----

| [ ] | REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|-----|------------------------------------------------------------------------------------------------|

| [x] | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|-----|--------------------------------------------------------------------------------------|

| [ ] | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|-----|------------------------------------------------------------------------------------------|

| [ ] | SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|-----|---------------------------------------------------------------------------------------------|

----

|  | Common Shares, without par value | 52,787,428 |  |
|--|----------------------------------|------------|--|

----

----

| ITEM 1 - IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS                         | 8                                                       |
|----------------------------------------------------------------------------------------|---------------------------------------------------------|
| ITEM 2 - OFFER STATISTICS AND EXPECTED TIMETABLE                                       | 8                                                       |
| ITEM 3 - KEY INFORMATION                                                               | 8                                                       |
| A.                                                                                     | Selected Financial Data                                 | 8 |
| B.                                                                                     | Capitalization and Indebtedness                         | 9 |
| C.                                                                                     | Reasons for the Offer and Use of Proceeds               | 9 |
| D.                                                                                     | Risk Factors                                            | 9 |
| ITEM 4 - INFORMATION ON THE COMPANY                                                    | 18                                                      |
| A.                                                                                     | History and Development of the Company                  | 18 |
| B.                                                                                     | Business Overview                                       | 20 |
| C.                                                                                     | Organizational Structure                                | 26 |
| D.                                                                                     | Property, Plant and Equipment                           | 27 |
| ITEM 4A - UNRESOLVED STAFF COMMENTS                                                    | 27                                                      |
| ITEM 5- OPERATING AND FINANCIAL REVIEW AND PROSPECTS                                   | 27                                                      |
| A.                                                                                     | Operational Results                                     | 27 |
| B.                                                                                     | Liquidity and Capital Resources                         | 32 |
| C.                                                                                     | Research and development, patents and licences          | 34 |
| D.                                                                                     | Trend Information                                       | 34 |
| E.                                                                                     | Off-Balance Sheet Arrangements                          | 34 |
| F.                                                                                     | Tabular Disclosure of Contractual Obligations           | 34 |
| ITEM 6 - DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES                                    | 34                                                      |
| A.                                                                                     | Directors and Senior Management                         | 34 |
| B.                                                                                     | Compensation                                            | 39 |
| C.                                                                                     | Board Practices                                         | 40 |
| D.                                                                                     | Employees                                               | 40 |
| E.                                                                                     | Share Ownership                                         | 41 |
| ITEM 7 - MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS                             | 42                                                      |
| A.                                                                                     | Major Shareholders                                      | 42 |
| B.                                                                                     | Related Party Transactions                              | 42 |
| C.                                                                                     | Interests of Experts and Counsel                        | 43 |
| ITEM 8 - FINANCIAL INFORMATION                                                         | 43                                                      |
| A.                                                                                     | Consolidated Statements and Other Financial Information | 43 |
| B.                                                                                     | Significant Changes                                     | 44 |
| ITEM 9 - THE OFFERING AND LISTING                                                      | 44                                                      |
| A.                                                                                     | Offering and Listing Details                            | 44 |
| ITEM 10 - ADDITIONAL INFORMATION                                                  | 47                                                      |
| A.                                                                                     | Share Capital                                           | 47 |
| B.                                                                                     | Articles of Association                                 | 47 |
| C.                                                                                     | Material Contracts                                      | 48 |
| D.                                                                                     | Exchange Controls                                       | 48 |
| E.                                                                                     | Taxation                                                | 48 |
| F.                                                                                     | Dividends and Paying Agents                             | 52 |
| G.                                                                                     | Statement by Experts                                    | 52 |
| H.                                                                                     | Documents on Display                                    | 52 |
| I.                                                                                     | Subsidiary Information                                  | 53 |
| ITEM 11 - QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK                   | 53                                                      |
| A.                                                                                     | Currency Risk                                           | 53 |
| B.                                                                                     | Interest Rate Risk                                      | 54 |
| C.                                                                                     | Concentration of Credit Risk                            | 55 |
| D.                                                                                     | Liquidity Risk                                          | 55 |
| E.                                                                                     | Commodity Price Risk                                    | 55 |
| ITEM 12 - DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES                       | 55                                                      |
| ITEM 13 - DEFAULTS, DIVIDEND ARREARS AND DELINQUENCIES                                 | 55                                                      |
| ITEM 14 - MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS | 55                                                      |
| ITEM 15 - CONTROLS AND PROCEDURES                                                      | 56                                                      |
| ITEM 16A - AUDIT COMMITTEE FINANCIAL EXPERT                                            | 57                                                      |
| ITEM 16B - CODE OF ETHICS                                                              | 57                                                      |
| ITEM 16C - PRINCIPAL ACCOUNTANT FEES AND SERVICES                                      | 57                                                      |
| ITEM 16D - EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES                  | 57                                                      |
| ITEM 16E - PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS      | 57                                                      |
| ITEM 16F - CHANGE IN REGISTRANT'S CERTIFYING ACCOUNTANT                                | 58                                                      |
| ITEM 16G - CORPORATE GOVERNANCE                                                        | 58                                                      |
| ITEM 16H - MINE SAFETY DISCLOSURE                                                      | 58                                                      |
| ITEM 17 - FINANCIAL STATEMENTS                                                         | 58                                                      |
| ITEM 18 - FINANCIAL STATEMENTS                                                         | 58                                                      |
| ITEM 19 – EXHIBITS                                                               | 59                                                      |

----

----

----

----

| A. | Selected Financial Data |
|----|-------------------------|

| Financial – All in USD’000’s unless indicated otherwise | 2016   | 2015   | 2014(2) | 2013(2) | 2012(2) |
|---------------------------------------------------------------------------|--------|--------|---------|---------|---------|
| Revenue                                                                   | 61,992 | 48,977 | 53,313  | 63,217  | 75,236  |
| Gross Profit                                                              | 23,492 | 13,181 | 18,543  | 29,010  | 40,923  |
| Net Income /(Loss) – after tax from operations                      | 11,085 | 5,590  | 5,946   | (477)   | 7,122   |
| Net Income /(Loss) – after tax from continuing operations           | 11,085 | 5,590  | 5,946   | (477)   | 7,122   |
| Profit attributable to owners of the Company                              | 8,526  | 4,779  | 4,435   | (2,967) | 8,515   |
| Net cash and cash equivalent                                              | 14,335 | 10,880 | 23,082  | 21,901  | 28,125  |
| Current Assets                                                            | 25,792 | 23,562 | 31,743  | 33,800  | 35,525  |
| Total Assets                                                              | 90,709 | 72,838 | 66,479  | 65,072  | 72,297  |
| Current Liabilities                                                       | 9,832  | 8,397  | 4,972   | 7,044   | 9,341   |
| Long Term Liabilities                                                     | 21,560 | 14,080 | 11,164  | 9,437   | 6,973   |
| Working Capital                                                           | 15,960 | 15,165 | 26,771  | 26,756  | 26,184  |
| Net Assets                                                                | 59,317 | 50,361 | 50,343  | 48,591  | 55,983  |
| Total Capital Expenditures (Cash)                                         | 19,885 | 16,567 | 6,150   | 11,396  | 7,910   |
| Dividend per share – cents (1)                                      | 4.9    | 4.8    | 5.4     | 9.8     | -       |
| Earnings/(loss) per share – cents (1)                               | 15.9   | 8.9    | 8.4     | (5.4)   | 17.2    |
| Diluted earnings/(loss) per share – cents (1)                       | 15.8   | 8.9    | 8.4     | (5.4)   | 17.2    |

----

|                                                 | 2016   | 2015   | 2014   | 2013   | 2012   |
|------------------------------------------------------|--------|--------|--------|--------|--------|
| Market Capitalization (Thousands) at December 31 (3) | 60,178 | 32,209 | 31,791 | 39,088 | 46,301 |
| Shares Outstanding (Thousands)(1)                    | 52,787 | 52,078 | 52,117 | 52,117 | 51,446 |
| Options  Outstanding (Thousands)(1)             | 461    | 2,241  | 2,565  | 2,848  | 3,330  |

| (1) | All dividend per share, earnings per share, diluted earnings per share and option numbers are stated on the basis of the 1:10 reverse split that took place in 2013. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | All amounts before January 1, 2015 have been restated to United States Dollar (“USD”) or (“$”). |
|-----|-------------------------------------------------------------------------------------------------------------------------|

| (3) | Based on the OTCQX share price quoted in USD. |
|-----|-----------------------------------------------|

| B. | Capitalization and Indebtedness |
|----|---------------------------------|

| C. | Reasons for the Offer and Use of Proceeds |
|----|-------------------------------------------|

| D. | Risk Factors |
|----|--------------|

----

----

| - | delays or refusal in granting prospecting permissions, mining authorizations and work permits for foreign management staff; |
|---|-----------------------------------------------------------------------------------------------------------------------------|

| - | import and export regulation, including restrictions on the sale of production in foreign currencies; |
|---|-------------------------------------------------------------------------------------------------------|

----

| - | requirement that a foreign subsidiary or operating unit have a domestic joint venture partner, which, possibly, the foreign company must subsidize; |
|---|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| - | restrictions on the ability of local operating companies to sell their production for foreign currencies, and on the ability of such companies to hold these foreign currencies in offshore and/or local bank accounts; |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| - | restrictions on the ability of a foreign company to have management control of exploration and/or development and/or mining operations; |
|---|-----------------------------------------------------------------------------------------------------------------------------------------|

| - | other risks arising out of foreign sovereignty over the areas in which operations are conducted; and |
|---|------------------------------------------------------------------------------------------------------|

| - | lack of investment funding; |
|---|-----------------------------|

----

----

| · | actual or expected fluctuations in our operating results; |
|--------|-----------------------------------------------------------|

| · | actual or expected changes in our growth rates or our competitors’ growth rates; |
|--------|----------------------------------------------------------------------------------------|

| · | changes in the market price of gold; |
|--------|--------------------------------------|

| · | changes in the demand for gold; |
|--------|---------------------------------|

| · | high extraction costs; |
|--------|------------------------|

| · | accidents; |
|--------|------------|

----

| · | changes in market valuations of similar companies; |
|--------|----------------------------------------------------|

| · | additions to or departures of our key personnel; |
|--------|--------------------------------------------------|

| · | actual or anticipated fluctuations in our quarterly operating results or those of our competitors; |
|--------|----------------------------------------------------------------------------------------------------|

| · | publication of research reports by securities analysts about us or our competitors in the industry; |
|--------|-----------------------------------------------------------------------------------------------------|

| · | our failure or the failure of our competitors to meet analysts’ projections or guidance that we or our competitors may give to the market; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------|

| · | fluctuations of exchange rates between the USD and the South African rand; |
|--------|----------------------------------------------------------------------------|

| · | changes or proposed changes in laws and regulations affecting the gold mining industry; |
|--------|-----------------------------------------------------------------------------------------|

| · | changes in trading volume of our shares on the TSX, AIM or the OTCQX; |
|--------|-----------------------------------------------------------------------|

| · | sales or perceived potential sales of our shares by us, our directors, senior management or our shareholders in the future; |
|--------|-----------------------------------------------------------------------------------------------------------------------------|

| · | short selling or other market manipulation activities; |
|--------|--------------------------------------------------------|

| · | announcement or expectation of additional financing efforts; |
|--------|--------------------------------------------------------------|

| · | terrorist acts, acts of war or periods of widespread civil unrest; |
|--------|--------------------------------------------------------------------|

| · | natural disasters and other calamities; |
|--------|-----------------------------------------|

| · | litigation involving us, including: shareholder litigation, investigations or audits by regulators into our  operations; or proceedings initiated by our competitors or clients; |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | strategic decisions by us or our competitors, such as acquisitions, divestitures, spin-offs, joint ventures, strategic investments or changes in business strategy; |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | the passage of legislation or other regulatory developments affecting us or our industry; |
|--------|-------------------------------------------------------------------------------------------|

| · | fluctuations in the valuation of companies perceived by investors to be comparable to us; and |
|--------|-----------------------------------------------------------------------------------------------|

| · | conditions in the U.S., Canadian and United Kingdom financial markets or changes in general economic conditions. |
|--------|------------------------------------------------------------------------------------------------------------------|

----

----

----

| · | the last day of the fiscal year during which we have total annual gross revenues of $1,000,000,000 (as such amount is indexed for inflation every five years by the SEC or more); |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | the last day of our fiscal year following the fifth anniversary of the completion of our first sale of equity securities pursuant to an effective registration statement under the Securities Act; |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | the date on which we have, during the previous three-year period, issued more than $1,000,000,000 in non- convertible debt; or |
|--------|--------------------------------------------------------------------------------------------------------------------------------|

| · | the date on which we are deemed to be a “large accelerated filer”, as defined in Rule 12b–2 of the Exchange Act, which would occur if the market value of our shares that are held by non-affiliates exceeds $700,000,000 as of the last day of our most recently-completed second fiscal quarter. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| A. | History and Development of the Company |
|----|----------------------------------------|

|  | Registered and Head Office | African Office - South Africa |
|--|----------------------------|-------------------------------|

| Caledonia Mining Corporation Plc        | Caledonia Mining South Africa Proprietary Limited |
|-----------------------------------------|---------------------------------------------------|
| 3rd Floor, Weighbridge House, St Helier | 4th Floor, 1 Quadrum office park                  |
| Jersey, Channel Islands                 | Johannesburg, Gauteng, 2198                       |
| JE2 3NF                                 | South Africa                                      |
| (44) 1534 679 9800                      | (27) 11 447 2499                                  |

----

| · | sold a 16% interest to the National Indigenisation and Economic Empowerment Fund (“NIEEF”) for $11.74 million; |
|--------|----------------------------------------------------------------------------------------------------------------------------|

| · | sold a 15% interest to Fremiro Investments (Private) Limited (“Fremiro”), which is owned by indigenous Zimbabweans, for $11.01 million; |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| · | sold a 10% interest to Blanket Employee Trust Services (Private) Limited (“BETS”) for the benefit of present and future managers and employees for $7.34 million. The shares in BETS are held by the Blanket Mine Employee Trust (the “Employee Trust”) with Blanket Mine’s employees holding participation units in the Employee Trust; and |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | donated a 10% ownership interest to the Gwanda Community Share Ownership Trust (“Community Trust”). In addition Blanket Mine paid a non-refundable donation of $1 million to the Community Trust. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| B. | Business Overview |
|----|-------------------|

----

| Mineral Resource Category    |   | Tonnes(metric) |      |   | Grade(Au g/t) |   |   | Gold Content (ounces) |   |
|------------------------------|--------|----------------|-----------|--------|---------------|--------|--------|-----------------------|--------|
| Measured Resources           |   |           | 1,572,733 |   |          |   | 3.91   |                  |   |   | 197,606 |   |
| Indicated Resources          |   |           | 2,478,902 |   |          |   | 3.77   |                  |   |   | 300,288 |   |
| Total Measured and Indicated |   |           | 4,051,635 |   |          |   | 3.82   |                  |   |   | 497,895 |   |
| Inferred Resources*          |   |           | 3,344,831 |   |          |   | 5.11   |                  |   |   | 549,963 |   |

| 1. | Resource estimate is based on a gold price of US$1,300/oz. |
|----|------------------------------------------------------------|

| 2. | Mineral Resources are stated at a 1.96 g/t cut-off. |
|----|-----------------------------------------------------|

| 3. | Tonnages are stated at an in-situ relative density of 2.86 t/m3. |
|----|------------------------------------------------------------------|

| 4. | Inferred Resources are expressed separately from the Measured and Indicated category. |
|----|---------------------------------------------------------------------------------------|

| Mineral Reserve Category             |   | Tonnes(metric) |      |   | Grade(Au g/t) |   |   | Gold Content (ounces) |   |
|--------------------------------------|--------|----------------|-----------|--------|---------------|--------|--------|-----------------------|--------|
| Proven Reserves                      |   |           | 856,005   |   |          |   | 3.40   |                  |   |   | 93,638 |   |
| Probable Reserves                    |   |           | 2,077,828 |   |          |   | 3.78   |                  |   |   | 252,758 |   |
| Total Proven & Probable Reserves |   |           | 2,933,833 |   |          |   | 3.67   |                  |   |   | 346,396 |   |

| 1. | As noted above, Mineral Reserves are also included in the above table of Mineral Resources. |
|----|---------------------------------------------------------------------------------------------|

| 2. | Reserve estimate is based on a gold price of US$1,250/oz. and a cash cost of US$71/tonne milled. |
|----|--------------------------------------------------------------------------------------------------|

| 3. | Blanket Mine’s pay limit (cut-off grade) is 2.03 g/t. |
|----|-------------------------------------------------------------|

| 4. | Reserve tonnages have been diluted by 5 to 10% at zero grade to yield RoM tonnages (delivered to mill). |
|----|---------------------------------------------------------------------------------------------------------|

----

| Mineral Resource Category    |   | Tonnes(metric) |      |   | Grade(Au g/t) |   |   | Gold Content (ounces) |   |
|------------------------------|--------|----------------|-----------|--------|---------------|--------|--------|-----------------------|--------|
| Measured Resources           |   |           | 1,532,000 |   |          |   | 4.04   |                  |   |   | 198,800 |   |
| Indicated Resources          |   |           | 3,408,700 |   |          |   | 4.31   |                  |   |   | 472,600 |   |
| Total Measured and Indicated |   |           | 4,940,700 |   |          |   | 4.23   |                  |   |   | 671,400 |   |
| Inferred Resources*          |   |           | 3,764,000 |   |          |   | 4.99   |                  |   |   | 604,000 |   |

| 1. | Resource estimate is based on a gold price of US$1,300/oz. and a cash cost of US$65/t. |
|----|----------------------------------------------------------------------------------------|

| 2. | Mineral Resources are stated at a 1.81 g/t cut-off. |
|----|-----------------------------------------------------|

| 3. | Mineral Resources are reported inclusive of Mineral Reserves. |
|----|---------------------------------------------------------------|

| 4. | Tonnages are rounded to the nearest 100 and ounces to the nearest 100. |
|----|------------------------------------------------------------------------|

| 5. | Tonnages are stated at an in-situ relative density of 2.86 t/m3. |
|----|------------------------------------------------------------------|

| 6. |  Inferred Resources are expressed separately from the Measured and Indicated category. |
|----|---------------------------------------------------------------------------------------------|

|  | * | Inferred Resources have a great amount of uncertainty as to their existence and as to whether they can be mined economically or legally. It cannot be assumed that all or any part of the inferred resource will be upgraded to a higher resource or reserve category. |
|--|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Mineral Reserve Category             |   | Tonnnes(metric) |      |   | Grade(Au g/t) |   |   | Gold Content (ounces) |   |
|--------------------------------------|--------|-----------------|-----------|--------|---------------|--------|--------|-----------------------|--------|
| Proven Reserves                      |   |            | 798,900   |   |          |   | 3.70   |                  |   |   | 95,000 |   |
| Probable Reserves                    |   |            | 2,061,000 |   |          |   | 3.64   |                  |   |   | 241,300 |   |
| Total Proven & Probable Reserves |   |            | 2,859,900 |   |          |   | 3.66   |                  |   |   | 336,300 |   |

|  | 1. | Mineral Resources are reported inclusive of Mineral Reserves. |
|--|----|---------------------------------------------------------------|

|  | 2. | Reserve estimate is based on a gold price of US$1,300/oz. and a cash cost of US$65/t milled. |
|--|----|----------------------------------------------------------------------------------------------|

|  | 3. | Blanket Mine’s pay limit (cut-off) is 1.81 g/t. |
|--|----|-------------------------------------------------------|

|  | 4. | Reserve tonnages have been diluted by 5 to 10% at zero grade to yield RoM tonnages (delivered to mill). |
|--|----|---------------------------------------------------------------------------------------------------------|

|  | 5. | Tonnages are rounded to the nearest 100 and ounces to the nearest 100. |
|--|----|------------------------------------------------------------------------|

