Mokopane Updated Scoping Report

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4. OBJECTIVE OF TH E SCOPING PROCESS 1) The objective of the scoping process is to, through a consultative process : - a) identify the relevant policies and legislation relevant to the activity; b) motivate the need and desirability of the proposed activity, including the need and des irability of the activity in the context of the preferred location; c) identify and confirm the preferred activity and technology alternative through an impact and risk assessment and ranking process; d) identify and confirm the preferred site, through a detaile d site selection process, which includes an impact and risk assessment process inclusive of cumulative impacts and a ranking process of all the identified alternatives focusing on the geographical, physical, biological, social, economic, and cultural aspec ts of the environment; e) identify the key issues to be addressed in the assessment phase; f) agree on the level of assessment to be undertaken, including the methodology to be applied, the expertise required as well as the extent of further consultation to be u ndertaken to determine the impacts and risks the activity will impose on the preferred site through the life of the activity, including the nature, significance, consequence, extent, duration and probability of the impacts to inform the location of the dev elopment footprint within the preferred site; and g) identify suitable measures to avoid, manage, or mitigate identified impacts and to determine the extent of the residual risks that need to be managed and monitored.

228. Appendix 2 : EAP CV

231. Appendix 5 : Site Environmental Plans

232. Appendix 6 : Sensitivity Plans

233. Appendix 7 : PPP Materials

234. Appendix 7 (1) : Stakeholder Database

235. Appendix 7 (2) : Land Claims Commissioner Correspondence

236. Appendix 7 (3) : Background Information Document and Comment Sheet

237. Appendix 7 (4) : Project Advertisement

238. Appendix 7 (5) : Project Sit e Notice

239. Appendix 7 (6) : Project Notification and Availability of Scoping Report

240. Appendix 7 (7) : Comments and Response Report

241. Appendix 7 (8) : Notification of Final Scoping Report

242. Appendix 8 : Biodiversity Species List

227. Appendix 1 : EAP Qualifications

229. Appendix 3 : Locality Plan

230. Appendix 4 : Original and Revised Project Infrastructure Plans

243. Appendix 9 : Heritage Scoping Study

3. IMPOR TANT NOTICE In terms of the Mineral and Petroleum Resources Development Act , 2002 (Act 28 of 2002 as amended), the Minister must grant a prospecting or mining right if among others the mining “will not result in unacceptable pollution, ecological degradati on or damage to the environment”. Unless an Environmental Authorisation can be granted following the evaluation of an Environmental Impact Assessment and an Environmental Management Programme report in terms of the National Environmental Management Act ,199 8 (Act 107 of 1998) (NEMA), it cannot be concluded that the said activities will not result in unacceptable pollution, ecological degradation or damage to the environment. In terms of S ection 16(3)(b) of the EIA Regulations, 2014, any report submitted as p art of an application must be prepared in a format that may be determined by the Competent Authority and in terms of S ection 17 (1) (c) the C ompetent Authority must check whether the application has taken into account any minimum requirements applicable or instructions or guidance provided by the competent authority to the submission of applications. It is therefore an instruction that the prescribed reports required in respect of applications for an environmental authorisation for listed activities trigger ed by an application for a right or permit are submitted in the exact format of, and provide all the information required in terms of, this template. Furthermore please be advised that failure to submit the information required in the format provided in th is template will be regarded as a failure to meet the requirements of the Regulation and will lead to the Environmental Authorisation being refused. It is furthermore an instruction that the Environmental Assessment Practitioner must process and interpret his/her research and analysis and use the findings thereof to compile the information required herein. (Unprocessed supporting information may be attached as appendices). The EAP must ensure that the information required is placed correctly in the relevant sections of the Report, in the order, and under the provided headings as set out below, and ensure that the report is not cluttered with un - interpreted information and that it unambiguously represents the interpretation of the applicant.

38. Final Scoping Report Proposed Open Pit Magnetite Mine and Concentrator Plant, Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 17 6 Item 2(e): Policy and Legislative C ontext This section aims to provide a description of the policy and legislative context within which the project is b eing proposed. This section has been divided into national, provincial and local legislation and policies, plans, guidelines and development planning frameworks a nd tools .

114. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 93 Figure 13 - 4 : Piper D iagram

148. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 127 Agricultural activities within the project site include commercial and subsistence maize farming as well as livestock grazing. Commercial farming is concentrated within the south - west ern section of the project site on the farm Bellevue 808. Subsistence farming is practiced throughout the study area. Livestock, mostly cattle, goat and sheep, are also kept on a subsistence level and are grazed in communal grazing areas situated on the fa rms on which the proposed infrastructure will be located. The right to use these areas for grazing purposes are exclusively allocated to households who reside within the jurisdiction of the Bakenberg TA. I nfrastru cture within the study area includes forma l and informal dwellings, buildings used for business purposes (e.g. commercial farming infrastructure), privately owned service infrastructure (e.g. boreholes, pivot irrigation systems, and dams), public infrastructure (e.g. roads) and grave sites . Roads within the project site include both tarred and gravel roads; the majority of these roads are in a deteriorated condition due to lack of maintenance and become unusable after heavy rains. A n inactive granite quarry is situated on a hill within the Vl iegekraal property.

194. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 173 Note: In the formula for calculating consequence, the type of impact is multip lied by +1 for positive impacts and - 1 for negative impacts The matrix calculates the rating out of 147, whereby Intensity , Extent , Duration and Probability are each rated out of seven as indicated in Table 21 - 6 . The weight assi gned to the various parameters is then multiplied by +1 for positive and - 1 for negative impacts. Impacts are rated prior to mitigation and again after consideration of the mitigation measure proposed in this EIA/EMP Report. The significance of an impact is then determined and categorised into one of eight categories, as indicated in Table 21 - 7 , which is extracted from Table 21 - 6 . The description of the significance ratings is discussed in Table 21 - 8 . It is important to note that the pre - mitigation rating takes into consideration the activity as proposed, i.e. there may already be certain types of mitigation measures included in the design (for example due to legal requirements). If the potential impact is still considered too high, additional mitigation measures are proposed.

108. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 87 Table 13 - 5 indicates the water quality results benchmarked against (SANS) 241: 2011 drinking water standards. Table 13 - 6 indicates the water quality results benchmarked against the Resource Water Quality Objectives (DWA, 2011). The resu lts have shown that the water quality is within the SANS 241: 2011 drinking water standards for all parameters assessed. In terms of the Resource Water Quality Objectives limits (DWA, 2011): ■ The site SW4 indicated a high concentration of Total Dissolved So lids (TDS), above the ideal and acceptable limits. Generally, a very good water quality has been indicated by the results, this might have been influenced by the rains. High flows have been observed and that cleanses or dilutes higher concentration of di ssolved chemicals/metals.

73. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmenta l 52 12 Item 2(h)(iii): Summary of Issues R aised by I&APs A summary of the comments made on the Scoping Report and during the consultation meetings are included in the Table 12 - 1 . The table also provides a response to all comments raised. The detailed comments and responses are included in an Appendix 7(7).

137. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 116 13.1.16.5 Scoping Survey Findings The scoping survey found that the western portion of the Malokong Hill has been disturbed through granite mining activities. According to a Masters dissertation, the mining has resulted in negative heritage and social impacts experienced by the Rooivaal and Malokong community. Table 13 - 23 provides a summarised list and description of tangible heritage resources that were identified during the scoping survey. These findings are not exhaustive, but provide a representative sample of tangible resources likely to be affected by the p roject. Site location details are not provided, but kept on record by Digby Wells and SAHRIS. Please refer to A ppendix 9 for the full Heritage Scoping Report.

153. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 132 13.4 Environ mental and C urrent Land Use M ap The environmental and current land use features have been illustr ated in Plans 6 to 15 in Appendix 5 .

154. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 133 14 Item 2(h)(v): Impacts I dentified Impact identification is performed by determining the potential source, possible pathway s and receptors. In essence the potential for any change to a resource or receptor (i.e. environm ental aspect) brought about by the presence of a project component or by a project - related activity has be en identified as a potential impact. This section discusses th ose potential impacts associated with the proposed project activities and consider s thos e potential impacts as identified by I&APs . Refer to Appendix 7 (7) for the complete Comments and Response Report. Refer to Table 14 - 1 . The significance , probability and duration of these potential impacts will be assessed as par t of the EIA phase once detailed specialist feedback is provided on the sensitivity of the receiving environment. Table 14 - 2 lists the potential project risks , these risks will not be assessed as part of the EIA. These risks will be assessed as part of a larger project risk assessment, prior to mine development .

159. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 138 15 Item 2(h)(vi): Methodology used in D etermining the S ignificance of the Environmental I mpacts The significance probability and duration of the aforementioned potential project impacts will be assessed as part of the EIA phase. These identified impacts will be revised based on inputs by I&APs, to be obtained during the consultation process. Refer to Section 16.4 for the complete impact assessment methodology that will be used to determine t he significance of the potential project impacts, as identified.

164. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 143 18 Item 2 h( x): O ut come of the Site S election Matrix and Final Layout Plan All environmental and social sensitivities have been avoided; however the open pit is positioned on a drainage line. This cannot be avoided due to the p osition of the mineral resource. The revis ed site layout is attached as Plan 3 in Appendix 4 . The revise d site layout does consider inputs from I&APs as identified in Section 17 .

165. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 144 19 Item 2 h( x): Motivation where no Alternatives S ites were considered In ter ms of mining , alternative sites (i.e. locations) were not considered as the l ocation of the mineral resource determines the location of the mining operation. However, alternative sit e layouts have been considered as discussed earlier.

210. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 189 23 Item 2(m): Other Matters Required in terms of S ections 24(4)(a) and (b) of the Act Section 24(4)(b)(i) of the NEMA (as amended), provides that an investigation must be undertaken of the potential consequences or impacts of the alternatives to the activity on the environment and assessment of the significance of those potential consequences or impacts, including the option o f not implementing the activity. The outcome of the investiga tion has been provided in Item 2(h)(i - xi) of this Scoping Report.

24. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Di gby Wells Environmental 3 Mellerson has considerable experience across a range of developmental and environmental sciences and has worked in South Africa, Na mibia and Angola. Please find Mellerson ’s CV attached as Appendix 2.

27. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Di gby Wells Environmental 6 4 Item 2(c): Locality M ap A regional plan and locality plan has been attached as Plan 1 and 2 respectively within Appendix 3 . The nearest town is Mokopane and can be seen on the regional map.

21. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental xii Plan 16: Air Quality Sensitivity (Appendix 6) Plan 17: Aquatic Ecosystem Sensitivity (Appendix 6) Plan 18: Blast and Vibration Sensivity (Append ix 6) Plan 19: Heritage Sensitivity (Appendix 6) Plan 20: Land Capability Sensivity (Appendix 6) Plan 21: Land Use Sensitivity (Appendix 6) Plan 22: Noise Nuisance Sensitivity (Appendix 6) Plan 23: Social and Health Sensitivity (Appendix 6) Plan 24: Surfac e and Groundwater Sensitivity (Appendix 6) Plan 25: Terrestrial Biodiversity Sensitivity (Appendix 6) Plan 26: Traffic Sensitivity (Appendix 6)

102. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 81 year average maximum, minimum and mean temperat ure for the project site is shown in Figure 13 - 1 . The a nnual mean temperature is 19. 7 °C. The average monthly maximum temperatures range from 13.2°C in July to 23.8°C in January and December, with daily minima ranging from 11.6°C in July to 23.8°C in January. Source: Lakes Environmental, 2015 Figure 13 - 1 : Average Monthly T emperature for the Project Site ( 2011 - 2013 ) 13.1.2.1 Rainfall T he average total monthly precipitation for the project area is illustrated in Figure 13 - 2 . T he annual total rainfall recorded is 798 millimetres (mm) and a monthly average of 44 mm was recorded. The highe st m onthly maximum rainfall was recorded at 224.8 mm .

103. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 82 Source: Lakes Environmental, 2015 Figure 13 - 2 : Average Monthly Rainfall of the Project Site ( 2011 - 2013 ) 13.1.2.2 Wind Dispersion of atmospheric pollutants is a funct ion of the prevailing wind characteristics at any site. W ind speed determines both the distance of downward transport and the rate of dilution of pollutants. The spatial and annual variability in the wind field for the project site is illustrated in Figure 13 - 3 . The predominant wind direction is from the north - east, east north - east and south - east. Over the three year period, frequency of occurrence was 11.1% from the north easterly sector, 10.9% east north - east, 9.5% south - east. Ca lm conditions (wind speeds < 0.5 m/s) occurred for 9% of the time.

56. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmenta l 35 7 Item 2(f): Need and Desirability of the Pr oposed A ctivities The magnetite concentrate will be further processed as part of a separate project to produce vanadium. Therefore the need for the magnetite concentrate is driven by the demand f or v anadium. Vanadium is a high val ue metal, for which demand is growing due to the increased use of vanadium in steel manufacturing. Approximately 85 - 90% of global vanadium resources are used in the steel industry with the remaining proportion used in titanium alloys and chemical and battery applications. In 2012, approximately 76 000 tonnes of vanadium was produced, with South Africa contribut ing approximately 26 % to the market. South Africa is the second largest producer of vanadium after China, which contributes approximately 52% to the vanadium market. The gro wth in demand for vanadium has been increasing at a compound annual growth rate of 4.3% between the years 2005 and 2013. The Chinese construction market and the global automotive steel market are the largest consumers of vanadium and are responsible for dr iving the demand for vanadium ( Figure 7 - 1 ) . It is expected that vanadium demand worldwide will increase by 8.1% per year generating consumption levels above 90 000 tonnes of vanadium by 2016. Figure 7 - 1 : Growth in Vanadium Demand Source: Bushveld Vanadium Scoping Study, July 2014 The project’s magnetite deposit underlying the proposed mining right area is considered to have a higher grade/ tonnage ratio when compared to several ot her similar mine projects globally. Figure 7 - 2 illustrates that the project has a higher in situ grade compared to other global resources. Mining magnetite resources within the proposed project site is thus considered more favoura ble from a technical, economic and sustainable viewpoint.

30. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Di gby Wells Environmental 9 5.2 Item 2(d)(ii): Description of the Activities to be U ndertaken 5.2.1 Mineral Resource The applicant has undertaken a scoping study in June 2014 to determine the viability of the project. The discussion on the mineral resource presented below is based on the findings of this study. The Project is located on the B ushveld I gneous C omplex (BIC) . The BIC consists of a lower sequence of laye red mafic and ultramafic rocks known as the Rustenburg Layer Suite (RLS) and an overlying unit of granites known as the Lebowa Granite Suite. These layered rocks occur in four areas known as the Western, Northern, Eastern, and Bethal limbs. The p roject i s located in the Northern Limb and in the Upper Zone of the RLS. Within the project site, two titano - magnetite zones have been identified, namely the vanadium - rich Main Magnetite L ayer (MML) and the iron and titanium - rich P - Q zone. The MML consists of two massive titano - magnetite la yers separated by a parting consisting of lower concentratio ns of titano - magnetite. The target mineral for the proposed mine is vanadiferous titano - magnetite of the MML , which will be processed to produce ma gnetite concentrate which will eventually be used for vanadium production . Other minerals which may be found in association and which are included in the mining right application are: Vanadium, Titanium, Iron Ore, Phosphate, P latinum G roup M etals , Gold, Cobalt, Copper, Nickel, Chrome and all minerals found in association with these elements. A second orebody, the so - called P - Q Zone, also has indicated and inferred resources and may be mined at a later stage. The r eef outcrops and dips to the west and has been intersected at depths exceeding 400 m below surface, and a resourc e has been calcul ated on the MML to a depth of 120 m. The P - Q Zone also outcrops, and dips to the west and has resources calcu lated to depths of 400 m. Th e following indicated mineral r e sources are declared for the MML from surface down to a vertical depth of 120 m ( Table 5 - 2 ) These mineral r esources have been prepared in accordance with the guidelines of the 2012 Edition of the JORC Code . The resource estimate was classified in the indicated and inferred resource categories. The combined thickness o f this mineral resource is 8.18 m with an indicated 51.81 million tonnes of ore.

22. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Di gby Wells Environmental 1 1 Introduction Pamish Investments No. 39 (Pty) Ltd (Pamish) is proposing the development and o peration of a n ew Magnetite Open Pit Mine and associated infrastructure at a site located 45 km northwest of Mokopane in Limpopo Province (hereafter referred to as the project). Pamish currently holds a Prospecting Right (PR) ( LP 95 PR) for an area including the followi ng farm portions: RE of Farm Vogelstruisfontein 765LR , RE of Farm Vliegekraal 783LR , RE of Farm Vriesland 781LR , RE of Farm Schoonoord 786LR , R E and Portions 1,2,3,4,5 and 6 of Farm Bellevue 808LR (project site) . The PR allows for the prospecting of iron ore, vanadium, titanium and other minerals. The combin ed area of the PR area is 10 109 h ectares . Pamish now wish to mine magnetite resource s at the project site. In terms of the requirements of the Minerals and Petroleum Resources Development Act, 2002 (A ct No. 28 of 2002), (MPRDA) as amended, a Mining Right Application (MRA) must be submitted to the Department of Mineral Resources (DMR) for the project. In support of the MRA, an Environmental Impact Assessment (EIA) process must be undertaken in accordanc e with the new EIA Regulations (GN R. 982), December 2014 promulgated in terms of the National Environmental Management Act, 1998 (Act No. 107 of 1998) . Environmental authorisation is in addition required for certain listed activities ancillary to the mini ng operation as contained in Listing Notices (GN R983, 984 and 985) . The project also requires the following environmental approvals, which will be applied for as part of the EIA process: ■ Waste Management Licence (WML) in terms of the National Environmenta l Management: Waste Act, 2008 (Act No. 59 of 2008); and ■ Water Use Licence (WUL) in terms of the National Water Act , 1998 (Act No. 36 of 1998). The purpose of the EIA process is to ensure that potential environmental and social impacts associa ted with cons truction, operation and closure of a p roject are identified, assessed and appropriately managed. There are two primary phases of an EIA process, namely the scoping phase and the impact assessment phase. Identification of potential impacts occurs during the scoping phase, whilst the assessment and mitigation of those impacts occurs during the impact assessment phase. This Scoping Report presents the findings of the scoping phase of the EIA process. The report aims to provide a description of the overall pro ject and activities , the biophysical and social environments within which the project is being proposed and the potential impacts that the project may have on these environments.

57. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmenta l 36 Figure 7 - 2 : Growth in Vanadium Demand Source: Bushveld Vanadium Scoping Study, July 2014 The project will result in several benefits both at the local and national levels. The estimated cost over the first 5 years for Local E conomic Development (LED) programmes is R 2.5 m illion and R 4.5 m illion for socio - economic investment initiatives. LED programmes will include entrepreneurial skills developmen t, the Bakenberg Home Center and other general socioeconomic initiatives. Further to this, the national economy is also expected to benefit th rough the export of the final vanadium produ ct resulting in foreign revenue. Other annual regulatory costs to be incurred by the proposed project include the payment of royalties ( roughly 3% of profits ), rates and taxes. The local economy will also be boosted by the creation of job opportunities. The planned labour complement, once the mine is fully operational, is expected to be 150 permanent employees (excluding contractor employees). In the first 5 years of the project, approximately R 6.3 million will be spent on H uman Resource Development (HRD). Pamish have also developed a Skills Development Plan as part of th e Social and Labour Plan (SLP) which will aim to address the proposed mine’s operational requirements and also cater to employees ’ future employment aspirations. This will be done through a series of programmes which will help improve the skills of the com munity such as Adult Basic Education and Training (ABET), portable skills development initiatives, learnership programmes, mentorship plans and bursaries.

104. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 83 Source: Lakes Environmental, 2015 Figure 13 - 3 : Surface Wind R ose for the Project Site ( 2011 - 2013 ) The predominant wind direction is from the north east and south east throughout the day except for night when the predominant wind direction is from the north - west. The morning and evening wind roses are similar to the period wind rose with calm periods of 14% and 3% respectively. The afternoon experiences the calmest period of 16%. The predominant wind direction in spring and summer is from the north - east and east north - east. In autumn and winter the predominant wind direction is from the south - east and south south - east. The highest calm perio ds of 11% are experienced in summer and autumn. 13.1.3 Geology The project site is located on a part of the northern limb of the Bushveld Complex (Baker, 2006) (Cawthorn, et al., 2006 . The Bushveld Complex largely comprises mafic rocks, constituting the largest platinum - group elements ore reserves globally ( Cawthorn, et al., 2006, p. 261) . It is dominated by the Lower, Critical, Main and Upper Zones o f the Rustenburg Layered Suite. The predominant rocks that comprise the Rustenburg Layered Suite include gabbro an d gabbro - norite – both igneous in origin . The Rustenburg Layered Suite is overlain by the Lebowa G ranite Suite comprising Nebo g ranite , representing the final stratigraphic unit of the Bush veld Complex in the project area (Cawthorn, et al., 2006, p. 273; R obb, et al., 2000, pp. 269, 276) .

166. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 145 20 Item 2h(xi): State ment M otivating the P referred S ite The preferred site layout has been selected based on the following motivating factors : ■ The new layout of the tailings dam avoids the rocky ridges, wetlands and hills of cultural significance located to the east of the pro ject site. Furthermore, the footprint of the tailings dam has been reduced from 124 ha to 69 ha; ■ The new layout of the WRD avoids a wetland area; ■ The new layout of the concentrator plant avoids the D3534 provincial road, a secondary drainage line and the h ills of cultural significance. Furthermore, the footprint of the plant has been reduced to 62 ha. The concentrator plant has also moved away from the nearest community, namely Ditlotswana.

112. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 91 elevated chloride (351 mg/L), magnesium (83.1 mg/L) and fluoride (1.11 mg/L) concentrations; and ■ T he following boreholes have dissolved element concentrations that exceed the maximum allowable Class II concentrations and are therefore classified as Class III water – not suitable for human consumption:  Sample VBH23 has an elevated manganese concentratio n (1.54 mg/L) and is located within the Mosate village . The manganese concentrations are most probab ly related to the local geology;  Sample VBH40 has an elevated f luoride concentration (1.58 mg/L) and is located with Lyden village. Elevated fluoride conc entrations are most often asso ciated with granitic formations; and  Sample VBH75 has an elevated n itrate concentration (63.70 mg/L) and is located within Rooivaal village. The high nitrate concentration is most probably related to discharge from a nearby p it latrine or septic tank.

60. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmenta l 39 ■ Rocky ridge: the eastern boundary of the tailings dam is located on a rocky ridge which are considered important features f or the conservation of biodiversity; ■ Cultural heritage: the rocky ridges are also considered to be of high cultural heritage value due to the known Langa settlements of the project area ; and ■ Traffic: the proposed process plant is located across a provinci al road (D3534). Based on these sensitivities, the original site layout plan ( Plan 4 in Appendix 4 ) has been revised with the following changes (reflected in a revised site layout plan in Plan 3 in Appendix 4 ) : ■ WRD option 1 was chosen as the preferred site with an increased footprint due to t here being two open pits; ■ The tailings dam was shifted from the north east to the south west to avoid the rocky outcrops and the footprint was reduced to 69 ha; and ■ The footprint of the concentrator plant area was reduc ed to 62 ha to avoid the rocky outcrops and the provincial road to the east of the proposed plant. The revised site layout plant may undergo further small changes based on environmental, social, technical and economic criteria identified during the EIA ph ase. Feedback from I&APs will also be considered, however to date, I&APs have not provided comments on the proposed site layout. These iterations of the site layout plan will be presented as layout alternatives. The layout alternatives are further assesse d in Section 10.

63. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmenta l 42 ■ Due to the hi gh solids content, results in a reduction of the area required for a tailings dam; ■ Due to the fact that there is little free water in the tailings , seepage from the tailings dam is greatly reduced; ■ Due to the reduction in slurry volume being deposited , there is a potential reduction in energy req uired for pumping; and ■ Once deposited, the paste dries out similarly to conventional thickener underflow. The paste thickening alternative will be assessed against the conventional tailings alternative based on its economic and technical viability. 10.3 No - Go Option The no - go or do nothing option means that the status quo would be maintained . All potential impacts are assessed against the current biophysical and socio - economic baseline; therefore all identified alternatives are assessed against the no - go optio n. This alternative would mean that the project site would remain as is, covered by vegetation and used as agricultural and grazing land by the Bakenburg Tribal Authority. The no mining alternative would mean that the project would not go ahead and as a re sult any potential impacts associated with the project and its alternatives would not occur. These include positive and negative impacts. If the project were not to proceed, the expected revenue, economic activity, skills development and job opportunities would not be realised. Furthermore, the ore r eserves at the project site would remain unutilised. Likewise, the potential negative impacts associated with mines such as degradation of ecological habitat, increased dust, noise and traffic and pollution of surface water and groundwater resources would not occur if the project does not go ahead. The no - go alternative will be assessed further during the EIA phase .

131. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 110 4 km south east of Mokopane C entral B usiness D istrict (CBD) and was classified as G:M:B - . Accor ding to a study conducted by Worley Parsons the site operated until up the end of 2013 and has remaining airspace of 122 056 m 3 . The site receives 10 500 m of waste on a monthly basis from various sources such as domestic, commercial and industrial premise s. The oper ation of both site s is done in - house with available resources. The number of households whose refu se is removed by local authorities weekly has increased from 16.9% in Census 2001 to 26.8% in Census 2011, while those households whose refuse was removed less frequently than once a week declined from 0.8% to 0.4% during the reference period. The percentage of households depending on a communal refuse dump increased slightly from 1.1% to 1.3% between 2001 and 2011. There was a slight increase in the percentage of households that owned their own refuse dumps. Finally, there was a decrease in the proportion of households without any refuse disposal from 9.7% in Census 2001 to 7.7% in 2011 ( Mogalakwena Local Municipality Integrated Development Plan, 201 0 - 2011 ). 13.1.13.12 Housing In general, housing types vary according to settlement type. There are , for example, a higher proportion of informal houses in rural areas , while formal house s are predominantly a feature of the urban environment. The majority of househol ds (95%) within the local study area reside in fo rmal dwellings, only 3% of housing structures are informal . Housing type is also linked to ownership. Security of tenure contributes to more permanent and conventional housing types, while a lack of securi ty tend s to bring about informal dwellings. Almost 50% of dwellings in the local study area are privately owned, of these the majority have been fully paid off, which is considerably higher compared to the regional area. Just less than half of all dwelling s are occupied rent free; this can be ascribed to the fact that the majority of the population reside on traditional land, with no formal land ownership rights. The S patial D evelopment F ramework (SDF) (2012) for the regional and local study area identifie s a major need for housing. Several public housing developments are underway to address this need . Efforts to improve a ccess to housing within the local study area are being undertaken through the private sector as well as government (MLM, 2012) . Public se ctor supported housing p rojects occurs mainly in the econ omically depressed areas and informal s ettlements. 13.1.13.13 Transport Transport corridors formed by road networks usually play a pivotal part in facilitating and supporting development initiatives. The immob ility of communities within the local study area was noted to be a conc ern . Car ownership within the rura l area is low and commuters depend on public transportation (bus and taxi operators) . In addition to formal vehicle use, donkeys with trailers are also commonly seen traversing between vehicles and on the side of roads. Donkeys and trailers have been a traditional mode of transport and while the ‘horse

46. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 25 Applicable legislation and guidelines used to compile the report Reference where applied received on the 9 of February 2015 from the land claims commission and the results of the land claims enquiry are reflected in Section 11.1.5.

152. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 131 which drain into these main rivers /streams . The affected project area, where proposed infrastructure has been proposed, is placed away from these main rivers and drainage lines. At a desktop level, several NFEPA wetlands have been identified and occur primarily within the southern section of the project site. Wetland features have been identified within the project affected area . These features will be assessed and delinea ted during the EIA phase. 13.3.2 Terrestrial Landscape and Habitat The project site is characterised by rocky outcrops along its eastern boundary. Rocky ridges are defined as landscape features with a slope of 5 ° or more such as hills, koppies, gorges and kloofs . Ridges are important for the conservation of biodiversity as they have a high propensity for the occurrence of plant and animal species of special concern. Furthermore, they serve as wildlife corridors in highly developed areas. The project affected area is situated in close proximity to these features; however a 200 m buffer has been applied to avoid these features. 13.3.3 Cultural Heritage The project site and larger area is considered to be culturally sensitive. Karst geology in the project area has the pot ential to contain bodies of breccia, sandstone and siltstone which can include diverse animal bone fragments including hominid remains and tools. Stone Age artefacts have been recorded throughout the landscape within which the project is situated. Through our understanding of the geo - hydrological processes of the landscape, specifically the Mogalakwena River and its tributaries, it is expected that stone tools will be exposed within these water courses and erosion gullies. Ceramic sherds and stone walled s ettlements were identified during the reconnaissance of the pro ject site . These artefacts are associated with the Iron Age and Historical Period of the region. Furthermore, t he numerous hills (as identified above) within the region are known to contain sev eral historic Langa settlements, including Segopa, Magope, Fothane, Matlhogo and Ditlotswane. These sites are intricately associated with the historical events within the region, including the 1854 Siege of Makapan and subsequent socio - political history an d establishment of locations. In addition, agricultural fields are often used as burial sites for the surrounding communities. The project affected area does overlap with land used for agricultural purposes. 13.3.4 Infrastructure The closest settlement to the p roject site is Ditlotswana. There are no known settlements to occur within the project affected area, however there is a potential for individual households to occur within this area. A vast majority of the project site is used as communal grazing land; as such there may be fences and gates demarcating these fields. Furthermore, the provincial road (D3534) runs to the east of the project affect ed area.

185. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 164 considerations , but also addresses cross - cutting environmental and social conditions that could mediate or influence health - related project impacts. This structured approach will be adopted for assessing the likely community health impacts of this proj ect , the methodology for the study is presented below. 21.3.12.1 Desktop Literature Review The data collection activities of the study will include a desktop literature review of health related data in the public domain as well as a review of existing project docum entation and related secondary da ta. The literature review will be completed before the field visit so that data gaps could be identified and questioning routes for Key Informant Interviews (KII) and questionnaires could be developed. Priority will be give n to topics that contribute the most towards the burden of disease in the proposed Project area and also to health - related incidents related to mining. The findings of other specialist studies conducted as part of the project EIA will be reviewed to ident ify social or biophysical impacts that may have a bearing on community health or could mediate community health impacts. Particular emphasis will be placed on the findings of the air quality, noise, hydrological, geohydrological and social assessment s. 21.3.12.2 Que stionnaire Design Participatory tools will be used in data collection. These tools include a semi structured interview with key informants, and a questi onnaire. The questionnaires will be designed to assist in the identification of the major health concern s for the community (HIV/AIDS, TB, arthritis, diabetes etc.), institutional issues (satisfaction or lack thereof with health facilities), socio - economic aspects and environmental concerns. While not all these concerns are directly related to human health, they do provide useful insight into the communities served by the healthcare facilities. These qu estionnaires and discussions will be also designed to establish Knowledge, Attitudes, Practices, and Belief (KAPB) for specific diseases such as HIV/AIDS. 21.3.12.3 Fie ld Survey A field survey will be conducted to collect primary participatory data in the form of interviews with women (FGD) in the different project affected communities. A crucial part of the field survey is to consult stakeholders who have special knowle dge of the health status as well as socio/cultural behaviours and norms. The aim is to gain a comprehensive picture of the general health situation and to better understand potential health impacts of the p roposed Project. The field survey will also provid e an opportunity to visualise and assess the prevailing situation in the communities and their relation to the p roject. This is very important to understand the potential areas of influence of the project and also the general living conditions in the commu nities living in the p roject area.

20. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental xi Table 22 - 1: Issues to be Investigated to Assess Potential Impacts ................................ ... 188 LIST OF APPENDICES Appendix 1: EAP Qualifications Appendix 2: EAP CV Appendix 3: Regional and Locality Plan App endix 4: Original and Revised Project Infrastructure Plans Appendix 5: Site Environmental Features Plans Appendix 6: Sensitivity Plans Appendix 7: PPP Materials Appendix 8: Biodiversity Species List Appendix 9: Heritage Scoping Report LIST OF PLANS Plan 1: Regional Project Location (Appendix 3) Plan 2: Project Si t e Location (Appendix 3) Plan 3: Revised Project Infrastructure Site Layout (Appendix 4) Plan 4: Original Project Infrastructure Site Layout (Appendix 4) Plan 6: Topographical Model (Appendix 5) P lan 7: Land Type (Appendix 5) Plan 8: Land Capability (Appendix 5) Plan 9: Quatenery Water Catchment (Appendix 5) Plan 10: Hydrocensus (Appendix 5) Plan 11: Vegetation Units (Appendix 5) Plan 12: Critical Biodiversity Areas (Appendix 5) Plan 13: Delineat ion of Rocky Ridges (Appendix 5) Plan 14: NFEPA Wetlands (Appendix 5) Plan 15: Wetland Delineation (Appendix 5)

226. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 205  WHO. Health Impact Assessment. 2010 April 13, 2011]; Available from: http://www.who.int/hia/policy/en/  Winter, T., & Llamas, M. (1993). Hydrogeology of Wetlands. J. Hydrol., 141 1 - 269.  Winkler, M.S., et al., Assessing health impacts in complex eco - epidemiological settings in the humid tropics: advancing tools and methods. Environmental Impact Assessment Review, 20 10. 30(1): p. 52 - 61.  Winkler, M.S., et al., Assessing health impacts in complex eco - epidemiological settings in the humid tropics: The centrality of scoping. Environmental Impact Assessment Review, 2011. 31(3): p. 310 - 319.  Winkler, M.S., et al., Assessing health impacts in complex eco - epidemiological settings in the humid tropics: advancing tools and methods. Environmental Impact Assessment Review, 2010. 30(1): p. 52 - 61.  Winkler, M.S., et al., Assessing health impacts in complex eco - epidemiological settings in the humid tropics: The centrality of scoping. Environmental Impact Assessment Review, 2011. 31(3): p. 310 - 319.  WRI (World Resources Institute) & WBCSD (World Business Council for Sustainable Development), 2004: GHG Protocol: Corporate Accounting and Re porting Standard. Washington D.C.: WRI

26. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Di gby Wells Environmental 5 808LR Portion 5 of Farm Bellevue 808LR T0LR00000000080800005 Portion 6 of Farm Bellevue 808LR T0LR00000000080800006

49. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 28 Applicable legislation and guidelines used to compile the report Reference where applied P riority Air Quality Management Plan for the area be developed. A Priority Air Quality Management Plan includes the establishment of emissions reduction strategies and intervention. The implication of this is that all current and future contributing sources in the area will be assessed to determine the emission reduction targets to be achieved over the following years.

171. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 150 21.3.2.2 Impact Assessment and Reporting Detailed i mpacts on the quality and quantity of water in the Borabela River, Mogalakwena River, Sterkrivier and on the identified drainage lines will further be assessed based on the project description and the associated mining activities. Once impacts have been defined, the impacts will be assessed through a rating process that utilises the probability of an event occurring and the severity of t he impact , amongst other factors to determine the significance of a particular environmental risk . Mitigation measures to prevent/ reduce the identified potential surface water impacts over the LoM will be developed together with a surface water monitoring pl an prepared in line with the department of Water and Sanitation (DWS) Best Practice Guidelines number 3 ( BPG 3): Water quality m onitoring . This will indicate the up and down - stream points to be monitored and the frequency of monitoring as well . A concept ual Storm Water Management Plan (SWMP) as prescribed by the Best Practice Guideline (BPG) G1: Storm Water Management (DW S , 2006) will be prepared. Clean and dirty areas contributing to runoff will be delineated based on the final infrastructure layout plan s and site specific hydrological assessments to determine volumes that require to be handled. 21.3.3 Groundwater The groundwater specialist study phase will involve a number of tasks, which are explained in detail below. Conducting these tasks will assist in de fining the underlying aquifer systems in detail and to define potential impacts on the aquifers, but also groundwater users in the area. 21.3.3.1 Geophysical Survey A ground geophysical survey will be conducted to delineate weathered zones and vertical to sub - vert ical geological st ructures underlying the project site. The geophysical survey will be used to position the proposed new groundwater drilling sites, in combination with remote sensing lineament analysis and review of all existing geological exploration dat a. A ground geophysical survey (electromagnetic and magnetics) would be employed to delineate fractures, dykes, weathered zones and identify possible linear structures that could act as preferred grou ndwater flow paths or barriers. 21.3.3.2 Drilling Programme The drilling programme will be performed using the rotary air percussion method with initial drilling performed at a diameter of 165 mm inner diameter and reamed or enlarged to 203 mm if high yielding boreholes are intercepted. The depth for characterisation b oreholes is dependent on the depth of the proposed open pit. The method of construction for the characterization boreholes is based on previous experience of drilling in similar lithologies to similar depths.

37. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Di gby Wells Environmental 16 During the construction phase the mine will employ 500 permanent and contractor employees. 5.2.12 Project Schedule The planned project schedule is as follows and is dependent on receipt of all regulatory approvals : ■ Construction : March 2016 – Mar ch 2018 (2 years) ■ Topsoil and Pre - stripping : 2018 - 2019 (1 year) ■ Production: 2019 – 2049 (30 years)

62. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmenta l 41 tailings dam was located over secondary drainage li nes, this has now been avoided through the revised site layout and by reducing the total footprint of the tailing s dam from 124 ha to 69 ha; ■ The numerous hills within the region are known to contain several historic Langa settlements, including Segopa, Magope, Fothane, Matlhogo and Ditlotswane. These sites are intricately associated with the historical events within the region, including the 1854 Siege of Makapan and subsequent socio - political history and establishment of locations. The original location of the tailings dam was located on these hills, which has now also been avoided through the revised site layout; Th e revised layout of the tailings dam is therefore the preferred alternative based on the sensitivities avoided . This alternative will therefore be assessed further during the EIA phase. 10.1.2 Waste Rock Dump There were two options under consideration for the l o cation of the WRD, separated by the D4380 Provincial Road. As per the original site layout map, waste rock dump option 1 is located to the north of the road and has a 169 ha footprint. Waste rock dump option 2 is located to the south of the road and has a 161 ha footprint. The revised layout aimed to avoid similar sensitivities as discussed above. From an ecological perspective, waste rock dump option 2 was located on a wetland, therefore WRD option 1 is considered more favourable. The total footprint of WR D option 1 is now 243 ha. WRD option 1 will be considered further during the EIA phase. 10.1.3 Concentrator Plant The original site layout of the concentrator plant traversed a secondary drainage line, a provincial road, in close proximity to production borehole s, used for drinking water and located close to the hills of cultural significance. The revised site layout illustrates that the concentrator plant has been shifted west and the footprint has been reduced from 236 ha to 62 ha. The drainage line, provincial road and hills of cultural significance have therefore been avoided. This revised site layout is therefore the preferred alternative and will be assessed further during the EIA phase. 10.2 Technology Alternatives There are two process alternatives under consi deration relating to the disposal of tailings material. The disposal of the tailings material currently requires an area of 69 ha. The applicant is considering the use of paste thickeners which will result in the thickening of the tailings which will have several benefits when compared to conventional tailings thickening, these include: ■ Reduction of water sent to the tailings dam by 50%, result ing in a significant overall reduction in water consumption;

203. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 182 21.8 Item 2(viii): Description of the T asks that will be undertaken during the Environmental Impact Assessment P rocess The following tasks will be undertaken during the EIA phase: ■ Further define the project activities ; ■ Further assess the project alternatives based on technical, economic, social and environmental criteria; ■ Supplement the legal review of the project; ■ Undertake detailed specialist investigations; ■ Assess potential impacts using the methodology provided her ein; ■ Provide detailed and feasible mitigation and management measures in an EMPr; and ■ Public participation activities, including public and key stakeholder meetings.

34. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Di gby Wells Environmental 13 paste tailings and also the financial feasibility needs to be assessed. Further information on the preferential tailings disposal technology and proposed design of the tailings dam will be provided during the EIA phase. T he tailings da m to be constructed will have a footprint of approximately 124 ha , which may be reduced depending on the final design of the dam . 5.2.6 Water Management 5.2.6.1 Water Supply Water is required for use in ore process ing as well as for potable use . I t is therefore planned for water to be abstracted from existing water abstraction networks. The Bakenburg Rural Water Scheme (RWS) and the Hout River gneiss of the Aganang Local Municipality have been identified as potential sources due to its higher water yielding potential. Based on d eskt op studies undertaken, the Hout River and RWS yielded 1 and 3 Million Cubic Metres (Mm 3 ) of water per annum, respectively that could potentially be available for the project. These networks as well as possible groundwater resources will be investigated fu rther through an in - depth hydrogeological investigation to be undertaken during the EIA process. Approximately 2 Megalitres of water will be required per day. The Olifants River Water Resources Development Project plans to build a pipeline from Flag Boshi elo Dam to Mokopane to meet the domestic and industrial needs of the area. This p ipeline is currently being constructed , however it is anticipated to be comple ted by the end of 2017. Pamish will need to liaise with the Lebalelo Water User Association to register its water requirements . 5.2.6.2 Storm water Management Storm water will be managed as per GN R.704, regulations on use of water for mining and related activities aimed at the protection of water resources (GG 20119 of 4 June 1999). Clean storm water will be directed away from the mining operations using berms and dirty water will be captured within the dirty area and directed towards a pollution control dam for settling and evaporation. The pollution control dams will be sized such that it will be able to contain the run - off from a 1:50 year storm event. Mining will occur outside the 100 year floodline . 5.2.6.3 Pollution Control Facilities Process water will be returned to the concentrator plant for re - use. Furthermore, t he required clean and dirty water separation systems w ill form part of the mine design as well as the required PCDs.

136. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 115 comm. Megan Edwards, 16 January 2015). This raw material originates from the greenstone belt. These heritage resources are presented in Table 13 - 23 below. Lithic scatters and isolated finds ass ociated with the MSA have been reported throughout the landscape. Based on our understanding of the geo - hydrological process associated with the Mogalakwena River and its tributaries, the reported distribution of lithics are expected, as demonstrated in th e discussion of the Makapan Valley WHS above. Natural processes of progradation, aggradation and sedimentation of the Mogalakwena River result in the transportation of sediments including lithic material. These lithics are often identified in isolation and outside of discernible context, therefore providing limited scientific information beyond form, function and technique of manufacture. 13.1.16.3 Farming Community Ceramic sherds and stone walled settlements were identified during the scoping survey of the project area, as well as in several archaeology and heritage studies previously completed in the region. The ceramics provide evidence of Iron Age settlement from at least the 17 th century CE continuing to the 19 th century CE. This is consistent with the regional study a rea discussion above. In addition, stonewalled sites were also identified in the scoping survey and in reports. The combination of the various ceramic facies and types of stonewalled sites provide evidence of long - term occupation by Kekana and Langa Nort hern Ndebele as well as other groups. 13.1.16.4 Historic Period There is sufficient evidence that prove continuity from Iron Age settlement into the historic period, and the division must be understood as largely artificial. The site - specific study area is located within the historic Bakenb erg Location, also known as the Hendrik Masibi Location, one of the three chiefdoms described above. The area is at present under the Bakenberg Tribal Authority’s jurisdiction. The scoping survey, historical aerial images and previously completed assessment studies have provided evidence for several archaeological and historic stonewalled sites within the study area. This includes Hendrik Masibi’s historic early 20 th century capital that was indica ted during the scoping survey. Previously completed heritage studies have investigated sites associated with the history of the Langa in the study area. These sites include Malokong Hill situated on the eastern border of the project area where a large sto ne walled settlement was identified. The settlement type conforms to a typical Nguni settlement pattern associated with the Moor Park clus ter . T he Mabusela clan occupied the area throughout living memory, first settling at the hi ghest point of the hill for security expanding the settlement over five stages. This site was verified during the scoping survey and was noted in historical aerial imagery dating from 1953 through to 2012. The Bakenberg Tribe has initiated a land claim o n several properties within the site - specific and local study areas.

187. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 166 Road users of the N11 national route and R518 regional route as well as the numerous district roads in the project area are potential visual receptors of the proposed project. The N11 national route is also used by tourists travelling t hrough Limpopo and to Botswana and Zimbabwe. Protected areas such as nature reserves, and recreational and tourism areas are also considered potential visual receptors. 21.3.13.2 Desktop Analysis A desktop study will be conducted to evaluate the topography o f the re ceiving environment. Chief Directorate: National Geospatial Information (CD: NGI) aerial photography (flown in 2012) of the project site will be examined to determine the surface features. The available vector GIS data will be used to determine the relativ e location of the features surrounding the project area. A topographical model will be created using ArcGIS 3D Analyst Extension. The resultant topographical model will then be used to create slope intensity and slope aspect models using the Slope and Aspe ct Tools of the ArcGIS 3D Analyst Extension. The slope m odel indicates the slope degree. 21.3.13.3 Field Survey The information gathered from the desktop study will be verified through a site visit. Photographs will be taken during the site visit and topographical f eatures (natural and man - made), overall visual resources, the variety of landscape characters and sense of place attributes will be assessed. 21.3.13.4 Viewshed Analysis The Digital Elevation Model (DEM) created during the scoping phase will be used as input to cre ate a viewshed model using ArcGIS 3D Analyst Extension; this will be done to establish the degree of visibility that the proposed infrastructure is likely to have. The height of the proposed above ground infrastructure will be taken into consideration in t he modelling process. 21.3.13.5 Characterisation of Visual Impacts The expected visual impact will be categorised based on the type of receiving environment and the type of development as detailed in Table 21 - 4 and Table 21 - 5 . Table 21 - 4 provides an indication of the visual impacts that can typically be expected for different types of developments in relation to the nature of the receiving environment based on the category of the developme nt as defined in Table 21 - 5 .

160. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 139 16 Item 2(h)(vii): Positive and Negative Impacts that the Proposed A ctivity (in terms o f the initial site layout) and Alternatives will have on the E nvironment a nd the Community that may be A ffected The site layout alternatives were identified based on a site sensitivity analysis as described in Section 9. The original site layout considered the footprints of the tailings dam, WRD and concentrator plant. A comparison of these layouts is presen ted in the sections that follow: These layout options do consider the inputs provided by I&APs during the consultation process. 16.1.1 Tailings Dam The tailings dam was originally positioned along the eastern boundary of the open pit 1. The new position of the tailings dam is to the west of open pit 2, on the opposite side of the D4380 Provincial Road. This revised layout will avoid the following sensitivities identified during the site sensitivity analysis: ■ Rocky ridges are defined as landscape features with a slope of 5 ° or more such as hills, koppies and gorges and kloofs. Ridges are important for the conservation of biodiversity as they have a high propensity for the occurrence of plant and animal SSC and they serve as wildlife corridors in highly developed a reas. The eastern boundary of the tailings dam was located well within the 200m buffer of the rocky ridge. This has now been avoided through the revised site layout ; ■ Wetlands are defined according to the National Water Act , 1998 ( Act No. 36 of 1998 ) (NWA) as: “land which is transitional between terrestrial and aquatic systems where the water table is usually at or near the surface or the land is periodically covered with shallow water, and which land in normal circumstances supports or would support vegetat ion typically adapted to life in saturated soil.” The DWS have recommended a buffer of 100 m around all wetlands in South Africa, according to the NWA. The tailings dam was located over secondary drainage lines, this has now been avoided through the revise d site layout and by reducing the total footprint of the tailings dam from 124 ha to 69 ha; and ■ The numerous hills within the region are known to contain several historic Langa settlements, including Segopa, Magope, Fothane, Matlhogo and Ditlotswane. These sites are intricately associated with the historical events within the region, including the 1854 Siege of Makapan and subsequent socio - political history and establishment of locations. The original location of the tailings dam was located on these hills, which has now also been avoided through the revised site layout.

161. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 140 The revised layout of the tailings dam is therefore the preferred alternative based on the sensitivities avoided as well as the reduced footprint. This alternative will therefore be assesse d further during the EIA phase. There are also two process alternatives under consideration relating to the disposal of tailings material. The applicant is considering the use of paste thickeners which will result in the thickening of the tailings which w ill have several benefits when compared to conventional tailings thickening, these include: ■ Reduction of water sent to the tailings dam by 50%, result ing in a significant overall reduction in water consumption; ■ Due to the hi gh solids content, results in a reduction of the area required for a tailings dam; ■ Due to the fact that there is little free water in the tailings , seepage from the tailings dam is greatly reduced; ■ Due to the reduction in slurry volume being deposited , there is a potential reduction in e nergy required for pumping; and ■ Once deposited, the paste dries out similarly to conventional thickener underflow. 16.1.2 Waste Rock Dump There were two options under consideration for the l ocation of the WRD, separated by the D4380 Provincial Road. As per the o riginal site layout map, waste rock dump option 1 is located to the north of the road and has a n approximate 169 ha footprint. Waste rock dump option 2 is located to the south of the road and has a n approximate 161 ha footprint. The revised layout aimed to avoid similar sensitiviti es as discussed above. From an ecological perspective, waste rock dump option 2 was located on a wetland, therefore WRD option 1 is considered more favourable. The total footprint of WRD option 1 is now approximately 243 ha. WRD option 1 will be considered further durin g the EIA phase. 16.1.3 Concentrator Plant The original site layout of the concentrator plant traversed a secondary drainage line, a provincial road, in close proximity to production boreholes, used for drinking water and located close to the hills of cultural s ignificance. The revised site layout illustrates that the concentrator plant has been shifted west and the footprint has been reduced from approximately 236 ha to approximately 62 ha. The drainage line, provincial road and hills of cultural significance have therefore been avoided. T his revised site layout is therefore the preferred alternative and will be assessed further during the EIA phase.

204. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 183 21.9 Item 2(i)(ix): Measures to avoid, reverse, mitigate, or manage identified impacts and to determine the extent of the residual risks that need to be managed and monitored Table 21 - 10 lists the potential impacts resulting from the p roject activities and provides preliminary mitigation measure s. The project activities have been condensed into the following primary activities: ■ Site clearance activities including vegetation removal, stripping and stockpiling topsoils and subsoils; ■ Development of surface support infrastructure (i.e. haul roads, concentrator plant, conveyo rs, pipelines, workshop, offices, waste storage facilities) and development of mine; ■ Blasting ; ■ Water abstraction and use ; ■ Development of WRD and tailings dam and pollution control dams ; ■ Employment ; ■ Project capital expenditure ; and ■ Rehabilitation .

59. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmenta l 38 9 Item 2(h): Description of the Process f ollowed to r each the P roposed Preferred S ite A p roposed site layout plan has been compiled which outlines areas for the open pits, waste rock dump and process plant ( Plan 4 in Appendix 4 ) . Based on this original site layout plan, a site sensitivity analysis was undertaken to identify the biophysical and social sen sitivities of the project site and to identify those project components that may potentially have an impact on sensitive resources and/or receptors. The environmental and social aspects considered during the site sensitivity analysis included: t errestrial ecology, aquatic ecology , water resources, air quality, land capability, land - use, traffic, cultural heritage and social and health. Site sensitivities were identified through the following process: ■ Desktop review of available literature (i.e. existing specialist studies of the project area, guideline documents including Environmental Management Frameworks (EMFs ); ■ Review of available aerial imagery of the project area and identification of potential areas of sensitivity (i.e. wetlands, settleme nts etc.) ; ■ Areas of sensitivity were identified based on specialist expertise during site surveys; ■ A rating of the potential environmental and social sensitivities were provided and based on specialist expertise and guideline/reference documents; and ■ All s ensitive areas identified were mapped using a Geographic Information System (GIS). A sensitivity plan has been generated for each specialist area; these maps have been appended to this report as Plans 16 to 26 in Appendix 6 . The terrestrial and aquatic ec ology, water resources, cultural heritage, traffic and social and health aspects were identified as key resources/receptors with a medium to high sensitivity to the origin ally proposed site layout plan. Th e analysis resulted in the following sensitivities being identified based on the proposed site layout: ■ Surface water : the primary water resources were highlighted as streams of high sensitivity as these water resources are linked to various drainage lines within the project area. All other secondary strea ms/drainage lines have been assigne d a medium sensitivity. These streams and drainage lines would be traversed and/or mined through; ■ Ground water: the nearest production boreholes are located along the south eastern corner of the plant area which currently serves the Ditlotswana community; ■ Wetland: one of the site options of the waste rock dump may potentially impact a wetland feature;

101. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 80 13 Item 2(h)(iv): The Environmental A ttributes associated with the S ite 13.1 Type of Environment Affected by the Proposed A ctivity 13.1.1 Topography The project site is relatively flat with the exception of the mountainous area in the north - west corner and some isolated rocky outcrops and ridges. The most significant of these rid ges is Malokongskop situated on the eastern side of the project site . The topographical model ( Plan 6 in Appendix 5 ) indicates that t he elevation of the project site increases from 955 metres above mean sea level (mam sl) in th e Mogalakwena River valley to 1265 mamsl on the Malokongskop Ridge. The Mogalakwena River valley runs through the southern portion of the prospecting right area with the Malokongskop Ridge located to the north of the project site. The majority of the project site has gentle slopes of less than 3.5 ° . Moderate slopes of between 3.6 ° and 12.1 ° occur at the foot of the ridge areas. The steepest slopes occur on the ridges and range between 12.2 ° and 46.8 ° . The slope aspect of the project site falls in different directions . 13.1.2 Climate Limpopo province experiences warm wet summers and dry winters. In summer, unstable atmospheric conditions result in mixing of the atmosphere and rapid dispersion of pollutants. In contrast, winter is characterised by atmospheric stability caused by a persistent h igh pressure system over South Africa. Preston - Whyte and Tyson (1988) describe the atmospheric conditions in the winter months as highly unfavourable for the dispersion of atmospheric pollutants. There are temperature variations throughout the year. These vary greatly within the daily cycle and according to location, vegetation cover, wind reach, and the presence of any large water bodies. Site specific Meso - scale Model ( MM5 ) meteorological data for full three calendar years ( January 2011 – December 2013) was obtained from Lakes Environmental Consultants in Canada to determine local prevailing weather conditions. This dataset consists of surface data, as well as upper air meteorological data . The sections that follow provide a summary of the data obtained. 13.1.2.1 Temperature Air temperature is important, both for determining the effect of plume buoyancy (the larger the temperature difference between the plume and the ambient air, the higher the plume is able to rise), and determining the development of the mixing and inversion layers. The t hree -

186. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 165 21.3.12.3.1 Key Informant Interviews Interviews will be conducted with key Healthcare personnel from several Healthcare facilities. The objective here is to gain a better understanding of the structure and capacity of the local heal th system and also to enquire what health statistics were available at the local level and where possible obtain authorised copies of statistics and reports. These interviews will be conducted with the health personnel at these facilities, using a semi - str uctured questionnaire. This will contain specific questions about health, social and environmental determinants but with a different emphasis, depending on the level and role of each key informant being interviewed. Interviews and discussions will be open and conducted in English and Sepedi. 21.3.12.3.2 Focus Group Discussions W omen groups will be consulted during the FGD as they are generally considered to be the gatekeepers to family health and usually have a good understanding of critical issues that influence heal th at the community and ho usehold level. T his will allow for a high level understanding of the health challenges, from both a biophysical and social health perspective. All discussions will be conducted in Sepedi, as this is the most widely spoken language in the Mokopane area. 21.3.12.4 Impact Assessment and Reporting E xisting evidence will be used to rank the likelihood and consequence of the identified potential health impacts to assess their significance and prioritis e them for mitigation . M easures , including al ternative options, to avoid/mitigate negative and enhance positive impacts resulting from the project at the relevant project stage will be recommended. These results will be presented in a community health impact assessment. 21.3.13 Visual The objective of the v isual impact assessment is to identify sensitive visual receptors and key viewpoints that will be impacted on by the project, taking into account visibility aspects. A change in the land use of the project area from rural agricultural activities associated with subsistence farming and livestock grazing and natural Bushveld to mining may change the topography, visual aesthetics and sense of place of the project area and surrounds. 21.3.13.1 Identification of Visual Receptors The study will establish the visual recepto rs that area likely to be affected, and to what degree they are likely to be affected. The potential visual receptors within the project area and surrounds include residents of the villages within the project area namely: Basogadi, Malokong, Mothoathoase a nd Sepharane as well as residents of the villages within 10 km of the project area including but not limited to: Ditlotswana, Eseldrift, Ga - Mokwena, Groesbeek, Haakdoring, Kaditshwene, Limburg, Lyden, Malokongskop, Mapela, Mokamole, Mosate, Pudiakagopa, Ro oivaal and Taolome.

119. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 98 Figure 13 - 8 : Plant SSC recorded on S ite ( Combretum imberbe (Leadwood); Scadoxus puniceus (Royal Paint Brush) and Sclerocarya birrea (Marula)) 13.1.9 Fauna The Commiphora marlothii – Heteropogon contortus Rocky Woodland habitat is regarded as the most sensitive faunal habitat. Rocky ridges are defined as landscape features with a slope of 5 ° or more such as hills, koppies and gorges and kloofs. Ridges are important for the conservation of biodiversity as they ha ve a high propensity for the occurrence of plant and animal SSC and they serve as wildlife corridors in highly developed areas. The guidelines for development of ridges by the Gauteng Department of Agriculture and Rural Development (GDARD) were adapted for the ridges in the Limpopo Province as best practice as there is no relevant policy available for the Limpopo Province. The guidelines stipulate that a 200 m buffer should be applied around ridges and rocky outcrops. Rocky outcrops have been delineated and are represented in Plan 13 in Appendix 5 . The following sections provide a description of the fauna expected to occur within and around the project site. 13.1.9.1 Mammals Approximately 171 mammal species occur in the region (SIBIS 2013) . It must be noted that som e of these species are sensitive to habitat and in some instances; the likeliness for them to occur is minimal. Relatively unspoilt habitat exists withi n the vicinity of the project site and although the presence of many of these species is not confirmed, there is a possibility that they may still occur on the project site.

215. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 194  Eriksson, P. G., Altermann , W. & Hartzer, F. J., 2006. The Transvaal Supergroup and its precursors. In: M. R. Johnson, C. R. Anhaeusser & R. J. Thomas, eds. The Geology of South Africa. Johannesburg / Pretoria: The Geological Sociaty of South Africa, Johannesburg / Council for Geos cience, Pretoria, pp. 237 - 260.  Esterhuysen, A., 2003(a). Phase 1 & Phase 2 Report Makapan Valley Project: Heritage and Archaeological Resources Development Project, University of the Wiwatersrand: Unpublished report.  Esterhuysen, A. B., 2003(b). The Makapa n Valley and the Excavation of the Cave of Gwasa. The Digging Stick, 20(3).  Esterhuysen, A. B., 2006. Let the Ancestors Speak: an archaeological excavation and re - evaluation of events prior and pertaining to the 1854 siege of Mugombane, Limpopo Province, S outh Africa, University of the Wiwatersrand: Unpublished PhD dissertation.  Esterhuysen, A. B., 2007. Ceramic alliances: pottery and the history of the Kekana Ndebele in the old Transvaal. In: N. Swanepoel, A. B. Esterhuysen & P. Bonner, eds. Five Hundred Y ears Rediscovered: Southern African Precedents and Prospects. Johannesburg: Wits University Press, pp. 197 - 215.  Esterhuysen, A. B., 2010. Excavations at Historic Cave, Makapan's Valley, Limpopo: 2001 - 2005. South African Archaeological Bulletin, 65(191), pp . 67 - 83.  Esterhuysen, A. B., 2012. 'A Sanke Cannot have Two Heads': Understanding the Historical and Recent Politics of Succession as Evidenced in the Material and Oral Record of the Kekana Ndebele. Journal of Southern African Studies, 38(2), pp. 319 - 332.  Esterhuysen, A. B., Sanders, V. M. & Smith, J. M., 2009. Human skeletal and mummified remains from the AD1854 siege of Mugombane, Limpopo South Africa. Journal of Archaeological Science, Volume 36, pp. 1038 - 1049.  Esterhuysen, A. & Smith, J., 2007. Storie s in Stone. In: P. Delius, ed. Mapumalanga: History and Heritage. Pietermaritzburg: University of Kwa - Zulu Natal Press, pp. 41 - 68.  Fenger, J. (2002). Urban air quality, in J. Austin, p. Brimblecombe and W. Sturges (eds), air pollution science for the 21st century. Elsevier. Oxford university press, New York, 600PP.

14. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental v TOR Terms of Reference Tph Tonnes Per Hour Tpm Tonnes Per Month WML Waste Management Licence

190. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 169 21.3.14.1 Field Survey Primary data collection through a reconnaissance field survey will aim to identify record and document tangible heritage resources that may occur in the project area. The survey will be completed following a structured, extensive survey methodology. An archaeological reconnaissance will be undertaken to identify and record archaeological resources within the impact footprint. Furthermore, burial grounds and graves that may exist in the impact footp rint will be recorded and documented. 21.3.14.1 Literature Review Evaluation of heritage significance will be based on information collected during a focused literature review. This information will be reviewed and updated to address specific heritage resources ide ntified during the field survey. Where necessary supplementary secondary data will be sourced and reviewed to provide more context to the identified heritage. Findings from other specialists will also be integrated into this evaluation to take into account aspects such as Indigenous Knowledge Systems Significance (IKS), genius loci (sense of place) and other intangible attributes. 21.3.14.1 Impact Assessment and Reporting Ratings will be assigned to each identified heritage resource using a specifically designed mat rix that incorporates criteria for assessment stipulated in the NHRA as well as employing international best practice. Assessment of impacts on identified heritage resources will be undertaken employing an impact matrix taking into account extent, duratio n, intensity and probability of impacts occurring. Impact ratings will in addition take into account the significance value assigned to identified heritage. A SCF Report will be compiled to outline requirements from SAHRA and/or LIHRA. This report will als o stipulate in non - technical terms how the requirements need to be integr ated and implemented in the EMPr . 21.3.15 Traffic This study will be compiled to determine the significance of increased heavy duty vehicles on the surrounding project site road network. The traffic impact assessment will include the following steps. 21.3.15.1 Trip Generation, Assignment & Capacity Analyses The following steps will be undertaken as part of the traffic modelling: ■ Preparation of a trip generation table to define the traffic generated by the site. The material from the proposed mine will either be transported via road, then onto rail in Mokopane and onwards to the nearest port; or via road, directly to Durban/Richards Bay for export. The scope of this EIA is limited to the potential impac ts associated with

33. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Di gby Wells Environmental 12 Source: VMIC, February 2014 Figure 5 - 1 : Process Flow Diagram of the Concentrator Plant 5.2.4 Waste Rock Dump The waste rock dump (WRD) will be crea ted during the development of the open pit. Waste rock material will be transported to the WRD using Load Haul Dump (LHD) vehicles. An overall slope angle of 50 degrees is proposed for the WRD. The WRD is proposed to have a footprint of 243 ha . 5.2.5 Tailings Dam There are currently t wo alternatives under consideration for the development of the tailings dam. The tailings generated fr om the concentrator plant is proposed to be thickened by either conventional thickening or paste thickening. In terms of past th ickening, t he underflow can contain up to 75 - 85 % of solids. There are several benefits to paste thickening, these include: ■ Reduction of water sent to the tailings dam by 50%, result ing in a significant overall reduction in water consumption; ■ R eduction of the footprint area required for a tailings dam , due to the high solids content ; ■ Reduced seepage from the tailings dam as a result of less free water in the tailings material; ■ En ergy savings d ue to the reduction in slurry volume being deposited through pum ping ; and ■ Once deposited, the paste dries out similarly to conventional thickener underflow. P aste thickening requires careful design of the entire deposition system, with displacement pumps typically required to move the material. It must be physically p ossible to produce

176. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 155 project. The projects potential contribution toward climate change will be assessed by determining the radiative forcing change it could bring about. The risk of climate change to the project will assess changes in temperature, floodlines, weather events etc. and what this could mean for project planning. 21.3.5.5 Mitigation and Monitoring The mitigation measures proposed will be both to reduce the projects GHG emissions as well as to prepare for the climate change scenarios that could be expected. Mitigation measures will be focused on the emission sources and climatic aspects that pose the most risk. The monitoring programme will be designed to measure the projects GHG e missions through secondary sources to determine whether it is increasing or decreasing from the status quo estimation. 21.3.6 Flora The flora specialist study will involve a number of tasks, to identify potential sensitive vegetation habitats as well as SCC so t hat these can be avoided and/or trans located, if required. The flora survey will be completed in adherence to national and provincial legislation. The potential impacts of the proposed mining development include direct impacts, such as the removal of ha bitat due to clearing, as well as indirect impacts, such as erosion, the estab lishment of alien plant species and habitat fragmentation . 21.3.6.1 Baseline Investigation For vegetation, broad habitats will be defined using aerial imagery. . In addition, the follow ing literature and databases will be used to generate expected species lists and to ascertain the likelihood of the presence of SSC on site: ■ PRECIS (Pretoria Computerised Information System). This database provides taxonomic information for plant species o ccurring in southern Africa and follows the format of Germishuizen and Meyer, 2003. It is updated every two months and is supplied by SANBI. It is accessed on the Plants of Southern Africa (POSA) website; ■ SIBIS: SABIF - South African Biodiversity Informati on Facility established by the Department of Science and Technology (DST); and ■ Threatened Species Programme (TSP) listing in collaboration with the National Botanical Institute (NBI)]. 21.3.6.2 Field Investigation A field investigation will be undertaken to iden tify the flora species, after which the sensitivity of the project site will be determined from a flora perspective. Impacts to flora will then be identified. The methodology for the field investigation will be stratified random sampling

121. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 100 13.1.9.3 Reptiles Approximately 13 reptiles and 15 frog species occur in the grid square in which the study occurs (SARCA, 2014 ), none of which are listed as having Red Data status, however there are 226 reptile and 57 amphibian species found in the Limpopo Province. Eleven herpetofauna have a mediu m to high propensity to occur within the project site . 13.1.9.4 Ma cro - invertebrates (Spiders, Scorpions, Beetles and Butterflies) According to the Animal Demography Unit (ADU) (2015), all three genera of baboon spiders, Ceratogyrus, Harpactira (spelt Xarpactrica in the NEMBA Schedule) and Pterinochilus occur in the Limpo po Province, however there are no ne record ed for grid squares 2328DC and 2328DD. A ll three genera of scorpions, Hadogenes, Opisthacanthus and Opistophthalmus occur in the Limpopo Province, however there are no ne recorded for grid squares 2328DC and 2328DD (ADU,2015). According to Picker, et al (20 14), 5 of the genera of Tiger beetles, 1 genera of Monster Tiger beetle, 1 gene ra of Velvet Ground beetle and 1 genera of Fruit Chafer beetle are most likely to occur with in the project site. According to ADU 2015, 14 089 species of butterflies occur in the Limpopo province, no species have been recorded in the square 2328DC, 9 species have been recorded in QDQC 2328DD, none of which are protected . Please refer to Appendix 8 for the full list of macro - invertebrate species that may potentially occur within the project site. 13.1.10 Wetlands The National Freshwater Ecosystem Priority Areas (NFEPA) contains strategic spatial priorities for conserving the country’s freshwater ecosystems and supporting sustainable use of water r esources (Nel, et al., 2011). The identified wetland areas play important functions such as the enhancement of water quality, attenuation of floods and biodiversity support. The NFEPA wetlands have been ranked in terms of importance to the conservation of biodiversity. Plan 14 in Appendix 5 illustrate s the different NFEPA wetlands present within the project site and in the immediate surrounding area. The Mogalakwena River is classified as a Mo derately Modified NFEPA river (C lass C ). Plan 15 in Appendix 5 pr ovides the desktop wetland delineation undertaken for the project site. 13.1.11 Aquatic Ecology The Limpo po Conservation Plan encompasses not only terrestrial systems but also crucial aquatic ecosystems. It integrates information from sources including documents compiled for the South African River Health Program (RHP). The range of rankings range between A (Natural) and F (critically modified). Those aquatic ecosystems, managed on a quaternary catchment level, that have been determined to be healthy are given a class or ranking of A or B depending on the degree of

174. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 153 21.3.4.2 Dispersion Modelling Potential emissions from the recycling process will be modelled to determine the ambient air quality concentrations using AERMOD. The AERMOD model is capable of providing ground level concentration estima tes of various averaging times, for any number of meteorological and emission source configurations (point, area and volume sources for gaseous or particulate emissions), as well dust deposition estimates. Analysis of modelling results will clearly show: ■ The predicted zones of maximum incremental ground level impacts; ■ The zone of maximum predicted cumulative ground level impacts of identified pollutants; ■ The impact assessment will be undertaken looking at the operations of the proposed mining; ■ Evaluatio n of potential for human health and environmental impacts; and ■ Evaluation of predicted air pollutant concentrations based on local ambient air quality standards and guidelines. The result of the dispersion modelling will be contour maps presenting the re sults of the assessment. Comparison of the predicted concentrations will be made with the ambient monitoring data (if available) and air quality standards to determine compliance. 21.3.4.3 Impact Assessment and Reporting Levels of pollutants and prevailing meteor ological conditions relevant to the dispersal of pollutants will be incorporated with the predicted ground level concentration in assessing potential impacts to sensitive receptors in the vicinity of project. The anticipated impacts of the proposed project on the ambient air quality of the area will be evaluated in detail and discussed. Recommendations will be provided regarding the mitigation and management of the identified potential impacts. 21.3.5 Green House Gas (GHG) Assessment The estimated GHG footprint for the project will be developed in accordance with the World Resources Institute (WRI) and World Business Council for Sustainable Development (WBCSD) “GHG Protocol: Corporate Accounting and Reporting Standard” (2004). Even though the standard is intended to provide guidance on accounting for and reporting on GHG emissions at the organisational level, the standard can be applied to individual projects. The GHG emissions will be calculated based on consumption of materials that contribute to climate change. The carbon footprint will take cognisance of Scope 1, 2 and 3 emissions, where practical. Definitions for the various scopes are given below ( WBCSD/WRI , 2004):

218. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 197  Kleynhans CJ. 2007. Module D: Fish Response Assessment Index in River EcoClassification: Manual for EcoStatus Determination (version 2) Joint Water Re search Commission and Department of Water Affairs and Forestry report. Water Research Commission.  Klingebeiel, A., & Montgomery, P. (1961). Land Capability Classification. Agricultural Handbook No.210. Washington: USDA  Kopytoff, I., 1987. The internal Afri can Frontier: the making of African political culture. In: The African Frontier: The Reproduction of Traditional African Societies. Bloomington: Indiana University Press, pp. 3 - 84.  Kotze, D., & Breen, C. (1994). Agricultural Land - Use Impacts on Wetland Fun ctional Values. Pretoria: Water Research Commission.  Kotze, D., Marneweck, G., Batchelor, A., Lindley, D., & Collins, N. (2007). A technique for rapidly assessing ecosystem services supplies by wetlands. Mondi Wetland Project.  Kusel, U., 2005. Cultural Her itage Resources Impact Assessment on Malokong Hill, African Heritage Consultants cc: Unpublished report (2005 - SAHRA - 0053).  Kusel, U., 2007. Cultural Heritage Resources Impact Assessment of the Farms Groothoek 220 KR, Nyhoffsbult 231 KR and Zwartkop 219 KR, Sterkrivier Naboomspruit, Limpopo, African Heritage Consultants cc: Unpublished report (2007 - SAHRA - 0506).  Lakes Environmental Software, 2015. AERMET_MET156291_Mokopane. Accessed From www.weblakes.com  Latham, A. G. & Herries, A., 2004. The Formation and Sedimentary Infilling of the Cave of Hearths and Historic Cave Complex, Makapansgat, South Africa. Geoarchaeology: An Internation Journal, 19(4), pp. 323 - 342.  Lombard, M. et al., 2012. South African and Lesotho Ston e Age Sequence Updated (I). South African Archaeological Bulletin, 67(195), pp. 123 - 144.  Longridge, L., 2013. Pamish Investments Number 39 (Pty) Ltd. Prospecting Report (In respect of Prospecting Right No (LP 30/5/1/1/2/95PR) Farms: Vliegekraal 783 LR, Vog elstruisfontein 765 LR, Vreisland 781 LR & Bellevue 808 LR, s.l.: Johannesburg: VM Investment.  Longridge, L., 2014. Pamish Investments Number 39 (Pty) Ltd. Prospecting Report (In respect of Prospecting Right No (LP 30/5/1/1/2/95PR) Farms: Vliegekraal 783 L R,

201. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 180 ■ On submission of application ( March 2015); ■ Submission of Scoping Report for comment ( March 2015); and ■ Submission of EIA R eport for comment (May 2015). 21.7 Item 2(i)(vii): Particulars of the Public P articipation P rocess with r egard to the Impact Assessment Process that will be C onducted The purpose of the PPP for the EIA phase is to enable I&APs to verify that their issues have been captured and responded to in the Impact Assessme nt Process undertaken for the project and for the EAP to provide feedback regarding the specialist studies which were undertaken for the EIA. The following section provides the activities which will be u ndertaken as part of the impact assessment phase of the EIA. 21.7.1 Steps to be Taken to Notify Interested and Affected Parties I&APs will be informed of the availability of the EIA / EMP report for public comment via email, letters and SMS. 21.7.2 Details of the Engag ement Process to be Followed The following activities will be undertaken as part of the EIA. A series of meetings will be undertaken and will include: Meetings with Traditional Councils: Meetings will be held with the Bakenberg and Mapela Traditional Counc ils. Focus Group Meeting: A focus group meeting will be held in Mokopane with the district and local municipalities, NGOs, businesses, commercial farmers and other key stakeholders will be invited to attend this meeting; Public Meeting: A public meeting will be held on a Saturday at the Bakenberg Stadium. The date and venue for the public meeting will be announced in emails, letters and SMS. The meeting will also be advertised by laud hailing in all the affected villages. Village Meetings: Due to the mi st rust of the community of the Traditional Councils and the difficult logistics of getting people to attend the Public Meeting , it is recommended that individual meetings be held with the villages during the Impact Assessment Phase. At all the meetings, f eedback with regards to the specialist studies undertaken will be shared by means of a formal PowerPoint presentation . Sepedi and Afrikaans translation s will be provided as relevant . All comments made at the meetings will be captured in the CRR. Table 21 - 9 provides a summary of activities to be undertaken as part of the EIA PPP.

117. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 96 cinerea (Sickle Bush) was present, it was not found to be invasive. An example of this vegetation unit is shown in Figure 13 - 6 . Figure 13 - 6 : Landscape of the Acacia tortilis – Eragrostis rigidior 13.1.8.3 Commiphora marlothii – Heteropogon contortus Granite outcrops provide a unique habitat for plant species and were colonised by species not found in the open savanna areas of the project site. Such species include Acacia nigrescens (Knobthorn), Steganotaenia araliacea (Carrot Tree) on north - west facing slopes and Commiphora marlothii (Paperbark Corkwood) , a species restricted to rocky outcrops (often granite) . An example of this vegetation unit is shown in Figure 13 - 7 . Figure 13 - 7 : Landscape of the Commiphora marlothii – Heteropogon contortus

35. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Di gby Wells Environmental 14 5.2.7 Waste Management Both general and hazardous waste will be generated on the project site. These wastes will need to be handled, separated, stored and disposed of according to their classificat ion . The following waste facilities are anticipated to be constructed as part of the project: ■ Oil trap at vehicle washbay and workshop areas; ■ Settling ponds as part of the concentrator process; ■ P CDs; ■ Sewerage treatment p lant ; and ■ General waste temporary st orage facilities. 5.2.8 Power Requirements The project site is located 20 - 30 kilometres (km) from a planned 400 to 132 kiloVolt (kV) substation along a new 400 kV powerline. A separate EIA process will be undertaken for the new powerline and associated infrastr ucture. The required infrastructure to connect to this power source will be considered as part of a separate EIA process. The project would therefore be able to draw its power from this substation. It is estimated that approximately 10 Megawatts of power would be required for the operation of the proposed mine and associated infrastructure . Generators may be requi red for the construction phase , although sufficient power may be available from Eskom ’ s existing transmission lines in the project area. 5.2.9 Road Infrastructure The project site is divided by the D4380 Provi ncial Road. The northern section of the pro ject site can be accessed via the D3534. The southern section of the project site can be accessed via the D3507 . Both roads are secondary roads off the D4380 Provi ncial Road. These municipal roads are double - lane tarred roads which are at present, in good condition . The material from the proposed mine will either be transported via road, then onto rail in Mokopane and onwards to the nearest port; or via road, directly to Durban/Richards Bay for export. The scope of this EIA is limited to the potential impa cts associated with the use of roads only and excludes the potential impacts associated with the rail and port. Haul roads will be constructed along hanging wall and footwall of both open pits. The haul roads will be constructed between the open pits, WR D, tailings dam and to the concentrator plant. It is planned that there will be one haul road crossing over the D4380 Provi ncial Road to access the open pit to the south. The width of the haul road is expected to approximately 25 m in width and a combined length of 13 km. The haul roads will be developed using crushed waste rock, which will be compacted and treated with dust - a - side (dust suppressant).

58. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmenta l 37 8 Item 2(g): Period for which the Environmental Authorisation is R equired Table 8 - 1 outlines the project’s anticipated timeframe should environmental authorisation be granted. Environmental authorisation is required for the period of the LoM, which is 30 years. Table 8 - 1 : Project Timeframe Activity Date Time Period Construction 16 November 2017 1.5 years Commence Production 24 May 2019 30 years Source: Bushveld Project Schedule, December 2014

111. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 90 13.1.6 Groundwater 13.1.6.1 Groundwater Resources During November 2014 , a hydrocensus was undertaken to gather data on the curr ent use and quality of groundwater resources within and around the project site. Groundwater levels were measured and samples were taken from each borehole identified to determine the baseline conditions of the local aquifer. During the hydrocensus a total of 73 boreholes were identified , as listed below . Refer to Plan 10 in Appendix 5 for the locations of the boreholes . ■ 1 borehole was equipped with a wind pump that was not in use; ■ 8 boreholes were equipped with hand pumps, but were not in use; ■ 33 were priv ate boreholes (27 of the 33 were in use) ; and ■ 31 boreholes are municipal or DWS boreholes (28 used for community water supply). Thirty - six (36) of the 73 boreholes were open and accessible for groundwater monitoring and water sampling purposes. These bore holes are used primarily for domestic/gardening or as community water supply sources. The water levels in the surveyed area varied between 49.76 metres below ground level (mbgl) t o 0.67 mbgl. 13.1.6.1 Groundwater Quality During the hydrocensus , s ix groundwater sa mples representative of the project site were taken and sent for inorganic analysis to Aquatico (Pty) Ltd, a SANAS accredited laboratory in Pretoria. The ground water quality results were benchmarked against the SANS 241:2011 standards for drinking water a nd are shown in Table 13 - 7 . Sample VBH 23 (Mosate village) was taken from an open/uncovered borehole with a steel casing and is not in use. Sample VH75 (Rooivaal village) was sampled from a household borehole and the other four boreholes (VBH40, VBH51, VBH58, VBH67) were sampled from community water supply bor eholes across the project site. The Piper diagram presenting the groundwater characteristics ( Figure 13 - 4 ) shows that groundwater und erlying the p roject site plots in the left quarter , indicating calcium - magnesium - bicarbonate dominance – t ypically clean or recently recharged ground water. The following groundwater quality observations were made: ■ Boreholes VBH 51 and VBH 67 fall in the C lass I water qua lity range, of SANS 2 41:2011 drinking water guidelines. Borehole VBH51 is located west from Eseldrift village and represents an up gradient water sample. Borehole VBH67 is located outside the village near the Mapela Traditional Council; ■ Boreholes VBH5 8 i s located along the south ern boundary of the project site , near the village of Sepharane. The water quality fall s in the Class I I water quality range due to

170. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 149 21.3.1 Soil Baseline soil information was obtained using published South African Land Type Data. Land type data for the proj ect site was available from the Institute for Soil Climate and Water (ISCW) of the Agricultural Research Council (ARC) (Land Type Survey Staff, 1972 – 2006). A field survey will be undertaken to determine the soil characteristics of the project site. The project site w ill be traversed by vehicle and on foot. A hand soil auger w ill be used to determine the soil type and depth. The soil w ill be hand aug u red to the first restricting layer or 1.5 m depth. Soil survey positions w ill be recorded as waypoints usi ng a handheld GPS. Landscape features such as existing open trenches (if any) w ill used t o determine soil types and depth. The soil forms (types of soil) found in the landscape w ill be identified using the South African soil classification system namely; S oil Classification: A Taxonomic System for South Africa (Soil Classification working group, 1991). The topsoil (0 - 300 mm) and subsoil (300 – 600 mm ) of the dominant soil forms w ill be sampled. Samples w ill be analysed for soil acidity and fertility indica tors as follows: ■ pH ( water ); ■ Extractable cations such as Na, K, Ca, Mg ; ■ Cation Exchange C apacity (CEC) ; ■ Carbon content; and ■ Phosphorus (Bray1). 21.3.2 Surface Water The objective of the surface water assessment is to further evaluate the identified impacts and m itigation measures to prevent/ reduce the identified potential water quality and quantity impacts to the Borabela River, Mogalakwena River and Sterkrivier. Surface water quality and quantity may potentially be impacted on from the proposed open pits, associ ated surface infrastructure namely, WRDs, topsoil strip stockpiles, pollution control dams, proposed roads and conveyors. There may also be disturbance to drainage lines around the proposed pit activities. The following methodology will be followed to unde rtake the surface water assessment. 21.3.2.1 Baseline Description A further desktop hydrology assessment will be conducted to update the surface water quantity baseline description including the description of the affected catchments, the streamflow and modelled f lood peak flows (1:50 and 1:100 year floods) for the delineated sub - catchments.

175. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 154 ■ Scope 1 - Direct GHG emissions: Carbon emissions occurring from sources that are owned or contr olled by the company (e.g., emissions from combustion in owned or controlled boilers, furnaces and vehicles, process and fugitive emissions). ■ Scope 2 - Indirect electricity GHG emissions: Carbon emissions from the generation of purchased electricity, heat or steam consumed by the company. ■ Scope 3 - Other indirect GHG emissions: Carbon emissions which are a consequence of a company's activities, but occur from sources not owned or controlled by the company (e.g., the extraction and production of purchased ma terials; and employee travel to and from work). These materials that will be considered include, but are not limited to, diesel, petrol, air conditioning gas, and process emissions. Consumption of these materials contributes to global GHG emission levels i n various ways. Consumption estimates will be used to calculate the predicted GHG emissions once the project is operational. Once the potential GHG emissions are estimated, the potential risk to climate change will be assessed. This will include the consid eration of the effect that climate change will have on the project. The GHG emissions estimation will be carried out in the following steps: 21.3.5.1 Project Boundary During this phase the project boundaries will be defined. The boundaries will include temporal, s patial, scope (in terms of scope 1, 2 and 3) and gas boundaries (GHGs that are relevant to the project). This phase will identify all components of the project that are material for the inclusion into the GHG estimations. 21.3.5.2 Data Collection and Assessment Onc e the boundary is defined, data collection will commence. This will involve scrutinising the details of the project to identify the data required to estimate the potential GHG emissions. Data will be collected from secondary sources which include feasibili ty studies, scientific literature, manufacturer data sheets and industry standards. 21.3.5.3 GHG Emissions Calculation Once the requisite data is sourced the calculations will be undertaken. The formulae will be based on the most up to date, relevant information a vailable from sources such as the WRI, IPCC, World Bank and country specific studies. All calculations will result in a CO 2 - e estimation that can be used to identify the most significant sources of GHG emissions. 21.3.5.4 Climate Risk Assessment Once the GHG emiss ion potential is quantified the project’s potential to contribute to climate change can be determined. The climate risk assessment does however provide two points of view. Firstly it considers the potential contribution the project could have toward climat e change, and secondly it looks at the potential impacts that climate change could have on the

181. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 160 21.3.8.3 Wetland Functional A ssessment In accordance with the method described by Kotze et al. (2007), an ecological functional assessment of the associated wetland will be undertaken. This met hodology provides for a scoring system to establish the services of the wetland ecosystem. The onsite wetlands are grouped according to homogeneity and assessed utilizing the functional assessment technique, WET - EcoServices, developed by Kotze et al, (2007 ) to provide an indication of the benefits and services. This methodology computes a score out of 4 for each index and provides an indication of the ecological services offered by the different HGM units for th e study area. Results are given in the form of a radial plot showing the relative importance of the 15 indices. Ecoservices rated as high are scored more than or equal to 2.8. 21.3.8.1 Impact A ssessment and Reporting The aim of the i mp act a ssessment is to strive to avoid damage or loss of ecosystems and serv ices that they provide, and where they cannot be avoided, to reduce and mitigate these impacts (DEA, 2013). Offsets that compensate for loss of habitat are regarded as a last resort, after all efforts have been made to avoid, reduce and mitigate. A wetland study report will be compiled to incorporate these aspects. 21.3.9 Aquatic Ecology The objective of the aquatic ecology study is to determine the baseline conditions, potential impacts as well as the mitigation measures prescribed to prevent or reduce the impac t on aquatic ecology. The aquatic assessment will implement the methodologies recognis ed by the R iver H ealth P rogramme and various internationally recognised methodologies. The following methodology will be undertaken for the aquatic ecology study. 21.3.9.1 Water Sampling Water quality analysis will be completed for the project utilising a calibrated water quality meter (EXTECH, DO700). The constituents of water quality which would be comple ted in this analysis include pH and conductivity (μS/cm), d issolved and sat uration percentage of Dissolved Oxygen (DO) and temperature (ºC). In addition to this, laboratory analysis of water will be completed. The analysis will involve the determination of metal content as well as the concentrations of macronutrients such as nitr ate, nitrite and phosphate. The analysis would involve the u se of spectrophotometry applied techniques used in Inductively Coupled Plasma Mass spectrophotometry (ICP - MS) as well as ICP - Optical Emission Spectrophotometry (ICP - OES). 21.3.9.2 Field Survey Broad habi tat characteristics will be described using aerial imagery (if available) . At each site approximately 50 m of river frontage will be assessed, river sections will be selected based on the diversity of habitat at the sites and will usually include runs, rif fles, pools with the

184. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 163 21.3.11.1 Primary Data Collection This will involve an investigative site visit of approximately three weeks. Activities to be undertaken during the site visit will include the following components: ■ S ocio - economic household survey: This will entail a sample survey comprising a maximum of 600 households reside nt in the identified study area. Geo - spatial records of the surveyed households will be kept, questionnaires captured in a custom designed Microso ft Excel or Access database and analysed using descriptive statistics. It is anticipated that ten locally recruited enumerators will be utilised for the purposes of the survey. These enumerators will undergo thorough training pertaining to the a dministrati on of questionnaires; and ■ Focus groups and key - informant interviews: It is anticipated that approximately ten such focus groups/ interviews will be conducted during the site visit. These will include stakeholders including, but not limited to, directly and indirectly affected community members, figures of authority (both traditional and governmental), local service providers and other specialists. Interviews will be transcribed and subjected to thematic analysis in order to present the findings in a meaning ful manner. 21.3.11.2 Compilation of a Detailed Socio - Economic B aseline The compilation of a detailed socio - economic baseline profile will be undertaken based on the information collected through the desktop review and investigative fieldwork. Socio - economic attrib utes to be described in the baseline profile will include, inter alia, demographics and population distribution, prevalent livelihood activities, levels of education and skills, access to basic services, and main challenges faced by the community. 21.3.11.3 Impact Assessment and R eporting The identification, assessment and rating of likely socio - economic impacts that may result from the proposed project will be based on the detailed baseline profile of the affected communities, experience with similar projects in th e area and specialist opinion. These impacts will be pr esented in the social impact assessment report, which will also include the following: ■ Feasible and cost - effective mitigation measures aimed at reducing the severity of adverse impacts, and enhancemen t measures for potential benefits; and ■ A social management plan, which will define practical steps for implementing the recommended mitigation measures. 21.3.12 Community Health The objective of the community health study is to desc ribe and assess the community h ealth impacts around a predefined number of “Environmental Health Areas” (EHAs) including vector related diseases, soil, water and waste related diseases, to name a few. This broad scope ensures that the assessment does not limit its focus to disease - speci fic

192. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 171 21.3.16.1 Fiel d Survey A site visit will be undertaken to d etermine the typical structures and installations that are found within a 3 500 m radius from the proposed open pit area. Based on the field surveys a structure profile will be compiled, which is later used for modelling purposes. 21.3.16.2 Modelling M odelling will be undertaken to determine the expected impact based on planned drilling and blasting methods for the open pit. Various accepted mathematical equations 1 are applied to determine the attenuation of ground vibra tion, air blast and fly rock. These values will be calculated over distance from the project site and shown as amplitude level contours. T hese contours will be overlayed with the location of the various receptors which will provide the potential consequenc e to these receptors. 21.3.16.3 Impact Assessment and Reporting Evaluation of each receptor according to the predicted levels will indicate the level of possible influence and required mitigation if necessary. A blast and vibration impact assessment report will be compiled and will outline the results of the structure profile, modelling and receptor analysis to provide potential impacts and associated mitigation measures. 21.3.17 Noise The baseline noise measurements will be carried out to provide the noise levels of the e xisting soundscape at the relevant surrounding receptors. The scope of work will be car ried out in the following steps. 21.3.17.1 Receptor Identification For the detailed assessment of the focus area, potentially Noise Sensitive Receptors (NSRs) such as surrounding villages and communities will be identified. The co - ordinates of these receptors will be captured using a Geographic Information System (GIS) and then plotted on a map. 21.3.17.2 Field Work and Noise Measurements A site visit will be organised in conjunction with th e client and local landowners, during which baseline noise monitoring will be conducted at the selected NSRs surrounding the proposed activities. All measurements will be taken in accordance with the National Noise Control Regulations, R.154 (10 January 1992) in terms of Section 25 of the Environmental Conservation Act, 1989 (Act 73 of 1989) as well as the SANS 10103:2008 guidelines. Measurements will be for a period 24 hours at the recommended localities. A Cirrus, Optimus Green, precision

183. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 162 21.3.10 Macro - Economy The objective of the economic impact ass essment is to determine the potential economic implications of the project activities and associated infrastructure . The following methodology will be undertaken for the study. 21.3.10.1 Impact Modelling Project data will be used to undertake a modelling exercise w ith the purpose of determining direct effects, but also associated multiplier effects on the local and regional economies. Project data will be used to model direct, indirect and induced impacts. Modelling of impacts will be done using economic models dev eloped on the basis of the provincial and national Social Accounting Matrices (SAMs). Impacts determined through the modeling exercise will include production, value added, employment, skills, household income, and government revenue. Differentiation will be made between impacts that are expected to take place within the local municipality, province, and rest of the country provided the input data is spatially disaggregated. 21.3.10.2 Impact Assessment and Reporting The purpose of this step is to interpret the model ling data and collected information and describe economic implications of the proposed project on the affected economies and economic activities and evaluate their significance. Minutes gathered through public participation process and feedback received fr om interviews with the local stakeholders will be used to ensure that all concerns related to economic changes in the area are addressed in the study. For each phase of the project’s life - cycle, the following groups of impacts will be examined: ■ Impacts d irectly associated with the construction, operation, and closure/rehabilitation ac tivities, where applicable; ■ Secondary impacts that involve the changes in the community structure and economic activities in the environment directly or indirectly affec ted b y the proposed development; and ■ Cumulative impacts that take into account other projects or developments that a re in the pipeline for the area. A qualitative assessment of impacts will be employed throughout; however where feasible economic impact s will a lso be quantified and included in an economic impact assessment report. 21.3.11 Social The objective of the social impact assessment is to identify and assess the likely socio - economic impacts of the project such as employment opportunities and community developm ent. The following steps will be undertaken as part of the study:

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61. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmenta l 40 10 Item 2(h)(i): Details of all Alternatives Considered Alternatives are different means of meeting the general purpose and need of a proposed activity. Alternatives help identify the most appropriate method of developing a project, taking into account location or site alternatives, activity alternatives, process or technology alternatives, temporal alternatives or the no - go alternative. Alternatives also help iden tify the activity with a reduced environmental and/or social impact. With re ference to mining, the nature of the ore deposit determines the mining activities and processes. Furthermore, t he location of the resource determine s the location of the mining operation. These two fa ctors reduce the identification of possible location and /or activity alternatives. The following section provides an overvi ew of the alternatives identified, these include: ■ Site layout alternatives; ■ Technology alternatives; ■ No - go option. 10.1 Site Layout Alternatives The site layout alternatives were identified bas ed on a site sensitivity analysis as described in Section 9 above . The original site layout considered the footprints of the tailings dam, WRD and concentrator plant. A comparison of these layouts and reasoning for shifting the project infrastructure is pr esented in the sections that follow: 10.1.1 Tailings Dam The tailings dam was originally positioned along the eastern boundary of the open pit 1. The new position of the tailings dam is to the west of open pit 2, on the opposite side of the D4380 Provincial Road . This revised layout will avoid the following sensitivities identified during the site sensitivity analysis: ■ Rocky ridges are defined as landscape features with a slope of 5 ° or more such as hills, koppies and gorges and kloofs. Ridges are important for t he conservation of biodiversity as they have a high propensity for the occurrence of plant and animal S pecies of S pecial C oncern (SSC) and they serve as wildlife corridors in highly developed areas. The eastern boundary of the tailings dam was located well within the 200m buffer of the rocky ridge. This has now been avoided through the revised site layout ■ Wetlands are defined according to the National Water Act , 1998 ( Act No. 36 of 1998 ) (NWA) as: “land which is transitional between terrestrial and aquatic systems where the water table is usually at or near the surface or the land is periodically covered with shallow water, and which land in normal circumstances supports or would support vegetation typically adapted to life in saturated soil.” The DWS have r ecommended a buffer of 100 m around all wetlands in South Africa, according to the NWA. The

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214. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 193  Deacon, H. & Deacon, J., 1999. Human Beginnings in South Africa. Cape Town: David Phillip.  Delius, P., 1983. The land belongs to us. Berkley: University of California Press.  Department of Environmental Affairs (DEA, 2012). The Waterberg - Bojanala Priority Area AQMP and Threat Assessment Project Approach. Session 7.1 Presentation to the 7th Annual Air Quality Governance Lekgotla.  Department of Environmental Affairs (DEA, 2012), Deputy Minister Rejoice Mabudafhasi: Launch of Waterberg - Bojanala Priority Area. Date of access: 28August 2014 http://www.gov.za/speeches/view.php?sid=29307#top  DEAT (Department of Env ironmental Affairs and Tourism). (2005). South Africa's National Biodiversity Strategy and Action Plan.  Department of Mineral Resources (DMR). (2004). Retrieved from the Worldwide Web on 5 March 2013, http://www.dmr.gov.za/publications/summary/24 - mining - charter/571 - gg - 26661 - miningcharter - 13 - aug - 2004.html  Department of Mineral Resources. (2014). South Africa's Mineral Industry 2012/2013  D epartment of Rural Development and Land Reform. (2009). Comprehensive Rural Development Framework Programme. Retrieved from http://www.ruraldevelopment.gov .za/phocadownload/Documents/crdp_version1 - 28july09.pdf  Department of Water and Environmental Affairs & Water Research Commission, 2000: Quality of Domestic Water Supplies: Volume 2: Sampling Guide.  Department of Water and Sanitation (DWS), 2006. Best Pra ctice Guideline series.  Department of Water and Sanitation. Business Case for the Limpopo Catchment Management Agency  Desmet, P. G., Holness, S., Skowno, A. & Egan, V.T. 2013 Limpopo Conservation Plan v.2: Technical Report. Contract Number EDET/2216/2012. Report for Limpopo Department of Economic Development, Environment & Tourism (LEDET) by ECOSOL GIS.  Dickens, C., Kotze, D., Mashigo, S., Mackay, H., & Graham, M. (2003). Guidelines for Integrating the Protection, Conservation and Management of Wetlands int o Catchment Management Planning. Pretoria: Water Research Commission.  DWAF. (2005). Apracticle field procedure for identification and delineation of wetlands and riparian areas. Pretoria: Department of Water Affairs and Forestry.

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222. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 201  Pope, C. A and Dockery, D. W. 1992. Acute health effects of PM10 pollution on symptomatic and asymptomatic children. American review of respiratory disease, 145:1 123 – 1128.  Pope, C. A. and Kanner, R. E, 1993. Acute effects of PM 10 pollution on pulmonary function of smokers with mild to moderate chronic obstructive pulmonary disease. American review of respiratory disease, 147:1336 – 1340.  Presidential Infrastructure Coordinating Commission. (2013). A summary of the South African National Infrastructure Development Plan. Retrieved from file:///C:/Users/jurie.erwee/Desktop/Digby%20Wells/  Preston - Whyte, R.A and Tyson, PD, 1988. The Atmosphere and Weather of Southern Africa. Oxford University Press. 374 PP  Prins, F. E. & Hall, S., 1994. Expressions of fertility in the rock art of Bantu - speaking agriculturalists. African Archaeological Review, Volume 12, p p. 171 - 203.  Quantec. (2015). Retrieved January 26, 2015, from Quantec  Robb, l. J., Brandl, C. R., Anhaeusser, C. R. & Puojol, M., 2006. Archaean Granitoid Intrusions. In: M. R. Johnson, C. R. Anhaeusser & R. J. Thomas, eds. The Geology of South Africa. Joh annesburg / Pretoria: Geological Society of South Africa, Johannesburg / Council for Geoscience, Pretoria, pp. 57 - 94.  Robb, L. J., Freeman, L. A. & Armstrong, R. A., 2000. Nature and longevity of hydrothermal fluid flow and mineralisation of granites of th e Bushveld Complex, South Africa. Transactions of the Royal Society of Edinburgh: Earth Sciences, Volume 91, pp. 269 - 281.  Roodt, F., 2008(a). Phase 1 Heritage Resources Scoping Report: Residential development Sepharane, Limpopo, Cultural Resources Consulta nts: Unpublished report (2008 - SAHRA - 0324).  Roodt, F., 2008(a). Phase 1 Heritage Resources Scoping Report: Residential development Sepharane, Limpopo, Cultural Resources Consultants: Unpublished report (2008 - SAHRA - 0324).  Roodt, F., 2008(b). Phase 1 Heritage Resources Impact Assessment: Landfill and Salvage Yard Anglo Platinum Mogalakwena Section, Limpopo, Cultural Resources Consultants: Unpublished report (2008 - SAHRA - 0529).  SABC. (2012). Godi to engage Limpopo communities over mining prospects. Retrieved fro m the Worldwide web on 3 March 2013,

219. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 198 Vogelstruisfontein 765 LR, Vreisland 781 LR & Bellevue 808 LR., Johannesburg: VM Investment Company.  Lovel S.J.2009. Assessment of sampling approaches for a multi taxa invertebrate survey in a South Africa savannah mosaic ecosystem. Austral Ecology, Vol ume 35.  Macfarlane, D., Kotze, D., Ellery, W., Walters, D., Koopman, V., Goodman, P., et al. (2009). A technique for rapidly assessing wetland health: Wet - Health. Water Research Commission.  MacKay, H., Ashton, P., Neal, M., & Weaver, A. (2004). Investment Dtrategy for the Crosscutting Domain: Water and the Environment. Water Research Commission Report No. KV 148/04.  Manahan, S.E., 1991: Environmental Chemistry, Lewis Publishers Inc, United States of America.  Maltby, E. (1986). Waterlogged Wealth: Why Waste the Worlds Wet Places? Earthscan, London. 200 pp  Martini, J. E., 2006. Karsts and caves. In: M. R. Johnson, C. R. Anhaeusser & R. J. Thomas, eds. The Geology of South Africa. Johannesburg / Pretoria: The Geological Society of South Africa, Johannesburg / C ouncil for Geoscience, Pretoria, pp. 661 - 668.  Massyn N, Day C, Peer N, Padarath A, Barron P, English R, editors. District Health Barometer 2013/14.  Meer, T., and Campbell, C. (2007). Traditional Leadership in Democratic South Africa  MetroGIS. (2010). Water berg EMF  MetroPlan. (2005). Mogalakwena SDF  Michael D. R., Cunningham R.B. and Lindenmayer D.B. 2008. A forgotten habitat? Granite inselbergs conserve reptile diversity in fragmented agricultural landscapes. Journal of Applied Ecology45: 11742 - 1752.  Miller , G.T., and Spoolman, S.E. (2007). Living in the environment.  Mines and Communities. (2012). South Africa: More mines closed down by workers. Retrieved from the Worldwide Web on 5 March 2012, http://www.minesandcommunities.org/article.php?a=11940  Mitchell, P., 2002. The Archaeology of Southern Africa. Cambridge: Cambridge University Press.

173. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 152 21.3.3.6 Numerical Model Once the conceptual model is formulated, it will be transformed into a numerical model. The MODFLOW and MT3DMS numerical mo delling packages will be used for this task. The numerical model is calibrated with the available geohydrological data and other mine data collected during the course of this investigation. Scenarios will be simulated to assess the impacts of the project o n the hydrogeological environment during all mining phases. The modelling approach will be as follow s : ■ Calibrate a steady state regional groundwater flow model (undisturbed by mining activities); and ■ Transient model calibration, using time variant informat ion to simulate mine water inflows and contaminant transport. The simulation package Processing MODFLOW Pro (PMWIN Pro), Version 8.0 (Chiang, 2005) will be used to simulate groundwater flow. MODFLOW is a modular three - dimensional finite - difference groundwa ter model published by the U.S. Geological Survey. MT3DMS will be used in conjunction with MODFLOW in a two - step flow and transport simulation .MT3DMS is a modular three - dimensional transport model for the simulation of advection, dispersion, and chemical reactions of dissolved constituents in groundwater systems. 21.3.3.7 Impact Assessment and Reporting A groundwater impact assessment report will be compiled and will include the following: ■ Identification and q uantification of impacts through the numerical modelling scenario’s; and ■ Development of p roposed mit igation and management measures, including a groundwater monitoring programme. 21.3.4 Air Quality The air quality impact assessment will be undertaken as follows: 21.3.4.1 Emissions Inventory T he establishment of an emissions inventory forms the basis for any air quality impact assessment. Air pollution emissions may typically be obtained using actual sampling at the point of emission, or estimating it from mass and energy balances or emission factors which have been establishe d at other, similar operations. The method often adopted is the latter. Emission factors published by the US - EPA in its AP - 42 document “Compilation of Air Pollution Emission Factors” and “Australian National Pollutant Inventory Emission Estimation Techniqu e Manuals” will be utilised .

225. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 204  Tobias, P. V., 1945. Student scientific expedition to the Makapan. WU's Views, 9(5), p. 1.  Underhill, D., 2012. The Earliest Middle Stone Age of Northern South Africa: The Cave of Hearths and Bushman Rock Shelter. University of Southampton Series in Archaeology, Volume 8, pp. 13 - 26.  Urban - Econ. (2006). Mogalakwena Local Economic Development Strategy - 2006.  Van Wyk, E., Breen, C., Roux, D., Rogers, K., Sherwill, T., & Van Wilgen, B. (2006). The Ecological Reserve: Towards a Common Understanding for River Management in South Africa. Water SA, 32(3), 403 - 409.  Vouk, V. 1979. Vanadium. In: Friberg, L. et al., ed. Handbook on the toxicology of metals, Amsterdam, Elsevier - North Holland Biomedical Press, pp. 659 - 674.  Water, M.D. 1977. Toxicology of Vanadium. In: Goyer, R.A. & Mehlman, M.A., ed. Advances in modern toxicology. Vol.2, Toxicology of trace elements, New York, Wiley, pp 147 - 189.  Water Research Commission (WRC), 2005. Water Reso urces of South Africa.  Waterberg District Municipality (WDM). (2011). Mining. Retrieved from the Worldwide Web on 3 June 2011, http://www.waterberg.gov.za  Waterberg District Municipality, 2013 - 2014: Waterberg Mu nicipality Integrated Development Plan, 2010 - 2011.  Waterberg District Municipality (WDM) . (2014). Waterberg District Municipality 2014/15 IDP  WDM. (2009). Waterberg Spatial Development Framework. Retrieved online from http://www.waterberg.gov.za/docs/plans/Waterberg%20SDF%202.pdf  WDM. (2012). Waterberg District Municipality Integrated Development Plan, 2012/2013 Review. Retrieved from the Worldwide Web on 2 March, 2013, http://www.waterberg.gov.za/docs/idp/FINAL%20%20IDP%202013.pdf  Whitlow, R. (1992). Gullying within wetlands in Zimbabwe: An examination of conservation history and spatial patterns. S . Afr. Geog. J., 74 54 - 62.  WHO ,2000. World Health Organisation Air quality guidelines for Europe, 2nd ed. Copenhagen, World Health Organization regional office for Europe (who regional publications, European Series, NO. 91).  WHO ,2004).World Health Organi sation Air Quality Guidelines Global Update, World Health Organisation, October 2005, Germany.

172. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 151 A minimum of six characterisation boreholes are recommended and will be drilled in relatively close proximity to the proposed mining infrastructure areas. They will primarily be used for aquifer characterisation, such as rock permeability evaluation. They can also be used as monitoring boreholes for th e mine operational and post closure phase. An additional t hree boreholes are proposed to be drilled at the proposed tailings dam site with maximum depth of 40 to 60 m , if required. 21.3.3.3 Aquifer T esting It is important that the most strategic and successful bore holes drilled during this investigation be aquifer tested to determine aquifer responses and to calculate the parameters presenting the aquifer hydro - dynamics underlying the investigation area. Boreholes selected for aquifer testing will undergo a calibrat ion test prior to conductin g the constant discharge tests. The aquifer test analysis will be conducted using the FC programme and Aquifer Test Pro software. The aquifer parameter results calculated from these programmes will assist in accurate characterisa tion of the aquifers present at the pro ject site and used as input parameters in the scenario modelling and dewatering design. 21.3.3.4 Groundwater Sampling Water quality samples will be collected following each aquifer test and will be sent to an accredited labora tory in South Africa for chemical analysis. 21.3.3.5 Conceptual Site Model The conceptual model aims to describe the groundwater environment in terms of the following: ■ Aquifers - these are rock units or open faults and fractures within rock units that are sufficien tly permeable (effectively porous) to allow water flow; ■ Interconnections between aquifers; ■ Boundaries that result in the change or inter ruption of groundwater flow; ■ Hydro stratigraphic units - these are formations, parts of formations, or a group of forma tions displaying similar hydrologic characteristics that allow for a grouping into aquifers and associated confining layers; ■ Precipitation, evapotranspiration; ■ Runoff, groundwater head data which yields groundwater flow; ■ Hydraulic parameters; ■ Recharge and discharge areas, exchange of gro undwater and surface water; and ■ Hydro - chemical data including major ions and metals.

178. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 157 for small mammals to move through . The fauna survey will be completed in adherence to national and provincial legislation. The potential impacts of the proposed mining development include direct impacts, such as the removal of habitat due to clearing, as we ll as indirect impacts, such as erosion, the establishment of alien plant species and habitat fragmentation. 21.3.7.1 Baseline Investigation A desktop study will be undertaken to generate a list of fauna species that are found within the study site. The list of p ossible fauna species was generated using various sources, listed below, and from this a list of possible SSC was also created. The following information sources will be consulted: ■ The SIBIS online interactive species distribution map was used to obtain da ta for the distribution of mammals, reptiles, amphibians and terrestrial invertebrates within the greater study area. Data was acquired for the Quarter Degree Squares (QDS) in which the study is located; ■ The potential occurrence of mammals was supplemente d by the species distribution maps in Friedman and Daly (2004), ■ Lists of birds found in the QDS for the study area were determined using online data from the South African Bird Atlas Project (SABAP 2) for 2011; ■ The Convention on International Trade of End angered Species (CITES) species database; ■ The IUCN Red - Data List for South African fauna; ■ National Environmental Management Biodiversity Act (NEMBA 10 of 2004) listed species; ■ The Mammals of Southern African Sub - Region (Skinner & Smithers, 1990); ■ Fauna and Flora Assessment Report for the Proposed Platreef Underground Mine. (Digby Wells, 2013); and ■ BirdLife South Africa, 2014 Checklist of Birds - List of Threatened Species. 21.3.7.2 Field Investigation A field investigation will be undertaken to identify the followin g fauna species , after which the sensitivity of the project site will be determined 21.3.7.2.1 Small M ammals and H erpetofauna Small animals will be recorded through opportunistic sightings of species, tracks and dung and mammals will be trapped using non - fatal Sherma n traps. Herpetofauna will be trapped using and a Line Array or Pit Fall Trap.

182. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 161 inclusion of submerged vegetation. Rough flow estimates will be completed using calibrated flow meters. Clarity will also be measured using a clarity tube. Habitat assessments will be carried out and will be based on Kleynhans (2008) which includes meso - habitats, velocity depth classes, cover features, flow types and sampling methods that will be conducted according to different habitat types. Habitat assessments will be conducted at each separate fish sampling site within a given reac h to produce a comprehensive description of the fish community structures within different available habitats. The IHAS and the IHIA will be used to determine and classify habitat structures associated with the proposed project area. In addition, the Rapi d Habitat Assessment Model (RHAM, RDM (1999)) will be utilised to determine and quantify aquatic habitat features. Diatoms will be utilised to determine the biological integrity and sensitivity of the aquatic biota associated with the proposed project are a. Internationally recognised diatom indices will be applied on samples acquired from relevant sampling sites. The standard FRAI will be completed and in addition fish community structures and diversity will be determined at each site, this information wi ll be investigated as to determine dominant species. The information and specific characteristics on dominant and present fish species, in conjunction with macroinvertebrate data will also allow for the analysis of the current state of the aquatic ecosyste m. 21.3.9.3 Analysis The following assessments/indices will be used : 21.3.9.3.1 Quantitative Analysis ■ SASS5; ■ USEPA: Ephemeroptera, Plecoptera and Trichoptera % contribution index; and ■ Functional Feeding Group Assessment Index. 21.3.9.3.2 Qualitative Analysis ■ Margalef’s Measure of R ichness Index (1961); ■ Shannon - Wieners Diversity Index (1963); and ■ Pielou’s Eveness Index (1986). 21.3.9.4 Impact Assessment and Reporting An aquatic ecological impact assessment will be compiled in which the e cological integrity of the aquatic environment and in dividual biophysical attributes of the systems will be identified and assessed. Mitigation measures will also be presented to prevent or reduce the potential impacts of the project on aquatic ecology.

212. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 191 26 References  Apps P. 1996. Smithers, Mammal of Southern Africa. A Field Guide. Southern Book Publishers.  Ashton, P., Patrick, M., MacKay, H. & Weaver, A. (2005). Integrating biodiversity concepts w ith good governance to support water resources management in South Africa. ISSN 0378 - 4738 - Water SA Vol. 31 No. 4 October 2005  Ashton, P. (2007). Riverine biodiversity conservation in South Africa: current situation and future prospects. Editorial. Aquat ic Conserv: Mar. Freshw. Ecosyst. 17: 441 – 445 (2007)  ASTM D1739 – 98 (Reapproved 2010) “Standard Test Method for Collection and Measurement of Dust Fall (Settleable Particulate Matter)”  Avenant N. 2011. The potential utility of rodents and other small mamm als as indicators of ecosystem “integrity” of South African grasslands. Journal of Wildlife Research, 38 626 - 629.  Baker, M. A., 2006. Stable Isotopic Evidence for the Rise of Oxygen and Reorganization of the Sulfur cycle from ca. 2.4 Ga Duitshland Formatio n, South Africa. Maryland: Unpublihsed Master of Science thesis submitted to the University of Maryland, College Park.  Banzi Geotechnics.(2004).Environmental Management Plan in respect of a proposed exploration programme on the farms Vogelstruisfontein 765 LR, Vliegekraal 783 LR, Vriesland 781 LR for Izingwe Capital (Pty) Ltd.  Barker, O. B. et al., 2006. The Soutpansberg and Waterberg Groups and the Blouberg Formation. In: M. R. Johnson, C. R. Anhaeusser & R. J. Thomas, eds. The Geology of South Africa. Joh annesburg / Pretoria: The Geological Society of South Africa, Johannesburg / The Council for Geosciences, Pretoria, pp. 301 - 318.  Barnes, S. & Maier, W. D., 2002. Platinum - Group Element Distributions in the Rustenburg Layered Suite of the Bushveld Complex, South Africa. In: L. J. Cabri, ed. The Geology, Geochemistery, Mineralogy and Mineral Benificiation of Platinum - Group Elements.. s.l.:Canadian Institute of Mining, Metallurgy and Petroleum, pp. 431 - 458.  Baxter R. P.H.D. Department of Ecology and Resource M anagement, University of Venda, Limpopo Province, South Africa.

223. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 202 http://www.sabc.co.za/news/a/534ed8804cbd4f9b91f3fdfbe46c481f/Godi - to - engage - Limpopo - communities - over - mining - prospects - 20121609  SAHRA, 2013a. Waterberg Group. [Online] Available at: http://www.sahra.org.za/fossil - layers/waterberg - group [Accessed 9 1 2015].  SAH RA, 2013b. Archaean Granite - Gneiss Basement. [Online] Available at: http://www.sahra.org.za/fossil - layers/archaean - granite - gneiss - basement [Accessed 7 1 2015]  Schoeman, J. L., Van der Walt, M., Monnik, K. A., Thackrah, A., Malherbe, J., & Le Roux, R. E. (2000). The Development and Application of a Land Capability Classification System for South Africa. ARC - Institute for Soil, Climate and Water. Pretoria: ARC - ISCW report n o GW/A/2000/57.  Schoeman, J. L., Van der Walt, M., Monnik, K. A., Thackrah, A., Malherbe, J., & Le Roux, R. E. (2000). The Development and Application of a Land Capability Classification System for South Africa. ARC - Institute for Soil, Climate and Water. P retoria: ARC - ISCW report no GW/A/2000/57.  Schwartz, J.1993. Particulate Air Pollution and Chronic Respiratory Disease, Environmental Research, 62(1): 7 - 13  Skosana, D. E., 2012. Why are chiefs recognised in South Africa's new democracy? Issues of legitimacy and contestation in local politics: A case study of chiefly and local government in Vaaltyn, University of the Wiwatersrand: Unpublished MA Thesis.  Smith, B. W. & Ouzman, S., 2004. Taking stock: identifying Khoekhoen herder rock art in southern Africa. Cu rrent Anthropology, 45(4), pp. 499 - 526.  Smith, B. W. & van Schalkwyk, J. A., 2002. The white camel of the Makgabeng. Journal of African History, Volume 43, pp. 235 - 254.  Smith R.L. 1996. Ecology and Field Biology. Harper Collins College Publishers.  Standard s South Africa, 2005: “South African National Standard: Ambient air quality – Limits for common pollutants”, SANS 1929:2005, Edition 1.1, Pretoria: South African Bureau of Standards.  South Africa 1995. Development Facilitation Act, 1995 (Act No. 67 of 1 995).  South Africa 1996. The Constitution of the Republic of South Africa, 1996 (No. 108 of 1996)  South Africa 1998. Local Government Municipal Structures Act, 1998 (Act No.117 of 1998)

132. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 111 and carriage’ is privately owned, it is very often l eased o ut for business purposes (SANRAL , 2012). 13.1.13.14 So cial Challenges T he increase in the number of households, particularly in the rural areas wher e there are minimal services have increased backlogs in electricity provision, housing needs, roads, access to water, and sanitation needs . In particular the foll owing issues impede service delivery in the local m unicipality: ■ Lack of water resources and poor water quality; ■ Lack of bulk infrastructure (water, electricity, and sanitation); ■ Aging of existing infrastructure; ■ Inadequate budgeting for operations and main tenance; ■ Overflowing of sewer plants; ■ Utilisation of unlicensed landfill sites; ■ Sector planning is not coordinated and aligned to the municipal planning processes; ■ Inadequate capital funding for all infrastructure/service delivery; ■ Inadequate institutional capacity to respond to service delivery opportunities; and ■ Inadequate intergovernmental integration and support. The M o galakwena I ntegrated D evelopment P lan (IDP) (2 012/2013 ) states that, “ one of the key social problems facing the Mogalakwena Municipality is poverty ”. In particular the IDP notes that women, especially women living in rural areas, are the most affected by lack of job opportunities and other social issues such as access to education, role in society and economic opportunities . These factors together with the high prevalenc e of HIV/AIDS throughout the local municipality (24%) and the number of household s which are indirectly affected by the disease increases the vulnerability of a significant number of families in the local study area. Within the regional study area just more than 1 out of every 3 individuals receives some type of grant, this figure is expected to be even higher in rural settlement within the local study area (StatsSA, 2011). This figure has almost doubled since 2001, which sug gests a premature inclination towards welfare instead of developing sound institutions for education and subsequent employment (StatsSA, 2011) . Of the people receiving grants a n overwhelming majority (68%) receive grants for childcar e . In addition to the social grant system, approximat ely 70 000 households within the local municipality were provided with free basic water and electricity services (WDM, 2012). If one takes into consideration that the municipality hosted almost 80 000 households in 2010, it i s clear that almost 90% of households within the regional and local study area are considered ‘poor’ (pronounced deprivation of well - being) (Houghton & Khandker, 2009) and qualify for

129. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 108 decreased from 296 per 100 000 in 2010, and was for the first time below 200 at 148.7 per 100 000 in 2013. Malaria is endemic in Limpopo, and transmission is distinctly seasonal, with most cases reported during the summer rainy season between September and May. There were 253 reported cases of malaria in the province between Octo ber and December 2012. This was a decrease from 504 during the same period in 2011 and 1 744 in 2010. The incidence of malaria in Waterberg District between 1998 and 2005 was about 30.9 per 100,000 person years. Other non - communicable diseases play an impo rtant role in the overall burden of disease in the Limpopo Province. Strokes, chronic lung disease, heart disease, hypertension and diabetes are all mentioned in the top 20 disease burdens in the province (Bradshaw et al., 2004). 13.1.13.9 Water and S anitation Safe drinking water and adequate sanitation is a necessity for good health, as households without safe water and proper sanitation systems are more vulnerable to water borne diseases. G overnment water schemes provide most households within the local study area with piped water; however, a considerable number of households still depend on groundwater resources for domestic and agricultural use ( Table 13 - 19 ). Rural communities are almost totally dependent on piped ground water abstracted from boreholes by pumps. Data on ground water resources indicates that there are water shortages, especially during the dry season, in the area. Water scarcity in the area prevents local water supply schemes to provide sustainable and reliable water to mo st rural communities. In terms of sanitation the majority of households within the local study area only have access to pit toilets , followed by a small number of households (9%) that have access to flush sanitation ( Table 13 - 20 ) . These figures are considerably lower than those of regional study area. Table 13 - 19 : Household water supply Water source % Households Regional/local water scheme 65% Borehole 23% Dam/pool/stagnant water 6% Water vendor/tanker 4% Other 2% Source: Stati stics S outh A frica , 2013

211. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 190 24 Item 2(j): Undertaking Regarding Correctness of I nformation I ___________ Mellerson Pillay ______________ herewith undertake that the information provided in the foregoing report is correc t, and that the comments and inputs from stakeholders and Interested and Affected parties has been correctly recorded in the report. Signature of the EAP : Date: 22 April 2015 25 Item 2(k): Undertaking Regarding Level of A greement I ___ _____Mellerson Pillay ________ herewith undertake that the information provided in the foregoing report is correct, and that the level of agreement with interested and Affected Parties and stakeholders has been correctly recorded and reported herein. Signa ture of the EAP : Date: 22 April 2015

216. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 195  Fryrear, D.W., Stout, J.E., Hagen, L.J., Vories,E.D., 1991. Wind erosion, field measurements and analysis. Volume 34(1) American Society of Agricultural Engineers.  Germihuizen, G. and Meyer, N.L. (eds) 2003. Plants of southern Africa: an annotated checklist. Strelitzia 14.  Gibbs, J. (2000). Wetland loss and biodiversity conservation. Cons. biol., 14 314  Goodwin, A. J. & Van Riet Lowe, C., 1929. The Stone Age Culture of South Africa. Annals of the South African Museum, Volume 27, pp. 1 - 289.  Harrison, R and VAN Grieken, R.,1998. Atmospheric Particles. John Wiley and sons, Inc., New York.  Henry, L., 2010. Rock Art and the Contested Landscape of the North Eastern Cape, South Africa, University of the Wiwatersrand: Unpublished MA Thesis.  Hofmeyr, I., 1988. Oral and written versions of the Makapansgat Siege. In: R. Mason, ed. Cave of Hearths, Makapansgat, Transvaal. Johannesburg: University of the Witwatersrand, Archaeological Research Unit, pp. 417 - 42 6.  Hofmeyr, I., 1989. No Chief, No Exchange, No Story. Johannesburg, African Studies Institute, University of the Witwatersrand.  Houghton. J., and Khandker, R.S. (2009). Handbook on Poverty and Inequality. Retrieved from the Worldwide Web on 1 March 2013, http://www.statssa.gov.za/community_new/content.asp?link=interactivedata.asp  Huffman, T. N., 1980. Ceramics, classification and Iron Age entities. African Studies , 39(2), pp. 123 - 174.  Huffman, T. N., 2004. The archaeology of the Nguni past. Southern African Humanities, Volume 16, pp. 79 - 111.  Huffman, T. N., 2007. Handbook to the Iron Age: The Archaeology of Pre - Colonial Farming Societies in Southern Africa. Durban: University of KwaZulu - Natal Press.  Human Rights Council. (2008). Promotion and Protecting of all Human Rights, Civil, Political, Economic, Social and cultural Rights, including the Right to development: Protect, Respect and Remedy: a Framework for Busines s and Human Rights.  IAIA. Health impact assessment international best practice principles. Special publication series No. 5 2006 September 2009; Available from:  http://www.iaia.org/modx/assets/fi les/SP5.pdf  International Finance Corporation , IFC, 2003: Addressing the Social Dimensions of Private Sector Projects. Good Practice Note No. 3

138. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 117 Table 13 - 23 : Identified Heritage Resources within the Project area Site number Site type Description Images ____/Ft/ 001 - 003 Surface occurrence Scattered surf ace occurrences of Middle Stone Age (MSA) stone tools can be found spread across the flat areas of the Project area i.e. proposed opencast pit and waste rock dump areas. The tools include blades, points, scrapers and cores. Figure 13 - 9 : MSA lithics recorded in the Project area

167. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 146 21 Item 2( i): Plan of S tudy for the Environmental I mpact A ssessment P rocess 21.1 Item 2(i)(i): Description of Alternatives to be Considered including the Option of Not Going A head with the A ctivity The following alternatives will be considered during the EIA phase. 21.1.1 Site Layout The preferred site layout, as presented under Sec tion 18 will be assessed in detai l. This will include the new and revised position of the WRD, concentrator plant and tailings dam as well as their associated footprints. 21.1.2 Technology/Process Alternative The use of paste thickeners for the tailings material is considered to be the preferred method for depositing tailings, due to all the benefits, as described earlier. The feasibility of this alternative as it applies to the project will however be assessed further during the EIA process. 21.1.3 No - Go Option The no - go or do nothing option means that the status quo would be maintained . All potential impacts are assessed against the current biophysical and socio - economic baseline; therefore all identified alternatives are assessed against the no - go option. This alterna tive would mean that the project site would remain as is, covered by vegetation and used as agricultural and grazing land by the Bakenburg Tribal Authority. This no mining alternative would mean that the project would not go ahead and as a result any poten tial impacts associated with the project and its alternatives would not occur. 21.2 Item 2(i)(ii): Description of the Aspects to be Assessed as part of the Environmental Impact A ssessment P rocess The following aspects of the project will be assessed as part of the EIA phase: ■ Site clearance and vegetation removal; ■ Change of land - use; ■ Topsoil removal and stockpiling; ■ Development and use of access roads and regional roads; ■ Water abstraction and use; ■ Infrastructure such as channels, bridges, dams, office and worksh op;

193. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 172 integrating so und level meter will be used for the measurements. The instrument will be field calibrated with a Cirrus, sound level calibrator. 21.3.17.3 Baseline Interpretation Recording s from the sound level meter will then plotted in graphical format and then analysed in rela tion to the SANS 10103:2008. The comparison to the SANS day and night - time standards for rural districts will provide a noise baseline for the area, indicating how much noise currently exists in the area. 21.3.17.4 Noise Dispersion Modelling The propagated noise le vels will be calculated by means of the dispersion modelling software ‘Soundplan’. This model will depict in detail, what the expected noise levels are to be at sensitive receptors, and can predict, per receptor, the intensity of the noise impact. Step 5: Significance R ating of I mpact The significance of the noise impact of both options will be rated by comparing the expected noise levels from the models to the existing ambient noise levels as well as by comparing it to the SANS 10103:2008 limit guidelines for the various districts surrounding the project areas of both options. The kind of mitigation measures and management programme will depend on the significance rating of the noise impact. 21.4 Item 2(i)(iv): Proposed Method of Assessing the Environmental Aspe cts including the Proposed Method of Assessing A lternatives The significance rating process follows the established impact/risk assessment formula: Where And And Significa nce = Consequence x Probability x Nature Consequence = Intensity + Extent + Duration Probability = Likelihood of an impact occurring Nature = Positive (+1) or negative ( - 1) impact

70. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmenta l 49 ■ A letter w as emailed and posted to the full stakeholder database to announce the availability of the Scoping Report on Thursday 12 March 2015 ; ■ A SMS was sent to the full stakeholder database on Friday, 13 March 2015 to inform all stakeholders of the availability of the Scoping Report and Public Meeting. ■ Advertisements were placed in the Daily Sun on Friday 13 March 2015; and ■ S ite notices (20 ) were put up at various places including local libraries, and venues in the proposed project area on Monday 16 March 2015. The following stakeholder meetings will be conducted during the Scoping phase: ■ Bakenberg Traditional Council Meeting: The project site falls directly within the Bakenberg Traditional Council’s area of jurisdiction. A meeting was held with the Bakenberg Traditional Council on Monday, 23 March 2015. A PowerPoint presentation was presented in Sepedi . ■ Mapel a Traditional Council Meeting: The Mapela Traditional Council area is adjacent to the project site. A meeting with the Mapela Traditional C ouncil was arranged by email on the 12 March 2015. A response was received from the council on the 17 March 2015 to s tate that they would contact Digby Wells with a date and time which would be suitable to the council. A reply email was sent on 17 March 2015 requesting the 26 of March 2015 as a possible date for the meeting. A follow up meeting request was sent on 20 Ma rch offering 24, 27, and 30 March 2015 as alternative dates for the meeting with the council. This was followe d up with a phone call. It is likely tha t the meeting with the Mapela Traditional Council will only take place in the EIA phase of the project. ■ V illage Meetings : Meetings with the neighbouring villages of; Pudiakagopa; Taolome; Malokongskop; Mabusela Kwenaite Rooiwal; Dithotswane; Kaditshwene;Sepharane; Basogadi Mautjane Claremont; and Good Hope took place between Monday, 23 March 2015 to Tuesday, 31 March 2015. Meetings which were scheduled with the villages of Matlaba and Mmotong did not take place as the village representatives did not call people to the meetings. However, these villages had the opportunity to attend the public meeting at the Bak enberg Stadium. A PowerPoint poster presentation was made in Sepedi at all the village meetings. ■ Commercial Farmers: A meeting with commercial farmers took place on Thursday , 26 March 2015 at the Mapedi L odge situated close to the project site . The PowerP oint poster presentation was made in English and Afrikaans translation was provided during the open discussion. ■ Focus Group Meeting : A focus group meeting was held on 27 March 2015 in Mokopane with the district and local municipalities, NGOs, Mokopane Bus iness Chamber other key stakeholders were invited to attend this meeting. ■ Public M eeting : a public meeting was held on Saturday, 28 March 2015 at the Bakenberg Stadium . The date and venue for the public meeting was provided in the

224. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 20 3  South Africa 1998. National Environmental Management Act, 1998 (Act No . 107 of 1998)  South Africa 2000. Local Government: Municipal Systems Act, 2000 (Act No. 32 of 2000)  South Africa 2002. Mineral and Petroleum Resources Development Act, 2002 (Act No. 28 of 2002)  South Africa info. (2011). South Africa's population. Retriev ed from http://www.southafrica.info/about/people/population.htm  South Africa Info, http://www.sout hafrica.info/about/health/health.htm#.Um4 - pnCnpQZ Retrieved 10 October 2013  South African Government Information. (2011). Traditional Leadership. Retrieved online from http://www.info.gov.za/ab outgovt/tradlead.htm  South African National Standard (SANS) 2008. Code of practice, SANS 10103:2008, Edition Six, The measurement and rating of environmental noise with respect to annoyance and to speech communication. Available [online] http://www.sabs. co.za  South African National Standard (SANS) 2011. Code of practice, SANS 1929:2011, “Ambient Air Quality – Limits For Common Pollutants.”  South African National Standards (SANS) 2011. SA Drinking Water Standards, 241: 2011.  South African National Standar d (SANS) 2012. Standard Test Method for Collection And Measurement Of Dust Fall (Settleable Particulate Matter) Sans D113:2012.  Statistics South Africa. (2001). Census 2001: Interactive data. Retrieved May 15, 2011, from http://www.statssa.gov.za/community_new/content.asp?link=interactivedata.asp  Statistics South Africa. (2008). Community Survey 2007: Interactive data. Retrieved March 10, 2011, from http://www.statssa.gov.za/community_new/content.asp?link=interactivedata.asp  Statistics South Africa. (2013). Census 2011: Interactive data. Retrieved from http://www.statssa.gov.za/community_new/content.asp?link=interactivedata.asp  Statistic South Africa. (2014).  The Development Partnership. (2009). Waterberg SDF  The Manual of Traffic Impact Studies (RR 93/635), published by the Department of Transport, 1995.

36. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Di gby Wells Environmental 15 5.2.10 Other Support Infrastructure Additional mine infrastructure that is a nticipated to be constructed include s the following: 5.2.10.1 Sewerage Treatment Plant It is anticipated that this plant will be used to process waste generated on the mine only. 5.2.10.2 Conveyors A 600 m conveyor is required for the crushing and grinding components within the plant area and a further two 100 m conveyor systems are required for the concentrate product and tailings. These conveyors will have a width of 45 - 60 cm. The conveyors will be closed top conveyors. These specifications will be confirmed during the deta iled mine design. 5.2.10.3 Pipelines C lean water, assuming that it will be pip ed from the existing water abstraction networks , will have a pipeline/s with a combined length of 11 km and a capacity of 4 6m 3 /h. The process water pipelines which will be located within the plant area will be approximately 2 km in length. The tailings pipeline will be approximately 3 km in length (distance between the concentrator plant and the tailings dam), with a throughput capacity of 5 3 m 3 /h . All pipe line diameters are estimated to be approximately 5 - 20cm. 5.2.10.4 Hazardous Material Storage Various hazardous substances will be stored on site, including fuel s , lubricants, gas, oils, and explos ives. There will be emulsion type explosi ves that would be mixed on site in emulsion tanks with the detonators stored in an explosive magazine (building). These materials will be to be stored in secured buildings or with the necessary bunds (110% of volume of materials). The specifications for hazardous material storage will be confirmed during the detai led mine design. 5.2.10.5 Contractor Camp All maintenance activiti es will be undertaken within a workshop area which will include offices, storage and a wash bay. 5.2.10.6 Security Security will be positioned at the main entrances to the mine to control access in to the min ing areas. The main entrance to the project site will be via the D4380 Provincial Road. 5.2.11 Staffing Requirements According to the Social and Labour Plan (SLP), the expected workforce for the mine when fully operational will be approximately 150 people (perm anent employees and contractors).

47. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 26 Table 6 - 2 : Relevant Provincial Legislation Applicable legislation and guidelin es used to compile the report Reference where applied Limpopo Environmental Management Act, (Act No. 7 of 2003) (LEMA) The Limpopo Environmental Management Act, 7 of 2003, is aimed at managing and protecting the environment in the Limpopo Province as wel l as securing ecologically sustainable development and responsible use of natu ral resources in the Province. This report will be compiled in accordance with the National Environmental Management Act and its regulations thereof and relevant Specific Enviro nmental Management Act(s) (SEMAs) where applicable. In addition, the report will, as far as possible, meet the requirements of the LEMA where required. Limpopo Heritage Regulations GN R103 The Limpopo Heritage Authority (LHA) has been established and is responsible for the management of heritage resources in the Province. A Heritage Impact Assessment will be undertaken in line with these regulations.

55. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 34 Applicable legislation and guidelines used to compile the report Reference where applied The IFC, a subsidiary of the World Bank, has published a set of Performance Standards (PS) describing its commitments, roles, and responsibilities relating to environmental and social sustainability, in line with its strategic commitment to sustainable development, and as an integral part of its approach to risk management. The IFC applies the PSs to manage P roject related to social and environmental risks and impacts, and enhance development opportunities in its private sector financing. The IFC PSs are widely regarded as international best practice with regard to the management of impacts associated with lar ge p roject developments. in IFC Performance Standards as well as the IFC EHS and Mining Guidelines. Department of Mineral Resources Consultation Guidelines The Guidelines were compiled for use by applicants for prospecting and mining rights. It provides that Interested and Affected Parties include, amongst others, host (or receiving) communities, land owners, traditional authorities, land claimants, lawful occupiers, any other person whose socio - ec onomic conditions may be directly affected by proposed prospecting or mining activities. A Public Participation Process (PPP) will be undert aken as part of the EIA process and will consider these guidelines.

151. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 130 13.2.1 Land C laims The Restitution o f Land Rights Act, 1994 (Act No. 22 of 1994) allows individuals or groups to claim land, from which they were previously dispossessed after 19 June 1913 under the apartheid regime. Claimants were given until 31 December 1998 to register a claim in terms of the Restitution of Land Rights Act. During this period approximately 80 000 claims were lodged throughout South Africa. The Regional Land Claims Commissioner is responsible to verify the rightful claimant, validity of the claim, identify the beneficiaries and determine the extent of the land claim. This is the research stage of the claim. Once this has been completed, the claim is gazetted and therefore development on the land is at risk the claim is settled. This therefore has development implications for existing land owners and surface or mineral rights holders as further development on land, which has a land claim is a risk. According to the Mogalakwena IDP (2011/2012) 41% of land within the municipal area is subjected to land claims, which is resultin g in restrictions in terms of spatial development (MLM, 2011). A land claims e nquiry on the farms within the p roject site showed that there were claims on the Vogelstruisfontein 765 LR, Schoonoord 786 LR and Bellevue 808 LR ( Table 13 - 26 ) . Table 13 - 26 : Outstanding Land Claims Affected P roperty Claimant Schoonoord 786 LR Sebueng Community Sch o onoord 786 LR Bakenberg Tribe Bellevue 808 LR Bakenberg Tribe Vogelstruisfontein 765 LR Bak enberg Tribe Source: MLM, 2012; Department of Rural Development and Land Reform,2011 13.3 Description of Specific E nviron mental F eatures and I nfrastructure on the S ite T he site sensitivity analysis identified the following biophysical and social features and /or infrastruc ture on the project site. 13.3.1 Rivers and Wetlands The Mogalakwena River, which is a tributary to the Limpopo River, flows through the western portion of the project site and flows towards the north into the Limpopo River. The Sterk River also tr averses the project area west of the Mogalakwena River. The Sterk River is a tributary to the Mogalakwena Rive r. A non - perennial stream, namely Bor obela flows along the eastern side of the Mogalakwena River , and flows towards the west, feeding into the Mog alakwena River. The project site is also characterised by a number of drainage lines

135. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 114 13.1.15 Noise Agriculture is the dominant land use (primarily livestock grazing, followed by subsistence maize farming) at the project site, with small areas al so being utilised for residential purposes. The dominant land use surrounding the project site is mixed used, comprising residential and agricultural with various traditional communities. The noise levels within the communities are expected to be between 4 5 – 50 dBA during the daytime and 35 – 45 dBA during the night time. Noise levels in suburban districts may reach up to an average of 55 dBA during the daytime due to noise sources from socialising activities including vehicle movement, trading activities at the local markets, sounds made by livestock ( including cattle, poultry etc.) and domestic animals ( e.g. dogs) . Some of the surrounding noise sensitive receptor (residential) areas include: ■ Sepharane in the proposed project boundary ; ■ Ditlotswana – appro ximately 0.5 km to the east ; ■ Rooival – approximately 3 km to the north east ; ■ Ramorulane approximately 3.5 km to the south and ■ Pudia – approximately 1.5 km to the northwest. 13.1.16 Cultural Heritage 13.1.16.1 Geology and Palaeontological Sensitivity 2 Considering the regio nal geology and palaeontological sensitivity discussed above, the site specific study area has largely no significance. However, a small area with high palaeontological sensitivity is located in the south - western part of the study area. This area has exp ressions of the Malmani Subgroup of the Chuniespoort Group of the Transvaal Supergroup, dated to between ~2600 Ma and ~2000 Ma. However, this area is located 2.5 km from the proposed infrastructure development area and is highly unlikely to be affected. Although this area is located outside the infrastructure footprint, t he presence of Malmani dolomites is associated with the more extensive Makapan Valley karst landscape. However this is outside of the protected area . 13.1.16.2 Stone Age The Stone Age is intimately linked with the geological and hydrolo gical features of the landscape. Geologically, raw material for stone tool production is readily available throughout the landscape. Identified lithics from the reconnaissance of the project area are defined as comprising of fine grained Felsic tuff with quarts and feldspar crystals (pers. 2 This section was compiled by Johan Nel based on literature cited in text and palaeontological information obtained from the SAHRIS. The content was reviewed by Megan Edwards ( Digby Wells Geologist ).

144. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 123 Site number Site type Description Images ____/Ft/ 009 Surface occurrence A decorated lug fragment was identified in a recently dug up area. The lug has an incised triangle on the han dle with parallel lines within the triangle. Incised parallel lines are present where the handle meets the pot surface. Figure 13 - 19 : Decorated lug found at Ste/009 Figure 13 - 20 : Side profile of the lug fragment

23. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Di gby Wells Environmental 2 2 Content of the Scoping Report 2.1 Item 2(a)(i): Details of EAP Digby Wells an d Associates South Africa (Pty) Ltd has been appointed as the i ndependent Environmental Assessment Practitioner (EAP) to undertake the EIA process and supporting applications for the project. The details of the EAP are provided in Table 2 - 1 . Table 2 - 1 : Contact D etails of the EAP Name of the Practitioner: Mr. Mellerson Pillay Tel No: +27 11 789 9495 Fax No: +27 11 789 9498 Email Address: Mel.Pillay@digbywells.com 2.2 Item 2(a)(ii): Ex pertise of the EAP 2.2.1 The Q ualifications of the EAP Mellerson holds a Bachelor of Arts (BA) undergraduate degree in Environmental Studies and Political Science which was obtained at the University of Natal in 2003. In 2004, Mellerson obtained a Bachelor of So cial Science Honors D egree in Geography and Environmental Management at the University of Natal. Proof of these qualifications is appended as Appendix 1. 2.2.2 Summary of the EAP’s Past E xperience Mellerson currently holds the position of Environmental and Lega l Services Departmental Manager at Digby Wells Environmental. He has been with Digby Wells for a period of 1 year and has been managing integrated environmental regulatory processes as a Senior Project Manager. Prior to Digby Wells, Mellerson spent 2 years at Environmental Resources Management Southern Africa (Pty) Ltd (ERM) as a Senior Project Manager and 5 years at Aurecon’s Environmental and Advisory Services Department as a Project Manager. Mellerson has almost 9 years of professional experience in en vironmental assessment and planning and project management. Mel has been involved in a number of Environ mental Impact Assessments (EIA) within the mining, energy and oil and gas industries. Of particular relevance, Mellerson managed the EIAs for the propos ed Gamsberg Zinc Mine in the Northern Cape and the proposed Khanyisa Coal - Fired Power Station in Mpumalanga amongst others.

64. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmenta l 43 11 Item 2(h)(ii): Details of the P ublic Participation P rocess F ollowed A Public Participation Pro cess (PPP) has been initiated, which is central to the investigation of environmental and social impacts , as it is important that stakeholders who are affected by the project are given an opportunity to identify concerns and to ensure that local knowledge, needs and values are understood and taken into consideration as part of the impact assessment process . The comments of stakeholders will be included in the Comment and Response Report (CRR) and used to refine the scope of specialist studies that will be c ommissioned as part of the EIA . 11.1 Stakeholder Identification To ensure a proper representation of all stakeholders, the following identification methods were used to develop a stakeholder database: ■ Verify the existing stakeholder database for area; and ■ Cond uct Windeed searches in and around the project site to verify land ownership and obtain contact details; Stakeholders are grouped into the following categories: ■ Government: National, Provincial, District , Local authorities; ■ Landowners: Directly affected and adjacent landowners; ■ Communities: Directly affected and adjacent communities; ■ Land occupiers and land claimants : Directly affected and adjacent (including tribal authorities) ; ■ Non - Governmental Organisations (NGOs): Environmental organisations and co mmunity based organisations; and ■ Business: small medium enterprises, mines and formal business organisations. 11.1.1 Government The following government departments will be informed and/or consulted with : ■ National Department of Environmental Affairs; ■ National D epartment of Mineral Resources; ■ National Department of Agriculture, Forestry and Fisheries; ■ National Department of Water and Sanitation; ■ South African National Heritage Resources Agency; ■ Limpopo Department of Mineral Resources; ■ Limpopo Regional Office of the Department of Water and Sanitation ;

179. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 158 21.3.7.2.2 Lar ger M ammals Larger mammals will be identified by visual sightings, tracks and dung. In addition, motion - sensitive cameras will be baited and set on site. 21.3.7.2.3 Avifauna For avifau na, random transects will be walked throughout the site and species will be identified based on their characteristic calls or visual sightings. 21.3.7.2.4 Invertebrates Invertebrates will be sampled opportunistically and with the use of a butterfly net. 21.3.7.3 Impact Assess ment and Reporting The potential impacts of the development and operation of the proposed operation on the receiving natural areas within the project area will be assessed. The sensitivity of the natural environment (i.e. SSC) will be considered in rating the impacts. Mitigation measures will be identified, where feasible and practical to avoid potential impacts such as habitat fragmentation which result in impacts to fauna. The study will result in a fauna impact assessment report. 21.3.8 Wetland T o determine th e boundaries of wetlands, the methodol ogy described by DWAF (2005) will be adopted. The wetland delineation procedure utilises cues such as the presence of water , hydromorphic soils and obligate hydrophilic vegetation. 21.3.8.1 Wetland D elineation and I dentificati on In accordance with DWAF (now Department of Water and Sanitation (DWS) guidelines (2005) the wetland delineation procedure considers four attributes to determine the limitations of the wetland. The four attributes are: ■ Terrain Unit Indicator – helps to i dentify those parts of the landscape where wetlands are more likely to occur; ■ Soil Form Indicator – identifies the soil forms, which are associated with prolonged and frequent saturation; ■ Soil Wetness Indicator – identifies the morphological “signatures” d eveloped in the soil profile as a result of prolonged and frequent saturation; and ■ Vegetation Indicator – identifies hydrophilic vegetation associated with frequently saturated soils. For the purpose of this study, wetlands are considered as those ecosyste ms defined by the National Water Act as: “land which is transitional between terrestrial and aquatic systems where the water table is usually at or near the surface or the land is periodically covered with

100. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 79 (PhD) Head of Environment American 2015 as Central and Kwanda North interests. The magnetite ore bodies are situated f ar into the hanging wall of the Platreef and won’t affect any of our operations or plans. Interested Parties Date of comments received Issues raised EAPs response to issues as mandated by the applicant Sec tion and paragraph reference in this report where the issues and/or responses were incorporated Name of Individual Consulted No other comments have been received from interested parties

142. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 121 Site number Site type Description Images ____/Ft/ 007 Feature A man - made rock pool was i dentified on the eastern side of the hill (See Figure 13 - 16 ). A number of natural springs and drainage lines can be found flowing down the slopes of the hill, and it is assumed that these rock pools were constructed to collect th e water during the rainy season. These rock pools may still be in use today, for both drinking water and ritual purposes. Figure 13 - 16 : Rock pool at the base of the hill found at Ste/007

191. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 170 the use of roads only and excludes the potential impacts associated with the rail and port; ■ Traffic survey counts will be processed, distributed and assigned to the road network along with development traffic; ■ Capacity anal yses of affect ed intersections;  2014 Base scenario – Weekday AM and PM;  2019 Background scenario, without development – Weekday AM and PM;  2019 Background scenario, with deve lopment – Weekday AM and PM;  Mitigation scenario, with development – Weekday AM and PM ■ Interpre tation of m odelling results; and ■ Queuing analysis at accesses, particularly HGV movements to determine the appropriate sizing and throat distances required. 21.3.15.2 Impact Assessment and Reporting A traffic impact assessment will be compiled for the project and w ill outline the results of the various trip generation scenarios and the potential impacts on road users and on the road condition. The following potential impacts of the proposed development will be considered : ■ Impact on the existing traffic conditions on the external road n etwork ; ■ Impact on pedestrians and c yclists ; ■ I mpact on road safety conditions; and ■ Impact on th e condition of the road network. Road upgrades to mitigate development traffic if appropriate will be defined and appropriate r ecommendations will be made, including: ■ Consider existing Site Development Plan (SDP) and provide advice in relation to access control, stacking space requirements, access geometry and sight distances; ■ Consider and advise on required traffic management arrangements if a ppropriate ; and ■ Advice on road safety considerations in implementing safe road infrastructure compliant with design standards. 21.3.16 Blast and Vibration The objective of this study is to determine the effects th at blasting operations may potentially have on the surrounding environment. The study investigates the related influences of expected ground vibration, air blast, fly rock, and noxious fu mes on neighbouring houses and owners or occupants. T o complete the study, the following steps will be undertaken.

202. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 181 Table 21 - 9 : Summary of PPP Activities in the EIA Process Activity Details EIA Phase Placement of EIA / EMP report The EIA/EMP report will be placed at the Mogalakwena Public Library and at the Bakenberg Community library for a comment period of 30 days Announcement of availability of the EIA/EMP report for public comment I&APs will be informed of the a vailability of the EIA / EMP R eport for public comment by email, letter and SMS . Meetings A series of meetings will be held with the two traditional councils, key stakeholders, individual villages and the general public. All comments raised at these meet ings will be captured in the CRR. 21.7.3 Description of the Information to be Provided to Interested and Affected Parties The EIA/EMP report will be placed at the Mogalakwena Public Library and at the Bakenberg Community library for a comment period of 30 days . The EIA and EMP will include the following information: ■ Project description and activities; ■ Baseline environment; ■ Potential biophysical and socioeconomic impacts of the proposed activities; ■ Proposed mitigation measures; and ■ A recommendation on whether t he development should proceed or not.

123. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 102 13.1.12 Economic Understanding the size and composition of each sector in the economy in the area under analysis is important for studying the economic impacts that the proposed project may have. This helps t o predict the changes that may occur because of the implementation of the project. The Gross Domestic Product per Region (GDP - R) of the Mogalakwena Local Municipality was valued at R13 142 million in 2013 constant prices. This is equal to a per capita GDP - R of R42 629. This is lower than the national economy but higher than the provincial economy GDP - R per capita of R58 533 and R39 818, respectively. The Waterberg District has the strongest economy of all the study areas with a GDP - R per capita of R74 023. In addition to signalling a stronger economy, a higher GDP - R per capita is usually associated with a higher standard of living. Table 13 - 12 : GDP - R and GVA - R per Capita (2013) GDP - R (R’million) GDP - R per capi ta (R) South Africa R3 030 263 R58 533 Limpopo R215 212 R39 818 Waterberg DM R50 287 R74 023 Mogalakwena LM R13 142 R42 629 (Quantec, 2015) Another important indicator of the wellbeing of a region’s economy is the rate at w hich it is growing. Between 2003 and 2013, the Waterberg area’s economy grew at an average rate of 0.9% per year. This is much lower than the national CAGR of 3.4% per annum. The Mogalakwena economy also showed a much better performance during that period than the Waterberg, growing at a CAGR of 2.9%. When one considers the structure of the economy in nominal terms, it becomes evident that the national economy is predominantly a service economy. The tertiary sector comprised 70% of the national economy in 2013, and grew at a CAGR of 4%. The primary sector that includes agriculture and mining contributes the smallest amount to the national economy. These sectors are, however, strategically important for food security and job creation. In Limpopo, the primar y sector contributed 30.7% towards its GDP - R showing a significantly greater reliance on this sector than the national economy; however, the economy of Limpopo is still driven by predominantly tertiary industries with the observed CAGR of 3.5%. The mining industry showed the lowest growth rate in the province, emphasising the need for retention of these industries from a sustainability perspective and most importantly the need for greater investment to support their growth.

126. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 105 13.1.13.3 Age and G ender D istribution Gender and age are important variables, as they indicate the labour - sending capacity of an area. Table 13 - 15 presents the gender distrib ution of the local study area, and indi cates that females outnumber males by 10% , similar to the regional distribution. The gender distribution among households heads indicate that just less than 60% of a ll households in the local study area are headed by females (StatsSA, 2013) . Both these trends point towards male outmigration. The age distribution shows that the majority of the local study area’s population fall s within the 15 - 64 year bracket, while just more than a third is younger than 14 years. This t rend is similar to the regional study area and indicates a potentially large labour force . Table 13 - 15 : Gender - and A ge D istribution % of total population Gender Age category (in years) Female Male 0 - 14 15 - 64 65+ 55% 45% 37% 52% 10% Source: Stati stics S outh A frica , 2013 13.1.13.4 Language and Racial D istribution T he population within the local study area is relatively undifferentiated from a language and race perspective, with most people speaking Sepedi (82%), foll owed by those speaking XiTsonga (12%) . With regards to race , Black Africans constitute the overwhelming majority (99%). R acial integration is gradually being achieved through some B lack Africans moving from the traditional settlement s and rura l areas to se ttle in Mokopane. 13.1.13.5 Education A population’s average level of education is commonly used as an indicator of human capital and is measured by the percentage distribution of the population older than 20 years and the highest level of schooling they complete d. Edu c ation levels among the local population is presented in Table 13 - 16 bel ow, which indicates a relatively modest level of formal education , with more than half of individuals attaining some secondary schooling, irrespective o f their gender grouping.

7. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental iii This Scoping Report aims to provide a description of the overall project and activities, the environmental and social environ ments within which the project is being proposed and the potential impacts that the project may have on these environments. Project Activities/Components The following aspects of the project will be assessed as part of the EIA: ■ Site clearance and vegetat ion removal; ■ Change of land - use from agriculture to mining; ■ Topsoil removal and stockpiling; ■ Developmen t of access and haul roads; ■ Surface i nfrastructure development such as channels, bridges, dams, office s and workshop s . ■ Water abstraction and use; ■ Develo pment of two open pits by blasting and truck and shovel methods ( approximately 129 ha and 69 ha footprints) ; ■ Development of one waste rock dump ( approximately 160 ha footprint) ; ■ Concentrator plant ( approximately 23 6 ha footprint) including crushing, grindi ng and screening ; ■ Conveyor belts at crushing and grinding sections and for concentrate product and tailings ; ■ Tailings Storage Facility (TSF) ( approximately 124 ha footprint) ; ■ Pollution control dam, water storage dam and associated pipelines; ■ Stormwater div ersion berms and channels; ■ Storage of fuels, process concentrate, maintenance/workshop oils , and explosive storage facilities ; ■ Waste generation, storage and disposal (hazardous and general); ■ Product storage (magnetite concentrate); ■ Transport of materials and product via road; ■ Sewerage treatment plant; ■ Employment and capital expenditure; and ■ Rehabilitation of project site.

116. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 95 higher ambient concentrations during these months. The current limit is 65 μ g/m 3 and the future limit (1January 2016 – 31 December 2029) will be 40 μ g/m 3 . 13.1.7.5 Carbon Monoxide (CO) Throughout the period under review, the concent ration s of Carbon Monoxide (CO) levels were below the NAAQS limit of 26 parts per million ( ppm ) . The highest concentration of 5 ppm measured in the month of June 2013 may be a once off incident as the genera l background levels are below 3 ppm. 13.1.8 Flora The pr oject site falls within the Makhodo Sweet Bushveld, whilst a small proportion of the site coincides with the Central Sandy Bushveld vegetation types, according to Mucina and Rutherford (2006). Three primary vegetation units were identified and are associat ed with black vertic clays, red iron - rich soils and rocky outcrops. These vegetation units are: Acacia borleae – Eragrostis rigidior ( Black Turf Savanna ), Acacia tortilis – Eragrostis rigidior ( Savanna ) and Commiphora marlothii – Heteropogon contortus ( Roc ky Woodland ). Refer to Plan 11 in Appendix 5 . 13.1.8.1 Acacia borleae – Eragrostis rigidior This vegetation unit covered the majority of the project site and comprises open to closed Acacia thornveld that was largely infested by the native invader species: Dichro stachys cinerea (Sickle Bush). The vegetation unit showed little variation throughout the project site and was found on black vertic c lay referred to as “Black Turf”. An example of this vegetation unit is shown in F igure 13 - 5 . F igure 13 - 5 : Landscape of the Acacia borleae - Eragrostis rigidior 13.1.8.2 Acacia tortilis – Eragrostis rigidior Savanna This vegetation unit was found on iron - rich Oakleaf soils and was relatively limited in extent. P lant diversity was higher when compared to the Black Turfs. Although Dichrost a chys

141. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 120 Site number Site type Description Images ____/Ste/ 006 Iron Ag e structure A small shelter with a single undiagnostic potsherd was identified on the east side of the hill (See Figure 13 - 14 ). Stone walling is present behind the shelter (See Figure 13 - 15 ). Figure 13 - 14 : Small shelter with undiagnostic ceramic potsherd found at Ste/006 Figure 13 - 15 : Walling behind the shelter

8. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental iv Project Alternatives For mining, the nature of the ore body or deposit determines the mining activities and processes. Furthermore, t he location of the resource determine s the location of the mining operation , however associated infrastructure can be shifted based on technical, environmental and financial viability . These two fa ctors reduce the identification of possible location and/or a ctivity alternatives. The following alternatives were identified: ■ Site infrastructure layout alternatives; ■ Technology /Process alternatives; ■ No - go option. The site layout alternatives were identified based on a site sensitivity analysis. The original site layout has been revised to generate a new site layout based on various biophysical and social sensitivities, including the occurrence of rocky ridges, wetlands, proximity to roads, settlements and cultural heritage sites. There are two technology/process alternatives under consideration relating to the disposal of tailings material. The applicant is considering the use of paste thickeners which will result in the thickening of the tailings which will have several benefits when compared to conventional tail ings thickening, these include a r eduction in water consumption, reduction of the footprint and possibly height of the tailings dam , reduction in potential seepage reduces seepage and energy requirements. The technical viability of this option is being ass essed. The no - go or do nothing option means that the status quo would be maintained . All potential impacts will be assessed against the current biophysical and socio - economic baseline; therefore all identified alternatives will be assessed against the no - g o option. The no - go impact will not be explicitly assessed. Specialist Consideration Based on the nature and extent of the proposed magnetite mining operations as well mineral processing through a concentrator plant the following specialist studies were d eemed appropriate for the EIA process. The specialist studies have also been identified based on the existing environment of the proposed project site. Refer to Table 3 below. Table 3: Specialist Studies Biological Assessments Physical Assessments Social Assessments Fauna and Flora (including avi - fauna) Soils and Land Capability Social Aquatics Wetlands Stakeholder Engagement Hydrology Visual

140. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 119 Site number Site type Description Images ____/Ft/ 005 Surfa ce occurrence A single decorated ceramic potsherd (as shown in Figure 13 - 12 ) was found at the base of a small koppie (See Figure 13 - 13 ) within the proposed plant area. The decorations can be characterised as Uitkomst . Figure 13 - 12 : Decorated ceramic potsherd found at Ste/ 005 Figure 13 - 13 : Small koppie where the potsherd was identified

145. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 124 Site number Site type Description Images ____/BGG/ 010 Grave The grave of Johannes Seleka Lamola (1840 - 1920 ) (See Figure 13 - 21 ) was identified within the stone walled settlement ( Ste/008 ) referred to above. The gr ave is located on the eastern side of the hill, approximately 100 m from the gravel road. Figure 13 - 21 : Grave of Johannes Seleka Lamola at BGG/010

115. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 94 13.1.7 Air Quality The project site is located within t he Waterberg - Bojanala Priority Area (WBPA) which was declared the third priority area by the Minister in terms of GN R 495 on 15 June 2012. The WBPA comprises the Waterberg District in Limpopo Province and th e Bojanala Platinum District in the North West. The overall aim of establishing the WBPA is to regulate and to ensure future sustainable development in the area and maintain the NAAQS. I t became critical that a Priority Air Quality Management Plan for the area be developed. A Priority Air Quality Management Plan includes the establishment of emissions reduction strategies and intervention. The implication of this is that all current and future contributing sources in the area will be assessed to determine t he emission reduction targets to be achieved over the following years. Baseline data was sourced from the ambient monitoring station set up by the Department of Environmental Affair s (DEA) , located at the Mahwelereng Police Station in Mokopane. The baselin e data presented in the sections that follow were measured fr om January 2013 to January 2015 . 13.1.7.1 Sulphur D ioxide (SO 2 ) The daily concentrations of SO 2 fell below the National Ambient Air Quality Standard (NAAQS) limit value of 125 μ g/m 3 (48 parts ber billion (ppb)) during the monitoring period. September 2013 had the highest level of SO 2 ( 30 ppb) with the lowest levels being in January 2014 (<5 ppb) . 13.1.7.2 Nitrogen D ioxide (NO 2 ) The hourly NO 2 concentrations fell below the NAAQS limit value of 200 μ g/m 3 . The NO 2 lev els increase d from January to July and began to decline after October 2013 . It is believed that the increase observed in the level of NO 2 is a result of the low wind speed and the low surface temperature during this period, as both conditions do not favour the dispersion of pollutants. 13.1.7.3 Particulate Matter (PM 10 ) The daily PM 10 concentrations measured at the station indicate that the NAAQS limit of 120 μ g/m 3 was exceeded four times during the period under review. The highest daily PM 10 concentrations reached ~ 150 μ g/m 3 in September 2014. The lowest concentrations of PM 10 were recorded during November 2013 and March 2014. From 1 January 2015 the NAAQS limit for this pollutant is 75 μ g/m 3 . The highest ambient concentration recorded is twice the current limit va lue . 13.1.7.4 Particulate Matter (PM 2.5 ) T he PM 2.5 concentrations between July to October 2013 exceeded the NAAQS limit and began to decline with the lowest concentrations recorded in February and March 2014. The wind speed usually peaks during the months of July, August and September, hence the

6. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental ii 808LR Portion 3 of Farm Bellevue 808LR T0LR00000000080800003 Portion 4 of Farm Bellevue 808LR T0LR00000000080800004 Portion 5 of Farm Bellevue 808LR T0LR00000000080800005 Portion 6 of Farm Bellevue 808LR T0LR00000000080800006 Regulatory Process In terms of the requirements of the Minerals and Petroleum Resources Development Act, 2002 (Act No. 28 of 2002) (MPRDA) , as amended, a Mining Right Application (MRA) must be submitted to the Department of Mineral Resources (DMR) for the project. In support of the MRA, an Environmental Impact Assessment (EIA) process must be undertaken in accordance with the new EIA Regulations (GN R. 982, 983, 984 and 985), December 2014 promulgated in terms of the National Environmental Management Act, 1998 (Act No 107 of 1998) (NEMA) . The project also requires the following environmental approvals, which will be applied for as part of the EIA process: ■ Waste Managemen t Licence (WML) in terms of the National Environmental Management: Waste Act, 2008 (Act No. 59 of 2008) (NEMWA) ; and ■ Water Use Licence (WUL) in terms of the National Water Act , 1998 (Act No. 36 of 1998) (NWA) . Digby Wells and Associates ( South Africa ) (Pty ) Ltd has been appointed as the independent Environmental Assessment Practitioner (EAP) to undertake the EIA process and supporting applications for the project. The details of the EAP are provided in Table 2 . Table 2 : Contact D etails of the EAP Name of th e Practitioner: Mr. Mellerson Pillay Tel No: +27 11 789 9495 Fax No: +27 11 789 9498 Email Address: Mel.Pillay@digbywells.com

11. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental ii Activity Details Reference in Report general public. All comments received at th ese meeting s are captured in the Comment and Response Report. Placement of updated Scoping Report The updated Scoping Report will be placed at the Mogalakwena Public Library and at the Bakenberg Community Library and on the Digby Wells website. Announcement of the updated Scoping Report A letter will be emailed and posted to the full database to announce availability of the updated S coping R eport for I&AP to confirm that their comments have been captured and addressed . Appendix 7 (8) Announcement Letter

134. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 113 Road Link Jurisdicti on Fun ction Road Condition Classification Ring Road N1 There are several route options that will be considered during the impact assessment phase, these include: ■ Mokopane v ia D4380 – D1958 – R517 – N11; ■ Mokopane via D4380 – R517 - D3500 – N11; ■ Durban / Richards Bay via D4380 – N11 Ring Road – N1; ■ Mokopane via D4380 – N11 Ring Road – D1312; and ■ Mokopane via D4380 – N11. 13.1.14.1 Project Site Access There are several options to provi de access to the project site from the D4380, D3507, and D3534. The portion of the project site situated to the north of the D4380 is currently accessible via the D3534. The portion of the project site situated to the south of the D4380 is currently access ible via an existing access from the D4380. The design and type of intersection will be influenced by the traffic generated by the proposed mining operations, and will be determined at a later stage once the level of service can be determined. 13.1.14.1 Future Plan ned Roads The proposed N11 Ring Road is included in the recently completed Mogalakwena Municipality Roads and Stormwater Masterplan. The main driver behind the implementation of the Ring Road is to address the deteriorating level of service on the N11, use d to transport platinum from the Mogalakwena mines to Polokwane. The ring road will provide an alternative link from mines in its vicinity to the smelter at Polokwane. The implementation of the ring road is a mining industry initiative. Other routes bein g used by the mining industry are the N11, N1/R101, and or the R37. The N11 Ring Road will divert traffic on the western side of the existing Sebetiela Toll Plaza in a northern direction and then follow a route along the existing N11 towards Mokopane from w here it routes in a south - easterly directi on passing east of Tshamahansi and Mahwelereng to link up with the existing R101 just north of Mokopane. It should also be noted that a 24 km portion (1.130km – 25.088km) of the N11 will be upgraded from single to dual carriageway. This planned upgrade will greatly increase the capacity of this section of the N11.

118. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 97 13.1.8.1 Limpopo Critical Biodiversity Areas The Limpopo Critical Biodiversity Areas (CBA’s) assessment is a bioregional conservation plan, whereby sites were selected based on their biodiversity characteristics, spatial configuration and requirement for meeting targets for both biodiversity pattern and ecological processes. Sites that have been categorised as CBA 1 are regarded as irreplaceable and the conservation of these areas is imperative to meet the biodiversity targets o f the Limpopo CBA ’ s. The project site overlays an area that has been classifie d as CBA 2, as represented in Plan 12 of Appendix 5 . CBA 2’s are considered "optimal” as there is significant design involved in their identification and should be maintained in their natural state. 13.1.8.2 Species of Special Concern The PRECIS database lists one Red Data species, namely the r are plant: Brachystelma inconspicuum . This species is, however, unlikely to occur on the project site as it is usually found on sandy to loam soils derived from the Waterberg quartzite and conglomerate rocks (Peckover and Vic tor 2006). Species that are provincially protected have been listed under Schedule 12 of the LEMA (2003). Species that are nationally protected have been listed under the Protected Trees List as part of the N ational Forests Act, 1998 (Act N o. 84 of 1998).T hree plant S pecies of S pecial C oncern (SSC) were recorded on the project site, as listed in Table 13 - 8 and represented in Figure 13 - 8 . Table 13 - 8 : Plant Spec ies of Special Concern Species Common Name Threat Status Habitat Combretum imberbe Leadwood Nationally Protected Black Turf Scadoxus puniceus Royal Paint Brush Provincially Protected Red soils Sclerocarya birrea Marula Nationally Protected Black Tur f

143. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 122 Site number Site type Description Images ____/Ste/ 008 Iron Age settlement A stone walled settlement stretching 800 m north from 008 to an existing contemporary settlement. The stone walls consist of circular structures, passageways, rectangular structures and terraces (See Figure 13 - 17 ). The settlement is scattered with surface occurrences of ceramic potsherds and decorated potsherds (See Figure 13 - 18 ). Figure 13 - 17 : Southern section of the stone walled settleme nt at Ste/008 Figure 13 - 18 : Decorated potsherd found at Ste/008

18. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental ix Figure 13 - 23: Rock pool at Ste/011 ................................ ................................ ................... 125 LIST OF TABLES Table 2 - 1: Contact Details of the EAP ................................ ................................ ................... 2 Table 3 - 1: Property Details ................................ ................................ ................................ ... 4 Table 5 - 1: Project Activi ties ................................ ................................ ................................ ... 7 Table 5 - 2: Combined MML Indicated Mineral Resources ................................ .................... 10 Table 5 - 3: Indicated Mineral Resources for the P - Q Zone ................................ ................... 10 Table 5 - 4 : Inferred Mineral Resources for the P - Q Zone ................................ ..................... 10 Table 6 - 1: Relevant National Legislation ................................ ................................ ............. 18 Table 6 - 2: Relevant Provincial Legislation ................................ ................................ ........... 26 Table 6 - 3: Local By - Laws ................................ ................................ ................................ ... 27 Table 6 - 4: Project Specific Policies and Guidelines ................................ ............................ 29 Table 8 - 1: Project Timeframe ................................ ................................ .............................. 37 Table 11 - 1: Landowners and Properties Directly Affected ................................ ................... 44 Table 11 - 2: Adjacent Property Details ................................ ................................ ................. 44 Table 11 - 3: Land Claimants ................................ ................................ ................................ 46 Table 11 - 4 Summary of PPP Activities during Scoping Phase ................................ ............ 50 Table 12 - 1 Interested and Affected Parties ................................ ................................ ......... 53 Table 13 - 1: Dominant Soil Types and Slopes within the Project Site ................................ ... 84 Table 13 - 2: Agricultural Potential of Land Types ................................ ................................ . 84 Table 13 - 3: Surface Water A ttributes of the B20D Quaternary Catchment .......................... 85 Table 13 - 4: Surface Water Monitoring Locations ................................ ................................ . 86 Table 13 - 5: Water Quality Results Benchmarked against the SANS 241 - 1:2011 Drinking Water Quality Standards ................................ ................................ ................................ ..... 88 Table 13 - 6: Water Quality Results benchmarked against the Resource Water Quality Objectives ................................ ................................ ................................ ........................... 89 Table 13 - 7: Groundwater Quality Results ................................ ................................ ............ 92 Table 13 - 8: Plant Species of Special Concern ................................ ................................ .... 97 Table 13 - 9: Red Data Avifaunal (bird) Species that may occur on the Project Site .............. 99

2. This document has been prepared by Digby Wells Environmental . Report Type: Final Scoping Report Project Name: P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province Project Code: VMC3049 Name Responsibility Signature Date Kasantha Moodley Report Writer April 2015 Mellerson Pillay 1 st Review April 2015 Lucy Koeslag 2 nd Review April 2015 This report is provided solely for the purposes set out in it and may not, in whole or in part, be used for any other purpose without Digby Wells Environmental prior written consent.

146. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 125 Site number Site type Description Images ____/Ste/011 Iron Age structure A stone walled enclosure set against large boulders on the western side of the hill (See Figure 13 - 22 ). The enclosure measured approximately 10 m in diameter. Approximately 20 m north of the stone enclosure, a rock pool is present (See Figure 13 - 23 ). This is similar to the rock pool on the eastern side of the hill (Refer to Figure 13 - 16 ), however this one is not as overgrown as the other. Figure 13 - 22 : S tone wall enclosure at Ste/011 Figure 13 - 23 : Rock pool at Ste/011

9. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental v Biological Assessments Physical Assessments Social Assessments Hydrogeology Heritage Air Quality Health Traffic and Safety Macro - Economic Assessment Noise Blasting and Vibration Greenhouse Gas Assessment Rehabilitation P lan Closure Cost A ssessment Specialists have undertaken a baseline assessment which involved desktop based research on the project area as well as an initial site survey to gain an unders tanding of the surrounding environment. Furthermore, the baseline provide s a description of the respective environmental or social resource/ receptors , identifies sensitive features and identifies the potential impacts that may occur as a result of the pro ject activities . These potential impacts and risks have been presented in this Scoping Report. The impact assessment phase will involve the undertaking of detailed site investigations, sampling and modelling to determine the potential impacts of the proje ct and the identification of mitigation/management measures to minimise these potential impacts. Stakeholder Consideration A Public Participation Process (PPP) has been initiated, which is central to the investigation of environmental and social impacts , as it is important that stakeholders who are affected by the project are given an opportunity to identify concerns and to ensure that local knowledge, needs and values are understood and taken into consideration as part of the impact assessment process. Co mments made by all stakeholders will be included in the Comment and Response Report (CRR) and used to refine the scope of specialist studies that will be commissioned as part of the EIA . Table 4 below presents a summary of the PPP activities undertaken dur ing the scoping phase of the project.

128. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 107 number of people who earn nothing (45%) and a small number (1%) of people who earn over R 12 801 per month, i s indicative of a high Gini - coefficient 1 (measure of inequality). Table 13 - 18 : Individual Monthly I ncome Income category % of total population Gender proportion Female Male None 45% 46% 44% R1 - 800 34% 31% 37% R801 - R12800 20% 22% 18% R12801 - 204801+ 1% 1% 1% Source: Stati stics S outh A frica , 201 3 13.1.13.8 Health The Mogalakwena Local Municipality is serviced by 3 Hospital s , 26 Clinics and 12 Mobile Clinics. More than 80% of the population is within 120 minutes of walking distance from health facilities (Day et al., 2012). The usable Bed Utilisation Rate (BUR) is a process indicator (identifies activities related to the functioning of the health system) that is also a measure of efficiency. The BUR reflects how many of the usable beds in a hospital were occupied over a given time period, usually a year. A low BUR value for a given hospital may indicate that there is little or no need for the hospital in the particular community or area. Another explanation could be that the community chooses not to use the hospital for any number of reasons. In contrast, a high BUR could indicate that patients are spending too long in the hospital and not being discharged appropriately or it could mean that there are insufficient beds to cater for the needs of the population. The national BUR was 67.2% in 2011/12. The major ity of Limpopo districts exceeded the national rate and the national target . Waterberg district has 1.3 district hospital beds per 1 000 population, higher than both the provincial and national averages of 0.8 and 0.7 respectively. The bed ut ilisation rate in Mogalakwena Local Municipality was 61.8%, the lowest in the province, with an average length of stay of 4.5 days . The last HIV prevale nce survey in the Mogalakwena Local Municipality was conducted in 2000 and estimated the prevalence to be 10.2% (MLM , 2012). The TB incidence (all cases) was above 600 per 100 000 between 2008 and 2011 and then decreased to 565.1 per 100 000 in 2012 and 547.2 per 100 000 in 2013. The TB incidence 1 The Gini - coefficient, developed in 1912 by Italian statistician Corrado Gini, is a mathematical measure of income inequality. Its theoretical maximum value is 1 – which would imply that a single person receives 100% of the total income and the remaining people receive none – and its theoretical minimum value is 0 – in which case everyone receives exactly the same income. The Gini - coefficient of the United States of America is between 0.45 and 0.5, while that of Sweden is 0.23.

208. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environme ntal 187 Activities Potential I mpacts Mitigation T ype Potential for Residual R isk The high density population/ influx of people from periphery areas seeking employment on the mine, leading to increased inability of the existing health services to cope. Skills development due to the creation of new employment opportunities (Positive Impact). . Improved standard of living of households directly or i ndirectly benefiting from created employment opportunities (Positive Impact). Manage through consultation processes to determine expectations and reduce through inclusion of LED programmes, skills development programmes etc. None for positive impact. Pr oject Capital E xpenditure Increase in production and GDP - R of the national and local economies (Positive Impact). Increase in government revenue due to investment (Positive Impact). Benefits derived from investment by the mine into the local economic de velopment projects (Positive Impact). Control by monitoring LED projects and ensuring benefits are realised. None for positive impact. Rehabilitation In - migration of faunal species into the project area (Positive impact) Increased occurrence of invader p lant species. Physical control (i.e. mechanical or chemical treatment) The project site is approximately 10 109 ha, hence there is a potential residual risk for invader species to spread.

19. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental x Table 13 - 10: Classes of River Systems ................................ ................................ ............ 101 Table 13 - 11: Current Ecological and Potentially Achievable Management Classes .......... 101 Table 13 - 12: GDP - R and GVA - R per Capita (2013) ................................ .......................... 102 Table 13 - 13: Structure of the study areas’ economies (nominal 2013 prices) and CAGR (2003 - 2013) ................................ ................................ ................................ ...................... 103 Table 13 - 14: Population Size and Historical Growth Rates ................................ ............... 104 Table 13 - 15 : Gender - and Age Distribution ................................ ................................ ........ 105 Table 13 - 16: Highest Level of Education (20 years and older) ................................ .......... 106 Table 13 - 17: Employment Status ................................ ................................ ...................... 106 Table 13 - 18: Individual Monthly Income ................................ ................................ ............ 107 Table 13 - 19: Household water supply ................................ ................................ ............... 108 Table 13 - 20: Household sanitation facilities ................................ ................................ ...... 109 Table 13 - 21: Energy Sources and Uses ................................ ................................ ............ 109 Table 13 - 22: Roads Potentially Impacted by Project ................................ ......................... 112 Tab le 13 - 23: Identified Heritage Resources within the Project area ................................ .. 117 Table 13 - 24: Jurisdiction of Bakenberg TA ................................ ................................ ........ 126 Table 13 - 25: Farm Portions and Land Uses ................................ ................................ ...... 128 Table 13 - 26: Outstanding Land Claims ................................ ................................ ............. 130 Table 14 - 1: Identified Potential Impacts ................................ ................................ ............ 134 Table 14 - 2: I dentified Project Risks ................................ ................................ ................... 136 Table 17 - 1: Key Issues Raised by I&APs ................................ ................................ .......... 141 Table 21 - 1: Specialist Team and Qualifications ................................ ................................ . 147 Table 21 - 2: Braun - Blanquet Analysis Cover Abundance ................................ ................... 156 T able 21 - 3: Impact Scores and Present Ecological State Categories used by Wet - Health 159 Table 21 - 4: Categorisation of Expected Visu al Impact (adapted from Oberholzer, 2005) .. 167 Table 21 - 5: Key to Categorisation of Development (adapted from Oberholzer, 2005) ....... 168 Table 21 - 6: Impact Assessment Parameter Ratings ................................ ......................... 174 Table 21 - 7: Probability/Consequence Matrix ................................ ................................ ..... 178 Table 21 - 8: Significance Rating Description ................................ ................................ ...... 179 Table 21 - 9: Summary of PPP Activities in the EIA Process ................................ ............... 181 Table 21 - 11: Preliminary Proposed Measures ................................ ................................ .. 184

139. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 118 Site number Site type Description Images ____/Ste/ 004 Iron Age s ettlement A circular stone walled structure ( ± 15 m in diameter) was identified in close proximity to the closed granite quarry within the proposed TSF area. It is assumed that there may have once been more stone walls, but that have since been damaged and destroyed as a result of the quarrying. Decorated pottery possibly attributed to the Uitkomst facies were identified within the stone walls (See Figure 13 - 11 ). Figure 13 - 1 0 : Stone walled structure found at Ste/004 Figure 13 - 11 : Decorated ceramic potsherds at Ste/ 004

158. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 137 Potential Project Risk (Unplanned Occurrences ) Aspect Potentially Impacted Project Phase Hydrocarbon s pill from vehicles and machinery or hazardous materials or waste storage facilit ies Soil and water resources which would have a resulting impact on ecological and social systems Construction, Operation and Decommissioning Spills/leaks from pipelines, tailings dam, hazardous materials or waste storage facilit ie s Soil and water resources would have a resulting impact on ecological and social systems Construction, Operation and Decommissioning Mine flooding due to no dewatering Surface and groundwater resources would have a resulting impact on ecological and soci al systems Decommissioning and Post - Closure S afety risk from blasting, heavy vehicle traffic, open pit mining, crushing plant. Mine workers and surrounding communities Construction, Operation and Decommissioning Fire and explosions Mine workers and sur rounding communities Construction, Operation and Decommissioning

198. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 177 Rating Severity /Irreplaceability Spatial scale Duration /Irr eversibility Probability Environmental Social, cultural and heritage possibility of the impact materialising is very low as a result of design, historic experience or impleme ntation of adequate mitigation measures 1 Limited damage to minimal area of low significance, (e.g. ad hoc spills within plant area). Will have no impact on the environment. The positive impact on the environment will be insignificant and will not result in visible improvements Low - level repairable damage to commonplace structures. The positive impact on social and cultural aspects will be insignificant Very limited Limited to specific isolated parts of the site. Immediate Less than 1 month Highly unlik ely/None Expected never to happen.

1. P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province FOR LISTED ACTIVITIES ASSOCIATED WITH MINING RIGHT AND/OR BULK SAMPLING ACTIVITIES INCLUDING TRENCHING IN CASES OF ALLUVIAL DIAMON D PROSPECTING SUBMITTED FOR ENVIRONMENTAL AUTHORIZATIONS IN TERMS OF THE NATIONAL ENVIRONMENTAL MANAGEMENT ACT, 1998 AND THE NATIONAL ENVIRONMENTAL MANAGEMENT WASTE ACT, 2008 IN RESPECT OF LISTED ACTIVITIES THAT HAVE BEEN TRIGGERED BY APPLICATIONS IN TERMS OF THE MINERAL AND PETROLEUM RESOURCES DEVELOPMENT ACT, 2002 (MPRDA) (AS AMENDED). NAME OF APPLICANT : Pamish Investments No. 39 (Pty) Ltd TEL NO: +27 11 268 6555 FAX NO: +27 11 268 5170 POSTAL ADDRESS: P.O. Box 55295, Northlands, 2116 PHYSICAL ADDRESS: Block A, No. 24 Frick er Road, Illovo, 2116 FILE REFERENCE NUMBER SAMRAD: LP 30/5/1/2/3/2/1/10102EM

189. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 168 Table 21 - 5 : Key to Categorisation of Development (adapted from Oberholzer, 2005) Type of Development Examples of Development Category 1 Nature reserves, nature related r ecreation, camping, picnicking, trails and minimal visitor facilities Category 2 Low - key recreation / resort / residential type development, small - scale agriculture / nurseries, narrow roads and small - scale infrastructure Category 3 Low density resort / residential type development, golf or polo estates, low to medium - scale infrastructure Category 4 Medium density residential development, sports facilities, small - scale commercial facilities / office parks, one - stop petrol stations, light industry, medium - scale infrastructure Category 5 High density township / residential development, retail and office complexes, industrial facilities, refineries, treatment plants, power stations, wind energy farms, power lines, freeways, toll roads, large - scale infrastru cture generally. Large - scale development of agricultural land and commercial tree plantations. Quarrying and mining activities with related processing plants 21.3.13.1 Impact Assessment and Reporting A visual impact assessment report will be compiled and will consi der the following: ■ Identify the impacts, pre - and post - mitigation that the proposed infrastructure will have on the visual landscape, by rating the scale, duration, severity and probability of the impacts occurring; ■ Describe the current and post developmen t visual aspects of the project area in a specialist report with supporting visualisations including photo montages; and ■ Provide mitigation measures and recommendations in an attempt to reduce the potential visual impacts. 21.3.14 Cultural Heritage The objective o f the HIA is to identify all heritage resources within the impact footprint as far as possible, including intangible heritage resources and to assess both the positive and negative impacts on the individual heritage resources and cultural landscape. The h ighest likelihood of changes to heritage resources is associated with activities that will be undertaken during the construction phase, when damage or destruction is likely. The primary risk during the operational phase will be associated with the alterati on of the sense - of - place of the project area.

209. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 188 22 Item 2(l): Oth er Information required by the Competent A uthori ty 22.1 Impact on the Socio - economic Conditions of any Directly Affected P erson A social impact assessment will be undertaken as part of the EIA, the following issues impacting directly affected persons will be investigated during the EIA phase. Table 22 - 1 : Issues to be Investigated to Assess Potential Impacts Impact description Issue to be investigated Creation of employment opportunities Projected construction and operational workforce Skills levels of the loc al population, influencing its ability to take advantage of new employment opportunities Physical and economic displacement Current on - site land uses, vulnerability of households, extent of displacement and alternative land use activities Disruption of daily movement patterns, increase in road accidents and deterioration of local road conditions Expected traffic volumes and routes, community movement patterns, access to residential and business properties as well as services Damage or disturbance to arc haeological and cultural heritage Nature and extent of damage and the social implications thereof Decreased quality of life due to nuisance effects related to blasting, noise, dust, etc., impact on water Expected vibration, noise, air quality and water - re lated impacts 22.2 Impact on any National Estate referred to in S ection 3(2) of the National Heritage Resources Act A heritage impact assessment will be undertaken as part of the EIA process. Based on the current understanding of the cultural landscape and th e identified heritage resources within the project area, Digby Wells will be undertaking the following: ■ Exemption from further palaeontological assessments for the proposed infrastructure footprint as the palaeo - sensitivity is insignificant; ■ An HIA will be undertaken that includes the following heritage components:  An Archaeological Impact Assessment including reconnaissance to identify and record archaeological resources within the impact footprint;  An assessment of burial grounds and graves including reco nnaissance to identify, record and document all burials that may exist in the impact footprint;  Integration of additional specialist studies to determine any possible living heritage in the project area. Studies that may be considered for integration inclu de Social Impact Assessment, Biophysical Assessment and Visual Assessment.

69. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmenta l 48 Farm Name and Number Portio n Local Municipality Claimant Status on under mentioned property Gilli mberg 861 5 Mogalakwena Local Municipality No information available at this stage on under mentioned property 11.1.6 NGOs The following NGOs have been identified and will be consulted with during the process : ■ Agri SA; ■ S outh A frican N ational C ivic Organisatio n; ■ Transvaal Agricultural Union S.A (TLUSA); ■ Northern Transvaal Agricultural Union (NTLU); ■ Lawyers for Human Rights (LHR) ; ■ Endangered Wildlife Trust (EWT) ; ■ Birdlife South Africa ; ■ Arend Dieperink Museum,Mokopane ; and ■ Rock Art Research Institute . 11.1.7 Business T he following businesses or business entities have been identified and will be consulted with during the process: ■ Anglo Platinum; ■ Chamber of Mines; ■ Ivanhoe Mines Ltd; ■ Mokopane Business Chamber; and ■ Richard Spoor Inc Attorneys . 11.2 Consultation with I&APs A summary of the consultation activities are provided in Table 11 - 4 . Consultation with I&APs during the Scoping phase of the EIA was undertaken , as follows: ■ Th e Scoping Report wa s available at the Mogalakwena Public Library , the Ba kenberg Community Library and on the Digby Wells website from Friday 13 March 2015 till Thursday 16 April 2015 (30 days) , ecluding public holidays ;

43. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 22 Applicable legislation and guidelines used to compile the report Reference where applied from start to closure and beyond. Companies must develop and implement a comprehensive Social and Labour Plan (SLP) to p romote socio - economic development in their host communities and to prevent or lessen negative social impacts. National Environmental Management: Biodiversity Act, 2004 (Act No. 10 of 2004) (NEM:BA) The National Environmental Management: Biodiversity Act, 2004 (Act No. 10 of 2004) (NEM:BA) regulates the management and conservation of the bi odiversity of South Africa within the framework provided under NEMA. This Act also regulates the protection of species and ecosystems that require national protection and also takes into account the management of alien and invasive species. This Act works in accordance to the framework set under NEMA. The following regulations which have been promulgated in terms of the NEM:BA are also of relevance:  Alien and Invasive Species Lists, 2014 published (GN R599 in GG 37886 of 1 August 2014) ;  National Environmen tal Management: Biodiversity Act, 2004: Threatened and Protected Species Regulations;  National list of Ecosystems Threatened and in need of Protection under Section 52(1) (a) of the Biodiversity Act (GG 34809, GN 1002, 9 December 2011). As part of this pro ject, a flora, fauna, wetlands and aquatic assessment will be undertaken to determine the current status of the environment and to determine any potential ecological sensitivities to be avoided and/or mitigated. There are currently no applications submitte d in terms of NEM:BA for the project. This will be confirmed during the detailed specialist investigations. National Forests Act , 1998 (Act No. 84 of 1998). Species that are nationally protected have been listed under this act. A permit is required for th e removal of tree species, as listed in the act. Three plant Species of Special Concern (SSC) were recorded on the project site , a permit for the translocation of these species may be required. National Environmental Management: Air Quality Act, 2004 (A ct No. 39 of 2004) (NEM:AQA) According to the National Environmental Management: Air Quality Act, 2004 (Act No. 39 of 2004) (NEM: AQA) the Department of Environmental Affairs (DEA), the provincial environmental For the purpose o f this project, an Air Quality A ssessment will be carried out to determine the baseline conditions of the air prior to the implementation

41. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 20 Applicable legislation and guidelines used to compile the report Reference where applied On 29 November 2013 the Minister of Water and Sanitation repealed the list of waste management activities published under GN R718 of 3 July 2009 (GN R718) and replaced it with a new list of waste management activities under GN R921 of 29 November 2013. Included in the new list of waste activities are activities listed un der Category A, B and C. These activities include inter alia the following:  Category A describes waste management activities requiring a Basic Assessment process to be carried out in accordance with the EIA regulations supporting an application for a waste management licence;  Category B describes waste management activities requiring an Environmental Impact Assessment process to be conducted in accordance with the EIA regulations supporting a waste management licence application; and  Category C describes w aste management activities that do not require a WML but these activities will have to comply with the prescribed requirements and standards as prescribed by the Minister, which includes the Norms and Standards for Storage of Waste, 2013. These activities include the storage of general waste at a facility with a capacity to store in excess of 100 m 3 and storage of hazardous waste in excess of 80 m 3 . The Waste Classification and Management Regulations (GN R 634) of November 2013 requires that all wastes be c lassified according to SANS10234 and managed according to its classification. residue materials generated. General and hazardous waste storage facilities will be managed in accordance with the Norms and Standards for Storage of Waste, 2013. National Water Act, 1998 ( Act No. 36 of 1998) (NWA) The National Water Act (Act No. 36 of 1998) (NWA) provides for the sustainable and equitable use and protection of water resources. It is founded on the principle that the National Government has overall responsibility for and au thority over water resource management, including the equitable A n Integrated Water Use Licence Application (IWULA) and an associated Integrated Water and Waste Management Plan (IWWMP) are required in terms of Section 21 of the National Water Act for the proje ct .

79. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 58 Interested and Affected Parties Date of comments received Issues raised EAPs response to issues as mandated by the applicant Consultation Status (consensus dispute, not finalised, etc.) Name of Individual Consulted numerical model. Please note that the Scoping Report (SR) contains deta iled Terms of Reference for specialist studies that will be undertaken during the EIA. The SR will be submitted to DMR who will approve the ToR, or indicate additional requirements. The current phase of the EIA process is an opportunity for all IAPs to com ment and suggest additional key issues / concerns. Mpfariseni Nelusi Key Stakeholders Meeting 27 March 2015 MLM will not accept any proposal to construct smelters if the LoM is only five years. Noted. At this stage there are no plans to develop a smelt er as part of the mine. The LoM is in fact 30 years not five. Leonard Sone Waterberg District Municipality 27 March 2015 Will the main source of power be Eskom or other sources? Main source will be Eskom with whom discussions are under way. But, this doe s not form part of current Scope of Work (SoW). The current EIA process is specific to mine site only. Any EIA required for a power line will be a separate process undertaken by

75. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 54 Interested and Affected Parties Date of comments received Issues raised EAPs response to issues as mandated by the applicant Consultation Status (consensus dispute, not finalised, etc.) Name of Individual Consulted owners to reach agreement for repairs and or compensation. Abel Kotzé & Stephanus Kotzé Comment Sheet 26 March 2015 The project will result in security issues A Social Assessment will be undertaken and presented during the EIA Phase of the Project. This assessment will identify potential safety and security issues, and present suitable mitigation and management measures to reduce potential safety and security impacts. Specific mitigation and management measures will be recommen ded to reduce potential negative impacts and enhance positive impacts. The Applicant under the Mine Health and Safety Act (MHSA) will need to secure its mining area. The Applicant will also work with the South African Police Services (SAPS) to address sec urity issues during construction and operation. Fanie Kotze Commercial Farmers Meeting 26 March 2015 Abel Kotzé & Comment Sheet 26 March Change in land use from agriculture to Pamish will liaise with the district and

51. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 30 Applicable legislation and guidelines used to compile the report Reference where applied mineral reserves, and will be co - ordinated by Eskom . Department of Water and Sanitation’s (D WS) Best Practice Guideline – G2: Water Salt Balances Accurate water and salt balances are considered to be one of the most important and fundamental water management tools available to the mi nes. This guideline presents the practical procedure to develop water balances and defines what should be considered in the balances as well as the level of detail. A salt amd water balance will be compiled for the project. Department of Water and Sani tation’s (DWS) Best Practice Guideline – G4: Impact Prediction The impacts of mine activities on the groundwater environment must be assessed as part of the mining right application, as well as for the Integrated Water Use Licence Application (IWULA). The baseline conditions must be assessed to define the current aquifer systems, groundwater use and groundwater conditions before mine commencement and to determine the extent of possible future impacts on the groundwater resources. An Integrated Water Use Lic ence Application (IWULA) and an associated Integrated Water and Waste Management Plan (IWWMP) are required in terms of Section 21 of the National Water Act. The IWULA and IWWMP will be compiled and submitted to the Department of Water and Sanitation (DWS) as the decision making authority. Department of Water and Sanitation’s (DWS) Best Practice Guideline – G1: Storm Water Management Plan (SWMP) These are guidelines provided for the development of a SWMP by DWS. The following will be undertaken to develo p the conceptual SWMP:  Delineate the clean and dirty area contributing to runoff (based on the final layout plans) and site specific hydrological assessments to determine volumes that require to be handled. The A Storm Water Management Plan (SMWP) will be compiled in line with these guidelines .

54. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 33 Applicable legislation and guidelines used to compile the report Reference where applied of the municipality and it is acknowledged that it is the main driving forc e to achieve growth and development in the area . Waterberg District Integrate d Transport Plan (2011) An Integrated Transport Planning (ITP) approach is required to ensure that several parts and elements of the transport system complement each other so that its total output can benefit the end user. Each Municipality (Planning Autho rity) prepares an ITP. Each type of ITP must inform the relevant authority’s Integrated Development Plan (IDP) . As part of the project, a Traffic Impact Assessment will be undertaken to assess the impact of the proposed development to the existing road ne twork. Limpopo Green Economy Plan (2013) The goals of the Limpopo Green Economy plan are: Generate Jobs Improve Environmental Quality Create Enabling Conditions for Green Growth Change Behavioural and Production Patterns Build a New Economic/Environ mental Paradigm for Limpopo There are many initiatives such as water management and sustainable production and consumption. The initiatives as outlined in this plan will be considered as part of the GHG Study undertaken for the project, particularly relat ing to the climate change response. GHG Protocol: Corporate Accounting and Reporting Standard, 2004 The estimated Green House Gas footprint for the project will be developed in accordance with the World Resources Institute (WRI) and World Business Counci l for Su stainable Development (WBCSD). Even though the standard is intended to provide guidance on accounting for and reporting on GHG emissions at the organisational level, the standard can be applied to individual projects. A GHG assessment is being unde rtaken for the project to quantify the possible emissions and to identify technically feasible mitigations. International Finance Corporation (IFC) This project will consider the guiding principles set out

74. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 53 Table 12 - 1 Interested and Affected Parties Interested and Affected Parties Date of comments received Issues raised EAPs response to issues as mandated by the applicant Consultation Status (consensus dispute, not finalised, etc.) Name of Individual Consulted Landowners AJ Kotze Commercial Farmers Meeting 26 March 2015 Air Quality An Air Qualit y study will be undertaken as part of the Environmental Impact Assessment (EIA). This study will identify areas that may potentially be impacted from an air quality perspective and recommend mitigation measures to reduce potential negative impacts. The fin dings of the air quality assessment will be presented in the Draft EIA Report. The report will also recommend monitoring. Abel Kotzé & Stephanus Kotzé Comment Sheet 26 March 2015 Blasting A Blast and Vibration Assessment will be undertaken to determine the blast radius. A structural survey will be completed, prior to commenc ement of mining , which will record the current status of all houses in the blast radius, including foundations and any existing cracks. If houses crack or cracks increase, the App licant will consult with

82. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 61 Interested and Affected Parties Date of comments received Issues raised EAPs response to issues as mandated by the applicant Consultation Status (consensus dispute, not finalised, etc.) Name of Individual Consulted Andries Masanab o Sepharane 25 March 2015 Elizabeth Mmotlana Sepharane 25 March 2015 Felicia Langa Ditlotswane 24 March 2015 Michael Mathaba Ditlotswane 24 March 2015 Albert Mabusela Malokongskop 24 March 2015 Lesiba Kwenaite Malokongskop 24 March 2015 Malungu Malokong Malokongskop 23 March 2015 Seofiias Sepira Pudiakgopa Village 23 March 2015

32. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Di gby Wells Environmental 11 PFWDISS 73.88 3.37 26.80 38.30 19.78 6.90 0.21 30.20 12.80 0.03 0.43 OMAG 2.04 3.80 32.90 47.10 0.67 9.70 0.40 22.50 10.10 0.02 0.11 NMAG 7.22 4.32 46.20 66.10 3.34 15.60 0.49 8.30 5.90 0.02 0.14 5.2.2 Mining Method Open pit mining is considered the optimal mining method based on the thickness and positioning of the mineral resource. The MML is covered by 2 m of soil which will be stripped to expose the outcrop. Open pit mining is proposed to be undertaken outwards from the middle of the strike length advancing north and s outh to an initial depth of 20 m below the surface then to 40 m and the reafter to 60 m, and 80 m. A bench height of 10 m will be used to allow for the separate loading of the two ore layers and the parting. The parting ore will either be stockpiled as a low grade ore or be sent to the waste rock dump, depending on its grade. There are two open pits planned, which are separated by the D4380 Provincial Road, the approximate footprint of the north and south open pits are 129 ha and 66 ha respectively . Ple ase refer to Appendix 4 for the project infrastructure layout map. It is likely that the north pit (129 ha) will be mined first for approximately 10 years, thereafter the south pit (66 h a) will be mined at the same time, therefore both pits would be mined for the last 20 years of the LoM. The Life of Mine (LoM) is approximately 30 year s with a Run of Mine (RoM) of up to one million tonnes per annum (tpa). 5.2.3 Mineral Processing Ore will be transported from the open pit to the plant by trucks. A concentrator plant will be constructed for initial processing. Ore processing will commence with crushing which is undertaken in three stages and produces material with a size of 44 millimetres (mm). Based on typical industry performance, the plant is assumed to perform for 5 500 operational hours per annum ( i.e. 358 operating days per annum, with an 80% utilisation of 80% availability) . Material from the crushed material stockpile will then be reclaimed and processed through a conventional rodmill - ballmill combination to produce a product of 53 micrometres (μm). Following grinding, magnetite will be recovered through a three - stage low intensity magnetic separation circuit. The magnetic separation product will be dried by a filter press and stockpiled for further processing, while the non - magnetic waste will b e thickened and disposed of at the propose d tailings dam. Refer to Figure 5 - 1 .

17. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental viii 25 Item 2(k): Undertaking Regarding Level of Agreement ................................ ........ 190 26 References ................................ ................................ ................................ .......... 191 LIST OF FIGURES Figure 5 - 1: Process Flow Diagram of the Concentrator Plant ................................ .............. 12 Figure 7 - 1: Growth in Vanadium Demand ................................ ................................ ........... 35 Figure 7 - 2: Gro wth in Vanadium Demand ................................ ................................ ........... 36 Figure 13 - 1: Average Monthly Temperature for the Project Site (2011 - 2013) ..................... 81 Figure 13 - 2: Average Monthly Rainfall of the Project Site (2011 - 2013) ............................... 82 Figure 13 - 3 : Surface Wind Rose for the Project Site (2011 - 2013) ................................ ...... 83 Figure 13 - 4: Piper Diagram ................................ ................................ ................................ . 93 Figure 13 - 5: Landscape of the Acacia borleae - Eragrostis rigidior ................................ ....... 95 Figure 13 - 6: Landscape of the Acacia tortilis – Eragrostis rigidior ................................ ....... 96 Figure 13 - 7: Landscape of the Commiphora marlothii – Heteropogon contortus ................. 96 Figure 13 - 8: Plant SSC recorded on Site ( Combretum imberbe (Leadwood); Scadoxus puniceus (Royal Paint Brush) and Sclerocarya birrea (Marula)) ................................ .......... 98 Figure 13 - 9: MSA lithics recorded in the Project area ................................ ........................ 117 Figure 13 - 10: Stone walled structur e found at Ste/004 ................................ ...................... 118 Figure 13 - 11: Decorated ceramic potsherds at Ste/004 ................................ .................... 118 Figure 13 - 12: Decorated ceramic potsherd found at Ste/005 ................................ ............ 119 Figure 13 - 13: Small koppie where the potsherd was identified ................................ .......... 119 Figure 13 - 14: Small shelter with undiagnostic ceramic potsherd found at Ste/006 ............ 120 Figure 13 - 15: Walling behind the shelter ................................ ................................ ........... 120 Figure 13 - 16: Rock pool at the base of the hill found at Ste/007 ................................ ....... 121 Figure 13 - 17: Southern section of the stone walled settlement at Ste/008 ........................ 122 Figure 13 - 18: D ecorated potsherd found at Ste/008 ................................ .......................... 122 Figure 13 - 19: Decorated lug found at Ste/009 ................................ ................................ ... 123 Figure 13 - 20: Side profile of the lug fragment ................................ ................................ ... 123 Figure 13 - 21: Grave of Johannes Seleka Lamola at BGG/010 ................................ .......... 124 Figure 13 - 22: Stone wall enclosure at Ste/011 ................................ ................................ .. 125

45. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 24 Applicable legislation and guidelines used to compile the report Reference where applied R1604 (GG3648 of 8 September 1972 provides safety distances from explosive storage areas. Environmental Conservation Act, 1989 (ECA), (Act N o. 73 of 1989) - National Noise Control Regulations, GN R.154 (10 January 1992) These regulations make provision for guidelines pertaining to noise control and measurements. The regulations make reference to the use of th e South African National Standards 10103:2008 (SANS) guidelines for the Measurement and Rating of Environmental Noise with Respect to Land Use, Heal th, and Annoyance and to Speech Communication . The National Environmental Management: Air Quality Act, 2004 (Act No 39 of 2004) also provides for noise control . A Noise Impact A ssessment will be undertaken as part of the EIA process to understand the imp act of the proposed mine activities on the ambient noise environment. Traditional Leadership and Governance Framework Amendment (Act of 2003) and Council of Traditional Leaders (Act of 1997) These two acts provide for the recognition and establishment of traditional communities and councils, and provide a framework for traditional leadership and the roles and responsibilities of this leadership. Since the project is located on tribal land, the role of the tribal authorities will be particularly important during the stakeholder engagement process that will be undertaken as part of the EIA process. Restitution of Land Rights Act, 1994 (Act No. 22 of 1994) This act provides for the restitution of rights in land to people or communities dispossessed of such rights after June 1913 as result of past racially discriminatory laws or practices. It will be confirmed during the consultations with traditional authorities and land owners whether there are any land occupiers who need to be consulted. Digby Wells has also enquired if there are any land claims on the various properties and a letter has been submitted to Mr Mphasha of the Limpopo Department of Rural Development and Land Reform, Land Claims Commission, on the 28 January 2015. A letter was

78. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 57 Interested and Affected Parties Date of comments received Issues raised EAPs response to issues as mandated by the applicant Consultation Status (consensus dispute, not finalised, etc.) Name of Individual Consulted perspective and recommen d mitigation measures to reduce potential negative impacts. The findings of the air quality assessment will be presented in the Draft EIA Report. Manie Uys Commercial Farmers Meeting 26 March 2015 Impact on game breeding. A SIA and Macro Economic Study will be undertaken during which community members will be interviewed, including the cattle owners association. These assessments w ill identify and assess impacts. The assessment will also recommend compensation measures, should the project result in eco nomic displacement. Municipal councillor No comments have been received from the ward councillors. Municipality Mpfariseni Nelusi Key Stakeholders Meeting 27 March 2015 A proper geohydrological assessment must be completed that must include geophysic al surveys within a 1 km radius of the project area . A hydrogeological study will be undertaken and include a detailed hydrocensus, geophysical surveys, aquifer and pump testing, and a

107. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 86 si de of the Mogalakwena River and flows towards the west, feeding into the Mogalakwena River. An indication of surface water uses was obtained from the Department of Water and Sanitation (DWS) water use registration data base (WARMS) which indicated that th e primary water uses are irrigation, mining, urban and rural domestic supply . 13.1.5.2 Surface Water Quality Surface water quality sample s have been collected from the Mogalakwena and Sterkrivier, on 15 th and 16 th of January 2015. Table 13 - 4 presents the coordinates of the sampling points. Table 13 - 4 : Surface Water Monitoring Locations Point Name Latitude Longitude Location SW1 - 23.97113100 28.69598600 Near the R 518, south of Lyden (Upstream of project site) SW2 - 23.90947000 28.7265100 Along the Mogalakwena River, southeast of Kaditshwene (Downstream of project site) SW3 - 23.87934000 28.68970900 North of Eseldrift (Downstream of project site) SW4 - 23.95324400 28.78766200 Along the Mogalakw ena River (Upstream of project site) SW5 - 23.92715000 28.75387500 Along the Mogalakwena River (within the project site) Samples were submitted to Aquat ico Laboratory (Pty) Ltd, a SANA S accredited laboratory in Pretoria to be analysed for physical and ch emical water quality parameters . Water quality results have been benchmarked against the South African National Standards (SANS) 241: 2011 drinking water standards and with the Resource Water Quality Objectives (DWA, 2011) .

88. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 67 Interested and Affected Parties Date of comments received Issues raised EAPs response to issues as mandated by the applicant Consultation Status (consensus dispute, not finalised, etc.) Name of Individual Consulted Village 2015 legal process is that while the DMR takes the representations of t he community into account, it is the State that awards the mining right. M H Lekutso Morulaneng / Haakdoringdraai. 28 March 2015 September Majadibudu Morulaneng 28 March 2015 Why were communities not involved during prospecting? Izingwe started prospecting in 2004. Pamish does not know how Izingwe consulted before Pamish started with the Prospecting activities. Pamish has consulted with Tribal Council( T C ) since 2012. The Kgoshi is aware of the current project. Pamish obtained the Prospecting Licence from Izingwe in 2010 . Prospecting was halted due to finances and commenc ed in 2011 and concluded in 201 5 . Prospecting licence expired in March 2015. Prospecting right consultation tak es place when PRA is submitted. This occurred long before Pamish became involved. The transfer of the PR to Pamish does not require community consultation. However, Pamish involved the TC in

96. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 75 Interested and Affected Parties Date of comments received Issues raised EAPs response to issues as mandated by the applicant Consultation Status (consensus dispute, not finalised, etc.) Name of Individual Consulted 2015 Lesiba Jacob Manamela Ditlotswane 24 March 2015 Margaret Pila Ditlotswane 24 March 2015 Richard Sethoga Ditlotswane 24 March 2015 Seabi Abraham Malusi Ditlotswane 24 March 2015 Amos Lesiba Mabusela P udiakgopa Village 23 March 2015 Water quality impacts. Surface and ground water impact assessments will be undertaken, with the findings presented as part of the EIA Report. The studies will assess potential impacts on water quality and quantity, with res pect to surrounding receptors. These studies will develop and recommend mitigation and management plans to manage potential impacts to surface and groundwater Seleka Pila Claremont 31 March 2015

97. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 76 Interested and Affected Parties Date of comments received Issues raised EAPs response to issues as mandated by the applicant Consultation Status (consensus dispute, not finalised, etc.) Name of Individual Consulted resources. Traditional Leaders Malunga Malokong Baken berg TC Meeting 23 March 2015 S tructural damage . A Blast and Vibration Assessment will be undertaken to determine the blast radius. A structural survey will be completed, prior to commencement of mining , which will record the current status of all house s in the blast radius, including foundations and any existing cracks. If houses crack or cracks increase, the Applicant will consult with owners to reach agreement for repairs and or compensation. Lesiba Makgakga Bakenberg TC Meeting 23 March 2015 What w ill happen to unidentified heritage site? Chance Find Procedures (CFPs) will be included in the HIA to mitigate against accidental exposure of heritage sites. All heritage sites are protected in accordance with NHRA, irrespective of whether they have been recorded or not. Phillip Lebelo Bakenberg TC 23 March How will heritage be protected? All heritage sites are protected in

122. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 101 modification that has occurred within their sub - catchments. Classes also exist from C to F. Table 13 - 10 demonstrates the descending order of river health classes. Table 13 - 10 : Classes of River S ystems Class Description A Natural B Largely Natural C Moderately Modified D Largely Modified E Seriously Modified F Critically Modified The systems associa ted with the project site r ange from largely natural to moderately impacted. Table 13 - 11 demonstrates the current p resent ecological sensitivity of the catchment as well as what, if managed correctly it could become (its best attainable ecological managemen t class). The estimated importance and sensitivity category ranks the rivers in terms of their biodiversity value, while the present ecological sensitivity is a reflection of the current state of the river. The river will then be managed to the best attai nable management class. These categories for the aquatic ecosyste ms associated with the project are outlined in greater detail below. Table 13 - 11 : Current Ecological and P otentially A chievable Management C las ses Quaternary Catchment E stimated I mportance and S ensitivity C ategory Present Ecological and Sensitivity Best A ttainable E cological M anagement C lass A62B Low/Marginal Class B Class B A61G High Class B Class B A61J Moderate Class C Class B Source: Kley nhans (2000) 13.1.11.1 Expected fish species Data does not exist for catchments A62B and A61G , h owever sufficient data is pre sent for A61J to provide an indication of whic h fish may be present in the rivers of the project as they are all linked . Refer to Appendix 8 for the expected fish species within the project area.

92. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 71 Interested and Affected Parties Date of comments received Issues raised EAPs response to issues as mandated by the applicant Consultation Status (consensus dispute, not finalised, etc.) Name of Individual Consulted Applicant will ensure that local community members are employed as far as possible. Alfred Rachekhu Taolome 27 March 2015 Will the mine recruit locally? Pamish has committed to employ skilled and unski lled people locally as far as possible. Joel Lebeto Sepharane 28 March 2015 Charles Langa Basogadi 25 March 2015 Elias Digwaswi Basogadi 25 March 2015 Moses Mashitiso Ditlotswane 24 March 2015 Sydney Kadi Kaditshwene 25 March 2015 St even Malome Kwenaite / Moutjane 30 March 2015

125. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 104 The Mogalakwena Local Municipality has an executive mayor, proportionally elected councillors and ward councillors who are responsible for representing the needs o f the people in the respective municipal wards. The population within each ward is represented by a ward committee and councillors . In addition to municipal administration, several areas within this local municipality are under the administration of Tradit ional Authorities (TA) . Each TA is headed by a paramount chief or Kgoshi and his subordinate headmen. There are nine traditional authorities within the municipality . T he local study area (1389 km 2 ) is defined as Ward 9,10,11,15, and 16 of the local municip ality as well as Ward 18 of the A ganang L ocal M unicipality. 13.1.13.2 Population Growth and D istribution According to Census 2011 data, South Africa’s population was estimated to be above 51 million ( Table 13 - 14 ). About one out of ten peopl e in the country resided in Limpopo. The Mogalakwena Local Municipality housed about 307 863 people in 2011, or just more than 6% of the Limpopo population. Of the settlements closer to the proposed site, Mokopane and Bakenberg housed 30 150 and 7 98 peop le, respectively. As indicated in the table below , the Compounded Annual Growth Rate (CAGR) of the local municipality’s population between 1996 and 2011 was 1.3%. It was lower than the CAGR of the national and provincial population figures during the same period, but slightly higher than that of the district. Whilst the population of the rest of the study areas experienced a slowdown in their growth rates, the primary study area’s population growth rate has been increasing. Table 13 - 14 : Population Size and Historical Growth Rates Study area Population Historical growth rates 1996 - 2001 2001 - 2006 2006 - 2011 1996 - 2011 South Africa 51 770 562 1.7% 1.3% 1.1% 1.4% Limpopo 5 404 866 3.4% 2.3% 1.8% 2.5% Waterberg D M 679 336 1.5% 1.0% 1.0% 1.2% Mogalakwena LM 307 863 1.1% 1.2% 1.5% 1.3% Human settlement within the local study area is characterised by two contrasting patterns. The vast majority of land is sparsely populated , while residential uses within the study area are concentrated within densely populated peri - urban settlements (e.g. Mosate, Malokong, Rooivaal, Ditlotswana, Sepharane, Rooivaal, and Kaditswene). These settlements comprise less than 30% of the surface land comprising the local study area, but acc ount for more than 95% of the total population (StatsSA, 2013).

40. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 19 Applicable legislation and guidelines used to compile the report Reference where applied R982 were published on 04 December 2014 and prom ulgated on 08 December 2014. Together with the EIA Regulations, the Minister also published GN R 983 (Listing Notice No. 1), GN 984 (Listing Notice No. 2) and GN R 985 (List ing Notice No. 3) in terms of S ections 24(2) and 24D of the National Environmental Management Act, 1998 (Act No. 107 of 1998) (NEMA), as amended. Authorisation. GN R. 9 82 National Environmental Management Act, 1998 (Act No. 107 of 1998): Environmental Impact Assessment Regulations, 2014 These three listing notices set out a list of identified activities which may not commence without an Environmental Authorisation from t he relevant Competent Authority through one of the following processes:  Regulation GN R. 983 - Listing Notice 1: This listing notice provides a list of various activities which require environmental authorisation and which must follow a basic assessment pr ocess.  Regulation GN R. 984 – Listing Notice 2: This listing notice provides a list of various activities which require environmental authorisation and which must follow an environmental impact assessment process.  Regulation GN R. 985 – Listing Notice 3: This notice provides a list of various environmental activities which have been identified by provincial governmental bodies which if undertaken within the stipulated provincial boundaries will require environmental authorisation. The basic assessment pro cess will need to be followed. Please see Table 5 - 1 for listed activities that will be potentially triggered by the project. National Environmental Management: Waste Act, 2008 (Act No. 59 of 2008) (NEM:WA) Waste management activities in respect of which a Waste Management Licence (WML) is required are to be undertaken in accordance with S ection 20 (b) of the National Environmental Management: Waste Act, 2008 (Act No. 59 of 2008) (NEM:WA). The application for authorisatio n to the DMR also includes waste management activities in terms of GN R. 921. In particular, Activiti es 1 , 2 and 11 of Category A will be applie d for. A waste classification process will be undertaken for

85. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 64 Interested and Affected Parties Date of comments received Issues raised EAPs response to issues as mandated by the applicant Consultation Status (consensus dispute, not finalised, etc.) Name of Individual Consulted Samuel Ngobeni Kaditshwene 25 March 2015 Sta nley Marakalala Sepharane 25 March 2015 Elias Digwaswi Basogadi 25 March 2015 Michael Mathaba Ditlotswane 24 March 2015 Robert Molomo Malokongskop 24 March 2015 Tsogang Mokgahla Malokongskop 24 March 2015 For the MRA the applicant must get consent from the community to mine. Mineral rights are owned by State. The applicant must compile and submit a MRA to DMR. If the DMR approves the MRA it will grant a mining right. The MRA process requires that the Applicant consult with communities, but t here is no formal agreement yet. The legal process is that while the DMR Charles Sethoga Pudiakgopa Village 23 March 2015

177. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 156 where sample plot s will be used to determine vegetation distribution in the field. The Braun - Blanquet floristic - sociological approach recognises units by the floristic composition and abundance. This methodology is easier and quicker to use than the alternative point - surve y or wheel - point methodology, results in a reliable estimate of cover abundance and it is the most widely used approach for vegetation studies. The Braun - Blanquet method incorporates seven cover - abundance categories as listed in Table 21 - 2 . A general species list will also be compiled from random traversing through the site. Table 21 - 2 : Braun - Blanquet Analysis Cover Abundance Cover Abundance Category One or few individ uals r Occasional and less than 5% of total plot area. + Abundant and with very low cover, or less abundant but higher cover; in any case less than 5% cover of total plot area. 1 Very abundant and less than 5%, or 5 - 25% cover, of a total plot area:  2m – Very abundant  2a – 5 - 12.5 % cover, irrespective of number of individuals  2b – 12.5 - 25% cover, irrespective of number of individuals 2 25 - 50% covers of total plot area, irrespective of number of individuals. 3 50 - 75% cover of total plot area, irrespectiv e of number of individuals 4 75 - 100% cover of total plot area, irrespective of number of individuals 5 21.3.6.3 Impact Assessment and Mitigation The potential impacts of the development and operation of the proposed operation on the receiving natural areas withi n the project area will be assessed. The sensitivity of the natural environment (i.e. SSC) will be considered in rating the impacts. Mitigation measures will be identified, where feasible and practical to avoid potential impacts such as fragmentation. The study will result in a flora impact assessment report. 21.3.7 Fauna The fauna specialist study will involve a number of tasks, to identify fauna habitats as well as fauna SCC so that these species can be considered in the design of the project (i.e. culverts

180. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 159 shallow water, and which land in normal circumstan ces supports or would support vegetation typically adapted to life in saturated soil.” 21.3.8.2 Wetland Ecological Health A ssessment In accordance with the method described by Kotze et al. (2007), a WET - Health assessment is to be undertaken on identified wetlands. A PES analysis is conducted to establish baseline integrity (health) for the associated wetlands. T o determine the integrity (health) of the characteri s ed HGM units for the project area, the WET - Health tool is applied. According to Macfarlane et al. (2007) the health of a wetland can be defined as a measure of the deviation of wetland structure and function from the wetland’s natural reference condition. The health assessment attempts to evaluate the hydrological, geomorphological and vegetation health in three separate modules to attempt to estimate similarity to or deviation from natural conditions. The overall health score of the wetland is calculated using the equation below, which provides a score ranging from 0 (pristine) to 10 (critically impacted in all respects). The rationale for this is that hydrology is considered to have the greatest contribution to health. The PES is determined according to Table 21 - 3 . 푊푒푡푙푎푛푑 퐻푒푎푙푡 ℎ = 3 ( 퐻푦푑푟표푙표푔푦 ) + 2 ( 퐺푒표푚표푟푝 ℎ 표푙표푔푦 ) + 2 ( 푉푒푔푒푡푎푡푖표푛 ) 7 Table 21 - 3 : Impact S core s and Present Ecological State C ategories used by Wet - Health Description Comb ined Impact Score PES Category Unmodified, natural. 0 - 0.9 A Largely natural with few modifications. A slight change in ecosystem processes is discernible and a small loss of natural habitats and biota has taken place. 1 - 1.9 B Moderately modified. A mode rate change in ecosystem processes and loss of natural habitats has taken place but the natural habitat remains predominantly intact. 2 - 3.9 C Largely modified. A large change in ecosystem processes and loss of natural habitat and biota has occurred. 4 - 5. 9 D The change in ecosystem processes and loss of natural habitat and biota is great but some remaining natural habitat features are still recognisable. 6 - 7.9 E Modifications have reached a critical level and ecosystem processes have been modified comple tely with an almost complete loss of natural habitat and biota. 8 - 10 F

16. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental vii 15 Item 2(h)(vi): Methodology used in Determining the Significance of the Environmental Impacts ................................ ................................ ........................ 138 16 Item 2(h)(vii): Positive and Negative Impact s that the Proposed Activity (in terms of the initial site layout) and Alternatives will have on the Environment and the Community that may be Affected ................................ ................................ ......... 139 17 Item 2h(viii): Possible Mitigation Measures that could be Applied and the Level of Risk ................................ ................................ ................................ ..................... 141 18 Item 2h(x): Outcome of the Site Selection Matrix and Final Layout Plan .............. 143 19 Item 2h(x): Motivation where no Alternatives Sites were considered ................... 144 20 Item 2h(xi): Statement Motivating the Preferred Site ................................ ........... 145 21 Item 2(i): Plan of Study for the Environmental Imp act Assessment Process ........ 146 21.1 Item 2(i)(i): Description of Alternatives to be Considered including the Option of Not Going Ahead with the Activity ................................ ................................ . 146 21.2 Item 2(i)(ii): Description of the Aspects to be Assessed as part of the Environmental Impact Assessment Process ................................ ................. 146 21.3 Item 2(i)(iii): Description of Aspects to be Assessed by Specialists ............... 147 21.4 Item 2(i)(iv): Proposed Method of Assessing the Environmental Aspects including the Proposed Method of Assessing Alternatives ............................ 172 21.5 Item 2(i)(v): Proposed Method of Assessing Duration Significance ............... 179 21.6 Item 2(i)(vi): Stages at which the Competent Authority will be Consulted ...... 179 21.7 Item 2(i)(vii): Partic ulars of the Public Participation Process with regard to the Impact Assessment Process that will be Conducted ................................ ..... 180 21.8 Item 2(viii): Description of the Tasks that will be undertaken during the Environmental Im pact Assessment Process ................................ ................. 182 21.9 Item 2(i)(ix): Measures to avoid, reverse, mitigate, or manage identified impacts and to determine the extent of the residual risks that need to be managed and monitored ................................ ................................ ................................ ..... 183 22 Item 2(l): Other Information required by the Competent Authority ........................ 188 22.1 Impact on the Socio - economic Conditions of any Directly Affected Person ... 188 22.2 Impact on any National Estate referred to in Section 3(2) of the National Heritage Resources Act ................................ ................................ ................ 188 23 Item 2(m): Other Matters Required in terms of Sections 24(4)(a) and (b) of the Act 189 24 Item 2(j): Undertaking Regarding Correctness of Information .............................. 190

95. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 74 Interested and Affected Parties Date of comments received Issues raised EAPs response to issues as mandated by the applicant Consultation Status (consensus dispute, not finalised, etc.) Name of Individual Consulted Haakdoringdraai. 2015 Alfred Rachekhu Taolome 27 March 2015 Seabi Abraham Malusi Ditlotswane 24 March 2015 Solly Pitseng Malokongskop 24 March 2015 Daniel Mashaba Malokongskop 24 March 2015 Maria Langa Ditlotswane 24 March 2015 Richard Sethoga Ditlotswane 28 March 2015 Community Representatives. Villages must elect representatives to sit on committees which can interact with Pamish. . Dinah Letsoko Sepharane 25 March 2015 David Mokhonwana Ditlotswane 24 March

48. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 27 Table 6 - 3 : Local By - Laws Applicable legislation and guidelines used to compile the report Reference where applied Waste (July 2004) Chapter 2 of the by - laws attend to Local Waste Plan. The objectives of the local waste plan, as set out in the by - laws, include: a) establishing a means of ensuring that waste is collected, re - used, recycled or disposed of without causing harm to human health or damage to the environment and, in particular, without: - (i) risk to water, air, soil, plants or animals; (ii) causing nuisance through noise or odours; or (iii) adversely affecting rur al or urban areas or areas of special interest; c) encouraging the minimisation or reduction of waste; Sections 22 of the Waste b y - law outline the laws governing the storage, collection, transportation and disposal of Special Industrial, Hazardous or Health Care Risk Waste. The application for environmental authori sation submitted to the DMR includes waste management activities in terms of GN R. 921. Activities 1, 2 and 11 of Ca tegory A have been applied for. Water and Sanitation (2005) Chapter 2 of the Wa ter and Sanitation by - law outlines the laws governing the application for water services. The main impression is that no one shall gain access to water services from the water supply system, sewage disposal system or through any other sanitation services unless they have applied for such services to the authorised agent. The applicant will apply to the local council for the project’s water requirements. Waterberg - Bojanala Priority Area (WBPA) in terms of GN R 495 on 15 June 2012 The WBPA comprises the W aterberg District in Limpopo Province and the Bojanala Platinum District in the North West. The overall aim of establishing the WBPA is to regulate and to ensure future sustainable development in the area and maintain the NAAQS. It became critical that a An Air Quality Impact Assessment and Management Plan will be developed as part of the project.

77. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 56 Interested and Affected Parties Date of comments received Issues raised EAPs response to issues as mandated by the applicant Consultation Status (consensus dispute, not finalised, etc.) Name of Individual Consulted Farmers Meeting 2015 resources . AJ Kotze Commercial Farmers Meeting 26 March 2015 Water use. The Applicant will apply for an Integrated Water Use Licence (IWUL) that will specify where water will be sourced from. However, there is not sufficient ground water to use; therefore the mine will be dependent on piped water. Lawful occupier/s of the land No lawful occupiers have been identified. Landowners or lawful occupiers on adjacent properties Man ie Uys Commercial Farmers Meeting 26 March 2015 Minimum distance a structure can be from a mine? Minimum distances are regulated by the MHSA. No infrastructure can be within 100m of a blasting zone. Pamish will abide by these regulations. Manie Uys Co mmercial Farmers Meeting 26 March 2015 Air Quality An Air Quality study will be undertaken as part of the Environmental Impact Assessment (EIA). This study will identify areas that may potentially be impacted from an air quality

5. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental i NON TECHNICAL SUMMARY Background Info rmation Pamish Investments No. 39 (Pty) Ltd (Pamish) is proposing the development and operation of a new Magnetite Open Pit Mine and associated infrastructure , including mineral processing at a site located 45 km northwest of Mokopane in Limpopo Province (hereafter referred to as “ the project ” ). The property details are presented in Table 1. Table 1: Property Details Farm Name: The proposed licence area is located on a group of five adjacent farms namely:  RE of Farm Vogelstruisfontein 765LR  RE of Farm Vli egekraal 783LR  RE of Farm Vriesland 781LR  RE of Farm Schoonoord 786LR  RE and Portions 1,2,3,4,5 and 6 of Farm Bellevue 808LR The land - use zoning is Agriculture for all farm portions. Application Area (Ha): 10 109 Ha (Combined area of the five farms) Magi sterial District: Mokopane District, Mogalakwena Local Municipality within the Waterberg District Municipality Distance and direction from nearest town: 45 km north - northwest of Mokopane and 65 km west of Polokwane 21 digit Surveyor General Code for each farm portion: Farm 21 digit SG code RE of Farm Vogelstruisfontein 765LR T0LR00000000076500000 RE of Farm Vliegekraal 783LR T0LR00000000078300000 RE of Farm Vriesland 781LR T0LR00000000078100000 RE of Farm Schoonoord 786LR T0LR00000000078600000 RE of Portion 1 of Farm Bellevue 808LR T0LR00000000080800001 RE of Portion 2 of Farm Bellevue T0LR00000000080800002

52. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 31 Applicable legislation and guidelines used to compile the report Reference where applied SWMP developed should conform to the guidelin es of the EHSG: Mining. It should ensure that temporary drainage installations should be designed, constructed, and maintained for recurrence periods of at least a 25 - year/24 - hour event, while permanent drainage installations should be designed for a 100 - y ear/24 - hour recurrence period.  Site specific assessments to establish the appropriate mitigation measures and surface water monitoring programme. Department of Water an d Sanitation’s (D WS) Best Practice Guideline – H3 : Water Reuse and Reclamation Given the growing demand for water and the scarcity of this natural resource, it is important for any mining operation to prove that water utilisation is optimized by reuse and reclamation of contaminated water. The guideline presents processes that should be applied by a mine when developing a mine water reuse and reclamation plan. An Integrated Water and Waste Management Plan (IWWMP) will be compiled and will consider the reu se and reclamation of water. Limpopo Development Plan (2014) The purpose of the LDP is to se rve as a single reference point for policy - makers in government, private sector, civil society and donors with regard to developmental priorities for Limpopo, bearing in mind that development is about people. One of the key focus area of LDP is to create sustainable economic development, reduce unemployment and eradicate poverty. The LDP is the overarching strategy for Limpopo Province for the next five years, from 2014/2015 - 2019/2020 financial years. It is the overarching operational medium - term strateg y for the province . Due to the specific nature of this project, that it is mining and labour intensive, the project will endeavour to me et the objectives as outlined in the Limpopo Development Plan. Waterberg Environmental Management Plan (EMP) An EIA process, in terms of the EIA regulations 2014, is

53. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 32 Applicable legislation and guidelines used to compile the report Reference where applied An EMP is a plan or programme for protection of the environment that seeks to achieve a required end state and describes how activities that have, or could have, an adverse impact on the environment, will be mitigated, controlled, and monitored. An EMP addresses the environmental impacts during design, implementation and operational phases of a project. It is also aimed at ensuring that the developer maintains adequate control ove r the project . being undertaken as part of th is process. As required by the regulations, an EMP r will be submitte d as part of the EIA report. As part of the EMP r, mitigation measures will be ident ified. Furthermore, a closure and rehabilitation plan will be compiled. Waterberg Environmental Management Framework (EMF) The EMF is an initiative of the national Department of Environmental Affairs in partnership with the Limpopo Department of Economic Development, Environment and Tourism (LEDET) and the Waterberg District Municipality (WDM). The EMF is set out to support decision - making in the WDM area to facilitate appropriate and sustainable development. One of the objectives of the WDM EMF is to d evelop a decision support system for development in the area to ensure that environmental attributes, issues and priorities are taken into account. A site sensitivity analysis has been undertaken to identify the sensitive biophysical and socioeconomic feat ures of the project site. The sensitive areas as identified in the Waterberg EMF have been incorporated into the specialist studies (including critical biodiversity areas, National Freshwater Ecosystem Priority Areas (NFEPA) and Important Bird Areas (IBA)) Local Economic Development Plan (LED) Waterberg: The Waterberg LED recognises mining as a key sector in the district municipality followed by agriculture. A mining development strategy focusing on the improvement of the mining value chain has been esta blished in support of the local mining industry. The LED focuses on clusters which have been formed to facilitate the specialisation of certain resources. With the assistance of the public sector, the cluster development aims to maximise the benefits of mi neral resources through upstream and downstream activity in the local area. Mogalakwena: According to the Mogalakwena LED Plan (2011 - 2016) mining is the largest economic component Due to the specific nature of this project, that it is mining and labour intensive, the project can be considered as meeting the objectives both at a regional and local level.

90. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 69 Interested and Affected Parties Date of comments received Issues raised EAPs response to issues as mandated by the applicant Consultation Status (consensus dispute, not finalised, etc.) Name of Individual Consulted John Nkuna Morulaneng. 28 March 2015 Local Economic Development ( LED ). Amos Makopa Sepharane 25 March 2015 Robert Molomo Malokongskop 24 March 2015 Noko Masoga Pudiakgopa Village 23 March 2015 Samuel Kgoale Pudiakgopa Village 23 March 2015 Peter Malotana Kwenaite / Moutjane 30 March 2015 What opportunities will there be for Grade 12 learners? The Applicant has committed to a Skills Development Plan in the SLP. Part of the plan will be to award bursaries and scholarships, especially in maths and sciences fields. Dineo Marakalala Good Hope 30 March 2015 Ngoepe Undisclosed 28 March 2015

130. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 109 Table 13 - 20 : Household sanitation facilities Facility % Households Flush toilet (connected to sewerage system) 9% Pit toilet with ventilation (VIP) 8% Pit toilet without ventilation 79% None 3% Other 1% Source: StatsSA, 2013 Source: Stati stics S outh A frica , 2013 13.1.13.10 Energy S ource The majority of households within the local study area have access to electricity for lighting purpose s ( Tab le 13 - 21 ). With regards to cooking and heating there seems to be a greater reliance on alternative energy sources, especially wood. It is reasonable to argue that wood is sourced from areas surrounding rural communities. Tab le 13 - 21 : Energy Sources and Uses Source: Stati stics S outh A frica , 2013 13.1.13.11 Waste The local m unicipality owns two general landfill sites which are both licensed in terms of the Environmental Conservation Act, 1989 (Act No. 73 of 1989 ) . The Rebone Landfill site was classified as G : S: B - and receives only waste from Rebone Township which consists of 1500 households and local businesses. The Mokopane Landfill site is located approximately Energy source and purpose Study area Lighting Electricity 92% Candles 7% Other 1% Cooking Wood 51% Electricity 46% Other 3% Heating Wood 50% Electricity 40% None 9 % Other 1%

39. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 18 Table 6 - 1 : Relevant National Leg islation Applicable legislation and guidelines used to compile the report Reference where applied The Constitution of the Republic of South Africa, 1996 (Act No. 108 of 1996) Under S ection 24 of the Constitution of the Republic of South Africa, it is cle arly stated that: Everyone has the right to (a) an environment that is not harmful to their health or well - being; and (b) to have the environment protected, for the benefit of present and future generations, through reasonable legislative and other measure s that - (i) Prevent pollution and ecological degradation; (ii) Promote conservation; and (iii) Secure ecologically sustainable development and use of natural resources while promoting justifiable economic and social development. An EIA process is being undertaken to determine the impacts associated with the project. As part of the EIA process, mitigation measures and monitoring plans will be recommended to ensure that any potential impacts are managed to acceptable levels to support the rights as enshrined in the Constitution. National Environmental Management Act, 1998 (Act No 107 of 1998) (NEMA) and EIA Regulations (December 2014) The National Environmental Management Act, 1998 (Act No 107 of 1998) (NEMA), as amended was set in place in accordance with S ection 24 of the Constitution of the Republic of South Africa. Certain environmental principles under NEMA have to be adhered to, to inform decision making for issues affecting the environment. Section 24 (1)(a) and (b) of NEMA state that: The potential impact on the environment and socio - economic conditions of activities that require authorisation or permission by law and which may significantly affect the environment, must be considered, investigated and assessed prior to their implementation and reported to the organ of state charged by law with authorizing, permitting, or otherwise allowing the implementation of an activity. The Environmental Impact Assessment (EIA) Regulations, Government Notice Regulation (GN) The EIA process will be undertaken in accordance with the principles of Section 2 of NEMA as well as with the EIA Regulations, promulgated in terms of NEMA. These Listed Notices have been rev iewed against the project activities to determine the likely triggers. The listed activities which are potentially triggered under the Listing Notices are provided in Table 5 - 1 . Based on the activities listed, it h as been identified that a full EIA process is required for the project. An application for the listed activiti es has been submitted to the DMR who is the relevant Competent Authority in terms of this application for Environmental

81. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 60 Interested and Affected Parties Date of comments received Issues raised EAPs response to issues as mandated by the applicant Consultation Status (consensus dispute, not finalised, etc.) Name of Individual Consulted Sa m Kekana Kwenaite / Moutjane 30 March 2015 Blasting A Blast and Vibration Assessment will be undertaken to determine the blast radius. A structural survey will be completed, prior to commencement of mining, which will record the current status of all ho uses in the blast radius, including foundations and any existing cracks. If houses crack or cracks increase, the Applicant will consult with owners to reach agreement for repairs and or compensation. Blasting Johanna Temo Good Hope 30 March 2015 Mr So kotla Good Hope 30 March 2015 Frans Lekutso Mabula 28 March 2015 Phillip Lebeto Sepharane 28 March 2015 Mochacho Magosi Taolome 27 March 2015 Filemon Tala Basogadi 25 March 2015 John Ribombo Kaditshwene 25 March 2015

84. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 6 3 Interested and Affected Parties Date of comments received Issues raised EAPs response to issues as mandated by the applicant Consultation Status (consensus dispute, not finalised, etc.) Name of Individual Consulted Samuel Ngobeni Kaditshwene 25 March 2015 can see. Flora Mabusela Malokongskop 24 March 2015 Mabusela Esrom Malete Pudiakgopa Village 23 March 2015 Seleka Pila Claremont 31 March 2015 The mine will impact on grazing. A SIA and Ma cro Economic Study will be undertaken during which commun ity members will be interviewed. These assessments will identify and assess impacts, including loss of fields and grazing. The assessment will also recommend compensation measures, should the projec t result in economic displacement. James Baloyi Kwenaite / Moutjane 30 March 2015 William Mboweni Good Hope 30 March 2015 Ngoepe Undisclosed 28 March 2015 Joel Lamola Basogadi 25 March 2015

99. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 78 Interested and Affected Parties Date of comments received Issues raised EAPs response to issues as mandated by the applicant Consultation Status (consensus dispute, not finalised, etc.) Name of Individual Consulted Department of Land Affairs ( Department of Rural Development and Land Reform ) Mr SR Mphasha Land Claims Co mmission 9 February 2015 Confirmation of land claims over affected properties. Noted Department of Environmental Affairs No comments have been received from the department. Other Competent Authorities Affected No comments have been received from a ny other departments. Other Affected Parties Date of comments received Issues raised EAPs response to issues as mandated by the applicant Section and paragraph reference in this report where the issues and/or responses were incorporated Name of Individ ual Consulted Hermanus Prinsloo Anglo - 17 March Please note on the map that the Magnetite claims relative to our Boikgantsho as well Thank you for the comment the comment is noted.

93. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 72 Interested and Affected Parties Date of comments received Issues raised EAPs response to issues as mandated by the applicant Consultation Status (consensus dispute, not finalised, etc.) Name of Individual Consulted Mack Marakalala Good Hope 30 March 2015 Joel Lebeto Sepharane 28 March 2015 What percentage of workers will be skilled and unskilled? Pamish will try to employ locally as far as possible – skilled and u nskilled workers will be required for the mine. Pamish will also develop skills via a Skills Development Plan which forms part of the SLP David Mokhonwana Ditlotswane 24 March 2015 Bonnya Madireng Kaditshwene 25 March 2015 Joel Lebeto Sepharane 2 8 March 2015 Malungu Malokong Malokong 23 March 2015 Will any villages be resettled? No resettlement will be necessary. Ronald Moutjane Kwenaite / Moutjane 30 March 2015 Robert Molomo Malokongskop 24 March 2015

127. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 106 Table 13 - 16 : Highest Level of E ducation (20 years and older) Education level Study area Local General Female Male None 6% 8% 4% Some primary 26% 25% 27% Completed primary 6% 5 % 6% Some secondary 36% 35% 38% Completed secondary 19% 20% 19% Higher 7% 7% 6% Source: Stati stics S outh A frica , 2013 13.1.13.6 Employment In 2011, the employment rate among the local study area’s labour force was 15 % of the total population and 50% among the ec onomically active population ( Table 13 - 17 ) . Employment was mostly provided within the formal sector (73%), which is centred on the social and personal, wholesale and retail trade, as well as manufacturing sectors . Although agricul ture contributes only slightly to the local economy, the sector is considered a major source of informal employment within the local area. Employment within this sector is usually seasonal and with low remuneration. Unemployment among the economically acti ve population (50%) is high, irrespective of gender grouping . Due to the high unemployment rate a considerable number of households revert to survival strategies such as subsistence farming, which is prominent in the local study area, especially maize cu ltivation. The local study area also possesses the capacity for cattle farming, especially areas such as Mapela, Bakenberg and Rebone (MLM, 2012) . Table 13 - 17 : Employment S tatus Employment category % of total population Not economically active 64% Discouraged work seeker (DWS) 6% Economically Active 30% Employed 15% Unemployed 15% Source: Stati stics S outh A frica , 2013 13.1.13.7 Income Tab le 13 - 21 shows the individual monthly income distri bution for the population as a whole, as well as the proportionate breakdo wn across gender groups . Generally income levels within the local study area are extremely low , with almost 80% of people earning less than R 800 a month. The proportion of p eople e arning no income is irrespective of genders . A large

50. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 29 Table 6 - 4 : Project Specific Policies and Guidelines Applicable legislation and guidelines used to compile the report Reference where applied National Development Plan (NDP) Development in South Africa is guided by the NDP, which presents a shared long - term strategic framework within which more detailed development planning can take place to advance the long - term goals adopted in the NDP (National Planning Commission, 2011). The Plan aims to ensure that all South Africans attain a decent standard o f living through the elimination of poverty and the reduction of inequality. The NDP 2030 sets a target of creating approximately 11 million new jobs and achieving an annual average economic growth rate of 5.4% by 2030. The project will create approximatel y 150 jobs during the operational phase of the project a nd 500 permanent and contractor jobs during the construction phase. A SLP will be developed and submitted to the DMR. Accelerated and Shared Growth Initiative for South Africa (AsgiSA) The Initiative was launched in 2003 with the vision to halve poverty and unemployment among the country’s population by 2015. The i nitiative is considered one of the key vehicles driving South Africa’s economic policy and su bsequent development plans. One of the p rimary aim of AsgiS A is to t arget specific sector strategies and initiatives (including mining) to further stimulate economic growth and job creation . The project will create approximately 150 jobs during the operati onal p hase of the project and 500 permanent and contractor jobs during th e construction phase. A SLP will be developed and submitted to the DMR. National Infrastructure Plan The South African Government adopted a National Infrastructure Plan in 2012. The primary objective of the Plan is to transform the country’s economic land scape, while simultaneously creating significant numbers of new jobs, strengthen the delivery of basic services, and promoting integration with other African economies. In the context of the VMC Project the following SIPs bear relevance to the Limpopo Prov ince:  SIP 1: Unlocking of the northern mineral belt, with Waterberg as the catalyst in Limpopo entails investment in rail, water pipelines, energy generation and transmission to tap Limpopo’s rich The p roject will result in the development of support infrastructure such as roads, powerlines, pipelines . Even though these facilities will be developed for the purposes of the mine, the local authorities and communities would be able to easily access these s ervices for their use.

87. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 66 Interested and Affected Parties Date of comments received Issues raised EAPs response to issues as mandated by the applicant Consultation Status (consensus dispute, not finalised, etc.) Name of Individual Consulted Simon Monene Waterberg District Municipality 27 March 2015 David John Manganyi Kwenaite / Moutjane 30 March 2015 Will the total 10 109 ha be mined? The mine infrastructure will be developed in an area smaller than 1 000 ha, on the farm Vriesland and Vliegekraal Lucky Mokoka Sepharane 25 March 2015 Alfred Matswak e Malokongskop 24 March 2015 Malungu Malokong Undisclosed 23 March 2015 Ronald Moutjane Kwenaite / Moutjane 30 March 2015 Does the community agree with the development of the mine? Mineral rights are owned by State. The applicant must compile and s ubmit a MRA to DMR. If the DMR approves the MRA it will grant a mining right. The MRA process requires that the Applicant consult with communities, but there is no formal agreement yet. The Solomon Madibe Kaditshwene 25 March 2015 Madimetsa Masako Pudiakgopa 23 March

105. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 84 The Waterberg Group overlying the Lebowa Granite Suite in the western parts of the project site are considered to be between 1700 Million years ( Ma ) and 2000 Ma old, and of Kheisian period of the Palaeoproterizoic era. Du ring the Kheisian period, free atmospheric oxygen was available to produce ferruginous mineral oxides (Barker, et al., 2006, p. 301) . The oxidisation process allowed the formation of ‘red beds’, occurring in a cratonic setting in the Waterberg Group. The typical rocks associated with th is group are arenite and rudite, that are sedimentary rocks deposited by large braided rivers ( Barker, et al., 2006, p. 314) . Rudite includes sedimentary rocks composed of conglomerate rounded or angular granules, pebbles, cobbles and boulders. 13.1.4 Soil 13.1.4.1 Soil Types The soils of the project site are represented by four possible land types namely Ia, Ah, AE and Ea ( refer to Table 13 - 1 ). These land types are indicated on the 2328 Pietersburg and 2428 Nylst room land type maps and indicated on Plan 7 in Appendix 5 (Land Type Survey Staff, 1989). Table 13 - 1 : Dominant Soil Types and Slopes within the Project Site Dominant Land Type Land Type Dominant soil types Po tential occurrence % Dominant slope % Ia Red soils such as Oakleaf, Clovelly, Dundee 40 2 Black clay soils such as Valsrivier, Bonheim 20 2 Ah A mix of shallow rocky soils and heavy structured clays 3 – 15 1.5 – 2.9 Ae Mixed red soils 70 3.5 - 4 Ea B lack clay soils 90 2.8 - 3 13.1.4.1 Land Capability Land capability depends on the dominant soils that occur within the project site. The land capability p resent is expected to be Grazing Class IV – V, ( Table 13 - 2 and Plan 8 in Appendix 5 ). Table 13 - 2 : Agricultural Potential of Land Types Land Type Dominating Soil Capability Class Dominating Land Capability Class Agricultural Potential Ia IV IV Grazing

25. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Di gby Wells Environmental 4 3 Item 2(b): Description of the P roperty The property details as required are presented in Table 3 - 1 . Table 3 - 1 : P roperty Details Farm Name: The proposed licence area is located on a group of five adjacent farms namely:  RE of Farm Vogelstruisfontein 765LR  RE of Farm Vliegekraal 783LR  RE of Farm Vriesland 781LR  RE of Farm Schoonoord 786LR  RE and Portions 1,2,3,4,5 and 6 of Farm Bellevue 808LR The land - use zoning is Agriculture for all farm portions. Application Area (Ha): 10 10 9 Ha (Combined area of the five farms) Magisterial District: Mokopane District, Mogalakwena Local Municipality within the Waterberg District Mu nicipality Distance and direction from nearest town: 45 km north - northwest of Mokopane and 65 km west of Polokwane 21 digit Surveyor General Code for each farm portion: Farm 21 digit SG code RE of Farm Vogelstruisfontein 765LR T0LR00000000076500000 RE of Farm Vliegekraal 783LR T0LR00000000078300000 RE of Farm Vriesland 781LR T0LR00000000078100000 RE of Farm Schoonoord 786LR T0LR00000000078600000 RE of Portion 1 of Farm Bellevue 808LR T0LR00000000080800001 RE of Portion 2 of Farm Bellevue 808LR T0LR0 0000000080800002 Portion 3 of Farm Bellevue 808LR T0LR00000000080800003 Portion 4 of Farm Bellevue T0LR00000000080800004

196. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 175 Rating Severity /Irreplaceability Spatial scale Duration /Irr eversibility Probability Environmental Social, cultural and heritage and artefacts through phase two assessments 5 Very serious, long - term environmental impairment of ecosystem function that may take several years to rehabilitate The positive impact will be m oderately high and will have a long term beneficial effect on the natural environment Very serious widespread social impacts. Irreparable damage to highly valued items The positive impact will be moderately high and will result in visible improvements on t he socio - economic environment of the local and regional community, and/or promote archaeological and heritage awareness through mitigation Cercle/ Region Will affect the entire Cercle or region Project Life The impact will cease after the operational lif e span of the project. Likely The impact may occur. 4 Serious medium term environmental effects. Environmental damage can be reversed in less than a year The positive impact on the On - going serious social issues. Significant damage to structures / items of cultural significance The positive impact on the socio - economic environment will be of a Commune Area Will affect the whole municipal area Long term 6 - 15 years Probable Has occurred here or elsewhere and could therefore occur.

168. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 147 ■ Development of two open pits including blasting; ■ Development of waste rock dump; ■ Concentrator plant; ■ Conveyor belts; ■ Tailings dam; ■ Pollution control dam, water storage dam and associated pipelines; ■ Storage of fuels, process concentrate, maintenance/wor kshop oils; ■ Waste generation, storage and disposal (hazardous and general); ■ Product storage (magnetite concentrate); ■ Employment and capital expenditure; and ■ Rehabilitation of project site. 21.3 Item 2(i)(iii): Description of Aspects to be Assessed by S peciali sts A full suite of specialist studies will be undertaken to support the EIA phase , refer to Table 21 - 1 for a list of the specialist team and their qualifications. Table 21 - 1 : Specia list Team and Qualifications Specialist Study Name of Specialist Qualifications Flora Crystal Rowe (Digby Wells) Bachelor of Science and Honours in Botany Fauna (including avi - fauna) James Coetzee (Digby Wells) Diploma in Nature Conservation Cert Sci Nat Aquatics Russell Tate (Digby Wells) MSc Zoology Aquatic Ecotoxicology Soils and Land Capability Hendrik Smith (Digby Wells) PhD (Interdisciplinary) Wetlands Caroline Wallington (Digby Wells) BSc Honours in Botany Hydrology Lucas Smith (Digby Wells) M Sc (Geohydrology) Hydrogeology Robel Grebrekristos (Digby Wells) PhD in Hydrogeology Air Quality Matthew Ojelede (Digby Wells) MSc Environmental Science

83. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 62 Interested and Affected Parties Date of comments received Issues raised EAPs response to issues as mandated by the applicant Consultation Status (consensus dispute, not finalised, etc.) Name of Individual Consulted Mack Marakalala Good Hope 30 March 2015 Will the mine affect the climate? The mine will produce Green House Gas (GHG) emissions. Part of the EIA proce ss and consequent EMP will be to develop plans to reduce and manage emissions that contribute to climate change. Furthermore, a GHG Emissions Inventory will be compiled as part of this Project . Isaac Mila Undisclosed 28 March 2015 Seleka Pila Clarem ont 31 March 2015 Will graves be affected? All graves are protected under South African (SA) legislation; the first thing will be to complete a HIA. Specialists will survey mine area to determine if there are any graves in the project area. If there are g raves, these will be avoided as far as possible. If there is a grave that cannot be moved Grave Resettlement Process (GRP) will be required which will include a process to identify relatives and consult with them, however the community must assist in ident ifying heritage sites as the specialist can only record what they Ephraim Madibela Kwenaite / Moutjane 30 March 2015 Jonas Malapile Kwenaite / Moutjane 30 March 2015 Samuel Seabo Kwenaite / Moutjane 30 March 2015 Phillip Lebeto Sepha rane 28 March 2015

150. Final Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wel ls Environmental 129 Farm Portion Project components (D - Directly affected; N - Not affected) Land Use Occupants Structures P lant Tailings facility Mining pits Waste Ro ck dump Residential Heritage sites (g raves /initiation sites ) Government use ( roads ) C ultivation ( S - subsistence; C - commercial ) Grazing (cattle, sheep & goat ) Use of natural resources (firewood, medicinal plants, water, building materials) Landowner hou s eho lds Communities Potentially vulnerable 3 household s Formal residential Informal residential Business (e.g. warehouses, offices, workshops, farm buildings) Option 1 Option 2 Option 1 Option 2 Hellem Bricksteen 761 RE X X S X Mosate X X X X

76. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 55 Interested and Affected Parties Date of comments received Issues raised EAPs response to issues as mandated by the applicant Consultation Status (consensus dispute, not finalised, etc.) Name of Individual Consulted Stephanus Kotzé 2015 mining. local municipalities. The necessary re - zoning applications will be made through the appropriate channels. Fanie Kotze Commercial Farmers Meeting 26 March 2015 Fanie Kotze Commercial Farmers Meeting 26 March 2015 What is the company shareholding? P amish is 64% owned by Bushveld Minerals, a South African owned company listed on the London Stock Exchange. Izingwe owns 36% and is a South African company and Black Economic Empowerment (BBBEE) partner. Abel Kotzé & Stephanus Kotzé AJ Regi stration and Comment Sheet 26 March 2015 Water impacts Surface and ground water impact assessments will be undertaken, with the findings presented as part of the EIA Report. The studies will assess potential impacts on water quality and quantity, with re spect to surrounding receptors. These studies will develop and recommend mitigation and management plans to manage potential impacts to surface and groundwater Manie Uys Commercial Farmers Meeting 26 March 2015 AJ Kotze Commercial Farmer s Meeting 26 March 2015 H van Vuuren Commercial 26 March

94. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 73 Interested and Affected Parties Date of comments received Issues raised EAPs response to issues as mandated by the applicant Consultation Status (consensus dispute, not finalised, etc.) Name of Individual Consulted Rama Sepelai Masiane Pudiakgopa Village 23 March 2015 Mr Sokotla Good Hope 30 March 2015 David Makubela Kwenaite / Moutjane 31 March 2015 Will the mine provide training? If the m ining r ight is awarded, skills development will need to be undertaken to comply with the DMR require ments, through the SLP. Silas Kwenaite Malokongskop 24 March 2015 J R Mabusela Village Development Committee 24 March 2015 Mildred Maluleke Goedehoop 28 March 2015 There is a communication breakdown between the Bakenberg TC and the community. No ted. A process is underway to consult with individual villages as well as the TC. All villages and TC to come together as a committee. The Applicant prefers not to deal with separate individuals as this creates issues. September Majadibudu Morulaneng 28 March 2015 M H Lekutso Morulaneng / 28 March

72. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmenta l 51 Activity Details Re ference in Report Report Mogalakwena Public Library and Bakenberg Community Library and on the Digby Wells website from Friday , 1 3 March 2015 ti ll Thursday 16 April 2015 Announcement of the S coping R eport A letter was emailed and posted to the full database to announce the availability of the scoping report on Thursday, 12 March 2015. An SMS was also sent to the database on the same day . Appendi x 7(6) Announcement Letter Stakeholder Meeting s A series of meetings were held betwee n Monday , 23 March to Tuesday, 3 1 March 2015. These included the communities as mentioned, traditional councils, commercial farmers, key stakeholders and the general p ublic. All comments received at th ese meeting s are captured in the Comment and Response Report. Appendix 7(7) Comment and Response Report Placement of updated Scoping Report This updated Scoping Report was placed at the Mogalakwena Public Library and at the Bakenberg Community Library and on the Digby Wells website. Announcement of the updated Scoping Report A letter will be emailed and posted to the full database to announce availability of the updated S coping R eport . An SMS will also be sent. Appen dix 7 (8) Announcement Letter .

86. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 65 Interested and Affected Parties Date of comments received Issues raised EAPs response to issues as mandated by the applicant Consultation Status (consensus dispute, not finalised, etc.) Name of Individual Consulted takes the representations of the community into account, it is the State that awards the mining right. David John Manganyi Kwena ite / Moutjane 30 March 2015 Will the mine be underground or open pit? The mine will be an open pit mine without any shafts. With a m aximum depth of 80 m . The Life of Mine ( LoM ) will be 30 years – which is the maximum time that can be applied for from DMR. David Masogo Taolome 27 March 2015 Frans Kgomo Kaditshwene 25 March 2015 Alfred Mabusela Malokongskop 24 March 2015 Name not provided Bakenberg / Molokong 28 March 2015 When will the mine start, what is the LoM? Project construction is exp ected to commence in 2017. Mining to commence in 2019 and is expected to remain in operation for 30 year period. Albert Mabusela Malokongskop 24 March 2015 Isaac Mila Undisclosed 28 March 2015

15. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental vi TABLE OF CONTENTS 1 Introduction ................................ ................................ ................................ ............. 1 2 Content of the Scoping Report ................................ ................................ ................ 2 2.1 Item 2(a)(i): Details of EAP ................................ ................................ ............... 2 2.2 Item 2(a)(ii): Expertise of the EAP ................................ ................................ .... 2 3 Item 2(b): Description of the Property ................................ ................................ ...... 4 4 Item 2(c): Locality Map ................................ ................................ ............................ 6 5 Item 2(d): Description of the Scope of the Proposed Overall Activity ....................... 7 5.1 Item 2(d)(i): Listed and Specified Activities ................................ ....................... 7 5.2 Item 2(d)(ii): Description of the Activities to be Undertaken ............................... 9 6 Item 2(e): Policy and Legislative Context ................................ ............................... 17 7 Item 2(f): Need and Desirability of the Proposed Activities ................................ .... 35 8 Item 2(g): Period for which the Environmental Authorisation is Required ............... 37 9 Item 2(h): Description of the Process fol lowed to reach the Proposed Preferred Site ................................ ................................ ................................ .............................. 38 10 Item 2(h)(i): Details of all Alternatives Considered ................................ ................. 40 10.1 Site Layout Alternatives ................................ ................................ .................. 40 10.2 Technology Alternatives ................................ ................................ ................. 41 10.3 No - Go Option ................................ ................................ ................................ . 42 11 Item 2(h)(ii): Details of the Pu blic Participation Process Followed ......................... 43 11.1 Stakeholder Identification ................................ ................................ ............... 43 11.2 Consultation with I&APs ................................ ................................ ................. 48 12 Item 2(h)(iii): Summary of Issues Raised by I&APs ................................ ............... 52 13 Item 2(h)(iv): The Environmental Attributes associated with the Site ..................... 80 13.1 Type of Environment Affected by the Proposed Activity ................................ .. 80 13.2 Description of the Current Land Uses ................................ ........................... 126 13.3 Description of Specific Environmental Features and Infrastructure on the Site ................................ ................................ ................................ ..................... 13 0 13.4 Environmental and Current Land Use Map ................................ ................... 132 14 Item 2(h)(v): Impacts Identified ................................ ................................ ............ 133

106. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 85 Land Type Dominating Soil Capability Class Dominating Land Capability Class Agricultural Potential Ea VI VI Limited arable/dominated by g razing Ah VI VI Grazing Ae III III Limited Arable The natural fertility of the dominant soil types occurring within the project site is expected to be high due to the clay content of the soil. However due to the limitations in managing these soils, the agricultural potential remains as grazing. 13.1.5 Surface Water 13.1.5.1 Water Catchment The project site is located within the boundaries of quaternary catchment s A61G and A61B, found within the Limpopo River catchment which is identified as Water Management Area 1. (WM A 01 ). Refer to Plan 9 in Appendix 5 . The surface water attributes of the affected catchments, namely Mean Annual Runoff (MAR), Mean Annual Precipitation (MAP) and Mean Annual Evaporation (MAE) are summarised in Table 13 - 3 , for q uaternary catchments A61G and A61B. The MAP that ends up as MAR in the catchments is 2 % and 4 % respectively. Table 13 - 3 : Surface Water A ttributes of the B20D Quaternary C atchment Quaternary Catchment Total A rea (km 2 ) Rainfall Zone MAP (mm) MAR (mm) MAR m 3 * 10 6 Evaporation Zone MAE (mm) A61G 927 A6C 585 16.5 15.31 1C 1800 A61B 710 A6D 529 21.1 14.97 1C 1850 Source: Water Research Council, 2005 13.1.5.1 Water Resources The p r oject site is traversed by several peren nial and non - perennial streams. The identified non - perennial streams were found to be dry during a field visit conducted on the 15 January 2015. The Mogalakwena River, which is a tributary to the Limpopo River, is found on the western side of the project site and flows towards the north into the Limpopo River. The Sterk River also traverses the project area west of the Mogalakwena River. The Sterk River is a tributary to the Mogalakwena River. A non - perennial stream called Borobela exists on the eastern

200. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 179 Table 21 - 8 : Significance Rating Description Score Description Rating 109 to 147 A very beneficial impact that may be sufficient by itself to justify implementation of the project. The impact may result in permanent posit ive change Major (positive) 73 to 108 A beneficial impact which may help to justify the implementation of the project. These impacts would be considered by society as constituting a major and usually a long - term positive change to the (natural and / or so cial) environment Moderate (positive) 36 to 72 An important positive impact. The impact is insufficient by itself to justify the implementation of the project. These impacts will usually result in positive medium to long - term effect on the natural and / o r social environment Minor (positive) 3 to 35 A small positive impact. The impact will result in medium to short term effects on the natural and / or social environment Negligible (positive) - 3 to - 35 An acceptable negative impact for which mitigation is desirable but not essential. The impact by itself is insufficient even in combination with other low impacts to prevent the development being approved. These impacts will result in negative medium to short term effects on the natural and / or social envir onment Negligible (negative) - 36 to - 72 An important negative impact which requires mitigation. The impact is insufficient by itself to prevent the implementation of the project but which in conjunction with other impacts may prevent its implementation. T hese impacts will usually result in negative medium to long - term effect on the natural and / or social environment Minor (negative) - 73 to - 108 A serious negative impact which may prevent the implementation of the project. These impacts would be considere d by society as constituting a major and usually a long - term change to the (natural and / or social) environment and result in severe effects Moderate (negative) - 109 to - 147 A very serious negative impact which may be sufficient by itself to prevent impl ementation of the project. The impact may result in permanent change. Very often these impacts are immitigable and usually result in very severe effects Major (negative) 21.5 Item 2(i)(v): Proposed Method of Assessing Duration S ignificance Refer to Section 21 .4 above. 21.6 Item 2(i)(vi): Stages at which the C ompeten t Authority will be C onsulted The DMR will be consulted at the following stages:

133. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 112 free basic water and electricity respectively. This implies that a large percentage of the households within the local study area can be considered as vulnerable. 13.1.14 Traffic 13.1.14.1 Existing Road Network The material from the proposed mine will either be transported via road, then onto rail in Mokopane and onwards to the nearest port; o r via road, directly to Durban/Richards Bay for export. The scope of this EIA is limited to the potential impacts associated with the use of roads only and excludes the potential impacts associated with the rail and port. T he roads with in the study area m ay potentially be affected by the Heavy Duty Vehicles (HDV) are outlined in Table 13 - 22 . Table 13 - 22 : Roads Potentially Impacted by Project Road Link Jurisdicti on Fun ction Road Condition Classification D4380 RAL Links Mokopane via N11 with Mogalakwena - cluster and numerous rural settlements situated further north - west. Paved Single Carriageway D3507 RAL Provides a link between the D4380 and the D1958. Provides acc ess to several small rural settlements Paved Single Carriageway D3534 RAL Provides a link between the D4380 and the N11. Provides access to several small rural settlements. Unpaved Single Carriageway D1958 RAL Provides a link between the D4380 an d the R518 Road not sealed Single Carriageway D3500 RAL Links Mokopane with Mogalakwena - cluster and numerous rural settlements situated further north - west Paved Single Carriageway N11 SANRAL Provides a link between the site and Mokopane. Unpaved S ingle Carriageway, planned upgrade to duel carriageway N11 Mokopane SANRAL Proposed bypass linking N11 and Planned Planned

98. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 77 Interested and Affected Parties Date of comments received Issues raised EAPs response to issues as mandated by the applicant Consultation Status (consensus dispute, not finalised, etc.) Name of Individual Consulted Meeting 2015 accordance with NHRA Albert Mabusela Bakenberg TC Meeting 23 March 2015 How will the project affect agricultural land s and grazing? A SIA and Macro Economic Study will be undertaken during which community members will be interviewed. These assessments will identify and assess impacts, including loss of fields and grazing. The assessment will also recommend compensation measures, should the project result in economic displacement. Alfred Matswake Bakenberg TC Meeting 23 March 2015 Unsure of the location of the project area. The mine infrastructure will be developed in an area smaller than 1 000 ha, on the farm Vries lan d and Vliegekraal. Mr Mphela Bakenberg TC Meeting 23 March 2015 Malungu Malakong Bakenberg TC Meeting 23 March 2015 The area is very large at 10 000 ha . The mine infrastructure will be developed in an area smaller than 1 000 ha, on the farm Vriesland and Vliegekraal. Will an y villages be resettled? Bakenberg TC Meeting 23 March 2015 Will there be any resettlement. It was explained that there would be no resettlement.

157. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 136 Aspect Project Activity/ies Potential Positive and Negative Impact/s Project Phas e aquatic ecology and people who either use the water for domestic purposes or fish within these streams. Water borne diseases such as cholera, diarrhoea, and typhoid may potentially occur. Employment Overcrowding, due to influx of people may result in an increase in the prevalence of respiratory diseases in the proposed project area increasing prevalence of respiratory health outcomes, including TB, which is likely to be influenced by housing issues, such as overcrowdin g. Population influx issues may result in potential rises in STIs including HIV/AIDS. The high density population/influx of people from periphery areas seeking employment on the mine, leading to increased inability of the existing health services to cope. Construction and Operation Development and operation of infrastructure (i.e. haul roads, concentrator plant) Exposure to potentially high noise levels. There is sufficient evidence that noise may cause adverse health effects such as cardiovascular effect s. Epidemiology studies have found associations between immune and psychiatric effects and noise exposure. Construction and Operation Development and operation of infrastructure (i.e. haul roads, concentrator plant) Exposure to potentially hazardous mate rials and resulting malodours may potential may potentially result in respiratory illnesses. Construction and Operation Cultural Heritage Development of infrastructure (i.e. haul roads, concentrator plant) This activity may cause damage to or destroy any physical heritage resources that may be present within the project footprint areas. Construction, Operation and Decommissioning Visual Open pit, WRD, tailings dam, stockpiles Change of the visual landscape will impact the sense of place/perceptions which has a resulting impact on surrounding receptors including road users and nearby communities such as Bakenberg. Construction, Operation and Decommissioning Traffic Use of existing access roads and provincial roads for hauling material Additional traffic and particularly heavy duty vehicles on the existing road network may have a resulting impact on the road safety conditions thus resulting in traffic related incidences. Construction and Operation Noise/Vibration Development of infrastructure (i.e. haul roads, concentrator plant) The operation of vehicles and machinery may result in nuisance noise impacts on surrounding communities. Construction, Operation and Decommissioning Blasting Potential damage to structures through vibration. Construction and Operation Table 14 - 2 : Identified Project Risks Potential Project Risk (Unplanned Occurrences ) Aspect Potentially Impacted Project Phase

80. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 59 Interested and Affected Parties Date of comments received Issues raised EAPs response to issues as mandated by the applicant Consultation Status (consensus dispute, not finalised, etc.) Name of Individual Consulted Eskom. Leonard Sone Waterberg District Municipality 27 March 2015 Most land under the Traditional Council (TC) is currently classified as agricultural. The necessary re - zoning applications will be made through the appropriate channels. Organ isations of state (Responsible for Infrastructure that may be affected Roads Department, Eskom, Telkom, DWA e tc. V Ramala Limpopo Heritage Resources Authority 20 March 2015 We therefore are looking forward to receiving the Heritage Impact Assessment study that will be undertaken for our comments. Noted Communities Frans Mabusela Basogad i 25 March 2015 Air quality An Air Quality study will be undertaken as part of the Environmental Impact Assessment (EIA). This study will identify areas that may potentially be impacted from an air quality perspective and recommend mitigation measures to reduce potential negative impacts. The findings of the air quality assessment will be presented in the Draft EIA Report Lesiba Manala Sepharane 25 March 2015 Phillip Lebeto Sepharane 25 March 2015 Magaetsi Manaka Ditlotswane 24 March 2015

42. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 21 Applicable legislation and guidelines used to compile the report Reference where applied allocation and beneficial use of water in the public interest, and that a person can only be entitled to use water if the use is permissible under the NWA. GN R704 National Water Act, 1998 (A ct No. 36 of 1998) Regulations 4 and 5 of the regulation on use of water for mining and related activities aimed at the protection of water resources, Government Notice Regulation 704 (GN R No. 704) published in June 1999, states the following:  Regulation 4: No residue deposit, reservoir or dam may be located within the 1:100 year flood line, or less than a horizontal distance of 100 m from the nearest watercourse. Furthermore, person(s) may not dispose of any substance that may cause water pollution  Regula tion 5: No person(s) may use substances for the construction of a dam or impoundment if that substance will cause water pollution.  Regulation 6 is concerned with the capacity requirements of clean and dirty water systems, while Regulation 7 details the re quirements necessary for the protection of water resources. The IWULA and IWWMP will be compiled and submitted to the Department of Water and Sanitation (DWS) as the decision making authority. The water uses which may be triggered under Section 21 of the NWA in relation to the project are listed below:  S21(a) – Taking water from a water resource;  S21(b) – Storing water;  S21(c) – Impeding or diverting the flow of water in a watercourse;  S21(g) – Disposing of waste in a manner which may detrimentally impact on a water resource;  S21(i) – Altering the bed, banks, c ourse or characteristics of a watercourse; and  S21(j) – Removing, discharging or disposing of water found underground if it is necessary for the efficient continuation of an activity or for the safety of people. Mineral and Petroleum Resource Development Act. 2002 (Act No. 28 of 2002) (MPRDA) A Mining R ight Application submitted to the Department of Mineral Resources (DMR) in terms of the Mineral and Petroleum Resources Act, 2002 (Act No.28 of 2002) (MPRDA) must be succeeded by various documents i ncluding a Scoping Report, EIA R eport and an EMP. The MPRDA requires that mining companies assess the socio - economic impacts of their activities An EIA process is being undertaken to meet the requirements of the MPRDA. Furthermore, in support of the MRA, a SLP and MWP has been submitted to the DMR with the MRA.

65. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmenta l 44 ■ Limpopo Department of Economic Development, Environment and Tourism; ■ Limpopo Department of Rural Development and Land Reform; ■ Limpopo Tourism and Parks Agency; ■ Limp opo Heritage Resources Agency ; ■ Limpopo Department of Public Works, Roads and Transport; ■ Limpopo Department of Labour; ■ Limpopo: Department of Health & Social Development ; ■ Moga lakwena Local Municipality; ■ Waterberg District Municipality; and ■ Working for Wetlands (driven by Government) ; and ■ Water Research Co mmission (WRC) - parastatal . 11.1.2 Directly Affected Land Owners The following directly affected landowners will be consulted as per Table 11 - 1 . Refer to Plan 5 in Appendix 5 for the Land Tenure Plan. Table 11 - 1 : Landowners and Properties Directly A ffected Farm Portion Registered Landowner Vogelstruisfontein 765 LR RE National Government of the Republic of South Africa Vriesland 781 LR RE Langa Bakenberg Tribe Vliegekraal 783 LR RE L anga Bakenberg Tribe Schoonoord 786 LR RE According to the previous owner, the property has been transferred to the Department of Public Works. An e mail was sent to the Department of Public Works to verify the information provided by Suid - Afrikaanse O nt wikkelings Trust, however no feedback from the Department of Public Works has been received. Bellevue 808 LR RE of 1 National Government of the Republic of South Africa Bellevue 808 LR RE of 2 Broad Brush Investments 26 Bellevue 808 LR 3 Educated Ris k Investments 40 Bellevue 808 LR 4 Kotze Abel Daniel - Trustees Bellevue 808 LR 5 Trekdrift Boerdery CC Bellevue 808 LR 6 Unknown 11.1.3 Adjacent Land Owners The adjacent land owners are reflected in Table 11 - 2 below. Table 11 - 2 : Adjacent Property D etails

169. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 148 The specialist methodologies for their respective studies are presented below with a brief methodology on the approach. Traffic and Safety Phillip De Wet (Aurecon) Masters in Town and Regional Planning Noise Lukas Sa dler (Digby Wells) BCom Environmental Management Blasting and Vibration Danie Zeeman (Blast Management Consulting) Dip Explosives Technology Higher Dip Explosives Technology BA Degree Member: International Society of Explosives Engineers Greenhouse Gas A ssessment Marcelle Radyn (Digby Wells) BSc(Hons) Environmental Management Rehabilitation Brett Coutts (Digby Wells) BSc (Hons) Ecology Closure Costs Renee van Aardt (Digby Wells) BSc (Hons) Ecology Social Nic Boersema (Digby Wells) MA Anthropology Stak eholder Engagement Nestus Bredenhann (Digby Wells) BCom (Hons) (Communication Management), Heritage Johan Nel (Digby Wells) BA (Hons) Accredited member of the Association of Southern African Professional Archaeologists (ASAPA) and the International Counc il on Monuments and Sites (ICOMOS) South Africa Health Natasha Taylor Meyer (Digby Wells) MSc. (Medicine Virology) Macro - Economic Assessment Elena Broughton (Urban - Econ) MSc (Technology Management) Visual Stephanie Mulder (Digby Wells) BSc (Hons) Geogra phy (cum laude)

67. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmenta l 46 ■ Mautjane; ■ Mmotong; ■ Claremont; and ■ Good Hope. The ward councillors for the two affected wards will also be consulted throughout the process . 11.1.5 Land O ccupiers and Land Claimants D uring the consultat ions with traditio nal authorities and land owners, no further land occupiers were identified. Digby Wells also enquired about the land claims on the various properties and a letter has been submitted to Mr Mphasha of the Limpopo Department of Rural Develop ment and Land Reform, Land Claims Commission , on the 28 January 201 5 . A letter was received on 9 February 2015 from the land claims commission and the results of the land claims enquiry are reflected Table 11 - 3 below. Table 11 - 3 : Land Claimants Farm Name and Number Portio n Local Municipality Claimant Status Directly Affected Landowners Vogelstruisfontein 765 RE Mogalakwena Local Municipality Bakenburg Tribe Research Vriesland 781 RE Mogalakwena Local Municipality No information available at this stage on under mentioned property Vliegekraal 783 RE Mogalakwena Local Municipality Kwenaite M Research Schoonoord 786 RE Mogalakwena Local Municipality Sebueng Family Gazetted 04/092009 Notice No 1213 of 2009 Bellevue 808 RE Mogalakwena Local Municipality Bakenburg Tribe Research Bellevue 808 1 Mogalakwena Local Municipality Bellevue 808 2 Mogalakwena Local Municipality Bellevue 808 3 Mogalakwena Local Municipality Bellevue 8 08 4 Mogalakwena Local Municipality Bellevue 808 5 Mogalakwena

91. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 70 Interested and Affected Parties Date of comments received Issues raised EAPs response to issues as mandated by the applicant Consultation Status (consensus dispute, not finalised, etc.) Name of Individual Consulted Kgase Thema Good Hope 30 March 2015 Communities need donations for schools , community halls , roads etc. The representative forums will inform the Applicant on what development needs are in each village. However, this will only be possible from 2017 onwards, subject to the DMR awards the mining right. Seleka Pila Claremont 30 March 2015 Elizabeth Kobo Taolome 27 March 2015 Filemon Tala Basogadi 25 March 2015 Alfred Matswake Malokongskop 24 March 2015 David Mokhonwana Ditlotswane 24 March 2015 Kolobe Mashala Claremont 28 March 2015 The presentation stated tha t there is a 36% BBBEE share . How will community benefit from this percentage? Once election of community representatives is finalise d, the company will en gage in discussions about community benefits. Recruitment offices will be at the mine from where recruitment will take pla ce. The Denzo Okwankwa Mthoathwas 28 March 2015

195. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 174 Table 21 - 6 : Impact A ssessment Parameter R atings Rating Severity /Irreplaceability Spatial scale Duration /Irr eversibility Probability Environmental Social, cultural and heritage 7 Very significant impact on the environment. Irreparable damage to highly valued species, habitat or eco system. Persistent severe damage. The positive impact will result in a sig nificant improvement to the initial/post disturbance environmental status and will benefit ecological and natural resources. Irreparable damage to highly valued items of great cultural significance or complete breakdown of social order. The positive imp act will be of high significance which will result the improvement of the socio - economic status of a greater area beyond the boundary of the directly affected of the community and/or promote archaeological and heritage awareness and contribute towards rese arch and documentation of sites and artefacts through phase two assessments. International The effect will occur across international borders Permanent: No Mitigation No mitigation measures of natural process will reduce the impact after implementation. C ertain/ Definite. The impact will occur regardless of the implementation of any preventative or corrective actions. 6 Significant impact on highly valued species, habitat or ecosystem. The positive impact is of high significance which will result in a va st improvement to the environment such as ecological diversification and/or rehabilitation of endangered species Irreparable damage to highly valued items of cultural significance or breakdown of social order. The positive impact will be of high significa nce and will result in the upliftment of the surrounding community and/or contribute towards research and documentation of sites National Will affect the entire country Permanent: Mitigation measures of natural p rocess will reduce the impact. Almost certain/Highly probable It is most likely that the impact will occur.

89. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 68 Interested and Affected Parties Date of comments received Issues raised EAPs response to issues as mandated by the applicant Consultation Status (consensus dispute, not finalised, etc.) Name of Individual Consulted Bakenberg since its involvement. Mokgoetsi Kwinana Pudiakgopa V illage 23 March 2015 Community must be provided sufficient time to consider and discuss Project. This is not the only meeting. A second public meeting will be held in June 2015. Public participation and commenting periods are constrained by the National En vironmental Management Act ( NEMA ) Regulations, 2014 time frames of 30 Days to undertake the scoping phase consultation . Chief Lydia Langa Pudiakgopa Village 23 March 2015 Robert Molomo Malokongskop 24 March 2015 Will issues raised in these meetings b e recorded? All issues are captured and included in a Comments and Response Report (CRR) that will be attached to the Scoping Report, which will be submitted to the DMR for review and decision making. Ngoepe Undisclosed Public Meeting 28 March 2015 M aloba Malesela Kwenaite / Moutjane 30 March 2015 How will the community benefit from the mine ? As part of the MRA the mine submitted a Social and Labour Plan ( SLP ) which included a skills development plan, a commitment to employ locally as far as possible and commitment to undertake Kgomo Kutlwano Good Hope 30 March 2015

44. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 23 Applicable legislation and guidelines used to compile the report Reference where applied departments and local authorities (district a nd local municipalities) are separately and jointly responsible for the implementation and enforcement of various aspects of NEM: AQA. A fundamental aspect of the new approach to the air quality regulation, as reflected in the NEM: AQA is the establishment of National Ambient Air Quality Standards (NAAQS) (GN R 1210 of 2009) . These standards provide the goals for air quality management plans and also provide the benchmark by which the effectiveness of these management plans is measured. of the proposed mining activities. The projects’ activities will set out to abide by the NEM: AQA and standards set out in the Nationa l Ambient Air Quality Standards. The required measures will be included in the EMPr. National Heritage Resources Act, 1999 (Act No. 25 of 1999) (NHRA) The National Heritage Resources Act, 1999 (Act No. 25 of 1999) (NHRA) is the overarching legislation that protects and regulates the management of heritage resources in South Africa. The Act requires that H eritage R esources A gency’ s in this case the South African Heritage Resources Agency (SAHRA) and Limpopo Provincial Heritage Resources Aut hority (LIHRA), be notified as early as possible of any developments that may exceed certain minimum thresholds. This act is enforced through the National Heritage Regulations GN R 548 (2000). A Notice of Intent to Develop (NID) will be submitted, as part of this report, to the Limpopo Provinci al Heritage Resources Authority and the S outh African Heritage Resources. Furthermore, a Heritage Impact Assessment (HIA) will be undertaken. The National Road Traffic Act, (Act No. 93 of 1996) The National Road Traffic A ct, 1996 (Act No. 93 of 1996) se t s out to provide for matters relating to traffic control and standards relating to road design. The National Road Traffic Act Regulations, GN R. 225 of 2002 relates to the transportation of hazardous materials , where the following standards apply: SANS 1 0228; SANS 10231;SANS 10232 - 1; SANS 10229:2005; and SANS10233 . A Traffic Impact Assessment (TIA) will be undertaken to determine the impact of additional mine traffic on the surrounding road network. Explosives Act, 1956 (Act No. 26 of 1956) This Act mak es provision for, amongst others, storage, transport and the use of explosives. Section 6 of the Act makes provision for storage of explosives in licensed premises and Section 9 makes provision for use of blasting material without a permit. The Explosives Regulations GN A Vibration and Blast Impact A ssessment will be undert aken as part of the EIA process. The applicant will ensure that the external contractors are in possession of the relevant license regarding storage and handlin g of explosives on site .

197. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 176 Rating Severity /Irreplaceability Spatial scale Duration /Irr eversibility Probability Environmental Social, cultural and heritage environment will be moderate with visible improvement to the natural reso urces and regional biodiversity moderate extent and benefits should be experience across the local extent and/or potential benefits for archaeological and heritage conservation 3 Moderate, short - term eff ects but not affecting ecosystem function. Rehabilitation requires intervention of external specialists and can be done in less than a month. The positive impact will be moderately beneficial to the natural environment, but will be short lived. Ongoing s ocial issues. Damage to items of cultural significance. The positive impact will be moderately beneficial for some community members and/or employees, but will be short lived and/or there will be a moderate possibility for archaeological and heritage cons ervation Local Local extending only as far as the development site area Medium term 1 - 5 years Unlikely Has not happened yet but could happen once in the lifetime of the project, therefore there is a possibility that the impact will occur. 2 Minor effects on biological or physical environment. Environmental damage can be rehabilitated internally with/ without help of external consultants. The positive impacts will be minor and slight environmental improvement will be visible. Minor medium - term social imp acts on local population. Mostly repairable. Cultural functions and processes not affected. Minor positive impacts on the social/cultural and/ or economic environment Limited Limited to the site and its immediate surroundings Short term Less than 1 year R are/ improbable Conceivable, but only in extreme circumstances and/ or has not happened during lifetime of the project but has happened elsewhere. The

156. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 135 Aspect Project Activity/ies Potential Positive and Negative Impact/s Project Phas e dependent on the wetland. Aquatic Ecology Development of infrastructure (i.e. haul roads, concentrator plant) Stream crossings for linear i nfrastructure may result in damage to stream beds thus resulting in sedimentation which deteriorates the overall quality of water for aquatic ecology. Construction and Operation Development of WRD and tailings dam Potential for oxidative stress in fish and the threat of bioaccumulation of magnetite in the tissues of exposed fish may pose health impacts to people. Operation, Decommissioning and Post - Closure Economy Project capital expenditure Increase in production and GDP - R of the national and local ec onomies (Positive Impact). Increase in government revenue due to investment (Positive Impact). Benefits derived from investment by the mine into the local economic development projects (Positive Impact). Construction and Operation Direct and indirect employment Skills development due to the creation of new employment opportunities (Positive Impact). Improved standard of living of households directly or indirectly benefiting from created employment opportunities (Positive Impact). Construction and Operation Mine development Potential impact on current economic activities within the directly affected environment (i.e. tourism or other identified economic activity that may be sensitive to the proposed development). Added pressure on government to pr ovide basic services and social and economic infrastructure. Impact on property and land values in the surrounding area. Construction, Operation and Decommissioning Social Mine development Loss of agricultural, grazing or collection of natural resources; loss of this land/resources will result in economic displacement . Pre - construction Use of existing access roads and provincial roads for hauling material Disruption of daily movement of surrounding communities . Construction and Operation Employment It is possible that conflict might arise between the newcomers (due to population influx) and local residents. An influx of job - seekers may also lead to an increase in various social pathologies, such as drug and alcohol abuse and domestic violence . Cons truction, Operation and Decommissioning Community Health Water management Surface water run - off reporting to the surrounding streams may potentially be impacted on by a High TDS, EC, Cl and Na concentrations). These trace elements may have a resulting im pact on Construction and Operation

12. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental iii ACRON YMS AND ABBREVIATIONS μg/m 3 Micro grams per cubic meter ABA Acid Base Accounting AMD Acid Mine Drainage Bgl Below Ground Level BI D Background Information Document CEC Cation Exchange Capacity CRR Comments and Response Report CV Curriculum Vitae dBA Decibels DEA Department of Environmental Affairs DMR Department of Mineral Resources SR Scoping Report DWS Department of Water and Sanitation (previously Department of Water Affairs) EA Environmental Authorisation EAP Environmental Assessment Practi tioner EC Electrical Conductivity EIA Environmental Impact Assessment EMP r Environmental Management Programme GN R. Government Notice Regulation Ha Hectare HIA Heritage Impact Assessment I&APs Interested and Affected Parties IDP Integrated Developm ent Plan I WUL Integrated Water Use Licen c e IWULA Integrated Water Use Licen c e Application IWWMP Integrated Water and Waste Management Plan kV Kilovolt LDV Light Duty Vehicle LED Local Economic Development LHD Load - Haul - Dump

71. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmenta l 50 newspaper advertisement , site notices, letters distributed and SMS sent. The meeting was also advertised by lo ud hailing in all the affected villages on Friday, 27 March 2015. All stakeholders on the I&AP database were invited to attend th is meeting. Information about the propos ed project was shared by means of a formal PowerPoint presentation and Sepedi translation was provided. The needed Sepedi and Afrikaans translation was provided at all stakeholder meetings as appropriate. A letter will be sent to stakeholders, informing p eople of the availability of the updated scoping report. . I&APs will also be informed of the release of the updated scoping report by email and SMS. The purpose of the updated Scoping Report is for I&APs to confirm that all issues raised have been incorpo rated in the report. The updated report will be submitted to the DMR at the same time as the relea se of the report to the public. Table 11 - 4 Summary of PPP Activities d uring Scoping Phase Activity Details Re ference in Report Scoping Phase Identification of stakeholders Stakeholder database which , also include s I&APs , from various sectors of society including directly affected and adjacent lando wners in and around the p roject area. Appendix 7 (1) Stakeholder Database Land Claims Commissioner A letter was sent on the 2 8 January 201 5 to M r Mapasha of the Limpopo Department of Rural Development and Land Reform: Land Claims Commission. Details on the land claimants are attached. Appendix 7 (2) Distribution of pr oposed project announcement material s Background Information Document ( BI D) , announcement letter with comment and registration sheet was emailed and posted to stakeholders on Thursday, 12 March 2015. The Background Information Document was also available o n www.digbywells.com , on Thursday, 12 March 2015. Appendix 7 (3) BI D , letter with registration and comment sheet Proof of emails sent Placing of adverts An advert was placed in the Daily Sun on Friday, 13 March 20 15. Appendix 7 (4) Advert Placing of site notices Site notices (20 ) in English and Sepedi were put up at various public places within proposed project site, including at all the affected villages, the Mog a lakwena public library and the Bakenberg Communit y library on Monday, 16 March 2015. Appendix 7 (5) Site notice report Placement of Scoping The Scoping Report was placed at the

120. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 99 13.1.9.2 Avifauna (Birds) Approximately 247 bird species occur s in the grid squares 2328DC, 2328DD which the project site falls within (SABA, 2014). Table 13 - 9 lis ts th e avifaunal SSC that may potentially occur on the project site. Please refer to Appendix 8 for the full list avi - faunal species that may potentially occur within the project site. Table 13 - 9 : Red Data Avifauna l (bird) S pecies that m ay occur on the Project S i te Common Name Species IUCN Status (Global, Regional) NEMBA Status Probabilit y of Occurren ce Crane, Grey Crowned Balearica regulorum EN,EN EN Low Stork, Yellow - billed Mycteria ibis EN; LC Medium Eagle, M artial Polemaetus bellicosus EN; VU VU Medium Harrier, Black Circus maurus EN; VU Medium Vulture, Cape Gyps coprotheres EN; VU EN Medium Lark, Short - clawed Certhilauda chuana NT; LC Medium Roller, European Coracias garrulus NT; NT Medium Crane, Blu e Anthropoides paradiseus NT; VU EN Low Falcon, Lanner Falco biarmicus VU; LC Medium Stork, Black Ciconia nigra VU; LC Medium Ibis, Southern Bald Geronticus calvus VU; VU Medium Secretarybird Sagittarius serpentarius VU; VU Medium Falcon, Peregrin e Falco peregrinus VU Medium The South African Important Bird Area (IBA) Programme is coordinated by BirdLife South Africa. The purpose of the IBA Programme is to identify and protect a network of sites, at a biogeographical scale, critical for the lon g - term viability of naturally - occurring bird populations. The nearest Important Bird Area (IBA) is the Waterberg System situated 14 km south of the project site .

66. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmenta l 45 Farm Portion Registered Landowner Haakdoorndraai 758 LR 1 Republiek van Suid - Afrika Hellem Bricksteen 761 LR RE Government of Lebowa Goede Hoop 762 LR 3 Unknown Vlakfontein 76 3 LR 3 Unknown Groningen 779 LR RE Government of Lebowa Malokongskop 780 LR RE Langa Bakenberg Tribe Malokong 784 LR RE National Government of The Republic of South Africa Malokong 784 LR 1 Government of Lebowa Malokong 784 LR 2 Langa Bakenberg Tribe Klipplaatdrift 787 LR RE Suid - Afrikaanse Ontwikkelingstrust Eyssellsdrift 788 LR RE National Government of the Republic of South Africa Inhambane 802 LR RE National Government of the Republic of South Africa Leyden 804 LR RE National Governmen t of the Republic of South Africa Eckstein 806 LR 1 Meijer Jacob Hendrik Mozambique 807 LR 1 Molekwa Clan Communal Prop Assoc Mozambique 807 LR RE Unknown Mozambique 807 LR 2 National Government of the Republic of South Africa Mozambique 807 LR 3 Unknown Delagoa 809 LR RE Marqott Farming Pty Ltd Gillimberg 861 LR 5 Unknown 11.1.4 Communities T wo traditional authorities will be affected , namely , the Bakenberg and Mapela traditional authorities. The project s ite falls within the Bakenberg Traditiona l C ouncil and the Mapela Traditional C ouncil has ju r isdiction over land that is adjacent to the proposed project site. There are fifteen villages that are potentially affected, including : ■ Pudiakagopa; ■ Taolome; ■ Malokongskop; ■ Mabusela ■ Kwenaite ■ Rooiwal; ■ D ithotswane; ■ Kaditshwene; ■ Sepharane; ■ Basogadi; ■ Matlaba;

163. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 142 Category Issue # % Project Specific - Life of Mine Duration / extent of mining licence. 4 1.63% Project Specific - Mining Area Extent of operational mining area. 12 4.88% Project Specific - Prospecting Exp ansion of mine / additional prospecting. 7 2.85% Public Participation Records of meetings to be provided to DMR. 34 13.82% Socio - Economic Engage municipal managers during consultation. 4 1.63% Socio - Economic - Community Development How will communities benefit from mine? 33 13.41% Socio - Economic - Employment How will people be recruited? 21 8.54% Socio - Economic - Resettlement Will people need to be resettled? 6 2.44% Socio - Economic - Training Will Pamish provide training and skills development? 3 1.22 % Traditional Leadership / Community Representation Breakdown in communication structures between Traditional Council and village leaderships / communities. 9 3.66% Water Water rights and requirements. 8 3.25% Water - Ground Water Abstraction and pollut ion. 1 0.41% Water - Water Quality Impacts on water quality. 6 2.44% 246 100.00% Detailed mitigation measures will be proposed for each identified issue as part of the EMPr to compiled during the EIA Phase. Please refer to Table 21 - 10 for the high level mitigation measures that will be considered to avoid, reduce and/or manage potential impacts. The revised site layout does however take into consideration both biophysical and socioeconomic sensitivities as highlighted above a nd as discussed in Section 9.

207. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environme ntal 186 Activities Potential I mpacts Mitigation T ype Potential for Residual R isk use. through identifying the potential sources and modifying design/control measures where neces sary. approximately 30 years), there will be a potential for residual risk. Surface water run - off reporting to the surrounding streams may potentially be impacted on by a High TDS, EC, Cl a nd Na concentrations). These trace elements may have a resulting impact on aquatic ecology and people who either use the water for domestic purposes or fish within these streams. Water borne diseases such as cholera, diarrhoea, and typhoid may potentially occur. Manage through regular monitoring of water resources and remedy through identifying the potential sources and modifying design/control measures where necessary. Minimal due to the relatively low occurrence of such diseases in the project area. Potential contamination of groundwater by trace elements such as Mercury (Hg) and Arsenic (As) due to pit dewatering. Manage through regular monitoring of water resources and remedy through identifying the potential sources and modifying design/control me asures where necessary. Due to the nature and duration of the activity (i.e. mining for approximately 30 years), there will be a potential for residual risk. Development of WRD and tailings dam and pollution control dams Potential seepage and contaminat ion of trace elements. Manage through regular monitoring of water resources and remedy through identifying the potential sources and modifying design/control measures where necessary. Due to the nature and duration of the activity (i.e. mining for approx imately 30 years), there will be a potential for residual risk. Change of the visual landscape will impact the sense of place/perceptions which has a resulting impact on surrounding land - uses. Manage through consultation processes to determine expectatio ns. Due to the permanent presence of the open pits, WRD, tailings dam, there will be a potential for residual risk. Potential for oxidative stress in fish and the threat of bioaccumulation of magnetite in the tissues of exposed fish may pose health impa cts to people. Manage through regular monitoring of water resources and remedy through identifying the potential sources and modifying design/control measures where necessary. Due to the nature and duration of the activity (i.e. mining for approximately 3 0 years), there will be a potential for residual risk. T ransport of waste rock along or over provincial roads, may have a resulting impact on the road safety conditions thus resulting in traffic related incidences. Physical control measures such as desi gn and regular maintenance of access roads. The project activities involve frequent use of site and access roads, thus there is a potential residual risk. Employment It is possible that conflict might arise between the newcomers (due to population infl ux) and local residents. An influx of job - seekers may also lead to an increase in various social pathologies, such as drug and alcohol abuse and domestic violence, Manage through consultation processes to determine expectations. Approximately 150 workers will be employed during operations, thus there will be a potential residual risk. O vercrowding, due to influx of people may result in an increase in the prevalence of respiratory diseases in the proposed project area increasing prevalence of respirator y health outcomes, including TB, which is likely to be influenced by housing issues, such as overcrowding. Population influx issues may result in potential rises in STIs including HIV/AIDS. Manage through consultation processes to determine expectations and reduce through inclusion of LED programmes, skills development programmes etc. Appr oximately 150 workers will be employed during operations, thus there will be a potential residual risk.

188. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 167 Table 21 - 4 : Categorisation of Expected Visual Impact (adapted from Oberholzer, 2005) Type of Environment Type of Development (Low to High Intensity) C ategory 1 Development Category 2 Development Category 3 Development Category 4 Development Category 5 Development Protected / wild areas of international, national or regional significance Moderate visual impact expected High visual impact expected High v isual impact expected Very high visual impact expected Very high visual impact expected Areas or routes of high, scenic, cultural or historical significance Minimal visual impact expected Moderate visual impact expected High visual impact expected High vi sual impact expected Very high visual impact expected Areas or routes of medium scenic, cultural or historical significance Little or no visual impact expected Minimal visual impact expected Moderate visual impact expected High visual impact expected High visual impact expected Areas or routes of low scenic, cultural or historical significance Little or no visual impact expected. Possible benefits Little or no visual impact expected Minimal visual impact expected Moderate visual impact expected High visua l impact expected Disturbed or degraded sites / run down urban areas / wasteland Little or no visual impact expected. Possible benefits Little or no visual impact expected. Possible benefits Little or no visual impact expected Minimal visual impact expect ed Moderate visual impact expected

206. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environme ntal 185 Activities Potential I mpacts Mitigation T ype Potential for Residual R isk Additional traffic and particularly heavy duty vehicles on the existing road network may have a resulting impact on the road safety c onditions thus resulting in traffic related incidences. Ph ysical control measures such as design and regular maintenance of access roads. The project activities involve frequent use of site and access roads , thus there is a potential residual risk. Exposure to potentially hazardous materials, noise and malod ours resulting in the potential for respiratory illnesses. There is sufficient evidence that noise may cause adverse health effects such as cardiovascular effects. Epidemiology studies have found associations between immune and psychiatric effects and nois e exposure. Modify through effective design/technology measures. Manage through regular monitoring of ambient air quality and remedy through identifying the potential sources and modifying design/control measures where necessary. Due to the nature and dur ation of the activity (i.e. mining for approximately 30 years), there will be a potential for residual risk. Disruption of daily movement of surrounding communities . Avoid through effective mine planning and design, particularly on roads used. The projec t activities involve frequent use of site and access roads. Loss of wetland habitat thus resulting in desiccation of water resources which may have a negative impact on fauna and floral species dependent on the wetland. Avoid through effective placement of infrastructure with reduced footprints. T he project site is 10 10 9 ha, a pproximately, 569 ha will be required f or the proposed infrastructure, thus wetland habitat may be directly or indirectly impacted. Stream crossings for linear infrastructure may result in damage to stream beds thus resulting in sedimentation which deteriorates the overall quality of water for aquatic ecology. Manage through regular monitoring of water resources and remedy through identifying the potential sources and modifyin g design/control measures where necessary. Due to the nature and duration of the activity (i.e. mining for approximately 30 years), there will be a potential for residual risk. Potential impact on current economic activities within the directly affected environment (i.e. tourism or other identified economic activity that may be sensitive to the proposed development). Added pressure on government to provide basic services and social and economic infrastructure. Impact on property and land values in the s urrounding area. Manage through consultation processes to determine expectations and reduce through inclusion of LED programmes. Due to the nature and duration of the activity (i.e. mining for approximately 30 years), there will be a potential for residua l risk. Loss of agricultural, grazing or collection of natural resources; loss of this land/resources will result in economic and physical displacement of several households. Manage through consultation processes to determine expectations and reduce thro ugh implementation of RAP. The project site (10 10 9 ha) is classified as agricultural land. Approximately, 569 ha will be required for the proposed infrastructure. Blasting Release of nitrates from explosives may contaminate surface water run - off reduc ing the overall quality of surface water resources. Manage through regular monitoring of water resources and remedy through identifying the potential sources and modifying design/control measures where necessary. Due to the nature and duration of the act ivity (i.e. mining for approximately 30 years), there will be a potential for residual risk. Potential damage to structures through vibration. Manage through consultation processes. There are a few communities located within a 3 km radius of the project site. Water abstraction and use Potential reduction of water quantity available for domestic Manage through regular monitoring of water resources and remedy Due to the nature and duration of the activity (i.e. mining for

13. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental iv LoM Life of M ine m 3 Cub ic Metres mS/m M illisiemens per Metre MAE Mean Annual Evaporation mamsl Metr e s a bove mean sea level MAP Mean Annual Precipitation Mg/ l Milligrams per litre Mm Millimetres Mm/a Millimetres Per Annum MPRDA Minerals and Petroleum Resource s Development Act, 2002 ( Act No. 28 of 2002 ) MRA Mining Right Application NAAQS National Ambient Air Quality Standards NEMA National Environmental Management Act, 1998 ( Act No. 107 of 1998 ) NEMBA National Environmental Management: Biodiversity Act, 2004 ( Act No. 10 of 2004 ) NEMWA National Environmental Management: Waste Act, 2008 ( Act No. 59 of 2008 ) NFEPA National Freshwater Ecosystem Priority Area NWA National Water Act, 1998 ( Act No. 36 of 1998 ) NGO Non - Governmental Organisation NID Notice of Intent to Develo p PCD Pollution Control Dam PES Present Ecological Status PM Particula te Matter PoS Plan of Study PPP Public Participation Process PR Prospecting Right RoM Run of Mine SAHRA South African Heritage Resources Agency SANS South African National Stan dards SLP Social and Labour Plan SSC Species of Special Concern

68. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmenta l 47 Farm Name and Number Portio n Local Municipality Claimant Status Local Municipality Bellevue 808 6 Mogalakwena Local Municipality Indirectly Affected Landowners Haakdoorndraai 758 1 Mogalakwena Local Municipality Bakenburg Tribe Research Hellem B ricksteen 761 RE Mogalakwena Local Municipality Goede Hoop 762 3 Mogalakwena Local Municipality Vlakfontein 763 3 Mogalakwena Local Municipality Groningen 779 RE Mogalakwena Local Municipality Malokongskop 780 RE Mogalakwena Local Municipality Malokong 784 1 Mogalakwena Local Municipality Malokong 784 2 Mogalakwena Local Municipality Klipplaatdrift 787 RE Mogalakwena Local Municipality Eyssellsdrift 788 RE Mogalakwena Local Municipality Inhambane 802 RE Mogalakwena Local Municipal ity Leyden 804 RE Mogalakwena Local Municipality Eckstein 806 1 Mogalakwena Local Municipality Mozambique 807 RE Mogalakwena Local Municipality Molekwa Community Settled on Ptn 1 on ;10/062008 1 Mogalakwena Local Municipality Bakenburg Tribe Re search 2 Mogalakwena Local Municipality Mapela Community Gazetted on Ptn 1 and 2 on 09/05/2008 3 Mogalakwena Local Municipality Delagoa 809 RE Mogalakwena Local Municipality No information available at this stage

162. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 141 17 Item 2h(viii): Possible Mitigation M easures that could be Applied and the Le vel of R isk The table below presents a summary of the key issue s raised by I&APs. Table 17 - 1 : Key Issues Raised by I&APs Category Issue # % Affected Villages V illages that will be affected. 2 0.81% Air Quality How will dust and noise impact on communities and how will it this managed. 8 3.25% Authorities Pamish to liaise with local and district municipal structures to integrate with local development goals and plans. 5 2.03% Biodiversity - Fauna Impact on wild animals. 1 0.41% Biodiversity - Flora Impact on medicina l plants. 1 0.41% Blasting Impact on structures, increased dust and noise. 16 6.50% Environmental Impact Assessment General impact on environment, including climate change. 8 3.25% Health and Safety Increased trespassing on farms due to mine development s. 6 2.44% Heritage - Graves Will graves be protected and/ or relocated. 9 3.66% Heritage - Intangible / Living Will mining affect medicinal plants? 1 0.41% Heritage - Sites How will heritage sites be protected? 5 2.03% Land Use Impact on grazing, fiel ds and other land uses. 17 6.91% Mining Right Agreements between Pamish and communities. 4 1.63% Organisational Conduct / Ethics Pamish company structure and agenda. 3 1.22% Project Specific Mining method and operations. 10 4.07% Project Specific - Ben eficiation Product beneficiation to be undertaken locally. 2 0.81%

29. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Di gby Wells Environmental 8 Name of Activity A erial extent of the activity (Ha or m 2 ) Listed Activity Mark with an X where applicable or affected Applicable Listing Notice (GNR 983 , GNR 984 or GNR 985 ) / NOT LISTED Concentrator plant 236 ha X – Activity 21 Activity 28 GNR 984 Tailings dam 124 ha The tailings pipeline will be approximately 3 km in length X - Activity 6 Activity 16 GNR 984 GNR 984 P ollutio n control dam, water storage dam and associated pipelines To be confirmed during the EIA process The process water pipelines will be approximately 2 km in length. X – Activity 10 Activity 13 Activity 6 Activity 16 Activity 2 GNR 983 GNR 983 GNR 984 GNR 984 GNR 985 Storage of fuels, process concentrate, maintenance/workshop oils To be confirmed during the EIA process X – Activity 4 GNR 984 Waste generation, storage and disposal (hazardous and general) To be confirmed during the EIA process N/A NOT LISTED Product storage (magnetite concentrate ) To be confirmed during the EIA process N/A NOT LISTED Sewerage treatment plant To be confirmed during the EIA process X – Activity 25 GNR 983 Employment of construction and operational mine workers 150 people dur ing operations 500 people during construction (permanent and contractor employees) N/A NOT LISTED Rehabilitation of project area Approximately 885 ha N/A NOT LISTED

155. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 134 Table 14 - 1 : Identified Potential Impacts Aspect Project Activity/ies Potential Positive and Negative Impact/s Project Phas e Soil Stripping, stockpiling topsoils and subsoils Soil erosion and loss of topsoil material resulting in loss of fertility and soil functioning. Construction, Operation and Decommissioning Open pit development Loss of land capability for agricultura l use , grazing and other uses Construction and Operation Development of infrastructure (i.e. haul roads, concentrator plant) Soil compaction of the ground will increase surface water run - off thus increasing the potential for soil erosion. Construction a nd Operation Surface Water Removal of vegetation and construction of infrastructure (i.e. haul roads, concentrator plant) Increase in surface water run - off which may cause erosion and ultimately the sedimentation of nearby streams/rivers. Construction Stockpiling topsoils and subsoils Wind and water erosion that may potentially result in sedimentation of nearby streams/rivers. Construction and Operation Blasting Release of nitrates from explosives may contaminate surface water run - off reducing the ove rall quality of surface water resources. Operation Groundwater Pit dewatering Potential contamination of groundwater by trace elements such as Mercury (Hg) and Arsenic (As). Construction and Operation and Decommissioning Development of infrastructur e (i.e. haul roads, concentrator plant) Potential reduction of water quality for human consumption (High TDS, EC, Cl and Na concentrations). Construction, Operation and Decommissioning Project water consumption Potential reduction of water quantity avai lable for domestic use. Construction and Operation Development of WRD, pollution control dam and tailings dam Potential seepage and contamination of trace elements. Operation, Decommissioning and Post - Closure Air Quality Soil stripping, blasting, hauli ng, ore crushing and conveying Increase in dust emissions (PM 10, PM 2.5 and TSP) thus reducing the ambient air quality of surrounding communities . Construction, Operation and Decommissioning Use of vehicles and machinery (e.g. haul trucks, diesel generat ors) Increase in NO x and SO 2 and PM 10 thus reducing the ambient air quality of surrounding communities . Construction, Operation and Decommissioning Flora and Fauna Vegetation removal Loss of floral species and destruction of faunal habitat , including medi cinal plants. Construction Development of infrastructure (i.e. haul roads, concentrator plant) Disturbance to faunal species through noise, vibration and light (at night) Constr uction and Operation Rehabilitation In - migration of faunal species into th e project area (Positive impact) Increased occurrence of invader plant species. Decommissioning and Post - Closure Wetlands Development of infrastructure (i.e. haul roads, concentrator plant) and open pit mining Loss of wetland habitat thus resulting in de siccation of water resources which may have a negative impact on faunal and floral species Construction, Operation

28. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Di gby Wells Environmental 7 5 Item 2(d): Description of the Scope of the Proposed Overall A ctivity 5.1 Item 2(d)(i): Listed and Specified A ctivities A 1: 10 000 plan of the project site and proposed infrastructure layout of the key project components has been attached as Plan 3 of Appendix 4. The project’s activities and aerial extent are listed in Table 5 - 1 . The table also provides an indication of those activities listed in terms of the EIA Regulations ( 2014) and those which are not listed. Table 5 - 1 : Project Activities Name of Activity A erial extent of the activity (Ha or m 2 ) Listed Activity Mark with an X where applicable or affected Applicable Listing Notice (GNR 983 , GNR 984 or GNR 985 ) / NOT LISTED Site clearance and vegetation removal Approximately 885 ha X – Activity 30 Activity 15 GNR 983 GNR 984 Change of land - use 10 10 9 ha X – Activity 28 (ii) GNR 983 Topsoil removal and stockpiling Approximately 885 ha N/A NOT LISTED Development and use of access roads 13 km long and 25 m in width X – Activity 24 (ii) Activity 4 GNR 983 GNR 98 5 Water abstraction and use Pipeline/s with a combined length of 11 km and a capacity of 46m 3 /h. X – Activity 9 GNR 983 Channels, bridges, dams, stormwater system, office, workshop and concentrator plant buildings To be confirmed during the EIA process X – Activity 12 (i,ii,iii,iv,vi,x,xii) Activity 19 (i) Activity 14 (i,ii,iii,iv,vi,x,xii) GNR 983 GNR 983 GNR 983 Development of two open pits 192 ha X – Activity 17 GNR 984 Development of waste rock dump Approximately 160ha X - Activity 6 GN R 984 Mine development and operation 10 10 9 ha X – Activity 17 GNR 984

10. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental i Table 4: Summary of PPP Activities during Scoping Phase Activity Details Reference in Report Scoping Phase Identification of stakeholders Stakeholder database which , also include s Interested and Affected Parties ( I&A p s ) , from various sectors of society including directly affected and adjacent lando wners in and around the p roject area. Appendix 7(1) Stakeholder Database Land Claims Commissioner A letter was sent on the 2 8 January 201 5 to M r Mapasha of the Limpopo D epartment of Rural Development and Land Reform: Land Claims Commission. Details on the land claimants were received . Appendix 7(2) Land Claims Commissioner Letter and Response Distribution of proposed project announcement material s Background Informatio n Document ( BI D) , announcement letter with comment and registration sheet was emailed and posted to stakeholders on Thursday, 12 March 2015. The Background Information Document was available on www.digbywells.com , on Thursday, 12 March 2015. Appendix 7 (3) BI D , letter with registration and comment sheet Proof of emails sent Placing of adverts An advert was placed in the Daily Sun on Friday , 13 March 2015. Appendix 7 (4) Advert Placing of site notices Site notices (20 ) were put up at various places within proposed project site, including at all the affected villages, the M oga lakwena public library and the Bakenberg Community local library and on Monday, 16 March 2015. Appendix 7 (5) Site notice report Placement o f Scoping Report The Scoping Report was placed at the Mogalakwena Public Library and Bakenberg Community Library and on the Digby Wells website from Friday , 1 3 March 2015 un til Thursday 16 April 2015 Announcement of the S coping R eport A letter was email ed and posted to the full database to announce the availability of the scoping report on Thursday, 12 March 2015. An SMS was also sent to the database on the same day . Appendix 7(6) Announcement Letter Stakeholder Meeting s A series of meetings were hel d betwee n Monday , 23 March and Tuesday, 3 1 March 2015. These included meetings with villages, traditional council, commercial farmers, key stakeholders and the Appendix 7(7) Comment and Response Report

205. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environme ntal 184 Table 21 - 10 : Preliminary Proposed Mea s ures Activities Potential I mpacts Mitigation T ype Potential for Residual R isk Site clearance activities including vegetation removal, s trippin g and stockpiling topsoils and sub soils Wind and water erosion that may potentially result in sedimen tation of nearby streams/rivers and the loss of topsoil material. Avoid through appropriate placement of topsoil materials (i.e. away from water courses). Physical control measures such as mesh, sand bags. D ue to the nature and duration of the activity (i.e. mining for approximately 30 years) , there will be a potential for residual risk. Loss of land capability for agricultural use. Control through effective placement of infrastructure w ith reduced footprints. T he project site (10 10 9 ha) is classified as agricultural land. Approximately, 569 ha will be required for the proposed infrastructure. Increase in dust emissions (PM 10, PM 2.5 and TSP) thus reducing the ambient air quality of surrounding communities . Control through dust suppression measures (i.e. use of dust - a side on roads ) . Manage through regular monitoring of ambient air quality and remedy through identifying the potential sources and modifying design/control measures wher e necessary. T here are likely to be high wind events in the project area. Loss of floral species and destruction of faunal habitat. Avoid through effective placement of infrastructure with reduced footprints. T he project site (10 10 9 ha) is classified as agricultural land. Approximately, 569 ha will be required for the proposed infrastructure. Development of surface support infrastructure (i.e. haul roads, concentrator plant , conveyors, pipelines, workshop, offices, waste storage facilities ) and deve lopment of mine. Soil compaction of the ground will increase surface water run - off thus increasing the potential for soil erosion and ultimately the siltation of surface water resources. Control through the design and development of storm water channels/b erms and associated silt traps. T here are likely to be high rainfall events in the project area. Potential reduction of water quality for human consumption (High TDS, EC, Cl and Na concentrations). Manage through regular monitoring of water resources a nd remedy through identifying the potential sources and modifying design/control measures where necessary. Due to the nature and duration of the activity (i.e. mining for approximately 30 years), there will be a potential for residual risk. Increase in NO x and SO 2 and PM 10 thus reducing the ambient air quality of surrounding communities Modify through effective design/technology measures. Manage through regular monitoring of ambient air quality and remedy through identifying the potential sources and mo difying design/control measures where necessary. Due to the nature and duration of the activity (i.e. mining for approximately 30 years), there will be a potential for residual risk. The operation of vehicles and machinery may result in nuisance noise im pacts on surrounding communities. Physical control measures such as noise mufflers on heavy machinery and equipment. Manage through placement of noisy infrastructure away from noise sensitive receptors. Manage through regular monitoring of noise levels an d remedy through identifying the potential sources and modifying design/control measures where necessary. Due to the nature and duration of the activity (i.e. mining for approximately 30 years), there will be a potential for residual risk. Disturbance to faunal species through noise, vibration and light (at night) Physical control measures such as down - lighting. Due to the nature and duration of the activity (i.e. mining for approximately 30 years), there will be a potential for residual risk. This act ivity may cause damage to or destroy any physical heritage resources that may be present with in the project footprint areas . Manage through regular monitoring of project activities and remedy through contacting the relevant authorities. Due to the histor y of the project area, there is potential for residual risk.

147. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 126 13.2 Descr iption of the Current Land U ses The majority of the local study area is owned by the Government of the Republic of South Africa, but is identified as indigenous/traditional land. This means that the T raditional A uthorities (TA) ha ve jurisdiction over the land and holds the land in trust for its people. Individuals residing in households located on this land are therefore not title deed holders or owners of their plots of land but have been given Permission to Occupy by either the headman or the chief. The Bakenberg TA is headed by Khoshi L.P Langa who presides over large areas of the local study area, including the area that will likely be affected by the p roject. The settlements administered by this TA include: Table 13 - 24 : Jurisdiction of Bakenberg TA  Ditlotswane  Rooiwal  Malokonng  Basogadi  Ramogoshommi  Bakenburg  Taolome  Clermont,  Goodhope  Pudiakgopa/Malokongkop  Masipa  Kaditshwene  Mabula  Harmansdal  Marulaneng  Vanwykspan/Garalenwan e  Skulpad  Makeken  Mohlakaneng  Basterspad  Dikgokgopeng  Lusaka  Nkgoru  Kabeane  Jakkalskui  Galakwenasrom/GaMolekoa  Skrikfontein/Magagamatala  Buffelshoek/Madamas  Kgopeng  Mphello  Bokwidi/Doorfontein  Kromkloof  Rantlakana  Marken  Lesodi  Mamatlakala  Dipichi  Ramosesane  Matebeleng  Nkaikwetsa  Masipa  Malapile  Mahabaneng  Mushi  Monare  Chere/GaMongat ane  Sepharane  Mathega  Moshuka  Viena  Uitspan  Moepel Farm Table 13 - 25 provides an overview of the farms comprising the site - specific study area as well as the land - use activities on each farm. The table also indicates which properties will coincide with the proposed infrastructure (i.e. directly affected) as well as the properties that could possibly be indirectly affected by the project, these properties include the farm portions neighbouring the directly affected properties. Major land uses within the site - specific study area include residential, agricultural a nd grazing uses; land that overlaps with the project footprint is mostly used for subsistence agriculture, grazing of livestock, and collection of natural resources such as firewood, medicinal plants and building materials. Residential land use within the study area is limited to sections of the Sepharane, Mosate, and Ditlotswana communities as well as two smaller rural settlements. Although the proposed project infrastructure does not overlap with any of the aforementioned residential areas, various infra structure options do encroach to within 500m buffer of residential use.

124. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 103 The structure of the primary stud y areas’ economy follows that of the province more closely. Mining comprises more than a third of the local municipality’s economy; it experienced a CAGR of 1.6% over the period 2003 to 2013. Following the mining sector, the largest sectors in Mogalakwena are general government followed by the trade and finance, insurance and business industries. The agricultural sector contributed a relatively small percentage to the local economy’s GDP - R; it, however, experienced a larger CAGR over the period between 2003 and 2013 compared to other study areas. Table 13 - 13 : Structure of the study areas’ economies (nominal 2013 prices) and CAGR (2003 - 2013) Sectors South Africa Limpopo Waterberg DM Mogalakwena LM Nomin al 2013 CAGR (’03 – ’13) Nomin al 2013 CAGR (’03 - ’13) Nomin al 2013 CAGR (’03 - ’13) Nomin al 2013 CAGR (’03 - ‘13) Primary sector 11.6% 0.2% 30.7% 0.2% 58.9% - 0.5% 34.3% 1.8% Agriculture, forestry and fishing 2.4% 1.9% 2.4% 3.5% 2.2% 0.9% 1.5% 4.7% Mining and quarryin g 9.2% - 0.4% 28.3% - 0.1% 56.7% - 0.6% 32.8% 1.6% Secondary sector 18.4% 3.0% 8.3% 3.1% 6.0% 0.4% 9.8% 5.7% Manufacturing 11.6% 2.6% 2.4% 2.2% 1.8% - 0.4% 3.3% 3.7% Electricity, gas and water 3.0% 1.6% 3.6% 1.9% 2.4% - 2.2% 3.8% 10.0% Construction 3.7% 6. 8% 2.3% 6.3% 1.8% 5.6% 2.7% 6.5% Tertiary sector 70.0% 4.0% 61.0% 3.5% 35.2% 2.6% 56.0% 2.9% Trade 16.6% 3.7% 13.7% 3.6% 8.8% 1.4% 13.4% 1.4% Transport & communication 8.9% 3.6% 8.0% 2.7% 5.7% 2.3% 9.5% 3.1% Finance, insurance, & business 21.5% 5.1% 15.5% 4.9% 9.5% 4.3% 13.4% 4.0% Community services 6.0% 2.6% 4.7% 2.5% 2.5% 1.7% 4.9% 2.9% General government 17.1% 3.3% 19.1% 2.8% 8.6% 2.2% 14.8% 3.0% TOTAL 100% 3.4% 100% 2.5% 100% 0.9% 100% 2.9% Source: Quantec, 2015 13.1.13 Social 13.1.13.1 Administrative C ontext The Mogalakwena Local Municipality is the largest municipality with in the W aterberg D istrict Municipality in terms of land mass (6 368 square kilometre/km 2 ) and is bordered by Aganang L ocal M unicipality to the east, Mookgophong Local Municipality to the so uth, Lephalale Local Municipality to the west and Blouberg Local Municipality to the n orth.

110. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 89 Table 13 - 6 : Water Q uality Results benchmarked against the Resource Water Quality Objectives Date Sample ID Total Dissolved Solids (mg/l) Nitrate NO 3 as N (mg/l) Chlorides as Cl (mg/l) Total Alkalinity as CaCO 3 (mg/l) Sulphate as SO 4 (mg/l) Calcium as Ca (mg/l) Magnesium as Mg (mg /l) Sodium as Na (mg/l) Potassium as K (mg/l) Iron as Fe (mg/l) Manganese as Mn (mg/l) Conductivity at 25° C in mS/m pH - Value at 25° C Aluminium as Al (mg/l) Free and Saline Ammonia as N (mg/l) Fluoride as F (mg/l) Acceptable 350 10 120 N/A 165 80 100 92.5 50 N /A N/A <150 <8.4 N/A 0.044 1 Ideal 200 6 40 N/A 80 10 70 70 25 N/A N/A 150 - 370 <8 N/A 0.015 0.7 2015/01/15 SW01 78.00 0.55 11.30 30.30 3.41 7.38 2.94 7.82 3.33 0.00 0.00 9.80 7.77 0.00 0.15 0.13 2015/01/15 SW02 86.00 0.33 11.90 39.10 3.70 8.33 3.80 9.93 2.45 0.00 0.00 11.70 7.79 0.00 0.09 0.09 2015/01/15 SW03 84.00 0.35 11.00 35.20 3.61 8.29 3.25 10.60 2.43 0.00 0.00 12.40 7.95 0.00 0.05 0.13 2015/01/15 SW04 371.00 0.30 53.70 197.00 43.20 33.80 28.80 57.40 4.31 0.00 0.00 57.30 8.43 0.00 0.038 0.52 2015/01/15 SW05 339.00 0.31 51.00 210.00 19.00 31.80 24.50 51.60 3.85 0.00 0.00 51.30 8.41 0.00 0.09 0.67

109. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 88 Table 13 - 5 : Water Quality Results B enchmarked against the SANS 241 - 1:2011 Drinking Water Quality Standards Date Sample ID Total Dissolved Solids (mg/l) Nitrate NO 3 as N (mg/l) Chlo rides as Cl (mg/l) Total Alkalinity as CaCO 3 (mg/l) Sulphate as SO 4 (mg/l) Calcium as Ca (mg/l) Magnesium as Mg (mg/l) Sodium as Na (mg/l) Potassium as K (mg/l) Iron as Fe (mg/l) Manganese as Mn (mg/l) Conductivity at 25° C in mS/m pH - Value at 25° C Aluminium as Al (mg/l) Free and Saline Ammonia as N (mg/l) Fluoride as F (mg/l) Class I (Recommended) <1000 <10 <200 N/S <400 <150 <70 <200 <50 <0.2 <0.1 <150 5 - 9.5 <0.3 <1 <1 Class II (Max. Allowable) 1000 - 2400 10 - 20 200 - 600 N/S 400 - 600 150 - 300 70 - 100 200 - 400 50 - 100 0.2 - 2 0.1 - 1 150 - 370 4 - 5 or 9.5 - 10 0.3 - 0.5 1 - 2 1 - 1.5 Duration 7 years 7 years 7 years N/S 7 years 7 years 7 years 7 years 7 years 7 years 7 years 7 years No Limit 1 year None 1 ye ar 2015/01/15 SW01 78.00 0.55 11.30 30.30 3.41 7.38 2.94 7.82 3.33 0.00 0. 00 9.80 7.77 0.00 0.15 0.1 3 2015/01/15 SW02 86.00 0.33 11.90 39.10 3.70 8.33 3.80 9.93 2.45 0.00 0.00 11.70 7.79 0.00 0.09 0.0 9 2015/01/15 SW03 84.00 0.35 11.00 35.20 3.61 8.29 3.25 10.60 2.43 0.00 0.00 12.40 7.95 0.00 0.05 0.1 3 2015/01/15 SW04 371.00 0 .30 53.70 197.00 43.20 33.80 28.80 57.40 4.31 0.00 0.00 57.30 8.43 0.00 0.04 0.5 2 2015/01/15 SW05 339.00 0.31 51.00 210.00 19.00 31.80 24.50 51.60 3.85 0.00 0.00 51.30 8.41 0.00 0.09 0.6 7

113. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 92 Table 13 - 7 : Groundwater Quality R esults Date Sample ID Total Dissolved Solids Nitrate NO 3 as N Chlorides as Cl Total Alkalinity as CaCO 3 Sulphate as SO 4 Calcium as Ca Magnesium as Mg Sodium as Na Potassium as K Iron as Fe Manganese as Mn Conductivity at 25° C in mS/m pH - Value at 25° C Aluminium as Al Free and Saline Ammonia as N Fluoride as F Class I (Recommended) <1000 <10 <200 N/S <400 <150 <70 <200 <50 <0.2 <0.1 <150 5 - 9.5 <0.3 <1 <1 Class II (Max. Allowable) 1000 - 2400 10 - 20 200 - 600 N/S 400 - 600 150 - 300 70 - 100 200 - 400 50 - 100 0.2 - 2 0.1 - 1 150 - 370 4 - 5 or 9.5 - 10 0.3 - 0.5 1 - 2 1 - 1.5 Duration 7 years 7 years 7 years N/S 7 years 7 years 7 years 7 years 7 years 7 years 7 years 7 years No Limit 1 year None 1 year 2014/12/31 VBH23 433.00 0.20 127.00 228.00 3.10 76.80 40.20 42.00 3.32 0.00 1.54 85.20 8.00 0.00 0.10 0.81 2014/12/31 VBH40 351.00 3.20 39.10 249.00 6.97 77.90 16.00 42.00 1.60 0.00 0.00 62.90 7.80 0.00 0.02 1.58 2014/12/31 VBH51 220.00 0.37 35.20 135.00 14.80 37.70 10.60 34.50 2.94 0.00 0.00 38.80 8.29 0.00 0.02 0.56 2014/12/31 VBH58 992.00 2.09 351.00 381.00 65.50 96.90 83.10 152.00 0.77 0.00 0.00 169.00 8.03 0.00 0.02 1.11 2014/12/31 VBH67 526.00 7.19 53.50 374.00 25.00 69.20 44.60 66.40 6.57 0.00 0.00 85.90 8.09 0.00 0.02 0.51 2014/12/31 VBH75 1019.00 63.70 134.00 293.00 121.00 133.00 97.20 66.10 6.01 0.00 0.00 160.00 8.28 0.00 0.02 0.30

31. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Di gby Wells Environmental 10 Table 5 - 2 : Combined MML Indicated Mineral Resources Layer Name Thickness (m) Million Tonnes SG t/m 3 Fe% Fe Metal Tonnes million TiO 2 V 2 O 5 SiO 2 Al 2 O 3 P 2 O 5 S MAG4 4.36 27.50 4.08 45.5 12.51 10 1.5 1 0.6 7.8 0.01 0.12 MAG3 3.82 24.31 4.00 43.9 10.66 9.3 1.46 11.8 8.9 0.01 0.24 TOTAL 8.18 51.81 4.04 44.7 23.17 9.7 1.48 11.2 8.3 0.01 0.18 Source: VMIC, February 2014 No geological losses were applied for the P - Q Zone as the wide spacing of the drillhol es means that the position of dykes, faults and other disruptive geological features within the P - Q Zone are not well defined. Table 5 - 3 and Table 5 - 4 provide the indicated and inferred mineral resource f or the P - Q Zone. Table 5 - 3 : Indicated Mineral R esources for the P - Q Zone Layer Tonnes SG Fe Fe 2 O 3 Fe Metal TiO 2 V 2 0 5 SiO 2 Al 2 O 3 P 2 O 5 S Name million g/cm 3 % % Mt % % % % % % Q3 157.15 3.62 31.50 45.00 49.44 9.50 0.11 26.70 10.00 0.07 0.60 Q2 89.19 4.07 42.10 60.20 37.52 15.30 0.27 12.80 6.80 0.02 0.54 Q1 24.87 3.68 33.20 47.50 8.26 11.50 0.29 21.30 9.90 0.03 0.51 PMAG 40.14 3.66 32.00 45.80 12.85 10.30 0.28 22.00 10.90 0.04 0.94 PFWDISS 65.72 3.42 27.30 39.00 17.92 7.60 0.22 29.70 12.90 0.03 0.47 OMAG 1.86 4.04 37.50 53.70 0.70 11.40 0.49 17.90 7.60 0.01 0.12 NMAG 4.72 4.41 48.30 69.00 2.28 16.10 0.55 6.80 5.30 0.02 0.12 Source: VMIC, March 2014 Table 5 - 4 : Inferred Mineral R esources for the P - Q Zone Layer Tonnes SG Fe Fe 2 O 3 Fe Metal TiO 2 V 2 0 5 SiO 2 Al 2 O 3 P 2 O 5 S Name million g/cm 3 % % Mt % % % % % % Q3 143.84 3.57 30.20 43.30 43.49 8.80 0.09 28.30 10.30 0.13 0.62 Q2 94.76 3.99 40.30 57.60 38.14 14.10 0.24 15.30 7.60 0.02 0.61 Q1 23.70 3.67 33.20 47.50 7.87 11.30 0.27 21.60 10.50 0.02 0.52 PMAG 38.41 3.58 30.50 43.60 11.71 9.90 0.27 23.40 11.50 0.04 0.83

149. Final Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wel ls Environmental 128 Table 13 - 25 : Farm P ortions and Land Uses Farm Portion Project components (D - Directly affected; N - Not affected) Land Use Occupants Structures P lant Tailings facility Mining pits Waste Ro ck dump Residential Heritage sites (g raves /initiation sites ) Government use ( roads ) C ultivation ( S - subsistence; C - commercial ) Grazing (cattle, sheep & goat ) Use of natural resources (firewood, medicinal plants, water, building materials) Landowner hou s eho lds Communities Potentially vulnerable 3 household s Formal residential Informal residential Business (e.g. warehouses, offices, workshops, farm buildings) Option 1 Option 2 Option 1 Option 2 Vriesland 781 RE D D D D D X X X X X Ditlots wana, Sepharane X X X Vliegkraal 783 RE D D D X X X S X X Mosate, Basogadi, & Mothoathoase X X X Schoonoord 786 RE X S X X Sepharane X X X Bellevue 808 RE/1 X X X Sepharane X X X X RE/2 C X W X 3 C X W 4 X C W X X X 5 X C X W X X X 6 X S X Sepharane X X Inhambane 802 RE S X Groningen 779 RE N X X X S X X Ditlotswana, Unknown X X X X Malokongskop 780 RE X X S X X Rooivaal, U nknown X X X X Vogelstruisfontein 765 RE X X S X X Malokong X X X X Malokong 784 1 N X S X X Malokong X X X X RE X S X X Mosate X X X X

199. Final Scoping Report P roposed Open Pit Magnetite Mine and Concentrator P lant , Mokopane, Limpopo Province VMC3049 Digby Wells Environmental 178 Table 21 - 7 : Probability/ Consequence Matrix Significance Probability 7 - 147 - 140 - 133 - 126 - 119 - 112 - 105 - 98 - 91 - 84 - 77 - 70 - 63 - 56 - 49 - 42 - 35 - 28 - 21 21 28 35 42 49 56 63 70 77 84 91 98 105 112 119 126 133 140 147 6 - 126 - 120 - 114 - 108 - 102 - 96 - 90 - 84 - 78 - 72 - 66 - 60 - 54 - 48 - 42 - 36 - 30 - 24 - 18 18 24 30 36 42 48 54 60 66 72 78 84 90 96 102 108 114 120 126 5 - 105 - 100 - 95 - 90 - 85 - 80 - 75 - 70 - 65 - 60 - 55 - 50 - 45 - 40 - 35 - 30 - 25 - 20 - 15 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100 105 4 - 84 - 80 - 76 - 72 - 68 - 64 - 60 - 56 - 52 - 48 - 44 - 40 - 36 - 32 - 28 - 24 - 20 - 16 - 12 12 16 20 24 28 32 36 40 44 48 52 56 60 64 68 72 76 80 84 3 - 63 - 60 - 57 - 54 - 51 - 48 - 45 - 42 - 39 - 36 - 33 - 30 - 27 - 24 - 21 - 18 - 15 - 12 - 9 9 12 15 18 21 24 27 30 33 36 39 42 45 48 51 54 57 60 63 2 - 42 - 40 - 38 - 36 - 34 - 32 - 30 - 28 - 26 - 24 - 22 - 20 - 18 - 16 - 14 - 12 - 10 - 8 - 6 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 1 - 21 - 20 - 19 - 18 - 17 - 16 - 15 - 14 - 13 - 12 - 11 - 10 - 9 - 8 - 7 - 6 - 5 - 4 - 3 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 - 21 - 20 - 19 - 18 - 17 - 16 - 15 - 14 - 13 - 12 - 11 - 10 - 9 - 8 - 7 - 6 - 5 - 4 - 3 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Consequence

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