1. UPDATE ON LILY GOLD MINE ACCIDENT. 7 December 2016

2. PRESENTATION OUTLINE Brief description of the mine.
Particulars of the trapped employees.
Failure of the Crown Pillar.
Collapsed area at the mine.
Rescue Operations.
Appointment of Business Rescue Practitioner.
Government Interventions.
Update on recovery of the container.
Mine employees.
Conclusion.

3. BRIEF DESCRIPTION OF THE MINE
Lily Mine is a subsidiary of Vantage Goldfields Pty (Ltd).
Vantage Goldfields, as a company, is listed in the Australian Stock Exchange and is regulated by the MPRDA and MHSA.
The Mine is situated in the uMjindi Local municipality.
The mine employs just over 600 employees (about 140 are service providers).
The mine began as an open pit mine in 2000 and later developed as a shallow underground operation.
A 2m to 15m gold orebody is mined.
The wide ore body pay shoot beneath the backfilled Main pit (Lily Main) is the priority target for production.

4. PARTICULARS OF THE TRAPPED EMPLOYEES
Mr. Solomon Nyerende (Lampsman).
Ms. Yvonne Mnisi (Lamp-room assistant).
Ms. Pretty Nkambule (Lamp-room assistant).

5. FAILURE OF THE CROWN PILLAR
On Friday, the 05th of February 2016 it was reported that at around 08H10 the shipment container that was used as a lamproom (on surface) sunk underground with 3 employees inside who are employed as lamproom personnel.
It is alleged that the container sunk following the crown pillar failure at above 4 level underground.
Inspectors were immediately dispatched to the mine.
Rescue operations began with the assistance of the Mine Rescue Services.
At the time of the accident 75 other employees were underground at lower levels, all these were employees were evacuated safely via the ventilation shaft.

6. RESCUE OPERATIONS
The Minister of Mineral Resources, Honourable Mr Mosebenzi Zwane, visited the Lily Gold Mine on the day of the accident.
The Minister engaged with the families, organised labour and mine management on the accident.
Attempts to recover the container continued until the 13th February 2016 when a second collapse occurred at the mine, resulting in a decision to suspend rescue operations, in the interests of safety.
Further collapse occurred on Sunday in the afternoon closing off the adit/main entrance which could have been used as a second outlet in case the ventilation shaft were to be compromised. Then decision was taken that a second outlet be drilled as required by the Mine Health and Safety Act (MHSA).
Drilling of the second out by Mine Rescue Services (MRS) began on 23 February 2016 and was completed on 28 February 2016.

7. RESCUE OPERATIONS…
On Tuesday 01st March 2016, two teams went underground to assess the conditions, upon return they reported that the conditions underground have deteriorated and it would be unsafe to send rescue teams underground.
Alternative methods to rescue the trapped mine employees were investigated.
It was decided to develop the decline and a new ventilation shaft because it would take the shortest duration to recover the container.
On 11 March 2016, mine management made an announcement that it would require six (6) months to develop the new decline and ventilation shafts.
Attempts to get funding for the project began.

8. APPOINTMENT OF BUSINESS RESCUE PRACTITIONER
Lily Mine applied for business rescue in terms of chapter 6 of Companies Act.
A Business Rescue Practitioner (BRP) was appointed.
The business rescue plan was approved.
On the 27th May 2016, the Chief Executive Officers of Vantage Goldfields and Afrocan (a Canadian company) jointly announced that they have signed a deal for Afrocan to invest in Lily Mine thus providing funds to develop the decline.
On the 31st May 2016, a further announcement was made that work on the new decline will commence in June.
The deal with Afrocan never materialized.

9. GOVERNMENT INTERVENTIONS
The President appointed Inter- Ministerial Committee of the three minister for Lily Mine.
Ministers of Mineral Resources, Social Development and Women visited the Lily Mine.
A Joint Operating Committee (JOC) consisting of the representatives of the above-mentioned ministries was established by the IMC to deal with short, medium and long term strategies on the issue of Lily Mine.
JOC is led by Social Development and the aim of the Committee is to provide assistance to immediate families, mineworkers and affected community members.

10. GOVERNMENT INTERVENTIONS…
The Deputy Minister of Mineral Resources, Honourable Mr. Godfrey Oliphant, visited Lily Mine and held a meeting with mine management, the BRP on 15 September 2016.
A follow up meeting was held on 07 October 2015 with aim of giving families feedback on the stability of surface and underground conditions.
The Department also facilitated several discussions between the mining company and IDC to fast-track funding matters of the new decline.
The company and the BRP indicated that the compensation to the families and workers that were trapped underground will occur once the funding for the complete project has been raised.
The BRP announced that a funder has been found they just finalizing the deal.

11. RECOVERY OF THE CONTAINER
The project to for retrieving the container will only commence once the access decline shaft has been completed and access to that area is safe.
This exercise will be conducted prior to the opening of the mine.
The Department of Social Welfare is actively engaging with the families of the trapped miners and the process is ongoing.
The DMR, Business Rescue Practitioner, and Unions representatives continue meeting the families and update them on the efforts to raise funding for a new decline shaft.
The mining company continues paying the salaries of the trapped miners to each individual family every month.

12. MINE EMPLOYEES
All Employees where offered severance packages and most people opted for this option.
The Unions have sanctioned this process.
All mineworkers that have accepted severance packages will be re-employed on the same terms and conditions as they were previously employed.
Approximately forty employees have resigned and one hundred have been redeployed to the Barbrook Mine.
As from early December the Daylight project of reworking an old mine dump will employ further Lily employees.
Once funding has been secured, the establishment of the new decline shaft will commence and this will employ the balance of the employees.

13. CONCLUSION
The Department is greatly concerned about the prolonged Business Rescue process and its continued impact to the affected families of trapped miners.
This matter is being considered in collaboration with other stakeholders like the IDC and Unions.
The Department has commenced with the accident investigation into the underlying causes of the accident.
Accident investigation will be converted into an inquiry in terms of section 66 of the MHSA.
Through the JOC, will continue to assist and support the three families of the trapped miners.
Implement the recommendations of the Senior Counsel’s legal opinion.

14. THANK YOU.