1. Portfolio Committee Briefing 26 October 2005

2. Content Company Background Overview of Operations –Financial and Production Review –Mine Production Challenges –Short-term Production Improvement Plans –Health and Safety Statistics Possible Opportunities for Growth Social Responsibility and Investment Uncertainties & Litigation Issues Conclusion

3. Core Business: Diamond Mining through ABM

4. Non-Core Business: Agricultural and Tourism through ABT

5. Other Assets Under Management

6. Location of Operations

7. Financial & Production Review

8. Consolidated Results (R’000)

9. Financial & Production Review

11. In Summary: Total revenue was R152.4m compared to R264.7m in 2004. Diamond production income decreased from R182.5 million to R143.9 million. Diamond production down 38% Operating costs decreased by 32% Total operating loss was R 0.9 million ABT operating loss increased from R0.084m to R5.5m Price per carat up 15% (US$), whereas the ave. R/$ rate was 6.04 vs. 6.80 in 2004 Capex up 43% to R17.71 million with main expenditure of R13.53m on replacement of equipment Exploration reduced by 69% to R4.18m

12. Revenue Split (Total R152,4 million) Financial & Production Review

13. Carat Production 2005 (49 577 carats)

14. Net profit/(loss) Financial & Production Review

15. Better diamond prices achieved Financial & Production Review

16. Net operating expenses under control Financial & Production Review

17. Available Cash as at 31 March 2005 (R42,7m) Financial & Production Review

18. Persistent strengthening of the Rand

19. Production and Other Challenges

20. Major Difficulties: Mining a mineral resource that is not well defined Huge replacement Capex programme required Extensive exploration on land is necessary Current marine mining methods often hampered by poor sea weather Financial provisions for both long-term & other liabilities –Rehabilitation liability –Provision for post retirement medical aid –Other unforeseen expenses related to legal matters Main constraint is the lack of funding ability for Capex and exploration

21. Areas that Attributed to Production Shortfall: Against Approved Production Budget for 2005

22. Declining Carat Production

23. Company currently under-capitalised

24. Inconsistent Exploration programme

25. Continuous Downward Trend on Sea Days

26. Unpredictability of the number of sea days: 2005

27. Short-term production improvement plans: Implementation of double shift work on land mining Involvement of labour in production planning sessions Implementation of remote mining techniques Place emphasis on cost reduction and control Market development for ABT products

28. Safety and Health

29. Safety and Health Statistics: The N.C opencast mines LTI average is 0.99 Higher rates for Alexkor as a result of extensive diving operation in comparison to peers No fatality for the period under review Awarded the DME 1000 FFPS in April 2005 Injury Classification RILTIDressing Number (of injuries) 41124 Rate (Injuries/mmhrs) 0.521.433.12

30. Possible Growth Opportunities

31. Acquisition of mineral rights in other parts of the country Restart mining operations at Muisvlak Embark on an extensive exploration programme Recapitilise current land mining Replacement of current mining equipment Constraint: Lack of funding capacity

32. Social Responsibility & Investment

33. Social Responsibility and Investment:

34. Social Responsibility and Investment Skills Development: Five out of ten current bursary holders are females Seven out of 11 HDSA employees in mentorship programme are females Three out of 10 HDSA apprentices are females Trained 3 females as heavy earthmoving machine operators ABET classes to improve literacy, numeracy and life skills of employees and community Alexkor expended 3.14% of total wage bill in 2005 on training

35. CAT 769 Dump Truck – Operated by a Lady

36. Providing Health Care and emergency services to Alexander Bay and Richtersveld Communities Maintenance of Alexander Bay town. Providing portable water to A/Bay and Port Nolloth Ad-hoc donations & rental subsidies of R11 million for period 2000-2005 Involvement in HIV/Aids awareness projects Social Responsibility and Investment Community Support:

37. Employment Equity, as at 30 September 2005 Total workforce = 6% African, 73% Coloured, 21% Whites

38. Uncertainties and Litigation Issues

39. Outcome and Impact of Land Claims case on Alexkor Awaiting court proceedings and ruling on other legal matters Possible restructuring post land claims case Financial implications include legal fees and possible compensation Limited provision has been made for payment of possible settlement amounts Alexkor counterclaimed against some of the cases We expect the cases to be concluded by 2nd quarter of 2006

40. Conclusion

41. Short-term focus is on improving financial performance: –Optimise the use of available resources –Implement initiatives for productivity improvement –Continuous reduction of both operating costs and pay- limit Develop a long-term strategy to transform the company: –Move Alexkor beyond a single mine company Collaborate with established companies and leverage on their ability to fund expansion plans Implementation of remote mining techniques

42. Thank you

43. Financial & Production Review Consolidated Results (R’000)

44. Financial & Production Review