----

| · | the new conveyor system from the secondary crushers to the new fine ore bin was commissioned in September 2016; |
|--------|-----------------------------------------------------------------------------------------------------------------|

| · | the new No.8 ball mill was installed and commissioned in October 2016, increasing the milling capacity to 90 tph, which is sufficient to mill the 650,000 tonnes per annum which will be required to produce 80,000 ounces of gold per annum in 2021 in terms of the Investment Plan; and |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | the refurbishment of the CIL tanks. |
|--------|-------------------------------------|

----

|   Classification       |   | 2014   |   |   | 2015   |   |   | 2016   |   |
|----------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Fatal                            |   |   | -      |   |   |   | 1      |   |   |   | - |   |
| Lost time injury                 |   |   | 6      |   |   |   | 8      |   |   |   | 6 |   |
| Restricted work activity         |   |   | 31     |   |   |   | 31     |   |   |   | 20 |   |
| First aid                        |   |   | 8      |   |   |   | 15     |   |   |   | 8 |   |
| Medical aid                      |   |   | 8      |   |   |   | 5      |   |   |   | 9 |   |
|                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Occupational illness             |   |   | -      |   |   |   | -      |   |   |   | - |   |
| Total                            |   |   | 53     |   |   |   | 60     |   |   |   | 43 |   |
| Incidents                        |   |   | 39     |   |   |   | 47     |   |   |   | 42 |   |
| Near misses                      |   |   | 9      |   |   |   | 14     |   |   |   | 22 |   |
| Disability Injury Frequency Rate |   |   | 0.69   |   |   |   | 0.508  |   |   |   | 0.300 |   |
| Total Injury Frequency Rate      |   |   | 3.415  |   |   |   | 3.403  |   |   |   | 2.198 |   |
| Man-hours worked (thousands)     |   |   | 3,201  |   |   |   | 3,532  |   |   |   | 3,975 |   |

| Payments to the Community and the Zimbabwe Government(US$’000’s)  |
|------------------------------------------------------------------------------------|
|                                                                               |   | Community and Social Investment | Payments to the Community Trust | Payments to Zimbabwe Government | Total |
| Year 2014                                                                          |   | 35 | - | 12,319 | 12,354 |
| Year 2015                                                                          |   | 58 | - | 7,376 | 7,434 |
| Year 2016                                                                          |   | 12 | - | 10,637 | 10,649 |

| Approximate production from proven and probable mineral reserves above 750m (per LOM Plan) |
|--------------------------------------------------------------------------------------------|
|                                                                                       | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 |
| Tonnes milled (‘000)                                                                 | 430 | 460 | 430 | 380 | 230 | 100 | 50 |
| Gold production (koz)                                                                      | 42 | 45 | 43 | 39 | 23 | 10 | 6 |

| Possible production from inferred mineral resources below 750m (as per PEA) |
|-----------------------------------------------------------------------------|
|                                                                        | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 |
| Tonnes milled (‘000)                                                  | 0 | 35 | 160 | 215 | 390 | 550 | 600 |
| Gold production (koz)                                                       | 0 | 4-5 | 20-22 | 27-30 | 46-50 | 63-67 | 70-75 |

----

| C. | Organizational Structure |
|----|--------------------------|

| Subsidiaries of the Company                       | Country of Incorporation | Percentage held by Company |
|---------------------------------------------------|--------------------------|----------------------------|
| Caledonia Mining South Africa Proprietary Limited | South Africa             | (1)100                     |
| Blanket Mine (1983) (Private) Limited(2)          | Zimbabwe                 | 49                         |

----

| D. | Property, Plant and Equipment |
|----|-------------------------------|

| A. | Operating Results |
|----|-------------------|

| · | revenue, which is influenced by; |
|--------|----------------------------------|

| o | the price of gold, which fluctuates in terms of the realised USD gold price obtained; and |
|---|-------------------------------------------------------------------------------------------|

| o | our production tonnages and gold content thereof, impacting on the amount of gold we produce at our operation; |
|---|----------------------------------------------------------------------------------------------------------------|

| · | our cost of producing gold; |
|--------|-----------------------------|

| · | capital expenditure; and |
|--------|--------------------------|

| · | other significant matters affecting profitability. |
|--------|----------------------------------------------------|

----

| $’000                           | 2014   | 2015   | 2016   |
|---------------------------------------|--------|--------|--------|
| Revenue (IFRS)                        | 53,513 | 48,977 | 61,992 |
| Revenue from silver sales             | (61)   | (48)   | (62)   |
| Revenue from gold sales               | 53,452 | 48,929 | 61,930 |
| Gold ounces sold                      | 42,927 | 42,943 | 50,269 |
| Average realized gold price per ounce | 1,245  | 1,139  | 1,232  |

| Blanket Mine Production Statistics |
|------------------------------------|
|                               | Year | Tonnes Milled(t) | Gold Head (Feed) Grade (g/t Au) | Gold Recovery(%) | Gold Produced(oz.) |
| Quarter 1                          | 2014 | 92,846 | 3.67 | 93.6 | 10,241 |
| Quarter 2                          | 2014 | 99,229 | 3.74 | 94.1 | 11,223 |
| Quarter 3                          | 2014 | 98,575 | 3.34 | 93.4 |   9,890 |
| Quarter 4                          | 2014 | 100,085 | 3.47 | 93.2 | 10,417 |
| Year                               | 2014 | 390,735 | 3.55 | 93.4 | 41,771 |
| Quarter 1                          | 2015 | 104,755 | 3.19 | 92.7 | 9,960 |
| Quarter 2                          | 2015 | 103,551 | 3.35 | 93.3 | 10,401 |
| Quarter 3                          | 2015 | 116,694 | 3.14 | 92.7 |  10,927 |
| Quarter 4                          | 2015 | 115,079 | 3.34 | 93.1 | 11,515 |
| Year                               | 2015 | 440,079 | 3.25 | 93.0 | 42,804 |
| Quarter 1                          | 2016 | 114,527 | 3.16 | 93.0 | 10,822 |
| Quarter 2                          | 2016 | 120,590 | 3.47 | 93.1 | 12,510 |
| Quarter 3                          | 2016 | 133,375 | 3.36 | 93.2 | 13,428 |
| Quarter 4                          | 2016 | 142,169 | 3.21 | 92.8 | 13,591 |
| Year                               | 2016 | 510,661 | 3.30 | 93.0 | 50,351 |
| January                            | 2017 | 36,896 | 3.44 | 93.7 | 3,899 |
| February                           | 2017 | 39,411 | 3.46 | 93.7 | 4,114 |

| $ ‘000                     | 2014   |  2015 |  2016 |   |
|----------------------------------|--------|------------|------------|--------|
| Salaries and wages               | 10,014 | 11,908     | 12,206     |   |
| Consumable materials             | 14,565 | 14,479     | 16,291     |   |
| Site restoration                 | 29     | -          | 32         |   |
| Exploration cost not capitalised | 343    | 380        | 408        |   |
| Safety                           | 473    | 551        | 221        |   |
| On mine administration           | 2,484  | 2,701      | 2,898      |   |
| Other                            | -      | -          | 30         |   |
| Total                            | 27,908 | 30,019     | 32,086     |   |

----

| i. | On-mine cost per ounce, which shows the on-mine costs of producing an ounce of gold and includes direct labour, electricity consumables and other costs that are incurred at the mine including insurance, security and on-mine administration; |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ii. | All-in sustaining cost per ounce, which shows the on-mine cost per ounce plus royalty paid, share-based payment expenses, additional costs incurred outside the mine (i.e. at offices in Harare, Johannesburg and St. Helier), costs associated with maintaining the operating infrastructure and resource base that are required to maintain production at the current levels (sustaining capital investment) less silver by-product revenue; and |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| iii. | All-in cost per ounce, which shows the all-in sustaining cost per ounce plus the additional costs associated with activities that are undertaken with a view to increasing production (expansion capital investment). |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                             |   |                     |   |   |   |   |   |   |   |
|--------------------------------------------------|--------|--------------------------|--------|--------|--------|--------|--------|--------|--------|
| ($’000’s unless otherwise indicated) |   | 12 Months to December 31 |   |
|                                             |   | 2014                     |   |   | 2015   |   |   | 2016   |   |
| Production cost (IFRS)                           |   |                     | 27,908 |   |   |   | 30,019 |   |   |   | 32,086 |   |
| Less site restoration costs                      |   |                     | (29    | )      |   |   | -      |   |   |   | (32 | ) |
| Less exploration cost                            |   |                     | (343   | )      |   |   | (380   | )      |   |   | (408 | ) |
| Less safety costs                                |   |                     | (473   | )      |   |   | (551   | )      |   |   | (221 | ) |
| Other cost                                       |   |                     | 906    |   |   |   | 1,011  |   |   |   | 535 |   |
| On-mine production cost                          |   |                     | 27,979 |   |   |   | 30,099 |   |   |   | 31,960 |   |
|                                             |   |                     |   |   |   |   |   |   |   |   |   |   |
| Gold sales (oz.)                                 |   |                     | 42,927 |   |   |   | 42,943 |   |   |   | 50,269 |   |
| On-mine cost per ounce ($/oz.)                   |   |                     | 652    |   |   |   | 701    |   |   |   | 636 |   |
|                                             |   |                     |   |   |   |   |   |   |   |   |   |   |
| Royalty                                          |   |                     | 3,521  |   |   |   | 2,455  |   |   |   | 2,923 |   |
| Export incentive                                 |   |                     | -      |   |   |   | -      |   |   |   | (1,104 | ) |
| Exploration, remediation and permitting cost     |   |                     | 305    |   |   |   | 399    |   |   |   | 311 |   |
| Sustaining capital development                   |   |                     | 2,348  |   |   |   | 4,707  |   |   |   | 3,792 |   |
| Administrative expenses                          |   |                     | 7,387  |   |   |   | 7,622  |   |   |   | 7,263 |   |
| Less Zambian expenses                            |   |                     | (896   | )      |   |   | (716   | )      |   |   | (17 | ) |
| Silver by-product credit                         |   |                     | (61    | )      |   |   | (48    | )      |   |   | (62 | ) |
| Share-based payment expense                      |   |                     | -      |   |   |   | 24     |   |   |   | 788 |   |
| Other                                            |   |                     | 54     |   |   |   | (2     | )      |   |   |   |   |
| All in sustaining cost                           |   |                     | 40,637 |   |   |   | 44,540 |   |   |   | 45,854 |   |
|                                             |   |                     |   |   |   |   |   |   |   |   |   |   |
| Gold sales (oz.)                                 |   |                     | 42,927 |   |   |   | 42,943 |   |   |   | 50,269 |   |
| All in sustaining cost per ounce ($/oz.)         |   |                     | 947    |   |   |   | 1,037  |   |   |   | 912 |   |
|                                             |   |                     |   |   |   |   |   |   |   |   |   |   |
| Permitting and exploration expenses              |   |                     | 161    |   |   |   | 138    |   |   |   | 182 |   |
| Non-sustaining capital expenses                  |   |                     | 3,833  |   |   |   | 13,486 |   |   |   | 15,367 |   |
| Total all in cost                                |   |                     | 44,631 |   |   |   | 58,164 |   |   |   | 61,402 |   |
|                                             |   |                     |   |   |   |   |   |   |   |   |   |   |
| Gold sales (oz.)                                 |   |                     | 42,927 |   |   |   | 42,943 |   |   |   | 50,269 |   |
| All in cost per ounce ($/oz.)                    |   |                     | 1,040  |   |   |   | 1,354  |   |   |   | 1,221 |   |
|                                             |   |                     |   |   |   |   |   |   |   |   |   |   |

----

| · | Central shaft |
|--------|---------------|

| · | Fine ore bin |
|--------|--------------|

| · | Ball mill No. 8 |
|--------|-----------------|

| · | Decline 1&2 |
|--------|-----------------|

| · | Deep drilling |
|--------|---------------|

| · | Sustaining capital expenditure |
|--------|--------------------------------|

----

----

| Reconciliation of Adjusted Earnings per Share (“EPS”) to IFRS Profit Attributable to Owners of the Company |   |
|------------------------------------------------------------------------------------------------------------------------|--------|
| ($’000’s unless otherwise indicated)                                                                       |   | 12 Months to December 31 |   |
|                                                                                                                   |   | 2014 |   |   | 2015 |   |   | 2016 |   |
| Profit for the year                                                                                                    |   |   | 5,946 |   |   |   | 5,590 |   |   |   | 11,085 |   |
| Non-controlling interest share (“NCI”)                                                                     |   |   | (1,511 | ) |   |   | (811 | ) |   |   | (2,559 | ) |
| Profit attributable to owners of the Company (IFRS)                                                                    |   |   | 4,435 |   |   |   | 4,779 |   |   |   | 8,526 |   |
|                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| Add back/(deduct)                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
| IAS 19 adjustment                                                                                                      |   |   | 48 |   |   |   | 100 |   |   |   | 80 |   |
| Deferred tax                                                                                                           |   |   | 706 |   |   |   | 2,567 |   |   |   | 4,611 |   |
| Sale of Blanket Mine treasury bills                                                                                    |   |   | - |   |   |   | - |   |   |   | (3,202 | ) |
| Other income                                                                                                           |   |   | - |   |   |   | - |   |   |   | (226 | ) |
| Foreign exchange (gain)/loss                                                                                           |   |   | (1,065 | ) |   |   | (2,850 | ) |   |   | 505 |   |
| Zambian expenses                                                                                                       |   |   | 896 |   |   |   | 716 |   |   |   | 17 |   |
| Prior year over accrual of GMS UK tax                                                                                  |   |   | - |   |   |   | (871 | ) |   |   | - |   |
| Asset impairment                                                                                                       |   |   | 178 |   |   |   | - |   |   |   | - |   |
| Prior year adjustment in respect of South African tax                                                                  |   |   | 306 |   |   |   | (765 | ) |   |   | - |   |
| South African tax and penalties                                                                                        |   |   | - |   |   |   | 744 |   |   |   | - |   |
| Total before tax and NCI                                                                                               |   |   | 5,504 |   |   |   | 4,420 |   |   |   | 10,311 |   |
|                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| Reversal of tax effect                                                                                                 |   |   | 243 |   |   |   | 660 |   |   |   | 891 |   |
| NCI effect                                                                                                             |   |   | (151 | ) |   |   | (444 | ) |   |   | 111 |   |
| Adjusted profit                                                                                                        |   |   | 5,596 |   |   |   | 4,636 |   |   |   | 11,284 |   |
|                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average shares in issue (m)                                                                                   |   |   | 52.117 |   |   |   | 52.095 |   |   |   | 52.787 |   |
| Adjusted EPS (cents)                                                                                                   |   |   | 10.7 |   |   |   | 8.8 |   |   |   | 21.4 |   |

| B. | Liquidity and Capital Resources |
|----|---------------------------------|

| $’000                                                      |   | 2014   | 2015    | 2016   |
|------------------------------------------------------------------|--------|--------|---------|--------|
|                                                             |   |   |    |   |
| Bank balances                                                    |   | 23,082 | 12,568  | 14,335 |
| Cash and cash equivalents in the statement of financial position |   | 23,082 | 12,568  | 14,335 |
| Bank overdraft used for cash management purposes                 |   | -      | (1,688) | -      |
| Cash and cash equivalents in the statement of cash flows         |   | 23,082 | 10,880  | 14,335 |

----

| $’000                 | 2014   | 2015    | 2016   |
|-----------------------------|--------|---------|--------|
| Jersey, Channel Islands     | -      | -       | 2,844  |
| United Kingdom              | 9,822  | 2,922   | 2,038  |
| South Africa                | 10,566 | 3,979   | 690    |
| Canada                      | 833    | 5,519   | 150    |
| Zimbabwe (Net of overdraft) | 1,835  | (1,542) | 8,613  |
| Zambia                      | 26     | 2       | -      |
| Total                       | 23,082 | 10,880  | 14,335 |

----

| C. | Research and development, patents and licences |
|----|------------------------------------------------|

| D. | Trend Information |
|----|-------------------|

| E. | Off-Balance Sheet Arrangements |
|----|--------------------------------|

| F. | Tabular Disclosure of Contractual Obligations |
|----|-----------------------------------------------|

| $’000                     | Payments due by Period |
|---------------------------------|------------------------|
|                            | Within 1Year           | 1-3 years | 3-5 years | More than5 years | Total |
| Trade and other payables        | 8,077                  | - | - | - | 8,077 |
| Term loan facility              | 1,410                  | 1,577 | - | - | 2,987 |
| Provisions                      | -                      | - | - | 3,456 | 3,456 |
| Capital expenditure commitments | 2,122                  | - | - | - | 2,122 |

| A. | Directors and Senior Management |
|----|---------------------------------|

----

| Name, Office Held and Municipality of Residence                                                                               | Principal Occupations During Past Five Years                                                                                                                                           | Positions held Since                                                                                       | Number of Shares Beneficially Owned, Controlled or Directed as of March 30, 2017 |
|-------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------|
| James JohnstoneDirectorGibsons, British Columbia, Canada                                                                      | Retired.  Formerly Chief Operating Officer of the Company and Director of several of its subsidiary companies.                                                                    | 1997                                                                                                       | 40,000                                                                           |
| Steven Curtis Chief Executive Officer  & Director Johannesburg, South Africa                                         | Previous VP Finance, Chief Financial Officer from March 2016 and Director of the Company and Director of certain of its subsidiary companies.                                          | Director since 2008Chief Executive Officer since 2014                                                      | 420,000                                                                          |
| Leigh Wilson DirectorStuart, Florida, USA                                                                                     | Chairman of the Victory PortfoliosWinston Maritime LLCFundVantage TrustStella and Hack Wilson Family Foundation                                                                   | 2012                                                                                                       | 215,000                                                                          |
| John Kelly DirectorNew Canaan, Connecticut                                                                                    | Partner at Endgate Commodities LLC, Member of CrossRoad LLC, Director of Liquidnet Europe Ltd, Officer of Liquidnet Holdings, Inc.                                           | 2012                                                                                                       | 57,465                                                                           |
| Johan HoltzhausenDirector,Cape Town, South Africa                                                                             | Business consultant and Independent Director of DRDGOLD Limited.                                                                                                                  | 2013                                                                                                       | 90,000                                                                           |
| Dana RoetsChief Operating OfficerJohannesburg, South Africa                                                                   | VP and Head of Operations at Kloof Gold Mine. More recently, Dana was the COO at Great Basin Gold which had gold mining operations in the United States of America and South Africa.   | 2013                                                                                                       | Nil                                                                              |
| Mark Learmonth Chief Financial Officer & Director              Jersey, Channel Islands | Vice-President of the Company focused on financial reporting, investor and shareholder relations and corporate development. Former Vice-President Business Development, of the Company | Chief Financial Officer since 2014 and Director since 2015 Vice-President, Business Development since 2008 | 324,750                                                                          |
| John McGloinDirectorBishops Stortford, United Kingdom                                                                         | Previous Executive Chairman and Chief Executive Officer of Amara Mining Plc. Current non-executive director of Perseus Mining Limited                                                  | 2016                                                                                                       | Nil                                                                              |
| Maurice MasonVP Corporate Development and Investor RelationsLondon, England                                                   | Previous Director at Equity Research, for Stifel Nicolaus Europe Ltd                                                                                                                   | 2016                                                                                                       | 35,000                                                                           |
| Adam ChesterGeneral Counsel, Company Secretary and Head of Risk and ComplianceJersey, Channel Islands                         | Solicitor of the Supreme Court of England and Wales. Partner at Walkers and advocate of the Royal Court of Jersey.                                                                     | 2017                                                                                                       | Nil                                                                              |

