Trading statement in respect of the six month period ended 31 December 2016

In terms of paragraph 3.4(b) of the Listings Requirements of the JSE Limited (the JSE), a listed company is required to publish a trading statement as soon as it is satisfied that a reasonable degree of certainty exists that the financial results for the period to be reported on next will differ by at least 20% from those of the previous corresponding period.

ARM’s headline earnings for the six months ended 31 December 2016 (1H F2017) were positively impacted by an increase in average US Dollar commodity prices for most of the commodities which ARM produces in comparison to the average US Dollar prices achieved during the previous corresponding period ended 31 December 2015 (1H F2016). Most operations, except Goedgevonden Coal Mine (GGV) and Nkomati Nickel Mine (Nkomati), achieved unit cost increases below inflation. Sales volumes for Nkomati were lower than those in 1H F2016 as a result of production challenges at the operation.

Accordingly, ARM announces that headline earnings per share for 1H F2017 are expected to increase by between 272% and 288% compared to 1H F2016 to between 867 cents and 903 cents based on weighted average number of shares in issue of 189 529 000 (1H F2016: 217 550 000). The decrease in the weighted average number of shares in issue at 31 December 2016 in comparison to 31  December 2015, results from the restructuring of the ARM Broad- Based Economic Empowerment Trust as more fully explained in the announcement issued by ARM on the Stock Exchange News Service of the JSE on 19 August 2016.

Headline earnings reported for 1H F2016 were R507 million, while headline earnings per share were 233 cents.

ARM’s 1H F2017 basic earnings were negatively impacted mainly by (i) an attributable impairment of the Nkomati assets of R711 million after tax, (ii) an attributable impairment of the Modikwa Platinum Mine assets of R734 million after tax and non- controlling interest and (iii) an attributable impairment loss on investment of R422 million within the Assmang Joint Venture related to the sale of Dwarsrivier. The basic loss per share for 1H F2017 is expected to improve by between 69% and 75% to a basic loss per share of between 115 cents and 140 cents.

The basic loss reported for 1H F2016 was R996 million, while the basic loss per share was 458 cents.

The financial information on which this trading statement is based has neither been reviewed nor reported on by the external auditors of ARM.

The Company’s 1H F2017 interim financial results will be released on 16 March 2017.

For all information please contact:

Stompie Shiels
Executive: Business Development
Tel: +27 11 779 1300
E-mail: stompie.shiels@arm.co.za

Sandton
7 March 2017

Sponsor: Deutsche Securities (SA) (Proprietary) Limited