Document:

Exhibit 4.26

	SENIOR FACILITY AGREEMENT Amongst NEDBANK LIMITED (acting through its NEDBANK
CAPITAL division) and HARMONY GOLD MINING COMPANY LIMITED and THE GUARANTORS
LISTED IN SCHEDULE 2 DENEYS | REITZ ATTORNEYS

 

	Table of Contents
                 1.      PARTIES                                                                                           1
                 2.    DEFINITIONS AND INTERPRETATION                                                                      1
                 3.     INTRODUCTION                                                                                      24
                 4.      CONDITIONS TO ADVANCE                                                                            25
                 5.      FACILITY                                                                                         26
                 6.     PURPOSE                                                                                           26
                 7.     UTILISATION                                                                                       26
                 8.      INTEREST                                                                                         29
                 9.     REPAYMENT                                                                                         29
                 10.   PREPAYMENT                                                                                         30
                 11.    PAYMENTS                                                                                          32
                 12.   BREAKAGE COSTS AND BREAKAGE GAINS                                                                  34
                 13.    ILLEGALITY                                                                                        34
                 14.    GUARANTEE AND INDEMNITY                                                                           35
                 15. WARRANTIES AND REPRESENTATIONS
                                                                                                                          38
                 16.    FINANCIAL INFORMATION                                                                             49
                 17.    POSITIVE UNDERTAKINGS                                                                             55
                 18.    NEGATIVE UNDERTAKINGS                                                                             58
                 19. FINANCIAL

                 COVENANT
                 19. FINANCIAL COVENANT
                                                                                                                          60
                 20. EVENTS OF DEFAULT 64 21. TAXES 71 22. TAX RECEIPTS 73 23.
                 INCREASED COSTS 73 24. CERTIFICATE OF INDEBTEDNESS 75 25.
                 SET-OFF 75 26. CHANGE OF PARTY 75 27. INTEREST ON ARREAR
                 AMOUNTS AND INDEMNITY 80 28. FACILITY AGENT 81 29.
                 CONFIDENTIALITY 85 30. FEES AND EXPENSES 88 31. NOTICES AND 90
                 DOMICILIA
                 32. GOVERNING LAW 92 33. JURISDICTION 93 34. SEVERABILITY 93
                 35. GENERAL 93 36. COUNTERPARTS 94 SCHEDULE 1 : CONDITIONS 103
                 SCHEDULE 2 : THE GUARANTORS 107 SCHEDULE 3 : DISCLOSED
                 ENCUMBRANCES 108 SCHEDULE 4 : DISCLOSED INDEBTEDNESS 109
                 SCHEDULE 5 : DISCLOSED LOANS 111 SCHEDULE 6 : DISCLOSED
                 POTENTIAL ENVIRONMENTAL CLAIM 112 SCHEDULE 7 : TRANSACTION
                 SECURITY 113 SCHEDULE 8 : FORM OF COMPLIANCE CERTIFICATE 114
                 SCHEDULE 9 : FORM OF LENDER'S ACCESSION UNDERTAKING 116

 

	SCHEDULE 10 : AGREED FORM OF CESSION AND DELEGATION
AGREEMENT ......................................................                        118
SCHEDULE 11 : FORM OF CONFIDENTIALITY UNDERTAKING    131
SCHEDULE 12: PRO FORMA MANAGEMENT ACCOUNT ....................................          139
SCHEDULE 13: LAST TAX RETURN YEAR                             141

 

	                               TERM LOAN AGREEMENT
1.      PARTIES
1.1           The Parties to this Agreement are:
1.1.1                NEDBANK LIMITED (acting through its NEDBANK CAPITAL division);
1.1.2                HARMONY GOLD MINING COMPANY LIMITED; and
1.1.3               THE GUARANTORS AS LISTED IN SCHEDULE 2.
1.2           The Parties agree as set out below.
2. DEFINITIONS AND INTERPRETATION
             2.1 The headings to the clauses and schedules of this Agreement are
inserted for reference purposes only and shall in no way govern or affect the
interpretation hereof nor modify nor amplify the terms of this Agreement nor any
clause or schedule hereof.
             2.2 Unless inconsistent with the context, the expressions set forth
below shall bear the following meanings and cognate expressions shall bear
corresponding meanings:
2.2.1               "Accession Undertaking" means in relation to a New Lender an undertaking substantially in the
form set out in Schedule 9 (Form of Accession Undertakings);
2.2.2               "Advance" means, save as otherwise provided hereto, the advance made or to be made by the
Lenders hereunder in the amount of R2 000 000 000 (two billion Rand);

 

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2.2.3               "Advance Condition Documents" means the documents listed in Part 1 of Schedule 1 (Advance
Condition Documents);
                    2.2.4 "Advance Conditions" means the conditions to the
making of the Advance listed in Part 2 of Schedule 1 (Advance Conditions);
                    2.2.5 "Advance Date" means the day upon which the Lenders
make the Advance hereunder, being 28 September 2007 or such later date as may be
agreed between the Parties in writing;
                    2.2.6  "Agreement" means this Senior Facility Agreement read together with the Schedules
hereto;
                    2.2.7  "Applicable Margin" means 2.75% (two comma seven five percent) nacm;
                    2.2.8  "ARMgold means African Rainbow Minerals Gold Limited (Registration No.
1997/035869/06), a public company duly incorporated in accordance
with the company laws of South Africa;
2.2.9 "Auditors" means the Borrower's auditors from time to time provided that
the Borrower's auditors shall only, save with the prior written consent of the
Lenders, be any one or more of Deloitte & Touche, KPMG Inc., Ernst & Young or
PricewaterhouseCoopers Inc.;
2.2.10 "Authorised Signatory" means a person or persons duly authorised to bind
the Borrower in terms of this Agreement and in respect of whom the Borrower
shall have delivered to the Lenders certified specimens of such person's or
persons' signature(s) together with evidence satisfactory to the Lenders that
such person is duly authorised to bind the Borrower;
2.2.11 "Authorisation" means an authorisation, consent, approval, resolution,
licence, exemption, filing, notarisation or registration, as the case may be;

 

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2.2.12              "Available Facility" means at any time and save as otherwise provided herein, R2 000 000 000
(two billion Rand);
                    2.2.13 "Bank Costs" means the cost, expressed as a
percentage (rounded to the second decimal place) and on a nacm rate basis, to
the Lenders in providing, maintaining or funding the Advance under the Facility,
pursuant to any Law in force within the Republic of South Africa, which cost
shall be determined by the Original Lender at the commencement of each Interest
Period and notified to the Borrower in writing and which costs shall not exceed
the costs that the Original Lender would incur if it remains the sole Lender;
                    2.2.14 "Borrower"    means   Harmony   Gold    Mining   Company   Limited (Registration No.
1950/038232/06), a public company duly incorporated
in accordance with the company laws of South Africa;
2.2.15              "Breakage Costs" means the amount (if any) by which;
2.2.15.1 the interest (excluding the Applicable Margin) which a Lender should
have received for the period from the date of receipt of all or any part of its
participation in the Advance or Unpaid Sum to the last day of the current
Interest Period in respect of the Advance or Unpaid Sum, had the amount then due
or Unpaid Sum received been paid on the last day of that Interest Period;
exceeds;
2.2.15.2 the amount which that Lender would be able to obtain by placing an
amount equal to the amount then due or Unpaid Sum received by it on deposit with
a leading bank in the Johannesburg interbank market for a period starting on the
Business Day following receipt or recovery and ending on the last day of the
current Interest Period;

 

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2.2.16               "Breakage Gains" means the amount (if any) by which:
                           2.2.16.1 the amount which that Lender would be able to obtain by placing an amount
equal to the amount then due or Unpaid Sum received by it
on deposit with a leading bank in the Johannesburg interbank market
for a period starting on the Business Day following receipt or recovery and ending on the last day of the current
Interest Period;
exceeds;
                           2.2.16.2 the interest which  a Lender should have received for the period from the date
of receipt of all or any part of its participation in the Advance or Unpaid Sum
to the last day of the current Interest Period in respect of the Advance or
Unpaid Sum, had the amount then due or Unpaid Sum received been paid on the last
day of that Interest Period;
2.2.17 "Business Day" means any day other than a Saturday, Sunday or an official
public holiday in South Africa (in accordance with the Public Holidays Act,
1994) on which banks are open for business in South Africa;
2.2.18              "Cash Consideration" shall have the meaning given to it in clause 10.3.2
(Mandatory Prepayment: Disposal of South African Assets);
2.2.19 "Cession and Delegation Agreement" means the written agreement so titled
entered into between a Lender and a New Lender substantially in the form set out
in Schedule 10 (Agreed Form of Cession and Delegation Agreement), or any other
form agreed to between the Borrower and the Facility Agent;
2.2.20               "Companies Act" means the Companies Act, 1973;

 

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2.2.21               "Compliance Certificate" means a certificate substantially in the form of the letter set out
in Schedule 8 (Form of Compliance Certificate);
                     2.2.22"Confidentiality Undertaking" means a confidentiality undertaking in the form set out
in Schedule 11 (Form of Confidentiality Undertaking) or
any other form agreed between the Borrower and the Facility Agent;
                     2.2.23"Constitutional Documents" means, in respect of any person at any time, the then
current and up-to-date constitutional documents of such person at such time
(including, without limitation, such person's memorandum and articles of
association, certificate of incorporation and articles of incorporation);
2.2.24 "Control" means in relation to a company the shares of which are not
listed on a stock exchange any one of the following, namely if anothercompany or
legal entity or person (whether alone or pursuant to an agreement wife others):
                          2.2.24.1 holds or controls more than 50% (fifty
percent) of the voting rights (taking
into account when such voting rights can be exercised) in
that company; or
                          2.2.24.2  has the right to appoint or remove the majority of that company's board of
directors; or
                          2.2.24.3  has the power to ensure the majority of that company's board of directors will
act in accordance with its wishes;
or if the shares of the company are listed on a stock exchange, "Control" means:
                          2.2.24.4  the holding of shares or the aggregate of holdings of shares or other
securities in a company entitling the holder thereof to exercise, or

 

	                                                                                                             Page 6
                                              cause to be exercised 35% (thirty-five percent) or more of the voting
rights at shareholder meetings of the company irrespective of whether such
holding or holdings confers de facto control, provided that should there be
other shareholders holding more than 35% (thirty-five percent), 35% (thirty-five
percent) shall be read to refer to "the largest percentage shareholding held at
the time": or
2.2.24.5 the holding or control by a shareholder or member alone or pursuant to
an agreement with other shareholders or members of more than 35% (thirty-five
percent) of the voting rights in the company irrespective of whether such
holding or holdings confers de facto control, provided that should there be
other shareholders holding more than 35% (thirty-five percent), 35% (thirty-five
percent) shall be read to refer to "the largest percentage shareholding held at
the time";
                    2.2.25 "Default means an Event of Default or any event or
circumstances which would (with the expiry of a grace period, the giving of
notice, the making of any determination under the Finance Documents or any
combination of the foregoing) be an Event of Default;
                           2.2.26   "Default Interest Rate" means the greater of the Prime Rate plus 2% (two
percent), the Repo Rate plus 2% (two percent), or the Interest Rate
plus 2% (two percent);
                           2.2.27   "Deposit Account" means the bank account specified in clause 7.1 (Utilisation);
2.2.28              "Discharge Date"' means the date on which:
2.2.28.1 all the Liabilities (other than contingent liabilities in respect of
continuing indemnities under the Finance Documents under which no claim has been
made and which remain undischarged and

 

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payments which may be set aside in terms of clause 2.2.613) have
been fully paid and discharged; and
2.2.28.2 the Lenders have no commitment, obligation or liability (whether actual
or contingent) to lend money or provide other financial accommodation to any
Obligor under any Finance Document;
                    2.2.29 "Disposal" means a sale, lease, licence, transfer,
loan or other disposal by a person of any asset, undertaking or business
(whether by a voluntary or involuntary single transaction or series of
transactions);
                    2.2.30 "Distribution" means any payment by way of interest,
principal, dividend, fee, royalty or other distribution or payment by or on
behalf of the Borrower to or for the account of any Shareholder or any person
that directly or indirectly controls or is controlled by any Shareholder;
                    2.2.31 "Encumbrance" means any mortgage, pledge, lien,
assignment or cession conferring security, hypothecation, security interest,
preferential right or trust arrangement or any other agreement or arrangement
the effect of which is the creation of security;
                    2.2.32 "Event of Default" means any one or more of the
events or circumstances described as an event of default as set out in clause 20
(Events of Default);
                    2.233  "Environmental Claim" means any claim or proceedings by any person pursuant to an
Environmental Law;
2.2.34 "Environmental Law" means any law applicable to the business conducted by
the Group at the relevant time in any jurisdiction in which the Group conducts
business which relates to the pollution, degradation or protection of the
environment or harm to or the protection of human health, animals or plants and
including, without limitation, the National Environmental Management Act, 1998
and the National Water Act, 1998;

 

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2.2.35 "Environmental Permits" means any permit, licence, consent, approval and
other authorisation and the filing of any notification, report or assessment
required under any Environmental Law for the operation of the business of the
Group on or from the properties owned or used by the Group;
                     2.2.36"Facility" means the term loan facility granted by the Lenders to the Borrower in
terms of this Agreement;
2.2.37               "Facility Agent" means Nedbank;
2.2.38 "Facility Outstandings" means, at any time and in respect of any Lender,
the aggregate amount at that time of all amounts of principal and accrued and
unpaid interest due and payable to that Lender at that time under the Finance
Documents;
                    2.2.39 "Fee Letter" means the letter dated on or about the
Signature Date between the Borrower and Nedbank, setting out the fees payable to
Nedbank under clause 30.1 (Arranging and Underwriting Fees);
                    2.2.40 "Final Repayment Date" means 29 December 2008 and if
that date is not a Business Day, the next Business Day in that calendar month
(if there is one) or the preceding Business Day (if there is not), or the date
upon which the Loan becomes repayable by the Borrower pursuant to the provisions
of this Agreement;
2.2.41              "Finance Documents" means:
2.2.41.1                  this Agreement;
2.2.41.2                  the Intercreditor Agreement;
2.2.41.3                  the Security Documents;

 

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2.2.41.4                   any Accession Undertaking;
2.2.41.5                   any Cession and Delegation Agreement;
                           2.2.41.6 and any other agreement or document that may be designated as a "Finance
Document" by written agreement between the Lender and
the Borrower; and
                           2.2.41.7 any amendment agreement to any Finance Documents listed in 2.2.41.1 to
2.2.41.6;
2.2.42              "Finance Parties" means;
2.2.42.1                   the Lenders; and
2.2.42.2                     the Facility Agent;
and "Finance Party" means, as the context requires, any one of them;
2.2.43               "Financial Close" means the earlier of:
                           2.2.43.1 the date of the notice by Ac Facility Agent referred to m clause 4.1
(Conditions to Advance); and
2.2.43.2                   the date on which the Advance is made;
2.2.44              "Financial Covenant" means the financial covenant referred to in clause 19 (Financial
Covenant);
                    2.2.45 "Financial Year" means, at any time, the annual
accounting period of the Group ending on 30 June in each calendar year;
                    2.2.46  "Group" means the Borrower and each Group Company from time to time;

 

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2.2.47              "Group Company" means:
2.2.47.1                   any subsidiary of the Borrower; and
                           2.2.47.2 any partnership, unincorporated joint venture or trust in which the Borrower
has a, direct or indirect, partnership or beneficial Interest
of 50% (fifty percent) or more; and
                           2.2.47.3 any company, partnership, unincorporated joint venture or trust which is
Controlled by the Borrower,
and Group Companies" means, as the context requires, all of them;
                    2.2.48 "Guarantee" means the joint and several guarantee
provided by each of the Guarantors in terms of clause 14 (Guarantee and
Indemnity) in favour of the Finance Parties for the obligations of the Borrower
hereunder;
                    2.2.49 "Guarantors" means the companies listed in Schedule 2
(The Guarantors), and "Guarantor" means, as the context requires, any one of
them;
2.2.50 "Hidden Valley Project" means the project which involves the construction
of a gold and silver mine, which project comprises 4 (four) exploration licences
of 966km(2) (nine hundred and sixty-six square kilometres) is the Wau District
of Morobe Province, Papua New Guinea, and is located 210km (two hundred and ten
kilometres) north-northwest of Pott Moresby and 90km (ninety kilometres)
south-southwest of Lae;
2.2.51 "IFRS" means international accounting standards within the meaning of IAS
Regulation 1606/2002 to the extent applicable to the relevant financial
statement;

 

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2.2.52 "Indebtedness" shall be widely construed so as to include any obligation
(whether incurred as principal or surety) for the payment or repayment of money,
whether present or future, actual or contingent;
                    2.2.53 "Intellectual Property Rights" means any patents,
trade marks, service marks, designs, trading or business names, copyrights,
design rights, moral rights, inventions, confidential information, know-how,
domain names, topographical or similar rights, database or other intellectual
property rights and interests and the benefit of all applications and rights to
USE (including by way of licence) such assets of each Obligor, in each case
whether registered or unregistered;
                    2.2.54 "Intercreditors Agreement" means the written
agreement titled "Intercreditor Agreement" to be entered into between the
Facility Agent. the Original Lender and a party who becomes a Lender in
accordance with clause 26 (Change of Party) on or before any Cession and
Delegation Agreement becomes effective;
2.2.55              "Interest Payment Date" means the last day of each Interest Period;
                    2.2.56 "Interest Period" means each period of 3 (three)
months (or part thereof) during the Term commencing on the Advance Date and if:
                          2.2.56.1  an Interest Period would otherwise end on a day which is not a Business Day,
that Interest Period shall instead end on the next Business Day in that calendar
month (if there is one) or the preceding Business Day (if there is not); or
                          2.2.56.2 an Interest Period would otherwise overrun
the Final Repayment Date, it shall
be shortened so that it ends on that date;
                    2.2.57 "Interest Rate" means a fixed interest rate for each
interest Period equal to the JIBAR plus the Applicable Margin plus Banking
Costs;

 

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2.2.58              "J1BAR" means the rate per annum determined by the Facility Agent to be equal to either:
                           2.2.58.1 the quarter-year (91-day) Johannesburg Inter-Bank Agreed Rate as quoted by the
South African futures Exchange and published on the Quotation Date to fund an
amount equal to the Advance for the Interest Period at or about 11h00 and which
appears on the Reuters screen SAFEY page; or
                           2.2.58.2 if no such rate appears on such display or if no such display is then
available for such Interest Period, the arithmetic mean (rounded upwards, if not
already such a multiple, to the nearest whole multiple of 1/16th of 1% (one
percent) of the mid-market deposit rates for South African currency deposits as
quoted on the respective money markets Reuters page by the Reference Banks at or
about 11h00 on the Quotation Date for such Interest Period:
converted to a naem rate;
2.2.59              "Legal Adviser" means Deneys Reitz Inc. of 82 Maude Street, Sandton;
2.2.60              "Lenders" means:
2.2.60.1            the Original Lender
2.2.60.2 any person who has become a Party as a Lender in accordance with the
terms of clause 26 (Change of Party); which in each case has not ceased to be a
Party in accordance with the terms of this Agreement and "Lender" means, as the
context requires, any one of them;

 

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2.2.61 "Liabilities" means all present and future liabilities and obligations at
any time of an Obligor to the Finance Parties under the Finance Documents, both
actual and contingent and whether incurred solely or jointly or in any other
capacity together with any of the following matters relating to or arising in
respect of those liabilities or obligations:
2.2.61.1                   any refinancing, novation, deferral or extension;
2.2.61.2                   any claim for damages or restitution; and
2.2.61.3 any claim as a result of any recovery by that Obligor of a payment or
discharge on the grounds of preference, and any amounts which would be included
in any of the above but for any discharge, non-provability or unenforceability
of those amounts in any insolvency or other proceedings;
                    2.2.62 "Loan" means the aggregate principal amount for the
time being outstanding hereunder;
                    2.2.63 "Material Adverse Change" means a change in the
circumstances existing as at the Signature Date which in the reasonable opinion
of the Facility Agent has or will have a material adverse effect on:
2.2.63.1                   the business, assets, operations, property or condition (consolidated financial or
otherwise) of any of the Obligors or the Group taken as a whole;
2.2.63.2                  the ability of any Obligor to perform its obligations under any Finance Document to
which it is a party; or
2.2.63.3                  the validity, legality or enforceability of the material terms of any Finance Document
or the rights or remedies of the Lenders thereunder;

 

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2.2.64 "Nedbank" means Nedbank Limited (acting through its Nedbank Capital
division) (Registration No 1951/000009/06), a public company and registered bank
duly incorporated in accordance with the company and banking laws of South
Africa;
                     2.2.65         "New Lender"  has the meaning given thereto in clause 26.2 (Assignment and
Transfers by the Lenders);
2.2.66               "Obligors" means collectively, the Borrower and the Guarantors and "Obligor" shall be a
reference to any one of them, as required by the context;
                    2.2.67 "Original Financial Statements" means the draft
consolidated interim financial statements of the Group for its financial year
ended 30 June 2007, as provided by the Borrower to the Facility Agent on or
before the Signature Date;
2.2.68              "Original Lender" means Nedbank;
                    2.2.69 "Parties" means the Borrower, line Original Lender,
the Facility Agent, the Guarantors and any person acceding into this Agreement
as a Lender, and "Party" means, as the context requires, any one of them;
2.2.70              "Permitted Disposal" means:
2.2.70.1                   any Disposal made by any Group Company on arm's length terms if that Disposal is not
otherwise restricted by a term of any Finance Document;
2.2.70.2                  any Encumbrance that constitutes a Permitted Encumbrance;
                          2.2.70.3  any other Disposal approved in advance in writing by the Facility Agent;

 

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2.2.71               "Permitted Encumbrances" means:
2.2.71.1                   Encumbrances  created  over  any  asset  or  property  to  secure Indebtedness
incurred for the purpose of financing the purchase, development, improvement or construction thereof;
2.2.71.2 Encumbrances created by operation of law and in the ordinary course of
trading provided that the same are discharged within 90 (ninety) days of their
creation or, in the reasonable opinion of the Facility Agent, are being
contested in good faith;
22.71.3 any Encumbrance which is existing prior to the Signature Date and which
has been disclosed (i) in Schedule 3 (Disclosed Encumbrances) hereto, or (ii) in
the Original Financial Statements and in all circumstances securing only
Indebtedness outstanding at the Signature Date if the principal amount or
original Facility thereby secured is not increased after the Signature Date;
                          2.2.71.4  any netting or set-off arrangement entered into by the Borrower in the normal
course of its banking arrangements for the purpose of netting debit and credit
balances, and only such arrangements that are in existence at the Signature
Date;
                          2.2.71.5  any landlord hypothecs in respect of property leased by any Obligor which in
the aggregate secure an amount of less than R1 000 000
(one million Rand); and
                          2.2.71.6  any Encumbrance created in respect of Indebtedness incurred to prepay the
Facility is full in accordance with the provisions of
clause 10 (Prepayment) below;
2.2.71.7                  any Encumbrance as contemplated in the Finance Documents;

 

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2.2.71.8
any other Encumbrance created with the prior written approval of the Facility Agent;
2.2.72               "Permitted Indebtedness" means:
2.2.72.1                   any Indebtedness incurred for the purpose of
                           acquiring new plant, machinery and equipment up to
                           the market value thereof, and which will not once
                           incurred cause the Financial Covenant to be breached;
                           and
                           2.2.72.2 any Indebtedness incurred by any of the Obligors which does not exceed R50 000
000 (fifty million Rand) in aggregate per annum;
                           2.2.72.3 any Indebtedness which is existing prior to the Signature Date and which has
been (i) disclosed in Schedule 4 (Disclosed Indebtedness) hereto, or (it) in the Original Financial Statements;
                           2.2.72.4 any Indebtedness incurred to prepay the Facility in accordance with the
provisions of clause 10 (Prepayment) below;
2.2.72.5                   any Indebtedness incurred hereunder; and
                           2.2.72.6 any other Indebtedness made with the prior written approval of the Facility
Agent;
2.2.73              "Permitted Loans" means:
2.2.73.1                  loans contemplated and permitted by the Finance Documents;
                          2.2.73.2  trade credit granted in the ordinary course of an Obligor's day-to-day
business upon terms usual for such trade;
2.2.73.3                  loans made by an Obligor to another Obligor (but only if such loans are funded whilst
no Default has occurred which is continuing); or

 