----

| Mr. Leigh Alan Wilson has an international business and financial services background having served in senior executive and management positions with Union Bank of Switzerland (Securities) Ltd. in London and with the Paribas Group in Paris and New York where he served as CEO of Paribas North America between 1984 and 1990. Mr. Wilson has served on the Victory Fund Board since 1993. He currently serves as Independent Chairman of the Board of Trustees of the Victory fund and of the Munder Fund. The Victory and Munder Funds have assets aggregating to US $40 billion.Mr. Wilson is also the Chief Executive Officer of New Century Home Health Care Inc., a role he has held since 1995. In March 2006, Mr. Wilson received the Mutual Fund Trustee of the Year Award from Institutional Investor Magazine. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

| B. | Compensation |
|----|--------------|

| Name and principal position                                        | Year               | Salary                      | Long term incentive plan (2) | Annual incentive plans | All othercompensation         | Total compensation          |
|--------------------------------------------------------------------|--------------------|-----------------------------|------------------------------|------------------------|-------------------------------|-----------------------------|
| (a)                                                                | (b)                | (c)                         | (d)                          | (e)                    | (h)                           | (i)                         |
| Steven CurtisChief Executive Officer                          | 201620152014  | 428,637428,637410,085       | 214,282--               | --60,012               | 42,867(1)180,25540,758        | 685,786608,892510,855       |
| Dana RoetsChief Operating Officer                                  | 201620152014  | 418,182418,182400,083  | 140,107--               | --60,012          | 41,818(1)138,000-        | 600,107556,182460,095  |
| Mark LearmonthChief Financial Officer                              | 201620152014  | 410,000360,000275,057  | 122,410--               | --60,012          | 41,000(1)154,000-        | 573,410514,000335,069  |
| Caxton MangeziGeneral Manager and Director of the Blanket Mine     | 201620152014  | 348,400348,400335,069  | 115,383--               | --27,922          | 205,226(1)190,00210,002  | 669,009538,402372,993  |
| Maurice MasonVP Corporate Development and Investor Relations  | 201620152014       | 96,735--                    | 25,610--                     | ---                    | ---                           | 122,345--                   |

| Key management member | Vesting date     | RSU’s | PSU’s |
|-----------------------|------------------|-------------|-------------|
| Steve Curtis          | January 11, 2019 | 132,146     | 503,226     |
| Dana Roets            | January 11, 2019 | 86,403      | 329,032     |
| Mark Learmonth        | January 11, 2019 | 28,801      | 109,677     |
| March 23, 2019        | 56,565           | 219,355     |
| Caxton Mangezi        | January 11,2019  | 71,156      | 270,968     |
| Maurice Mason         | August 6, 2019   | 26,103      | 102,353     |
| Total                 |             | 401,174     | 1,534,611   |

----

| C. | Board Practices |
|----|-----------------|

| Audit         | Compensation  | Governance  | Nomination    | Disclosure    |
|---------------|---------------|-------------|---------------|---------------|
| J Holtzhausen | L Wilson      | L Wilson    | L Wilson      | M Learmonth   |
| J McGloin     | J Kelly       | J Kelly     | J Holtzhausen | S R Curtis    |
| J Kelly       | J Holtzhausen | J Johnstone | J Johnstone   | J Holtzhausen |
|          | J Johnstone   |        | J McGloin     | L Wilson      |
|          |          |        | S Curtis      | J Kelly       |
|          |          |        |          | D Roets       |
| Technical     | Strategic     |        |          | M Mason       |
| J Johnstone   | L Wilson      |        |          | A Chester     |
| J Holtzhausen | J Kelly       |        |          |          |
| D Roets       | S R Curtis    |        |          |          |
| J McGloin     | M Learmonth   |        |          |          |
| S Curtis      | D Roets       |        |          |          |
|          | J McGloin     |        |          |          |
|          | J Holtzhausen |        |          |          |
|          | J Johnstone   |        |          |          |
|          | M Mason       |        |          |          |
|          |          |        |          |          |

| D. | Employees |
|----|-----------|

| Employee Location                                           | 2012   | 2013   | 2014   | 2015   | 2016   |
|-------------------------------------------------------------|--------|--------|--------|--------|--------|
| Total Employees                                             |   |   |   |   |   |
| London, United Kingdom                                      | -      | -      | -      | -      | 1      |
| Jersey, Channel Islands                                     | -      | -      | -      | -      | 2      |
| South Africa (African Office)                               | 10     | 13     | 14     | 14     | 13     |
| Zimbabwe – approx.(i)                                 | 860    | 1,028  | 1,007  | 1,157  | 1,282  |
| South Africa (Mine Security and Operations and Exploration) | 1      | 1      | 1      | 1      | 1      |
| Zambia (Head Office and Security)                           | 8      | 8      | 6      | -      | -      |
| Total Employees at all Locations                            | 879    | 1,050  | 1,028  | 1,172  | 1,299  |
|                                                        |   |   |   |   |   |

----

| Management and Administration:            |   |   |   |   |   |
|-------------------------------------------|--------|--------|--------|--------|--------|
| Employee Locations:                       | 2012   | 2013   | 2014   | 2015   | 2016   |
| London, United Kingdom                    | -      | -      | -      | -      | 1      |
| Jersey, Channel Islands                   | -      | -      | -      | -      | 2      |
| Zimbabwe                                  | 32     | 32     | 36     | 37     | 42     |
| South Africa (African Office)             | 7      | 12     | 12     | 12     | 13     |
| South Africa (Exploration and Operations) | 2      | 1      | 1      | 1      | 1      |
| Zambia (Head Office and Security)         | 4      | 4      | 4      | -      | -      |
| Total Management and Administration       | 45     | 49     | 53     | 50     | 59     |

| E. | Share Ownership |
|----|-----------------|

|          |   | Number of shares |      |   | Percentage share holding |   |
|---------------|--------|------------------|-----------|--------|--------------------------|--------|
| L Wilson      |   |             | 215,000   |   |                     |   | 0.41 | % |
| J Johnstone   |   |             | 40,000    |   |                     |   | 0.08 | % |
| S Curtis      |   |             | 420,000   |   |                     |   | 0.80 | % |
| M Learmonth   |   |             | 324,750   |   |                     |   | 0.62 | % |
| J. Kelly      |   |             | 57,465    |   |                     |   | 0.11 | % |
| D Roets       |   | Nil              |      |   |                     | -      |   |
| J Holtzhausen |   |             | 90,000    |   |                     |   | 0.17 | % |
| J McGloin     |   | Nil              |      |   |                     | -      |   |
| M Mason       |   |             | 35,000    |   |                     |   | 0.07 | % |
| Total         |   |             | 1,182,215 |   |                     |   | 2.26 | % |

----

| (b) | Share purchase options outstanding as of March 30, 2017: |
|-----|----------------------------------------------------------|

| Name                   | Exercise Price CAD | Expiry Date        | Number of Options |
|------------------------|--------------------|--------------------|-------------------|
| J Johnstone            | 0.90               | September 10, 2018 | 28,000            |
| A Lawson               | 0.90               | September 10, 2018 | 3,000             |
| T Pearton              | 0.90               | September 10, 2018 | 25,000            |
| C Mangezi              | 0.90               | September 10, 2018 | 100,000           |
| P Dell                 | 0.90               | September 10, 2018 | 3,000             |
| P Human                | 0.90               | September 10, 2018 | 5,000             |
| S Smith                | 0.90               | September 10, 2018 | 2,400             |
| J Kelly                | 0.90               | September 10, 2018 | 90,000            |
| R Patricio             | 0.90               | September 10, 2018 | 90,000            |
| DSA Corporate Services | 0.80               | October 7, 2020    | 25,000            |
| J McGloin              | 2.30               | October 13, 2021   | 90,000            |
| TOTAL                  |               |               | 461,400           |

| A. | Major Shareholders |
|----|--------------------|

|  Geographic Area |   | Number of Shares Held |       |   | Percentage of Issued Shares |   |
|-----------------------|--------|-----------------------|------------|--------|-----------------------------|--------|
|  USA             |   |                  | 20,469,964 |   |                        |   | 38.77 | % |
| Canada                |   |                  | 16,092,913 |   |                        |   | 30.49 | % |
| United Kingdom        |   |                  | 15,672,353 |   |                        |   | 29.69 | % |
| Other                 |   |                  | 552,236    |   |                        |   | 1.05 | % |
|                  |   |                  | 52,787,466 |   |                        |   | 100 | % |

| B. | Related Party Transactions |
|----|----------------------------|

----

| $’000                         | 2014  | 2015  | 2016  |
|-------------------------------------|-------|-------|-------|
| Key management salaries and bonuses | 1,781 | 2,452 | 2,033 |
| Share-based payment awards (1)      | -     | 24    | 788   |
|                                | 1,781 | 2,476 | 2,821 |

| · | the acquisition of more than 50% of the shares; or |
|--------|----------------------------------------------------|

| · | the acquisition of the right to exercise the majority of the voting rights of the shares; or |
|--------|----------------------------------------------------------------------------------------------|

| · | the acquisition of the right to appoint the majority of the board of directors; or |
|--------|------------------------------------------------------------------------------------|

| · | the acquisition of more than 50% of the assets of Caledonia. |
|--------|--------------------------------------------------------------|

| C. | Interests of Experts and Counsel |
|----|----------------------------------|

| A. | Consolidated Statements and Other Financial Information |
|----|---------------------------------------------------------|

----

| B. | Significant Changes |
|----|---------------------|

| A. | Offering and Listing Details |
|----|------------------------------|

|                                   | AIM (Pound Sterling) |
|----------------------------------------|----------------------|
| Last Six Months                        | High                 | Low |
| March 2017 (up to 13 March)            | 1.14                 | 1.12 |
| February 2017                          | 1.18                 | 1.12 |
| January 2017                           | 1.18                 | 0.83 |
| December 2016                          | 0.88                 | 0.77 |
| November 2016                          | 1.33                 | 0.84 |
| October 2016                           | 1.43                 | 1.25 |
| September 2016                         | 1.37                 | 1.00 |
|                                   |                 |   |
| 2016                                   | High                 | Low |
| Fourth Quarter ended December 31, 2016 | 1.43                 | 0.77 |
| Third Quarter ended September 31, 2016 | 1.37                 | 0.75 |
| Second Quarter ended June 30, 2016     | 0.74                 | 0.57 |
| First Quarter ended March 31, 2016     | 0.59                 | 0.38 |
|                                   |                 |   |
| 2015                                   | High                 | Low |
| Fourth Quarter ended December 31, 2015 | 0.44                 | 0.37 |
| Third Quarter ended September 31, 2015 | 0.49                 | 0.36 |
| Second Quarter ended June 30, 2015     | 0.48                 | 0.34 |
| First Quarter ended March 31, 2015     | 0.38                 | 0.33 |
|                                   |                 |   |
| 2014                                   | High                 | Low |
| Fourth Quarter ended December 31, 2014 | 0.49                 | 0.30 |
| Third Quarter ended September 31, 2014 | 0.50                 | 0.42 |
| Second Quarter ended June 30, 2014     | 0.42                 | 0.35 |
| First Quarter ended March 31, 2014     | 0.38                 | 0.27 |
|                                   |                 |   |
| 2013                                   | High                 | Low |
| Fourth Quarter ended December 31, 2013 | 0.38                 | 0.34 |
| Third Quarter ended September 31, 2013 | 0.47                 | 0.38 |
| Second Quarter ended June 30, 2013     | 0.70                 | 0.47 |
| First Quarter ended March 31, 2013     | 0.66                 | 0.45 |
|                                   |                 |   |
| Last Five Fiscal Years                 | High                 | Low |
| 2016                                   | 1.43                 | 0.38 |
| 2015                                   | 0.49                 | 0.33 |
| 2014                                   | 0.50                 | 0.27 |
| 2013                                   | 0.70                 | 0.34 |
| 2012                                   | 0.63                 | 0.33 |

----

|                                   | TSX (Canadian Dollars) |
|----------------------------------------|------------------------|
| Last Six Months                        | High                   | Low |
| March 2017 (up to 14 March)            | 1.86                   | 1.80 |
| February 2017                          | 1.98                   | 1.77 |
| January 2017                           | 1.89                   | 1.54 |
| December 2016                          | 1.45                   | 1.28 |
| November 2016                          | 2.23                   | 1.35 |
| October 2016                           | 2.39                   | 2.09 |
| September 2016                         | 2.35                   | 1.71 |
|                                   |                   |   |
| 2016                                   | High                   | Low |
| Fourth Quarter ended December 31, 2016 | 2.39                   | 1.28 |
| Third Quarter ended September 31, 2016 | 2.35                   | 1.30 |
| Second Quarter ended June 30, 2016     | 1.40                   | 1.05 |
| First Quarter ended March 31, 2016     | 1.12                   | 0.79 |
|                                   |                   |   |
| 2015                                   | High                   | Low |
| Fourth Quarter ended December 31, 2015 | 0.84                   | 0.67 |
| Third Quarter ended September 31, 2015 | 0.96                   | 0.70 |
| Second Quarter ended June 30, 2015     | 0.95                   | 0.66 |
| First Quarter ended March 31, 2015     | 0.75                   | 0.62 |
|                                   |                   |   |
| 2014                                   | High                   | Low |
| Fourth Quarter ended December 31, 2014 | 0.81                   | 0.77 |
| Third Quarter ended September 31, 2014 | 1.10                   | 1.07 |
| Second Quarter ended June 30, 2014     | 0.87                   | 0.85 |
| First Quarter ended March 31, 2014     | 0.80                   | 0.77 |
|                                   |                   |   |
| Last Five Fiscal Years                 | High                   | Low |
| 2016                                   | 2.39                   | 0.79 |
| 2015                                   | 0.96                   | 0.62 |
| 2014                                   | 0.90                   | 0.86 |
| 2013                                   | 1.40                   | 0.67 |
| 2012                                   | 1.25                   | 0.60 |

----

|                                   | OTCQX (USD) |
|----------------------------------------|-------------|
| Last Six Months                        | High        | Low |
| March 2017 (up to 13 March)            | 1.37        | 1.33 |
| February 2017                          | 1.53        | 1.36 |
| January 2017                           | 1.45        | 1.16 |
| December 2016                          | 1.14        | 0.96 |
| November 2016                          | 1.68        | 1.00 |
| October 2016                           | 1.82        | 1.55 |
| September 2016                         | 1.77        | 1.31 |
|                                   |        |   |
| 2016                                   | High        | Low |
| Fourth Quarter ended December 31, 2016 | 1.82        | 0.96 |
| Third Quarter ended September 31, 2016 | 1.77        | 0.98 |
| Second Quarter ended June 30, 2016     | 1.09        | 0.79 |
| First Quarter ended March 31, 2016     | 0.89        | 0.54 |
|                                   |        |   |
| 2015                                   | High        | Low |
| Fourth Quarter ended December 31, 2015 | 0.66        | 0.49 |
| Third Quarter ended September 31, 2015 | 0.76        | 0.53 |
| Second Quarter ended June 30, 2015     | 0.79        | 0.52 |
| First Quarter ended March 31, 2015     | 0.63        | 0.51 |
|                                   |        |   |
| 2014                                   | High        | Low |
| Fourth Quarter ended December 31, 2014 | 0.71        | 0.56 |
| Third Quarter ended September 31, 2014 | 1.01        | 0.98 |
| Second Quarter ended June 30, 2014     | 0.80        | 0.78 |
| First Quarter ended March 31, 2014     | 0.73        | 0.70 |
|                                   |        |   |
| Last Five Fiscal Years                 | High        | Low |
| 2016                                   | 1.82        | 0.54 |
| 2015                                   | 0.79        | 0.49 |
| 2014                                   | 0.81        | 0.78 |
| 2013                                   | 1.45        | 0.65 |
| 2012                                   | 1.25        | 0.65 |

----

| A. | Share Capital |
|----|---------------|

| B. | Articles of Association |
|----|-------------------------|

----

| C. | Material Contracts |
|----|--------------------|

| D. | Exchange Controls |
|----|-------------------|

| E. | Taxation |
|----|----------|

----

| · | an individual who is a citizen or resident of the U.S.; |
|--------|---------------------------------------------------------|

| · | a corporation (or other entity taxable as a corporation for U.S. federal income tax purposes) organized under the laws of the U.S., any state thereof or the District of Columbia; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | an estate whose income is subject to U.S. federal income taxation regardless of its source; or |
|--------|------------------------------------------------------------------------------------------------|

| · | a trust that (1) is subject to the primary supervision of a court within the U.S. and the control of one or more U.S. persons for all substantial decisions or (2) has a valid election in effect under applicable Treasury Regulations to be treated as a U.S. person. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

| F. | Dividends and Paying Agents |
|----|-----------------------------|

| G. | Statement by Experts |
|----|----------------------|

| H. | Documents on Display |
|----|----------------------|

----

| I. | Subsidiary Information |
|----|------------------------|

| A. | Currency Risk |
|----|---------------|

----

|                      |   | 2016USD‘000   |    |   | 2015USD‘000   |   |   | 2014USD‘000   |   |
|---------------------------|--------|---------------------|---------|--------|---------------------|--------|--------|---------------------|--------|
|                      |   | Functional currency |    |   | Functional currency |   |   | Functional currency |   |
|                      |   | ZAR                 |    |   | USD                 |   |   | ZAR                 |   |   | CAD |   |   | ZAR |   |   | CAD |   |
| Cash and cash equivalents |   |                | 457     |   |                |   | 265    |                |   |   | 3,874 |   |   |   | 5,483 |   |   |   | 10,514 |   |   |   | 553 |   |
| Trade and other payables  |   |                | -       |   |                |   | 43     |                |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Intercompany balances*    |   |                | (30,552 | )      |                |   | (1,514 | )                   |   |   | (27,650 | ) |   |   | 44,390 |   |   |   | (30,320 | ) |   |   | 48,484 |   |
|                      |   |                | (30,095 | )      |                |   | (1,206 | )                   |   |   | (23,776 | ) |   |   | 49,873 |   |   |   | (19,806 | ) |   |   | 49,037 |   |

|                      |   | 2016USD‘000   |   |   | 2015USD’000   |   |   | 2014USD’000   |   |
|---------------------------|--------|---------------------|--------|--------|---------------------|--------|--------|---------------------|--------|
|                      |   | Functional currency |   |   | Functional currency |   |   | Functional currency |   |
|                      |   | ZAR                 |   |   | USD                 |   |   | ZAR                 |   |   | CAD |   |   | ZAR |   |   | CAD |   |
| Cash and cash equivalents |   |                | 23     |   |                |   | 13     |                |   |   | 194 |   |   |   | 274 |   |   |   | 526 |   |   |   | 28 |   |
| Trade and other payables  |   |                |   |   |                |   | 2      |                |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Intercompany balances*    |   |                | (1,527 | )      |                |   | (88    | )                   |   |   | (1,382 | ) |   |   | 2,219 |   |   |   | (1,516 | ) |   |   | 2,424 |   |
|                      |   |                |   |   |                |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| B. | Interest Rate Risk |
|----|--------------------|

|                      | 2016    | 2015    | 2014   |
|---------------------------|---------|---------|--------|
| Term loan                 | (2,987) | -       | -      |
| Cash and cash equivalents | 14,335  | 12,568  | 23,082 |
| Overdraft                 | -       | (1,688) | -      |

|                         | 2016   | 2015   | 2014   |
|------------------------------|--------|--------|--------|
|                         |   |   |   |
| Increase in 100 basis points | 30     | 17     | 3      |
| Decrease in 100 basis points | (30)   | (17)   | (3)    |
|                         |   |   |   |
|                         |   |   |   |

