BACKGROUND INFORMATION DOCUMENT (BID):

AMENDMENT TO THE ENVIRONMENTAL MANAGEMENT PROGRAMME AND WATER USE LICENCE APPLICATION FOR THE CHINA AFRICAN PRECIOUS

METALS ORKNEY GOLD MINE, ORKNEY (SMS Project Number: CAP-ORK-14-10-30)

June 2016

PURPOSE OF THE BID This Background Information Document (BID) provides information to Interested and Affected Parties (I&APs) about potential decisions that may affect them and to be afforded an opportunity to influence those decisions in the Environmental Management Programme (EMP) Amendment and Integrated Water Use Licence Application processes for the China African Precious Metals (CAPM) Orkney Gold Mine. BACKGROUND TO THE PROJECT The seven (7) shafts that constitutes CAPM Orkney Gold Mine, initially formed part of the Anglo American Vaal Reef Operation and were named No.’s 1 to 7 shafts. The ownership of the shafts then changed to African Rainbow Minerals (Pty) Ltd. (ARMgold) and consisted of ARMgold 1 (No.1, No.2 and No.5 shaft) and ARMgold 2 (No.3, No.4, No.6 and No.7 Shaft). In October 2003, ARMgold merged with Harmony Gold and the mines name changed to the Harmony Orkney Operation No.1 to No.7 shafts. Pamodzi Gold bought the operations from Harmony Gold in March of 2008, however Pamodzi was provisionally liquidated in March of 2009 and final liquidation granted in October

2009. In late 2009, Aurora Empowerment Systems took over management of the Orkney Operations. Pamodzi Gold then entered into a sales agreement with CAPM with the Section 11 application being submitted in August 2011. The sales agreement with CAPM included the full acquisition of all assets of the Orkney Gold Mine. CAPM however, only took legal ownership of the assets in October 2012. The mining method to be employed at the CAPM Orkney Gold Mine is conventional scattered breast mining consisting of the standard deep level underground stoping layout, for extraction of narrow generally flat dipping gold reefs occurring deeper than 500m below surface. No ore processing activities will be undertaken at the CAPM Orkney Gold Mine. All ore mined at the No.7 and No.6 Shafts will be transported to the surface where it will be temporarily stockpiled at the shaft area. The ore will then be transported via haulage trucks to the Nicolor South Plant, located at the Buffelsfontein Gold Mine for processing. LEGISLATIVE REQUIREMENTS Procedure applied to the application As a result of the change in ownership of the mine as well as a change to the impact and

BACKGROUND INFORMATION DOCUMENT (BID): AMENDMENT TO THE ENVIRONMENTAL MANAGEMENT PROGRAMME AND WATER USE LICENCE APPLICATION FOR THE

CHINA AFRICAN PRECIOUS METALS ORKNEY GOLD MINE, ORKNEY (SMS Project Number: CAP-ORK-14-10-30)

SMS Project Number: CAP-ORK-14-10-30 P a g e 2 | 5

management objectives of the approved EMPr, it is required of CAPM Orkney Gold Mine to amend the EMPr and submit the amended document to the Department of Mineral Resources (DMR). Furthermore, the re-commencement of mining activities at the No.6 and No.7 shafts will require dewatering of the shafts and thus constitutes a water use in terms of Section 21(a) of the National Water Act, 1998 (Act No. 36 of 1998) (NWA). Application submitted to competent authority An application to amend the EMPr in terms of Section 37 of the Environmental Impact Assessment Regulations GNR 982, dated December 2014, under the National Environmental Management Act, 1998 (Act No. 107 of 1998) (NEMA), will be submitted to the DMR. Similarly, as a result of the water uses to be conducted at the mine, an IWULA and Integrated Water and Waste Management Plan (IWWMP) will be submitted to the Department of Water and Sanitation (DWS). Legislation associated with the application In accordance with the NEMA, it is required that the EMPR amendment be compiled by an independent Environmental Assessment Practitioner (EAP) in terms of Regulation 12 of GNR 982, in order to undertake and manage the processes to apply for the required environmental authorisation. It is for this reason that CAPM Orkney Gold Mine has appointed Shangoni Management Services (Pty) Ltd (Shangoni) as the EAP, to manage the application process. Furthermore, Shangoni meets the requirements of an EAP contemplated in Regulation 13 of GNR 982. PUBLIC PARTICIPATION People have a right to be informed about potential decisions that may affect them and to be afforded an opportunity to influence those decisions. This advertisement forms part of the EMPr amendment and IWUL Application process. It describes the various components of the project to enable Interested and Affected Parties (I&APs) to get a better understanding of the potential environmental and social impacts that could be expected from the proposed project. It also outlines the EA process and the opportunities for the public to become involved during the course of the study. Register as an I&AP You may be an I&AP. To register as an I&AP of this project, or to obtain more information or submit comments, please complete the