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2.2.73.4 loans existing prior to the Signature Date and which have been (i) disclosed in
Schedule 5 (Disclosed Loans) hereto, or (ii) in the Original Financial
Statements;
2.2.73.5 loans granted by the Borrower to any and all of the Group Companies,
other than the Obligors or for the purposes of the Hidden Valley Project, which
do not exceed R5 000 000 (fifty million Rand) in aggregate during the Term;
2.2.73.6                   any other loans made with the prior written approval of the Facility Agent;
2.2.74 "Prime Rate" means the nacm prime overdraft rate of interest from time to
time publicly quoted as such by Nedbank, calculated on a 365 (three hundred and
sixty-five) day factor, irrespective of whether or not the year is a leap year,
as certified by any manager of Nedbank, whose appointment as such it shall not
be necessary to prove, which certificate shall serve as prima facie proof of its
contents;
2.2.75              "Quotation Date" means the date upon which the Interest Rate is to be determined for an
Interest Period;
2.2.76              "Ratio Test Date" means the last day of March. June, September and December;
2.2.77              "Ratio Test Period" means each period of 3 (three) months ending on a Ratio Test Date;
2.2.78 "Reference Banks" means Absa Bank Limited, FirstRand Bank Limited, the
Standard Bank of Southern Africa Limited and the Original Lender or such other
bank or banks as may from time to time be agreed in writing between the Borrower
and the Facility Agent;

 

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2.2.79               "Related  Party" means any Shareholder and  any affiliate of any Shareholder;
2.2.80               "Repo Rate" means on any particular day, the repurchase tender rate on that day quoted by
the South African Reserve Bank;
2.2.81               "RMB" means FirstRand Bank Limited (acting through Its Rand Merchant Bank division)
(Registration No. 1929/001225/06), a public company duly incorporated in accordance with the laws of South Africa;
2.2.82               "Security Cession" means;
                           2.2.82.1 a cession and pledge in security by the Borrower in favour of the Finance
Parties on a joint and several basis of tie Subsidiaries, Shares, the Borrower's
right, title and interests in and to the Subsidiaries' Loans and the Borrower's
right, title and interest in and to the Deposit Account and all monies or
amounts then or at any time hereafter standing to the credit of the Deposit
Account and all rights relating or attaching thereto, including the right to
interest; and
                           2.2.82.2 a cession and pledge in security by ARMgold in favour of the Finance Parties
on a joint and several basis, of ARMgold's Shares in and claims against
ARMgold/Harmony Joint Investment Company (Proprietary) Limited and
ARMgold/Harmony Freegold Joint Venture Company (Proprietary) Limited;
and "Security Cessions" means both of them, as required by the context:
2.2.83 "Security Documents" means the Guarantee, the Security Cession and any
other agreement or document that may be designated as a "Security Document" by
written agreement between the Facility Agent and the Borrower;

 

	                                                                                                            Page 19
2.2.84               "Share Consideration" shall have the meaning given to it in clause 10.3.2 (Mandatory
                     Prepayment: Disposal of South African Assets);
2.2.85               "Shareholder" means any member of the Borrower from time to time;
2.2.86 "Short Term Debt" means the facility granted to the Borrower by RMB for a
maximum principal amount of R500 000 000 (five hundred million Rand), which is
to be repaid on or before 28 September 2007:
2.2.87               "Signature Date" means the date of the signature of the Party last signing this Agreement in
time;
2.2.88              "South Africa" means the Republic of South Africa as constituted from time to time;
2.2.89              "Subsidiaries' Loans" means all loans made the Borrower to the Guarantors from time to time;
2.2.90 "Subsidiaries' Shares" means all the ordinary shares and preference
shares in the issued share capital of the Guarantors, which are held by the
Borrower from time to time (including, but not limited to, any such shares which
may be issued or transferred to the Borrower in the future);
2.2.91 "Term" means the period from the Advance Date to the earlier of the Final
Repayment Date or any other date on which the Facility Outstandings are repaid
in full by the Borrower;
2.2.92 "Transaction Security" means the security interest created or expressed
to be created in favour of the Finance Parties pursuant to the Security
Documents, as stipulated in Schedule 7 (Transaction Security);
2.2.93              "Unpaid Sum" means any sum due and payable but unpaid by an Obligor under the Finance
Documents;

 

	Page 20

2.2.94 "'VAT" means value added tax including any similar tax which may
be imposed in place thereof from time to time, 2.3 Any reference in this
Agreement to:
2.3.1 an "affiliate" means In relation to any person, a subsidiary of that
person or a holding company of that person or any other subsidiary of that
holding company;
2.3.2                a "clause" shall, subject to any contrary indication, be construed as a reference to a clause
hereof:
                     2.3.3 "continuing", in the context of an Event of Default, means:
2.3.3.1 where the Event of Default or its consequences are incapable of remedy
that Event of Default is deemed to be continuing unless it has been expressly
waived in writing by the Lender and any conditions of such waiver have been
fulfilled to the reasonable satisfaction of the Lender;
2.3.3.2                    in any other case, that Event of Default is deemed to be continuing unless sod until
either;
2.3.3.2.1                        it has been expressly waived in writing by the Lender and any conditions of such
waiver have been fulfilled to the reasonable satisfaction of the Lender; or
2.3.3.2.2 it has been remedied within the applicable remedy period by any person
and the resulting position is that which it would have been if such Event of
Default had not occurred;
2.3.4               a "holding  company"  shall  be  construed  in  accordance  with the Companies Act;

 

	                                                                                              Page 21 2.3.5
"law" shall be construed as any law (including common or customary law) or
statute, constitution, decree Judgment, treaty, regulation, directive, bye-law,
order or any other legislative measure of any government, supranational, local
government, statutory or regulatory body or court;
2.3.6 "month" means unless the context otherwise requires, a period starting on
one day in a calendar month and ending on the numerically corresponding day in
the next succeeding calendar month except that, where any such period would
otherwise end on a day which is not a Business Day it shall end on the
immediately preceding Business Day; provided that if a period starts on the last
Business Day of a calendar month or if there is no numerically corresponding
days in the month in which that period ends, that period shall end on the last
Business Day in that later month (and references to "months" shall be construed
accordingly):
2.3.7               "nacm" means nominal annual compounded monthly in arrears;
2.3.8               "nacq" means nominal annual compounded quarterly in arrears;
2.3.9 a "person" shall be construed as a reference to any person, firm, company,
corporation, government, state or agency of a state or any association or
partnership (whether or not having separate legal personality) of two or more of
the foregoing;
2.3.10 "repay" (or any derivative form thereof) shall, subject to any contrary
Indication, be construed to include "prepay" or, as the case may be, the
corresponding derivate form thereof;
23.11               a "Schedule" shall, subject to any contrary indication, be construed as a reference to a
schedule hereof;
2.3.12              a "subsidiary" shall be construed in accordance with the Companies Act;

 

	                                                                                              Page 22
  2.3.13 "tax" shall be construed so as to include any tax, levy, impost or
other charge of a similar nature (including, without limitation, any penalty or
interest payable in connection with any failure to pay or delay in paying any of
the same).
2.4           Unless inconsistent with the contest or save where the contrary is expressly indicated:
2.4.1 if any provision in a definition is a substantive provision conferring
rights or imposing obligations on any Party, notwithstanding that it appears
only in this interpretation clause, effect shall be given to it as if it were a
substantive provision of this Agreement;
2.4.2 when any number of days is prescribed in this Agreement, same shall be
reckoned inclusively of the first and exclusively of the last day unless the
last day falls on a day which is not a Business Day, in which case the last day
shall be the next succeeding Business Day;
2.4.3 in the event that the day for payment of any amount due in terms of this
Agreement should fall on a day which is not a Business Day, the relevant day for
payment shall be the previous Business Day;
2.4.4 in the event that the day for performance of any obligation to be
performed in terms of this Agreement should fall on a day which is not a
Business Day, the relevant day for performance shall be the next succeeding
Business Day;
2.4.5 any reference in this Agreement to an enactment is to that enactment as at
the Signature Date and as amended or re-enacted from time to time;
2.4.6 any reference in this Agreement to this Agreement or any other agreement
or document shall be construed as a reference to this Agreement or, as the

 

	                                                                                              Page 23
case may be, such other agreement or document as same may have been, or may from
time to time be, amended, varied, novated or supplemented;
2.4.7               no provision of this Agreement constitutes a stipulation for the benefit of any person who is
not a Party to this Agreement;
2.4.8               references to day/s, month/s or year/s shall be construed as Gregorian calendar day/s,
month/s or year/s;
2.4.9               a reference to a Party includes that Party's successors-in-title and permitted assigns;
2.4.10              a time of day shall be construed as a reference to Johannesburg time.
2.5          Unless inconsistent with the context, an expression which denotes:
2.5.1               any one gender includes the other genders;
2.5.2               a natural person includes an artificial person and vice versa; and
 2.5.3              the singular includes the plural and vice versa.
2.6 The schedules or annexures to this Agreement form an integral part hereof
and words and expressions defined in this Agreement shall bear, unless the
context otherwise requires, the same meaning in such schedules or annexures. To
the extent that there is any conflict between the schedules or annexures to this
Agreement and the provisions of this Agreement, the provisions of this Agreement
shall prevail.
2.7 Where any term is defined within the context of any particular clause in
this Agreement, the term so defined, unless it is clear from the clause in
question that the term so defined has limited application to the relevant
clause, shall bear the same meaning as ascribed to it for all purposes in terms
of this Agreement, notwithstanding that that term has not been defined in this
interpretation clause.

 

	                                                                                                            Page 24
2.8 The rule of construction that, in the event of ambiguity, the contract shall
be interpreted against the Party responsible for the drafting thereof, shall not
apply in the interpretation of this Agreement.
2.9 The expiration or termination of this Agreement shall not affect such of the
provisions of this Agreement as expressly provide that they will operate after
any such expiration or termination or which of necessity must continue to have
effect after such expiration or termination, notwithstanding that the clauses
themselves do not expressly provide for this.
2.10 This Agreement shall be binding on and enforceable by the administrators,
trustees, permitted assigns or liquidators of the Parties as fully and
effectually as if they "had signed this Agreement in the first instance and
reference to any Party shall be deemed to include such Party's administrators,
trustees, permitted assigns or liquidators, as the case may be.
2.11 The use of any expression in this Agreement covering a process available
under South African law such as winding-up (without limitation eiusdem generis)
shall, if any of the Parties to this Agreement is subject to the law of any
other jurisdiction, be construed as including any equivalent or analogous
proceedings under the law of such other jurisdiction.
2.12 Where figures are referred to in numerals and in words, if there is any
conflict between the two, the words shall prevail.
3.      INTRODUCTION
3.1 The Borrower wishes to raise finance from the Original Lender in an amount
equal to the Available Facility to fund the Borrower's capital expenditure in
respect of projects, to repay the Short Term Debt and to pay all fees, costs and
expenses due and payable on Financial Close.

 

	                                                                                              Page 25
       3.2 The Original Lender is willing to make the facility available to the
Borrower for the purposes set out in clause 3.1 upon the terms and conditions of
this Agreement.
4. CONDITIONS TO ADVANCE
4.1 Save as provided for in clause 4.2 or as the Facility Agent may otherwise
agree in writing, the Advance shall not be made hereunder unless the Facility
Agent has confirmed to the Borrower in writing that:
4.1.1 it has received all of the Advance Condition Documents and that each such
document is, in form and substance, satisfactory to the Facility Agent; and
4.1.2 all of the Advance Conditions have been fulfilled to the satisfaction of,
or waived by, the Facility Agent.
4.2           The Facility Agent may:
4.2.1 waive any of the conditions referred to in this clause 4 and in such event
the Facility Agent may attach to such waiver such requirements and further or
other conditions as the Facility Agent (in its sole discretion) deems fit;
4.2.2 agree to make the Advance on terms (express or otherwise) that any
condition may be converted to a term of this Agreement and that the obligation
thereunder be discharged after the date of making of the Advance, and in such
event the Borrower shall procure that such obligation is discharged within a
period of 5 (five) Business Days after such Advance (or such other period as the
Facility Agent may agree to in writing), and the Facility Agent shall be
entitled on written notice to the Borrower to treat any failure by the Borrower
to procure the discharge of such obligation as an Event of Default.

 

	                                                                                              Page 26
                                                                                               4.3        The
Finance Documents shall terminate 5 (five) Business Days from the Signature Date
if Financial Close is not achieved by such date or such later date as may be
agreed by the Parties in writing. Such termination shall be without prejudice to
the Borrower's obligations under clause 30.3 (Expenses), and the provisions of
clause 2, (Definitions and Interpretation), clause 30.3 (Expenses), clause 30.5
(Value Added Tax), clause 31 (Notices and Domicilia), clause 32 (Governing Law),
clause 33 (Jurisdiction), clause 34 (Severability), clause 35 (General), clause
36 (Counterparts) and this clause 4.3 shall remain in force for such purpose.
5.       FACILITY
Subject to the provisions of clause 4 (Conditions to Advance), the Original
Lender grants to the Borrower, upon the terms and subject to the conditions of
this Agreement, the Available Facility.
6. PURPOSE
  6.1 The Facility is intended to fund the Borrower's capital expenditure in
respect of projects, to repay the Short Term Debt, and all fees, costs and
expenses due and payable in the amounts specified in the Fee Letter on Financial
Close, and accordingly, the Borrower shall apply all amounts raised by it
hereunder in or towards satisfaction of such purposes.
  6.2 Without prejudice to the obligations of the Borrower under clause 6.1, the
Finance Parties shall not be obliged to concern themselves with the application
of amounts raised by the Borrower hereunder.
7. UTILISATION
7.1 Subject to the terms of this Agreement, the Advance shall be made to the
Borrower by the Original Lender on the Advance Date as follows:

 

	                                                                                                            Page 27
7.1.1 by payment to RMB in discharge of the Borrower's obligations under the
Short Term Debt, in an aggregate amount of R515 695 867,45 (five hundred and
fifteen million six hundred and ninety-five thousand eight hundred and
sixty-seven Rands and forty-five cents), by way of electronic transfer into the
following bank account:
Bank:                                        First National Bank;
Branch:                                      Corporate Account Services;
Branch code:                                 25 50 05;
Account number:                              5061 9016 740;
Account name:                                RMB Money Market;
7.1.2               by payment to Nedbank of the Fees, costs and expenses stipulated in the Fee Letter;
 7.1.3   by way of electronic transfer, transfer R500 000 000 (five hundred million Rand) into the following bank
         account:
Bank:                                        Absa Bank Limited
Branch:                                      Virginia
Account number:                              40-4873-7227
Account name:                                Harmony Treasury Account
7.1.4               by way of electronic transfer, transfer the remaining balance of the Advance into the
following bank account:
Bank:                                        Nedbank Limited
Branch:                                       1776605
Account number:                                  1766-000-029
Account name:                                Domestic Treasury Suspense Account
                                            Re: 7881512 733
(the  "Deposit Account")

 

	                                                                                     Page 28
                           Provided that on the Advance Date:
7.1.4.1                    no Default has occurred and is continuing; and
7.1.4.2  the representations and warranties set out in clause 15 (Warranties and Representations) are true; or
the Original Lender agrees to make such Advance.
7.2 The Borrower agrees that any payment to RMB and Nedbank pursuant to clauses
7.1.1 and 7.1.2 shall form part of the Advance and the Borrower renounces all
benefits of the exception of "no value received", "non numeratae pecuniae", "non
causa debiti" and "errore calculi, the meaning and effect of which it declares
it understands.
7.3          The Borrower acknowledges and agrees that:
7.3.1 the Original Lender shall not be obliged to make the Advance unless the
Advance Conditions have been fulfilled or waived and the conditions set out in
clause 7.1.4.1 and 7.1.4.2 are met;
7.3.2 no Advance or portion thereof repaid by the Borrower in accordance with
the provisions of this Agreement or otherwise shall be available to be re-
advanced to the Borrower by the Lenders;
7.3.3 the Finance Parties shall not incur any liability to the Borrower in the
event of the Advance under the Facility earmarked for the purposes of clause 6
(Purpose) not being utilised for such purpose and in such an event, the portion
of those payments made from the Facility will nevertheless be regarded as
constituting valid advances and form part of the Loan;

 

	                                                                                              Page 29
      7.3.4 if any monies are advanced in the mistaken belief that the Advance
Conditions have been fulfilled or waived in accordance with this Agreement, and
it is subsequently determined that not all the Advance Conditions have been
fulfilled or waived, this Agreement shall be valid and enforceable in respect of
the monies advanced and the Facility, and the Facility Agent shall be entitled
on written notice to the Borrower, to demand immediate payment of the Facility
Outstandings, without prejudice to any other rights or remedies that the Leaders
may have in law.
8. INTEREST
8.1          The Loan shall bear interest at the Interest Rate which shall:
8.1.1               accrue on a day to day basis over the Term; and
8.1.2 be calculated on the actual number of days elapsed and, for the purposes
of calculation, based on a year of 365 (three hundred and sixty-five) days,
irrespective of whether the year in question is a leap year.
8.2 All interest accrued on the Loan during the Term (including capitalised
interest) shall be paid by the Borrower on each Interest Payment Date to the
Lenders, in accordance with clause 11 (Payments).
8.3 The Facility Agent shall promptly notify the Borrower of the applicable
Interest Rate determined pursuant to the provisions of this Agreement promptly
after ascertaining the same.
9. REPAYMENT
9.1 The Borrower shall, subject to the provisions of clauses 10 (Prepayment) and
20 (Events of Default), repay the Advance together with all accrued but unpaid
interest on the Final Repayment Date, in accordance with clause 11 (Payments).

 

	                                                                                                            Page 30
 9.2 The Borrower shall not repay all or any part of the Loan except at the
times and in the manner expressly provided for in this Agreement and shall not
be entitled to reborrow any amount repaid.
10. PREPAYMENT
10.1 At any time during the Term, and provided that no Default has occurred that
is continuing, the Borrower may, subject to the provisions of clause 30.2 (Exit
Fees), by giving to the Facility Agent not less than 5 (five) Business Days
prior written notice to that effect, prepay the whole or part of the Facility
Outstandings on an Interest Payment Date; provided that:
10.1.1 no such prepayment shall be in an amount of less than R50 000 000 (fifty
million Rand) (or a greater amount thereof in increments of R10 000 000 (ten
million Rand)) or the Facility Outstandings, whichever is the lesser; and
10.1.2              where such prepayment is as a result of a refinancing (as contemplated in clause 30.2.1 (Exit
Fees)):
                          10.1.2.1  the Borrower must give the Facility Agent not less than 15 (fifteen) Business
Days prior written notice to that effect; and
                          10.1.2.2  such prepayment must be of the Facility Outstandings and not a portion thereof.
10.2         Any notice of prepayment pursuant to clause 10.1 shall:
 10.2.1      be irrevocable;
10.2.2              specify a date upon which such prepayment is to be made, which date is an Interest Payment
Date;
10.2.3              specify the amount of the prepayment; and

 

	Page 31
10.2.4   oblige the Borrower to make such prepayment on such date.
10.3     Mandatory Prepayment: Disposal of South African Assets
10.3.1 The Borrower shall given the Facility Agent at least 10 (ten) Business
Days written notice, prior to the occurrence of a Permitted Disposal of an asset
located within South Africa of the Borrower or any Group Company should the
amount anticipated to be realised exceed R50 000 000 (fifty million Rand).
10.3.2 The Borrower shall forthwith notify the Lenders in writing of the amount
realised (net of all realisation costs, expenses and taxes) in the form of cash
("Cash Consideration") and/or shares ("Share Consideration") (collectively the
"Disposal Amount") upon the occurrence of the Permitted Disposal.
10.3.3 Should the Cash Consideration portion of the Disposal Amount exceed R50
000 000 (fifty million Rand), not later than 20 (twenty) Business Days after the
Permitted Disposal the Borrower shall, by delivering a written notice (the
"Offer Notice") to the Lenders to that effect, offer to prepay the Facility
Outstandings in an amount equal to the Cash Consideration portion of the
Disposal Amount.
10.3.4 The Facility Agent shall, within 5 (five) Business Days of receipt of the
Offer Notice, advise the Borrower in writing whether it wishes to accept the
offer pursuant to clause 10.3.3 and if so the amount (the "Accepted Prepayment
Amount") to be applied in prepayment of the Facility Outstanding.
10.3.5 The Borrower shall pay to the Facility Agent the Accepted Prepayment
Amount within 2 (two) Business Days of receipt of the Facility Agent's
acceptance thereof. The payment to the Facility

 

	Page 32
Agent of the Prepayment Amount shall be applied to reduce the Facility
Outstandings by the same amount.
10.3.6 Not later than 20 (twenty) Business Days after each Permitted Disposal,
the Borrower shall grant the Finance Parties (on a joint and several basis) a
cession and pledge in security of the Share Consideration portion of the
Disposal Amount, on terms and conditions substantially similar to the Security
Cession granted by ARMgold in respect of its shares in ARMgold Harmony Joint
Investment Company (Proprietary) Limited and ARMgoId/Harmony Freegold Joint
Venture Company (Proprietary) Limited, subject to any restrictions imposed on
the Borrower pursuant to the Disposal in respect of encumbrances and/or
disposals of the Share Consideration.
10.3.7   The provisions of this clause 10.3 shall not apply in relation to:
10.3.7.1 any Cash Consideration received in respect of the Disposal by ARMgold
of that portion of its operations known as Orkney 1 - 7 Shafts located in
Orkney, North West Province of the Republic of South Africa, to Clidet No 759
(Proprietary) Limited (an entity that will be a wholly owned subsidiary of
ARMgold), and the subsequent unbundling of the shares is Clidet 759
(Proprietary) Limited to Harmony and subsequent sale to Pamodzi Gold Limited;
and
10.3.7.2 25% (twenty-five percent) of the proceeds of the intended Disposal by
Randfontein Estates Limited of the Cooke Bump Tailings Dam located in
Randfontein, Gauteng Province of the Republic of South Africa.
11. PAYMENTS
11.1     All payments to be made by the Obligors under any Finance Documents shall be
governed by the following provisions:

 

	Page 33
11.1.1 all such payments shall be made to the Facility Agent, on the due date
for such payment, to such account as the Facility Agent specifies, and any such
payment shall discharge, pro tanto, the corresponding liability to the Finance
Parties;
11.1.2 all such payments shall be made for value by no later than 12h00 on the
due date for such payment;
11.1.3 the relevant Obligor shall advise the Facility Agent in writing once such
repayment has been made; and
11.1.4 all such payments shall be made in immediately available, freely
transferable, cleared funds free and clear of set-off, deduction or
counterclaim.
11.2 In the event of any payment of being made in full on its due date,
appropriated in the first instance to the payment of any costs, charges or
expenses, thereafter to interest then due and payable, and thereafter in
redaction of the principal amount of the Loan.
11.3 The Borrower shall not have the right to defer, adjust or withhold any
payment due to any Finance Party in terms of or arising out of this Agreement or
to obtain deferment of judgment for such amount or any execution of such
judgment by reason of any set-off or counterclaim due to any other contractual
or delictual claims or causes of whatsoever nature or howsoever arising,
11.4 If, at any time, it shall become impracticable (by reason of any action of
any governmental authority or any change in law, exchange control regulations or
any similar event) for the Borrower to make any payments hereunder in the manner
specified in this clause 11 (Payments), then the Borrower may agree with the
Facility Agent alternative arrangements for such payment to be made; provided
that, in the absence of any such agreement, the Borrower shall be

 

Page 34 obliged to make all payments due to the Finance Parties in the manner specified herein. 12.
BREAKAGE COSTS AND BREAKAGE GAINS 12.1 If a Lender (or any person on its behalf) receives or
recovers all or any part of the Facility Outstanding otherwise than on the Interest Payment Date of
the Interest Period relating to the Advance: 12.1.1 the Borrower indemnifies and holds that Lender
harmless and shall pay to that Lender on demand an amount equal to all Breakage Costs which that
Lender sustains as a consequence of such receipt or recovery on day other than an Interest Payment
Date; or 12.1.2 that Lender shall pay to the Borrower on demand an amount equal to all Breakage
Gains which that Lender has actually realised as a consequence of such receipt or recovery on a day
other than on an Interest Payment Date. 1 2.2 A certificate signed by any director or manager of
the Facility Agent (whose appointment need not be proved) as to the amount of any Breakage Costs or
Breakage Gains, as the case may be, shall be prima facie proof of the amount thereof. 13.
ILLEGALITY If, at any time, it is unlawful for any of the Lenders to make, fund or allow to remain
outstanding all or any part of the Advance, then the Facility Agent shall, promptly after becoming
aware of the same, deliver to the Borrower a certificate to that effect and; 13.1 the relevant
Lender shall not thereafter be obliged to make the Advance: and

 

 

Page 35 13.2 if the relevant Lender so requires, the Borrower shall an such date as the Facility
Agent shall have specified, having given at least 10 (ten) Business Days’ written notice to that
effect, repay that Lender’s portion of the Facility Outstandings and any repayment so made shall
reduce rateably the remaining obligations of the Borrower under clause 9 (Repayment). 14. GUARANTEE
AND INDEMNITY 14. 1 Guarantee and Indemnity Each Guarantor irrevocably and unconditionally jointly
and severally: 14.1.1 guarantees to each Finance Party the punctual performance by the Borrower of
all the Borrower’s obligations under the Finance Documents; 14.1.2 undertakes to each Finance Party
that whenever the Borrower does not pay any amount when due under or in connection with any Finance
Document, that Guarantor shall directly on demand pay that amount as if it was the principal
obligor; and 14.13 indemnifies each Finance Party directly on demand against any cost loss or
liability suffered by that Finance Party if any obligation guaranteed by it is or becomes
unenforceable, invalid or illegal. The amount of the cost, loss or liability shall be equal to the
amount which that Finance Party would otherwise have been entitled to recover. 14.2 Continuing
Guarantee This guarantee is a continuing guarantee and will extend to the ultimate balance of sums
payable by the Borrower under the Finance Documents, regardless of any intermediate payment or
discharge in whole or in part. 14.3 Reinstatement

 

 

Page 36 If any payment by the Borrower or any discharge given by a Finance Party (whether in
respect of the obligations of the Borrower or any security for those obligations or otherwise) is
avoided or reduced as a result of insolvency or any similar event: 14.3.1 the liability of the
Borrower shall continue as if the payment, discharge, avoidance or reduction had not occurred; and
14.3.2 the relevant Finance Party shall be entitled to recover the value or amount of that security
or payment from the Borrower, as if the payment, discharge, avoidance or reduction had not
occurred. 14.4 Waiver of Defences The obligations of each Guarantor under this clause 14 will,
subject to applicable law, not be affected by an act, omission, matter or thing which, but for this
clause, would reduce, release or prejudice any of its obligations under this clause 14 (without
limitation and whether or not known to it or any Finance Party) including: 14.4.1 any time, waiver
or consent granted to, or composition with, the Borrower or other person; 1 4.4.2 the release of
the Borrower or any other person under the terms of any composition or arrangement with any
creditor of any member of the Group: 14.4.3 the taking, variation, compromise, exchange, renewal or
release of, or refusal or neglect to perfect, take up or enforce, any rights against, or security
over assets of, the Borrower or other person or any non-presentation or non-observance of any
formality or other requirement in respect of any instrument or any failure to realise the full
value of any security;

 

 

Page 37 14.4.4 any incapacity or lack of power, authority or legal personality of or dissolution or
change in the members or status of the Borrower or any other person; 14.4.5 any amendment (however
fundamental) or replacement of a Finance Document or any other document or security; 14.4.6 an
unenforceability, illegality or invalidity of any obligation of any person under any Finance
Document or any other document or security; or 14.4.7 any insolvency or similar proceedings. 14.5
Direct Recourse Each Guarantor waives any right it may have of first requiring any Finance Party to
proceed against or enforce any other rights or security or claim payment from any person before
claiming from that Guarantor under this clause 14; provided that prior to making any demand on any
Guarantor under this clause 14 demand shall first have been made on the Borrower and the Borrower
shall have failed to pay the sum or perform the obligation demanded within the requisite period
specified in such demand. This waiver applies irrespective of any law or any provision of a Finance
Document to the contrary. 14.6 Appropriations Until all amounts which may be or become payable by
the Borrower under or in connection with the Finance Documents have been irrevocably paid in full,
each Finance Party (or any agent on its behalf) may apply all monies, security or rights received
by it on account thereof in such manner and order as it sees fit.