----

| C. | Concentration of Credit Risk |
|----|------------------------------|

| D. | Liquidity Risk |
|----|----------------|

| E. | Commodity Price Risk |
|----|----------------------|

----

----

|                       |        | 2016(1) |         |   | 2015(1) |   |    | 2014(1) |        |
|----------------------------|--------|---------|---------|--------|---------|--------|---------|---------|--------|
| Audit fees                 |   |    | 334,996 |   |    |   | 181,652 |    |   |   | 276,824 |   |
| Audit – related fees |   |    |    |   |    |   | -       |    |   |   | - |   |
| Tax fees (2)               |   |    | 18,012  |   |    |   | 181950  |    |   |   | 56,414 |   |
| All other fees             |   |    | 2,498   |   |    |   | -       |    |   |   | - |   |
| TOTAL                      |   |    | 355,506 |   |    |   | 363,602 |    |   |   | 333,238 |   |

| (1) | Prior to the start of the audit process, Caledonia’s Audit Committee receives an estimate of the costs, from its auditors and reviews such costs for their reasonableness. After their review and pre-approval of the fees, the Audit Committee recommend to the board of directors to accept the estimated audit fees given by the auditors. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Tax fees were for assistance provided regarding international tax matters relating to a possible permanent establishment tax exposure and a tax transfer pricing review. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| Description                    |   | Page    |
|--------------------------------|--------|---------|
|                           |   |    |
| Financial Statements and Notes |   | F1- F58 |

| Exhibit No. | Name                                                                                                                                                                                                 |
|-------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 1.1         | Articles of Association (incorporated herein by reference to Exhibit 1.1 to the Registrant’s Annual Report on Form 20-F filed with the SEC on March 31, 2016)                                  |
| 4.1         | OEICP (revised 2015) (incorporated herein by reference to Exhibit 4.1 to the Registrant’s Annual Report on Form 20-F filed with the SEC on March 31, 2015)                                     |
| 4.2         | Employment contracts/executive employment agreements                                                                                                                                                 |
| 8.1         | List of  Caledonia Mining Corporation Plc group entities                                                                                                                                        |
| 12.1        | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                                                                                   |
| 12.2        | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                                                                                   |
| 13.1        | Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                                                                       |
| 15.1        | Independent Technical Report and PEA on the Blanket Mine(incorporated herein by reference to Exhibit 15.1 to the Registrant’s Annual Report on Form 20-F filed with the SEC on March 31, 2015) |
| 15.2        | Property and Claims Information of Blanket Mine (incorporated herein by reference to Exhibit 15.2 to the Registrant’s Annual Report on Form 20-F filed with the SEC on March 31, 2015)         |
| 15.3        | Shareholder Rights Plan (incorporated herein by reference to Exhibit 15.3 to the Registrant’s Annual Report on Form 20-F filed with the SEC on March 31, 2015)                                 |
| 15.4        | Share Subscription Agreements – Blanket Mine (incorporated herein by reference to Exhibit 15.4 to the Registrant’s Annual Report on Form 20-F filed with the SEC on March 31, 2015)      |

----

----

| For the years ended  December 31                                        |   | Notes  |   |   | 2016   |    |   | 2015   |   |    | 2014   |   |
|------------------------------------------------------------------------------|--------|--------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
|                                                                         |   |   |   |   |   |    |   |   |   |    |   |   |
| Revenue                                                                      |   |   |   |   |   | 61,992  |   |   |   | 48,977  |   |   |   | 53,513 |   |
| Less: Royalties                                                              |   |   |   |   |   | (2,923  | )      |   |   | (2,455  | )      |   |   | (3,522 | ) |
|           Production costs |   | 8      |   |   |   | (32,086 | )      |   |   | (30,019 | )      |   |   | (27,908 | ) |
|           Depreciation     |   | 13     |   |   |   | (3,491  | )      |   |   | (3,322  | )      |   |   | (3,540 | ) |
| Gross profit                                                                 |   |   |   |   |   | 23,492  |   |   |   | 13,181  |   |   |   | 18,543 |   |
| Other income                                                                 |   | 9.1    |   |   |   | 1,330   |   |   |   | 110     |   |   |   | 25 |   |
| Other expenses                                                               |   |   |   |   |   | (55     | )      |   |   | -       |   |   |   | - |   |
| Administrative expenses                                                      |   | 10     |   |   |   | (7,263  | )      |   |   | (7,622  | )      |   |   | (7,387 | ) |
| Share based payment expense                                                  |   | 21     |   |   |   | (788    | )      |   |   | (24     | )      |   |   | - |   |
| Sale of Blanket Mine treasury bills                                          |   | 9.2    |   |   |   | 3,202   |   |   |   | -       |   |   |   | - |   |
| Net foreign exchange (loss)/gain                                             |   |   |   |   |   | (505    | )      |   |   | 2,850   |   |   |   | 1,065 |   |
| Loss on settlement of hedge                                                  |   | 25     |   |   |   | (435    | )      |   |   | -       |   |   |   | - |   |
| Impairment                                                                   |   |   |   |   |   | -       |   |   |   | -       |   |   |   | (178 | ) |
| Finance income                                                               |   | 11     |   |   |   | 16      |   |   |   | 1       |   |   |   | 14 |   |
| Finance cost                                                                 |   | 11     |   |   |   | (192    | )      |   |   | (536    | )      |   |   | (154 | ) |
| Profit before tax                                                            |   |   |   |   |   | 18,802  |   |   |   | 7,960   |   |   |   | 11,928 |   |
| Tax expense                                                                  |   | 12     |   |   |   | (7,717  | )      |   |   | (2,370  | )      |   |   | (5,982 | ) |
| Profit for the year                                                          |   |   |   |   |   | 11,085  |   |   |   | 5,590   |   |   |   | 5,946 |   |
| Other comprehensive income                                                   |   |   |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Items that are or may be reclassified to profit or loss                      |   |   |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Foreign currency translation differences of foreign operations               |   |   |   |   |   | 262     |   |   |   | (3,291  | )      |   |   | (685 | ) |
| Tax on other comprehensive income                                            |   | 12     |   |   |   | -       |   |   |   | 199     |   |   |   | 111 |   |
| Total comprehensive income for the year                                      |   |   |   |   |   | 11,347  |   |   |   | 2,498   |   |   |   | 5,372 |   |
|                                                                         |   |   |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Profit attributable to:                                                      |   |   |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Owners of the Company                                                        |   |   |   |   |   | 8,526   |   |   |   | 4,779   |   |   |   | 4,435 |   |
| Non-controlling interests                                                    |   |   |   |   |   | 2,559   |   |   |   | 811     |   |   |   | 1,511 |   |
| Profit for the year                                                          |   |   |   |   |   | 11,085  |   |   |   | 5,590   |   |   |   | 5,946 |   |
| Total comprehensive income attributable to:                                  |   |   |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Owners of the Company                                                        |   |   |   |   |   | 8,788   |   |   |   | 1,687   |   |   |   | 3,861 |   |
| Non-controlling interests                                                    |   |   |   |   |   | 2,559   |   |   |   | 811     |   |   |   | 1,511 |   |
| Total comprehensive income for the year                                      |   |   |   |   |   | 11,347  |   |   |   | 2,498   |   |   |   | 5,372 |   |
|                                                                         |   |   |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Earnings per share                                                           |   |   |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Basic earnings -  per share ($)                                         |   | 19     |   |   |   | 0.16    |   |   |   | 0.09    |   |   |   | 0.08 |   |
| Diluted earnings - per share ($)                                             |   | 19     |   |   |   | 0.16    |   |   |   | 0.09    |   |   |   | 0.08 |   |

----

|                                     |   | Notes  |   |   |   |     |   |   |   |
|------------------------------------------|--------|--------|--------|--------|--------|----------|--------|--------|--------|
| As at 31 December                        |   |   |   |   | 2016   |     |   | 2015   |   |
| Assets                                   |   |   |   |   |   |     |   |   |   |
| Property, plant and equipment            |   | 13     |   |   |   | 64,873   |   |   |   | 49,218 |   |
| Deferred tax asset                       |   | 12     |   |   |   | 44       |   |   |   | 58 |   |
| Total non-current assets                 |   |   |   |   |   | 64,917   |   |   |   | 49,276 |   |
|                                     |   |   |   |   |   |     |   |   |   |   |   |
| Inventories                              |   | 14     |   |   |   | 7,222    |   |   |   | 6,091 |   |
| Prepayments                              |   |   |   |   |   | 810      |   |   |   | 667 |   |
| Trade and other receivables              |   | 15     |   |   |   | 3,425    |   |   |   | 3,839 |   |
| Income tax receivable                    |   | 12     |   |   |   | -        |   |   |   | 397 |   |
| Cash and cash equivalents                |   | 16     |   |   |   | 14,335   |   |   |   | 12,568 |   |
| Total current assets                     |   |   |   |   |   | 25,792   |   |   |   | 23,562 |   |
| Total assets                             |   |   |   |   |   | 90,709   |   |   |   | 72,838 |   |
|                                     |   |   |   |   |   |     |   |   |   |   |   |
| Equity and liabilities                   |   |   |   |   |   |     |   |   |   |   |   |
| Share capital                            |   | 17     |   |   |   | 55,002   |   |   |   | 54,569 |   |
| Reserves                                 |   | 18     |   |   |   | 142,374  |   |   |   | 141,942 |   |
| Retained loss                            |   |   |   |   |   | (141,767 | )      |   |   | (147,654 | ) |
| Equity attributable to shareholders      |   |   |   | 55,609 |   |     |   | 48,857 |   |
| Non-controlling interests                |   | 31     |   |   |   | 3,708    |   |   |   | 1,504 |   |
| Total equity                             |   |   |   |   |   | 59,317   |   |   |   | 50,361 |   |
|                                     |   |   |   |   |   |     |   |   |   |   |   |
| Liabilities                              |   |   |   |   |   |     |   |   |   |   |   |
| Provisions                               |   | 20     |   |   |   | 3,456    |   |   |   | 2,762 |   |
| Deferred tax liability                   |   | 12     |   |   |   | 15,909   |   |   |   | 11,318 |   |
| Long term portion of term loan facility  |   | 22     |   |   |   | 1,577    |   |   |   | - |   |
| Cash settled share based payments        |   | 21.2   |   |   |   | 618      |   |   |   | - |   |
| Total non-current liabilities            |   |   |   |   |   | 21,560   |   |   |   | 14,080 |   |
|                                     |   |   |   |   |   |     |   |   |   |   |   |
| Short term portion of term loan facility |   | 22     |   |   |   | 1,410    |   |   |   | - |   |
| Trade and other payables                 |   | 23     |   |   |   | 8,077    |   |   |   | 6,656 |   |
| Income tax payable                       |   | 12     |   |   |   | 345      |   |   |   | 53 |   |
| Bank overdraft                           |   | 16     |   |   |   | -        |   |   |   | 1,688 |   |
| Total current liabilities                |   |   |   |   |   | 9,832    |   |   |   | 8,397 |   |
| Total liabilities                        |   |   |   |   |   | 31,392   |   |   |   | 22,477 |   |
| Total equity and liabilities             |   |   |   |   |   | 90,709   |   |   |   | 72,838 |   |

----

|                                                    |   | Share capital |   |   | Foreign Currency Translation Reserve |   |   | Contributed Surplus |   |   | Share- based payment reserve |   |   | Retained Loss |   |   | Equity attributable to shareholders |   |     | Non- controlling interests (“NCI”) |   |   | Total Equity |   |
|----------------------------------------------------|--------|---------------|--------|--------|--------------------------------------|--------|--------|---------------------|--------|--------|------------------------------|--------|--------|---------------|--------|--------|-------------------------------------|--------|----------|------------------------------------------------|--------|--------|--------------|--------|
| Balance at December 31, 2013                       |   |          | 54,569 |   |                                 |   | (2,544 | )                   |   |   | 132,591                      |   |   |          | 15,847 |   |                                |   | (151,824 | )                                              |   |   | 48,639       |   |   |   | (48 | ) |   |   | 48,591 |   |
| Transactions with owners:                          |   |          |   |   |                                 |   |   |                |   |   |                         |   |   |          |   |   |                                |   |     |                                           |   |   |         |   |   |   |   |   |   |   |   |   |
| Dividends paid                                     |   |          | -      |   |                                 |   | -      |                |   |   | -                            |   |   |          | -      |   |                                |   | (2,850   | )                                              |   |   | (2,850       | )      |   |   | (770 | ) |   |   | (3,620 | ) |
| Total comprehensive income:                        |   |          |   |   |                                 |   |   |                |   |   |                         |   |   |          |   |   |                                |   |     |                                           |   |   |         |   |   |   |   |   |   |   |   |   |
| Profit for the year                                |   |          | -      |   |                                 |   | -      |                |   |   | -                            |   |   |          | -      |   |                                |   | 4,435    |                                           |   |   | 4,435        |   |   |   | 1,511 |   |   |   | 5,946 |   |
| Other comprehensive income for the year            |   |          | -      |   |                                 |   | (685   | )                   |   |   | -                            |   |   |          | -      |   |                                |   | 111      |                                           |   |   | (574         | )      |   |   |   |   |   |   | (574 | ) |
| Balance at December 31, 2014                       |   |          | 54,569 |   |                                 |   | (3,229 | )                   |   |   | 132,591                      |   |   |          | 15,847 |   |                                |   | (150,128 | )                                              |   |   | 49,650       |   |   |   | 693 |   |   |   | 50,343 |   |
| Transactions with owners:                          |   |          |   |   |                                 |   |   |                |   |   |                         |   |   |          |   |   |                                |   |     |                                           |   |   |         |   |   |   |   |   |   |   |   |   |
| Equity settled share-based payment                 |   |          | -      |   |                                 |   | -      |                |   |   | -                            |   |   |          | 24     |   |                                |   | -        |                                           |   |   | 24           |   |   |   | - |   |   |   | 24 |   |
| Dividends paid                                     |   |          | -      |   |                                 |   | -      |                |   |   | -                            |   |   |          | -      |   |                                |   | (2,504   | )                                              |   |   | (2,504       | )      |   |   | - |   |   |   | (2,504 | ) |
| Total comprehensive income:                        |   |          |   |   |                                 |   | -      |                |   |   |                         |   |   |          |   |   |                                |   |     |                                           |   |   |         |   |   |   |   |   |   |   |   |   |
| Profit for the year                                |   |          | -      |   |                                 |   | -      |                |   |   | -                            |   |   |          | -      |   |                                |   | 4,779    |                                           |   |   | 4,779        |   |   |   | 811 |   |   |   | 5,590 |   |
| Other comprehensive income for the year            |   |          | -      |   |                                 |   | (3,291 | )                   |   |   | -                            |   |   |          | -      |   |                                |   | 199      |                                           |   |   | (3,092       | )      |   |   | - |   |   |   | (3,092 | ) |
| Balance at December 31, 2015                       |   |          | 54,569 |   |                                 |   | (6,520 | )                   |   |   | 132,591                      |   |   |          | 15,871 |   |                                |   | (147,654 | )                                              |   |   | 48,857       |   |   |   | 1,504 |   |   |   | 50,361 |   |
| Transactions with owners:                          |   |          |   |   |                                 |   |   |                |   |   |                         |   |   |          |   |   |                                |   |     |                                           |   |   |         |   |   |   |   |   |   |   |   |   |
| Equity settled share-based payment                 |   |          | -      |   |                                 |   | -      |                |   |   | -                            |   |   |          | 170    |   |                                |   | -        |                                           |   |   | 170          |   |   |   | - |   |   |   | 170 |   |
| Shares issued – Option exercises (note 21.1) |   |          | 433    |   |                                 |   | -      |                |   |   | -                            |   |   |          | -      |   |                                |   | -        |                                           |   |   | 433          |   |   |   | - |   |   |   | 433 |   |
| Dividends paid                                     |   |          | -      |   |                                 |   | -      |                |   |   | -                            |   |   |          | -      |   |                                |   | (2,639   | )                                              |   |   | (2,639       | )      |   |   | (355 | ) |   |   | (2,994 | ) |
| Total comprehensive income:                        |   |          |   |   |                                 |   |   |                |   |   |                         |   |   |          |   |   |                                |   |     |                                           |   |   |         |   |   |   |   |   |   |   |   |   |
| Profit for the year                                |   |          | -      |   |                                 |   | -      |                |   |   | -                            |   |   |          | -      |   |                                |   | 8,526    |                                           |   |   | 8,526        |   |   |   | 2,559 |   |   |   | 11,085 |   |
| Other comprehensive income for the year            |   |          | -      |   |                                 |   | 262    |                |   |   | -                            |   |   |          | -      |   |                                |   | -        |                                           |   |   | 262          |   |   |   | - |   |   |   | 262 |   |
| Balance at December 31, 2016                       |   |          | 55,002 |   |                                 |   | (6,258 | )                   |   |   | 132,591                      |   |   |          | 16,041 |   |                                |   | (141,767 | )                                              |   |   | 55,609       |   |   |   | 3,708 |   |   |   | 59,317 |   |

----

|                                                 |   | Note   |   |   | 2016   |    |   | 2015   |   |    | 2014   |   |
|------------------------------------------------------|--------|--------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
|                                                 |   |   |   |   |   |    |   |   |   |    |   |   |
| Cash flows from operating activities                 |   | 24     |   |   |   | 25,671  |   |   |   | 8,823   |   |   |   | 15,584 |   |
| Interest received                                    |   |   |   |   |   | 16      |   |   |   | 1       |   |   |   | 14 |   |
| Interest paid                                        |   |   |   |   |   | (210    | )      |   |   | (493    | )      |   |   | (121 | ) |
| Tax paid                                             |   | 12     |   |   |   | (2,466  | )      |   |   | (1,462  | )      |   |   | (4,526 | ) |
| Net cash from operating activities                   |   |   |   |   |   | 23,011  |   |   |   | 6,869   |   |   |   | 10.951 |   |
|                                                 |   |   |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Cash flows from investing activities                 |   |   |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Acquisition of property, plant and equipment         |   |   |   |   |   | (19,885 | )      |   |   | (16,567 | )      |   |   | (6,150 | ) |
| Proceeds from sale of property, plant and equipment  |   |   |   |   |   | 3       |   |   |   | -       |   |   |   | - |   |
| Net cash used in investing activities                |   |   |   |   |   | (19,882 | )      |   |   | (16,567 | )      |   |   | (6,150 | ) |
|                                                 |   |   |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Cash flows from financing activities                 |   |   |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Dividends paid                                       |   |   |   |   |   | (2,994  | )      |   |   | (2,504  | )      |   |   | (3,620 | ) |
| Proceeds from term loan facility                     |   |   |   |   |   | 3,000   |   |   |   | -       |   |   |   | - |   |
| Term loan – Transaction cost                   |   |   |   |   |   | (73     | )      |   |   | -       |   |   |   | - |   |
| Proceeds from issue of share capital                 |   |   |   |   |   | 433     |   |   |   | -       |   |   |   | - |   |
| Net cash from/(used in) financing activities         |   |   |   |   |   | 366     |   |   |   | (2,504  | )      |   |   | (3,620 | ) |
|                                                 |   |   |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Net increase/(decrease) in cash and cash equivalents |   |   |   |   |   | 3,495   |   |   |   | (12,202 | )      |   |   | 1,181 |   |
| Effect of exchange rate fluctuation on cash held     |   |   |   |   |   | (40     | )      |   |   | -       |   |   |   | - |   |
| Cash and cash equivalents at beginning of year       |   |   |   |   |   | 10,880  |   |   |   | 23,082  |   |   |   | 21,901 |   |
| Net cash and cash equivalents at year end            |   | 16     |   |   |   | 14,335  |   |   |   | 10,880  |   |   |   | 23,082 |   |

----

| · | equity settled share-based payment arrangements measured at fair value on grant date; |
|--------|---------------------------------------------------------------------------------------|

| · | cash settled share-based payment arrangement measured at fair value on the grant and re-measurement dates; and |
|--------|----------------------------------------------------------------------------------------------------------------|

| · | derivative financial instruments measured at fair value. |
|--------|----------------------------------------------------------|

