ord

inary

reso

lutio

ns n

um

bers 3

.1 to

3.5

.

The

perce

ntage

of

votin

g righ

ts re

quire

d fo

r o

rdin

ary

one o

f the vo

ting righ

ts exe

rcised o

n su

ch re

solu

tion b

y

all sh

areho

lders

pre

sent

or

repre

sente

d by

pro

xy

and

entitle

d to

vote at th

e A

nnual G

eneral M

eetin

g.

Sp

ecia

l bu

siness

4. O

rdinary resolution number 4

General authority to directors to allot and issue ordinary shares

“RESO

LVED

TH

AT

the au

thorise

d b

ut u

nissu

ed sh

ares in

the cap

ital of th

e Com

pan

y limite

d to

38 217

097 (th

irty

eigh

t m

illion

two

hundre

d

and

seve

nte

en

thousan

d

equity se

curitie

s in issu

e at the d

ate of th

is Notice

, bein

g

254 7

80 6

46 (tw

o hundre

d an

d fifty

four

millio

n se

ven

hundre

d an

d e

ighty th

ousan

d six h

undre

d an

d fo

rty six)

ord

inary sh

ares (fo

r which

purp

ose

s any sh

ares ap

pro

ved

to b

e allotte

d an

d issu

ed b

y the C

om

pan

y in te

rms o

f the

Share A

ward

Plan

for th

e benefit o

f em

plo

yees sh

all be

exclu

ded), b

e and are h

ere

by p

laced u

nder th

e contro

l

and au

thority o

f the d

irecto

rs and th

at they b

e and are

here

by au

thorise

d to

allot, issu

e and gran

t optio

ns o

ver an

d

oth

erw

ise disp

ose o

f such

share

s to su

ch p

erso

ns o

n su

ch

term

s and co

nditio

ns an

d at su

ch tim

es as th

ey may fro

m

time to

time an

d at th

eir d

iscretio

n d

eem

fit, subje

ct to th

e

pro

visions o

f the C

om

pan

ies L

aw, as m

ay be am

ended fro

m

time to

time, th

e Com

pan

y’s Article

s of A

ssociatio

n an

d

the JS

E L

istings R

equire

ments. Su

ch au

thority sh

all be valid

until th

e conclu

sion o

f the n

ext A

nnual G

eneral M

eetin

g of

the C

om

pan

y”.

Additional inform

ation in respect of ordinary resolution num

ber 4

The B

oard

may o

nly allo

t and issu

e share

s or gran

t rights

ove

r share

s if auth

orise

d to

do so

by th

e share

ho

lders.

This

reso

lutio

n se

eks

auth

ority

for

the

Board

to

allo

t,

the C

om

pan

y’s issued sh

are capital. T

here is n

o p

rese

nt

inte

ntio

n

to

exe

rcise th

is au

tho

rity, but

the

Board

consid

ers it ad

vantage

ous fo

r the C

om

pan

y to h

ave the

flexib

ility to m

anage its cap

ital base an

d fin

ance p

ote

ntial

busin

ess o

ppo

rtunitie

s.

The

perce

ntage

of

votin

g righ

ts re

quire

d fo

r o

rdin

ary

the

votin

g righ

ts exe

rcised

on

such

re

solu

tion

by

all

share

ho

lders

pre

sent

or

repre

sente

d

by

pro

xy

and

entitle

d to

vote at th

e A

nnual G

eneral M

eetin

g.

5. O

rdinary resolution number 5

Dis-application of pre-em

ption rights

“RESO

LVED

TH

AT, su

bje

ct to th

e JSE L

istings R

equire

ments,

the B

oard

be an

d is h

ere

by au

thorise

d to

dis-ap

ply th

e pre

-

em

ptio

n righ

ts, with

resp

ect to

the au

thority co

nfe

rred o

n

the b

oard

of d

irecto

rs to issu

e and allo

t ord

inary sh

ares,

capital. T

his au

thority w

ill expire at th

e conclu

sion o

f the

Com

pan

y’s next A

nnual G

eneral M

eetin

g.

24 and 25

Tharisa plc A

nnual Report 20145

4

Notice of A

nnual General M

eeting (continued)

Additional inform

ation in respect of ordinary resolution 5

In te

rms o

f sectio

n 6

0B o

f the C

om

pan

ies L

aw, if th

e Board

w

ishes to

allot any u

nissu

ed sh

ares, gran

t rights o

ver sh

ares

or se

ll treasu

ry share

s for cash

(oth

er th

an p

ursu

ant to

an

em

plo

yee sh

are schem

e) it must first o

ffer th

em

to e

xistin

g sh

arehold

ers in

pro

portio

n to

their h

old

ings. T

here m

ay be

circum

stance

s, how

ever,

where

the

Board

re

quire

s th

e fle

xib

ility to

fin

ance

busin

ess

opportu

nitie

s th

rough

th

e issue o

r sale of sh

ares o

r relate

d se

curitie

s with

out a

pre

-em

ptive o

ffer to

existin

g share

hold

ers. T

his can

only

be d

one u

nder th

e Com

pan

ies L

aw if th

e share

hold

ers h

ave first w

aived th

eir p

re-e

mptio

n rights. T

his re

solu

tion se

eks

auth

ority fo

r the B

oard

to d

is-apply p

re-e

mptio

n righ

ts for

share cap

ital. If grante

d, th

is auth

ority w

ill expire at th

e co

nclu

sion o

f the C

om

pany’s n

ext A

nnual G

eneral M

eetin

g.

