ATLATSA RESOURCES CORPORATION

ATL AT S A R ES OU R CE S CORPORATION

Well positioned for a market turnaround www.atlatsaresources.co.za

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TARGET 2020 STEADY-STATE Production Increase

Atlatsa Resources Corporation is striving for mid-tier PGM production status as part of its ongoing ramp-up phase in South Africa Writer: Matthew Staff Project Manager: Arron Rampling tlatsa Resources Corporation is well on its way to achieving its mission of becoming a significant mine-tomarket platinum group metals (PGM) company in South Africa as it carefully, yet proactively, positions itself for an expected market turnaround in the coming years.

The Company’s focus revolves around a 2020 production target with ramping-up phases and diversification within its operations being carried out at present with that goal in mind.

Known purely as Atlatsa – previously, Anooraq Resources Corporation – the black economic empowered (BEE) business was incorporated in the Province of British Colombia, in Canada, before later combining its PGM assets with those of Atlatsa Holdings, a private 100

percent BEE South African company.

This combination affected a reverse takeover of Atlatsa under Toronto Stock Exchange rules, with the latter now holding 62 percent of the company.

Chief Executive Officer, Harold Motaung, picks up: “In 2007, Atlatsa announced a major BEE transaction with Anglo American Platinum Limited (Anglo Platinum) pursuant to which the two entities combined their PGM joint venture interests under a new group structure, the Bokoni Group.

“The transaction was completed in July, 2009, under which Atlatsa acquired 51 percent of the Bokoni Platinum Mine (formerly Lebowa Platinum Mine) and took operational control of the mine.”

The resultant structure has gone from strength to strength since then and now controls one of the last remaining significant high-quality PGM resources in the country; located on the Bushveld Igneous Complex (BIC) of South Africa.

Bokoni stages

The BIC is the world’s largest platinum deposit, producing in excess of 75 percent of the globe’s supply and comprising a Western, Eastern and Northern Limb consisting of predominantly Merensky, UG2 and

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Platreef minerals.

In Atlatsa’s case, mining operations are carried out across the Eastern Limb at the Bokoni Platinum Mine, since taking control of the site six years ago.

“Atlatsa is the controlling shareholder of the Bokoni Mine, and it was the first operating asset that generated revenue for Atlatsa,” Motaung explains. “The mining of PGMs is done by the Atlatsa team with the sale of the metal-in-concentrate sold to Anglo Platinum for smelting and refining.

“Regular interaction takes place between the two joint venture partners through corporate governance structures such as the Bokoni joint operational committee,” The four-shaft Bokoni Mine complex currently produces 194,000 PGM ounces per annum, with the site consisting of a 154 million ounce resource base, a 12 million ounce reserve base and a 37-year lifecycle.

Before the real fruits of this resource base are unearthed though, Atlatsa is firmly focused on its extensive ramp-up phase, comprising two replacement, new generation and cost-effective decline shaft systems; complimenting its opencast Merensky mining operation to build a presence both over and underground.

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THEO PEGRAM & ASSOCIATES

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heo Pegram & Associates (Pty) Ltd is a mining consulting company which was founded in October 2009 by Theodore Pegram, a geologist with 27 years’ experience in the South African mining industry. The company offers extensive experience including PGM’s and chromite of the Bushveld Complex, Witwatersrand gold, iron ore, coal and alluvial diamonds. International commodities include Alpine chromite and poly-metallic lead-zinc-silver complexes, haematitic iron ore, copper as well as lode gold deposits. To date we have serviced a wide range of opportunities across the commodity spectrum in 7 countries for more than 20 different clients.

Firmly focused on its extensive ramp-up phase

The four-shaft Bokoni Mine complex currently produces 194,000 PGM ounces per annum, with the site consisting of a 154 million ounce resource base, a 12 million ounce reserve base and a 37-year lifecycle

Theo Pegram & Associates (Pty) Ltd are bound and driven by our Values, which include • Integrity, • Professionalism, • Trust, • Timeous delivery, and • Provision of proactive guidance to the benefit of the client Theo Pegram & Associates’ ascendancy is marked by the systematic expansion of their staff complement to 48. Our key focus areas include: • Outsourced Mine Technical Services (Geology, Survey, Sampling, Rock engineering, Ventilation, Mine Planning • Geological orebody modelling & Mineral Resource Estimation • Exploration • Project studies & -evaluation • Database management • Governance – technical audits, Competent person’s reviews & reports We are committed to forging a new paradigm in favour of outsourced technical services and offer professional capacity and skills to the benefit of our clients as a cost effective set of turnkey solutions.

