Page 3 - Khumani Mine topsoil stockpile report

Khumani Iron Ore Mine

BKM Project

Northern Cape, South Africa

Soil & Dust Solutions Dust Control Application to Topsoil Stockpile

Performance Report of October 2006 – 2012 – 2016

Visual observations and direct comparison of the 2 Topsoil stockpiles over the period October 2006 to
February 2007 indicated that there was a marked difference between the EBS treated stockpile and the
non treated topsoil stockpile. The visual indications differentiating the stockpiles are that the non
treated topsoil stockpile showed signs of wind and water erosion and less “grassing” than the treated
stockpile. The difference was becoming pronounced to the degree where observation from a traveling
vehicle on the Dingleton road indicated a large and clear difference between the 2 stockpiles.

Photographs taken of the stockpiles, on 5 March 2007, shown hereunder, clearly indicate the
pronounced differences. Working from the basis that both stockpiles were constructed in a similar
manner and roughly the same timeframe, the degree of topsoil loss was calculated by measuring the
current depth of the surface below protruding stone and ore aggregates. Approximately 100 random
measurements were made and the resultant average loss was calculated as a depth of 3,73mm.

Assuming that the average density of topsoil is 1,640 kg/m³ and that the averaged loss of depth of the
topsoil stockpile is uniform over the complete, non EBS treated area, that being 27 500 m² (less area
than the topsoil stockpile treated with EBS ), the loss of topsoil over a 5 month period equates to over
169 tons. This equates to roughly 25 - 7 ton tipper truckloads of topsoil. Utilising the same premise,
if we had NOT treated the second stockpile with the EBS product, we would have lost an additional,
230 tons of topsoil, which would have equated to some 33 - 7 ton tipper truckloads of topsoil.

Photographs

Photo #1- EBS Treated Stockpile Side Slope Showing No Signs Of Water Erosion

Khumani Mine Stockpile Report Update 2016 .docx 3