Kumba Iron Ore : Trading statement for the six months ending 30 June 2017

In accordance with paragraph 3.4(b) of the JSE Limited Listings Requirements, shareholders are further advised that both headline earnings and basic earnings for the period are likely to be at least R602 million (20%) higher than reported headline earnings and basic earnings for the prior comparative 6 months ended 30 June 2016 ('the comparative period').

Reported headline earnings and basic earnings for the six months ended 30 June 2016 (as released on SENS on 26 July 2016) were R3,009 million and R2,974 million respectively, while reported headline earnings per share ('HEPS') and earnings per share ('EPS') for the comparative period were R9.41 and R9.30 respectively.

The expected increase in earnings is largely attributable to an increase in export iron ore prices during the period.

In this regard, HEPS and EPS are also likely to be at least R1.88 and at least R1.86 per share higher (at least 20% higher), respectively, than reported HEPS and EPS for the comparative period.

A further trading statement will be released as soon as the Company has reasonable certainty on the expected HEPS and EPS ranges for the period.

The forecast financial information on which this trading statement is based has not been reviewed and reported on by the Company's external auditors.