Kumba Iron Ore : RESERVES AND MINERALS RESOURCES REPORT 2022

KUMBA IRON ORE LIMITED

Ore Reserve (and

Saleable Product)

and Mineral Resource

Report 2022

(Remaining after 31 December 2022)

This report details the latest Ore Reserve (and Saleable Product) and Mineral Resource estimate updates of Kumba Iron Ore Limited as at 31 December 2022, reconciled against 2021 estimates.

Appointed Competent Persons have aimed to set out the estimates in a transparent and material manner to conform to the South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves SAMREC Code (2016 Edition) as well as Section 12.13 of the Johannesburg Stock Exchange Listing Requirements.

Kumba's Ore Reserve replenishment (as part of its Tswelelopele strategy - 2018 to 2022)

2017

In 2017 Kumba Iron Ore adopted its Tswelelopele strategy to:

• operate our assets to their full potential (Horizon 1: one to three years)
• leverage our endowment in the medium term (Horizon 2: three to five years)
• optimise competencies and assets to sustain and expand the business (Horizon 3: five to seven years)

To unlock Kumba's full potential and achieve disciplined growth for a sustainable future, Kumba adopted an Ore Reserve and Mineral Resource theme in 2018, which is aligned with Horizons 1 and 2 of the Tswelelopele strategy.

The target was to convert an additional 385 Mt of Mineral Resources to Ore Reserves by 2022, which equates to an Ore Reserve replenishment target of

200 Mt (30% of Ore Reserve portfolio in

2017) before depletion.

The life-of-asset (LoA) at the commencement of Tswelelopele was 2032.

2018

In 2018, Kumba replenished its Ore Reserve portfolio by 112.1 Mt (before depletion), primarily as a result of pit slope optimisation (phase 1 of a geotechnical study) as well as the adoption of world-class benchmark efficiencies into the Sishen life-of-asset plan (LoAP).The Sishen reserve life was increased from 13 to 14 years.

This subsequently translated into a

20% increase in the value of the Sishen operation. At that stage the target was to convert an additional 390 Mt of Mineral Resources to Ore Reserves by 2022.

2019

This year could be considered a hiatus period where the Ore Reserve replenishment of 12.8 Mt, primarily as a result of improved Resource to Reserve conversion, did not succeed in outperforming the annual Ore Reserve depletion.

Pit optimisation at Kolomela did, however, result in a significant decrease in the waste to ore stripping ratio from 4.1 : 1 to 3.8 : 1.

2020

A total Ore Reserve replenishment of

81.5 Mt (before depletion) was achieved in 2020. As a result, the Sishen reserve life increased from 13 to 15 years.

The year-on-year increase in Ore Reserves reflected the benefit of an improved long-term economic outlook, as well as optimised haul road designs, combined with yet another year of advances made as a result of a continuation of the geotechnical study at Sishen.

In 2020, Kumba achieved the

200 Mt (before depletion) Ore Reserve replenishment target set in 2018, two years ahead of schedule.

Kumba continued with exploration to gauge the potential of near-mine exploration targets identified through its 3D regional geological genetic model of the Northern Cape province iron ore belt and gained access to two prospective targets through a joint venture partnership.

Saleable Product

2022

532.2 Mt

2017

538.6 Mt

Ore Reserves

2022

759.4 Mt

2017

2021

At the end of 2021, a cumulative

(2018 to 2021) Ore Reserve replenishment of 322.8 Mt (before depletion) was achieved against a target of 200 Mt set at the commencement of Tswelelopele.

The feasibility study of the Sishen ultra-high dense media separation (UHDMS) project (conversion of dense media separation plant into a UHDMS) was approved in Q1 2021, contributing a further 135.3 Mt low-grade Ore Reserves to the Sishen portfolio. The Sishen life-of-asset (LoA) was extended from 15 to 18 years (2039) with the inclusion of the UHDMS project although from 2035 to 2039 annual production will be in the order of

10 to 15 Mt.

The Kapstevel South pit at Kolomela was increased, adding an additional 12.9 Mt Ore Reserves, extending the LoA from 2032 to 2034.

Near-mine exploration between the two Northern Cape operations continued.

2022

With the conclusion of the Tswelelopele strategy in 2022, Kumba has achieved a cumulative five-year Ore Reserve replenishment of 332.3 Mt (before depletion), against a target of 200 Mt set at the end of 2017.

The net result (after depletion) is an increase in Ore Reserves of 83.0 Mt, with an associated decrease in Saleable Product of 6.4 Mt from 31 December 2017 to 31 December 2022.

The decrease in Saleable Product is due to the fact that the majority of the additional Ore Reserves were lower grade and therefore lower yield.

676.4 Mt

Contents

1. Introduction

1. The statement

1. Salient features

8 High-level overview of Kumba's Saleable Product, Ore Reserves and Mineral Resources

1. Purpose
2. Location
3. Attributable ownership
4. Security of tenure

1. Competence

1. Governance
2. Assurance

1. Ore Reserves (and Saleable Product)

1. Exclusive Mineral Resources

38 Risk

40 Ancillary Reserve and Resource information per operation

1. Endorsement
2. Glossary of terms and acronyms

2022

Saleable

Product

532.2 Mt

2022

Ore Reserves

759.4 Mt

Kumba Iron Ore (KIO), a business unit of Anglo American plc (its majority shareholder), is a single commodity iron ore minerals company listed on the Johannesburg Stock Exchange (JSE) in the Republic of South Africa (market cap - US$9.4 billion at 31 December 2022), focusing its business on competing in the global iron ore market through premium product delivery.

Ore Reserve (and Saleable Product) and Mineral Resource (ORMR) report

Reported in accordance with the South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves (SAMREC Code - 2016 Edition) as required by section 12.13 of the JSE Listings Requirements.

