Not just another junior mining company

Investor relations presentation Marius Saaiman Joint Chief Executive Officer February 2013

Disclaimer

Statements in this presentation, other than historical facts, that address exploration activities and mining potential are The directors and management of Village Main Reef Gold Mining Company Limited “forward-looking” statements and are not statements of fact.

(“the Company”) are of the belief that the expectations expressed in such forward-looking statements are based on reasonable assumptions, expectations, estimates and projections, however such statements should not be construed as being guarantees or warranties (whether express or implied) of future performance. There can be no assurance that the “forward-looking” statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Factors that could cause developments to differ materially from the “forward-looking” statements expressed in this presentation include, without limitation, the results of further exploration activities, technical analysis, the lack of availability to the Company of necessary capital on acceptable terms, general economic and business conditions, industry trends, competition, changes in government regulations, interest rate fluctuations, currency fluctuations, changes in business strategy or development plans and other risks.

Neither the Company, its directors, its management nor any of its affiliates and shareholders represent nor guaranty that the assumptions underlying such “forward-looking” statements are free from errors nor do they accept any responsibility or liability of what so ever nature for the future accuracy of the opinions expressed in this presentation. No obligation is assumed to update any “forward-looking” statements.

No person, especially those who do not have professional experience in matters relating to investments, must rely on the contents of this presentation. If you are in any doubt as to the matters contained in this presentation you should consult an authorised person specialising in advising on investments of the kind contained in this presentation. Nothing in this presentation constitutes advise or a recommendation regarding any securities of the Company and this presentation has not been reviewed or approved by either the Financial Services Board or the Johannesburg Stock Exchange.

No representation or warranty, expressed or implied, is made in this presentation and no reliance should be placed on the accuracy, actuality, fairness, or completeness of the information presented. None of the Company, its affiliates and shareholders, not any of their directors, officers, employees and advisors nor any other person shall have any liability whatsoever for any losses arising, directly or indirectly, from any information contained in the presentation. This presentation does not constitute or form part of any offer or invitation to sell, or any solicitation of any offer to purchase or subscribe for or otherwise acquire, any securities in the Company in any jurisdiction or an invitation or an inducement to engage in investment activity nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment. Any decision to purchase shares of the Company should be made solely on the basis of information, which has been publicly filed with the Johannesburg Stock Exchange.

This is not an offer of securities for sale in the United States of America USA or to a “USA” or to or for the account or benefit of any “USA person” and securities may not be offered or sold in the “USA person” absent registration or an exemption from registration.

By accepting the information provided in this presentation you acknowledge that you are solely responsible for your own assessment of the market position of the Company and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the Company’s business.

The information provided in this presentation is current and relevant as at 30 June 2012. Neither the delivery of this presentation nor any further discussions of the Company with any of the recipients shall, under any circumstances, create the impression that the affairs of the company shall not undergo any changes after such date.

Investor relations presentation

|February 2013 2

Who we are

     

New generation, small cap, diversified mining company:



gold, antimony and PGM exploration Listed on the JSE since 1944 (share code: VIL) BEE ownership in excess of 23% Strong leadership

  

Marius Saaiman Bernard Swanepoel Roy Pitchford Market cap: R1.2 billion (US$141 million) 30 Dec 2012 Our model is similar to a private equity model

 

Strong cash generating assets Dividend paying

Investor relations presentation

|February 2013 3

Daily share volumes traded

Volume Jun 2011 avg.

Dec 2011 avg.

2012 avg.

30 25 2,5 2,0 20 1,5 15 10 1,0 0,5 5 0 янв.11 фев.11 мар.11 апр.11 май.11 июн.11 июл.11 авг.11 сен.11 окт.11 ноя.11 дек.11 янв.12 фев.12 мар.12 апр.12 май.12 июн.12 июл.12 авг.12 сен.12 окт.12 ноя.12 дек.12

0,0

Investor relations presentation

|February 2013 4

Who we are and what we do

 

Private equity model

XX      

Achieved by:

 

identifying and investing in opportunities that represent value unlocking opportunities from these assets in a way that realises their potential value We assess each situation on its merits We structure our operations around their needs not around conventional wisdom We strive to make our assets cash positive and sustainable We make tough decisions to optimise the value of each operation When the time is right, we move them to other owners and realise their value