www.pegramconsult.co.za

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The Sky is the Limit

The Sky is the Limit

Partnership through Integrity

Tel: +27 11 958 0161 Fax: +27 86 538 2017 info@pegramconsult.co.za www.pegramconsult.co.za

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The Company continues: “Stage One (2009-2014) comprised a capital investment of $200 million to expand the Merensky and UG2 4E PGM production to approximately 200,000 ounces per annum. The underground Merensky and UG2 operations achieved 140,000tpm of production in 2014 and the opencast Merensky operation continued to fill the mill gap of installed processing capacity of 160,000tpm and will continue to be managed of a flexible volume basis.

“Stage Two (2015 onwards) contemplates further expansion at a capital investment of approximately $100 million to achieve an annual production rate of 250,000 4E PGM ounces.

“Both the Stage One and Stage Two expansions at Bokoni are intended to access the Merensky and UG2 reefs from near surface to approximately 650 metres below surface. This presents a key technical and cost advantage, as there would be no need for significant refrigeration at these mining depths.”

This transformation and ramping-up phase will not only enhance Atlatsa’s status from junior to mid-tier PGM production status but will also facilitate the creation of an entirely new business culture at the mine through, not only the increased production, but also reduced costs and a more disciplined approach to orebody management and grade control.

Motaung emphasises: “Bokoni Mine remains an operation in development with its key Brakfontein Merensky and Middelpunt Hill UG2 development shafts remaining in their ramp-up phase, and on target to achieve steadystate production by 2020.”

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THARI MINERALS PROCESSING SERVICES

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hari Minerals Processing Services was founded with a view to utilizing various skills and experience and form partnerships with the private and public sectors to help reduce unemployment, poverty, illiteracy and crime. As a consequence of this, it will encourage societies to become cleaner and more environmentally aware.

With our various services, we are aiming to create jobs and growth, helping to contribute to the development of our people.

Bokoni Mine remains an operation in development

Our mission is to render construction related services with excellence and quality workmanship. Thari Minerals employ dedicated and skilled staff members that provide excellent customer service and delivery turnover, therefore maintaining our client relationships, both past and present.

About Kgoroshi Donald Makgopa Chairperson

The Bokoni Mine achieved its highest production volume since 2006 with a 14 percent increase in total tonnes milled and 4E PGM ounces in 2014, from the 2013 financial year

Mr Makgopa’s role within the business is to ensure that all records are kept, all financial activities are documented, and that the business is registered with all relevant bodies and databases. He is also responsible for ensuring that all board and management responsibilities are met.

With experience in conveyor belt operation and maintenance in the Bokoni Platinum mine, he is well placed to lead the company forward.

Address Stand Number 78B. Ga-Selepe Villiage, Mashemong Section, atok 0749, PO Box 313, Atok 0749

Positive trajectory

Atlatsa revenue is derived from its PGM production – both Mersnsky and UG2 ore - at the Bokoni Mine, through the sale of metal-in-concentrate to Anglo Platinum, via a dedicated

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T 076 632 9165 062 047 9366 073 293 0833 E kgoroshi111@gmail.com

SAFETY IS OUR PRIORITY

Thari Minerals Processing Services > Operation and maintenance of conveyor belts (including cleaning) > Feeder installation > Splicing, belt training or alignment and belt extensions Tel: 076 632 9165 | 062 0479366 | 073 293 0833 Email: kgoroshi111@gmail.com Stand Number 78B, Ga-Selepe Village, Mashemong Section, Atok 0749, PO Box 313, Atok 0749

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concentrate sale agreement.

While the company is still officially in a ramping-up phase to fully optimise the vast resource base, recent years have seen an early market pick-up in terms of production volumes, as Motaung reflects: “The Bokoni Mine achieved its highest production volume since 2006 with a 14 percent increase in total tonnes milled and 4E PGM ounces in 2014, from the 2013 financial year.

“The mine achieved its 160,000 tonnes per month (tpm) of concentrator milling capacity in 2014 so there is a positive PGM production trajectory.”

The well-developed sunken infrastructure of the Bokoni Mine, incorporating the development of the two new generation shafts, is expected to ensure a total steady-state production of 160,000tpm by 2020.