----

| (a) | Judgements, assumptions and estimation uncertainties |
|-----|------------------------------------------------------|

| · | Asset carrying values may be affected due to changes in the estimated cash flows; |
|--------|-----------------------------------------------------------------------------------|

| · | Depreciation and amortisation charges to profit or loss may change as these are calculated on the unit-of-production method or where useful lives of an asset change; and |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Decommissioning, site restoration and environmental provisions may change in ore reserves and resources which may affect expectations about the timing or cost of these activities. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**3**

----

| 3 | Use of estimates and judgements - (continued) |
|---|-----------------------------------------------|

----

| 3 |        Use of estimates and judgements - (continued) |
|---|-----------------------------------------------------------------------------------------|

| · | Level 1: quoted prices (unadjusted) in active markets for identical assets and liabilities. |
|--------|---------------------------------------------------------------------------------------------|

| · | Level 2: inputs other than quoted prices included in Level 1 that are observable for the assets and liabilities, either directly (i.e. as price) or indirectly (i.e. derives from prices). |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Level 3: inputs for the assets or liabilities that are not based for identical assets or observable market data (unobservable inputs). |
|--------|----------------------------------------------------------------------------------------------------------------------------------------|

| i) | Subsidiaries and structured entities |
|----|--------------------------------------|

| ii) | Loss of control |
|-----|-----------------|

| iii) | Non-controlling interests |
|------|---------------------------|

----

| (b) |        Foreign currency |
|-----|------------------------------------------------------------|

| i) | Foreign operations |
|----|--------------------|

| · | Assets and liabilities are translated using the exchange rate at period end; and |
|--------|----------------------------------------------------------------------------------|

| · | Income, expenses and cash flow items are translated using the rate that approximates the exchange rates at the dates of the transactions. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------|

| ii) | Foreign currency translation |
|-----|------------------------------|

----

**4**

| (b) |        Foreign currency |
|-----|------------------------------------------------------------|

| i) | Non-derivative financial assets |
|----|---------------------------------|

----

| ii) | Non-derivative financial liabilities |
|-----|--------------------------------------|

| iii) | Derivative financial instruments |
|------|----------------------------------|

| iv) | Offsetting |
|-----|------------|

| (e) | Property, plant and equipment |
|-----|-------------------------------|

| i) | Recognition and measurement |
|----|-----------------------------|

----

| ii) | Exploration and evaluation assets |
|-----|-----------------------------------|

| iii) | Subsequent costs |
|------|------------------|

| iv) | Depreciation |
|-----|--------------|

----

| iv) | Depreciation |
|-----|--------------|

| · | Changes in mineral reserves and resources; |
|--------|--------------------------------------------|

| · | Differences between actual commodity prices ad commodity price assumptions; |
|--------|-----------------------------------------------------------------------------|

| · | Unforeseen operational issues at mine sites; and |
|--------|--------------------------------------------------|

| · | Changes in capital, operating, mining, processing and reclamation costs, discount rates and foreign exchange rates. |
|--------|---------------------------------------------------------------------------------------------------------------------|

| · | buildings 10 to 15 years (2015: 10 to 15 years) |
|--------|-------------------------------------------------|

| · | plant and equipment 10 years (2015: 10 years) |
|--------|-----------------------------------------------|

| · | fixtures and fittings including computers 4 to 10 years (2015: 4 to 10 years) |
|--------|-------------------------------------------------------------------------------|

| · | motor vehicles 4 years (2015: 4 years) |
|--------|----------------------------------------|

| · | mine development, infrastructure and other assets in production, units-of-production method from July 1, 2016 and 11 years on the straight line method for the period January 1, 2016 to June 30, 2016 (2015: 11 years, straight line method) |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f) | Inventories |
|-----|-------------|

----

| 4 | Significant accounting policies – (continued) |
|---|-----------------------------------------------------|

| (g) | Impairment |
|-----|------------|

----

| · | The entity's right to explore in the specific area has expired or will expire in the near future and is not expected to be renewed. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------|

| · | Substantive expenditure on further E&E activities in the specific area is neither budgeted nor planned. |
|--------|-------------------------------------------------------------------------------------------------------------|

| · | The entity has not discovered commercially viable quantities of mineral resources as a result of E&E activities in the area to date and has decided to discontinue such activities in the specific area. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Even if development is likely to proceed, the entity has sufficient data indicating that the carrying amount of the asset is unlikely to be recovered in full from successful development or by sale. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (I) | Share-based payment transactions |
|-----|----------------------------------|

| (i) | Equity settled share-based payments to employees and directors |
|-----|----------------------------------------------------------------|

| (ii) | Cash settled share-based payments to employees and directors |
|------|--------------------------------------------------------------|

| (j) | Provisions |
|-----|------------|

----

| (l) | Revenue |
|-----|---------|

| (o) | Income tax |
|-----|------------|

| (i) | Current tax |
|-----|-------------|

----

| 4 |       Significant accounting policies – (continued) |
|---|-----------------------------------------------------------------------------------------|

| (ii) | Deferred tax |
|------|--------------|

| (p) | Earnings per share |
|-----|--------------------|

----

| Standard/Interpretation  | Effective date and expected adoption date*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|-------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| IAS 7                         | The amendments provide for disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities, including both changes arising from cash flow and non-cash changes. This includes providing a reconciliation between the opening and closing balances for liabilities arising from financing activities.The amendment is not expected to result in significant changesother than providing the user of the user with additional disclosure in the financial statements.                                                                                                                                                                                                                                                                                                                                                    | January 1, 2017 |
| IAS 12                        | The amendments provide additional guidance on the existence of deductible temporary differences, which depend solely on a comparison of the carrying amount of an asset and its tax base at the end of the reporting period, and is not affected by possible future changes in the carrying amount or expected manner of recovery of the asset. The amendments also provide additional guidance on the methods used to calculate future taxable profit to establish whether a deferred tax asset can be recognised. The Group has performed a preliminary assessment and expects no significant effect on the results.                                                                                                                                                                                                                                                       | January 1, 2017 |
| IFRS 15                       | This standard replaces IAS 11 Construction Contracts, IAS 18 Revenue, IFRIC 13 Customer Loyalty Programmes, IFRIC 15 Agreements for the Construction of Real Estate, IFRIC 18 Transfer of Assets from Customers and SIC-31 Revenue – Barter of Transactions Involving Advertising Services.The standard contains a single model that applies to contracts with customers and two approaches to recognising revenue: at a point in time or over time. The model features a contract-based five-step analysis of transactions to determine whether, how much and when revenue is recognised.The Group has performed a preliminary assessment and expects no significant effect on the results.                                                                                                                                                                                | January 1, 2018 |
| IFRS 9                        | On July 24, 2014, the IASB issued the final IFRS 9 Financial Instruments Standard, which replaces earlier versions of IFRS 9 and completes the IASB’s project to replace IAS 39 Financial Instruments: Recognition and Measurement. This standard is not expected to have a significant impact on the Group as measurement categories are similar to IAS 39 even though the criteria for classification into these categories are significantly different. The IFRS 9 impairment model has also been changed from an “incurred loss” model from IAS 39 to an “expected credit loss” model. The change is not expected to increase the provision for bad debts recognised in the Group because of the short gold sales collection period.The Group will adopt the standard in the first annual period beginning on orafter January 1, 2018.          | January 1, 2018 |
| Standard/Interpretation  | Effective date and expected adoption date*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| IFRS 2 (Amendments)           | The amendments cover three accounting areas:Measurement of cash-settled share-based payments –The new requirements do not change the cumulative amount of expense that is ultimately recognised, because the total consideration for a cash-settled share-based payment is still equal to the cash paid on settlement.Classification of share-based payments settled net of tax withholdings –The amendments introduce an exception stating that, for classification purposes, a share-based payment transaction with employees is accounted for as equity-settled if certain criteria are met.Accounting for a modification of a share-based payment from cash-settled to equity-settled –. The amendments clarify the approach that companies are to apply.The Group has performed a preliminary assessment and expects no significant effect on the results. | January 1, 2018 |
| IFRS 16                       | IFRS 16 was published in January 2016. It sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract, i.e. the customer (‘lessee’) and the supplier (‘lessor’). IFRS 16 replaces the previous leases Standard, IAS 17 Leases, and related Interpretations. IFRS 16 has one model for lessees which will result in almost all leases being included on the Statement of Financial position. No significant changes have been included for lessors.The Group has performed a preliminary assessment and expects no significant effect on the results.                                                                                                                                                                                                                                   | January 1, 2019 |

----

| 5 | Blanket Zimbabwe Indigenisation Transaction |
|---|---------------------------------------------|

| · | Sold a 16% interest to the National Indigenisation and Economic Empowerment Fund (“NIEEF”) for $11.74 million. |
|--------|----------------------------------------------------------------------------------------------------------------------------|

| · | Sold a 15% interest to Fremiro Investments (Private) Limited (“Fremiro”), which is owned by Indigenous Zimbabweans, for $11.01 million. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Sold a 10% interest to Blanket Employee Trust Services (Private) Limited (“BETS”) for the benefit of present and future managers and employees for $7.34 million. The shares in BETS are held by the Blanket Mine Employee Trust (“Employee Trust”) with Blanket Mine’s employees holding participation units in the Employee Trust. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | And donated a 10% ownership interest to the Gwanda Community Share Ownership Trust (“Community Trust”). In addition Blanket Mine paid a non-refundable donation of $1 million to the Community Trust. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Non-controlling interests (NCI) are recognised on the portion of shareholding upon which dividends declared by Blanket Mine accrue unconditionally to equity holders as follows: |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| - | 20% of the 16%  shareholding of NIEEF; |
|---|---------------------------------------------|

| - | 20% of the 15%  shareholding of Fremiro; and |
|---|---------------------------------------------------|

| - | 100% of the 10% shareholding of the Community Trust. |
|---|------------------------------------------------------|

----

| · | This effectively means that NCI is recognised at Blanket Mine level at 16.2% of the net assets. |
|--------|-------------------------------------------------------------------------------------------------|

| · | The remaining 80% of the shareholding of NIEEF and Fremiro is recognised as non-controlling interests to the extent that their attributable share of the net asset value of Blanket Mine exceeds the balance on the facilitation loans including interest. At December 31, 2016 the attributable net asset value did not exceed the balance on the respective loan accounts and thus no additional NCI was recognised. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | The transaction with the BETS is accounted for in accordance with IAS 19 Employee Benefits (profit sharing arrangement) as the ownership of the shares does not ultimately pass to the employees. The employees are entitled to participate in 20% of the dividends accruing to the 10% shareholding in Blanket Mine if they are employed at the date of such distribution. To the extent that 80% of the attributable dividends exceed the balance on the BETS facilitation loan they will accrue to the employees at the date of such declaration. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | The Employee Trust and BETS are structured entities which are effectively controlled and consolidated by Blanket Mine. Accordingly, the shares held by BETS are effectively treated as treasury shares in Blanket Mine and no NCI is recognised. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  Blanket’s indigenisation shareholding percentages and facilitation loan balances |
|----------------------------------------------------------------------------------------------|
|                                                                                         |   |   |   | Balance of facilitation loan # |
|  USD 000's                                                                              | Shareholding | NCI Recognised | NCI subject to facilitation  loan | Dec, 31 2016 |  Dec, 31 2015 |
| NIEEF                                                                                        | 16% | 3.2% | 12.8% | 11,990 | 11,907 |
| Fremiro                                                                                      | 15% | 3.0% | 12.0% | 11,682 | 11,657 |
| Community Trust                                                                              | 10% | 10.0% | - | - | - |
| BETS                                                                                         | 10% | -* | -* | 7,788 |   7,772 |
|                                                                                         | 51% | 16.2% | 24.8% | 31,460 | 31,336 |

----

| Balance at January 1, 2015          |   |   | 31,336 |   |
|-------------------------------------|--------|--------|--------|--------|
| Interest accrued &              |   |   | -      |   |
| Dividends used to repay loans & |   |   | -      |   |
| Balance at December 31, 2015        |   |   | 31,336 |   |
| Interest accrued &              |   |   | 1,359  |   |
| Dividends used to repay loans & |   |   | (1,235 | )      |
| Balance at December 31, 2016        |   |   | 31,460 |   |

----

|                                      |   | Total  |   |
|-------------------------------------------|--------|--------|--------|
|                                      |   |   |   |
| Balance at January 1, 2015                |   |   | 3,237  |   |
| Interest accrued                          |   |   | -      |   |
| Dividends used to repay advance dividends |   |   | -      |   |
| Balance at December 31, 2015              |   |   | 3,237  |   |
| Interest accrued                          |   |   | 133    |   |
| Dividends used to repay advance dividends |   |   | (370   | ) |
| Balance at December 31, 2016              |   |   | 3,000  |   |

| · | Currency risk (refer note 25) |
|--------|-------------------------------|

| · | Interest rate risk (refer note 25) |
|--------|------------------------------------|

| · | Credit risk (refer note 25) |
|--------|-----------------------------|

| · | Liquidity risk (refer note 25) |
|--------|--------------------------------|

----

| (a) | Currency risk |
|-----|---------------|

| (b) | Interest rate risk |
|-----|--------------------|

| (c) | Credit risk |
|-----|-------------|

| (d) | Liquidity risk |
|-----|----------------|

----

|         |   | 2016   |   |   | 2015   |   |   | 2014   |   |
|--------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|         |   |   |   |   |   |   |   |   |   |
| Total equity |   |   | 59,317 |   |   |   | 50,361 |   |   |   | 50,343 |   |

|                             |   |   |   |   |   |   |   |   |   |
|----------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                             |   | 2016   |   |   | 2015   |   |   | 2014   |   |
|                             |   |   |   |   |   |   |   |   |   |
| Salaries and wages               |   |   | 12,206 |   |   |   | 11,908 |   |   |   | 10,014 |   |
| Consumable materials             |   |   | 16,291 |   |   |   | 14,479 |   |   |   | 14,565 |   |
| Site restoration                 |   |   | 32     |   |   |   | -      |   |   |   | 29 |   |
| Exploration cost not capitalised |   |   | 408    |   |   |   | 380    |   |   |   | 343 |   |
| Safety                           |   |   | 221    |   |   |   | 551    |   |   |   | 473 |   |
| On mine administration           |   |   | 2,898  |   |   |   | 2,701  |   |   |   | 2,484 |   |
| Other production cost            |   |   | 30     |   |   |   | -      |   |   |   | - |   |
|                             |   |   | 32,086 |   |   |   | 30,019 |   |   |   | 27,908 |   |
|                             |   |   |   |   |   |   |   |   |   |   |   |   |

|                                                                  |   | 2016   |   |   | 2015   |   |   | 2014   |   |
|-----------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Government grant – Gold sale export incentive                   |   |   | 1,104  |   |   |   | -      |   |   |   | - |   |
| Non-refundable deposit – Eersteling Gold Mining Company Limited |   |   | 120    |   |   |   | -      |   |   |   | - |   |
| Other                                                                 |   |   | 106    |   |   |   | 110    |   |   |   | 25 |   |
|                                                                  |   |   | 1,330  |   |   |   | 110    |   |   |   | 25 |   |

----

|                                         |   | 2016   |   |   | 2015   |   |   | 2014   |   |
|----------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                         |   |   |   |   |   |   |   |   |   |
| Investor  relations                     |   |   | 543    |   |   |   | 513    |   |   |   | 514 |   |
| Audit fee                                    |   |   | 267    |   |   |   | 240    |   |   |   | 356 |   |
| Legal fee and disbursements                  |   |   | 617    |   |   |   | 452    |   |   |   | 722 |   |
| Advisory services fee                        |   |   | 373    |   |   |   | 355    |   |   |   | 24 |   |
| Listing fees                                 |   |   | 328    |   |   |   | 206    |   |   |   | 318 |   |
| Directors fees company                       |   |   | 211    |   |   |   | 191    |   |   |   | 298 |   |
| Directors fees Blanket                       |   |   | 48     |   |   |   | 60     |   |   |   | 38 |   |
| Employee costs                               |   |   | 2,803  |   |   |   | 3,106  |   |   |   | 3,152 |   |
| Office costs  - Zambia                  |   |   | 17     |   |   |   | 716    |   |   |   | 896 |   |
| Other office administration costs            |   |   | 185    |   |   |   | 547    |   |   |   | 16 |   |
| Unrecoverable VAT expenses and penalties     |   |   | -      |   |   |   | 298    |   |   |   | - |   |
| Employee benefits relating to indigenisation |   |   | -      |   |   |   | -      |   |   |   | 140 |   |
| Travel costs                                 |   |   | 484    |   |   |   | 325    |   |   |   | 303 |   |
| Donation to community                        |   |   | -      |   |   |   | 58     |   |   |   | - |   |
| Eersteling Gold Mine administration costs    |   |   | 111    |   |   |   | 111    |   |   |   | 120 |   |
| Professional consulting fees                 |   |   | 1,276  |   |   |   | 444    |   |   |   | 490 |   |
|                                         |   |   | 7,263  |   |   |   | 7,622  |   |   |   | 7,387 |   |

----

| Finance income                                                               |   | 2016   |   |   | 2015   |   |   | 2014   |   |
|------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                                                         |   |   |   |   |   |   |   |   |   |
| Interest received – Bank                                               |   |   | 16     |   |   |   | 1      |   |   |   | 14 |   |
|                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Finance cost                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest paid – Bank                                                   |   |   | 103    |   |   |   | 49     |   |   |   | 20 |   |
| Interest paid – Capitalised to Property, plant and equipment (note 13) |   |   | (103   | )      |   |   | -      |   |   |   | - |   |
| Unwinding of rehabilitation provision                                        |   |   | 25     |   |   |   | 43     |   |   |   | 33 |   |
| Interest – South African Revenue Service                               |   |   | -      |   |   |   | 344    |   |   |   | - |   |
| Finance charges – Overdraft                                            |   |   | 167    |   |   |   | 100    |   |   |   | 101 |   |
|                                                                         |   |   | 192    |   |   |   | 536    |   |   |   | 154 |   |

|                                                 |   | 2016   |   | 2015    |   | 2014   |   |
|------------------------------------------------------|--------|--------|--------|---------|--------|--------|--------|
| Tax recognised in profit or loss                     |   |   |   |    |   |   |   |
|                                                 |   |   |   |    |   |   |   |
| Current tax                                          |   | 3,106  |   | (197)   |   | 5,276  |   |
| Income tax– current year                       |   | 2,414  |   | 506     |   | 4,582  |   |
| Income tax – Prior year under/(over) provision |   | 49     |   | (1,636) |   | (194)  |   |
| Withholding tax expense                              |   | 643    |   | 933     |   | 888    |   |
| Deferred tax expense                                 |   | 4,611  |   | 2,567   |   | 706    |   |
| Origination and reversal of temporary differences    |   | 4,611  |   | 2,567   |   | 468    |   |
| Change in effective tax rate                         |   | -      |   | -       |   | 238    |   |
|                                                 |   |   |   |    |   |   |   |
| Tax expense – recognised in profit or loss     |   | 7,717  |   | 2,370   |   | 5,982  |   |

| Income tax - current year |   |   | -     |   |   |   | (199  | )      |   |   | (111  | )      |
|---------------------------|--------|--------|-------|--------|--------|--------|-------|--------|--------|--------|-------|--------|
| Tax expense               |        |        | 7,717 |   |   |   | 2,171 |   |   |   | 5,871 |   |

| Deferred tax assets have not been recognised in respect of the following items: |   | 2016   |   |   | 2015   |   |    | 2014   |   |
|---------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|---------|--------|--------|
|                                                                            |   |   |   |   |   |   |    |   |   |
| Tax losses carried forward                                                      |   |   | 4,989  |   |   |   | *11,150 |   |   |   |   | *19,957 |
|                                                                            |   |   | 4,989  |   |   |   | 11,150  |   |   |   | 19,957 |   |

