HEALTH, SAFETY AND ENVIRONMENT POLICY …

1 Keaton Energy Holdings Limited health , SAFETY AND ENVIRONMENT POLICY STATEMENT Keaton Energy Holdings Limited is a coal exploration, development and mining company, which has been created to pursue opportunities arising from a combination of an increased market demand for coal and the changed mineral rights dispensation in South Africa. The objective of the company is achieved through its subsidiary companies which are actively pursuing mining and prospecting activities in various geographical areas. Keaton Energy believes that all injuries, occupational illnesses and diseases are preventable and care of its people and the ENVIRONMENT are an integral and vital part of doing business. To this end the company is committed to: 1. providing a safe and healthy work place and to allow its employees to perform their tasks to their maximum potential, safely and efficiently.

2 2. protecting the ENVIRONMENT by minimizing any negative impact on it. 3. complying with all laws, regulations and standards. 4. setting objectives and targets and monitoring and reviewing performance in the area of occupational health , SAFETY and ENVIRONMENT . To achieve the objectives set out above the company will establish an occupational health and SAFETY POLICY , an ENVIRONMENT POLICY and standards for its operations and will continue to address hazard control, accident prevention, training and employee participation in all aspects of its operations. Consequently the management in all areas of the business shall: 1. plan, implement and monitor a comprehensive occupational health , SAFETY and ENVIRONMENT program to meet its duty of care and will strive to ensure continual improvement, wherever possible. 2. take prompt and effective action to maintain a healthy and safe workplace and will take care of the ENVIRONMENT .

3 3. promote a culture of communication and involvement of all employees and interested parties in occupational health , SAFETY and the ENVIRONMENT as a normal component of its work. The company acknowledges that the issue of health , SAFETY and the ENVIRONMENT is a joint responsibility with its employees, contractors and all persons with whom it interacts and accordingly requires such persons to share the responsibility to; 1. work in a healthy ENVIRONMENT . 2. promptly report any incident regardless of the severity or otherwise thereof and any unsafe practice or condition that occurs or becomes apparent. 3. actively participate in the support and promotion of occupational health , SAFETY and the ENVIRONMENT in the work place. PBM Miller Managing Director