The

perce

ntage

of

votin

g righ

ts re

quire

d fo

r o

rdin

ary

the

votin

g righ

ts exe

rcised

on

such

re

solu

tion

by

all sh

areho

lders

pre

sent

or

repre

sente

d

by

pro

xy

and

entitle

d to

vote at th

e A

nnual G

eneral M

eetin

g.

6. O

rdinary resolution number 6

General authority to issue shares for cash

“RESO

LVED

T

HA

T,

subje

ct to

ord

inary

reso

lutio

ns

num

bers 4

and 5

bein

g passe

d, th

e Board

be au

tho

rised,

by w

ay of a ge

neral au

tho

rity, to allo

t and issu

e share

s (an

d/o

r any o

ptio

ns o

r conve

rtible se

curitie

s) for cash

to

such

perso

ns o

n su

ch te

rms an

d co

nditio

ns as th

e Board

m

ay from

time to

time in

its discre

tion d

eem

fit, subje

ct to

the p

rovisio

ns o

f the C

om

pan

y’s Article

s of A

ssociatio

n,

the C

om

pan

ies L

aw, as m

ay be am

ended fro

m tim

e to

time an

d th

e JSE L

istings R

equire

ments an

d su

bje

ct to th

e fo

llow

ing lim

itations, n

amely th

at: i)

The e

quity se

curitie

s which

are the su

bje

ct of th

e issu

e for cash

must b

e of a class alre

ady in

issue, o

r w

here th

is is not th

e case, m

ust b

e limite

d to

such

se

curitie

s or righ

ts that are co

nve

rtible in

to a class

alread

y in issu

e;

ii) A

ny

such

issu

e w

ill o

nly

be

mad

e to

“p

ublic

share

hold

ers”

as defin

ed

in

the

JSE

Listin

gs R

equire

ments an

d n

ot to

relate

d p

arties, u

nle

ss the

JSE o

therw

ise agrees;

iii) In

resp

ect o

f secu

rities w

hich

are the su

bje

ct of th

e ge

neral issu

e of sh

ares fo

r cash, su

ch issu

e may n

ot

exce

ed 2

5 4

78 0

65 (tw

enty five m

illion fo

ur h

undre

d

and se

venty e

ight th

ousan

d an

d six

ty five) share

s,

secu

rities in

issue as at th

e date o

f this n

otice

, bein

g 254 780 646 (tw

o hundre

d an

d fifty

four

millio

n

seve

n h

undre

d an

d e

ighty th

ousan

d six h

undre

d an

d

forty six) sh

ares, p

rovid

ed th

at:–

any e

quity se

curitie

s issued u

nder th

is auth

ority

durin

g th

e perio

d m

ust

be

deducte

d fro

m th

e num

ber ab

ove

;–

in th

e eve

nt

of

a su

b-d

ivision o

r co

nso

lidatio

n

of

issued

equity

secu

rities

durin

g th

e perio

d

conte

mplate

d ab

ove

, the e

xistin

g auth

ority m

ust

be

adju

sted acco

rdin

gly to

re

pre

sent

the

same

allocatio

n ratio

; and

–

the calcu

lation o

f the liste

d e

quity se

curitie

s is a factu

al assessm

ent o

f the liste

d e

quity se

curitie

s as at th

e date o

f the n

otice o

f Annual G

eneral

Meetin

g, exclu

din

g treasu

ry share

s; iv)

This au

tho

rity shall b

e valid u

ntil th

e Co

mpan

y’s next

Annual G

eneral M

eetin

g; v)

A

SEN

S an

nounce

ment

giving

full

details

of

the

issue

will

be

publish

ed

at th

e tim

e of

any

issue

repre

sentin

g, on a cu

mulative b

asis with

in th

e perio

d

in issu

e prio

r to th

e issue co

nce

rned; an

d vi)

The m

axim

um

disco

unt p

erm

itted at w

hich

equity

average

trad

ed price

o

n th

e JS

E of

those

sh

ares

measu

red ove

r th

e 30-b

usin

ess

days

prio

r to

th

e

date th

at the p

rice of th

e issue is agre

ed b

etw

een

the

Co

mpan

y an

d

the

party

subscrib

ing

for

the

secu

rities. T

he JS

E sh

ould

be co

nsu

lted fo

r a rulin

g if th

e Co

mpan

y’s secu

rities h

ave not trad

ed in

such

30-b

usin

ess d

ay perio

d.”

Additional inform

ation in respect of ordinary resolution num

ber 6In

accord

ance w

ith th

e Com

pan

y’s Article

s of A

ssociatio

n,

and th

e JSE L

istings R

equire

ments, th

e share

hold

ers o

f the

Com

pan

y have to

appro

ve a general issu

e of sh

ares fo

r cash.

The e

xistin

g auth

oritie

s grante

d b

y the sh

arehold

ers o

f the

Com

pan

y at the p

revio

us A

nnual G

eneral M

eetin

g held

on

13 M

arch 2

014 e

xpire at th

e Annual G

eneral M

eetin

g to b

e held

on 2

3 A

pril 2

015, u

nle

ss renew

ed. T

his au

thority w

ill be su

bje

ct to th

e Com

pan

y’s Article

s of A

ssociatio

n, th

e C

om

pan

ies L

aw an

d th

e JSE L

istings R

equire

ments. T

he

Board

consid

ers it ad

vantage

ous to

renew

this au

thority

to e

nab

le the C

om

pan

y to take ad

vantage o

f any b

usin

ess

opportu

nity th

at may arise in

the fu

ture

.