 

 

Page 38 14.7 Deferral of Guarantors’ Rights Until all amounts which may be or become payable by
the Borrower under or in connection with the Finance Documents have been irrevocably paid in
full and unless the Facility Agent (acting reasonably) otherwise directs, no Guarantor will
exercise any rights which it may have by reason of performance by it of its obligations under
the Finance Documents: 14.7.1 to be indemnified by the Borrower; 14.7.2 to claim any
contribution from any Guarantor; and/or 14.7.3 to take the benefit (in whole or in part and
whether by way of subrogation or otherwise) of the rights of the Finance Parties under the
Finance Documents, or of any other guarantee or security taken pursuant to, or in connection
with, the Finance Documents by any Finance Party. 14.8 Additional Security This guarantee is
in addition to and is not in any way prejudiced by any other guarantee or security now or
subsequently held by any Finance Party. 15. WARRANTIES AND REPRESENTATIONS 15.1 From the
Signature Date, each Obligor hereby represents and warrants to the Lender on a continuing
basis that: 15.1.1 Status 15.1.1.1 It is a limited liability company, duly incorporated and in
good standing and validly existing under the laws of the Republic of South Africa.

 

 

Page 39 15.1.1.2 It has the power to own its assets and carry on its business as it is being
conducted or is contemplated to be conducted. 15.1.2 Power and Authority 15.1.2.1 It has the power
to enter into and perform, and has taken all necessary action to authorise its entry into, and
performance of, the Finance Documents to which it is party and the transactions contemplated by
those Finance Documents. 15.1.2.2 No limit on its powers will be exceeded as a result of the
borrowings, grant of security or giving of guarantees or indemnities contemplated by the Finance
Documents to which it is a party. 1 5.1.3 Authorisations 15.1.3.1 All Authorisations required to
enable it lawfully to enter into, exercise its rights and comply with its obligations under the
Finance Documents to which it is a party and to ensure that the obligations expressed to be assumed
by it thereunder are legal, valid, binding and enforceable have been obtained or effected and are
in full force and effect. 15.1.3.2 It Is not necessary that any Finance Document be filed, recorded
or enrolled with any court or other authority in South Africa or that any registration or similar
tax be paid on or in relation to any Finance Document: 15.1.3.3 All Authorisations necessary for
the conduct of its business, trade and ordinary activities have been obtained or effected and are
in full force and effect.

 

 

Page 40 15.1.4 Constitutional Documents 15.1.5 The execution of the Finance Documents to which it
is a party and its exercise of its rights and performance of its obligations thereunder do not and
will not conflict with its Constitutional Documents. 15.1.6 Binding Obligations The obligations
expressed to be assumed by it in each Finance Document to which it is a party are legal, valid,
binding and enforceable obligations. 15.1.7 Non-conflict with Other Obligations The entry into and
performance by it of, and the transactions contemplated by, the Finance Documents to which it is a
party and the granting of the Transaction Security pursuant to the Security Documents to which it
is a party do not and will not conflict with any agreement or instrument binding upon it or any of
its assets, including in particular the R1 700 000 000 (one billion seven hundred million Rand)
4,875% (four comma eight seven five percent) convertible bonds (due 2009) issued by the Borrower.
15.1.8 No Default 15.1.8.1 No Default is continuing or might reasonably be expected to result from
the making of the Loan or the entry into, the performance of, or any transaction contemplated by,
any Finance Document. 15.1.8.2 No event or circumstance is continuing which constitutes a breach or
default under, or entities another party to call for termination of, any material agreement or
material instrument which is binding on it.

 

 

Page 41 15.1.9 No Encumbrances 15.1.9.1 No Encumbrance exists over any of its assets except for
Permitted Encumbrances. 15.1.9.2 Other than the Encumbrances created or to be created under the
security Documents, no Encumbrance will arise solely as a result of the execution of and
performance of its rights and obligations under the Finance Documents. 15.1.10 Indebtedness It has
not incurred any Financial Indebtedness except for Permitted Indebtedness. 15.1.11 No Proceedings
Pending Threatened No investigation, litigation, arbitration or administrative proceedings of or
before any court, arbitral body or government agency which, if adversely determine, is reasonably
likely to result in a Material Adverse Change have been started against it. 15.1.12 No Winding-Up
It has not taken any corporate action, nor have any other steps been taken or legal proceedings
started against it, for its winding-up, dissolution, or administration or for the enforcement of
any security interest over all or any of its revenues or assets or for the appointment of a
receiver, administrator, administrative receiver, conservator, custodian, trustee or similar
officer of it or of all or any of its assets.

 

 

Page 42 15.1.13 Solvency 15.1.13.1 No Obligor is unable or has admitted its inability to pay its
debts as they fall due or has suspended making payments on any of its debts or, by reason or actual
or anticipated financial difficulties, commenced negotiations with its creditors generally with a
view to rescheduling its indebtedness. 15.1.13.1 A moratorium has not been declared in respect of
any of the indebtedness of any Obligor. 15.1.14 Compliance with Laws Without detracting from any
other provision of this clause 15, each Obligor is in compliance with in all material respects the
laws of the Republic of South Africa. 15.1.15 Environmental Compliance Each Obligor, to the extent
applicable to it, has: 15.1.15.1 performed and observed in all material respects all Environmental
Law, Environmental Permits and all other material covenants, conditions, restrictions or agreements
directly or indirectly concerned with any contamination, pollution, degradation or waste or the
release or discharge of any toxic or hazardous substance in connection with any real property which
is or was at any time owned, leased, occupied or controlled by it or on which it has conducted any
activity where failure to do so is likely to result in a Material Adverse Change; and 15.1.15.2
obtained all Environmental Permits required by it which are material to properly conduct its
business.

 

 

Page 43 15.1.16 Environmental Claims Save to the extent disclosed in Schedule 6 (Disclosed
Potential Environmental Claim)’ no Environmental Claim has been commenced against any Obligor where
that claim would be reasonably likely to be adversely determined and which, if so adversely
determined against that Obligor’ is likely to result in a Material Adverse Change. 15.1.17
Deduction of Tax It is not required to make any deduction for or on account of tax from any payment
it may make under any Finance Documents to the Finance Parties. 15.1.18 Taxation 15.1.18.1 Each
Obligor has duly and punctually paid and discharged all taxes imposed upon it or its assets within
a time period allowed without incurring penalties except to the extent that: 15.1.18.1.1 payment is
being contested in good faith; 15.1.18.1.2 it has maintained adequate provisions for those taxes in
accordance with IFRS; and 15.1.18.1.3 payment can be lawfully withheld. 15.1.18.2 Each Obligor is
materially overdue in the filing of its tax returns since the years specified in Schedule 13 (Last
Tax Return Year) for each Obligor. Such late filing is due to bona fide queries having been raised
by each of the Obligors with the South African Revenue Service and/or by the South African Revenue
Service with all or any

 

 

Page 44 of the Obligors, and for which proper and adequate provision has been made in the Original
Financial Statements. 15.1.19 No Misleading Information 15.1.19.1 To the best of its knowledge and
belief (having made due enquiry), all written Information provided by it and supplied to the
Facility Agent pursuant to the terms of the Finance Documents and the transactions contemplated
thereby is true and accurate in all material respects as at the date it was given and is not
misleading in any material respects (whether because of information actually provided or which
should have been provided). 15.1.19.2 All written information referred to in this clause 15.1.19
has been disclosed to the Facility Agent without breaching any confidentiality obligation binding
upon it or its assets. 15.1.19.3 It has not knowingly withheld any information which, if disclosed,
would reasonably be expected materially and adversely to affect the decision of the Lenders to
provide finance to the Borrower. 15.1.20 No Breach of Finance Documents 15.1.21 It is not in breach
of or in Default under any Finance Document. 15.1.22 No Material Adverse Change Since the Signature
Date, no event or series of events has occurred, commenced or is threatened which is (or the
continuation of which is) likely to result in a Material Adverse Change.

 

 

Page 45 15.1.23 Original Financial Statements 15.1.23.1 The Original Financial Statements were
prepared is accordance with IFRS consistently applied, except to the extent expressly disclosed to
the contrary therein. 15.1.23.2 The Original Financial Statements fairly represent the Obligor’s
financial condition and operations (consolidated in the case of the Group) during the relevant
financial period, unless expressly disclosed to the contrary therin. 15.1.23.3 There has been no
material adverse change in the business, operations, prospects or financial condition of any of the
Obligors (or the business or consolidated financial condition of the Group) since the Signature
Date. 15.1.23.4 Upon the Original Financial Statements being audited by the Auditors, there shall
be no material changes thereto, and same shall not be qualified adversely by the Auditors or in any
material respect more severely than to the extent disclosed in the Original Financial Statements as
at the Signature Date. 15.1.24 Financial Statements and Budgets 15.1.24.1 The most recent financial
statements delivered pursuant to clause 16.1 (Financial Statements) have been prepared in
accordance with IFRS as applied to the Original Financial Statements and give a true and fair view
of (if audited) or fairly present (if unaudited) the Group’s consolidated financial condition and
each Obligor’s financial condition as at the end of, and consolidated results of operations for,
the period to which they relate.

 

 

Page 46 15.1.24.2 The most recent management accounts delivered pursuant to clause 16.2 (Management
Accounts) fairly present the Group’s consolidated financial position and consolidated results of
operations, for the period to which they relate. 15.1.24.3 The budgets and forecasts supplied under
this Agreement were arrived at after careful consideration and have been prepared in good faith on
the basis of recent historical information and on the basis of assumptions which were reasonable as
at the date they were prepared and supplied. 15.1.24.4 Since the date of the most recent financial
statements delivered pursuant to clause 16.1 (Financial Statements) and the most recent management
accounts delivered pursuant to clause 16.2 (Management Accounts) there has been no Material Adverse
Change in the business, assets or financial condition of the Group. 15.1.25 Insurance It maintains
insurances or and in relation to its business and assets against those risks and to the extent as
is usual for companies in South Africa carrying on substantially similar business in South Africa.
15.1.26 Assets and Intellectual Properly Rights 15.1.26.1 If has good title to or valid leases or
licenses over all of the assets necessary and material to carry on its business. 15.1.26.2 It owns
or has the legal right to use all the Intellectual Property Rights which are material to the
conduct of the business of the Group takes as a whole, or are required by it in order for it to
carry on its business and, as far as it is aware, it will not nor will any of its subsidiaries, in
carrying on its business, infringe any Intellectual

 

 

Page 47 Property Rights of any third party in any way which is likely to result in a Material
Adverse Change. 15.1.26.3 None of the Intellectual Property Rights which are material in the
context of its business are, to its knowledge, being infringed nor, to its knowledge, is there any
threatened infringement of those Intellectual Property Rights, by any third party which in any such
case is likely to result in a Material Adverse Change. 15.1.26.4 All registered Intellectual
Property Rights owned by it (or any subsidiary of it) and which are material to the conduct of its
business are subsisting, and all actions (including payment of all fees) required to maintain the
same in full force and effect have been taken. 15.1.27 Pari Passu Ranking Its payment obligations
under the Finance Documents to which it is a party rank at least pari passu with the claims of all
its other unsecured and unsubordinated creditors, except for obligations mandatorily preferred by
law applying to companies generally. 15.1.28 Security Interest 15.1.28.1 Subject in each case to
any registration specifically required by law: 15.1.28.1.1 each Security Document validly creates
the security interest which is expressed to be created by that Security Document; and 15.1.28.1.2
the Transaction Security created by each Security Document:

 

 

Page 48 15.1.28.1.2.1 ranks and will rank, in respect of all other security interests granted or to
be granted by any Obligor in favour of any person other than the Finance Parties, in the order of
priority it is expressed to rank in the relevant Security Document; and 15.1.28.1.2.2 is not
subject to avoidance in the event of any winding-up, dissolution or administration involving any
Obligor. 15.1.28.2 Other than any assets which are either the subject of a Permitted Encumbrance or
which are teased by the relevant Obligor, it is the sole, absolute, legal and, where applicable,
beneficial owner of all assets made subject to the Transaction Security created by each Security
Document. 15.1 .29 No Material Industrial Action No industrial or similar action has been started
or threatened against It which Is likely to result in a Material Adverse Change on its ability or
the ability of it to perform its obligations under the Finance Documents to which it is a Party.
15.1.30 Immunity from Suit 15.1.30.1 In an proceedings taken against it in South Africa b relation
to the Finance Documents to which it is a party, it will not b s entitled to claim for itself or
any of its assets immunity from suit, execution, attachment or other legal process. 15.1.30.2 The
execution of the Finance Documents to which it is a party constitutes, and Its exercise of its
rights and performance of its obligations thereunder will constitute, private and commercial acts
done and performed for private and commercial purpose;

 

 

Page 49 15.2 Each of the warranties given by each of the Obligors in terms of clause 15.1 shall:
15.2.1 prima facie be deemed to be a representation or fact inducing the Finance Parties to enter
into the Finance Documents; 15.2.2 be presumed to be material unless the contrary is proved; 15.2.3
insofar as any of the warranties is promissory or relates to a future event, be deemed to have been
given as at the due date for fulfilment of the promise or for the happening of the event, as the
case may be; and 15.2.4 be a separate warranty and in no way be limited or restricted by reference
to or inference from the terms of any other warranty. 15.3 The Finance Parties are entering into
this Agreement relying upon the warranties given by the Borrower in clause 15.1. 16. FINANCIAL
INFORMATION 16.1 Financial Statements 16.1.1 The Borrower shall: 16.1.1.1 as soon as the same
become available, but in any event within 120 (one hundred and twenty) days after the end of each
Financial Year during the Term’ deliver to the Facility Agent the consolidated audited annual
financial statements of the Group for such Financial Year; 16.1.1.2 as soon as the same become
available, but in any event within 150 (one hundred and fifty) days after the end of each Financial
Year during the Term, deliver to the Facility Agent the audited annual financial statements of each
Guarantor for such Financial Year;

 

 

Page 50 16.1.1.3 as soon as the same become available, but in any event within 60 (sixty) days
after the end of each quarter of each Financial Year during the Term, deliver to the Facility Agent
the consolidated interim quarterly financial statements of the Group (in the form as provided to
the Borrower’s shareholders) for such period. 16.1.1.4 from time to time on the written request of
the Facility Agent, furnish the Facility Agent with such information about the business and
financial condition of the Group and/or of each Obligor as the Facility Agent may reasonably
require. 16.1.2 The Borrower shall ensure that: 16.1.2.1 each set of financial statements delivered
by it pursuant to clause 16.1 is prepared on the same basis as was used in the preparation of the
Original Financial Statements and in accordance with IFRS; 16.1.2.2 each set of financial
statements delivered by it pursuant to this clause 16 is certified by a duly authorised officer of
the Borrower as giving a true and fair view of the financial condition of the Group (and each
Obligor) as at the end of the period to which those financial statements relate and of the result
of its operations during such period; and 16.1.2.3 each set of financial statements delivered by it
pursuant to clause 16.1 .1.1has been audited by the Auditors. 16.2 Management Accounts The Borrower
shall deliver to the Facility Agent as soon as the same become available, but in any event within
30 (thirty) days after the end of each calendar month of each Financial Year the consolidated
unaudited monthly management accounts of the Group for that period.

 

 

Page 51 16.3 Compliance Certificate 16.3.1 The Borrower shall deliver to the Facility Agent with
each set of financial statements delivered pursuant to clause 16.1 (Financial Statement), a
Compliance Certificate setting out (in reasonable detail) computations as to compliance with clause
19 (Financial Covenant) as at the Ratio Test Date; and 16.3.2 Each Compliance Certificate shall be
signed by the chief financial officer or the financial director of the Borrower. 16.4 Board Packs
The Borrower shall deliver to the Facility Agent (in sufficient copies for all Lenders if the
Facility Agent so requests under clause 16.10 (Delivery of Information) copies of the packs
prepared for the meetings of the board of directors of the Group for each quarter together with the
draft minutes of the previous meeting of the board of directors, within 3 (three) Business Days of
publication of the quarterly financial statements of the Group for such quarter. 1 6.5 Requirements
as to Financial Statements 16.5.1 Each set of financial statements delivered pursuant to clause
16.1 (Financial Statements) shall be certified by the Group Managing Director or the Group
Financial Director of the Borrower as fairly representing its financial condition as at the date as
at which those financial statements were drawn up. 16.5.2 The Borrower shall procure that each set
of financial statements delivered pursuant to clause 16.1 (Financial Statements) is prepared in
accordance with the IFRS, the requirements of the Companies Act and accounting practises and
financial reference periods as promulgated by the

 

 

Page 52 Accounting Practices Board consistent with those applied in the preparation of the
Original Financial Statements. 16.5.3 Clause 16.5.2 shall not apply to the extend that, in relation
to any sets of financial statements the Borrower notifies the Facility Agent that there has been a
change in IFRS or the accounting practices or reference periods and the Auditors (in the case of
its annual audited financial statements) or the Borrower (in the case of any of its other financial
statements) delivers to the Facility Agent: 16.5.3.1 a description of any change necessary for
those financial statements to reflect IFRS, accounting practices and reference periods upon which
the Original Financial Statements were prepared; and 16.5.3.2 sufficient Information, in form and
substance as may be reasonably required by the Facility Agent to enable the Facility Agent to
determine whether clause 19 (Financial Covenant) has been complied with and make an accurate
comparison between the financial position indicated in those financial statements and the Original
Financial Statements. 16.5.4 If the Borrower notifies the Facility Agent of a change in accordance
with clause 16.5.3, then the Borrower and Facility Agent shall enter into negotiations in good
faith with a view to agreeing: 16.5.4.1 whether or no! the change might result in material
alteration in the commercial effect of any of the terms of this Agreement any other Finance
Document; and 16.5.4.2 if so, any amendments to this Agreement or any other Finance Document which
may be necessary to ensure that the change does not result in any material alteration in the
commercial effect of those terms,

 

 

Page 53 and if any amendments are agreed they shall take effect and be. binding on each of the
Parties in accordance with their terms. 16.5.5 Any reference in this Agreement to “financial
statement” shall be construed as a reference to those financial statements as the same may be
adjusted under this clause 16.5 to reflect the basis upon which the Original Financial Statements
were prepared. 16.6 Requirements as to Management Accounts The monthly management accounts to be
delivered pursuant to clause 16.2 (Management Accounts) shall be in the form of and contain the
information contemplated in Schedule 12 (Pro Forma Management Account). 16.7 Access to Records If a
Default is continuing or the Facility Agent reasonably suspects that a Default is continuing or may
occur, each Obligor shall, and the Borrower shall ensure that each Obligor will, permit the
Facility Agent or any of its representatives and professional advisors free access at all
reasonable times and on reasonable notice (at the Borrower’s cost and expense) to that Obligor’s
premises, records, accounts (including its general ledger), books and assets as that person may
require at reasonable times and upon reasonable notice. 16 .8 information: Miscellaneous The
Borrower shall supply to the Facility Agent (In sufficient copies for all Lenders if the Facility
Agent so requests under clause 16.10 (Delivery of Information) 16..8.1 at the same time as they are
despatched, copies of all documents despatched by any Obligor to its shareholders generally (or any
class of

 

 

Pags 54 them) or despatched by any Obligor to its creditors generally or any class of them); 16.8.2
promptly upon becoming aware of them, the details of any/ litigation, alteration or administrative
proceedings which are current, threatened or pending against any Obligor which, if adversely
determined against it, would be reasonably likely to have a Material Adverse Change; 16.8.3
promptly, such further information (including an extract of its general ledger) regarding the
financial condition, business and operations of any Group Company as the Facility Agent may
reasonably request; and 16.8.4 promptly upon it becoming aware of any transfer of shares It any
Group Company (not being a publicly listed entity) and of any change in the beneficial ownership of
any Group Company (not being a publicily listed entity) affecting the Control of that Group
Company, provide details thereof and an updated list of all the shareholders of any Group Company
(not bring a publicly listed entity). 16.9 Notification of Default 16.9.1 The Borrower shall notify
the Facility Agent of any Default (and the steps, if any, being taken to remedy it) promptly upon
becoming aware of its occurrence. 16.9.2 Promptly upon a request by the Facility Agent, the
Borrower shall supply to the Facility Agent a certificate signed by the chief financial officer or
the financial director of the Borrower certifying that no Default is continuing (or if a Default is
continuing specifying the Default and the steps, if any, being taken to remedy it). 16.10 Delivery
of Information

 

 

Page 55 16.10.1 Without prejudice to clause 31 (Notices and Domicilia), any documents to be
delivered under this clause 16 may be delivered by the Borrower to the Facility Agent (and by the
Facility Agent to the Lenders) by e-mail where the Facility Agent has expressly agreed, by written
notice to the Borrower, to receive such documents by e-mail and has informed the Borrower of an
e-mail address pursuant to clause 31 (Notices and Domicilia), provided that, for this purpose, any
such notification shall also be followed-up by telefax; or 16.10.2 If a Finance Party requests
delivery to it of a paper copy of any document to be delivered by the Borrower under this clause 16
in place of an electronic copy of such document, it shall notify the Borrower accordingly. The
Facility Agent shall request the Borrower n writing to provide such paper copies promptly upon
receipt of any such notice and the Borrower shall be obliged promptly to do so. 17. POSITIVE
UNDERTAKINGS Each Obligor hereby each agrees and undertakes, until the Facility Outstanding has
been repaid in full, that it shall: 17.1 Authorisations Obtain, comply with the terms of and do all
that is necessary to Maintain in full force aid effect all authorisations,, approvals, licences and
consents required in or by the laws and regulations of South Africa to enable It lawfully to
undertake its business and to enter into and perform its obligations under the Finance Documents to
which it is a party or to ensure the legality, validity, enforceability or admissibility in
evidence in South Africa of the Finance Documents to which it is a party; 17.2 Compliance with Laws

 

 

Page 56 Comply in all material respects with all laws to which it may be subject, and obtain and
comply with all permits and licenses, In each case, to extent the same are material to its
business. 173 Material Adverse Change Promptly inform the Facility Agent in writing of the
occurrence of any Default forthwith upon becoming aware thereof and from time to time, if so
requested by the Facility Agent in writing, confirm to the Facility Agent in writing that, save as
previously notified to the Facility Agent or as notified in such confirmation, no such Material
Adverse Change has occured and/or is continuing. 17.4 Representations and Warranties Notify the
Facility Aganist of the occurrence of any event which results in or may reasonably be expected to
result in any of the representations and warranties contained in clause 15 (Warranties and
Representations) being untrue; 17.5 Maintain insurances on and in relation to its business and
assets with reputable underwriters or Insurance companies against those risks and to the extent as
is usual for companies carrying on the same or substantially similar business. 17.6 Pari Passu
Ranking Ensure that at all times the claims of the Finance Parties aganist it under the Finance
Documents to which it is a party rank at least pari passu with the claims of all its other
unsecured creditors save those whose claims are preferred by any bankruptcy, insolvency,
liquidation or other similar laws of general application.

