Project Mthombo Update 3 June 2013

Background The project entails the construction of a new crude oil refinery for PetroSA to be based in Coega, Port Elizabeth. The plant has been specified to process 300,000 barrels per day of crude oil. The refinery will produce diesel, petrol and jet-fuel. It is anticipated that PetroSA will spend R76,4 billion during the construction phase of the project. Strategically located in the Coega IDZ, heart of tradeflows and a growing demand for petroleum products

Background Contribute to security of supply of liquid fuels supply in the SADC region The preliminary schedule is as follows: – Pre-Feasibility: completed March 2008 – Feasibility (incl. basic engineering): Completion Dec 2015 – Front end engineering: Duration 14 months – Construction: Duration 3-4 years – Start of operations 2022.

Refinery processing objectives - Meet South African future liquid fuel demand - Process heavy, high sulphur and high TAN feedstock. - Flexibility to process a range of crude oils. - Maximise diesel yield from the refinery. - Flexible operations between diesel and gasoline modes. - No production of fuel oil. - Meet Euro V product specifications. - Comply with future bio-fuels legislation. - Allow phased integration with petrochemicals.

– Crude oil to be imported in VLCCs and piped to refinery via SPM – Capacity: bpd – Infrastructure required: 1000 ha 20 Ml/d Industrial water 7 Ml/d Potable water 165 MW of Power – Location selection criteria: Proximity to shoreline Proximity to Port Ngqura approach channels and breakwater Shelter from sea and swell conditions Proximity to traffic separation schemes Project overview Crude Oil Import SPM Port of Ngqura Crude Oil Refinery – Crude oil to be imported in VLCCs and piped to refinery via SPM – Capacity: bpd – Infrastructure required: 1000 ha 20 Ml/d Industrial water 7 Ml/d Potable water 165 MW of Power – Location selection criteria: Proximity to shoreline Proximity to Port Ngqura approach channels and breakwater

Logistics nay, must be Refinery Depot Refinery Tank Farm Coastal Tank Farm in Port Ngqura area Crude Oil SPM Quayside ship loading

Port requirements

Employment estimations Construction phase – Up to 23,000 at people peak of construction. – 5,000 to 10,000 highly skilled artisans. Operation phase – Approx. 1,000 permanent refinery jobs. PetroSA training facility planned for Coega – Similar to Centre of Excellence (COE) in Mossel Bay. Jobs in the midst of an unemployment crisis – Opportunity to fund a massive public works project – two thirds to be financed through foreign equity.

Macro-economic impact assessment (2008) R76,4b to be spent during construction; R94,6b per annum operational costs (including feedstock); – projected revenue of R109,8 billion per annum; 83% of economic impact will accrue to the Eastern Cape; Household income in the Eastern Cape could rise R1.8b per annum; 5.5% p.a possible economic growth for the Eastern Cape province. If the Eastern Cape takes ownership of and drives the project, many of the spin-offs from the localisation initiative amounting in total to about R20 b could come to the province.

Project development status PetroSA signed a joint study agreement with Sinopec in May 2012 which shapes the business case for Project Mthombo This study was completed and the Mthombo Steering Committee recommended to proceed to the feasibility stage. The adjusted size of the refinery is 300 kbbl/d Feasibility studies (completion Dec 2015) which will prepare for FEED approval by the Board and the government The feasibility study will cover the core refinery. Infrastructure must still be scoped and the CDC can play a important role in this. PetroSA is currently in discussions with Transnet with regards to the development of support infrastructure required for the refinery. Ongoing engagement with regards to infrastructure requirements such as electricity, water, ports, social infrastructure.