This o

rdin

ary reso

lutio

n n

um

ber 6

is require

d, u

nder th

e JS

E L

istings R

equire

ments, to

be p

assed b

y achie

ving a

by all sh

areho

lders p

rese

nt o

r repre

sente

d b

y pro

xy an

d

entitle

d to

vote at th

e A

nnual G

eneral M

eetin

g.

7. O

rdinary resolution number 7

Approval of remuneration policy

“RESO

LVED

TH

AT

the G

roup re

muneratio

n p

olicy, as

describ

ed in

the R

em

uneratio

n R

epo

rt on p

ages 3

0 –

32

of

the

Annual

Repo

rt of

which

th

is N

otice

of

Annual

General M

eetin

g form

s part, b

e appro

ved b

y way o

f a no

n-b

indin

g adviso

ry vote

, as reco

mm

ended in

Kin

g III.”

Additional inform

ation in respect of ordinary resolution num

ber 7In

te

rms

of

Kin

g III

reco

mm

endatio

ns,

the

Co

mpan

y’s re

muneratio

n

policy

should

be

table

d

for

a no

n-

bin

din

g adviso

ry vote at e

very A

nnual G

eneral M

eetin

g.T

he n

on-b

indin

g adviso

ry vote is to

enab

le share

hold

ers

of

the

Co

mpan

y to

expre

ss th

eir

view

s o

n

the

Gro

up’s

rem

uneratio

n

po

licies

ado

pte

d,

and

on

their

imple

mentatio

n.

Acco

rdin

gly, th

e sh

arehold

ers

of

the

Co

mpan

y are

requeste

d

to

endo

rse th

e C

om

pan

y’s re

muneratio

n p

olicy as re

com

mended b

y Kin

g III.

This

reso

lutio

n

is non-b

indin

g, th

ere

fore

no

min

imum

vo

ting

thre

shold

is

require

d

for

ord

inary

reso

lutio

n

num

ber 7.

30 to 32

Tharisa plc A

nnual Report 20145

5

OVERVIEWOPERATIONAL REVIEWGOVERNANCE LEADERSHIP REVIEWMINERAL RESOURCE AND MINERAL RESERVE

STATEMENT

ABRIDGED ANNUAL FINANCIAL STATEMENTS

GLOSSARYSHAREHOLDER INFORMATION

and in

th

e pre

ss w

hen re

quire

d in

te

rms

of

the

Co

mpan

ies L

aw;

x) T

he

Board

undertake

s th

at it

will

not

imple

ment

the p

ropose

d au

tho

rity to re

purch

ase share

s, unle

ss

the d

irecto

rs are of th

e opin

ion th

at, for a p

erio

d o

f

12 m

onth

s after th

e date o

f the re

purch

ase:

–

the C

om

pan

y and th

e Gro

up w

ill be ab

le, in

the

ord

inary co

urse o

f busin

ess, to

pay its d

ebts;

–

the asse

ts of th

e Co

mpan

y and th

e Gro

up, fairly

valued in

accord

ance w

ith IFR

S, w

ill be in

exce

ss

of th

e liab

ilities o

f the C

om

pan

y and th

e G

roup;

–

the sh

are capital an

d re

serve

s of th

e Co

mpan

y

and

the

Gro

up

will

be

adequate

for

ord

inary

busin

ess p

urp

ose

s; and

–

the w

orkin

g capital o

f the C

om

pany an

d th

e Gro

up

will b

e adequate fo

r ord

inary b

usin

ess p

urp

ose

s.”

Additional inform

ation in respect of sp

ecial resolution number 1

Under

sectio

n 57A

of

the

Co

mpan

ies

Law

, th

e B

oard

must

obtain

au

tho

risation

by

special

reso

lutio

n

from

the sh

arehold

ers

befo

re th

ey

can

effe

ct th

e purch

ase

by

the

Co

mpan

y of

any

of

its ow

n sh

ares.

In ce

rtain

circum

stance

s it may b

e advan

tageous fo

r the C

om

pan

y

to

purch

ase its

ow

n

share

s an

d

this

reso

lutio

n

seeks

auth

ority to

do so

. The B

oard

will e

xercise th

is pow

er o

nly

in acco

rdan

ce with

the re

quire

ments o

f the C

om

pan

ies

Law

and th

e JSE L

istings R

equire

ments, an

d w

hen, in

view

of m

arket co

nditio

ns p

revailin

g at the tim

e, it b

elie

ves th

at

the e

ffect o

f such

purch

ases w

ill be to

incre

ase earn

ings

per sh

are and is in

the b

est in

tere

sts of th

e share

hold

ers

generally. S

ave to th

e exte

nt p

urch

ased p

ursu

ant to

the

Co

mpan

ies

Law

, an

y sh

ares

purch

ased in

th

is w

ay w

ill

be can

celle

d an

d th

e num

ber o

f share

s in issu

e will b

e

reduce

d acco

rdin

gly.

The C

om

pan

y may h

old

in tre

asury an

y of its o

wn sh

ares

that

it purch

ases

pursu

ant

to th

e C

om

pan

ies

Law

an

d

the au

tho

rity confe

rred b

y this re

solu

tion. T

his give

s the

Co

mpan

y the ab

ility to re

-issue tre

asury sh

ares q

uickly

and

cost-e

ffective

ly an

d

pro

vides

the

Co

mpan

y w

ith

greate

r flexib

ility in th

e man

agem

ent o

f its capital b

ase.

It also

give

s th

e C

om

pan

y th

e o

ppo

rtunity

to

satisfy

award

s under th

e Share A

ward

Plan

usin

g treasu

ry share

s.

