KUMBA IRON ORE - Anglo American

1 About this reviewThis review serves as an introduction to our Annual Financial Statements and should be read with it. A seperate Sustainable Development Report is produced, which, together with this review and Annual Financial Statements, comprise our Annual Report. By reading all three of these documents, the reader will be provided with a comprehensive understanding of the results and state of affairs of the KUMBA IRON OREC over: At KUMBA s new Kolomela Mine, the pit is starting to emerge as waste is moved to expose the ore body. In 2009, of waste material was moved as the mine prepares for first production in 2012 and full production of 9 Mtpa in 2013.

2 The mine is on schedule and on budget and will produce direct-shipping ore for PERFORMANCE REVIEW OPERATIONAL REVIEW RESOURCES AND RESERVES SUSTAINABLE DEVELOPMENT REVIEW CONTENTSS ishen Mine s custom-built new haul trucks come with a host of unique safety features. These include safety bumpers, something not normally seen on these giants. The new model was developed jointly over a five year period by the supplier and KUMBA . The unique design incorporates a pantograph support structure that is fully integrated into the chassis, an automatic anti-rollback feature and an improved braking system comprising combined electric braking and wet disc brakes.

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4 We strive to achieve Zero Harm throughout the group and this year managed to deliver an exceptional improvement in our safety performance. Only 10 lost-time injuries were recorded. Thabazimbi Mine completed its second year without a single lost-time injury; in 2009 both Sishen Mine and Thabazimbi Mine were fatality free the whole year, in the case of Sishen Mine, for the first time in five years; and Kolomela Mine has achieved 4,3 million lost-time injury free man-hours to this improvement, tragically we suffered one fatality when Tebogo David Marope, a 23-year old contractor of Concor.

5 Was fatally injured during road construction at Kolomela Mine in January by42% to INJURY FREQUENCY RATEF atality free during 2009for the first time in five yearsSISHEN MINELT I f re e for the lasttwo yearsTHABAZIMBI MINE14 m o n t h s LT I f r e eKOLOMELA MINEOVERVIEWLTIFR20022003200420052006200 720082009* * * * * * * *PAGE 3 Industrial Development Corporation 26% BEE ownershipExxaro Resources Limited SIOC Community Development SPV SIOC Employee Share Participation Scheme (Envision) Sishen Iron Ore CompanyOperationss 3 ISHEN -INEs 4 HABAZIMBI -INEs +OLOMELA -INEs 3 ALDANHA 0 ORT /PERATIONSG roup structureKumba Iron Ore Anglo American plc group Minorities OVERVIEW !

6 " #$! "Saldanha Bay PortSishen Mines !NNUAL PRODUCTION (2009)s ,IFE OF MINE YEARSs /RE RESERVES -TThabazimbi Mines !NNUAL PRODUCTION (2009)s ,IFE OF MINE YEARSs /RE RESERVES -TKolomela Mines &ULL PRODUCTION 9 Mtpas ,IFE OF MINE YEARSs /RE RESERVES -TIron Ore Marketing and Logistics officess ,UXEMBOURGs #HINA (ONG +ONG s 3 OUTH !FRICAK olomela MineSishen MineThabazimbi MineCorporate OfficeLocality mapPAGE 5 OVERVIEW % # & $! $ ! '( ) -#OM $#OM HC ,AZARUS :IM IS THE CHAIRMAN OF -VELAPHANDA Resources, Northern Platinum and Afripalm 2 ESOURCES 0 REVIOUSLY ,AZARUS WAS CHIEF EXECUTIVE of Anglo American South Africa and managing director of MTN International.)

7 *+, $ , $-. , $ -, / 0 $1 , ,2345 "%NG -INING (ONS 0R %NG #HRIS WAS PREVIOUSLY THE EXECUTIVE HEAD OF JOINT VENTURES FOR !NGLO 0 LATINUM ,IMITED #HRIS HAS OVER YEARS OF MINE MANAGEMENT EXPERIENCE (E WAS PREVIOUSLY GENERAL MANAGER OF !NGLO Platinum s Amandebult Platinum Mine and Bafokeng Rasimone Platinum Mine. % 6$ 0 7 , $ -,. 0$ , ,2385 "#OM #4! #! 3! 6 INCENT HAS YEARS EXPERIENCE IN CORPORATE finance, many of these gained with the Anglo American plc group where he was involved IN A NUMBER OF DIVERSE AND COMPLEX LOCAL AND international transactions.(% $ $ 9 !:: / 0 $1 ;$ 0 ' ) "#OM ,," ($IP 4AX ,AW 0 HILIP WAS CHIEF EXECUTIVE OFlCER OF !)))

8 NGLO American s Ferrous Metals and Industries DIVISION (E WAS A MEMBER OF !NGLO !MERICAN PLC S EXECUTIVE COMMITTEE /THER DIRECTORSHIPS INCLUDE -INAS 2)/ 4 ONGAAT (ULETT (ULAMIN AND Samancor Manganese. % " < ; ; / 0 $1 ;$ 0 '= ) BSc, BEng (Elect), Pr Eng !LLEN IS A NON EXECUTIVE DIRECTOR OF %SKOM (OLDINGS AND SERVED AS THE %SKOM CHIEF EXECUTIVE BETWEEN AND (E PREVIOUSLY SERVED AS the chairman of KUMBA / 0 $1 ;$ 0 ' ) "#OM ,AW "#OM (ONS #! 3! &#-! Gert is the chief financial officer and alternate DIRECTOR OF THE )NDUSTRIAL $EVELOPMENT #ORPORATION (E IS ALSO A DIRECTOR OF (ERNIC &ERROCHROME !))))

9 LGORAX and Umicore Autocat South Africa.>% ? @ A" < ; ; / 0 $1 ;$ 0 ' ) "0 ROC ,," ($IP 4AX ,AW $OLLY IS AN EXECUTIVE DIRECTOR OF THE 0 EOTONA GROUP 3HE IS CHAIRMAN OF %$) (OLDINGS AND deputy chairman of the National Energy Regulator of South Africa (NERSA). She also holds several other corporate directorships. She was the CHIEF EXECUTIVE OFlCER OF 3 POORNET AND MANAGING director of transmission at +, , < ; ; / 0 $1 ;$ 0 ' B) "3C (ONS 0 OLITICAL 3 CIENCE Masters (Southern African Studies) 0 ETER IS CHIEF EXECUTIVE OFlCER OF 4 IGER "RANDS (E was chief strategy and business development director IN THE 6 ODACOM 'ROUP (IS PREVIOUS POSITIONS INCLUDE commercial director of Vodacom South Africa, and CHIEF EXECUTIVE OFlCER OF THE 3!))

10 "# % $ 9 < ; ; / 0 $1 ;$ 0 '(=) "!CC #! 3! :ARINA IS THE CHIEF EXECUTIVE OFlCER OF :ARINA Bassa Investments and serves as a director on a number of private and public institutions. She WAS PREVIOUSLY AN EXECUTIVE DIRECTOR AT !BSA "ANK AND A MEMBER OF THE !BSA 'ROUP EXECUTIVE committee, with accountability for Private Banking and Retail Banking Services. She has previously also served as the vice chairman of Absa Retail Bank. 0 RIOR TO JOINING !BSA SHE SPENT YEARS WITH %RNST 9 OUNG AND WAS APPOINTED A PARTNER IN A @ :C:: ' D ), < ; ; , E / 0 $1 ,;$ 0 ,2485 PhD (Physics), MBA.