----

| Tax paid                                                         |   | 2016   |   |   | 2015   |   |   | 2014   |   |
|------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                                             |   |   |   |   |   |   |   |   |   |
| Net income tax receivable/(payable) at January 1                 |   |   | 344    |   |   |   | (1,617 | )      |   |   | (1,064 | ) |
| Current and withholding (expense)/tax credit                     |   |   | (3,106 | )      |   |   | 197    |   |   |   | (5,276 | ) |
| Income tax expense recognised through other comprehensive income |   |   | -      |   |   |   | 199    |   |   |   | 111 |   |
| Foreign currency movement                                        |   |   | (49    | )      |   |   | 103    |   |   |   | 86 |   |
| Tax paid                                                         |   |   | 2,466  |   |   |   | 1,462  |   |   |   | 4,526 |   |
| Net income tax (payable)/receivable at December 31               |   |   | (345   | )      |   |   | 344    |   |   |   | (1,617 | ) |
| Net income tax                      |   | 2016   |   |   | 2015   |   |   | 2014   |   |
|-------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                |   |   |   |   |   |   |   |   |   |
| Income tax receivable               |   |   | -      |   |   |   | 397    |   |   |   | 95 |   |
| Income tax payable                  |   |   | (345   | )      |   |   | (53    | )      |   |   | (1,712 | ) |
| Net income tax (payable)/receivable |   |   | (345   | )      |   |   | 344    |   |   |   | (1,617 | ) |

----

|                                           | 2016   | 2016   | 2015   | 2015    | 2014   | 2014   |
|------------------------------------------------|--------|--------|--------|---------|--------|--------|
|                                           | %      |   | %      |    | %      |   |
| Profit for the year                            |   | 11,085 |   | 5,590   |   | 5,946  |
| Total tax expense                              |   | 7,717  |   | 2,370   |   | 5,982  |
| Profit before tax                              |   | 18,802 |   | 7,960   |   | 11,928 |
|                                           |   |   |   |    |   |   |
| Income tax at Company's domestic tax rate      | *0%    | -      | 26.5%  | 2,109   | 26.5%  | 3,161  |
| Tax rate differences in foreign jurisdictions  |   | 6,171  |   | (63)    |   | (349)  |
| Change in tax rate                             |   | -      |   | -       |   | 238    |
| Foreign currency difference                    |   | -      |   | (12)    |   | 34     |
| Net withholding tax                            |   | 476    |   | 317     |   | 185    |
| Deemed interest on loans                       |   | -      |   | 31      |   | 636    |
| Share-based payments                           |   | 122    |   | 6       |   | -      |
| Impairment                                     |   | -      |   | -       |   | 37     |
| Non-deductible South African tax transactions  |   | -      |   | 470     |   | -      |
| Royalties                                      |   | 753    |   | 632     |   | 881    |
| Donations                                      |   | 2      |   | 15      |   | 3      |
| Other non-deductible expenditure               |   | 62     |   | (49)    |   | 27     |
| Under/(over) provision of taxes in prior years |   | 49     |   | (1,636) |   | (194)  |
| Change in unrecognized deferred tax assets     |   | 82     |   | 550     |   | 1,323  |
| Tax expense - recognised in profit or loss     |   | 7,717  |   | 2,370   |   | 5,982  |

----

|                          |   | Assets |   |   | Liabilities |   |   | Net    |   |
|-------------------------------|--------|--------|--------|--------|-------------|--------|--------|--------|--------|
|                          |   | 2016   |   |   | 2015        |   |   | 2014   |   |   | 2016 |   |   | 2015 |   |   | 2014 |   |   | 2016 |   |   | *2015 |   |   | 2014 |   |
|                          |   |   |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Property, plant and equipment |   |   | -      |   |        |   | -      |   |   |   | - |   |   |   | (17,092 | ) |   |   | (12,988 | ) |   |   | (9,223 | ) |   |   | (17,092 | ) |   |   | (12,988 | ) |   |   | (9,223 | ) |
| Provision for obsolete stock  |   |   | 12     |   |        |   | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 12 |   |   |   | - |   |   |   | - |   |
| Prepayments                   |   |   | -      |   |        |   | -      |   |   |   | - |   |   |   | (3 | ) |   |   | (3 | ) |   |   | (22 | ) |   |   | (3 | ) |   |   | (3 | ) |   |   | (22 | ) |
| Provisions                    |   |   | 1,218  |   |        |   | 733    |   |   |   | 565 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1218 |   |   |   | 733 |   |   |   | 565 |   |
| Assessed losses recognised    |   |   | -      |   |        |   | 998    |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 998 |   |   |   | - |   |
| Tax assets/ (liabilities)     |   |   | 1,230  |   |        |   | 1,731  |   |   |   | 565 |   |   |   | (17,095 | ) |   |   | (12,991 | ) |   |   | (9,245 | ) |   |   | (15,865 | ) |   |   | (11,260 | ) |   |   | (8,680 | ) |

|                          |   | Balance January 1, 2016 |    |   | Recognised in profit or loss |   |   | Foreign exchange movement |   |   | Balance December 31, 2016 |   |
|-------------------------------|--------|-------------------------|---------|--------|------------------------------|--------|--------|---------------------------|--------|--------|---------------------------|--------|
| Property, plant and equipment |   |                    | (12,988 | )      |                         |   | (4,104 | )                         |   |   | -                         |   |   |   | (17,092 | ) |
| Prepayments                   |   |                    | (3      | )      |                         |   | 2      |                      |   |   | (2                        | )      |   |   | (3 | ) |
| Provisions                    |   |                    | 733     |   |                         |   | 477    |                      |   |   | 8                         |   |   |   | 1218 |   |
| Provision for obsolete stock  |   |                    | -       |   |                         |   | 12     |                      |   |   | -                         |   |   |   | 12 |   |
| Assessed loss                 |   |                    | 998     |   |                         |   | (998   | )                         |   |   | -                         |   |   |   | - |   |
| Total                         |   |                    | (11,260 | )      |                         |   | (4,611 | )                         |   |   | 6                         |   |   |   | (15,865 | ) |

----

|                          |   | Balance January 1, 2015 |   |   | Recognised in profit or loss |   |   | Foreign exchange movement |   |   | Balance December 31, 2015 |   |
|-------------------------------|--------|-------------------------|--------|--------|------------------------------|--------|--------|---------------------------|--------|--------|---------------------------|--------|
| Property, plant and equipment |   |                    | (9,223 | )      |                         |   | (3,765 | )                         |   |   | -                         |   |   |   | (12,988 | ) |
| Prepayments                   |   |                    | (22    | )      |                         |   | 16     |                      |   |   | 3                         |   |   |   | (3 | ) |
| Provisions                    |   |                    | 565    |   |                         |   | 184    |                      |   |   | (16                       | )      |   |   | 733 |   |
| Assessed loss recognised      |   |                    | -      |   |                         |   | 998    |                      |   |   | -                         |   |   |   | 998 |   |
| Total                         |   |                    | (8,680 | )      |                         |   | (2,567 | )                         |   |   | (13                       | )      |   |   | (11,260 | ) |
|                          |   |                    |   |   |                         |   |   |                      |   |   |                      |   |   |   |   |   |

|                          |   | Balance January 1, 2014 |   |   | Recognised in profit or loss |   |   | Foreign exchange movement |   |   | Balance December 31, 2014 |   |
|-------------------------------|--------|-------------------------|--------|--------|------------------------------|--------|--------|---------------------------|--------|--------|---------------------------|--------|
| Property, plant and equipment |   |                    | (8,058 | )      |                         |   | (835   | )                         |   |   | (330                      | )      |   |   | (9,223 | ) |
| Prepayments                   |   |                    | -      |   |                         |   | -      |                      |   |   | (22                       | )      |   |   | (22 | ) |
| Provisions                    |   |                    | 207    |   |                         |   | 108    |                      |   |   | 250                       |   |   |   | 565 |   |
| Inventory                     |   |                    | (80    | )      |                         |   | -      |                      |   |   | 80                        |   |   |   | - |   |
| Other                         |   |                    | (36    | )      |                         |   | 21     |                      |   |   | 15                        |   |   |   | - |   |
| Total                         |   |                    | (7,967 | )      |                         |   | (706   | )                         |   |   | (7                        | )      |   |   | (8,680 | ) |

----

|                                     |   | Land and buildings |   |   | Mine development, infrastructure and other |   |    | Exploration and Evaluation assets |   |   | Plant and equipment |   |   | Fixtures and fittings |   |   | Motor vehicles |   |   | Total  |   |
|-------------------------------------|--------|--------------------|--------|--------|--------------------------------------------|--------|---------|-----------------------------------|--------|--------|---------------------|--------|--------|-----------------------|--------|--------|----------------|--------|--------|--------|--------|
| Cost                                |   |               |   |   |                                       |   |    |                              |   |   |                |   |   |                  |   |   |           |   |   |   |   |
| Balance at January 1, 2014          |   |               | 7,622  |   |                                       |   | 12,145  |                              |   |   | 17,129              |   |   |                  | 20,079 |   |           |   | 1,220  |   |   |   | 2,075 |   |   |   | 60,270 |   |
| Additions                           |   |               | 536    |   |                                       |   | *2,990  |                              |   |   | 1,768               |   |   |                  | 1,740  |   |           |   | 114    |   |   |   | 18 |   |   |   | 7,166 |   |
| Disposals                           |   |               | -      |   |                                       |   | -       |                              |   |   | -                   |   |   |                  | (275   | )      |           |   | -      |   |   |   | (8 | ) |   |   | (283 | ) |
| Reallocations between asset classes |   |               | (580   | )      |                                       |   | 1,661   |                              |   |   | -                   |   |   |                  | (1,084 | )      |           |   | 3      |   |   |   | - |   |   |   | - |   |
| Foreign exchange movement           |   |               | 30     |   |                                       |   | 92      |                              |   |   | (3,684              | )      |   |                  | 508    |   |           |   | (145   | )      |   |   | (114 | ) |   |   | (3,313 | ) |
| Balance at December 31, 2014        |   |               | 7,608  |   |                                       |   | 16,888  |                              |   |   | 15,213              |   |   |                  | 20,968 |   |           |   | 1,192  |   |   |   | 1,971 |   |   |   | 63,840 |   |
| Balance at January 1, 2015          |   |               | 7,608  |   |                                       |   | 16,888  |                              |   |   | 15,213              |   |   |                  | 20,968 |   |           |   | 1,192  |   |   |   | 1,971 |   |   |   | 63,840 |   |
| Additions                           |   |               | 681    |   |                                       |   | *14,359 |                              |   |   | 1,595               |   |   |                  | 1,144  |   |           |   | 149    |   |   |   | 265 |   |   |   | 18,193 |   |
| Surrender of Zambian assets ***     |   |               | -      |   |                                       |   | -       |                              |   |   | (11,527             | )      |   |                  | -      |   |           |   | -      |   |   |   | - |   |   |   | (11,527 | ) |
| Disposals                           |   |               | -      |   |                                       |   | -       |                              |   |   | -                   |   |   |                  | (124   | )      |           |   | -      |   |   |   | (77 | ) |   |   | (201 | ) |
| Reallocations between asset classes |   |               | (256   | )      |                                       |   | -       |                              |   |   | 1,012               |   |   |                  | (756   | )      |           |   | -      |   |   |   | - |   |   |   | - |   |
| Foreign exchange movement           |   |               | (44    | )      |                                       |   | (89     | )                                 |   |   | (69                 | )      |   |                  | (606   | )      |           |   | (64    | )      |   |   | (90 | ) |   |   | (962 | ) |
| Balance at December 31, 2015        |   |               | 7,989  |   |                                       |   | 31,158  |                              |   |   | 6,224               |   |   |                  | 20,626 |   |           |   | 1,277  |   |   |   | 2,069 |   |   |   | 69,343 |   |
| Balance at January 1, 2016          |   |               | 7,989  |   |                                       |   | 31,158  |                              |   |   | 6,224               |   |   |                  | 20,626 |   |           |   | 1,277  |   |   |   | 2,069 |   |   |   | 69,343 |   |
| Additions**                         |   |               | -      |   |                                       |   | *17,545 |                              |   |   | 739                 |   |   |                  | 572    |   |           |   | 73     |   |   |   | 230 |   |   |   | 19,159 |   |
| Scrappings                          |   |               | -      |   |                                       |   | -       |                              |   |   | -                   |   |   |                  | -      |   |           |   | (502   | )      |   |   | - |   |   |   | (502 | ) |
| Reallocations between asset classes |   |               | 361    |   |                                       |   | (3,699  | )                                 |   |   | -                   |   |   |                  | 3,338  |   |           |   | -      |   |   |   | - |   |   |   | - |   |
| Disposals                           |   |               |   |   |                                       |   |    |                              |   |   |                |   |   |                  |   |   |           |   |   |   |   |   | (55 | ) |   |   | (55 | ) |
| Foreign exchange movement           |   |               | 17     |   |                                       |   | 74      |                              |   |   | 4                   |   |   |                  | -      |   |           |   | 28     |   |   |   | 11 |   |   |   | 134 |   |
| Balance at December 31, 2016        |   |               | 8,367  |   |                                       |   | 45,078  |                              |   |   | 6,967               |   |   |                  | 24,536 |   |           |   | 876    |   |   |   | 2,255 |   |   |   | 88,079 |   |

----

|                                           |   | Land and buildings |   |   | Mine development, infrastructure and other |   |   | Exploration and Evaluation assets |   |   | Plant and equipment |    |   | Fixtures and fittings |   |   | Motor vehicles |   |   | Total  |   |
|------------------------------------------------|--------|--------------------|--------|--------|--------------------------------------------|--------|--------|-----------------------------------|--------|--------|---------------------|---------|--------|-----------------------|--------|--------|----------------|--------|--------|--------|--------|
| Accumulated depreciation and Impairment losses |   |               |   |   |                                       |   |   |                              |   |   |                |    |   |                  |   |   |           |   |   |   |   |
| Balance at January 1, 2014                     |   |               | 1,621  |   |                                       |   | 2,642  |                              |   |   | 13,400              |    |   |                  | 9,243  |   |           |   | 994    |   |   |   | 1,098 |   |   |   | 28,998 |   |
| Depreciation for the year                      |   |               | 514    |   |                                       |   | 734    |                              |   |   | -                   |    |   |                  | 1,891  |   |           |   | 78     |   |   |   | 323 |   |   |   | 3,540 |   |
| Impairment                                     |   |               | -      |   |                                       |   | -      |                              |   |   |                | -  |   |                  | 164    |   |           |   | 14     |   |   |   | - |   |   |   | 178 |   |
| Disposals                                      |   |               | -      |   |                                       |   | -      |                              |   |   | -                   |    |   |                  | (214   | )      |           |   | -      |   |   |   | (8 | ) |   |   | (222 | ) |
| Foreign exchange movement                      |   |               | (372   | )      |                                       |   | 59     |                              |   |   | (1,873              | )       |   |                  | (954   | )      |           |   | (140   | )      |   |   | (110 | ) |   |   | (3,390 | ) |
| Balance at December 31, 2014                   |   |               | 1,763  |   |                                       |   | 3,435  |                              |   |   | 11,527              |    |   |                  | 10,130 |   |           |   | 946    |   |   |   | 1,303 |   |   |   | 29,104 |   |
|                                           |   |               |   |   |                                       |   |   |                              |   |   |                |    |   |                  |   |   |           |   |   |   |   |   |   |   |   |   |   |   |
| Balance at January 1, 2015                     |   |               | 1,763  |   |                                       |   | 3,435  |                              |   |   | 11,527              |    |   |                  | 10,130 |   |           |   | 946    |   |   |   | 1,303 |   |   |   | 29,104 |   |
| Depreciation for the year                      |   |               | 559    |   |                                       |   | 451    |                              |   |   | -                   |    |   |                  | 1,894  |   |           |   | 98     |   |   |   | 320 |   |   |   | 3,322 |   |
| Surrender of Zambian assets ***                |   |               | -      |   |                                       |   | -      |                              |   |   | (11,527             | )       |   |                  | -      |   |           |   | -      |   |   |   | - |   |   |   | (11,527 | ) |
| Disposals                                      |   |               | -      |   |                                       |   | -      |                              |   |   | -                   |    |   |                  | (117   | )      |           |   | -      |   |   |   | (51 | ) |   |   | (168 | ) |
| Foreign exchange movement                      |   |               | (1     | )      |                                       |   | (105   | )                                 |   |   | -                   |    |   |                  | (383   | )      |           |   | (48    | )      |   |   | (69 | ) |   |   | (606 | ) |
| Balance at December 31, 2015                   |   |               | 2,321  |   |                                       |   | 3,781  |                              |   |   | -                   |    |   |                  | 11,524 |   |           |   | 996    |   |   |   | 1,503 |   |   |   | 20,125 |   |
|                                           |   |               |   |   |                                       |   |   |                              |   |   |                |    |   |                  |   |   |           |   |   |   |   |   |   |   |   |   |   |   |
| Balance at January 1, 2016                     |   |               | 2,321  |   |                                       |   | 3,781  |                              |   |   | -                   |    |   |                  | 11,524 |   |           |   | 996    |   |   |   | 1,503 |   |   |   | 20,125 |   |
| Scrappings                                     |   |               | -      |   |                                       |   | -      |                              |   |   | -                   |    |   |                  | -      |   |           |   | (502   | )      |   |   | - |   |   |   | (502 | ) |
| Impairments                                    |   |               | -      |   |                                       |   | -      |                              |   |   | -                   |    |   |                  | -      |   |           |   | 20     |   |   |   | - |   |   |   | 20 |   |
| Depreciation for the year                      |   |               | 629    |   |                                       |   | 699    |                              |   |   | -                   |    |   |                  | 1,705  |   |           |   | 106    |   |   |   | 352 |   |   |   | 3,491 |   |
| Disposals                                      |   |               | -      |   |                                       |   | -      |                              |   |   | -                   |    |   |                  | -      |   |           |   | -      |   |   |   | (8 | ) |   |   | (8 | ) |
| Foreign exchange movement                      |   |               | -      |   |                                       |   | 61     |                              |   |   | -                   |    |   |                  | -      |   |           |   | 22     |   |   |   | (3 | ) |   |   | 80 |   |
| Balance at December 31, 2016                   |   |               | 2,950  |   |                                       |   | 4,541  |                              |   |   | -                   |    |   |                  | 13,229 |   |           |   | 642    |   |   |   | 1,844 |   |   |   | 23,206 |   |

----

| Carrying amounts     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|----------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| At December 31, 2014 |   |   | 5,845  |   |   |   | 13,453 |   |   |   | 3,686  |   |   |   | 10,838 |   |   |   | 246    |   |   |   | 668 |   |   |   | 34,736 |   |
| At December 31, 2015 |   |   | 5,668  |   |   |   | 27,377 |   |   |   | 6,224  |   |   |   | 9,102  |   |   |   | 281    |   |   |   | 566 |   |   |   | 49,218 |   |
| At December 31, 2016 |   |   | 5,417  |   |   |   | 40,537 |   |   |   | 6,967  |   |   |   | 11,307 |   |   |   | 234    |   |   |   | 411 |   |   |   | 64,873 |   |
|                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| Long-term gold price per oz.                                   |   | $      | 1,192  |   |
|----------------------------------------------------------------|--------|--------|--------|--------|
| Discount rate                                                  |   |   | 20     | %      |
| Life of mine                                                   |   |   |   |   |
| - GG                                                           | 7 yrs  |   |
| - Mascot                                                       | 5 yrs  |   |
| Incremental operational cost per tonne (at 100 tonnes per day) |   |
| - GG                                                           |   | $      | 42     |   |
| - Mascot                                                       |   | $      | 44     |   |
|                                                           |   |   |   |   |

|              |   | 2016   |   |   | 2015   |   |
|-------------------|--------|--------|--------|--------|--------|--------|
|              |   |   |   |   |   |   |
| Consumable stores |   |   | 6,884  |   |   |   | 5,739 |   |
| Gold in process   |   |   | 338    |   |   |   | 352 |   |
|              |   |   | 7,222  |   |   |   | 6,091 |   |

|                                                    |   | 2016   |   |   | 2015   |   |
|---------------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                                    |   |   |   |   |   |   |
| Bullion revenue receivable                              |   |   | 1,059  |   |   |   | - |   |
| VAT receivables                                         |   |   | 1,901  |   |   |   | 2,997 |   |
| Deposits for stores and equipment and other receivables |   |   | 465    |   |   |   | 842 |   |
|                                                    |   |   | 3,425  |   |   |   | 3,839 |   |

|                                                             |   | 2016   |   |   | 2015   |   |
|------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                                             |   |   |   |   |   |   |
| Bank balances                                                    |   |   | 14,335 |   |   |   | 12,568 |   |
| Cash and cash equivalents in the statement of financial position |   |   | 14,335 |   |   |   | 12,568 |   |
| Bank overdrafts used for cash management purposes                |   |   | -      |   |   |   | (1,688 | ) |
| Net cash and cash equivalents at year end                        |   |   | 14,335 |   |   |   | 10,880 |   |