Once h

eld

in tre

asury, th

e Co

mpan

y is not e

ntitle

d to

exe

rcise any righ

ts, inclu

din

g the righ

t to atte

nd an

d vo

te

at meetin

gs, in re

spect o

f the sh

ares an

d n

o d

ividend o

r

oth

er d

istributio

n o

f the C

om

pan

y’s assets m

ay be m

ade

to th

e Co

mpan

y in re

spect o

f treasu

ry share

s.

In acco

rdan

ce with

the C

om

pan

ies L

aw, th

is reso

lutio

n sp

ecifie

s

the m

axim

um

num

ber o

f share

s that m

ay be acq

uire

d an

d th

e

max

imum

and m

inim

um

price

s at which

share

s may b

e bo

ugh

t.

If grante

d, th

is auth

ority w

ill expire at th

e conclu

sion o

f the

Co

mpan

y’s next A

nnual G

eneral M

eetin

g, pro

vided th

at it shall

not e

xte

nd b

eyo

nd 12

mo

nth

s from

the d

ate of p

assing o

f this

special re

solu

tion n

um

ber 1.

Ple

ase re

fer

to

the

additio

nal

disclo

sure

of

info

rmatio

n

contain

ed in

th

is no

tice of

Annual

General

Meetin

g, w

hich

disclo

sure is re

quire

d in

term

s of th

e JSE L

istings R

equire

ments.

The

perce

ntage

of

the

votin

g righ

ts re

quire

d

for

special

rights e

xercise

d o

n th

is reso

lutio

n b

y all share

ho

lders p

rese

nt

or re

pre

sente

d b

y pro

xy an

d e

ntitle

d to

vote at th

e Annual

General M

eetin

g.

8. Special resolution num

ber 1

General authority to repurchase shares

“RESO

LVED

T

HA

T

the

Co

mpan

y, an

d

any

of

its

subsid

iaries, b

e auth

orise

d, b

y way o

f a general au

tho

rity,

in te

rms o

f the p

rovisio

ns o

f the JS

E L

istings R

equire

ments,

the C

om

pan

ies L

aw an

d as p

erm

itted b

y the C

om

pan

y’s

Article

s of A

ssociatio

n, to

acquire

, as a general re

purch

ase,

the issu

ed o

rdin

ary share

s of th

e Co

mpan

y, upo

n su

ch

term

s and co

nditio

ns an

d in

such

man

ner as th

e Board

may

from

time to

time d

ete

rmin

e, b

ut su

bje

ct to th

e applicab

le

require

ments o

f the C

om

pan

y’s Article

s of A

ssociatio

n,

the p

rovisio

ns o

f the C

om

pan

ies L

aw an

d th

e JSE L

istings

Require

ments, w

here ap

plicab

le, an

d p

rovid

ed th

at:

i) T

he

max

imum

num

ber

of

ord

inary

share

s to

be

ord

inary sh

ares in

issue at th

e date o

n w

hich

this

special re

solu

tion n

um

ber 1

is passe

d;

ii) T

he re

purch

ase of sh

ares w

ill be e

ffecte

d th

rough

the

ord

er

bo

ok

operate

d

by

the

JSE

tradin

g

system

and d

one w

ithout an

y prio

r understan

din

g

or

arrange

ment

betw

een

the

Co

mpan

y an

d

the

counte

rparty (re

po

rted trad

es are p

rohib

ited);

iii) T

he C

om

pan

y has b

een give

n au

tho

rity to re

purch

ase

its share

s by its A

rticles o

f Asso

ciation;

iv) T

his ge

neral au

tho

rity shall o

nly b

e valid u

ntil th

e

Co

mpan

y’s next A

nnual G

eneral M

eetin

g, pro

vided

that it sh

all not e

xte

nd b

eyo

nd 12

mo

nth

s from

the

date o

f passin

g of th

is special re

solu

tion n

um

ber 1;

v) In

dete

rmin

ing

the

price

at w

hich

th

e C

om

pan

y’s

ord

inary sh

ares are acq

uire

d b

y the C

om

pan

y in te

rms

of th

is general au

tho

rity, the m

axim

um

pre

miu

m at

which

such

ord

inary sh

ares m

ay be acq

uire

d sh

all not

exce

ed th

e high

er o

f:

–

at which

such

ord

inary sh

ares are trad

ed o

n th

e

JSE,

as dete

rmin

ed ove

r th

e five

busin

ess

days

imm

ediate

ly pre

cedin

g the d

ate of th

e repurch

ase

of su

ch o

rdin

ary share

s by th

e Co

mpan

y;

–

the

high

er

of

the

price

quote

d

for

the

last

independent

trade

of,

or

the

high

est

curre

nt

independent b

id fo

r any n

um

ber o

f share

s on th

e

JSE w

here th

e purch

ase is carried o

ut;

vi) A

t an

y poin

t in

tim

e,

the

Co

mpan

y m

ay o

nly

appoin

t one age

nt to

effe

ct any re

purch

ases o

n th

e

Co

mpan

y’s behalf;

vii) A

reso

lutio

n h

as been p

assed b

y the B

oard

confirm

ing

that th

e Board

has au

tho

rised th

e repurch

ase, th

at the

Co

mpan

y satisfied th

e net asse

ts test co

nte

mplate

d

under se

ction 16

9A o

f the C

om

pan

ies L

aw;