 

 

Page 57 17.7 Environmental Compliance Comply in all material respects with all Environmental Law
and obtain and maintain any Environmental Permits and take all reasonable steps in anticipation of
known or published future changes to or obligations under the same, if failure to do so would
reasonably be expected to result in a Material Adverse Change. 17.8 Environmental Claims Inform the
Facility Agent in writing as soon as reasonably practicable upon becoming aware of the same: 17.8.1
if any Environmental Claim has been commenced or (to the best of that Obligor’s knowledge and
belief) is threatened against any member of the Group; or 17.8.2 of any facts or circumstances
which will or are reasonably likely to result in any Environmental Claim being commenced or
threatened against any member of the Group, where the Claim would, if adversely determined, be
reasonably likely to result in a Material Adverse Change.

 

 

Page 58 17.9 Default At any time after the occurrence of a Default and for so long as it is
continuing, upon the written request of the Facility Agent with reasonable prior notice, permit
representatives of the Finance Parties during normal office hours. to visit and inspect any of the
premises where its business is conducted, to have access to (and copies of) accounts and records
and shall afford reasonable co-operation at all times to the Finance Parties and such
representatives. 18. NEGATIVE UNDERTAKINGS The Obligors hereby agrees and undertakes that, until
the Facility Outstandings has been repaid in full none of the Obligors shall, without the prior
written consent of the Facility Agent: 18.1 Financial Indebtedness 18.1.1 Assume, incur or permit
to have outstanding any Financial Indebtedness other than Permitted Indebtedness. 18.1.2 Release
or waive any indebtedness owed to it by any Related Party other than for valuable market
consideration. 18.2 Loans and Credit Make any loans, grant any credit (save is the ordinary
course of business) or give any guarantee or indemnity (except as required hereby) to or for the
benefit of any person or otherwise voluntarily assume any liability, whether actual or contingent,
in respect of any obligation of any other person (collectively, “Credit”) other than: 18.2.1
Credit existing at the Signature Date and disclosed in the Original Financial Statements;

 

 

Page 59 18.2.2 Permitted Loans; 18.2.3 any guarantee or indemnity given in respect of
Permitted Indebtedness; 18.2.4 Credit granted to any Obligor; 18.2.5 Credit granted for
application to the Hidden Valley Project. 18.3 Disposals Enter into a single transaction or a
series of transactions (whether related or not) and whether voluntarily or involuntarily to Dispose
of any assets other than pursuant to a Permitted Disposal. 18.4 Distributions The Borrower shall
not pay, make or declare, or resolve to pay, make or declare, any Distribution. 18.5 Negative
Pledge 18.5.1 Save as contemplated by the Finance Documents, not create or permit to subsist any
Encumbrance over any of its assets. 18.5.2 Save as contemplated by the Finance Documents, not:
18.5.2.1 sell, transfer or otherwise dispose of any of its assets to any person who is not an
Obligor on terms whereby they are or may be leased to or re-acquired by it or by any other Group
Company; 18.5.2.2 sell, transfer or otherwise dispose of any of its receivables on recourse terms;

 

 

Page 60 18.5.2.3 enter into any arrangement under which money or the benefit of a bank or
other account may be applied, set-off or made subject to a combination of accounts; or 18.5.2.4
enter into any other preferential arrangement having a similar effect, in circumstances where the
arrangement or transaction is entered into primarily as a method of raising Financial Indebtedness
or of financing the acquisition of an asset, 18.5.3 Clauses 18.5.1 and 18.5.2 and do not apply
to Permitted Encumbrances or to Permitted Disposals. 18.6 Acquisitions Not acquire a company or
any shares or securities or a business or undertaking (or, in each case, any interest in any of
them), unless acquired in consideration (in whole or part) for a Permitted Disposal as Share
Consideration. 19. FINANCIAL COVENANT 19.1 The Borrower shall ensure that the consolidated
financial condition of the Group, as evidenced by the Group’s then most recent audited annual or
unaudited quarterly interim consolidated financial statements (adjusted, as the Facility Agent may,
acting reasonably, consider appropriate, to take account of any changes in circumstances which
occur after the date as of which such consolidated financial statements were prepared) shall be
such that the Interest Cover Ratio shall not be less than 3 (three) times. 19.2 In this clause 19:
19.2.1 “Borrowed Money” means of any person, without duplicatior; 19.2.1.1 all indebtedness of
such person for borrowed -money;

 

 

Page 61 19.2.1.2 all Indebtedness of such person under acceptance or documentary credit
facilities; 19.2.1.3 all Indebtedness of such person in respect of receivables sold or
discounted (otherwise than on a non-recourse basis); 19.2.1.4 all Indebtedness of such person
evidenced by bonds debentures, notes or other similar instruments; 19.2.1.5 all Indebtedness
of such person to pay the deferred purchase price of property or services If deferred for more
than 60 (sixty) days or where such deferred amount is primarily designed to raise finance,
except, in any case, trade accounts payable arising in the ordinary course of business;
19.2.1.6 all Indebtedness of such person under any arrangement (including hire purchase and
conditional sale agreements) treated as finance leases under IFRS; 19.2.1.7 all Indebtedness
of such person in connection with any Derivatives Transaction and so that the amount of such
Indebtedness shall be calculated on a marked-to-market basis; 19.2.1.8 all Indebtedness of
such person under any repurchase agreement, put options., call options or other transactions
of any kind (whether or not recognised as borrowing under IFRS) which have the commercial
effect of a borrowing or obtaining of credit; 19.2.1.9 all obligations of such person under
redeemable preference shares or equivalent equity; and 19.2.1.10 all Indebtedness of others
falling within clauses 19.2.1.___to 19.2.1.9 above which is guaranteed by such person;

 

 

Page 62 19.2.2 “Derivative Transaction” means a contract, agreement of transaction which is a rate
swap, basis swap, forward rate transaction, bond option, interest rate option, cap, collar or
floor, or any other similar transaction and/or any combination of such transaction, in each case,
whether on-exchange or otherwise; 19.2.3 “EBITDA” means, in respect of any person, and any period,
the consolidated operating profit before income tax for such period; 19.2.3.1 (to the extent not
already excluded) before interest received or receivable and interest paid or payable; 19.2.3.2 (to
the extent not already excluded) adjusted to exclude any gain or loss realised on the disposal of
fixed assets (whether tangible or intangible); 19.2.3.3 (to the extent not already excluded) before
deducting any extraordinary costs and before including extraordinary income; 19.2.3.4 adding back
depreciation, amortisation and impairments to the extent already deducted; and 19.2.3.5 plus
dividends received in cash from companies consolidated by the equity method to the extent not
already taken into account; 19.2.4 “Interest Cover Ratio” means, in respect of any Ratio Test
Period: 19.2.4.1 EBITDA; 19.2.4.2 divided by Total interest. 19.2.5 “Total Interest” means, in
respect of any period, the aggregate accruing during such period (without duplication and whether
or not paid or payable within such period) of, in respect of the Group on a consolidated

 

 

Page 63 basis (and whether or not the principal or capital obligation by reference to which any of
the following are determined is an obligation of the Group: 19.2.5.1 all interest, acceptance
commission, guarantee fees and any other continuing, regular or periodic costs and expenses in the
nature of interest (whether paid, payable or capitalised) incurred in effecting, servicing or
maintaining Borrowed Money; 19.2.5.2 amounts payable (as reduced by amounts receivable) in respect
of any Derivatives Transaction which is an interest tale hedging arrangement entered into to hedge
risks arising in the normal course of business; 19.2.5.3 amounts payable in respect of the R1 700
000 000 (one billion seven hundred million Rand) 4,875% (four comma eight seven five percent)
convertible bonds (due 2009) issued by the Borrower; 19.2.5.4 the interest element of and ancillary
fees payable under any finance leases. 19.3 All expressions used in the definitions of this clause
19 which are not otherwise defined herein shall be construed in accordance with IFRS.

 

 

Page 64 20. EVENTS OF DEFAULT 20.1 Events of Default Each of the events set out in this clause
20.1 is an Event of Default (whether or not caused by any reason whatsoever outside the
control of the Borrower or any other person). 20.1.1 Non-Payment The Borrower fails to pay any
sum due from it hereunder at the time, in the currency and in the manner specified herein,
unless: 20.1.1.1 its failure to pay is caused by an administrative or technical error; and 20
1.1.2 payment is made within 2 (two) Business Days of its due date. 20.1.2 Financial Covenant
Any requirement of clause 19 (Financial Covenant) is not satisfied. 20.1.3 Other Obligations
Subject to clause 20.2 (Remedy), an Obligor does not comply with any of its obligations when
performance is due under the Finance Documents (other than those referred to in clause 20.1.1
(Non-Payment), clause 20.1.2 (Financial Covenant) and clause 20.1.4 (Security)). 20.1.4
Security Any Obligor fails to perform or comply with any of the obligations assumed by it in a
Security Document to which it is a party.

 

 

Page 65 20.1. 5 Misrepresentation Any representation or statement made or deemed to be made by any
Obligor in the Finance Documents or any other document delivered by or on behalf of any
Obligor under or in connection with any Finance Document is or proved to have been incorrect
or misleading when made or deemed to be made. 20.1. 6 Insolvency 20.1.6.1 Any Obligor is
unable to pay its debts as they fall due, commences negotiations with any one or more of its
creditors with a view to the general readjustment or rescheduling of its indebtedness or makes
a general assignment for the benefit of or a composition, or compromise with its creditors.
20.1.6.2 Any Obligor takes any corporate action or other steps are taken or legal proceedings
are started by that Obligor for its winding-up (whether provisional or final), dissolution or
administration or for the appointment of a liquidator, receiver, administrator, administrative
receiver, trustee or similar officer of it or of any or all of its revenues and assets.
20.1.6.3 Any exceution is levied against, or an encumbrancer takes possession of the whole or
any part of, the property, undertaking or assets of any Obligor and Obligor fails within 10
(ten) Business Days after becoming aware, or after it should reasonably have become aware, of
such execution, and/or possession, as the case may be, to take the necessary steps to have
such execution, and/or possession, as the case may be, set aside and thereafter successfully
pursue such steps with due diligence.

 

 

Page 66 20.1.6.4 Any Obligor commits an act defined in terms of Section 344 of the Companies Act,
20.1.7 Insolvency Proceedings Any corporate action, legal proceedings or other similar procedure or
steps are taken in relation to: 20.1.7.1 the suspension of payments, a moratorium of any
indebtedness, winding-up, dissolution or administration (by way of voluntary arrangement, scheme of
arrangement or otherwise) of any Obligor other than (in respect of any service of an application,
or taking of any similar step for the liquidation, bankruptcy, judicial management, winding-up,
dissolution or administration of the Obligor) where such action is dismissed, withdrawn or
discharged within 5 (five) Business Days of its presentation or such step being taken (or, if the
Obligor demonstrates to the Facility Agent’s satisfaction within such 5 (five) Business Days period
that such action is frivolous or vexatious (by way of an opinion by a Senior Counsel of at least 10
(ten) years standing, that the relevant Obligor has a reasonable prospect of defending that
action)); 20.1.7.2 a composition, compromise, assignment or arrangement with the creditors of any
Obligor; 20.1.7.3 the appointment of a liquidator, receiver, administrator, administrative
receiver, judicial manager, compulsory manager or other similar officer in respect of any Obligor
or any of its assets; or 20.1.7.4 enforcement of any security interest over any assets of any
Obligor, or any analogous procedure or step is taken in any jurisdiction

 

 

Page 67 20.1.8 Failure to comply with Final Judgement Any Obligor fails within 10 (ten) Business
Days of the due date to comply with or pay any sum due from it under any final judgement or any
final order made or given by any court of competent jurisdiction. 20.1.9 Cessation of Business
20.1.9.1 Any Obligor suspends, is unable to or ceases for my reason whatsoever to conduct its
normal line of business in the ordinary and regular manner. 20.1.9.2 Any Obligor sells, transfers
or otherwise disposes of in any one transaction or a series of transactions (whether or not
related), a material portion of its business or changes its asset structure and as a result of the
disposal, it would in the reasonable opinion of the Facility Agent be unable to perform or observe
its obligations under any Finance Document to which it is a party. 20.1.10 Cross-Default 20.1.10.1
Any indebtedness of any Obligor is not paid when due nor within any originally applicable grace
period. 20.1.10.2 Any indebtedness of any Obligor is declared to be or otherwise becomes due and
payable prior to a specified maturity as a result of an event of default (however described).
2.1.10.3 Any commitment for any indebtedness of any Obligor is cancelled or suspended by a creditor
of that Obligor as a result of an event of default (however described).

 

 

Page 68 20.1.10.4 Any creditor of any Obligor becomes entitled to declare any indebtedness of any
Obligor due and payable prior to its specified maturity as a result of an event of default (however
described). 20.1.11 Acquisition of Control Any acquisition of Control of any Obligor by any person.
20.1.12 Governmental Intervention By or under the authority of any government; 20.1.12.1 the
management of any Obligor is wholly or substantially replaced or the authority of any Obligor in
the conduct of its business is wholly or substantially curtailed; or 20.1.12.2 all or a majority of
the issued shares of any Obligor, or the whole or any part of its revenues or assets is seized,
nationalised, expropriated or compulsorily acquired. 20.1.13 Repudiation Any Obligor repudiates any
Finance Document to which it is a party. 20.1.14 Failure to Maintain Authorisations At any time any
Authorisation, act, condition or thing required to be done, fulfilled or performed in order;
20.1.14.1 to enable any Obligor lawfully conduct its business, or to enter into, exercise its
rights under and perform the obligations expressed to be assumed by it in any Finance Document to
which it is a party;

 

 

Page 69
20.1.14.2 to ensure that the obligations expressed to be assumed by any Obligor in any
Finance Document to which it is a party are legal, valid and binding; or 20.1.14.3 to make any
Finance Document to which any Obligor is a party admissible in evidence in South Africa, is not
done, fulfilled or performed. 20.1.15 Unlawfulness It is or becomes unlawful for any Obligor to
perform any of its obligations under the Finance Documents to which it is a party other than my
obligations which the Facility Agent considers to be not material or which it is satisfied is
adequately provided for in any other Finance Document (including a Finance Document which is
entered into in replacement of the document under which It was unlawful for such Obligor to perform
its obligations) or unless the Obligor and the Facility Agent agree within a period of 30 (thirty)
days after the occurrence of such unlawfulness or such, unlawfulness comes to the attention of the
Facility Agent, whichever is the earlier, to the amendment or restructuring of such finance
Document in order to avoid such unlawfulness. 20.1.16 Material Adverse Change Any event (or any
series of events) or circumstances occurs (or any existing circumstance continued) which is likely
to result in a Material Adverse Change. 20.2 Remedy 20.2.1 No Event of Default under clause 20.1
(Events of Default) (other than those referred to in clauses 20.1.1 (Non-Payment), 20.1.2
(Financial

 

 

Page 70 Covenant) and 20.1.4 (Security)) will occur if the failure to comply or circumstance
giving rise to the same is capable of remedy and is remedied within 10 (ten) Business Days, or
such further period as the Lenders may agree, of the Lenders giving notice to the Borrower or
any Obligor becoming aware of the failure to comply. 20.2.2 For the purposes of clause
20.2.l, the events or circumstances referred to in clause 20.1.6 (Insolvency),
clause 20.1.8 (Failure to comply with Final Judgement), clause 20.1,9 (Cessation of Business),
clause 20.1.12 (Governmental Intervention), clause 20.1.15 (Unlawfulness) and clause 20.1.16
(Material Adverse Change) shall be deemed to be incapable of remedy save to the extent set out
therein, 20.3 Acceleration If any Event of Default occurs which is continuing, the Facility
Agent mat shall be entitled, in its sole discretion and without prejudice to any other rights
or remedies which the Lenders may have under any of the Finance Documents or otherwise in
terms of South African law, by written notice to the Borrower: 20.3.1 to claim immediate
payment of all Facility Outstanding (including but not limited in capital and interest and
amounts in respect of duties, fees and charges owing by the Borrower to the Lenders under the
Finance Documents) regardless of whether or not such amounts are then otherwise due and
payable, all of which amounts shall, upon the delivery of such a notice, immediately become
due and payable; and/or 20.3.2 to declare the Facility Outstanding to be due and payable upon
demand; and/or 20.3.3 demand and be entitled to receive specific performance of the relevant
obligation of the Finance Documents (if any) breached by the Obligor; and/or

 

 

Page 71 20.3.4 take all steps which it regards as desirable in order to enforce, or perfect the
security interest created or evidenced by any one or more Security Document; and/or 20.3.5
cancel the whole or part of the Facility; and/or 20.3.6 claim payment from the Borrower of any
and all Breakage Costs, damages, costs and other amounts incurred directly as a result of such
Event of Default less the amount of any Breakage Gains. 20.4 If pursuant to clause 20.3.2 the
Facility Agent declares the Facility Outstandings to be due and payable on demand of the
Facility Agent then, and at any time thereafter, the Facility Agent may by written notice to
the Borrower call for repayment of the Facility Outstandings mutatis mutandis in accordance
with clause 20.3 on such date as it may specify in such notice (whereupon the same shall
become due and payable on such date), or withdraw its declaration with effect from such date
as it may specify in such notice. 21. TAXES 21.1 All payments to be made by the Borrower to
the Finance Parties hereunder shall be made free and clear of and without deduction for or on
account of tax unlessthe Borrower is required to make such a payment subject to the deduction
orwithholding of tax, in which case the sum payable by the Borrower in respect ofwhich such
deduction or withholdings is required to be made shall be increasedto the extent necessary to
ensure that, after the making of the required deductionor withholding, each Finance Party
receives and retains (free from any liabilityin respect of any such deduction or withholding)
a net sum equal to the sumwhich it would have received and so retained had no such deduction
orwithholding been made or required to be made. 21.2 Without prejudice to the provisions of
clause 21.1, if any Finance Party isrequired to make any payment on account of tax (not being
a tax imposed on the

 

 

Page 72 net income of the Finance Party by the jurisdiction in which it is incorporated) or
otherwise on or in relation to any sum received or receivable by it hereunder (including, without
limitation, any sum received or receivable under this clause 21) or any liability in respect of any
such payment is asserted, imposed, levied or assessed against any Finance Party, the Borrower
shall, upon demand, promptly indemnify the Finance Party against such payment or liability,
together with any interest, penalties and expenses payable or incurred in connection therewith;
save that in respect of any Lenders acceding into this Agreement, such indemnity shall only apply
to the extent that the Borrower would have had to indemnify the Original Lender in respect thereof
if it were that Lender. 21.3 If any Finance Party intends to make a claim pursuant to clause 21.2,
it shall notify the Borrower of the event by reason of which it is entitled to make suchclaim;
provided that nothing herein shall require the Finance Party to discloseany confidential
information relating to the organisation of its affairs. 21.4 The liability of the Borrower to any
Finance Party in terms of this clause 21 will be reduced by any tax credit granted to the Finance
Party in respect of the taxliabilities referred to in this clause 21. The Finance Parties undertake
todiligently pursue the granting of any such tax credits; provided that, if in theopinion of the
Finance Parties they will not be successful in obtaining such taxcredits, the Facility Agent will
be obliged., on written request by the Borrower toobtain an opinion, at the Borrower’s cost by
Senior Counsel of at least 10 (ten)years” standing regarding whether there is a reasonable prospect
of success inany such proceedings. In the event that the aforesaid Senior Counsel’s opinionstates
that there is a reasonable prospect of success the Finance Parties shall beobliged to pursue the
granting of such tax credits. The Borrower herebyindemnifies and holds the Finance Parties harmless
against, and shall on writtendemand pay to the Finance Parties, all reasonable cost incurred by
them inpursuing the granting of such tax credits.

 

 

Page 73 22. TAX RECEIPTS 22.1 If, at any time, the Borrower is required by law to make any
deduction or withholding from any sum payable by if hereunder (or if thereafter there is anychange
in the rates at which or the manner in which such deductions orwithholdings are calculated), the
Borrower shall promptly notify the FacilityAgent. 22.2 If the Borrower makes any payment hereunder
in respect of which it is requiredto make any deduction or withholding, it shall pay the full
amount required to bededucted or withheld to the relevant taxation or other authority within the
timeallowed for such payment under applicable law and shall deliver to the FacilityAgent, within 30
(thirty) days after it has made such payment to the applicableauthority, an original receipt (or a
certified copy thereof) issued by suchauthority evidencing the payment to such authority of all
amounts so required tobe deducted or withheld in respect of such payment. 23. INCREASED COSTS 23.1
If, by reason of any change in law or in its interpretation or administration and/or compliance
with any request from or requirement of any central bank or other fiscal, monetary or other
authority applying to banks generally in South Africa (including, without limitation, a request or
requirement which affects the manner in which the Lenders or any holding company of any Lender is
required to or does maintain capital resources having regard to such Lender’s obligations hereunder
and to amounts owing to it hereunder): 23.1.1 a Lender or any holding company of a Lender incurs a
cost as a result of that Lender having entered Into and/or performing its obligations under this
Agreement and/or assuming or maintaining a commitment under this Agreement and/or advancing the
Facility; and/or

 

 

Page 74 23.1.2 a Lender or any holding company of a Lender is unable to obtain the rate of return
on its overall capital which it would have been able to obtain but for that Lender having entered
into and/or performing its obligations and/or assuming or maintaining a commitment under this
Agreement; and/or 23.1.3 there is any increase in the cost to a Lender or any holding company of a
Lender of funding or maintaining the Loan; and/or 23.1.4.1 a Lender or any holding company of a
Lender becomes liable to make any payment on account of tax or otherwise (not being a tax imposed
on the net income of that Lender by the jurisdiction in which it is incorporated and being a tax
applying to banks generally in South Africa) on or calculated by reference to the Advance and/or to
any sum received or receivable by it hereunder, then the Borrower shall, from time to time on
demand of the Facility Agent, promptly pay, or shall procure that one or more Obligors pay. to the
Facility Agent for the account of that Lender amounts sufficient to indemnify it or any such
holding company against, as the case may be: 23.1.5 such cost; or 23.1.6 such reduction in such
rate of return (or proportion of such reduction as is attributable to its obligations hereunder);
or 23.1.7 such increased cost (or such proportion of such increased cost as is attributable to its
funding or maintaining the Loan); or 23.1.8 such liability. 23.2 If any Lender intends to make a
claim pursuant to clause 23.1, it shall notify the Facility Agent in writing of the event by reason
of which it is entitled to do so

 

 

Page 75 and confirming the amount of its claim; provided that nothing herein shall require that
Lender to disclose any confidential information relating to the organisation of its affairs.
Promptly upon receipt of any notice referred to in this clause 23.2, the Facility Agent shall
deliver such notice to the Borrower. 24. CERTIFICATE OF INDEBTEDNESS A certificate signed by any
director or manager of the Facility Agent (whose appointment need not be proved) as to the
existence of and the amount of Indebtedness by the Borrower to the Finance Parties, that such
amount is due and payable, the amount of interest accrued thereon and as to any other fact, matter
or thing related to the Borrower’s Indebtedness to the Finance Parties in terms of this Agreement,
shall be sufficient proof of the contents and correctness thereof for the purposes of provisional
sentence, summary judgment or any other proceedings, shall be valid as a liquid document for such
purpose and shall, in addition, be prima facie proof for purposes of pleading or trial in any
action instituted by the Finance Parties arising herefrom. 25. SET-OFF The Borrower authorises the
Finance Parties to apply any credit balance to which an Obligor is entitled on any account of an
Obligor with that Finance Party in satisfaction of any sum due and payable by the Borrower to the
Finance Parties hereunder but unpaid. No Finance Party shall be obliged to exercise any rights
given to it by this clause 25. 26. CHANGE OF PARTY 26.1 No Cession, Delegation or Assignment No
Party may cede or assign any of its rights or delegate or transfer any of its obligations in
respect of any Finance Documents or the Facility Outstandings except as permitted under this clause
26.

