Western Basin and Central Basin involvement Niël Pretorius, CEO June 2011.

Western Basin and Central Basin involvement

Niël Pretorius, CEO

June 2011

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Relevant subsidiary structure: West Wits

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DRDGOLD

West Wits Holdings

West Wits Mining

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Relevant subsidiary structure: ERPM

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DRDGOLD

DRDSA

ERPM

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Western Basin

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1995 – 1999: West Wits mines the area under two tributary

agreements. The rock it extracts contributes

approximately 0,5% to the total underground excavation

2006: West Wits agrees with Mintails to establish a business

trust to seek a self-sustainable solution for AMD in the

region

2007: The trust structure is replaced by a S21 company,

Western Utilities Corporation (WUC) pursuant to a

DWAF directive with a structure agreed to by DWAF

2007-2011: DRDGOLD contributes R23 980 204 in direct and indirect

water treatment & research costs;

DRDGOLD dedicates the commercial upside of a rock

dump (R42m in value) at WW to a special purpose trust

for future costs

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CENTRAL BASIN: ERPM

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2004-2008 ERPM incurs R41m direct net expenditure for pumping and treating Central Basin water

2008: ERPM stops pumping in terms of a Section 54 work stoppage order issued by the DMR, and its pump-station floods

2009: ERPM commits shaft infrastructure and its HDS plant to WUC (R300m-R400m in value) and agrees to a guaranteed water off-take agreement with WUC post regional implementation.

Currently: ERPM continues to fund shaft and plant holding costs (Eskom, security, etc) at R280 000 per month pending implementation of solution.

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Current initiatives

Research project with leading academic institution assessing viability of alternative water treatment

technology using ERPM ice plant Alignment with TCTA

assisting with execution of DWA mandate Maintenance of reserve power allocation & infrastructure

to ensure adequate power for submersible pumps, plant

and shaft R7.8 million expended from Oct 2008 to present

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Conclusion

DRDGOLD supports the WUC proposal it is a full discharge of the terms of 2005 directive it provides the only self-sustaining, “zero-cost-to-taxpayer” solution it is the only proposal that will survive mine closures

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Western Basin and Central Basin involvement

Niël Pretorius, CEO

June 2011