“Capital investments on these two shafts will cost approximately CAD$110 million in the next six years,” the CEO adds.

Increased scale of operations

As well as a fast-evolving mining

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company, Atlatsa is also keen to explore opportunities in the exploration space in the BIC region, incorporating a 2002 agreement with Rustenberg Platinum Mines to acquire up to an 80 percent interest in 12 PGM properties located on the northern limb of the BIC. The Company is subsequently investigating opportunities on these properties, including those of Kwanda, Central Block and Rietfontein, as Motaung notes: “As a small operator, the focus is on expansion development to increase the scale of the operations such that majority of fixed costs are absorbed and the mine moves down the cost curve graph.

“This will hopefully see an evolution of Atlatsa from a junior to a mid-tier PGM producer.”

Effectively owning 51 percent of the Kwanda Projects, a previously Bokoni Holdco-owned operation, Atlatsa is consequently in the process of sharing information and conducting exploration activities in the area; leveraging the knowledge of the wider BIC area and its already significant progress occurring in the Eastern Limb.

HLABIRWA JV

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LABIRWA JV is an emerging 100% black owned company and was born out of a jointventure transaction between Ranmak Consulting and Hlabirwa Mining Services Ltd. The company brings to bear their in-depth knowledge of the mining, finance and IT industries, and a broad range of skills gained from more than 14 years’ experience working in different prominent mining & IT portfolio companies in South Africa, Botswana, DRC and Zambia.

HLABIRWA JV offers mining services in the areas of underground stoping and development, vamping/sweeping, stope equipping & conveyor belt operations.

The company is able to deliver a complete service to meet, manage and deliver on the full spectrum of mining requirements for projects of any scale.

As a result of the company’s broad experience, HLABIRWA JV is able to provide services in a range of disciplines accurately and diligently to deliver on time while ensuring compliance with relevant norms.

About Malope Selepe (Mr) The founder and chairman of the company, Mr Selepe started his mining career in 1995 as a learner official. He has been involved with the management and production of mining operations throughout Africa in both production and project capacities. He has established & successfully managed Hlabirwa Mining Services (Pty) Ltd to full operation at Bokoni Platinum Mine.

T 079 807 8310 079 562 5896 E selepemalope@gmail.com

www.hlabirwa.co.za

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HLABIRWA JV has the ability to meet a broad scope of project requirements and is therefore able to deliver a spectrum of mining services to its clients.

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Development and Stoping Equipping, Construction Conveyor Belt maintenance Vamping of historic ore Reclamation Underground Rehabilitation

E-mail: selepemalope@gmail.com Cell 1: 079 807 8310 Cell 2: 076 562 5896 www.hlabirwa.co.za

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ZEBRATONE MINING

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erbatone Mining, registered in 2009, was started by P.J Mohuba and M.S Phasha and is 100% BEE compliant. Our initial focus was to provide practical training to the community and although this is still an ongoing process, we have recently expanded our operations into contract mining.

We ensure the regulations of proper feasibility studies are followed and employ experienced and suitable candidates to manage and supervise our ventures. Our skilled workforce ensures that high standards of work are delivered to all our clients.

Address Office 138. Old Mutual Building, Lebowakgomo, 0737

Placing emphasis on locally sourced staff and internal progression opportunities

T + 015 633 4024 + 086 634 3427 E zebratonep@gmail.com

Investing in communities

To achieve its goals, Atlatsa places much of its emphasis on the correct hiring and ongoing development of its employees; bringing to the fore aspects of local opportunity and internal progression.

“The Bokoni Mine is a community mine with 80 percent of employees coming from surrounding communities,” Motaung says. “Atlatsa invests in employee development through various training educational courses.

“We hire the best candidates in the mining industry from engineers, geologists and accountants, and the well being of our employees remains of paramount importance to us.”

This philosophy gives an insight into the Company’s wider adherence to corporate social responsibility applications; a facet which is pivotal given that its work has a direct impact on 6,000 lives, and an indirect impact on 150,000 people, in the Sekhukhuneland region.

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TKY TRADING

We hire the best candidates in the mining industry from engineers, geologists and accountants, and the well being of our employees remains of paramount importance to us

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KY Trading Enterprise specialises in the repair and supply of electrical and mechanical components such as electric and vibrator motors and pumps and cylinders, allowing us to supply various mining companies throughout South Africa.