 

 

	
Page 76
26.2          Assignments and Transfers by the Lenders
  26.2.1  Subject to clause 26.3 (Conditions of Cession or Delegation), a Lender
          (the "Existing Lender") may (at no expense to any Obligor) cede any of
          its rights and/or delegate any of its obligations under this Agreement
          and any corresponding rights or obligations under any other Finance
          Document to any other person without the consent of any Obligor or any
          other Party (the "New Lender"), and the Obligors hereby expressly
          consent to any such cession of rights and/or delegation of obligations
          as contemplated herein. To the extent that any splitting of claims
          arises as a consequence of any such cession, assignment and/or
          delegation, as the case may be, the Obligors hereby consents to such
          splitting of claims.
26.3          Conditions of Cession or Delegation
26.3.1              A cession or delegation as contemplated in clause 26.2 (Assignment and
Transfers by the Lenders) will only be effective if the procedure set out in
clause 26.5 (Procedure for Transfer) is compiled with.
26.3.2              If:
26.3.2.1                  a Lender cedes,  assigns or transfers any of its rights or obligations
under the Finance
Documents; and
26.3.2.2                  as a result of circumstances existing as at the date on which the
cession, assignment, transfer or change occurs, an Obligor would be obliged to
make payment to the New Lender under clause 21 (Taxes) and clause 23 (Increased
Costs),
then the New Lender is only entitled to receive payment under that clause or to
enforce or require performance of such obligation to the same extent as the
Existing Lender would have been if the cession, assignment, transfer or change
had not occurred.

 

	
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26.4          Limitation of Responsibility of Existing Lenders
26.4.1 Unless expressly agreed to the contrary, an Existing Lender makes no
representation or warranty and assumes no responsibility to a New Lender for:
26.4.1.1                   the  legality,  validity,  effectiveness,  adequacy  or
enforceability  of the  Finance
Documents or any other documents;
26.4.1.2                   the financial condition of any Obligor;
26.4.1.3                   the  performance  and  observance  by any Obligor of its  obligations
under the Finance
Documents or any other documents; or
26.4.1 .4                  the accuracy of any statements  (whether  written or oral) made in or
in connection with
any Finance Document or any other document,
and any representations or warranties Implied by law are excluded.
26.4.2              Each New Lender confirms to the Existing Lender and the other Finance Parties
that it:
26.4.2.1 has made (and shall continue to make) its own independent investigation
and assessment of the financial condition and affairs of each Obligor and its
related entities in connection with its participation in the Finance Documents
and has not relied on any Information provided to it by the Existing Lender or
any other Finance Party in connection with any Finance Documents; and
26.4.2.2 will continue to make its own independent appraisal of the
creditworthiness of each Obligor and its related entities whilst any amount is
or may be outstanding under the Finance Documents.
26.4.3              Nothing in any Finance Document obliges an Existing Lender to:

 

	
Page 78
26.4.3.1                  accept a re-transfer  from a New Leader of any of the rights and
obligations  assigned or
transferred under this clause 26; or
26.4.3.2 support any losses directly or indirectly incurred by the New Lender by
reason of the non-performance by any Obligor of its obligations under the
Finance Documents or otherwise.
26.5          Procedure for Transfer
26.5.1 Subject to the conditions set out in clause 26.3 (Conditions of Cession
or Delegation) a transfer is effected in accordance with clause 26.5.2 when the
Facility Agent:
26.5.1.1                   executes an otherwise duly completed  Cession and Delegation
Agreement  delivered to it
by the Existing Lender; and
26.5.1.2                   a duly  completed  Accession  Undertaking  is  delivered  to it by
the  Existing  Lender
("Transfer Date").
26.5.2              On the Transfer Date:
26.5.2.1 to the extent that in the Cession and Delegation Agreement the Existing
Lender seeks to transfer by Cession and Delegation its rights and obligations in
whole or part ("Transferred Rights and Obligations") under the Finance
Documents, the Existing Lender shall be released from the Transferred Rights and
Obligations;
26.5.2.2                  each of the  Obligors  and  the New  Lender  shall  assume  the
Transferred  Rights  and
Obligations towards one another;
26.5.2.3 the Facility Agent, the New Lender and the other Landers shall acquire
fee same rights and assume the same obligations between themselves as they would
have acquired and assumed had the New

 

	
Page 79
Lender been an Original Lender with the rights and/or obligations acquired or
assumed by it as a result of the transfer and to that extent the Existing
Lenders shall each be released from further obligations to each other under the
Finance Documents; and
26.5.2.4                   the New Lender shall become a party to the relevant Finance Documents
as a
"Lender".
26.6          Copy of Cession and Delegation Agreement to the Borrower
The Facility Agent shall, as soon as reasonably practicable after it has
executed a Cession and Delegation Agreement, send to the Borrower a copy of that
Cession and Delegation Agreement and Accession Undertaking.
26.7          Disclosure of Information
26.8          Any Lender may disclose to any of its affiliates and any other person:
26.8.1              to (or through) whom that Lender cedes, assigns or transfers (or may
potentially
assign or transfer) all or any of its rights and obligations under the finance Documents;
26.8.2 with (or through) whom that Leader enters into (or may potentially enter
into) any sub-participation in relation to, or any other transaction under which
payments are to be made by reference to, the Finance Documents or any Obligor;
or
26.8.3              to whom, and to the extent that, information is required to be disclosed by
any applicable law or regulation,
any information about an Obligor, the Group and the Finance Documents as that
Lender shall (acting reasonably) consider appropriate for the purpose of that
actual or potential cession, assignment, transfer or sub-participation if, in

 

	                                                                                 Page 80
relation to clauses 26.8.1 and 26.8.2, the person to whom the information is to
be given has entered into a Confidentiality Undertaking in favour of the
relevant Obligor(s) or Group Company(ies).
26.9         No Change of Obligor
No Obligor shall cede, assign or transfer any of its rights or delegate any of
its obligations under any Finance Document.
27. INTEREST ON ARREAR AMOUNTS AND INDEMNITY
27.1 Interest calculated at the Default Interest Rate shall accrue on the
outstanding balance of all amounts due and payable but unpaid by the Borrower
from time to time in terms of this Agreement. Such interest shall be calculated
on a daily basis from the due date of each such overdue amount to (but
excluding) date of payment thereof, shall be compounded monthly in arrears and
shall be paid by the Borrower on demand.
27.2 The Borrower hereby indemnifies and holds the Finance Parties harmless
against any costs, claim, loss, expense (including legal fees on the scale as
between attorney and own client) or liability together with any VAT thereon,
which they may sustain or incur as a consequence of the occurrence of any
Default by the Borrower in the performance of any of the obligations expressed
to be assumed by it in this Agreement.

 

	
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28. FACILITY AGENT
28.1          Appointment of the Facility Agent
28.1.1 Each of the Lenders appoints the Facility Agent to act as its agent under
and in connection with the Finance Documents, and authorises the Facility Agent
to exercise the rights, powers, authorities and discretions specifically given
to the Facility Agent under or in connection with the Finance Documents together
with any other incidental rights, powers, authorities and discretions.
28.1.2 Notwithstanding anything to the contrary in this Agreement, the Finance
Parties shall, act through the Facility Agent as contemplated in this clause 28.
28.1.3              There shall be no change to the Facility Agent without the Borrower's written
consent.
28.2          Duties of the Facility Agent
28.2.1 The Facility Agent shall promptly forward to a Party the original or a
copy of any document which is delivered to the Facility Agent for that Party by
any other Party.
28.2.2 Except where a Finance Document specifically provides otherwise, the
Facility Agent is not obliged to review or check the adequacy, accuracy or
completeness of any document it forwards to another Party.
28.2.3 If the Facility Agent receives notice from a Party referring to this
Agreement, describing a Default and stating that the circumstance described is a
Default, it shall promptly notify the other Finance Parties.

 

	
Page 82
28.2.4 If the Facility Agent is aware of the non-payment of any principal,
interest or fee payable to a Finance Party (other than the Facility Agent) under
this Agreement it shall promptly notify the other Finance Parties.
28.2.5 The Facility Agent's duties under the Finance Documents are solely
mechanical and administrative in nature.
28.2.6 Nothing in this Agreement constitutes the Facility Agent as a fiduciary
of any other person.
28.2.7              The Facility Agent shall not be bound to account to any Lender for any sum or
the
profit element of any sum received by it for its own account.
28.3         Business with the Group
The Facility Agent may accept deposits from, lend money to and generally engage
in any kind of banking or other business with any member of the Group.
28.4         Rights and discretions
28.4.1              The Facility Agent may rely on:
28.4.1.1                   any representation, notice or document believed by it to be genuine,
correct and appropriately authorised; and
28.4.1.2 any statement made by a director, authorised signatory or employee of
any person regarding any matters which may reasonably be assumed to be within
his knowledge or within his power to verify.
28.5 The Facility Agent may assume (unless it has received notice to the
contrary in its capacity as agent for the Lenders) that:
28.5.1              no Default has occurred (unless it has actual knowledge of a Default);

 

	
Page 83
28.5.2              any notice or request made by the Borrower is made on behalf of and with the
consent and knowledge of all the Obligors.
28.6 The Facility Agent may engage, pay for and rely on the advice or services
of any lawyers, accountants, surveyors or other experts.
28.7          The Facility Agent may act in relation to the Finance Documents through its
personnel
and agents.
28.8 The Facility Agent may disclose to any other Party any information it
reasonably believes it has received as agent under this Agreement.
28.9 Notwithstanding any other provision of any Finance Document to the
contrary, the Facility Agent is not obliged to do or omit to do anything if it
would or might in its reasonable opinion constitute a breach of any law or
regulation or a breach of a fiduciary duty or duty of confidentiality.
28.10        Majority Lenders' instructions
28.10.1             Unless a contrary indication appears in a Finance Document, the Facility Agent
                    shall:
28.10.1.1 exercise any right, power, authority or discretion vested in it as
Facility Agent in accordance with any instructions given to it by the Majority
Lenders (or, if so instructed by the Majority Lenders (as defined in the
Intercreditor Agreement), refrain from exercising any right, power, authority or
discretion vested in it as Facility Agent); and
28.10.1.2 not be liable for any act (or omission) if it acts (or refrains from
taking any action) in accordance with an instruction of the Majority Leaders;

 

	
Page 84
28.10.2 Until the Intercreditor Agreement is entered into, all references to
"Majority Lenders" in clause 28.10.1 shall be deemed to be a reference to the
Original Lender.
28.10.3 Unless a contrary indication appears in a Finance Document, any
instructions given by the Majority Lenders will be binding on all the Lenders.
28.10.4 The Facility Agent may refrain from acting in accordance with the
instructions of the Majority Lenders (or, if appropriate, the Lenders) until it
has received such security as it may require for any cost, loss or liability
(together with any associated VAT) which it may incur in complying with the
instructions.
28.10.5 In the absence of instructions from the Majority Lenders, (or, if
appropriate, the Lenders) the Facility Agent may act (or refrain from taking
action) as it considers to be in the best interest of the Leaders.
28.10.6 The Facility Agent is not authorised to act on behalf of a Lender
(without first obtaining that Lender's consent) in any legal or arbitration
proceedings relating to any Finance Document. This clause 28.10.6 shall not
apply to any legal or arbitration proceeding relating to the perfection,
preservation or protection of rights under the Transaction Security Documents or
enforcement of the Transaction Security or Transaction Security Documents.
28.11         Responsibility for documentation
The Facility Agent is sot:
28.11.1             responsible for the adequacy, accuracy and/or completeness of any information
(whether oral or written) supplied by the Facility Agent, or an

 

	
Page 85
Obligor or any other person given in or in connection, with any Finance Document
or the transactions contemplated in the Finance Documents; or
28.11.2 responsible for the legality, validity, effectiveness, adequacy or
enforceability of any Finance Document or the Transaction Security or any other
agreement, arrangement or document entered into, made or executed in
anticipation of or in connection with any Finance Document or the Transaction
Security.
28.12 Exclusion of liability
28.12.1 The Facility Agent will not be liable for any action taken by it under
or in connection with any Finance Document or the Transaction Security, unless
directly caused by its gross negligence or wilful misconduct.
28.12.2 Nothing in this Agreement shall oblige the Facility Agent to carry out
any "know your customer" or other checks required pursuant to the Financial
Intelligence Centre Act, 2002 in relation to any person on behalf of any Lender
and each Lender confirms to the Facility Agent that it is solely responsible for
any such checks it is required to carry out and that it may not rely on any
statement in relation to such checks made by the Facility Agent.
29. CONFIDENTIALITY
29.1 Save with the prior written consent of the Borrower to the contrary, each
Finance Party will keep confidential and will not disclose to any person:
29.1.1 the details of any Finance Document, the details of the negotiations
leading to any Finance Document, and the information handed over to such Party
during the course of negotiations and the Term, as well as the details of all
the transactions or Agreements contemplated in any Finance Document; and

 

	
Page 86
29.1.2              all information relating to the business or the operations and affairs of the
       Group,
       (together "Confidential Information").
29.2 The Finance Parties agree to keep all Confidential Information confidential
and to disclose it only to their officers, directors, employees, consultants,
shareholders, professional advisers and any person to whom any Finance Party
wishes to cede any of its rights or delegate any of its obligations under any of
the Finance Documents who:
29.2.1 have a need to know (and then only to the extent that each such person
has a need to know);
29.2.2   are aware that the Confidential Information should be kept confidential;
29.2.3   are aware of the disclosing Party's undertaking in relation to such information in terms
of
this Agreement; and
29.2.4 have been directed by the disclosing Party to keep the Confidential
Information confidential and have undertaken to keep the Confidential
Information confidential.
29.3 The Finance Parties confirm that all employees, officers and directors are
contractually bound to maintain confidentiality and shall procure that each
consultant, shareholder and/or professional advisor enters in a confidentiality
undertaking in favour of the Borrower on substantially the same terms and
conditions as this clause 29.
29.4 The obligations of the Finance Parties in relation to the maintenance and
non- disclosure of Confidential Information in terms of this Agreement do not
extend to information that:

 

	
Page 87
29.4.1 is disclosed to the receiving Party in terms of this Agreement but at the
time of such disclosure such information is known to be in the lawful possession
or control of that Party and not subject to an obligation of confidentiality; or
  29.4.2 is or becomes public knowledge, otherwise than pursuant to a breach of
this Agreement by the Finance Party (or its offices, directors or employee) who
received such Confidential Information; or
29.4.3 is required by the provisions of any law, statute or regulation or during
any court proceedings, or by the rules or regulations of any recognised stock
exchange to be disclosed and subject to the provisions of clause 29.5, the Party
required to make the disclosure has taken all reasonable steps to oppose or
prevent the disclosure of and to limit, as far as reasonably possible, the
extent of such disclosure and has consulted with the other Parties prior to
making such disclosure.
29.5         Before any announcement or statement is made as required by any
             law, statute or regulation, or the rules or regulations of any
             recognised stock exchange, the affected Party shall use its
             reasonable endeavours to provide the other Parties with a written
             draft of the proposed announcement or statement at least 48
             (forty-eight) hours before the proposed time of the announcement
             and the Parties shall also use their reasonable endeavours to agree
             the wording and timing of all public announcements and statements
             relating to Confidential Information. If a written draft of the
             proposed announcement cannot be provided to the other Parties or
             agreement cannot be reached, by the time that any such announcement
             or statement must be made, the Party in question shall be free to
             make the relevant announcement or statement notwithstanding that
             such agreement has not been reached, but in so doing it shall not
             disclose more than the minimum information that it is compelled to
             disclose. Copies of any public announcement or statement shall be
             given to the other Party in the most expeditious manner reasonably
             available.

 

	
Page 88
29.6 The Finance Parties each agree to notify the Borrower in the event of a
disclosure of the Confidential Information under clause 29.4.3, or upon a breach
of this clause 29 coming to the relevant Finance Party's knowledge.
29.7 If so requested by the Borrower in writing, the Finance Parties shall use
reasonable endeavours to enforce their rights against any offices, director ,
employee and/or representative who breaches clause 29.2.
  29.8 The provisions of this clause 29 shall survive the termination of this
  Agreement, but shall terminate 24 (twenty-Four) months from the termination of
  this Agreement.
             29.9 The Finance Parties acknowledge that some or all of the
Confidential Information is or may be price-sensitive information and that the
use of such information may be regulated or prohibited by applicable legislation
relating to insider dealing, and the Finance Parties shall not use any of the
Confidential Information for unlawful purposes.
30. FEES AND EXPENSES
30.1          Fees
The Borrower  shall pay to the Original  Lender on the Advance Dale the fees  contemplated  in
the Fee
Letter, in the amounts agreed and on the dales stipulated therein.
30.2          Exit Fees
30.2.1              Should the Borrower pre-pay any sum pursuant to clause 10 (Prepayment)
and such prepayment is not funded by way of;
30.2,1,1                   cash generated by the business operations of the Group; and/or
3 0.2.1.2                  a Permitted Disposal; and/or

 

	
Page 89
30.2.1.3                   the raising of ordinary share capital,
the Borrower shall pay to the Lenders an exit fee in an amount equal to 1% (one
percent) of the Facility Outstandings should the prepayment occur on a date
falling before the 1st (first) anniversary of Financial Close, plus VAT thereon
on the date of prepayment pursuant to clause 10 (Prepayment).
30.3          Expenses
  30.3.1 The Borrower shall pay to, or at the direction of, the Facility Agent
  all reasonable expenses (including legal expenses on the scale as between
  attorney and own client printing and out-of-pocket expenses) incurred by the
  Finance Parties in connection with the negotiation, preparation and completion
  of the Finance Documents and an related documents, including without
  limitation all fees and expenses payable to the Legal Adviser, within 30
  (thirty) days of Invoice.
30.3.2 The Borrower shall on demand pay to, or at the direction of, the Facility
Agent all expenses (including legal and out-of-pocket expenses on the attorney
and own client scale), charges and disbursements and fees of a like nature,
including all taxes, incurred by the Finance Parties in preserving, enforcing or
defending, or attempting to preserve, enforce or defend, any of their rights
under the Finance Documents or any such related documents, save where the
Borrower successfully disputes that the Finance Parties are entitled to enforce
any such rights.

 

	
Page 90
30.4          Stamp Duty
The Borrower shall pay all stamp, documentary and other similar duties and taxes
to which any of the Finance Documents or any such related documents may be
subject or give rise and Indemnifies the Finance Parties from and against any
losses or liabilities which the Finance Parties may incur as a result of any
delay or omission by the Borrower to pay any such duties or taxes.
30.5          Value Added Tax
The amounts stated in the Finance Documents to be payable by the Borrower are
exclusive of VAT and accordingly the Borrower shall pay on demand:
30.5.1 any VAT property chargeable in respect of services to the Borrower as
contemplated by any of the Finance Documents (including any VAT chargeable by a
Finance Party under the Finance Documents);and
30.5.2 any VAT chargeable in the case of goods or services supplied to, or other
costs, fees and expenses incurred by, a Finance Party in connection with the
Finance Documents and which are to be met by the Borrower or in respect of which
the Borrower has agreed to indemnify the Finance Party.
3.1. NOTICES AND DOMlCILIA 31.l Notices
31.1.1              Each Party chooses the address set out opposite its name below as its
address to which any written notice in connection with this Agreement may be addressed.
31.1.1.1                  Original Lender:                    4th Floor,
                                                              F Block 135 Rivonia Road  Sandown
                                                              SANDTON

 

	
Page 91
                                                           Telefax No.:       (011) 295 3902
                                                           Attention             Head; Project
                                                           Management
31.1.1.2                   Facility Agent:                 4th Floor,
                                                           F Block
                                                           135 Rivonia Road
                                                           Sandown
                                                           SANDTON
                                                           Telefax No.:       (011) 295 3902
                                                           Attention   :       Head: Project
                                                                   Management
31.1.1.3           Borrower:                               Block 27
                                                          Randfontein Office Park
                                                          Cnr Main Reef Road and Ward
                                                           Avenue

                                                           RANDFONTEIN
                                       Telefax No.:       (011) +27 11 411 2070 The
                                       Attention   :       Company Secretary
31.1.2 Any notice or communication required or permitted to be given in terms of
this Agreement shall be valid and effective only if in writing but it shall be
competent to give notice by telefax transmitted to its telefax number set out
opposite its name above.
31.1.3 Either Party may by written notice to the other Party change its chosen
address and/or telefax number for the purposes of clause 31.1.1 to any other
address and/or telefax number, provided that the change shall become effective
on the 14th (fourteenth) day after the receipt of the notice by the addressee.
31.1.4 Any notice to a Party contained in a correctly addressed envelope and
delivered by hand to a responsible person during ordinary business hours 

 

	
Page 92
                           at its chosen physical address in terms of clause 31.1.1, shall be
deemed to
have been received on the day of delivery.
31.1.5 Any notice by telefax to a Party at its telefax number shall be deemed to
have been received on the 1st (first) Business Day after the date of
transmission.
31.1.6 Notwithstanding anything to the contrary hereto contained, a written
notice or communication actually received by a Party shall be an adequate
written notice or communication to it, notwithstanding that it was not sent to
or delivered at its chosen address and/or telefax number.
31.2         Domicilia
31.2.1 Each of the Parties chooses its physical address referred to in clause
31.1 (Notices) as its domicilium citandi et executandi at which documents in
legal proceedings in connection with this Agreement may be served.
31.2.2 Either Party may by written notice to the other Party change its
domicilium from time to time to another address, not being a post office box or
a poste restante, in South Africa; provided that any such change shall only be
effective on the 14th (fourteenth) day after deemed receipt of the notice by the
other Party pursuant to clause 31.1.4 (Notices) or 31.1.5 (Notices), as the case
may be.
32. GOVERNING LAW
The entire provisions of this Agreement shall be governed by and construed in
accordance with the laws of South Africa.

 

	
Page 93
33. JURISDICTION
The Parties hereby irrevocably and unconditionally consent to the non-exclusive
jurisdiction of the Witwatersrand Local Division of the High Court of South
Africa (or any successor to that division) in regard to all matters arising from
this Agreement.
34. SEVERABILITY
Each provision in this Agreement is severable from all others, notwithstanding
the manner in which they may be linked together or grouped grammatically, and if
in terms of any judgment or order, any provision, phrase, sentence, paragraph or
clause is found to be defective or unenforceable for any reason, the remaining
provisions, phrases, sentences, paragraphs and clauses shall nevertheless
continue to be of full force. In particular, and without limiting the generality
of the aforegoing, the Parties hereto acknowledge their intention to continue to
be bound by this Agreement notwithstanding that any provision may be found to be
unenforceable or void or voidable, in which event the provision concerned shall
be severed from the other previsions, each of which shall continue to be of full
force.
35.    GENERAL
35.1     35.1 This document constitutes the sole record of the agreement between the Parties
in regard to the subject matter thereof.
35.2     35.2 No Party shall be bound by any express or implied term, representation,
warranty, promise or the like, not recorded herein.
35.3 No addition to, variation or consensual cancellation of this Agreement and
no extension of time, waiver or relaxation or suspension of any of the
provisions or terms of this Agreement shall be of any force or effect unless in
writing and signed by or on behalf of all the Parties.

