Northam Platinum : Summarised financial results and group statistical information for the year ended 30 June 2021

The new Northam: continuing to create value for all stakeholders

Summarised financial results and group statistical information

30 June 2021

Rhodium - the rose

Rhodium is considered the rarest and most valuable precious metal in the world.

In its pure form it is silvery-white and the most reflective of all metals. It was, however, first isolated from a rosey-red coloured chloride salt in 1803 by the English scientist, William Hyde Wollaston. This led to him naming it after the Greek word for rose, "rhodon".

The photograph on the front cover of this report shows powdered rhodium chloride.

Rhodium has in the past been lesser known in comparison to its sister metals, platinum and palladium. It has become more prominent in recent times as a result of its very special application when it comes to human health - rhodium is used extensively in the automotive sector to control the emissions of nitrous oxides (NOx) which are deleterious to pulmonary health.

Only around 30 tonnes of rhodium are sold each year, but its price over the past year averaged over R9 million per kilogram. This is important for South Africa and particularly for South African Platinum Group Metal (PGM) miners, as over 85% of the world's rhodium comes from the Bushveld, predominantly from our UG2 orebodies. The remainder is derived from Norilsk in Russia, and from the Sudbury Complex in Canada.

In the past, the world was generally at a loss to find significant uses for rhodium, as it was with all of the PGMs. We had to wait for the disciplines of chemistry and engineering to evolve.

Rhodium's physical properties were harnessed in its earliest uses. These include a high melting point, extreme hardness, durability, lustre (or reflectivity) and resistance to corrosion. Alloying rhodium with other PGMs also increases their hardness and lustre.

Uses included pen nibs and razor blades, high- temperature laboratory instruments such as crucibles and thermometers (termed thermocouples) and low resistance electrical contacts in motors and electronic circuits. Durability, along with reflectivity led to its application as a thin, electroplated coating to platinum jewellery, giving lustre to what would otherwise be a relatively dull surface. This property is also employed in the reflective surfaces required for powerful searchlights and lighthouse beacons.

Only in the 1950s was it found that rhodium acted as a catalyst in numerous organic reactions. This has had profound positive implications for our modern world. Catalysts are defined as substances that either

increase the rate, or lower the activation energy of

a chemical reaction without the catalysts themselves being consumed or undergoing any permanent chemical change. This leads to significant energy and cost savings in industrial processes.

One of the earliest catalytic applications for rhodium was in the Monsato process, in which acetic acid is produced from methanol. A second and by far the most important application of the metal, accounting for over 90% of global consumption, is in the reduction of NOx emissions from vehicle exhausts. Developments in modern organic chemistry are leading to the discovery of an ever increasing number of catalytic applications.

Environmental legislation in Europe, China, India and more recently, the United States, is heavily focussed on NOx gases. This is creating significant demand-pull. In addition, since the global financial crisis of 2008, there has been significant under investment in

PGM mining assets. This has negatively impacted the ability of South African primary producers to meet the growing demand. This, in turn, led to price appreciation, with a consequent flow-through to the basket price received by miners of UG2 ore. Current weak pricing is related to silicon chip supply constraints restricting automotive manufacturing. This is expected to be a short-term event and the prices should rebound once supplies are restored.

At Northam, rhodium represents only around 8% by mass of all of the precious metals we produce and sell. However, for the past year it contributed on average 50% of our revenue. This contribution will increase as our UG2 dominated production growth strategy plays out and automotive supply normalises.

We believe in the metals that we produce, including rhodium. They are special. Our counter-cyclical investment in various growth projects demonstrates this confidence.

Northam will continue to produce many roses for years to come.

Contents

Introduction

2 Introduction and scope of report

Business overview

1. Key features of the year
2. What investors need to know about the Northam full year results
3. Q&A with the chief executive officer, Paul Dunne

1. Our growing operations

1. The year at a glance

1. Operational guidance for F2022
2. The next five years
3. The Composite Transaction: Empowering Northam for the future

1. Frequently asked questions regarding the Composite Transaction

1. Five year performance highlights

1. Group and operational performance

1. Group Environmental, Social and Governance metrics

1. Results commentary

Summarised financial results

1. Consolidated statements of profit or loss and other comprehensive income
2. Consolidated statements of financial position