viii) The C

om

pan

y may n

ot re

purch

ase ord

inary sh

ares

durin

g a

pro

hib

ited perio

d,

as defin

ed in

th

e JS

E

Listin

gs R

equire

ments,

unle

ss th

e C

om

pan

y has

a

repurch

ase pro

gramm

e in

place

where

the

date

s

and q

uan

tities o

f the o

rdin

ary share

s to b

e traded

durin

g the re

levan

t perio

d are fixe

d an

d n

ot su

bje

ct

to an

y variation an

d fu

ll details o

f the p

rogram

me

have b

een d

isclose

d to

the JS

E in

writin

g prio

r to th

e

com

mence

ment o

f the p

rohib

ited p

erio

d;

ix) A

SE

NS

announce

ment

will

be

publish

ed

giving

such d

etails as m

ay be re

quire

d in te

rms o

f the JSE

Listin

gs Require

ments as so

on as th

e Co

mpan

y has

share

s in issu

e at the d

ate of th

e passin

g of th

is special

of th

e initial n

um

ber o

f share

s acquire

d th

ere

after,

Tharisa plc A

nnual Report 20145

6

Notice of A

nnual General M

eeting (continued)

Ad

ditio

nal

disc

losu

re

req

uire

men

ts in

te

rms

of

the JS

E L

istings R

eq

uire

men

ts

In

com

plian

ce w

ith

the

JSE

Listin

gs R

equire

ments,

the

info

rmatio

n liste

d b

elo

w h

as been in

cluded in

the A

nnual R

epo

rt of w

hich

this n

otice o

f Annual G

eneral M

eetin

g form

s part:

Major shareholders –

refer to p

age 51 o

f the A

nnual R

eport.

Share capital of Tharisa –

refer to p

age 37 o

f the A

nnu

al Rep

ort.

Mate

rial c

han

ges

Oth

er th

an th

e facts and d

eve

lopm

ents re

po

rted o

n in

the

Annual

Repo

rt, th

ere

have

been

no

mate

rial ch

ange

s in

th

e affairs or th

e finan

cial positio

n o

f the C

om

pan

y and its

subsid

iaries sin

ce the d

ate of sign

ature o

f the au

dit re

po

rt and

the d

ate of th

is Notice o

f Annual G

eneral M

eetin

g.

Dire

cto

rs’ resp

on

sibility

state

men

t

The d

irecto

rs, whose n

ames are give

n o

n p

ages 2

4an

d 2

5

of th

is Annual R

epo

rt, colle

ctively an

d in

divid

ually acce

pt fu

ll re

spo

nsib

ility for th

e accuracy o

f the in

form

ation p

ertain

ing to

sp

ecial re

solu

tion n

um

ber 1

and ce

rtify that to

the b

est o

f their

know

ledge

and b

elie

f there

are n

o facts th

at have b

een o

mitte

d

which

would

make an

y statem

ent false

or m

islead

ing, an

d th

at all

reaso

nab

le enquirie

s to

asce

rtain su

ch facts

have

been

mad

e and th

at special re

solu

tion n

um

ber 1

contain

s all such

in

form

ation re

quire

d b

y law an

d th

e JSE L

istings R

equire

ments.

Pro

xie

s

An o

rdin

ary share

hold

er e

ntitle

d to

attend an

d vo

te at the

Annual

General

Meetin

g is

entitle

d to

ap

poin

t a

pro

xy

or

pro

xie

s to atte

nd an

d act in

his/h

er ste

ad. A

pro

xy n

eed n

ot b

e a m

em

ber o

f the C

om

pan

y. For th

e conve

nie

nce o

f registe

red

mem

bers o

f the C

om

pan

y, a form

of p

roxy is attach

ed h

ere

to.

The attach

ed fo

rm o

f pro

xy is o

nly to

be co

mple

ted b

y those

ord

inary sh

arehold

ers w

ho:

hold

ord

inary sh

ares in certificated

form

; or

are record

ed o

n th

e sub-register in

“ow

n n

ame” d

ematerialised

fo

rm.

Ord

inary sh

arehold

ers w

ho h

ave dem

aterialise

d th

eir o

rdin

ary sh

ares

thro

ugh

a

central

secu

rities

deposito

ry particip

ant

(CSD

P) o

r bro

ker o

ther th

an w

ith “o

wn n

ame” re

gistration an

d

who w

ish to

attend th

e Annual G

eneral M

eetin

g, must in

struct

their C

SD

P o

r bro

ker to

pro

vide th

em

with

the re

levan

t lette

r of re

pre

sentatio

n to

attend th

e Annual G

eneral M

eetin

g in

perso

n o

r by p

roxy an

d vo

te. If th

ey d

o n

ot w

ish to

attend in

perso

n o

r by p

roxy, th

ey m

ust p

rovid

e the C

SD

P o

r bro

ker w

ith

their vo

ting in

structio

ns in

term

s of th

eir cu

stody agre

em

ent

ente

red in

to b

etw

een th

em

and th

e CSD

P o

r bro

ker.

Unle

ss share

hold

ers ad

vise their C

SDP o

r bro

ker, in

term

s of

your agre

em

ent, b

y the cu

t-off tim

e stipulate

d th

ere

in, th

at they

wish

to atte

nd th

e Annual G

eneral M

eetin

g or se

nd a p

roxy to

re

pre

sent th

em

, their C

SD

P o

r bro

ker w

ill assum

e that th

ey do

not w

ish to

attend th

e Annual G

eneral M

eetin

g or se

nd a p

roxy.

Share

hold

ers

who are

unsu

re of

their

status

or

the

action

they sh

ould

take, are ad

vised to

consu

lt their C

SD

P, bro

ker o

r fin

ancial ad

visor.