 

	
Page 94
35.4 No latitude, extension of time or other indulgence which may be given or
allowed by any Party to any other Party in respect of the performance of any
obligation hereunder or enforcement of any right arising from this Agreement and
no single or partial exercise of any right by any Party shall under any
circumstances be construed to be an implied consent by such Party or operate as
a waiver or a novation of, or otherwise affect any of that Party's rights in
terms of or arising from this Agreement or estop such Party from enforcing, at
any time and without notice, strict and punctual compliance with each and every
provision or term hereof.
35.5 The Parties undertake at all times to do all such things, to perform all
such acts and to take all such steps and to procure the doing of all such
things, the performance of all such actions and the taking of all such steps as
may be open to them and necessary for or incidental to the putting into effect
or maintenance of the terms, conditions and import of this Agreement.
35.6 Save as is specifically provided in this Agreement, no Party shall be
entitled to cede, assign or delegate any of its rights or obligations under this
Agreement without the prior written consent of the other Parties affected by
such transfer of rights or obligations, which consent may not unreasonably be
withheld or delayed.
36. COUNTERPARTS
This Agreement may be executed in any number of counterparts and by different
Parties hereto in separate counterparts, each of which when so executed shall be
deemed to be an original and all of which when taken together shall constitute
one and the same Agreement.
                       THE NEXT PAGE IS THE SIGNATURE PAGE

 

	                 SIGNED at SANDTON on this the
27TH day of SEPTEMBER 2007
          For and on behalf of
          NEDBANK LIMITED
          (acting through its NEDBANK CAPITAL division)
          (as "Original Lender and" and "Facility Agent")
          /s/ M R WESTER
          Name: M R WESTER
          Capacity: Authorized Signatory
          Who warrants his authority hereto
          /s/ Brad Maxwell
          Name: Brad Maxwell
          Capacity: AUTHORIZED SIGNATORY
          Who warrants his authority hereto

 

	SIGNED at SANDTON on this the 27TH day of
SEPTEMBER 2007'
 For and on behalf of
 HARMONY GOLD MINING COMPANY LIMITED
 (as "Borrower")
/s/ Frank Abbott
Name: Frank Abbott
Capacity: Director
Who warrants his authority hereto

 

	SIGNED at SANDTON on this the 27TH day of
SEPTEMBER 2007
              For and on behalf  of
              AFRICAN RAINBOW MINERALS GOLD LIMITED
              (as "Guarantor")
              /s/ Frank Abbott
              Name: Frank Abbott
              Capacity: Director
              Who warrants his authority hereto

 

	SIGNED at SANDTON on this the 27TH day of
SEPTEMBER 2007
For and on behalf of
EVANDER GOLD MINES LIMITED
(as "Guarantor")
/s/ Frank Abbott
Name: Frank Abbott
                               Capacity: Director
                       Who warrants his authority hereto

 

	SIGNED at SANDTON on this the 27TH day of
SEPTEMBER 2007
 For and on behalf of
 ARMGOLD/HARMONY JOINT INVESTMENT COMPANY (PROPRIETARY) LIMITED
(as "Guarantor")
/s/ Frank Abbott
Name: Frank Abbott
Capacity: Director
Who warrants his authority hereto

 

	SIGNED at SANDTON on this the 27TH day of
SEPTEMBER 2007
 For and on behalf of
 ARMGOLD/HARMONY FREEGOLD
JOINT VENTURE COMPANY
(PROPRIETARY) LIMITED
(as "Guarantor")
/s/ Frank Abbott
Name: Frank Abbott
Capacity: Director
Who warrants his authority hereto

 

	SIGNED at SANDTON on this the 27TH day of
SEPTEMBER 2007
For and on behalf of
RANDFONTEIN ESTATES LIMITED
(as "Guarantor")
/s/ Frank Abbott
Name: Frank Abbott
Capacity: Director
Who warrants his authority hereto

 

	SIGNED at SANDTON on this the 27TH day of
SEPTEMBER 2007
 For and on behalf of
 AVGOLD LIMITED
 (as "Guarantor")
/s/ Frank Abbott
Name: Frank Abbott
Capacity: Director
Who warrants his authority hereto

 

	
SCHEDULE 1
CONDITIONS
 Part 1: Advance Condition Documents
 1. The Borrower
 1.1         A Copy of the Constitutional Documents of the Borrower.
 1.2         A copy of a resolution of the board of directors of the Borrower:
 l.2.1              approving the terms of, and the transactions contemplated by, the Finance
 Documents to which it is a party and resolving to execute those Finance Documents;
 1.2.2              authorising a specified  person  or persons to   execute  the  Finance
                    Documents to which it is a party on its behalf; and
 1.2..3             authorising a specified person or persons, on its behalf, to
                    sign and/or despatch all documents and notices to be signed
                    and/or despatched by it under or in connection with the
                    Finance Documents to which it is a party.
 1.3          A specimen of the signature of each person authorised by the resolution referred
            to in paragraph 1.2.
1.4          A certificate signed by an Authorised Signatory of the Borrower
             confirming that borrowing the Available Facility would not cause
             any borrowing or similar limit in its Constitutional Documents
             binding on it to be exceeded.
1.5          A certificate by an Authorised Signatory of the Borrower certifying
             that the copy of each document referred to in paragraphs 1.1 to 1.4
             (both inclusive) is correct, complete and in full force and effect
             as at a date no earlier than the Signature Date.
1.6          A certificate of an Authorised signatory of the Borrower stating that:

 

	   1.6.1              the representations and
warranties given by the Borrower
                      in clause 15 (Warranties and Representations) of this
                      Agreement shall be correct in all material respects at
                      Financial Close; and
   1.6.2              no Default shall have occurred at the date of Financial Close which is
   continuing.
  2.     The Guarantors
  2.1          A copy of the Constitutional Documents of each Guarantor.
  2.2          A copy of a resolution of the board of directors or other governing body of each
               Guarantor:
  2.2.1              approving the items of, and the transactions contemplated by, the Finance
                     Documents to which it is a party and resolving :to execute those Finance
                     Documents;
 .2.2.2              authorising a specified person or persons, to execute the Finance
                     Documents to which it is a party on its behalf; and
 2.2.3               authorising a specified person or persons, on its behalf,
                     to sign and/or despatch all documents and notices to be
                     signed and/or despatched by it under or in connection with
                     the Finance Documents to which it is a party.
2.3      A specimen of the  signature of each person  authorised by the  resolution  referred to
              in paragraph 2.1.
2.4           A certificate signed by an Authorised Signatory of each Guarantor
              confirming that guaranteeing the Facility Outstandings would not
              cause any guaranteeing or similar limit in its Constitutional
              Documents binding on it to he exceeded.
2.5          A certificate by an Authorised Signatory of each Guarantor
             certifying that the copy of each document referred to in paragraphs
             2.1 to 2.4 (both inclusive) is correct, complete and in full force
             and effect as at a date no earlier than the Signature Date.
2.6          A certificate by an Authorised Signatory of each Guarantor stating
             that the representations and warranties given by that Guarantor in
             clause 15 (Warranties and Representations) of this Agreement shall
             be correct in all material respects at Financial Close.

 

	  3.      Legal opinions
3.1          A legal opinion from Cliffe Dekker Inc. addressed to the Lender
             relating, inter alia, to the due execution by each Obligor of the
             Finance Documents to which it is a party, and the authority of each
             Obligor to enter into the Finance Documents to which it is a party.
 4.   Finance Documents
 4.1. A duly executed original of each of the following: 4.1.1 this Agreement;
 4.1.2                 the cession in securitatem debiti and pledge of' the
                       Subsidiaries' Shares and the Deposit Account by the
                       Borrower in favour of the Finance Parties;
 4.1.3               the cession in securitatem debiti and pledge of ARMgold's
                     shares in ARMgold/Harmony Joint Investment Company
                     (Proprietary) Limited and ARMgold/Harmony Freegold Joint
                     Venture Company (Proprietary) Limited by ARMgold in favour
                     of the finance Parties.
4.2          Each of the  following  in relation  to shares  pledged  pursuant to the  Security
             Documents:
 4.2.1              the original share certificates in respect of such shares;
 4.2.2              an original share transfer form duly signed by the pledgor of such shares
                    and blank as to transferee; and
 4.2.3              a resolution of the directors of the company, the shares,
                    of' which are pledged, acknowledging such pledge and
                    agreeing to give effect to any transfer of such shares
                    pursuant to the terms of such pledge.
4.3          All  notices  required to be  delivered  and all  acknowledgements  required to be
             received under the terms of any Security Document.
5.     Financial Information
       A copy of the Original Financial Statements.

 

	
6.     Fee Letter
The  execution of the Fee Letter
Part 2: Advance Conditions
The Lenders shall only Be obliged to make the Advance in terms of this Agreement it
1.	no Default shall:
2.	the   warranties   and  representations made  in   clause   15   (Warranties   and
Representations)of this Agreement shall be correct and willl be correct in all material
respects immediately after the making of the Advance;
3.  in the reasonable opinion of the Facility Agent there has been no Material, Adverse Change in either the borrower or any of the Obligors: since the date of the Original Financial Statements which could be expected to affect the ability of the
Borrower to .fulfil its obeligation in terms of the Finance Documents in an adverse manner
4. in the reasonable opinion of the Facility Agent there has been no material  Adverse Change since the Signature Date.

 

	
SCHEDULE 2
                                           THE GUARANTORS
 1. African Rainbow Minerals Gold Limited; 2. Evander Gold Mines Limited;
3. ARMgold/Harmony Joint Investment Company (Proprietary) Limited; 4.
ARMgold/Harmony Freegold Joint Venture. Company (Proprietary) Limited;
5. Randfontein Estates Limited; 6. Avgold Limited;

 

	
SCHEDULE 3
DISCLOSED ENCUMBRANCES
                  Nil

 

	
SCHEDULE 4
                                 DISCLOSED INDEBTEDNESS
1.       R1 700 000 000 (one billion seven hundred million Rand) 4,875% (four
         comma eight seven five percent) convertible bonds (due 2009) issued by
         the Borrower
2.       As per Annexure 4.1

 

	Annexure 4.1
HARMONY GOLD MINING COMPANY LIMITED
REGISTER OF GUARANTEES
Jun-07
                                                                        Enviormental     Other
Company             Terement Number  Benefictory       Issued           Amount           Amount
                                                                        R                R
Harmony Gold        85909929320      AECT Limited      30-Nov-00
248,794.00
Mining Company
Harmony Gold        810200502259     Department of     30-Nov-02        40,000.00
Mining Company                       Mineral and
                                     Energy
Harmony Gold        81020206926      Department of     25-Jun-02        21,5000,000.00
Mining Company                       Mineral and
                                     Energy
Harmony Gold        81020206930      Department of     25-Jun-02        3,700,000.00
Mining Company                       Mineral and
                                     Energy
Harmony Gold        81020206931      Department of     25-Jun-02        2,300,000.00
Mining Company                       Mineral and
                                     Energy
Kalptots            81020208977      Department of     28-Aug-02        650,000.00
                                     Mineral and
                                     Energy
Randfontain         M326752          Eskom             28-Feb-98                         31,000.00
Estates Limited
Randfontain         M326753          Eskom             02-Feb-98                         77,000.00
Estates Limited
Randfontain                          Eskom             24-Mar-92                         12,200.00
Estates Limited
Randfontain                          Telkom            31-Oct-89
148,680.00

Estates Limited
Randfontain                          Telkom            31-Oct-90
136,332.00
Estates Limited
Randfontain                          Snyman Van Der    20-Mar-97
431,000.00
Estates Limited                      Hssver
                                     Incorporated
Randfontain         M333565          Rand Fontain      12-Jan-89                         16,129.00
Estates Limited                      Multicipality
Randfontain         M351047          Rand Fontain      02-Dec-86                         74,221.00
Estates Limited                      Multicipality
Randfontain         M351138          South African     02-May-84
200,000.00
Estates Limited                      Transport
                                     Services
Randfontain         M354951          City of           07-Jul-89                         4,000.00
Estates Limited                      Johannasburg
Randfontain         M359617          Department of     12-Apr-99        20,000.00
Estates Limited                      Mineral and
                                     Energy
Randfontain         M432371 /        Department of     23-Feb-04        25,000.00
Estates Limited     M312525          Mineral and
(new)                                Energy
West Rand           M300820          Department of     24-Oct-96        10,000.00
Consolidated Mines                   Mineral and
                                     Energy
West Rand           M379315          Department of     05-May-00        30,000.00
Consolidated Mines                   Mineral and
                                     Energy
West Rand           M312529          Department of     26-Jul-97        25,000.00
Consolidated Mines                   Mineral and
                                     Energy
West Rand           M312457          Department of     28-Jul-97        10,000.00
Consolidated Mines                   Mineral and
                                     Energy
West Rand           M308362          Department of     28-May-97        5,000.00
Consolidated Mines                   Mineral and
                                     Energy
West Rand                            Eskom             01-Oct-98
700,000.00
Consolidated Mines
Winkelhook Mines    S13615 / MS      Council of        10-Jul-03
250,000.00
Limited             GRV 4232957      Nuclear Safety
Winkelhook Mines    S13616 / MS      Eskom             10-Jul-03
246,500.00
Limited             GRV 4232987
Winkelhook Mines    S13617 / MS      Eskom             10-Jul-03
268,900.00
Limited             GRV 4232983
Winkelhook Mines    S13618 / MS      Eskom             10-Jul-03                         64,000.00
Limited             GRV 4233989
Winkelhook Mines    MS GRV V         Eskom             10-Jul-03
266,610.00
Limited*            2047977
Winkelhook Mines    S13619 / MS      Eskom             10-Jul-03
1,117,450.00
Limited             GRV 4233002
Winkelhook Mines    S13620 / MS      Eskom             10-Jul-03
310,050.00
Limited             GRV 4233009
Winkelhook Mines    S13621 / MS      Eskom             10-Jul-03
1,346,600.00
Limited             GRV 4233013
Winkelhook Mines    S13622 / MS      Eskom             10-Jul-03
868,850.00
Limited             GRV 4233018
Winkelhook Mines    S13623 / MS      Eskom             10-Jul-03
272,000.00
Limited             GRV 4233021
Winkelhook Mines    MS GRV 4233023   Eskom             10-Jul-03
336,200.00
Limited*
Winkelhook Mines    S13624 / MS      Eskom             10-Jul-03                         45,500.00
Limited             GRV 4233046
Winkelhook Mines    208617 / S15065  Eskom             25-Apr-02
370,600.00
Limited*
Winkelhook Mines    208618 / S15064  Eskom             25-Apr-02
1,269,818.00
Limited*
Leslie Golg Mines   S13625 / MS      Eskom             10-Jul-03
624,400.00
Limited             GRV 4233050
Leslie Golg Mines   S13626 / MS      Eskom             10-Jul-03
334,100.00
Limited             GRV 4233053
Leslie Golg Mines   S13627 / MS      Eskom             10-Jul-03                         89,800.00
Limited             GRV 4233055
Leslie Golg Mines   S13628 / MS      Eskom             10-Jul-03
371,460.00
Limited             GRV 4233067
Leslie Golg Mines   S13629 / MS      Eskom             10-Jul-03
2,019,750.00
Limited             GRV 4233070
Leslie Golg Mines   S13630 / MS      Eskom             10-Jul-03
1,750.000.00
Limited             GRV 4233074
Leslie Golg Mines   S13631 / MS      Eskom             10-Jul-03
555,700.00
Limited             GRV 4233080
Leslie Golg Mines   7580296          Council of        14-Nov-95
250,000.00
Limited*                             Nuclear Sefety
Evander Gold        S13632 / MS      Els Chaster &     10-Jul-03
170,894.09
Mining Company      GRV 4233083      Lower
Free Gold - St      81020211331      Deparment of                       35,000 000.00
Heleno (new)                         Mineral and
                                     Energy
Free Gold - St      81020211331      Deparment of                       13,400 000.00
Heleno (new)                         Mineral and
                                     Energy
Free Gold - St                       Eskom                                               40,000.00
Heleno (new)
Free Gold - St                       Nuclear Safety
250,000.00
Heleno (new)
Free Gold - St                       Water Supply
2,206,186.00
Heleno (new)
                                                                        76,715 000.00
17,768,724.09

 

	
SCHEDULE 5
                                         DISCLOSED LOANS
A loan still to be advanced to Pamodzi Gold Limited by the Borrower of a
principal amount not exceeding R33 000 000 (thirty three million Rand); provided
that the funds to be advanced are received by the Borrower pursuant to the
exercise of the Borrower's put option to sell certain preference shares held by
the Borrower to Pamadzi Resources (Proprietary) Limited for an amount of not
less than R57 000 000 (fifty-seven million Rand).

 

	
SCHEDULE 6
                 DISCLOSED POTENTIAL ENVIRONMENTAL CLAIM
The Borrower has been advised that the Department of Water Affairs and Forestry
("DWAF") may issue a directive in terms of the National Water Act, 1998 to
entities who are conducting or who have conducted mining activities in the
Wonderfontein Catchment area, which entities may include the Borrower and/or one
or more Group Companies, relating to the alleged contamination of Wonderfontein
Spruit and the rehabilitation and remediation thereof.

 

	
SCHEDULE 7
                                       TRANSACTION SECURITY
1.      Cession in security of the Borrower's right, title and interest in and
        to the Subsidiaries' Shares, the Subsidiaries' Loans and the Deposit
        Account, and pledge of the Subsidiaries' Shares by the Borrower in
        favour of the Finance Parties on a joint and several basis.
       Cession in security of ARMgoId's right, title and interest in and to its
       shares in ARMgold/Harmony Joint Investment Company (Proprietary) Limited
       and ARMgold/Harmony Freegold Joint Venture Company (Proprietary) Limited
       (the "ARMgold Shares") and pledge of the ARMgold Sharer by ARMgold in
       favour of theFinance Parties on a joint and several basis.

 

	
SCHEDULE 8
                                   FORM OF COMPLIANCE CERTIFICATE
 To:          Nedbank Limited (acting through its Nedbank Capital division) (as "Lender")
              135 Rivonia Road
              Sandown
              2196 Attention: [o]
 And to:      [o]
                   (as Lender)
 And to:      [insert]
 [Date]
 Dear Sirs
 SENIOR FACILITY AGREEMENT ENTERED INTO BETWEEN inter alia NEDBANK LIMITED
 (ACTING THROUGH ITS NEDBANK CAPITAL division), HARMONY GOLD MINE LIMITED
 ("BORROWER") AND VARIOUS SUBSIDIARIES OF THE BORROWER DATED [ ] 2007 (the
 "Facility Agreement")
1.     We refer to the Facility Agreement This is a Compliance Certificate, and
       terms used in this Compliance Certificate have the same meaning as in the
       Facility Agreement.
2.     This Compliance Certificate is in respect of the Ratio Test Period ended
       [ ] (being the Ratio Test Date), pursuant to clause 19 (Financial
       Covenant) of the CTA.
3.     We confirm that in respect of the Ratio Test Date:
                                      As Calculated                Covenant  Compliance
                                                                                      (Yes/No)
        Interest Cover Ratio
4. [We confirm that no Default is continuing.]*
* If this statement cannot be made, the Certificate should identify any Default
that is continuing and the steps, if any, being taken to remedy it.

 

	 For and on behalf of
 HARMONY GOLD MINING COMPANY LIMITED
Name:
 Capacity:
 Who warrants his authority hereto

 

	                                                                   SCHEDULE 9
     FORM OF LENDER'S ACCESSION UNDERTAKING
                                      ACCESSION UNDERTAKING
To:           Nedbank Limited (acting through its Nedbank Capital division)
              (as "Facility Agent")
              135 Rivonia Road
              Sandown
              2196
              Attention: [o]
From:         [Insert full name of New Lender] (the "New Lender")
[Date]
Dear Sirs
SENIOR FACILITY AGREEMENT ENTERED INTO BETWEEN inter alia NEDBANK LIMITED
(ACTING THROUGH ITS NEDBANK CAPITAL DIVISION), HARMONY GOLD MINE LIMITED
("BORROWER") AND VARIOUS SUBSIDIARIES OF THE BORROWER DATED [ ]2007 (the
"Facility Agreement")
1. We refer to the Facility Agreement
2. This is an Accession Undertaking, and terms used in this Accession
Undertaking have the same meaning as in the Facility Agreement.
3. This Accession Undertaking is delivered to Nedbank as the Facility Agent
pursuant to clause 26 (Change of Party) of the Facility Agreement
4. In consideration of the New Lender being accepted as a Lender for the
purposes of the Facility Agreement, and the other relevant Finance Documents (if
any) pursuant to the Facility Agreement, the New Lender hereby confirms that, as
from the date of acceptance of this Accession Undertaking by the Existing
Lenders, it:

 

	4.1           intends to be Party to the Facility
Agreement and the other relevant Finance
Documents as a Lender;
4.2 undertakes to perform all the obligations expressed in the Facility
Agreement, and the other relevant Finance Documents (if any) to be assumed by a
Lender to the extent that such obligations have been delegated to the New Lender
as described in the Cession and Delegation Agreement relating to this Accession
Undertaking;
4.3 agrees that It shall be bound by all the provisions of the Facility
Agreement and the other relevant Finance Documents (if any) as if it had been an
original party to those Finance Documents as a Lender; and
4.4 accepts the benefits conferred upon the Lenders under the Finance Documents,
including in particular the Security Documents.
5. This Accession Undertaking may be executed in any number of counterparts and
this has the same effect as if the signatures on the counterparts were on a
single copy of this Accession Undertaking.
6. This Accession Undertaking shall be governed by and construed in accordance
with the laws of South Africa. For and on behalf of
[NEW LENDER]
----------------------------
Name:
Capacity:
Who warrants his authority hereto
For and on behalf of
NEDBANK LIMITED (acting through its Nedbank Capital division)
(as "Facility Agent")
----------------------------
Name:
Capacity:
Who warrants his authority hereto

 

	
SCHEDULE 10
               AGREED FORM OF CESSION AND DELEGATION AGREEMENT
THIS    SALE,    CESSION    AND    DELEGATION    AGREEMENT    is    dated       _______and made
     BETWEEN:
     (1) [.] (the "New Lender"); and
     (2) [.] (the "New Lender"); and
     (3) NEDBANK LIMITED (acting through its Nedbank Capital division) (as
"Facility Agent").
     IT IS AGREED as follow:
     1.      INTERPRETATION
     1.1 In this Agreement, unless inconsistent with the context, all
     capitalised terms shall have the respective meanings assigned to such terms
     below, all capitalised terms for which no meanings have been assigned
     herein shall have the meanings assigned to them in the Senior Facility
     Agreement, and cognate terms shall have corresponding meanings:
     1.1.1 "this Agreement" means this Agreement, together with all schedules
     and appendices hereto and any written and signed amendments to the
     aforementioned;
     1.1.2              "the Borrower" means Harmony  Gold  Mining Company Limited (Registration
     No. 1950/038232/06), a public company, incorporated under the laws of South Africa;
     1.1.3              "the Effective Date" means, notwithstanding the Signature Date [o];
     1.1.4 "Effective Date Facility Outstanding" means the aggregate principal
     amount owing by the Borrower to the Existing Lender under the Senior
     Facility Agreement as at the Effective Date which has not been prepaid or
     repaid irrevocably, unconditionally and in full;

 

	      1.1.5              "Existing Lender" means
[o], (Registration No. [INSERT]), a [public]
      company incorporated under the laws of South Africa;
      1.1.6              "Facility AgENT" means Nedbank:
      1.1.7              "nacm" means nominal annual compounded monthly in arrear;
     1.1.8               "Nedbank" means Nedbank Limited (acting through its Nedbank Capital
..       .                division)   (Registration No.   1951/000009/06),   a   public   company
                         incorporated under the laws of South Africa, which is registered as a
                         bank in terms of the Banks Act, 1990;
      1.1.9              ":the New Lender" means [.] (Registration No. [o]), a [public] company
                         incorporated under the laws of South Africa;
     1.1.10             "Parties" Means the Existing Lender and the New Lender and "Party"
                         means, as the context requires, either of them;
     1.1.11             "the Prime Rate" means the nacm prime overdraft rate of
                        interest from time to time publicly quoted as such by
                        Nedbank, calculated on a 365 (three hundred and sixty
                        five) day factor, irrespective of whether or not the
                        year is a leap year, as certified by an manager of
                        Nedbank, whose appointment as such it shall not be
                        necessary to prove, which certificate shall serve as
                        prima facie proof of its contents;
     1.1.12             "Senior Facility Agreement" means the written agreement
                        titled the "senior Facility Agreement", entered into
                        between Nedbank, the Borrower and the Guarantors as
                        listed in Schedule 2 thereto on or about
                                     [         ] 2007
     1.1.13             "the Signature  Date" means the date of last signature of this Agreement;
     1.1.14             "the Sold Rights and Obilgations" means that amount of the Existing
                        Lender's right, title and interest:
                        1.1.14.1    under the Finance Documents insofar as they relate to the
                        Facility;
     1.1.14.2                  to the Effective Date Facility Outstandings;
                        as stipulated in Annexure "A" as being sold by the Existing Lender to the
                        New Lender;

 