Investor relations presentation

|February 2013 5

Who we are not



We are not:



a conventional company

  

creating an empire bound by specific commodities attached to our assets

Investor relations presentation

|February 2013 6

Our management team

Bernard Swanepoel (51)

Joint Chief Executive Officer BSc (Mining Eng), BCom (Hons)

Marius Saaiman (41)

Joint Chief Executive Officer BCom (Hons) (RAU), CA (SA) SAICA

Sandeep Gandhi (38)

Chief Financial Officer CA (SA) Bernard was appointed as a director of Village on 11 July 2008. He was subsequently appointed as CEO on 17 May 2010, and has been Joint CEO as of 4 May 2012. He started his career with Gengold in 1983, culminating in his appointment as general manager of Beatrix Mines in 1993. After joining Randgold in 1995 as managing director of Harmony mine, Bernard became CEO of Harmony from 1997 to 2007. Bernard is a non-executive board member of Sanlam and African Rainbow Minerals (ARM) and a partner of To The Point Growth Specialists. He is also non-executive chairman of Savanna Mining, a private UK exploration company, exploring for gold in Nigeria.

Marius was appointed as CFO of Village on 29 June 2011, and was subsequently appointed as Joint CEO on 4 May 2012. Before joining Village, Marius was CFO of Simmers and in early 2011 stepped in as acting CEO of Simmers. Prior to this, Marius was responsible for coverage of the resource sector as well as advising on M&A within the sector at Macquarie. Previous positions include investment adviser at African Global Capital, head of corporate finance and treasury at Kumba Iron Ore and vice president in the corporate finance department at Anglo American plc.

Sandeep Gandhi was appointed as CFO of Village on 4 May 2012. He was previously chief accountant at Johnson Matthey (Pty) Limited and has held managerial roles at Ernst & Young US, GlaxoSmithKline UK, British Airports Authority UK and PwC.

Dallubuhle Ncube (33)

Operations Director BSc Eng (Mining), Pr Eng, CPLD, MBA (Wits), ASAIMM, AAMMSA Dalu’s experience has been mainly in South African gold mining where he gained experience in shaft pillar and remnant mining. He held technical and operational management positions at various operations within Harmony Gold. It was at Harmony, in 2007, that Dalu played an instrumental role, on a group-wide basis, in the management of operational improvement projects and the addressing of key performance indicators related to a strategic focus on cost per tonne reduction. He then joined To The Point Growth Specialists as a technical analyst in 2008. Dalu later played a pivotal role as part of the To The Point turnaround intervention team at Cons Murch Mine which eventually led to the acquisition of that mine by Village in March 2011. He was appointed as an executive director of Village in May 2010.

Richard de Villiers (58)

Director of Human Resources BA (Hons), Masters in Management, Dip Employment Relations, Dip Labour Law Richard began his career at Blyvoor and has been involved in the mining industry for the past 40 years.

He previously served on the boards of directors of Harmony Gold Mining Company Limited, Randgold & Exploration Company Limited, ERPM Limited and DRDGOLD Limited.

Investor relations presentation

|February 2013 7

What we have

Investor relations presentation

|February 2013 8

Where our assets are

Investor relations presentation

|February 2013 9

Our timeline

Anglovaal subscribed for shares in Village and took over administration and technical management Underground operations halted Village retreats surface sand dumps and calcines To The Point Growth Specialists (Pty) Limited acquired 48% stake in Village Village Village purchased 74% of Cons Murch received Company Limited, approval from owned subsidiary for R150 million the South African Competition Commission to purchase Blyvooruitzicht Gold Mining DRDGOLD’s wholly Village pays a special dividend of 30 cents per share

1934 1940 1966 1976

Present-day Village formed with ore reserves of 3,293,000t averaging 4g/t – giving a life expectancy of 17 years at a monthly rate of 15,000t Acquired New Robinson mines

Investor relations presentation

|February 2013

1976 1995 1995 2008 June 2010 March 2011 June 2011 May 2012 June 2012 August 2012

