Modifying factors

Mineral Reserves are that portion of the Mineral Resource, which technical and economic studies have demonstrated can justify extraction at the time of disclosure.

Mineral Reserves for the South Africa Region operations are estimated using a total cost paylimit/cut-off grade, historical mining efficiencies, cost levels at each operation and the current Life of Mine plan. The conversion ratio from Mineral Resource to Mineral Reserve in the South Africa Region is affected by the following key factors:

• The exclusion from Mineral Reserves of regional support pillars and safety pillars as designed into the current mine plan.
• Mining constraints applied to the extraction, based on the geometry of the geological structures as presently interpreted.

Mineral Reserves for West Africa are estimated using mine designs generated after standard mine optimisation methods, current cost structures and technical assumptions derived from actual production history and/or feasibility studies.

Mineral Reserve parameters for the Australasia Region vary on a mining project by project basis, and reflect specific cost structures and technical assumptions derived from actual production history or extensive feasibility work.

Cerro Corona’s Mineral Reserves are limited by the finite capacity of the Tailing Storage Facility. The Net Smelter Return cut-off calculation takes account of all cost and technical parameters.

Mineral Reserve tonnages and grade include allowances for mining dilution and mining factors, and consequently are reported as tons and grade delivered to the processing facility.

Rounding-off of figures in this report may result in minor computational discrepancies. Where this occurs it is not deemed significant.

Caution should be exercised when interpreting the grade tonnage curves within the Technical Short Form Reports. The ability to high-grade (selectively mine) the deposits may be precluded by the deposit geometry, mining method and the need for practical development of the orebody. All references to tons are metric units.

Operations are entitled to mine all declared material located within their respective mineral rights and/or mining rights and all necessary statutory mining authorisations and permits are in place or have reasonable expectation of being granted. The exception being at Damang, where the underground rights to Abosso below 30 m are currently held by Tarkwa.