The attach

ed fo

rm o

f pro

xy m

ust b

e exe

cute

d in

term

s of th

e co

mpan

y’s Article

s of A

ssociatio

n an

d in

accord

ance w

ith th

e re

levan

t instru

ctions se

t out o

n th

e form

, and m

ust b

e lodge

d

with

the C

om

pan

y’s transfe

r secre

taries n

ot le

ss than

48 h

ours

befo

re the tim

e set d

ow

n fo

r the A

GM

. If require

d, ad

ditio

nal

form

s of p

roxy m

ay be o

btain

ed fro

m th

e transfe

r secre

taries.

VOT

ING

In acco

rdan

ce with

the C

om

pan

y’s Article

s of A

ssociatio

n, all

reso

lutio

ns p

ut to

a vote at th

e Annual G

eneral M

eetin

g shall

be d

ecid

ed o

n a p

oll. E

very sh

arehold

er o

f the co

mpan

y shall

have o

ne vo

te for e

very sh

are h

eld

in th

e C

om

pan

y by su

ch

share

hold

er.

If you are

in an

y doubt as to

what actio

n yo

u sh

ould

take in

resp

ect o

f the re

solu

tions p

rovid

ed fo

r in th

is notice

, ple

ase co

nsu

lt yo

ur

CSD

P, bro

ker,

ban

ker,

attorn

ey,

accountan

t o

r o

ther p

rofe

ssional ad

visor.

Lo

dgem

en

t of fo

rms o

f pro

xy

Form

s of p

roxy sh

ould

be lo

dge

d w

ith th

e Co

mpan

y’s transfe

r se

cretarie

s, C

om

pute

rshare

Inve

stor

Service

s Pro

prie

tary Lim

ited,

70

Marsh

all Stre

et,

Johan

nesb

urg,

2001,

So

uth

A

frica, o

r poste

d to

th

e C

om

pan

y’s tran

sfer

secre

taries

at PO

Box 610

51, Marsh

alltow

n, 210

7, South

Africa, so

as to b

e re

ceive

d b

y them

by n

o late

r than

11:00 o

n T

uesd

ay, 21 A

pril

2015

in acco

rdan

ce with

clause 9

9 o

f the C

om

pan

y’s Article

s of A

ssociatio

n. A

ny sh

arehold

er w

ho co

mple

tes an

d lo

dge

s a fo

rm o

f pro

xy w

ill neve

rthele

ss be e

ntitle

d to

attend an

d vo

te in

perso

n at th

e Annual G

eneral M

eetin

g.

By o

rder o

f the B

oard

Sanet de W

itt Lysandros Lysandrides

Joint Com

pany Secretary

Joint Com

pany Secretary

South

Africa

Cyp

rus

11 M

arch 2

015

24 and 25 5137

Tharisa plc A

nnual Report 20145

7

OVERVIEWOPERATIONAL REVIEWGOVERNANCE LEADERSHIP REVIEWMINERAL RESOURCE AND MINERAL RESERVE

STATEMENT

ABRIDGED ANNUAL FINANCIAL STATEMENTS

GLOSSARYSHAREHOLDER INFORMATION

Form of proxy

This fo

rm o

f pro

xy re

lates to

the A

nnual G

eneral M

eetin

g of sh

arehold

ers o

f the C

om

pan

y to b

e held

at Office 10

9, First Floo

r, S. P

ittoko

pitis B

usin

ess C

entre

, No 17

Neo

phyto

u N

icolaid

es an

d K

ilkis Street, P

aphos, C

ypru

s on T

hursd

ay, 23 A

pril 2

015 at 11:0

0

(UTC

+3) an

d sh

ould

be co

mple

ted b

y registe

red ce

rtificated sh

arehold

ers an

d sh

arehold

ers w

ho h

ave dem

aterialise

d th

eir sh

ares

with

“ow

n n

ame” re

gistration.

All o

ther d

em

aterialise

d sh

arehold

ers h

old

ing sh

ares o

ther th

an w

ith “o

wn n

ame” re

gistration w

ho w

ish to

attend th

e Annual

General M

eetin

g must in

form

their C

SD

P o

r bro

ker o

f their in

tentio

n to

attend th

e Annual G

eneral M

eetin

g and re

quest th

eir C

SD

P

or b

roke

r to issu

e them

with

the re

levan

t lette

r of re

pre

sentatio

n to

attend th

e Annual G

eneral M

eetin

g in p

erso

n o

r by p

roxy

and vo

te. S

hare

hold

ers w

ho d

o n

ot w

ish to

attend th

e A

nnual G

eneral M

eetin

g in p

erso

n o

r by p

roxy, m

ust p

rovid

e th

eir C

SD

P o

r bro

ker w

ith th

eir vo

ting in

structio

ns in

term

s of th

e rele

vant cu

stody agre

em

ent e

nte

red in

to b

etw

een th

em

and th

e CSD

P o

r bro

ker.

These sh

areho

lders m

ust n

ot co

mple

te this fo

rm o

f pro

xy.

This fo

rm o

f pro

xy sh

ould

be re

ad w

ith th

e Notice o

f Annual G

eneral M

eetin

g. Ple

ase prin

t clearly an

d re

fer to

the n

ote

s at the e

nd

of th

is form

for an

explan

ation o

n th

e use o

f this fo

rm o

f pro

xy an

d th

e rights o

f the sh

arehold

er an

d th

e pro

xy.