Registration Form and return it to Shangoni at the details provided below. Newspaper advertisement An advertisement will be placed in the Klerksdorp Record newspaper on the 10 June 2016. Availability of the draft EMP and IWWMP The draft EMP and IWWMP will be made available to the public for review for a period of thirty (30) days, from 15 June 2016 to 18 July 2016. A hard copy of the mentioned draft documents will be made available at the CAPM Orkney Gold Mine security office or alternatively from Dan Modupi (No.7 Shaft), the Orkney Public Library as well as the Klerksdorp Public Library. A register and comment sheet will accompany the hard copy at the public viewing station. Please complete the register subsequent to reviewing the draft documents. Alternatively, e-mail or fax your comments to Shangoni (details provided below) by no later than 18 July 2016. An electronic copy of the draft documents will also be posted on Shangoni’s website (www.shangoni.co.za) for public comment for the same period of thirty days. Where to obtain more information To obtain additional information please contact the EAP at the details provided below. Environmental Assessment Practitioner (EAP): Shangoni Management Services (Pty) Ltd Contact person: Ashley Miller Tel: 012 807 7036 Mobile: 071 609 1078 E-mail: ashley@shangoni.co.za Fax: 012 807 1014 Postal Address: P. O. Box 74726, Lynnwood Ridge, 0040

BACKGROUND INFORMATION DOCUMENT (BID): AMENDMENT TO THE ENVIRONMENTAL MANAGEMENT PROGRAMME AND WATER USE LICENCE APPLICATION FOR THE

CHINA AFRICAN PRECIOUS METALS ORKNEY GOLD MINE, ORKNEY (SMS Project Number: CAP-ORK-14-10-30)

SMS Project Number: CAP-ORK-14-10-30 P a g e 3 | 5

Figure 1: The location of the seven (7) CAPM Orkney Gold Mine shafts

BACKGROUND INFORMATION DOCUMENT (BID): AMENDMENT TO THE ENVIRONMENTAL MANAGEMENT PROGRAMME AND WATER USE LICENCE APPLICATION FOR THE

CHINA AFRICAN PRECIOUS METALS ORKNEY GOLD MINE, ORKNEY (SMS Project Number: CAP-ORK-14-10-30)

SMS Project Number: CAP-ORK-14-10-30 P a g e 4 | 5

REGISTRATION FORM

AMENDMENT TO THE ENVIRONMENTAL MANAGEMENT PROGRAMME AND WATER USE LICENCE APPLICATION FOR THE CHINA AFRICAN PRECIOUS METALS ORKNEY GOLD MINE, ORKNEY

(SMS Project Number: CAP-ORK-14-10-30))

Please complete this form and return it to Shangoni Management Services (Pty) Ltd to ensure that you are registered as an Interested and Affected Party (I&AP). By answering the questions below you will help us to develop a better understanding of your information requirements. The form also gives you the opportunity to make comments regarding the project. Additional pages may be attached should this be required.

I&AP Details:

Full name and surname:

Contact details:

Tel (w): Tel (h):

Fax: Cell:

e-mail:

Physical address: Postal address:

Preferred method of communication: � fax � e-mail � post Preferred telephone number: � cell � home � work Organisation/Representative:

Farm name, number and subdivision or Street Address (if applicable):

Questions

1) Where did you get information about the proposed project?

� Newspaper advertisement � notice board � flyer � other (please specify)

2) Do you represent a company/organisation or is your interest on behalf of yourself?

3) Do you know of anyone that is affected by the proposed activity who was not informed of the project? (Please provide contact details)

4) Do you have any specific concerns or comments regarding the proposed project?

If yes, please indicate what the comments are?

YES NO

BACKGROUND INFORMATION DOCUMENT (BID): AMENDMENT TO THE ENVIRONMENTAL MANAGEMENT PROGRAMME AND WATER USE LICENCE APPLICATION FOR THE

CHINA AFRICAN PRECIOUS METALS ORKNEY GOLD MINE, ORKNEY (SMS Project Number: CAP-ORK-14-10-30)

SMS Project Number: CAP-ORK-14-10-30 P a g e 5 | 5

.................................................. ..................................................

Signed Date

NOTE:

Please forward completed forms to Shangoni Management Services (Pty) Ltd. by no later than 18 July 2016.

Environmental Assessment Practitioner: Shangoni Management Services (Pty) Ltd Contact person: Ashley Miller Tel: 012 807 7036 Mobile: 071 609 1078 E-mail: ashley@shangoni.co.za Fax: 012 807 1014 Postal Address: P. O. Box 74726, Lynnwood Ridge, 0040