We are diversifying into a new project of supplying non-crushing cast iron components which is planned to take off in May 2015. On this project, we will be able to produce any size and any material specification required.

Our aim is to be a leader in meeting the real needs of clients by providing excellent services, relevant development expertise in a safe and cost effective manner.

www.tkytrading.co.za

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Operational Activities • Stoping & White area stoping • All types of development • Sweeping and vamping • Ledging • Equipping • Rail upgrading • Haulage maintenance • Opencast mining

T: + 015 633 4024 + 086 634 3427 E: zerbatonp@gmail.com Office 138,Old Mutual Building, Lebowakgomo, 0737

EMERGENCY/BREAKDOWN CONTACT: Mamokiba.tky@gmail.com|Mamokiba. makuwa@gmail.com T: 081 095 4258 SALES Patunia Tshibudzi sales@tkytrading.co.za T: 072 628 3060/081 051 4286 OPERATIONS Mamokiba Makuwa Mamokiba@tkytrading.co.za T: 081 095 4258/079 190 1314

TKY Trading specializes with the repairs for electric motors, pumps, cylinders and valves and also supplies the industry with a vast range of quality engineering and mining components.

Excellence is our business www.tkytrading.co.za

Yvonne Makuwa – Operations Leader

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Motaung continues: “We engage with and invest in communities through various community-based projects. We allocate bursaries for mining engineering studies; we support foundational phase learning through a community crèche.

“We also offer portable skills ranging from carpentry, sewing, welding and bricklaying. We also recently completed a housing project in the Monametse Village.”

Additionally, Atlatsa stimulates local economic growth via successful SMEs, Zerbatone and BBP Mining and projects. Overall, there are 20 contractors currently supplying goods and services to the mine, including Fanang Diatla Bakery, Khomanchas slate quarry project and Mogorishane civil works; all of which ensure that the company’s immediate influence spreads further than purely its impact in the mining industry.

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Efficient initiatives

Atlatsa’s objective of becoming a significant mine-to-market PGM company is on track through its substantial and diversified asset base, and the promise of further progression to come over the next five years.

Future project acquisitions alongside its established organic growth will facilitate this migration from junior to mid-tier status even more as it stays true to its three-pronged strategy of becoming a renowned producer, establishing a new operational culture and track record at the producing mine, and continuing the Company’s asset portfolio development.

“Atlatsa is not just an investor but rather a BEE PGM operator that invests in communities through educational support and local economic development. We’ve taken the bold decision to build through challenging economic times, positioning ourselves

BOKANG CONSULTING SERVICES Adaptive, innovative, intelligent security services Intelligence driven security is still a fairly new concept in the South African or African context in general. However even with technological advances many companies still apply static asset guarding that only has the ability to passively engage with threats, theft, political and communal insurgencies.

In order to circumvent issues such as ongoing strikes, illegal mining, industrial espionage, sabotage, political insurgence and theft of assets, a cutting edge, tailor made intelligence driven solution is required.

Bokang Consulting Services utilises a combination of intelligence collection and investigation to pre-empt threats before it translates into actual crimes.

Whether the threat is directed at an individual or an organisation, we assess the nature of the threat and design appropriate intervention strategies.

Our reputation is for challenging the conventional, and for delivering solutions that are innovative, flexible and effective.

We provide an end to end service which includes: · Intelligence gathering · Investigation services · Surveillance · VIP Close protection · Emergency response team · Security serveys · Research · Risk assesment

T +27 11 958 2034 F +27 86 654 9214 E info@bokangcs.co.za

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for a turnaround in PGM markets,” Motaung concludes. “We have a large, high quality orebody with a Merensky focus and also have a comparatively low capital requirement to fund growth.

“The development of the two new generation shafts, Brakfontein and Middelpunt Hill, remains on target to achieve steady-state production levels of 160,000tpm by 2020 and this development will position us favourably for a turnaround in PGM markets.

“In this challenging economic environment, we continue to focus on various initiatives to improve operational efficiencies, disciplined capital allocation and cost management, without compromising the mine’s existing ramp-up plan.”

Investing in communities

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ATLATSA RESOURCES CORPORATION 4th Floor 82 Grayston Drive Sandton 2146 South Africa Tel: +27 11 779 6800 Fax: +27 11 883 0863 info@atlatsa.com

www.atlatsaresources.co.za