I/We

of (ad

dre

ss)

bein

g the h

old

er(s) o

f T

harisa sh

ares, h

ere

by ap

poin

t (see n

ote

s 1 an

d 2):

1.of

or failin

g him

/her

2.

of

or failin

g him

/her

3. th

e Chairm

an o

f the A

nnual G

eneral M

eetin

g, as my/o

ur p

roxy to

act for m

e/u

s and o

n m

y/our b

ehalf at th

e Annual G

eneral

Meetin

g which

will b

e held

for th

e purp

ose o

f consid

erin

g and, if d

eem

ed fit, p

assing, w

ith o

r with

out m

odificatio

n, th

e reso

lutio

ns

to b

e pro

pose

d th

ere

at and at an

y adjo

urn

ment th

ere

of; an

d to

vote fo

r and/o

r against th

e re

solu

tions an

d/o

r abstain

from

votin

g in

resp

ect o

f the T

harisa sh

ares re

gistere

d in

my/o

ur n

ame(s), in

accord

ance w

ith th

e follo

win

g instru

ctions (se

e note 3

):

ForA

gainstA

bstainO

rdinary businessO

rdin

ary reso

lutio

n 1

is no

n-b

indin

g and d

oes n

ot re

quire a m

inim

um

thre

shold

of th

e vo

tes e

xercise

d in

resp

ect o

f each

reso

lutio

n to

be ad

opte

d

Ord

inary re

solu

tion n

um

ber 1: A

do

ptio

n o

f annual fin

ancial state

ments

Ord

inary re

solu

tion n

um

ber 2

: Re-ap

po

intm

ent o

f KPM

G

Ord

inary re

solu

tion n

um

ber 3

.1: Re-e

lectio

n o

f Om

ar Marw

an K

amal as a d

irecto

r

Ord

inary re

solu

tion n

um

ber 3

.2: R

e-e

lectio

n o

f Brian

Chi M

ing C

heng as a d

irecto

r

Ord

inary re

solu

tion n

um

ber 3

.3: R

e-e

lectio

n o

f Ioan

nis D

rapan

iotis as a d

irecto

r

Ord

inary re

solu

tion n

um

ber 3

.4: R

e-e

lectio

n o

f John D

avid S

alter as a d

irecto

r

Ord

inary re

solu

tion n

um

ber 3

.5: R

e-e

lectio

n o

f Anto

nio

s Djako

uris as a d

irecto

r

Special business

of th

e vote

s exe

rcised in

resp

ect o

f each

reso

lutio

n to

be ad

opte

d

Ord

inary re

solu

tion 7

is no

n-b

indin

g and d

oes n

ot re

quire a m

inim

um

thre

shold

Ord

inary re

solu

tion n

um

ber 4

: Co

ntro

l of au

tho

rised b

ut u

nissu

ed sh

ares

Ord

inary re

solu

tion n

um

ber 5

: Dis-ap

plicatio

n o

f pre

-em

ptive righ

ts

Ord

inary re

solu

tion n

um

ber 6

: General au

tho

rity to issu

e share

s for cash

Ord

inary re

solu

tion n

um

ber 7: A

ppro

val, thro

ugh

a no

n-b

indin

g adviso

ry vote

, of th

e

group re

muneratio

n p

olicy

Special re

solu

tion n

um

ber 1: G

eneral au

tho

rity to re

purch

ase share

s

Ple

ase indicate w

ith an

“X” in

the sp

ace p

rovid

ed ab

ove

how

you w

ish yo

ur vo

tes to

be cast.

Sign

ed at

on

2015

Sign

ature

Assiste

d b

y (if applicab

le) (see n

ote 7

)

TH

AR

ISA PLC

(Inco

rporate

d in

the R

epublic o

f Cyp

rus w

ith lim

ited liab

ility)(R

egistratio

n n

um

ber: H

E223412)

JSE sh

are code: T

HA

ISIN: C

Y0103

562118

(“Tharisa” o

r “the C

om

pany”)

plc

Tharisa plc A

nnual Report 20145

8

Notes to the form

of proxy

1. A

registe

red sh

arehold

er m

ay appoin

t an in

divid

ual as a

pro

xy, in

cludin

g an in

divid

ual w

ho is n

ot a sh

areho

lder

of th

e C

om

pan

y, to p

articipate

in, sp

eak an

d vo

te at a

share

hold

ers’ m

eetin

g on h

is/her b

ehalf. S

hould

this sp

ace

be le

ft blan

k, the p

roxy w

ill be e

xercise

d b

y the ch

airman

of th

e meetin

g.

2.

The p

erso

n w

hose n

ame ap

pears first o

n th

e form

of

pro

xy an

d w

ho is p

rese

nt at th

e Annual G

eneral M

eetin

g

will b

e entitle

d to

act as pro

xy to

the e

xclu

sion o

f those

whose

nam

es fo

llow

.

3.

A p

roxy m

ay dele

gate his/h

er au

tho

rity to act o

n yo

ur

behalf to

anoth

er p

erso

n, su

bje

ct to an

y restrictio

n se

t out

in th

is pro

xy fo

rm.

4.

A

share

hold

er’s

instru

ctions

to

the

pro

xy

must

be

indicate

d b

y the in

sertio

n o

f an “X

”, or th

e num

ber o

f

vote

s exe

rcisable b

y that sh

arehold

er, in

the ap

pro

priate

box p

rovid

ed. T

he p

roxy is e

ntitle

d to

exe

rcise, o

r abstain

from

exe

rcising, an

y votin

g right o

f the sh

arehold

er at th

e

Annual G

eneral M

eetin

g, but o

nly as d

irecte

d o

n th

is form

of p

roxy.

5.

If there is n

o cle

ar indicatio

n as to

the vo

ting in

structio

ns to

the p

roxy, th

e fo

rm o

f pro

xy w

ill be d

eem

ed to

auth

orise

the p

roxy to

vote o

r to ab

stain fro

m vo

ting at th

e A

nnual

General M

eetin

g as he/sh

e deem

s fit in re

spect o

f all the

share

hold

er’s vo

tes e

xercisab

le there

at.