2022

Exclusive Mineral

Resources

566.3 Mt

The updated Ore Reserve and Mineral Resource estimates and associated ancillary information contained in the ORMR report are based on input from site-specific Resource and Reserve (R&R) Statements, which are compiled before year end to allow for peer reviews by KIO and Anglo American before estimates are published. Information such as annual production, etc. (which is forecasted) may therefore differ from those quoted in the Kumba Integrated report, the latter compiled after calendar year end and reflecting actual figures. Adjustments to Mineral Resource, Ore Reserve and Saleable Product estimates are made in the following year to correct any differences between actual and forecasted estimates used in the previous reporting period.

Kumba values any feedback regarding the competency, materiality and transparency with which its Ore Reserves (and Saleable Product) and Mineral Resources have been presented in this report.

Feedback ([e-mail])

For more information see www.angloamericankumba.com

An abridged version of the 2022 ORMR report is chaptered within the 2022 Kumba Integrated report. (https://www.angloamericankumba.com/investors/annual-reporting/reports-archive/2022)

Navigating our other 2022 reports

Our integrated reporting suite comprises the following reports in addition to the ORMR report:

Integrated report*

A succinct review of our strategy and business model, operating context, governance and operational performance, targeted primarily at current and prospective investors.

Annual financial statements

Detailed analysis of our financial results, with audited financial statements, prepared in accordance with International Financial Reporting Standards (IFRS).

Sustainability report*

Reviews our approach to managing our significant environmental , social and governance (ESG) impacts, and addressing those sustainability issues of interest to a broad range of stakeholders.

Climate change report*

Provides a balanced and appropriate presentation of our climate-related impacts, risks and opportunities and our response to managing these risks and mitigating our climate change impacts.

The reporting process for all our reports has been guided by the principles and requirements contained in IFRS, the

Value Reporting Foundation's Integrated

Reporting Framework, the GRI Standards, the JSE's Sustainability Disclosure Guidance (issued in June 2022), the King Code on Corporate Governance for South Africa 2016 (King IV™**), the JSE Listings Requirements, and the Companies Act

No 71 of 2008, as amended (Companies Act).

• Each of these reports, with additional updated information will be available on our website from 14 April 2023.
• Copyright and trademarks are owned by the Institute of Directors South Africa NPC and all of its rights are reserved.

Kumba Iron Ore Limited Ore Reserve (and Saleable Product) and Mineral Resource Report 2022

1

Introduction

Introduction

Kumba's business is structured around its two open-pit mines in the Northern Cape province of the Republic of South Africa, where it mines and beneficiates iron ore for the global iron ore market in a safe and sustainable manner, adding value to its investors, while developing its workforce and creating opportunities for its host communities:

• Kolomela is a predominantly direct shipping ore (DSO) operation with a crushing and screening plant treating high-grade (Fe ≥ 61%) run-of-mine, and a small-scale UHDMS facility treating medium-grade (50% ≤ Fe < 61%) run-of-mine.
• Sishen mine beneficiates its run-of-mine through large-scale beneficiation facilities, utilising dense media separation (DMS) and Jigging technologies (with a portion of the Jig plant discard being treated via two small-scale UHDMS modules).

A range of high-grade Lump and Fine iron ore products are produced at the operations and railed to the Saldanha harbour on the west coast of South Africa from where it is shipped to fulfil Client off-take. The products are globally marketed as three Kumba blend products:

Premium Lump: ≥65.2% Fe

Standard Lump: 63.6% Fe to 64.1% Fe

Standard Fines: 62.4% Fe to 63.7% Fe

Both the Kolomela and Sishen mines are conventional drill and blast and truck and shovel open-pit operations with ex-pit ore at Kolomela hauled to designated finger stockpiles from which a run-of-mine blend is delivered, while at Sishen the run-of-mine originates directly from the pit as well as from designated buffer stockpiles. The Kolomela finger stockpiling is necessary to produce the correct run-of-mine blend for the predominantly DSO operation, while at Sishen the run-of-mine buffer stockpiling facilitates plant feed consistency through partial blending with ex-pit ore.

Thickener dams at Sishen's Jig plant

Kumba's ability to generate value is dependent on access to financial capital, its skilled employees, quality internal and external relationships and natural mineral endowment, supported by the right company culture as well as access to necessary outbound infrastructure. This report focuses on the in situ iron ore Mineral Resources and derived modified Ore Reserves for which Kumba has obtained the right to mine, and beneficiate to Saleable Product. Consistent Saleable Product delivery over time can only be achieved through disciplined mining and diligent planning. This report is the outcome of Kumba's long-term planning cycle, a process of defining the Mineral Resources via exploration and subsequent spatial modelling, designing safe and economical pit layouts and compiling production schedules to extract the iron ore considering available mining infrastructure and converting it into Saleable Product considering available beneficiation and logistical infrastructure.

2 Kumba Iron Ore Limited Ore Reserve (and Saleable Product) and Mineral Resource Report 2022

Liebherr 996 shovel at Kolomela mine

Kumba's exploration programme retained its focus on on-mine exploration, with the dual aim of improving confidence in the spatial definition of its Mineral Resources inside and outside current LoAPs and generating spatial geometallurgical information to optimise value and safeguard niche products. Exploration focus outside of the mining right areas has been to understand the full endowment potential of the area through the development of a regional genetic model used to identify targets for potential development. As an example, Kumba has entered into a JV agreement with a prospecting right holder who has been able to submit a mining right application for a small high-value deposit to the south of Sishen.

Hands-free drill rod handling on drill rig operated by Rossond (contracted by Kumba Iron Ore)

Kumba Iron Ore Limited Ore Reserve (and Saleable Product) and Mineral Resource Report 2022

3