**Unlimited number of shares of no par value.**

**Unlimited number of preference shares of no par value.**

|  Issued shares |   |   | Number of fully paid shares |   |   |   | Amount |   |
|---------------------|--------|--------|-----------------------------|--------|--------|--------|--------|--------|
| January 1, 2014     |   |   | 52,117,908                  |   |   |   | 54,569 |   |
| December 31, 2014   |   |   | 52,117,908                  |   |   |   | 54,569 |   |
| Cancelled*          |   |   | (39,000                     | )      |   |   | -      |   |
| December 31, 2015   |   |   | 52,078,908                  |   |   |   | 54,569 |   |
| Issued              |   |   | 708,520                     |   |   |   | 433    |   |
| December 31, 2016   |   |   | 52,787,428                  |   |   |   | 55,002 |   |

----

|                                       |   | 2016   |    |   | 2015   |   |    | 2014   |   |
|--------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
| Foreign currency translation reserve       |   |   | (6,258  | )      |   |   | (6,520  | )      |   |   | (3,229 | ) |
| Equity settled share-based payment reserve |   |   | 16,041  |   |   |   | 15,871  |   |   |   | 15,847 |   |
| Contributed surplus                        |   |   | 132,591 |   |   |   | 132,591 |   |   |   | 132,591 |   |
| Total                                      |   |   | 142,374 |   |   |   | 141,942 |   |   |   | 145,209 |   |

----

| (In number of shares)                            |   | Note   |   |   | 2016   |   |       | 2015   |   |   | 2014       |   |
|--------------------------------------------------|--------|--------|--------|--------|--------|--------|------------|--------|--------|--------|------------|--------|
|                                             |   |   |   |   |   |   |       |   |   |   |       |   |
| Issued share capital at beginning of year        |   |   | 17     |   |   |   | 52,078,908 |   |   |   | 52,117,908 |   |   |   | 52,117,908 |   |
| Weighted average cancellation during the year    |   |   |   |   |   |   | -          |   |   |   | (22,821    | )      |   |   | - |   |
| Weighted average share issues during the year    |   |   |   |   |   |   | 207,300    |   |   |   | -          |   |   |   | - |   |
| Weighted average number of shares at December 31 |   |   |   |   |   |   | 52,286,208 |   |   |   | 52,095,087 |   |   |   | 52,117,908 |   |

|                                         |   | 2016   |   |   | 2015   |   |   | 2014   |   |
|----------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Profit attributable to shareholders          |   |   | 8,526  |   |   |   | 4,779  |   |   |   | 4,435 |   |
| Blanket Mine Employee Trust Adjustment       |   |   | (238   | )      |   |   | (100   | )      |   |   | (48 | ) |
| Adjusted profit attributable to shareholders |   |   | 8,288  |   |   |   | 4,679  |   |   |   | 4,387 |   |
| Basic earnings per share -$                  |   |   | 0.16   |   |   |   | 0.09   |   |   |   | 0.08 |   |

| · | Basic earnings are adjusted for the amounts that accrue to other equity holders of subsidiaries upon the full distribution of post-acquisition earnings to shareholders. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Diluted earnings is calculated on the basis that the unpaid ownership interests of Blanket Mine’s Indigenisation shareholders are effectively treated as options whereby the weighted average fair value for the period of the Blanket Mine shares issued to Indigenous Zimbabweans and which are subject to settlement of the loan accounts is compared to the balance of the loan accounts and any excess portion is regarded as dilutive.  The difference between the number of Blanket Mine shares subject to the settlement of the loan accounts and the number of Blanket Mine shares that would have been issued at the average fair value is treated as the issue of shares for no consideration and regarded as dilutive shares.  The calculated dilution is taken into account with additional earnings attributable to the dilutive shares in Blanket Mine, if any. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (In number of shares)                                            |   | 2016   |       |   | 2015   |   |       | 2014   |   |
|------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|--------|
|                                                             |   |   |       |   |   |   |       |   |   |
| Weighted average number of shares at December 31                 |   |   | 52,286,208 |   |   |   | 52,095,087 |   |   |   | 52,117,908 |   |
| Effect of dilutive options                                       |   |   | 117,427    |   |   |   | 108,169    |   |   |   | 27,561 |   |
| Weighted average number of  shares (diluted) at December 31 |   |   | 52,403,635 |   |   |   | 52,203,255 |   |   |   | 52,145,469 |   |
| Diluted earnings per share - $                                   |   |   | 0.16       |   |   |   | 0.09       |   |   |   | 0.08 |   |

| 20 | Provisions |
|----|------------|

|                                                           |   |   |     |   |   |   |   |   |   |
|----------------------------------------------------------------|--------|--------|----------|--------|--------|--------|--------|--------|--------|
| Reconciliation of site restoration provision                   |   | 2016   |     |   | 2015   |   |   | 2014   |   |
| Balance at January 1,                                          |   |   | 2,762    |   |   |   | 2,484  |   |   |   | 1,470 |   |
| Foreign exchange movement                                 |   |   | 80252525 |   |   |   | (156   | )      |   |   | (64 | ) |
| Unwinding of discount                                          |   |   | 25       |   |   |   | 43     |   |   |   | 33 |   |
| Change in estimate during the year                             |   |   |     |   |   |   |   |   |   |   |   |   |
| - adjusted through profit or loss                         |   |   | 32       |   |   |   | -      |   |   |   | 29 |   |
| - adjustment capitalised in Property, plant and equipment |   |   | 557      |   |   |   | 391    |   |   |   | 1,016 |   |
| Balance at December 31,                                        |   |   | 3,456    |   |   |   | 2,762  |   |   |   | 2,484 |   |
|                                                           |   |   |     |   |   |   |   |   |   |   |   |   |

----

| 20 | Provisions – (continued) |
|----|--------------------------------|

|                                |   | Note   |   |   | 2016   |   |   | 2015   |   |   | 2014 |   |
|-------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|------|--------|
| Equity settled share-based payments |   |   | 21.1   |   |   |   | 170    |   |   |   | -    |   |   |   | - |   |
| Cash settled share-based payments   |   |   | 21.2   |   |   |   | 618    |   |   |   | -    |   |   |   | - |   |
|                                |   |   |   |   |   |   | 788    |   |   |   | -    |   |   |   | - |   |

| Number of Options | Exercise Price | Expiry Date(1) |
|-------------------|----------------|----------------|
|              | Canadian $     |           |
| 90,000            | 2.30           | Oct 13, 2021   |
| 25,000            | 0.80           | Oct 8, 2020    |
| 346,400           | 0.90           | Sept 10, 2018  |
| 461,400           |           |           |

| (1) | In terms of the approved Plan, the expiry date of options that expire in a closed period will be extended by 10 days from the cessation of the close period. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                     |   | Number of Options |       |   | Weighted Avg. Exercise Price |   |
|----------------------------------------------------------|--------|-------------------|------------|--------|------------------------------|--------|
|                                                     |   |              |       |   |  Canadian $             |   |
| Options outstanding and exercisable at January 1, 2014   |   |              | 2,847,920  |   |                         |   | 1.11 |   |
| Expired or forfeited                                     |   |              | (282,000   | )      |                         |   | 1.13 |   |
| Options outstanding and exercisable at December 31, 2014 |   |              | 2,565,920  |   |                         |   | 1.11 |   |
| Expired or forfeited                                     |   |              | (440,000   | )      |                         |   | 1.11 |   |
| Granted                                                  |   |              | 115,000    |   |                         |   | 0.73 |   |
| Options outstanding and exercisable at December 31, 2015 |   |              | 2,240,920  |   |                         |   | 1.08 |   |
| Expired or forfeited                                     |   |              | (1,161,000 | )      |                         |   | 1.30 |   |
| Granted                                                  |   |              | 90,000     |   |                         |   | 2.30 |   |
| Exercised                                                |   |              | (708,520   | )      |                         |   | 0.83 |   |
| Options outstanding and exercisable at December 31, 2016 |   |              | 461,400    |   |                         |   | 1.17 |   |

|                                                             |   | 2016             |   |   | 2015            |   |   | 2015              |   |
|------------------------------------------------------------------|--------|------------------|--------|--------|-----------------|--------|--------|-------------------|--------|
| Options granted                                                  |   | 90,000           |   |   | 25,000          |   |   | 90,000            |   |
| Grant date                                                       |   | October 13, 2016 |   |   | October 7, 2015 |   |   | December 21, 2015 |   |
| Risk-free interest rate                                          |   | 0.53             | %      |   | 0.53            | %      |   | 0.53              | %      |
| Expected stock price volatility (based on historical volatility) |   | 119              | %      |   | 39,6            | %      |   | 41,2              | %      |
| Expected option life in years                                    |   | 5                |   |   | 5               |   |   | 5                 |   |
| Exercise price                                                   |   | CAD 2.30         |   |   | CAD 0.80        |   |   | CAD 0.74          |   |
| Share price at grant date                                        |   | CAD 2.30         |   |   | CAD 0.79        |   |   | CAD 0.74          |   |
| Fair value at grant date                                         |   | USD 1.89         |   |   | USD 0.27        |   |   | USD 0.27          |   |

----

|                                         |   | RSU’s |    |   | PSU’s |   |
|----------------------------------------------|--------|-------------|---------|--------|-------------|--------|
| Fair value (USD)                             |   | $           | 1.10    |   |        | $      | 1.05 |   |
| Share price (USD)                            |   | $           | 1.10    |   |        | $      | 1.10 |   |
| Performance multiplier percentage            |   |        | -       |   |        |   | 100 | % |
| Dividend yield                               |   |        | -       |   |        |   | 3.07 | % |
| Share units granted up until reporting date: |   |
|                                         |   | RSU’s |    |   | PSU’s |   |
| Grant - January 11, 2016                     |   |        | 303,225 |   |        |   | 1,212,903 |   |
| Grant – March 23, 2016                 |   |        | 54,839  |   |        |   | 219,355 |   |
| Grant – June 8, 2016                   |   |        | 25,588  |   |        |   | 102,353 |   |
| RSU dividend reinvestments                   |   |        | 17,522  |   |        |   | - |   |
| Total awards at December 31, 2016            |   |        | 401,174 |   |        |   | 1,534,611 |   |

----

|                                      |   | 2016   |   |   | 2015   |   |
|-------------------------------------------|--------|--------|--------|--------|--------|--------|
| Non-current portion of term loan facility |   |   | 1,577  |   |   |   | - |   |
| Current portion of term loan facility     |   |   | 1,410  |   |   |   | - |   |
|                                      |   |   | 2,987  |   |   |   | - |   |

----

|                                    |   | 2016   |   |   | 2015   |   |   | 2014   |   |
|-----------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                    |   |   |   |   |   |   |   |   |   |
| Trade payables                          |   |   | 4,536  |   |   |   | 1,257  |   |   |   | 866 |   |
| Audit fee                               |   |   | 173    |   |   |   | 240    |   |   |   | 294 |   |
| Other payables                          |   |   | 343    |   |   |   | 1,599  |   |   |   | 507 |   |
| Financial liabilities                   |   |   | 5,052  |   |   |   | 3,096  |   |   |   | 1,667 |   |
| VAT payable and other taxes             |   |   | 242    |   |   |   | 329    |   |   |   | 357 |   |
| Production and management bonus accrual |   |   | 1,156  |   |   |   | 1,792  |   |   |   | - |   |
| Other employee benefits                 |   |   | 123    |   |   |   | 114    |   |   |   | 102 |   |
| Leave pay                               |   |   | 1,504  |   |   |   | 1,325  |   |   |   | 1,134 |   |
| Non-financial liabilities               |   |   | 3,025  |   |   |   | 3,560  |   |   |   | 1,593 |   |
| Total                                   |   |   | 8,077  |   |   |   | 6,656  |   |   |   | 3,260 |   |

|                                                        |   | 2016   |   |   | 2015   |   |   | 2014   |   |
|-------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Profit before tax                                           |   |   | 18,802 |   |   |   | 7,960  |   |   |   | 12,068 |   |
| Adjustments for:                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Net finance cost *                                          |   |   | 176    |   |   |   | 535    |   |   |   |   |   |
| Loss on sale of Property, plant and equipment               |   |   | 44     |   |   |   | -      |   |   |   | 62 |   |
| Impairment of Property, plant and equipment                 |   |   | 20     |   |   |   | 33     |   |   |   | 178 |   |
| Foreign exchange gains on cash held                         |   |   | (105   | )      |   |   | (2,865 | )      |   |   | (423 | ) |
| Site restoration                                            |   |   | 32     |   |   |   | -      |   |   |   | 29 |   |
| Share-based payment expense                                 |   |   | 788    |   |   |   | 24     |   |   |   | - |   |
| Depreciation                                                |   |   | 3,491  |   |   |   | 3,322  |   |   |   | 3,540 |   |
| Write off of inventory                                      |   |   | 862    |   |   |   | 46     |   |   |   | - |   |
| Cash generated by operations before working capital changes |   |   | 24,110 |   |   |   | 9,055  |   |   |   | 15,454 |   |
| Inventories                                                 |   |   | (1,990 | )      |   |   | 375    |   |   |   | (94 | ) |
| Prepayments                                                 |   |   | (99    | )      |   |   | (321   | )      |   |   | (46 | ) |
| Trade and other receivables                                 |   |   | 555    |   |   |   | (1,472 | )      |   |   | 566 |   |
| Trade and other payables                                    |   |   | 3,095  |   |   |   | 1,186  |   |   |   | (296 | ) |
| Cash flows from operating activities                        |   |   | 25,671 |   |   |   | 8,823  |   |   |   | 15,584 |   |

----

| Carrying amount |   | 2016   |   |   | 2015   |   |
|-----------------|--------|--------|--------|--------|--------|--------|
|            |   |   |   |   |   |   |
| Canada          |   |   | -      |   |   |   | - |   |
| Zimbabwe        |   |   | 1,523  |   |   |   | 842 |   |
|            |   |   | 1,523  |   |   |   | 842 |   |

| Non-derivative financial liabilities |   | Carrying amount |   |   | 12 months or less |   |   | 1-2 Years |   |
|--------------------------------------|--------|-----------------|--------|--------|-------------------|--------|--------|-----------|--------|
| December 31, 2016                    |   |            |   |   |              |   |   |      |   |
| Trade and other payables             |   |            | 5,052  |   |              |   | 5,052  |      |   |   | - |   |
| Term loan facility                   |   |            | 2,987  |   |              |   | 1,410  |      |   |   | 1,577 |   |
|                                 |   |            | 8,039  |   |              |   | 6,462  |      |   |   | 1,577 |   |
| December 31, 2015                    |   | Carrying amount |   |   | 12 months or less |   |   | 1-2 Years |   |
| Trade and other payables             |   |            | 3,096  |   |              |   | 3,096  |      |   |   | - |   |
| Bank overdraft                       |   |            | 1,688  |   |              |   | 1,688  |      |   |   | - |   |
|                                 |   |            | 4,784  |   |              |   | 4,784  |      |   |   | - |   |

----

|                      |   | 2016USD‘000   |    |   | 2015USD‘000   |   |   | 2014USD‘000   |   |
|---------------------------|--------|---------------------|---------|--------|---------------------|--------|--------|---------------------|--------|
|                      |   | Functional currency |    |   | Functional currency |   |   | Functional currency |   |
|                      |   | ZAR                 |    |   | USD                 |   |   | ZAR                 |   |   | CAD |   |   | ZAR |   |   | CAD |   |
| Cash and cash equivalents |   |                | 457     |   |                |   | 265    |                |   |   | 3,874 |   |   |   | 5,483 |   |   |   | 10,514 |   |   |   | 553 |   |
| Trade and other payables  |   |                | -       |   |                |   | 43     |                |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Intercompany balances*    |   |                | (30,552 | )      |                |   | (1,514 | )                   |   |   | (27,650 | ) |   |   | 44,390 |   |   |   | (30,320 | ) |   |   | 48,484 |   |
|                      |   |                | (30,095 | )      |                |   | (1,206 | )                   |   |   | (23,776 | ) |   |   | 49,873 |   |   |   | (19,806 | ) |   |   | 49,037 |   |

----

| (iii) | Currency risk (continued) |
|-------|---------------------------|

|                      |   | 2016USD‘000   |   |   | 2015USD’000   |   |   | 2014USD’000   |   |
|---------------------------|--------|---------------------|--------|--------|---------------------|--------|--------|---------------------|--------|
|                      |   | Functional currency |   |   | Functional currency |   |   | Functional currency |   |
|                      |   | ZAR                 |   |   | USD                 |   |   | ZAR                 |   |   | CAD |   |   | ZAR |   |   | CAD |   |
| Cash and cash equivalents |   |                | 23     |   |                |   | 13     |                |   |   | 194 |   |   |   | 274 |   |   |   | 526 |   |   |   | 28 |   |
| Trade and other payables  |   |                |   |   |                |   | 2      |                |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Intercompany balances*    |   |                | (1,527 | )      |                |   | (88    | )                   |   |   | (1,382 | ) |   |   | 2,219 |   |   |   | (1,516 | ) |   |   | 2,424 |   |
|                      |   |                |   |   |                |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| (iv) | Interest rate risk |
|------|--------------------|

|                      |   | 2016   |   |   | 2015   |   |   | 2014   |   |
|---------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Term loan                 |   |   | 2,987  |   |   |   | -      |   |   |   | - |   |
| Cash and cash equivalents |   |   | 14,335 |   |   |   | 12,568 |   |   |   | 23,082 |   |
| Overdraft                 |   |   | -      |   |   |   | (1,688 | )      |   |   | - |   |

|                         |   | 2016   |   |   | 2015   |   |   | 2014   |   |
|------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                         |   |   |   |   |   |   |   |   |   |
| Increase in 100 basis points |   |   | 30     |   |   |   | 17     |   |   |   | 3 |   |
| Decrease in 100 basis points |   |   | (30    | )      |   |   | (17    | )      |   |   | (3 | ) |

----

| (iv) | Interest rate risk |
|------|--------------------|

| Sensitivity analysis – Cash and cash equivalents  | 2016   | 2015   | 2014   |
|--------------------------------------------------------------|--------|--------|--------|
| Increase in 100 basis points                                 | 143    | 126    | 2      |
| Decrease in 100 basis points                                 | (143)  | (126)  | (2)    |
|                                                         |   |   |   |

| (v) | Gold price risk |
|-----|-----------------|

|                                                    | 2016   | 2015   | 2014   |
|---------------------------------------------------------|--------|--------|--------|
|                                                    |   |   |   |
| Dividends paid to owners of the company (Excluding NCI) | 2,639  | 2,504  | 2,850  |