Surface retreatment stopped due to inability to operate at a profit Village and then Village acquired majority of Simmer and Jack assets. The enlarged Village entity incorporates Buffelsfontein Gold Mine, Tau Lekoa and an Investment in First Uranium (FIU). The inclusion of these assets transformed Village into a mid-tier precious metals player shareholder, Umbono purchased controlling interest in 46% Lesego’s high grade total inferred resource of 27.8Moz of 3PGMs+Au BEE • FIU shareholders approved the required resolutions for FIU to dispose of its interest in Mine Waste Solutions (MWS) and Ezulwini mine • Village successfully disposed of its 19.8% equity interest in FIU to AngloGold Ashanti for R205 million • Cash realised from the disposal of the Secured Convertible Rand Denominated MWS notes amount to R393 million 10

More about

OUR ASSETS

Investor relations presentation

|February 2013 11

Tau Lekoa Mine

Key facts and statistics

Description     Main access via two vertical surface shafts Underground development well advanced as the mine approaches its end of life, with most of the mining taking place in pre-developed blocks Mining method: scattered breast, overhand or underhand, depending on conditions Produce some 125,000oz/pa at cash cost of less than R250,000/kg Acquired Reserves and resources Life of mine Review June 2011 at a cost of R650 million    Total reserve: 0.783Moz Total resource: 3.77Moz

No activity on the Weltevreden and Jonkerskraal projects, resource estimates remain the same as at 30 June 2011 at 3.87Moz and 3.22Moz respectively 5 years    Productivity improvement  Tau Pride Project Process improvement and tracking key activities Effective use of hydropower

Investor relations presentation

|February 2013 12

Buffels Gold Mine

Key facts and statistics

Description Acquired      Mining method: conventional breast mining with scraper winch cleaning Pillar and remnant mining, scattered breast mining practised in newer blocks Access created through conventional development and opening up of old areas Ore loaded via ore passes into hoppers and hauled by locomotive to shaft Produce some 50,000oz/pa at cash cost of R425,000/kg June 2011 at a cost of R100 million Reserves and resources Life of mine    Total reserves: 1.95Moz

Total resources: 18.4Moz Uranium resource:15.0Mlb (uranium not currently being extracted) 16 years Review     Increased understanding of orebody Hoisting problems at 2 shaft addressed  improved volumes and gold yield expected Infrastructure upgrade including improvements to underground tracks and conveyances Improved stakeholder relations with unions and employees

Investor relations presentation

|February 2013 13

South Gold Plant

Key facts and statistics

Description Acquired   Carbon-in-pulp plant with capacity of around 180,000t of ore/m Bulk of production comes from Tau Lekoa, with Blyvoor and Buffels mines contributing the remainder June 2011 as part of Buffelsfontein Review    Consistent performance Improved recoveries from 93% to 96%   efficiency improvements in leaching circuit higher-grade feed from Blyvoor Unit costs well managed

Investor relations presentation

|February 2013 14

Blyvoor Gold Mine

Key facts and statistics

Description Acquired One producing underground shaft, 5 Shaft Mining method: conventional breast mining with scraper winch cleaning Surface slimes treatment producing some 50kg of gold per month – short LOM Anticipated production of 60,000oz/pa from underground at cash cost of R400,000/kg June 2012 at a cost of R150 million Reserves and resources   Total resource: 30.39Moz

Total reserves: estimated at 0.83Moz (currently being re-evaluated as part of an update of the life of mine planning) Life of mine Currently being updated Review     Total gold production of 216kg in June 2012 148kg from underground operations 68kg from surface operations R1.6 million in cash generated during June 2012

Investor relations presentation

|February 2013 15

Cons Murch Mine

Key facts and statistics

Description Acquired     Antimony producer, with gold as a by-product Three operating shafts: Athens, Monarch and Beta New production decline – Gravelotte being developed Two tailings dumps evaluated for potential by independent consultants March 2011 at a cost of R40 million Reserves and resources Life of mine Review  

Underground

 Total antimony reserves: 28,848t Total antimony resources: 206,293t Total gold reserves: 133,300oz  Total gold resources: 744,000oz