	 1. 1.15            "South Africa" means the
Republic of South Africa;
 1.1.15.1                  any reference to the singular includes the plural and vice versa;
 1.1.15.2                  any reference to natural persons includes legal persons and vice
                           versa;
 1.1.15.3                 any reference to a gender includes the other genders;
 1.1.15.4                  any reference to an enactment is to that enactment as at the Signature
                          Date and as amended or re-enacted from time to time.
 1 .2         If any definition contains a substantive provision conferring rights or  imposing
              obligations  on  any  party,  effect  shall  be  given  to it as if it a
substantive
              provision  in the  body of  this  Agreement,  notwithstanding  that it is only in
the
              definition clause.
1.3          Words and expressions defined in any sab-clause shall, for the
             purposes of the clause of which that sub-clause forms part, bear
             the meaning assigned to such words and expressions in that
             sub-clause.
1.4          The headnotes to the clauses of this Agreement have been inserted
             for reference purposes only and shall in no way govern or affect
             the interpretation hereof.
 1.5         When any number of days is prescribed, same shall be reckoned
             inclusively of the first and exclusively of the last day.
 1.6         Reference to day/s shall be construed as any day, irrespective of
             whether or not It Is a Business Day.
 1,7         Reference to month/s means a period starting on one day in a
             calendar month and ending on the day preceding the numerically
             corresponding day in the next calendar month, except that:
1.7.1               if the day preceding such numerically corresponding day is
                    not a Business Day, that period shall end on the next
                    Business Day in that next calendar month if there is one, or
                    if there is not, on the immediately preceding Business Day;
                    and
1.7.2                   if there is on numerically corresponding day in the next
                        calender month, that period shall end on the last
                        Business Day in such next calendar month;

 

	1.8           Reference to calendar month/s shall
be construed as one or more of
              the twelve named periods into which a year is divided in terms of
              the Gregorian calendar.
1.9           Where any act is to performed on a day which is not a Business
              Day, such act shall be performed on the Business Day immediately
              preceding such day.
 1.10         Where figures are referred to in numerals and in words, if there
              is any conflict between the two, the words shall prevail.
 2. SALE AND PURCHASE
       The Existing Lender hereby sells to the New Lender, which hereby
       purchases from the Existing inder, with effect from the Effective Date,
       the Sold Rights and Obligations
 3. PURCHASE PRICE
 3.1          As consideration for the sale of the Sold Rights and Obligations, the New
              Lender shall pay to the Existing Lender the amount of R [          ]( [
                                 ])("the purchase price") which shall be paid by
              the New Lender to the Exising Lender on the Effective Date in
              immediately available funds, free of any deductions, exchange or
              other charges by electronic transfer into the following bank
              account:
              Account name
              Bank         :
              Branch             :
              Code:
            Account Number:
3.2          The purchase price shall, if it is not paid on the Effective Date,
             bear interest from the Effective Date to the date of payment at the
             Prime Rate.
3.3          The Parties record that the sale of the Sold Rights and Obligations
             pursuant to this Agreement is the transfer of a "debt security" (as
             defined in Section 2(2) of the VAT Act) and is accordingly exempt
             from VAT under Section 12(a) of the VAT Act.
3.4          Notwithstanding the provisions of clause 3.3, if the sale of the
             Sold Rights and Obligations is subject to VAT, the purchase price
             shall be deemed to be

 

	 3.5          exclusive of VAT, which shall be
payable by the New Lender to the Existing
              Lender against delivery by the Existing Lender to the New Lender of a valid tax
              invoice in respect thereof.
 4. DELIVERY
4.1          Against payment by the New Leader to the Existing Lender of the purchase price as
             provided for in clause 3, and with effect on the Effective Date, the Existing Lender
             hereby;
 4.1.1              cedes, assigns and transfers the Sold Rights and Obligations to the New
                    Lender; and
 4.1.2              delegates to the New Leader all of the Existing Lender's obligations under
                    the Finance Documents to the extent related to the Sold Rights and
                    Obligations,
              without recourse to the Existing Lender.
4.2          The New Lender hereby accepts:
 4.2.1              the cession, assignment and transfer of the Sold Rights and Obligations to
                    the New Lender; and
 4.2.2              the delegation to the New Lender of the Existing Lender's
                    obligations under the Finance Documents to the extent
                    related to the Sold Rights and Obligations, which
                    obligations the New Lender hereby assumes;
              without recourse to the Existing Lender.
4.3          The New Lender hereby irrevocably binds itself in favour of the
             parties to each of the Finance Documents to the terms of the
             Finance Documents, as if it had been a party thereto and any
             Finance Party shall be entitled to accept the benefit of this
             clause 4.3 and any other benefits conferred on it in terms of this
             Agreement at any time.
4.4          It is recorded that the Obligors have, in terms of clause 26.2
             (Change of Party) of the Senior Facility Agreement, consented to
             the cession and delegation herein recorded.

 

	  5. DELIVERY OF NOTICE
        The Facility Agent shall, within 5 (five) Business Days from the
        Effective Date, despatch written notices to the Obligors and to any
        Lender which is not a party hereto of the sale, cession, assignment and
        transfer; of the Sold Rights and Obligations Pursuant to this Agreement.
 6. REPRESENTATIONS AND WARRANTIES
  6.1         Each party represents and warrants to the other party on the
              Signature Date, the Effective Date and on each day between those
              dates that:
 6.1.1               it is a company duly organised and existing under the laws of the
                    jurisdiction in which it is incorporated;
 6.1.2               it has the power to enter into and to exercise its  rights and perform its
                     obligations under this Agreement;
 6.1.3               all corporate and other actions required to authorise the
                     execution of this Agreement by it and the performance by it
                     of its obligations under this Agreement have been duly
                     taken;
 6.1.4 the obligations expressed to be assumed by it in this agreement legal and
 valid obllgations binding on it in accordance with the respective terms
 thereof;
 6.1.5 the execution of this Agreement and the exercise by it of its rights and
 the performance of its obligations under this Agreement do not and will not
 conflict with;
 6.1 .5.1      any agreement to which it is a party or which is binding on it or any
                           of its assets;
 6.1.5.2        its coastitutive documents and  rules and regulations; or
 6.1.5.3                   any applicable law, regulation or official or judicial order,
 6.2         The Existing Lender hereby represents and warrants to the New
             Lender on the Signature Date, the Effective Date and on each day
             between those.dates that:
6.2.1              to the best of its knowledge and belief, the Finance
                   Documents have not been terminated or cancelled and are of
                   full force and effect;

 

	 6.2.2        it has the right to sell and cede,
assign and transfer the Sold Rights and Obligations
              to the New Lender;
 6.2.3        the Sold Rights and Obligations are capable of being sold and ceded, assigned and
              transferred to the New Lender free of any encumbrances;
 6.2.4        prior to the cession, assignment and transfer of the Sold Rights
              and Obligations recorded in this Agreement, it has not ceded,
              assigned or transferred any of the Sold Rights and Obligations to
              any person;
 6.2.5        no Obligor has been released by it from its obligations under the Finance Documents,
         provided that, save as set out in this clause 6.2, the Existing Lender
         gives no representations or warranties express or implied in connection
         with the sale of the Sold Rights and Obligations pursuant to this
         Agreement.
 7. LIMITATIONS
7.1      Unless expressly agreed to the contrary in this Agreement, the Existing
         Lender makes no representation or warranty and assumes no
         responsibility to the New Lender for:
 7.1.1       the legality, validity, effectiveness, adequacy or enforceability of the Finance
             Documents or any other documents;
 7.1.2       the financial condition or creditworthiness of any Obligor:
 7.1.3       the performance and observance by any Obligor of its obligations under the Finance
             Documents or any other documents;
 7.1.4       the accuracy of any representations, warranties or statements
             (whether written or oral) by any Obligor made in or in connection
             with any of the Finance Documents or any other document.
         and any representations or warranties implied by law are excluded.
7.2      The New Lender confirms to the Existing Lender that it:
7.2.1        has made (and shall continue to make) its own independent
             investigation and assessment of the financial condition and affairs
             of the Obligors in connection with its participation in the Finance
             Documents and has not relied on any information provided to it by
             the Existing

 

	 7.2.2        Lender in connection with any of the
Finance Documents or on any
              representation or warranty made by the Existing Lender other than
              those set out in clause 6; and
 7.2.3        will continue to make its own independent appraisal of the
              creditworthiness of the Obligors whilst any amount is or may be
              outstanding under the Finance Documents.
 7.3     Nothing in any of the Finance Documents or this Agreement obliges the
         Existing Lender to:
 7.3.1        accept a re-transfer from the New Leader of any of the rights ceded, assigned and
              transferred and obligations delegated under this Agreement;
 7.3.2        support any losses directly or indirectly incurred by the New Lender by reason of
the
              non-performance by any Obligor of its obligations under the Finance Documents or
              otherwise; or
 7.3.3       provide the New Lender with any credit or other information
             concerning the affairs, financial condition or business of any
             Obligor or any other third party.
 8. NOTICES AND DOMICILIA
8.1      The parties choose domicilia citandi et executandi for all purposes
         under this Agreement, whether in respect of court process, notices or
         other documents or communications of whatsoever nature, the following,
         addresses:
 8.1.1       the Existing Lender at [
                                                                 ];
 8.1.2       the New Lender at [
                                                   ].
8.2      A party may change that party's address for this purpose to another
         physical address in South Africa, by notice in writing.
8.3      All notices shall be in writing and be deemed (unless the contrary is proved) to have
been
         duly given -
8.3.1        on delivery, if delivered to the addressee's physical address;

 

	 8.3.2        on the Business Day after dispatch,
if sent to the party's then telefax number;
 8.3.3        1 (one) Business Day after delivery, if delivered by a recognised international
courier
              service to the addressee's physical address.
 8.4     Notwithstanding anything to the contrary contained in this Agreement, a
         written notice or communication actually received by one of the parties
         from another including by way of telex or facsimile transmission shall
         be adequate written notice or communication to such party.
9.   GENERAL
 9.1     No variation of this Agreement shall be of any force and effect unless
         reduced to writing and signed by the parties or their authorised
         Facility Agents.
9.2      No failure or delay on the part of a party to exercise any power, right
         or remedy under this Agreement shall operate as a waiver thereof, nor
         shall any single or partial exercise by a party of any power, right or
         remedy preclude other or further exercise thereof or the exercise of
         any power, right or remedy. The remedies provided in this Agreement are
         cumulative and are not exclusive of any remedies provided by law.
9.3      This Agreement, together with all the annexures and schedules thereto,
         constitutes the whole agreement between the parties and there are no
         warranties, promises, representations or inducements, whatsoever, which
         have been made by or on behalf of any party regarding the subject
         matter hereof, unless such warranties, promises, representations are
         contained herein.
9.4      All legal costs, charges and disbursements incurred by any party in
         successfully enforcing or defending any provisions of this Agreement or
         any claim or action thereunder, shall be payable by the unsuccessful
         party on the scale as between attorney and his own client.
9.5      Each party shall bear its own costs and expenses in connection with the
         negotiation and drafting of this Agreement.
10. GOVERNING LAW
     This Agreement and all matters or disputes incidental thereto or arising
     therefrom shall in all respects be governed by and construed in accordance
     with the laws of South Africa, including all matters of construction,
     validity and performance.

 

	 11. COUNTERPARTS
     If any of the parties or the signatories of any of the parties signs this
     Agreement in counterparts, the counterparts, taken together, shall
     constitute one agreement.
 12. SEVERABILITY
     Each phrase, sentence, paragraph and clause in this Agreement is severable,
     the one from the other, notwithstanding the manner in which they may be
     linked together or grouped grammatically and if in terms of any judgment or
     order any phrase, sentence, paragraph or clause is found to be defective or
     unenforceable for any reason the remaining phrases, sentences, paragraphs
     and clauses as the case may be, shall nevertheless be and continue to be of
     full force and effect.
 13. COSTS
13.1     If, in any legal or arbitration proceedings relating to the enforcement
         by either party of its rights in terms of this Agreement, a court or
         arbitrator awards costs to any party, such costs shall be determined
         and recoverable on the scale as between an attorney and own client and
         shall include collection charges, the costs incurred by such party in
         endeavouring to enforce such rights prior to the institution of legal
         or arbitration proceedings and the costs incurred in connection with
         the satisfaction or enforcement of any judgement on arbitration award
         in favour of such party in relation to its rights in terms of or
         arising out of this Agreement.
13.2     Each of the parties shall bear its own costs of and incidental to the
         negotiation, preparation and signature of this Agreement.

 

	SIGNED at _________________________ on this the
______ day of _____________ 2007
                                                                       Name:
                                                                       Capacity:
                                                                       Who warrants his authority
                                                                       hereto

 

	SIGNED at _________________________ on this the
______ day of _____________ 2007
                                                                       Name:
                                                                       Capacity:
                                                                       Who warrants his authority
                                                                       hereto

 

	
ANNEXURE "A"
          ANNEXURE "A" TO CESSION AND DELEGATION AGREEMENT
 Effective Date Facility Outstandings: R [o ]
Sold Rights AND Obligalsons to New Lender                                     :      R[o]
 Commitment of Existing Lender after the Effective Date:   R [o]

 

	 SCHEDULE 11
 FORM OF CONFIDENTIALITY UNDERTAKING
   To:         [Insert Name Of Potential New Lender.]|
   Re:              The Agreement:
                  Borrower: Date:   Amount: Agent:
   Dear Sirs
SENIOR  FACILITY AGREEMENT   ENTERED INTO   BETWEEN   inter  alia NEDBANK CAPITAL (A DIVISION of
NEDBANK  LIMITED ),  HARMONY
   GOLD MINE  LIMITED: f("BORROWER") AND VARIOUS  SUBSIDIARIES OF THE BORROWER: DATED [   ] 2007
  We understand that you ARE CONSIDERING [ACQUIRING]1/[arranging the acquisition
  of]2 an INTEREST in The Facility (the. "Acquisition") In consideration of US
  agreeING TO make available to YOU certain INFORMATION, by YOUR signature of a
  copy of this LETTER you agree as follows:
   1.    in this letter, terms defined in the facility Agreement shall, unless
         the context otherwise requires, have the same meaning and the words and
         expressions set forth below shall bear the following meanings and
         cognate expressions shall bear corresponding meanings;
   1.1          " Confidential Information" means any informations  relating to the Borrowers,
               the Group, the Facility Agreement and/or the Acquisition provided
               to you by us or any of our affitiates or advisers, in whatever
               form, and includes information given orally and any document,
               electronic file or any other way of representing or recording
               information which contains or is derived or copied from such
               information but excludes information that:
   1         Delete if addressee is acting as broker or agent 2
   Delete ifaddressee is acting as principal

 

	  1.1.1.             is or becomes public
knowledge other than as a direct or
                     indirect result of any breach of this letter; or
 1.1.2               is known by you before the date the information is  disclosed to you by us
                    or any of our affiliates or advisers or is lawfully obtained
                    by you thereafter, other than from a source which is
                    connected with the Group and which, in either case, as far
                    as you are aware, has not been obtained in violation of and
                    is not otherwise, subject to, any obligation of
                    confidentiality;
 1.2. "Permitted Purpose" means [subject to the terms of this letter, passing on
              information to a prospective purchaser for the purpose off
              considering and evaluating whether to enter into the Acquisition
              and.
 1.3          "Purchaser Group" means you, and each of your affiliates,
 2. confidentiality Undertaking You undertake:
2.1          undertake to keep the Confidential Information confidential and not
             to disclose it to anyone except as provided for by paragraph 2.2
             and to ensure that the Confidential Information is protected with
             security measures and a degree of care that would apply to your own
             confidential information,
2.2      Undertake to use the Confidential Information only for the Permitted Purpose,
2.3          undertake to use all reasonable endeavours to ensure that any
             person to whom you pass any Confidential information (unless
             disclosed under paragraph [2.2 or]4 2.3) acknowledges and complies
             'with the provisions of this letter as if that person were .also a
             party to it, and
2.4          confirm that all of your employees, officers and directors are
             contractually bound to maintain confidentiality and shall procure
             that.should any employee. officer or director not be so bound that
             such employee enters into a confidentiality undertaking in favour
             of the Borrower on substantially the same terms and conditions set
             out in this letter;
       3 Delete if addressee is acting as principal. 4 Delete as
       applicable.

 

	2.5         undertake to procure  that  each
professional advisor, shareholder and/or
             consultant enters into a confidentiality undertaking in favour of
             the Borrower on substantially the same terms and conditions as set
             out in this letter.

 

	 3.     Permitted Disclosure
        We agree that you may disclose Confidential Information:
 3.1          to members of the Purchaser Group and their officers, directors,
              employees and professional advisers to the extent necessary for
              the Permitted Purpose and to any auditors of members of the
              Purchaser Group, to the extent that they have undertaken to keep
              the Information Confidential;
 3.2          [subject to the requirements of the Facility Agreement, in accordance with the
              Permitted Purpose so long as any prospective purchaser has delivered a letter to you
              in equivalent form to this letter.]
 3.3          subject to the requirements of the Facility Agreement, to any
              person to (or through) whom you assign or transfer (or may
              potentially assign or transfer) all or any of the rights, benefits
              and obligations which you may acquire under the Facility Agreement
              or with (or through) whom you enter into (or may potentially enter
              into) any sub-participation in relation to, or any other
              transaction under which payments are to be made by reference to,
              the Facility Agreement or the Borrowers or any member of the Group
              so long as that person has delivered a letter to you in equivalent
              from to this letter; and
 3.4          where requested or required by any court of competent jurisdiction
              or any competent judicial, governmental, supervisory or regulatory
              body;
 3.5          where required by the rules of any stock exchange on which the shares or other
              securities of any member of the Purchaser Group are listed or;
 3.6          where required by the laws or regulations of any country with jurisdiction over the
              affairs of any member of the Purchaser Group.
 4.           Notification of Required or Unauthorised Disclosure
       You agree (to the extent permitted by law) to inform us of the full
       circumstances of any disclosure under paragraph 2.4 or upon becoming
       aware that Confidential Information has been disclosed in breach of this
       letter.
 5.           Return of Copies
       If we so request in writing, you shall return all Confidential
       Informations supplied to you by us and destroy or permanently erase all
       copies of Confidential Information made by you and use all reasonable
       endeavours to ensure that anyone to whom you have supplied any
       Confidential Information destroys or permanently erases such Confidential
       Information and any copies made by them, in each case save to the extent

 

	        that you or the recipients are required to
retain any such Confidential
        Information by any applicable law, rule or regulation or by any
        competent judicial, governmental, supervisory or regulatory body or in
        accordance with internal policy, or where the Confidential Information
        has been disclosed under paragraph 2.4.
 6.           Continuing Obligations
       The obligations in this letter are continuing and, in particular, shall
       survive the termination of any discussions or negotiations between you
       and us. Notwithstanding the previous sentence, the obligations in this
       letter shall cease:
 6.1          if you become a party to or otherwise acquire (by assignment or sub-participation)
              an interest, direct or indirect, in the Facility Agreement
 6.2          24 (twenty-four) months from the date of this letter.
 7.           No Representation, Consequences of Breach, etc
        You acknowledge and agree that neither we [nor our principal]5 nor any
        member of the Group nor any of our or their respective officers,
        employees or advisers (each a "Relevent Person"):
 7.1          make any representation or warranty, express or implied, as to, or
              assume any responsibility for the accuracy, reliability or
              completeness of any of the Confidential Information or any other
              information supplied by us or the assumptions on which it is based
              or
 7.2          shall be under any obligation to update or correct any inaccuracy
              in the Confidential Information or any other information supplied
              by us or be otherwise liable to you or any other person in respect
              to the Confidential Information or any such information; and
 7.3          we [or our principal]6 or members of the Group may be irreparably harmed by the
              breach of the terms hereof and damages may not be an adequate remedy; each Relevant
              Person may be granted an injunction or specific performance for any threatened or
              actual breach of the provisions of this letter by you.
 5       Delete if letter is sent out by the Seller rather than the Seller's broker or agent.
 6       Delete if letter is sent out by the Seller rather than the Seller's broker or agent.

 

	8. Sole Agreement, No Implied Terms, No Variation,
Extensions and Waivers
 8.1          This letter constitutes the sole record of the agreement between
              is and you (each, a "Party", and collectively the "Parties") in
              regard to the subject matter hereof.
 8.2          No Party shall be bound by any express or implied term,
              representation, warranty, promise or the like, not recorded in
              this letter.
 8.3          No addition to, variation or consensual cancellation of this
              letter and no extension of time, waiver or relaxation or
              suspension of any of the provisions or terms hereof shall be of
              any force or effect unless in writing and signed by or on behalf
              of all the Parties.
 8.4          No latitude, extension of time or other indulgence which may be
              given or allowed by any Party to any other Party in respect of the
              performance of any obligation hereunder or enforcement of any
              right arising from this lettter and no single or partial exercise
              of any right by any Party shall under any circumstances be
              construed to be an implied consent by such Party or operate as a
              waiver or a novation of, or otherwise affect any of that Party's
              rights in terms of or arising from this letter or estop such Party
              from enforcing, at any time and without notice, strict and
              punctual compliance with each and every provision or term hereof.
9.     Inside Information
You acknowledge that some or all of the Confidential Information is or may be
price-sensitive information and that the use of such information may be
regulated or prohibited by applicable legislation relating to insider dealing
and you undertake not to use any Confidential Information for any unlawful
purpose.
10.       Nature of Undertakings
The undertakings given by you under this letter are givern to us and (without it
implying any fiduciary obligations on our part) are also given by the benefit of
[our principal]7 the Borrowers and each other member of the Group.
11.      Governing Law and Jurisdiction
 11.1         This letter (including the agreement constituted by your acknowledgment of its
terms) shall be governed by and construed in accordance with the laws of South
7      Delete if letter is sent out by the Seller rather than the Seller's broker or agent.

 

	 1l.2         Africa and the parties submit to the
non-exclusive jurisdiction of
              the Witwatersrand Local Division of the High Court of South Africa
              (or any successor to that Division) in regard to all matters
              arising from this letter.
 11.3         Please acknowledge your agreement to the above by signing and returning the enclosed
              copy.

 

	Yours faithfully
For and on behalf of
[Seller/Seller's agent/broker]
To:              [Seller]
                 [Seller's agent/broker]
                  The Borrowers and each other member of the Group
We acknowledge and agree to the above.
For and on behalf of
[Potential Purchaser/Purchaser's agent/broker]

 

	
SCHEDULE 12
                                   PRO FORMA MANAGEMENT ACCOUNT
Total SA summary - monthly
South Africa
        PRODUCTION                                                        Jul-07
Aug-07
        Quality ounces
      1 - Tons Milled                                                    488,215
482,764
      2 - Recovery Grade                                                    5.23
5.79
      3 - Kilograms Produced                                               2,551
2,795
      4 - Working Cost per Kg                                            121,199
107,227
      5 - Working Cost per Ton                                               633
621
        Growth projects
      6 - Tons Milled                                                    130,987
142,097
      7 - Recovery Grade                                                    5.33
5.39
      8 - Kilograms Produced                                                 698
766
      9 - Working: Cost per Kg                                           146,833
..128,836
     10 - Working Cost per Ton                                               783
695
        Leveraged ounces
     11 - Tons  Milled                                                   322,483
401,826
     12 - Recovery Grade                                                    3.78
4.10
     13 - Kilograms Produced                                               1,219
1,648
     14 - Working Cost per Kg                                            194,534
161,583
     I5 - Working Cost per Ton                                               735
663
        OpenCast
     16 -Tons Milled                                                     120,003
115,328
     17 - Recovery Grade                                                    1.66
2.12
     18 - Kilograms Produced                                              199.67
244.25
     I9 - Working Cost per Kg                                             95,847
126,072
     20 - Working Cost per Ton                                               159
267
        Surface St. Clean Up
     21 -Tons Milled                                                     762,815
733,036
     22 - Recovery Grade                                                    0.30
0.30
     23 - Kilograms Produced                                              226.29
217.74
     24 - Working Cost per Kg                                             85,775
89,682
     25 - Working Cost per Ton
25                   27
   26    Total Kilograms Produced                                       4,894.08
5,671.48
  27    R/Kg - Revenue                                                   149,071
154,803
  28    R/Kg - Working Costs                                             140,445
126,082
  29    R/Ton Working Costs                                                  377
381

 

	FINANCIAL
       Quality ounces
  30   - Revenue                                                               380,556
433,337
  31   - Production Costs                                                      309,215
299,705
  32
       - Total U/g Profit/(Loss)                                                71,341
133,632
       Growth projects
  33   - Revenue                                                               104,234
118,750
34 35  - Production Costs                                                      102,510
98,707
       - Total U/g Profit/(Loss)                                                 1,724
20,042
       Leveraged ounces
  36   - Revenue                                                               181,624
254,620
  37   - Production Costs                                                      237,074
266,337
  38
       - Total U/g Profit/(Loss)                                              (55,450)
(11,717)
       Opencast
  39   - Revenue                                                                29,498
37,588
  40   - Production Costs                                                       19,138
30,793
  41
       - Total U/g Profit/(Loss)                                                10,360
..6,795
       Surface
  42   - Revenue                                                                33,654
33,668
  43   - Production Costs                                                       19,410
19,527
  44
  45
       - Total Surface Profit/(Loss)                                            14,244
14,141
       Total Working Profit/(Loss)                                              42,219
162,893
       Capital expenditure
       Quality ounces
  46   - On-going development                                                   42,863
46,016
  47   - Project capital                                                        38,955
30,335
       Growth projects
  48   - On-going development                                                   10,914
12,392
  49   - Project capital                                                        70,456
64,232
       Leveraged ounces
  50   - On-going development                                                   25,243
28,179
  51   - Project capital                                                         8,665
8,385
       Opencast
  52   - Project capital                                                           439
1,903
  53   Total - OGD                                                              79,021
86,586

  54   Total - Project capital                                                 118,515
104,855

 

	
SCHEDULE 13
                                       LAST TAX RETURN YEAR
                              Company                                 Latest submitted returns
1.   Harmony Gold Mining Company Limited                                        2001
2    Armgold                                                                    2005
3    Evander                                                                    2005
4    ARMgold /Harmony Joint Investment Company                                  2005
     ARMgold / Harmony Freegold Joint Venture
5    Company                                                                    2005
6    Avgold Limited                                                             2002
7    Randfontein Estated Limited                                                2001EX-4.27

Master Lease Facility Agreement

Morobe Consolidated Goldfields Limited

Westpac Bank PNG Limited

Hidden Valley Gold Project

Allens Arthur Robinson

Deutsche Bank Place

Corner Hunter and Phillip Streets

Sydney NSW 2000

Tel 61 2 9230 4000

Fax 61 2 9230 5333

www.aar.com.au

©
Copyright Allens Arthur Robinson 2007

1

 

Date 14 June 2007

Parties

	 	1.	 	Morobe Consolidated Goldfields Limited incorporated in Papua New Guinea
of Level 4, Mogoru Moto Building, Champion Parade, (PO Box 850) Port Moresby,
Papua New Guinea (the Lessee); and
	 
	 	2.	 	Westpac Bank PNG Limited of Level 9, Deloitte Tower, Douglas Street,
Port Moresby NCD, Papua New Guinea as lessor under the Master Lease
Agreement (Westpac).