----

| · | the acquisition of more than 50% of the shares; or |
|--------|----------------------------------------------------|

| · | the acquisition of right to exercise the majority of the voting rights of shares; or |
|--------|--------------------------------------------------------------------------------------|

| · | the acquisition of the right to appoint the majority of the board of directors; or |
|--------|------------------------------------------------------------------------------------|

| · | the acquisition of more than 50% of the assets of the Group. |
|--------|--------------------------------------------------------------|

|                                |   | 2016   |   |   | 2015   |   |   | 2014   |   |
|-------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Key management salaries and bonuses |   |   | 2,033  |   |   |   | 2,452  |   |   |   | 1,781 |   |
| Share-based payments                |   |   | 788    |   |   |   | 24     |   |   |   | - |   |
|                                |   |   | 2,821  |   |   |   | 2,476  |   |   |   | 1,781 |   |

----

|                                                               | Functional currency | Country of incorporation | Legal shareholding                                                  |    Intercompany balances with Holding company |
|--------------------------------------------------------------------|---------------------|--------------------------|---------------------------------------------------------------------|--------------------------------------------------------------|
|                                                               |                |                     | 2016                                                                | 2015                                                         | 2014 | 2016 | 2015 | 2014 |   |
| Subsidiaries of the Company                                        |                |                     |            % | %                                                            | % |   |   |   |   |
| Caledonia Holdings Zimbabwe (Private) Limited                      | USD                 | Zimbabwe                 | 100                                                                 | 100                                                          | 100 | - | - | - |   |
| Caledonia Mining (Zambia) Limited(5)                               | ZMW                 | Zambia                   | -                                                                   | -                                                            | 100 | - | - | (15,499) |   |
| Caledonia Nama Limited(5)                                          | ZMW                 | Zambia                   | -                                                                   | -                                                            | 100 | - | - | (12,435) |   |
| Caledonia Mining Services Limited                                  | USD                 | Zimbabwe                 | 100                                                                 | 100                                                          | 100 | - | - | - |   |
| Eersteling Gold Mining Company Limited                             | ZAR                 | South Africa             | 100                                                                 | 100                                                          | 100 | (12,793) | (12,585) | (12,575) |   |
| Fintona Investments Proprietary Limited                            | ZAR                 | South Africa             | 100                                                                 | 100                                                          | 100 | (14,859) | (14,859) | (14,859) |   |
| Caledonia Mining South Africa Proprietary Limited                  | ZAR                 | South Africa             | 100                                                                 | 100                                                          | 100 | (87) | (3,806) | (3,806) |   |
| Greenstone Management Services Holdings Limited (4)                | USD                 | United Kingdom           | 100                                                                 | 100                                                          | 100 | 13,527 | 7,846 | 7,846 |   |
| Maid O’ Mist Proprietary Limited                             | ZAR                 | South Africa             | 100                                                                 | 100                                                          | 100 | - | - | - |   |
| Mapochs Exploration Proprietary Limited                            | ZAR                 | South Africa             | 100                                                                 | 100                                                          | 100 | - | - | - |   |
| Caledonia Holdings (Africa) Limited                                | USD                 | Barbados                 | 100                                                                 | 100                                                          | 100 | - | - | - |   |
| Blanket (Barbados) Holdings Limited                                | USD                 | Barbados                 | 100                                                                 | 100                                                          | 100 | - | - | - |   |
| Blanket Mine (1983) (Private) Limited(3)                           | USD                 | Zimbabwe                 | (2)49                                                               | 49                                                           | 49 | - | - | - |   |
| Blanket Employee Trust Services (Private) Limited (BETS) (1)  | USD                 | Zimbabwe                 | -                                                                   | -                                                            | - | - | - | - |   |

----

| Information about reportable segments 2016 |   | *Head office |   |   | Zimbabwe |   |    | South Africa |   |   | Inter-group eliminations adjustments |   |   | Total  |    |
|--------------------------------------------|--------|--------------|--------|--------|----------|--------|---------|--------------|--------|--------|--------------------------------------|--------|--------|--------|---------|
|                                       |   |         |   |   |     |   |    |         |   |   |                                 |   |   |   |    |
| Revenue                                    |   |         | -      |   |     |   | 61,992  |         |   |   | 11,348                               |   |   |   | (11,348 | ) |   |   | 61,992 |   |
| Royalties                                  |   |         | -      |   |     |   | (2,923  | )            |   |   | -                                    |   |   |   | -       |   |   |   | (2,923 | ) |
| Production costs                           |   |         | -      |   |     |   | (33,081 | )            |   |   | (10,185                              | )      |   |   | 11,180  |   |   |   | (32,086 | ) |
| Depreciation                               |   |         | -      |   |     |   | (3,733  | )            |   |   | (47                                  | )      |   |   | 289     |   |   |   | (3,491 | ) |
| Management fee**                           |   |         | -      |   |     |   | (3,960  | )            |   |   | 3,960                                |   |   |   | -       |   |   |   | - |   |
| Other income                               |   |         | 120    |   |     |   | 1,194   |         |   |   | 16                                   |   |   |   | -       |   |   |   | 1,330 |   |
| Other expenses                             |   |         | -      |   |     |   | (55     | )            |   |   | -                                    |   |   |   | -       |   |   |   | (55 | ) |
| Administrative expenses                    |   |         | (4,690 | )      |     |   | (128    | )            |   |   | (3,119                               | )      |   |   | 674     |   |   |   | (7,263 | ) |
| Share-based payment expenses               |   |         | (340   | )      |     |   | (342    | )            |   |   | (106                                 | )      |   |   | -       |   |   |   | (788 | ) |
| Net Foreign exchange gain                  |   |         | 22     |   |     |   | 2       |         |   |   | (529                                 | )      |   |   | -       |   |   |   | (505 | ) |
| Margin call on hedge                       |   |         | (435   | )      |     |   | -       |         |   |   | -                                    |   |   |   | -       |   |   |   | (435 | ) |
| Net finance cost                           |   |         | -      |   |     |   | (191    | )            |   |   | 15                                   |   |   |   | -       |   |   |   | (176 | ) |
| Sale of Blanket Mine treasury bills        |   |         | -      |   |     |   | 3,202   |         |   |   | -                                    |   |   |   | -       |   |   |   | 3,202 |   |
| Profit before tax                          |   |         | (5,323 | )      |     |   | 21,977  |         |   |   | 1,353                                |   |   |   | 795     |   |   |   | 18,802 |   |
| Tax expense                                |   |         | -      |   |     |   | (6,795  | )            |   |   | (922                                 | )      |   |   | -       |   |   |   | (7,717 | ) |
| Profit for the year*                       |   |         | (5,323 | )      |     |   | 15,182  |         |   |   | 431                                  |   |   |   | 795     |   |   |   | 11,085 |   |

----

| 2016                                       |   | Head office |    |   | Zimbabwe |   |    | South Africa |   |   | Inter-group elimination adjustments |   |   | Total  |    |
|--------------------------------------------|--------|-------------|---------|--------|----------|--------|---------|--------------|--------|--------|-------------------------------------|--------|--------|--------|---------|
|                                       |   |        |    |   |     |   |    |         |   |   |                                |   |   |   |    |
| Geographic segment assets:                 |   |        |    |   |     |   |    |         |   |   |                                |   |   |   |    |
| Current (excluding intercompany)           |   |        | 5,050   |   |     |   | 19,501  |         |   |   | 1,616                               |   |   |   | (375    | ) |   |   | 25,792 |   |
| Non-current (excluding intercompany)       |   |        | 40      |   |     |   | 65,824  |         |   |   | 388                                 |   |   |   | (1,335  | ) |   |   | 64,917 |   |
| Additions to property, plant and equipment |   |        | -       |   |     |   | 19,000  |         |   |   | 36                                  |   |   |   | 123     |   |   |   | 19,159 |   |
| Intercompany balances                      |   |        | 42,871  |   |     |   | -       |         |   |   | 7,080                               |   |   |   | (49,951 | ) |   |   | - |   |
|                                       |   |        |    |   |     |   |    |         |   |   |                                |   |   |   |    |   |   |   |   |   |
| Geographic segment liabilities             |   |        |    |   |     |   |    |         |   |   |                                |   |   |   |    |   |   |   |   |   |
| Current (excluding intercompany)           |   |        | (313    | )      |     |   | (8,801  | )            |   |   | (718                                | )      |   |   | -       |   |   |   | (9,832 | ) |
| Non-current (excluding intercompany)       |   |        | -       |   |     |   | (20,989 | )            |   |   | (517                                | )      |   |   | -       |   |   |   | (21,560 | ) |
| Intercompany balances                      |   |        | (14,900 | )      |     |   | (2,184  | )            |   |   | (32,867                             | )      |   |   | 49,951  |   |   |   | - |   |

|   Information about reportable segments 2015 | Head office | Zimbabwe | South Africa | Zambia |  Inter-group eliminations adjustments | Total    |
|--------------------------------------------------------|-------------|----------|--------------|--------|--------------------------------------------|----------|
|                                                   |        |     |         |   |                                       |     |
| Revenue                                                | 9,497       | 48,978   | 17,016       | -      | (26,514)                                   | 48,977   |
| Royalties                                              | -           | (2,455)  | -            | -      | -                                          | (2,455)  |
| Production costs                                       | -           | (30,955) | (12,174)     | -      | 13,110                                     | (30,019) |
| Depreciation                                           | -           | (3,559)  | (42)         | -      | 279                                        | (3,322)  |
| Other income                                           | 9           | 55       | 46           | -      | -                                          | 110      |
| Management fee                                         | -           | (4,140)  | 4,140        | -      | -                                          | -        |
| Administrative expenses                                | (5,802)     | (118)    | (8,135)      | (750)  | 7,183                                      | (7,622)  |
| Share-based payment expense                            | (24)        | -        | -            | -      | -                                          | (24)     |
| Net foreign exchange gain                              | 431         | -        | 2,419        | -      | -                                          | 2,850    |
| Finance income                                         | -           | -        | 1            | -      | -                                          | 1        |
| Finance expense                                        | (344)       | (190)    | (2)          | -      | -                                          | (536)    |
| Profit before income tax                               | 3,767       | 7,616    | 3,269        | (750)  | (5,942)                                    | 7,960    |
| Tax expense                                            | 522         | (2,616)  | (276)        | -      | -                                          | (2,370)  |
| Profit after income tax                                | 4,289       | 5,000    | 2,993        | (750)  | (5,942)                                    | 5,590    |

----

|   2015                           |   | Head office |    |   | Zimbabwe |   |    | South Africa |   |   | Zambia  |   |   | Inter-group eliminations adjustments |    |   | Total  |   |
|--------------------------------------------|--------|-------------|---------|--------|----------|--------|---------|--------------|--------|--------|---------|--------|--------|--------------------------------------|---------|--------|--------|--------|
| Geographic segment assets:                 |   |        |    |   |     |   |    |         |   |   |    |   |   |                                 |    |   |   |   |
| Current                                    |   |        | 8,857   |   |     |   | 10,386  |         |   |   | 4,918   |   |   |                                 | 1       |   |   |   | (600 | ) |   |   | 23,562 |   |
| Non-current (excluding intercompany)       |   |        | 40      |   |     |   | 50,613  |         |   |   | 370     |   |   |                                 | -       |   |   |   | (1,747 | ) |   |   | 49,276 |   |
| Additions to property, plant and equipment |   |        | -       |   |     |   | 18,385  |         |   |   | 143     |   |   |                                 | -       |   |   |   | (335 | ) |   |   | 18,193 |   |
| Intercompany balances                      |   |        | 74,007  |   |     |   | 1,509   |         |   |   | 7,958   |   |   |                                 | -       |   |   |   | (83,474 | ) |   |   | - |   |
|                                       |   |        |    |   |     |   |    |         |   |   |    |   |   |                                 |    |   |   |   |   |   |   |   |   |   |
| Geographic segment liabilities             |   |        |    |   |     |   |    |         |   |   |    |   |   |                                 |    |   |   |   |   |   |   |   |   |   |
| Current                                    |   |        | (433    | )      |     |   | (6,497  | )            |   |   | (1,469  | )      |   |                                 | -       |   |   |   | - |   |   |   | (8,397 | ) |
| Non-current (excluding intercompany)       |   |        | -       |   |     |   | (13,621 | )            |   |   | (459    | )      |   |                                 | -       |   |   |   | - |   |   |   | (14,080 | ) |
| Intercompany balances                      |   |        | (16,734 | )      |     |   | (3,507  | )            |   |   | (37,290 | )      |   |                                 | (25,943 | )      |   |   | 83,474 |   |   |   | - |   |
|                                       |   |        |    |   |     |   |    |         |   |   |    |   |   |                                 |    |   |   |   |   |   |   |   |   |   |

|   Information about reportable segments 2014 |   | Head office |   |   | Zimbabwe |   |    | South Africa |   |   | Zambia |   |   | Inter-group eliminations adjustments |   |   | Total  |   |
|--------------------------------------------------------|--------|-------------|--------|--------|----------|--------|---------|--------------|--------|--------|--------|--------|--------|--------------------------------------|--------|--------|--------|--------|
|                                                   |   |        |   |   |     |   |    |         |   |   |   |   |   |                                 |   |   |   |   |
| Revenue                                                |   |        | 3,719  |   |     |   | 53,513  |         |   |   | 7,167  |   |   |                                 | -      |   |   |   | (10,886 | ) |   |   | 53,513 |   |
| Royalties                                              |   |        | -      |   |     |   | (3,522  | )            |   |   | -      |   |   |                                 | -      |   |   |   | - |   |   |   | (3,522 | ) |
| Production costs                                       |   |        | -      |   |     |   | (28,836 | )            |   |   | (6,256 | )      |   |                                 | -      |   |   |   | 6,884 |   |   |   | (27,908 | ) |
| Depreciation                                           |   |        | -      |   |     |   | (3,522  | )            |   |   | (18    | )      |   |                                 | -      |   |   |   | - |   |   |   | (3,540 | ) |
| Other income                                           |   |        | -      |   |     |   | 16      |         |   |   | 9      |   |   |                                 | -      |   |   |   | - |   |   |   | 25 |   |
| Management fee                                         |   |        | -      |   |     |   | (4,680  | )            |   |   | 4,680  |   |   |                                 | -      |   |   |   | - |   |   |   | - |   |
| Administrative expenses                                |   |        | (3,115 | )      |     |   | (436    | )            |   |   | (2,942 | )      |   |                                 | (894   | )      |   |   | - |   |   |   | (7,387 | ) |
| Impairment                                             |   |        | -      |   |     |   | (81     | )            |   |   | -      |   |   |                                 | (97    | )      |   |   | - |   |   |   | (178 | ) |
| Net foreign exchange gain                              |   |        | 49     |   |     |   | -       |         |   |   | 1,016  |   |   |                                 | -      |   |   |   | - |   |   |   | 1,065 |   |
| Finance income                                         |   |        | 14     |   |     |   | -       |         |   |   | -      |   |   |                                 | -      |   |   |   | - |   |   |   | 14 |   |
| Finance expense                                        |   |        | -      |   |     |   | (154    | )            |   |   | -      |   |   |                                 | -      |   |   |   | - |   |   |   | (154 | ) |
| Profit before income tax                               |   |        | 667    |   |     |   | 12,598  |         |   |   | 3,656  |   |   |                                 | (991   | )      |   |   | (4,002 | ) |   |   | 11,928 |   |
| Tax expense                                            |   |        | (1,067 | )      |     |   | (3,594  | )            |   |   | (1,321 | )      |   |                                 | -      |   |   |   | - |   |   |   | (5,982 | ) |
| Profit after income tax                                |   |        | (400   | )      |     |   | 9,004   |         |   |   | 2,335  |   |   |                                 | (991   | )      |   |   | (4,002 | ) |   |   | 5,946 |   |

----

|   2014                           |   | Head office |    |   | Zimbabwe |   |    | South Africa |   |   | Zambia  |   |   | Inter-group eliminations adjustments |    |   | Total  |   |
|--------------------------------------------|--------|-------------|---------|--------|----------|--------|---------|--------------|--------|--------|---------|--------|--------|--------------------------------------|---------|--------|--------|--------|
| Geographic segment assets:            |   |        |    |   |     |   |    |         |   |   |    |   |   |                                 |    |   |   |   |
| Current                                    |   |        | 10,768  |   |     |   | 10,448  |         |   |   | 11,782  |   |   |                                 | 44      |   |   |   | (1,300 | ) |   |   | 31,743 |   |
| Non-current (excluding intercompany)       |   |        | 48      |   |     |   | 35,818  |         |   |   | 306     |   |   |                                 | -       |   |   |   | (1,436 | ) |   |   | 34,736 |   |
| Additions to property, plant and equipment |   |        | -       |   |     |   | 7,022   |         |   |   | 47      |   |   |                                 | 97      |   |   |   | - |   |   |   | 7,166 |   |
| Intercompany balances                      |   |        | 101,920 |   |     |   | 1,503   |         |   |   | 29,060  |   |   |                                 | -       |   |   |   | (132,483 | ) |   |   | - |   |
|                                       |   |        |    |   |     |   |    |         |   |   |    |   |   |                                 |    |   |   |   |   |   |   |   |   |   |
| Geographic segment liabilities             |   |        |    |   |     |   |    |         |   |   |    |   |   |                                 |    |   |   |   |   |   |   |   |   |   |
| Current                                    |   |        | (994    | )      |     |   | (2,412  | )            |   |   | (1,566  | )      |   |                                 | -       |   |   |   | - |   |   |   | (4,972 | ) |
| Non-current (excluding intercompany)       |   |        | -       |   |     |   | (10,571 | )            |   |   | (593    | )      |   |                                 | -       |   |   |   | - |   |   |   | (11,164 | ) |
| Intercompany balances                      |   |        | (33,955 | )      |     |   | (902    | )            |   |   | (72,406 | )      |   |                                 | (25,220 | )      |   |   | 132,438 |   |   |   | - |   |

----

| 31 | Non-controlling interests |
|----|---------------------------|

| Blanket Mine (1983) (Private) Limited NCI % - 16.2% |   |   |    |   |
|-----------------------------------------------------|--------|--------|---------|--------|
|                                                |   | 2016   |    |   | 2015 |   |   | 2014 |   |
|                                                |   |   |    |   |   |   |   |   |   |
| Current assets                                      |   |   | 13,151  |   |   |   | 10,386 |   |   |   | 10,448 |   |
| Non-current assets                                  |   |   | 65,823  |   |   |   | 50,613 |   |   |   | 37,322 |   |
| Current liabilities                                 |   |   | (8,698  | )      |   |   | (6,497 | ) |   |   | (2,412 | ) |
| Non-current liabilities                             |   |   | (20,185 | )      |   |   | (13,621 | ) |   |   | (10,571 | ) |
| Net assets                                          |   |   | 50,091  |   |   |   | 40,881 |   |   |   | (34,787 | ) |
|                                                |   |   |    |   |   |   |   |   |   |   |   |   |
| Carrying amount of NCI                              |   |   | 3,708   |   |   |   | 1,504 |   |   |   | 693 |   |
|                                                |   |   |    |   |   |   |   |   |   |   |   |   |
|                                                |   |   |    |   |   |   |   |   |   |   |   |   |
| Revenue                                             |   |   | 61,992  |   |   |   | 48,977 |   |   |   | 53,515 |   |
| Profit                                              |   |   | 15,800  |   |   |   | 5,000 |   |   |   | 8,860 |   |
| Total comprehensive income                          |   |   | 15,800  |   |   |   | 5,000 |   |   |   | 8,860 |   |
|                                                |   |   |    |   |   |   |   |   |   |   |   |   |
| Profit allocated to NCI                             |   |   | 2,559   |   |   |   | 811 |   |   |   | 1,511 |   |
| Dividend paid to NCI                                |   |   | (355    | )      |   |   | - |   |   |   | 770 |   |

----

|   | CALEDONIA MINING CORPORATION PLC      |
|--------|---------------------------------------|
|   |                                  |
| By:    | /s/ Mark Learmonth                    |
|   | Mark LearmonthChief Financial Officer |

----