1. Consolidated statement of changes in equity
2. Consolidated statements of cash flows

77 Notes to the summarised financial results

Additional information

1. Summary Mineral Resources and Mineral Reserves

1. Glossary

1. Composite Transaction Glossary

1. Analysis of Northam Shareholders
2. Administration and contact information

Directors

PA Dunne*	Chief executive officer	GT Lewis*	Independent non-executive director
AH Coetzee	Chief financial officer	TI Mvusi	Independent non-executive director
DH Brown	Independent non-executive chairman	JJ Nel	Independent non-executive director
HH Hickey	Independent non-executive director	JG Smithies*	Independent non-executive director
NY Jekwa	Independent non-executive director	TE Kgosi	Non-executive director
MH Jonas	Independent non-executive director

*British

Introduction

Introduction and scope of report

Northam has embarked on a new phase in its development with the introduction of Northam Platinum Holdings Limited (Northam Holdings).

Northam Holdings is a primary producer

of platinum group metals (PGMs). Our Shares are listed on the Johannesburg Securities Exchange, operated by the JSE Limited (JSE) under equity code NPH. Our debt instruments are listed under the code NHMI.

Northam Holdings was established on

2 December 2020 in order to facilitate the early maturity of the Zambezi BEE Transaction and the subsequent Extended Empowerment Transaction, collectively referred to as the Composite Transaction. Following the year-end, 30 June 2021, Northam Holdings acquired all of the issued Northam Platinum Limited (Northam) Ordinary Shares (share code: NHM) in exchange for Northam Holdings Shares (excluding Treasury Shares) on a one-for-one basis.

Simultaneously, Northam became a subsidiary of Northam Holdings, all Northam's Shares were delisted from the Main Board of the JSE and all Northam Holdings Shares were listed on the Main Board of the JSE, thereby ensuring the continuation of the Northam group listing.

The summarised financial results contained within this booklet are prepared in accordance with and contain the information required by International Accounting Standard - IAS 34, Interim Financial Reporting, the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee, Financial Pronouncements as issued by the Financial Reporting Standards Council, the JSE Limited Listings Requirements and the requirements of the Companies Act No. 71 of 2008.

Events subsequent to the reporting period with regards to the Composite Transaction The disclosures included in the 30 June 2021 reporting suite regarding the Composite Transaction are made in accordance with the requirements of IAS 10, Events after the Reporting Period. IAS 10 paragraph 21 requires the disclosure of material non-adjustingevents occurring after the reporting period when non-disclosurecould influence the decisions of users on the basis of those annual financial statements. The Composite Transaction constitutes such an event.

The following disclosures are required: (a) the nature of the event and; (b) an estimate of its financial effect, or a statement that such an estimate cannot be made.

In line with the reporting requirements of International Financial Reporting Standards (IFRS) and following the guidance of IAS 10 as disclosed above, all values and number of shares relating to the Composite Transaction have been disclosed based on calculations as at the Last Practicable Date (LPD), being

30 April 2021, in accordance with the base case disclosures made in the Circular to Northam Shareholders, accompanied by the Prospectus in respect of Northam Platinum Holdings Limited, issued on Monday, 31 May 2021 (collectively, the Transaction Documents).

2 Northam Platinum Summarised year end results 2021

Introduction

Users of the Northam reporting suite are referred to the Transaction Documents for additional information relating to the Composite Transaction, as well as the underlying assumptions and judgements applied in calculating the number of shares and the values disclosed, in order to obtain a fully informed view of the nature and impact of the Composite Transaction.

Forward-looking statements

This report contains certain forward-looking statements with respect to Northam Holdings' financial position, results, operations and business. These statements and forecasts involve risk and uncertainty as they relate to events and depend on circumstances that occur in the future. There are various factors that could cause actual results or developments to differ from those expressed or implied by these forward-looking statements. Consequently, all

forward-looking statements have not been reviewed or reported on by the group's auditors.

Forward-looking statements compiled by Northam Holdings at the time of releasing the 30 June 2021 results, on 30 September 2021, were informed by the group's business plans and economic forecasts that were finalised and approved by the company's board of directors in July 2021. Should there be any changes to financial guidance provided, these will be reported via announcements on the Stock Exchange News Service operated by the JSE (SENS).

Our reporting suite

Our annual integrated report is supplemented by a full suite of online publications, which cater for the diverse needs of our broad stakeholder base as part of our comprehensive integrated reporting.

These can be accessed on our website at

www.northam.co.za

We believe in the positive impact of mining, mining that benefits our employees, our communities, the environment and our investors. Our strategy is underpinned by our belief in mining, PGMs, our country, our people and our company.

Northam Platinum Summarised year end results 2021

3