Surface

 Total antimony resource: 74,249t (following the evaluation of tailings dump No 2)  Total gold resource: 280,000oz 11 years      Focus on increasing production and controlling costs Moving from SLOS methods to more mechanised methods Ongoing deepening at Monarch and Athens shafts via trackless mechanised mining methods Development started on surface decline project (Gravelotte) to target shallower orebody, mainly for antimony Upgrades at processing plant completed

Investor relations presentation

|February 2013 16

Lesego Platinum Project

Key facts and statistics

Description Reserves and resources Management agreement in place with BBBEE partner Umbono to manage pre-feasibility process and to oversee exploration currently underway Total project mineral resource: 39.03Moz(3PGE+Au) Acquired Life of mine Review June 2010 at a cost of R450 million 38 years      BFS stage fully funded R143 million committed by IDC to fund BFS First phase of BFS started in February 2010 Phase 3 scheduled for completion by early 2013 On-site drilling completed Shallow resource less than 700m below surface

Investor relations presentation

|February 2013 17

Operational analysis Realised price R/kg Au

600 000 500 000 400 000 300 000 200 000 100 000 800 000 700 000 600 000 500 000 400 000 300 000 200 000 100 000 Q1 2012 Q2 2012 Buffels Q3 2012 Q4 2012 Blyvoor Tau Lekoa Q1 2013 Q2 2013

Cash cost R/kg Au

Buffels Blyvoor Tau Lekoa

Investor relations presentation

|February 2013

Au production k'oz

35 30 25 20 15 10 5 0 800 000 700 000 600 000 500 000 400 000 300 000 200 000 100 000 Buffels Blyvoor Tau Lekoa

Full cost R/kg Au

Cons Murch Buffels Blyvoor Tau Lekoa 18

Recent

PERFORMANCE

Investor relations presentation

|February 2013 19

Key features from the results for the quarter ended 31 December 2012

        R183 million of cash generated from operations for the six months ended 31 December 2012, compared to R87 million for the six months ended 31 December 2011, an improvement of 110% Basic earnings per share of 5.92 cents per share compared to 16.57 cents for the six months ended 31 December 2011, a decline of 64% Gold production for the Village Group on a like for like basis, excluding Blyvoor, was 2,602kg (83,654oz) compared to 2,817kg (90,567oz) for the six months ended 31 December 2011. Total gold production including Blyvoor totalled 3,434kg (110,429oz) The impact of the industrial action at Blyvoor during October 2012 and safety related stoppages across all our mines negatively impacted total gold production volumes by an estimated 360kg over the six month period Antimony production was 2,728t compared to 2,285t for the six months ended 31 December 2011, an improvement of 19% Receipt of R405 million in cash from First Uranium Corporation (FIU), consisting of R392 million in settlement of Village’s investment in the secured Mine Waste Solution (Pty) Ltd Rand Notes (MWS Notes) and R14 million as an interim dividend in relation to its equity investment in FIU Payment of 30 cents per share special dividend on 6 August 2012 Village successfully repurchased 25.3 million of its ordinary shares amounting to 2.5% of the company’s share capital through its wholly owned subsidiary Buffelsfontein Gold Mines Limited (Buffels) at a total cost of R30.2

million

Investor relations presentation

|February 2013 20

Financial review: income statement at 31 December 2012

Revenue Cost of sales

Gross profit

Profit / (loss) from continuing operations Loss from discontinued operations

Profit/(loss) before taxation

Taxation

Profit/(loss) for the period

Basic earnings/(loss) per share from continuing operations 31 Dec 2012 Rm 1,700 (1,548)

122

30 June 2012 Rm 2,502 (2,072)

430

20 315

20

-

20

-

315

-

315

31 Dec 2011 Rm 1,288 (877)

411

30 June 2011 Rm 1,755 (1,685)

70

149 (1,873)

149

-

149

(43)

(1,916) (1,916)

5 cents 34 cents 16 cents (312) cents

Investor relations presentation

|February 2013 21

Financial review: balance sheet at 31 December 2012

Property, plant and equipment Investment in rehabilitation trust fund

Total non-current assets

Current assets: Financial assets Trade and other receivables Inventory Cash and cash equivalents

