INTEGRATED

OUR BUSINESS OUR BUSINESS Village is a South African based, mining and resources investment company, with its ordinary shares listed for trading on the main board of the JSE under the share code VIL. The Company’s assets comprise Lesego Platinum, Cons Murch Mine, Buffelsfontein Gold Mines, Tau Lekoa Mine, the South Gold Plant and Blyvooruitzicht Gold Mining Company (Blyvoor Gold Mine). During the year, Village acquired an interest in Continental Coal Limited. • Lesego Platinum, a world-class platinum project, is 78% owned by Village. Lesego is located on the Eastern Limb of the Bushveld Igneous Complex (BIC), which contains the greatest concentration of the earth’s known platinum group metal (PGM) resources. • Cons Murch Mine, located in Limpopo Province, produces antimony with gold as a by-product from its three operating shafts and is one of the largest global producers of antimony outside China. Village owns a 76.6% interest in Cons Murch. • Tau Lekoa Mine, 100% owned by Village, is located in the Klerksdorp goldfields, close to the town of Orkney in the North West Province. • Buffels Gold Mine (Buffels) is located in the Klerksdorp goldfields of the Witwatersrand Basin. Buffels, which is 100% owned by Village, was placed on care and maintenance during the current financial period. • South Gold Plant, operated by Village’s wholly-owned subsidiary, Nicolor, processes all underground gold material of the Group. • Blyvoor Gold Mine, located in the Carletonville goldfields of the Witwatersrand Basin, produces gold from both underground and surface sources. Village has operated Blyvoor since 1 June 2012, and for accounting purposes recognises a 74% ownership. • Continental Coal, 16.34% owned by Village, is an Australian listed company with coal assets located in South Africa. The Company has a black economic empowerment (BEE) ownership in excess of 23%. Broad-based black economic empowerment (BBBEE) partner, Umbono, holds some 11% of Village and Xelexwa a further 7%. Village is proud of the fact that its BEE partners are unrestricted equity holders in the truest sense and continue to positively contribute to the vision and strategy of the Company. Lesego Platinum has a management agreement in place with Umbono to oversee the design and related work currently underway. During the current financial year, as part of a restructuring of Village’s Buffelsfontein operations, Buffelsfontein disposed of the Tau Lekoa operations and South Gold Plant to separate legal entities. This resulted in Tau Lekoa and South Gold Plant becoming wholly-owned subsidiaries of Village. Each asset is housed as a separate legal entity and is managed as an autonomous business. Cons Murch Mine is a separate legal entity and is managed as such. Apart from executive management capacity, the only other centralised services are financial and regulatory compliance, which is housed in a separate legal entity, Village Shared Services. As at 30 June 2013, the Group employed 7,824 people, including contractors. During June 2013, Village restructured its head office, resulting in a number of head office staff being retrenched and the corporate head office being relocated to smaller premises in Bryanston, Johannesburg, South Africa. The Company’s strategy is to invest in and develop selfsustaining, socially-responsible mining entities. This is achieved by identifying and acquiring assets that represent Cape Town Northern Cape Western Cape North West Bloemfontein Eastern Cape Limpopo Polokwane Lydenberg Pretoria Mpumalanga Gauteng Johannesburg Klerksdorp Free State Port Elizabeth East London KwaZulu- Natal Durban value, unlocking opportunities in a way which realises their potential value. • We aim to: • make smart investments; • target strategic investment in smaller companies that can generate their development financing needs internally; • unlock value and return it to shareholders; and • develop a diversified portfolio of assets. • In the longer term, we aim to convert Village from an operator of diversified small mines into a resources investment company. CONS MURCH MINE LESEGO PLATINUM CONTINENTAL COAL OPERATIONS AND DEVELOPMENT BLYVOOR GOLD MINE BUFFELS GOLD MINE AND SOUTH GOLD PLANT TAU LEKOA MINE 100% Tau Lekoa Mine 100% South Gold Plant Lesego Platinum 78%* 100% 76.6%** 74%*** Buffelsfontein Gold Mines * 22% owned by Industrial Development Corporation (IDC) ** 23.4% owned by Cons Murch Employee Trust *** 20% owned by Khumo Gold SPV (Pty) Ltd and 6% by DRDSA Empowerment Trust Cons Murch Mine Blyvoor Gold Mine 16.34% Continental Coal The Village strategy can be summarised as follows: SMART INVESTMENTS + STRONG PARTNERSHIPS + SMART VALUE UPLIFT = SELF-SUSTAINING SOCIALLY-RESPONSIBLE INVESTMENT 2 <strong>INTEGRATED</strong> ANNUAL REPORT 2013 3