6.

To b

e valid an

d co

unte

d, th

e com

ple

ted fo

rm o

f pro

xy

must

be

lodge

d

with

th

e tran

sfer

secre

taries

of

the

Co

mpan

y, nam

ely

Co

mpute

rshare

Inve

stor

Service

s

Pro

prie

tary Lim

ited,

70

Marsh

all Stre

et,

Johan

nesb

urg,

South

Africa, o

r poste

d to

PO

Box 610

51, Marsh

alltow

n,

2107,

South

A

frica, to

re

ach

them

by

no

later

than

11:00 o

n Tuesd

ay, 21

A

pril

2015

, bein

g no late

r th

an

48 h

ours

befo

re th

e A

nnual

General

Meetin

g to

be

held

at 11:00 o

n T

hursd

ay, 23 A

pril 2

015, p

rovid

ed th

at

the

chairm

an of

the

Annual

General

Meetin

g m

ay, in

his

discre

tion,

accept

pro

xie

s th

at have

been delive

red

after th

e expiry o

f the afo

rem

entio

ned p

erio

d u

p to

and

until th

e time o

f com

mence

ment o

f the A

nnual G

eneral

Meetin

g, at his so

le discre

tion.

7. T

his

form

of

pro

xy

must

be

date

d an

d sign

ed by

the

share

hold

er ap

poin

ting th

e pro

xy. T

he co

mple

tion o

f blan

k

space

s do

es n

ot h

ave to b

e initialle

d, b

ut an

y alteratio

n o

r

corre

ction m

ade to

this fo

rm o

f pro

xy m

ust b

e initialle

d

by

the

signato

ry/ies.

A m

ino

r m

ust

be

assisted by

his/

her

pare

nt

or

guard

ian unle

ss th

e re

levan

t do

cum

ents

estab

lishin

g his/h

er le

gal capacity are p

roduce

d o

r have

been re

gistere

d b

y the C

om

pan

y.

8.

Do

cum

entary

evid

ence

estab

lishin

g th

e au

tho

rity of

a perso

n sign

ing th

is form

of p

roxy in

a repre

sentative

capacity m

ust b

e attached to

this fo

rm o

f pro

xy u

nle

ss

pre

viously

reco

rded

by

the

Co

mpan

y o

r w

aived

by

the

chairm

an of

the

Annual

General

Meetin

g. C

SD

Ps

or

bro

kers

registe

red

in

the

Co

mpan

y’s su

b-re

gister

votin

g on in

structio

ns fro

m b

eneficial o

wners o

f share

s

registe

red in

the C

om

pan

y’s sub-re

gister, are re

queste

d to

identify th

e b

eneficial o

wner in

the su

b-re

gister o

n w

hose

behalf th

ey are vo

ting an

d re

turn

a copy o

f the in

structio

n

from

such

ow

ner to

the C

om

pan

y’s transfe

r secre

taries,

toge

ther w

ith th

is form

of p

roxy.

9. T

he ch

airman

of th

e meetin

g shall b

e entitle

d to

declin

e

or acce

pt th

e auth

ority o

f a perso

n sign

ing th

e form

under

a Pow

er o

f Atto

rney o

r on b

ehalf o

f a com

pan

y, unle

ss

his/h

er P

ow

er o

f Atto

rney is d

eposite

d at th

e Co

mpan

y’s

transfe

r secre

taries n

ot late

r than

48 h

ours b

efo

re the

meetin

g.

10.

The ap

poin

tment o

f the p

roxy o

r pro

xie

s will b

e susp

ended

at any tim

e to th

e e

xte

nt th

at the sh

arehold

er ch

oose

s to

act dire

ctly and in

perso

n in

the e

xercise o

f any o

f his/h

er

rights as a sh

arehold

er at th

e Annual G

eneral M

eetin

g.

11. T

he

appoin

tment

of

the

pro

xy

is re

vocab

le unle

ss

expre

ssly state

d

oth

erw

ise in

th

is fo

rm

of

pro

xy.

The p

roxy ap

poin

tment m

ay be re

voke

d b

y cance

lling it

in w

riting, o

r makin

g a later in

consiste

nt ap

poin

tment o

f a

pro

xy an

d d

elive

ring a co

py o

f the re

vocatio

n in

strum

ent

to th

e pro

xy an

d to

the C

om

pan

y’s transfe

r secre

taries.

Ple

ase note

the

revo

cation

of

a pro

xy

appoin

tment

constitu

tes

a co

mple

te an

d

final

cance

llation

of

the

pro

xy’s au

tho

rity to act o

n b

ehalf o

f the sh

arehold

er, as o

f

the d

ate stated in

the re

vocatio

n in

strum

ent, if an

y, or th

e

date o

n w

hich

the re

vocatio

n in

strum

ent w

as delive

red

to

the

Co

mpan

y’s tran

sfer

secre

taries

and

the

pro

xy,

as afore

said.

12.

The ap

poin

tment o

f the p

roxy re

main

s valid o

nly u

ntil th

e

end o

f the A

nnual G

eneral M

eetin

g or an

y adjo

urn

ment

or

postp

onem

ent

there

of,

unle

ss it

is re

voke

d by

the

share

hold

er b

efo

re then o

n th

e basis se

t out ab

ove

.

Tharisa plc A

nnual Report 20145

9

Notes

Tharisa plc A

nnual Report 20146

0

Notes

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