DE BEERS CONSOLIDATED MINES - De Beers Group

DE BEERS CONSOLIDATED MINES (PROPRIETARY) LIMITED ANNOUNCES SALE OF KIMBERLEY MINES De Beers Consolidated Mines (Proprietary) Limited (“DBCM”) owns and operates the Kimberley Mines operations (“Kimberley Mines”), located in and around the City of Kimberley in the Northern Cape province of South Africa. Kimberley Mines is a mature tailing mineral resource (“TMR”) treatment operation with established, well-maintained infrastructure, strong historical mining and sampling data and significant potential for a low-cost diamond producer. The re-treatment of TMRs has been a growing source of diamond production in Kimberley since 1978 and, today, Kimberley Mines produces approximately 800 000 carats per annum, treating 6.4 million tonnes of ore. DBCM holds a new order mining right for its Kimberley Mines operations, which expires in 2040. As at 31 December 2014 Kimberley Mines had a combined SAMREC Code compliant resource base of 26.2 million tonnes of ore at an average grade of 10.8 carats per hundred tonnes (“cpht”), translating into a mineral resource of 2.8 million carats, with a low cost operating base. Additionally, Kimberley Mines has 93.2 million tonnes of ore deposits at a grade of 4.4 cpht. The diamond resource is spread over five TMR groupings, namely, Old Direct Treatment Plant, Reservoir, Pulsator, Recovery Tailings and Stadium Mineral Resources, covering a total area of 3 981 hectares. The current life of mine (“LoM”) to 2018, in the hands of DBCM, requires no further capital investment other than stay-in-business capital, and can potentially be extended until 2030, by employing more efficient and lower cost processing methods. DBCM wishes to dispose of its 100% interest in Kimberley Mines, as Kimberley Mines no longer fits into DBCM’s strategic plan and asset portfolio. The disposal will take the form of a single transaction incorporating the sale of all of the assets (including a “mining asset package” and a “property asset package”), as well as all of the liabilities of Kimberley Mines, as a going concern. This sale will be concluded pursuant to a competitive tender process. At the present time, it is DBCM’s preference to dispose of the mining asset package and the property asset package as a single, integrated asset package. Accordingly, Potential Purchasers should be prepared to participate in the competitive tender process on that basis. DBCM, however, reserves the right, at its sole and absolute discretion, to withdraw, amend or terminate the sales process or the asset package at any time.

DBCM hereby invites interested parties, who may wish to submit expressions of interest for the acquisition of Kimberley Mines to contact The Standard Bank of South Africa Limited by email by no later than 17h00 on Friday, 29 May 2015, to obtain the formal Request for Expressions of Interest: Sandra du Toit Tel: +27 11 344 5819 Fax: +27 86 587 6789 Email: [email protected]

Yogan Appalsamy Tel: +27 11 721 5188 Fax: +27 86 202 7291 Email:[email protected]

Please note that interested parties, who wish to proceed to submit an expression of interest (“Potential Purchasers”), will be required to submit the information set out in the Request for Expressions of Interest, together with a signed confidentiality agreement, and to deposit an amount of R100 000 (one hundred thousand South African Rands) into DBCM’s attorneys’ trust account. This deposit will not be refunded if the Potential Purchaser withdraws from the sales process, but will be refunded should DBCM, in its sole discretion, disqualify such Potential Purchaser from further participation in the sales process. All enquiries in respect of the process or requests for further information should be directed to Sandra du Toit or Yogan Appalsamy of Standard Bank (preferably by e-mail). Under no circumstances should management, shareholders or employees of the De Beers Group, DBCM, Kimberley Mines or any other stakeholder in Kimberley Mines, be contacted at any stage.