OPERATIONS REVIEW

• Zondereinde
• Booysendal
• Pandora joint venture
• Dwaalkop joint venture
• Other business

Trans Hex Group Limited

With the acquisition of the entire share capital of Mvela Resources, Northam has acquired a 20.3% stake in the Trans Hex Group Limited (Trans Hex). Trans Hex turned in a respectable performance for the year ended 31 March 2011, generating profits of R116 million from the South African operations.

There have also been a number of fundamental changes to the business over the past 12 months with progress in Angola: the Somiluana mine is profitable and there is progress on the disposal of the Fucuama and Luarica operations.

Trans Hex remains confident that market demand for diamonds is likely to be sustained, although pricing levels should stabilise in the longer term.

Kokerboom exploration project

Northam has acquired an initial participatory interest of 51% in the Kokerboom exploration project (a greenfields iron oxide-copper-gold and massive sulphide exploration project) in the northern Cape. Northam has committed R10 million to an aero-magnetic survey in the year ahead.