Total current assets

Assets held for sale

Total assets

Total equity Total non-current liabilities Total current liabilities

Total equity and liabilities Investor relations presentation

|February 2013 31 Dec 2012 Rm 2,254 30 June 2012 Rm 2,274 384

2,638

397

2,671

7 257 62 353

679

8

3,325

1,790 895 641

3,325

419 217 128 295

1,059

8

3,738

1,804 824 1,110

3,738

31 Dec 2011 Rm 1,773 Restated 30 June 2011* Rm 1,701 709

2,481

675

2,376

7 108 52 310

476

6

2,963

1,838 611 515

2,963

5 103 44 196

348

252

2,976

1,685 659 632

2,976

22

Mineral reserves and resources as at 31 December 2012

Mineral reserves

Total underground reserves (Au – incl. Cons Murch Mine and Blyvoor*) (Moz) Total underground reserves (Au – excl. Blyvoor Mine) (Moz) Total underground reserves (Sb) (t)

Mineral resources

Total underground resources (Au – incl. Blyvoor Mine**) (Moz) Total underground resources (Sb) (t) Total underground resources (Au – incl. Blyvoor Mine***) (Moz)

(Lesego Platinum project – 3PGE+Au)

• Total measured resources (Moz) • Total indicated resources (Moz) • Total inferred resources (Moz)

Notes * Blyvoor Mine underground reserves estimated at ).8Moz (based on an expected compliant reserve, not yet SAMREC-compliant).

** Blyvoor Mine underground mineral resource estimated at 28.84Moz (based on a compliant resource).

***Blyvoor Mine surface resource estimated at 1.55Moz and Cons Murch surface resources at 0.28Moz.

Investor relations presentation

|February 2013

2012 3.7

2.87

28.84

55.53

206,293 1.83

7.94

16.26

14.83

23

Gold sector comparison

EV/EBITDA comparison

10,00 8,00 6,00 4,00 2,00 -2,00 -4,00 Gold One DRD Gold -6,00 -8,00 -10,00

Source: Bloomberg, Company data

Pan African Village Main Reef Wits Gold

EV/Resource ounce comparison oz

340,0 290,0 240,0 190,0 140,0 90,0 40,0 -10,0 Gold One Pan African DRD Gold Village Main Reef

Source: Bloomberg, Company data *Note: based on gold resources only

Wits Gold

Investor relations presentation

|February 2013 24

Village Main Reef Listed Note Term Sheet

Arranger Issuer Guarantor Issuer rating Renaissance Capital Village Main Reef Limited Buffelsfontein Gold Mines Ltd Global credit rating – national scale Status of notes Form of notes Placement/issue date Settlement date Issue size Tenor Maturity date Price guidance (basis points over Jibar) Interest nature Pricing benchmark Capital profile Contact details Distribution methodology 3 year unsecured senior notes Listed on the JSE – under the R1bn DMTN programme To be determined after roadshow feedback To be assigned ZAR300 - ZAR500 million 3 years 2015 000 – 000bps Floating 3-month Jibar* Bullet Leon Krynauw; Ashley Dickinson; Alvin Chawasema; Helena Stone Johannesburg desk: +27 11 750 1301-5 New York: +1 212 824 0152/3 Bookbuild/private placement via Reg S/Reg D exemption *3-month Jibar/ R157 rates will be determined on the bookbuild date

Investor relations presentation

|February 2013 Long term – Short term –

BBB.za

A3.za

Outlook -

stable

3 years 2015 000 – 000bps Fixed R157* 25

Use of funds

  

Targeted corporate activity in line with stated strategy Number of exciting investment opportunities in the resource sector which require:



cash or debt required to finance



returns on investment likely to be materially higher than cost of debt Equity under valued and not ideal as currency

Investor relations presentation

|February 2013 26

In conclusion

Investor relations presentation

|February 2013 27

Contact details

Tel: +27 11 274 4600 Fax: +27 11 484 7343 Email: [email protected]

[email protected] [email protected]

[email protected]

Registered office

Isle of Houghton 13 Boundary Road Old Trafford One 1st Floor Houghton 2198 PO Box 1539 Houghton 2041 E-mail: [email protected]

Shareholder data

(Incorporated in the Republic of South Africa) Registration number: 1934/005703/06 JSE share code:VIL ISIN: ZAE000007720 Sector: Gold Mining

Investor relations presentation

|February 2013 28