CITY OF EKURHULENI METROPOLITAN MUNICIPALITY (previously known as EKURHULENI METROPOLITAN
MUNICIPALITY) CNR CROSS & ROSES STREETS GERMISTON (WHOSE CHOSEN DOMICILIUM ADDRESS IS C/O KLOPPER JONKER
ATTORNEYS, CHAMBER ON TERRACE, FIRST FLOOR, TERRACE BUILDING , 1 & 3 EATON
TERRACE , NEW REDRUTH, ALBERTON)  PERFORMANCE GUARANTEE NUMBER: 175-02-0183033-G  Dear Sirs Absa Bank Limited, Registration Number 1986/004794/06, of
Absa Towers North, 180 Commiss ioner Street, Johannesburg, 2001, South Africa
from where this Guarantee is issued (the" Guarantor") hereby
guarantees the due and punctual payment by Ergo Mining (Pty) Ltd, Registration
Number 2007/004886/07 ("E RGO" ) to City of Ekurhuleni  Metropolitan 
Municipality  (previously   known   as   Ekurhuleni   Metropolitan  
Municipality   (the "Benefi ciary" and/or" EMM" ) up to but
not beyond the maximum aggregate sum, plus interest thereon at the rate of 6.4%
per annum calculated daily and compounded monthly, ("the maximum aggregate
sum") which is currently invested in the trust account of ERGO's attorneys
of record, Mendelow Jacobs which is the total amount of R117,233,868.40 (One
Hundred and Seventeen Million Two Hundred and Thirty Three Thousand Eight
Hundred and Sixty Eight Rand and Forty Cents) plus interest thereon at the rate
of 6.4% per annum calculated daily and compounded monthly ("the Guaranteed
Amount ").  1.            The Guaranteed Amount is in respect of
litigation pending in two matters ("the two proceedings") namely:  1.1.         An application in the High Court of South
Africa, Gauteng Local Division, Johannesburg under case number 14/45277
("the Main Application ") and  1.2.         An action in the High Court of South Africa,
Gauteng Local Division, Johannesbugr  under case number 19222/17 ("the EMM
Action").  2.            The maximumaggregate sum is currently
investedin terms of Section 78(2A) of the Attorneys Act No 53 of 1979 as
amended. In an account which is held at the Sandton Branchof First National
Bank, a division of FirstRandBank Limited under account number 74541226011.  3.            This Guarantee shall be in substitutionof the
maximum aggregate sum as set out at paragraph 1 above. In terms of this
guarantee which has been duly signed by the Guarantor, the maximum aggregate
sum held in the trust account shall be paid to ERGO  4.            The Guarantor guarantees the due and punctual
payment of ERGO's liability and obligation to pay the maximum aggregate sum to
the Beneficiary as set out at paragraph 6 below, up to but not beyond the
Guaranteed Amount.  5.            The Beneficiary shall be entitled to demand
payment from the Guarantor upon a court of final instance ordering ERGO to pay
EMM an amount sounding in money, pursuant to the action, up to but not beyond
the Guaranteed amount:


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1.            In the event of the court ordering that ERGO
pay EMM a lesser amount than the Guaranteed amount, this lesser amount shall
then be paid to EMM.  Alternatively   2.            Should ERGO and EMM enter into a settlement
agreement in regard to the aforementioned proceedings on terms that require
payment of an amount of money, up to but not beyond the Guaranteed amount.  3.            This demand shall be in writing and shall be
made by the attorneys representing the Beneficiary namely Klopper Jonker
Attorneys, to BGI Centre, 180 Commissioner Street, Johannesburg 2001 a copy of
which shall be delivered to Mendelow Jacobs, Unit 8c, 1st Floor, 3 Melrose
Boulevard, Melrose Arch, Melrose North, Johannesburg, for the attention of Alan
Jacobs and shall record:  That a court of final instance has ordered payment of an
amount of money by Ergo to EMM, in terms of an order as referred to above, a
copy of the order shall be attached to the written demand, Alternatively   5.1.                         That the Guaranteed Amount is
due and payable by ERGO in terms of a written Settlement Agreement between ERGO
and the Beneficiary, which written agreement has been made an Order of Court, a
copy of the Order of Court shall be attached to the demand.  6.            The Guarantor will pay on written demand, from
attorneys Klapper Jonker and will not determine the validity of the demand or
become party to any claim or dispute of any nature which any party may allege.  7.            The original Guarantee shall be held in trust
by Mendelow Jacobs and shall be furnished to the Guarantor once written demand
is made for payment as set out in paragraph 6 above.  8.            Payment by the Guarantor under this guarantee
will only be made against the surrender of the original guarantee to the
Guarantor which guarantee shall be delivered by Mendelow Jacobs to the
Guarantor within ten days after written demand by Klapper Jonker to Mendelow
Jacobs, failing which the Beneficiary shall be entitled to claim the amount
owing to the Beneficiary at that point in time directly from ERGO and ERGO
shall not be entitled to raise the defence of prescription in respect of such
claim by the Beneficiary.  9.            This Guarantee shall remain valid until a
court of final instance has determined the EMM Action Matter. In the event that
the Beneficiary is not successful with its action matter, Mendelow Jacobs
attorneys shall address a demand in writing to the Guarantor and will deliver a
copy of the written demand together with a copy of the court order to Klapper
Jonker and the Guarantor The written demand shall record that the Beneficiary
has not been successful in the action and declare in writing to ERGO and the
that the Guarantee is obsolete from the date of such demand and is of no force
and effect from such date.


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10.          All demands must be signed by the authorised
signatories, namely attorney Willem Viviers of Klapper Jonker attorneys,
alternatively any other person in the employ of Klapper Jonker attorneys who
has been duly authorized in writing by attorney Willem Viviers to make such
demand and Alan Jacobs, alternativeyl Ronald Mendelow on behalf of Mendelow
Jacobs attorneys.  11.          The Guarantor further agrees that the
Beneficiary may recover from the Guarantor the Guaranteed Amount,
notwithstanding that the Beneficiary may hold other guarantees in respect of
the said account.  12.          This Guarantee is neither negotiable nor
transferrable and is restricted to the payment of a sum of money only and
limited to the Guaranteed Amount.  13.          ERGO shall be responsible for all costs in
respect of this guarantee.   14.          This Guarantee shall be governedby and
construed in accordance with the laws of the Republic of South Africa and shall
be subject to the jurisdiction of the South African courts.  15.          The Guarantor accepts that the Beneficiary's
address reflected above is the Beneficiary's domicilium citandi et executandi
for all purposes in connection with this Guarantee.  16.          The Guarantor's liability under this Guarantee
is principal in nature and is not subject to any agreement. The Guarantor's
liability shall not be reduced, or in any way be affected by any alteration of
the terms of the agreement or any other arrangements between ERGO and the
Beneficiary, whether oral or in writing.  17.          This Guarantee is irrevocable.  Signed at Johannesburg on this 8th day of January 2019    for and on behalf of Absa Bank Limited Boipelo Meche BGI Case Manager  for and on behalf of Absa Bank Limited Almarie Boshoff BGI Centre Manager


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