Recitals

	 	A 	 	As arranged by Westpac Institutional Bank, a division of Westpac
Banking Corporation (the Arranger) Westpac Bank PNG Limited
(Westpac) is
pleased to offer Morobe Consolidated Goldfields Limited (the
Lessee) a master
lease facility on the following terms.

Capitalised terms used in this Agreement are defined in the text or in Schedule 1 unless the
context requires otherwise. They will be interpreted on the basis set out in Schedule 1.

MASTER LEASE DETAILS

	 	 	 
	Lessee:

	 	Morobe Consolidated Goldfields Limited.
	 
	 	 
	Facility Limit:

	 	US$31,000,000 as reduced or cancelled under clauses 2.3 and 4.3.
	 
	 	 
	Term:

	 	This master lease facility will expire on 30 June 2013 or such other date
agreed between the parties and is terminable on notice by Westpac
following an Event of Default. That does not affect any Lease previously
entered into under this master lease facility.
	 
	 	 
	 

	 	Individual Leases shall have a term not exceeding five (5) years and 91
days from the Delivery Date.

2

 

Morobe Consolidated Goldfields Limited — Master Lease Agreement

	1.	 	THE FACILITY
	 
	1.1	 	Facility

Provided the facility provided under this Agreement has not been terminated and has not expired,
the Lessee can require Westpac to let equipment for hire to the Lessee on the terms of this
facility on any Business Day. The Lease will be substantially in the form of Schedule 5. The rate
and period of each Lease will be as set out in the Details Schedule of the relevant Lease.

1.2 Conditions Precedent

1.2.1 The obligations of Westpac under this Agreement are subject to the fulfilment of the
following conditions precedent, namely

1.2.1.1 the Lessee must:

	w	 	sign and return a copy of this Agreement to Westpac;
	 
	w	 	provide to Westpac a duly executed copy of the Intercreditor Deed and certified copies of
each Project Document which has been entered into on or before the date of this Agreement;
	 
	w	 	deliver a verification certificate to Westpac dated no later than the date of this Agreement
substantially in the form of Schedule 4A with the required attachments;
	 
	w	 	procure that HGMC and HGM each delivers a verification certificate to Westpac dated no later
than the date of this Agreement substantially in the form of schedule 4B with the required
attachments;
	 
	w	 	provide evidence to Westpac that all Authorisations and consents necessary for each party to
enter into and perform its obligations under the Bank Documents have been obtained and are in
full force and effect;
	 
	w	 	provide evidence to Westpac that all shareholder loans to the Lessee outstanding prior to the
date of this Agreement have been converted to equity;
	 
	w	 	provide evidence (including providing certificates of currency for each insurance policy) to
Westpac that the Equipment has been or will be insured in accordance with clause 6.7 of
schedule 3 (Schedule of Lease Terms);
	 
	w	 	provide to Westpac the Deed of Assignment, duly executed by all parties to it (except
Westpac);
	 
	w	 	procure that Komatsu duly executes the Komatsu Guarantee and deliver a certified copy to
Westpac;

each to the satisfaction of, or (where relevant) in form and substance satisfactory to, Westpac.

1.2.1.2 Westpac must:

	w	 	be satisfied as to the financial capability of Komatsu to support the obligations that arise
as guarantor of the Contractor under the Sell Back Option and the Maintenance Contract and its
own obligations under the Komatsu Guarantee;
	 
	w	 	be satisfied as to the financial capability of the Contractor to support its own
obligations under the Sell Back Option and the Maintenance Contract;
	 
	w	 	be satisfied with Project economics as evidenced by the Financial Model and mine plan as at
the date of execution of this Agreement;
	 
	w	 	be satisfied that the Project complies with the World Bank Guidelines;
	 
	w	 	procure from Aliens Arthur Robinson in Port Moresby and Sydney opinions as to the Bank
Documents and their enforceability under New South Wales, Australian and Papua New Guinea law,
which opinion shall be in form and substance satisfactory to Westpac;

3

 

Morobe Consolidated Goldfields Limited — Master Lease Agreement

	w	 	receive from the Lessee an opinion procured by the Lessee from Legal counsel approved by
Westpac as to:

	 	(a)	 	Singapore law in relation to the Komatsu Guarantee;
	 
	 	(b)	 	South African law in relation to HGMC’s entry into the Intercreditor Deed; and
	 
	 	(c)	 	Isle of Man law in relation to the Project Lender’s entry into the Intercreditor Deed,

	 	 	which opinions shall be in form and substance satisfactory to Westpac; and
	 
	w	 	receive from the Lessee such other information as may reasonably be requested by Westpac and
Westpac must be satisfied with that information.

1.2.2 Each Lease is subject to and shall not commence until the fulfilment (or waiver by Westpac in
its absolute discretion) of the following conditions precedent, namely, the Lessee must:

	w	 	provide Westpac with a completed and duly executed Lease Request in accordance with clause
2.2;
	 
	w	 	pay the Order Instalment in respect of that item of Equipment to Westpac on or before the
Order Date for that item;
	 
	w	 	provide Westpac with completed and executed equipment documentation in respect of the
relevant item of Equipment;
	 
	w	 	either:

	 	(i)	 	provide to Westpac cash security to the satisfaction of Westpac equivalent to 12
months Rent Instalments (at a rate to be advised by Westpac calculated assuming that
Leases are entered into for the full Facility Limit with a Base Rate as for the Term
Instalments and assuming the Delivery Date is the date on which the relevant Lease
is prepared); or
	 
	 	(ii)	 	provide Westpac with a certificate signed by 2 directors of the Lessee indicating
that the Project is fully funded to date and there are available sufficient funds
to satisfy the financial requirements of the Project to Project Completion;

	w	 	in respect of the first Lease only following the entry into a new Maintenance Contract with a
new maintenance contractor, provide a certified copy of that Maintenance Contract to Westpac
and satisfy Westpac as to the financial capacity of the new maintenance contractor to perform
its obligations under the new Maintenance Contract;
	 
	w	 	provide to Westpac certified copies of each Project Document which has not already been
provided under clause 1.2.1.1 (other than the Project Loan Agreement and Project Charge);
	 
	w	 	provide evidence to Westpac of the payment of all fees and expenses which are due; and
	 
	w	 	provide Westpac with the financial statements and financial information for the Lessee and
HGMC and such other information in relation to the Lessee, or any other party to the Bank
Documents or the Project Documents as may reasonably be requested by Westpac and Westpac must
be satisfied with that information;

each to the satisfaction of, or (where relevant) in form and substance satisfactory to, Westpac and
at the date of the Drawdown Notice:

	w	 	no Event of Default is subsisting or will result from the drawdown, or event which with
notice or time would become an Event of Default;
	 
	w	 	no event or change has occurred to the Lessee or any other party to the Bank Documents or the
Project Documents that has or would be likely to have a Material Adverse Effect;
	 
	w	 	drawdown will not cause the Facility Limit to be exceeded; and
	 
	w	 	each representation and warranty in the Bank Documents is true and correct in all material
respects and not misleading nor deceptive in any material respect as of the date of the

4

 

Morobe Consolidated Goldfields Limited — Master Lease Agreement

drawdown and the date of purchase.

	1.2.3 The parties shall use their respective reasonable endeavours to satisfy the conditions
precedent in clause 1.2.1 as soon as practicable after the execution of this Agreement. Each party
shall notify the other party as soon as practicable after each condition precedent has been
satisfied or fulfilled by such party and Westpac shall give notice to the Lessee when all of the
conditions precedent in clause 1.1.1 have been satisfied or waived. The conditions are for the
benefit of Westpac and may be waived in whole or in part by Westpac by notice to the Lessee in
writing. The Lessee shall bear the reasonable costs of procuring the opinions described in clause
1.2.1.2.
	 
	1.2.4 If the conditions precedent in clause 1.2.1 are not each satisfied or waived within 30 days
from the date of execution of this Agreement (or such later date as the parties may agree in
writing) then either party shall have the right to immediately terminate this Agreement by giving
written notice to the other party to that effect. If the Agreement is terminated in accordance with
this clause, no party will have any further obligation to the other parties and the parties will
have no claim against each other, except, in the case of Westpac any claim against the Lessee in
respect of outstanding fees, costs and expenses under clause 4 of this Agreement or indemnities
under clause 5.4 of the Lease Terms.

	2.	 	LEASING PROCEDURES

	2.1	 	Purchase of Equipment

	 	*	 	(Order) The Equipment shall be ordered by the Lessee in accordance with the
Supply Contract.
	 
	 	*	 	(purchase) The Equipment shall be purchased by Westpac in accordance with the
Supply Contract.
	 
	 	*	 	(title) Property in Equipment purchased under this Agreement shall pass directly
from the Contractor to Westpac.
	 
	 	*	 	(payment of purchase price) Subject to the fulfilment of the conditions
precedent in clause 1.2.2:

	 	(a)	 	Westpac must pay the Order Instalment to the Contractor on the Order Date;
	 
	 	(b)	 	and the receipt by Westpac on or before the Shipping Date of the
Drawdown Notice for the Shipping Instalment, the relevant Contractor’s invoice and
Bill of Lading in respect of the relevant item of Equipment and the Escrow Portion
and 15% of the Estimated PNGP from the Lessee, Westpac must pay the Shipping
Instalment to the Contractor on the Shipping Date; and
	 
	 	(c)	 	and the receipt by Westpac of the Drawdown Notice for the PNGP, the
relevant Contractor’s invoice from the Lessee and a copy of the relevant
Handover Certificate and the PNGP Adjustment (if owing to Westpac in accordance
with clause 5.10(a)), Westpac must pay the PNGP to the Contractor.

	 	*	 	(escrow portion) Westpac will hold the Escrow Portion in escrow and pay the
Escrow Portion to the Contractor in accordance with the provisions of the Supply
Contract.
	 
	 	*	 	(Estimated PNGP) On or before the Shipping Date, the Lessee shall provide
Westpac with all information with regard to the PNGP received from the Contractor and
any other relevant information in that regard and Westpac and the Lessee shall agree the
Estimated PNGP on the basis of such information.

5

 

Morobe Consolidated Goldfields Limited — Master Lease Agreement

	2.2	 	Lease Request

	 	•	 	When the Lessee wishes to lease an item of Equipment the Lessee shall give to Westpac a
Lease Request on or prior to the Order Date. The Lease Request shall request that
Westpac prepares a Lease for the relevant item of Equipment and the Lessee shall
provide Westpac with the information described in clause 1.2.2.
	 
	 	•	 	Westpac shall prepare the Lease if the conditions precedent in clause 1.2.2 have been
satisfied and deliver it to the Lessee.
	 
	 	•	 	Following receipt of the Lease from Westpac, the Lessee shall promptly sign and return
it to Westpac. If the person who signs the Lease is not a person referred to in the
verification certificate, the Lessee must supply evidence satisfactory to Westpac of
the authority of that person.
	 
	 	•	 	When the Lessee wishes to make a drawing in respect of an item of Equipment, the
Lessee shall give to Westpac a Drawdown Notice. That Drawdown Notice must be received
by Westpac by 11.00am (Port Moresby time) 3 Business Days (or such shorter period as
Westpac may agree) before the proposed Drawdown Date which must be a Business Day
during the Availability Period.
	 
	 	•	 	On the proposed Drawdown Date but only if all requirements of this Agreement have been
satisfied including the conditions precedent in clause 1.2.2, Westpac will make
available to the Lessee the amount requested in the Drawdown Notice up to a maximum
(in aggregate with any other Drawdown Notice in respect of the same item of Equipment)
of the Funded Amount
	 
	 	•	 	The Lessee shall ensure that there is delivered to Westpac no later than the Drawdown
Date if required, a tax invoice for the Equipment which satisfies any applicable
requirements (if any) of Westpac.

	2.3	 	Form of Lease

	 	*	 	Each Lease will be in substantially the form of Schedule 5.
	 
	 	*	 	The Base Rate for the Rent Instalments will be as set out in Schedule 5 (item 12).
	 
	 	*	 	The Term Instalments will be specified in the Details Schedule, and will be
determined by Westpac having regard to its normal procedures, but so as to achieve a
limit in the total underlying principal amount of all Leases so that the aggregate does
not exceed the following amounts on the following dates:

	 	 	 
	Reduction Date	 	Limit
	Initial
	 	$31,000,000
	June 30, 2009
	 	$26,000,000
	March 31, 2010
	 	$21,000,000
	December 31, 2010
	 	$16,000,000
	September 30, 2011
	 	$11,000,000
	June 30, 2012
	 	$6,000,000
	March 31, 2013
	 	$1,000,000

On the dates specified above, the Facility Limit will be reduced and cancelled as set
out in the table above.

6

 

Morobe Consolidated Goldfields Limited — Master Lease Agreement

	2.4	 	General

Notwithstanding any other provisions of this Agreement:

	 	•	 	The Lessee is responsible for ensuring that Westpac obtains good and unencumbered
title to all Equipment purchased pursuant to this clause.
	 
	 	•	 	The Lessee cannot commit Westpac to any contract with an obligation to another party.
Its authority is only to acquire a good and unencumbered title in Equipment for
Westpac.
	 
	 	•	 	The Lessee will indemnify Westpac on demand against any liability, cost or expense
incurred in connection with any defect in Westpac’s title to any Equipment the subject
of a Lease.

	2.5	 	Authority

The Lessee is bound by:

	 	•	 	any document or communication bearing a signature that appears to Westpac to be one
of the specimen signatures of the Lessee; and
	 
	 	•	 	anything done by Westpac in accordance with this Agreement.

The Lessee irrevocably authorises Westpac (if the Lessee fails to do so or does so
incorrectly) to prepare, complete, amend, execute and deliver on behalf of the Lessee each
Lease.

	2.6	 	Exclusivity

The parties agree to deal on an exclusive basis with respect to the provision of finance
with regard to the Equipment described in the Supply Contract.

	3.	 	REPRESENTATIONS AND UNDERTAKINGS

The Lessee makes the representations and warranties and gives the undertakings in Schedule 2.

	4.	 	FEES AND EXPENSES
	 
	4.1	 	Establishment Fee

On the date of this Agreement the Lessee will pay the Arranger an establishment fee of
US$450,000 as set out in the mandate letter dated 21 November 2005 from the Arranger to
Harmony Cold (Australia) Pty Limited. Westpac acknowledges that $300,000 of the
establishment fee has already been paid prior to the date of this Agreement.

	4.2	 	Line Fee

The Lessee will pay Westpac a line fee which will accrue from day to day from the date of
this Agreement on the amount of the Facility Limit, calculated at a rate of 1.5% per annum.
The Lessee shall pay that fee in arrears on the last Business Day on each calendar quarter
and on the day the Facility Limit is cancelled.

	4.3	 	Cancellation of Facility Limit

The Lessee may at any time on not less than 5 Business Bays notice cancel all or part of
the unutilised Facility Limit. Westpac may cancel all or part of the Facility Limit at any
time an Event of Default under any Lease is subsisting.

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Morobe Consolidated Goldfields Limited — Master Lease Agreement

	4.4	 	Expenses

The Lessee will pay Westpac and the Arranger on demand all costs and expenses (including
legal expenses) incurred by Westpac and the Arranger in connection with the preparation,
negotiation and execution of the Master Lease Agreement and any Lease, and of any waiver or
consent, including the valuation of Equipment and considering conditions precedent.

	5.	 	AGENCY

	 	(a)	 	Pursuant to the execution of the Deed of Assignment, the Lessee has
assigned the Assigned Property to Westpac.
	 
	 	(b)	 	Westpac appoints the Lessee as its sole agent, until termination under
paragraph (f), to exercise on behalf of Westpac all of the rights in respect of the
Assigned Property (unless otherwise specified).
	 
	 	(c)	 	Until the agency in paragraph (b) is terminated in accordance with paragraph
(e), the Lessee is entitled to retain when made any recovery or benefit resulting from
the enforcement of any such rights and will pay, and indemnifies, Westpac against, all
costs, expenses, liabilities, losses and charges incurred in connection with the
enforcement or purported enforcement of any such rights.
	 
	 	(d)	 	The Lessee agrees to promptly and effectively enforce all claims and rights
referred to in paragraph (a) at all times during the term of its appointment under
paragraph (b) in relation to an item of Equipment where the non-enforcement or delayed
enforcement of a claim or right might result in a material diminution in the value,
condition or utility of that item of Equipment.
	 
	 	(e)	 	If the Lease is terminated under clause 9.1, after an Event of Default occurs
or at any other time, Westpac may terminate or limit the agency created by this clause
by written notice to the Lessee specifying the date of such termination or limitation
(and providing details of any limitation in the Lessee’s exercise of its agency powers
under paragraph (b)).
	 
	 	(f)	 	The Lessee agrees to promptly and duly execute and deliver any and all such
further documents or agreements and take such further action as may be necessary or
desirable in order to give full effect to the assignment under this clause.

	6.	 	SCHEDULE OF LEASE TERMS

	*	 	The Lease Terms apply to each Lease as if a reference to this Lease in that schedule is a
reference to the particular Lease.
	 
	*	 	Clauses 5.1 to 5.6 (inclusive), 5.9, 8.1 and 10 of the Lease Terms apply to this Agreement
as if a reference to this Lease were a reference to this Agreement.

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Morobe Consolidated Goldfields Limited — Master Lease Agreement

Executed as an agreement:

Signed for WESTPAC BANK PNG LIMITED by its attorney under the authority of a power of attorney.

	 	 	 
	/s/ Ross Hammona
 

(sign here)

I have no notice of the revocation of the power of attorney.

Name: Ross Hammona

Attorney

	 	 

Signed by:

Morobe Consolidated Goldfields Limited

	 	 	 	 	 	 	 	 	 	 	 
	/s/ Graham Paul Briggs	 	 	 	/s/ William Mervyn Wasley	 	 
	 	 	 	 	 	 	 
	(sign here)	 	 	 	(sign here)	 	 
	Title: Director
	 	 	 	 	 	Title: Director	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Name (please print):

	 	Graham Paul Briggs
	 	 	 	Name (please print):
	 	William Mervyn Wasley	 	 
	 

	 	Director
	 	 	 	 	 	Director	 	 

Date of execution:

We confirm:

The Company is solvent. It is not prevented by any provision of the Companies Act 1997
(PNG) from entering into and performing the Document. We hold the offices stated under our
signatures. We are authorised to sign the accepted agreement(s).

9

 

Morobe Consolidated Goldfields Limited — Master Lease Agreement

SCHEDULE 1

SCHEDULE OF DEFINITIONS AND INTERPRETATION

Definitions

Agreement includes any document or instrument of any kind, any deed, agreement or
arrangement.

Assigned Property has the meaning given in the Deed of Assignment.

Authorisation includes:

	(a)	 	any consent, registration, filing, lodgement, agreement, certificate,
notarisation, permission, licence, approval, authority or exemption, from by or with any
Governmental Agency; and
	 
	(b)	 	where a Governmental Agency can prohibit or restrict something if it acts within a
specified period after formal notification of it (for example lodgement, registration or
filing), the expiry of that period without that action.

Authorised Officer means

	(a)	 	in respect of the Lessee any director, secretary or attorney, or any person from time to time
nominated as an Authorised Officer by its by a notice to Westpac accompanied by certified
copies of signatures of all new persons so appointed; and
	 
	(b)	 	in respect of Westpac, any person whose title or acting title includes the word Chief,
Counsel, Executive Head, Manager, Director or President or cognate expressions, or any
secretary or director.

Availability Period means the period from the date of satisfaction of the conditions precedent in
clause 1.2.1 until 30 June 2008 (or such longer period as Westpac and the Lessee agree).

Bank Document means:

	(a)	 	the Master Lease Agreement;
	 
	(b)	 	any Lease entered into under the Master Lease Agreement;
	 
	(c)	 	the Komatsu Guarantee;
	 
	(d)	 	the PRI Policy;
	 
	(e)	 	the Intercreditor Deed;
	 
	(f)	 	the Sell Back Option;
	 
	(g)	 	the Deed of Assignment;
	 
	(h)	 	the Supply Contract;
	 
	(i)	 	any Maintenance Contract; or
	 
	(j)	 	any other document agreed to by Westpac and the Lessee from time to time.

It includes any amendment or replacement of any of them or document issued under any of them.

Base Rate means the rate specified in the relevant Details Schedule.

Business Day means any weekday on which Westpac is open at the address referred to on the first
page of the Master Lease Agreement and banks are open in New York and Sydney.

Casualty and Termination Value means, in relation to any Equipment at any time, the amount
calculated by Westpac using the method specified in item 16 of the Details Schedule.

CIF Lae Portion means the purchase price for any Equipment paid to the Contractor under the Supply
Contract covering ex-factory costs, insurance and freight to Lae.

Compensation Agreement means the compensation agreement dated 5 August 2005 between the Lessee and
the landowner of the Mining Easement.

Contractor means UMW Niugini Limited.

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Morobe Consolidated Goldfields Limited — Master Lease Agreement

Deed of Assignment means a Deed in the form of Schedule 7

Details Schedule means the schedule so named set out in each Lease.

Delivery Date means, in respect of an item of Equipment, the date on which a Handover Certificate
is signed by the Lessee and the Contractor in accordance with the terms of the Supply Contract.

Drawdown Date means, in relation to any Equipment, the date on which Westpac is to provide any
part of the Funded Amount under this Agreement.

Drawdown Notice means a notice in the form of Schedule 6.

Environmental Law means a law which relates to an aspect of the environment, planning, health or
safety.

Equipment means the Equipment described in the Supply Agreement or any Drawdown Notice or Details
Schedule (as the context requires) and includes all log books and other documentation and licences
and all parts and components relating to the Equipment.

Escrow Portion means 5% of the CIF Lae Portion.

Estimated PNGP means PNGP estimated at the Shipping Date, based on information provided by the
Contractor and agreed between the Lessee and Westpac.

Event of Default means anything listed in Clause 3 of Schedule 2.

Expiry Date means 30 June 2013 (or such other date agreed between the Lessee and Westpac).

Finance Debt includes:

	(a)	 	any indebtedness, present or future, actual or contingent in relation to money borrowed or
raised or any other financing;
	 
	(b)	 	any such indebtedness under or in respect of any of the following: a Guarantee, a
discounting arrangement, a finance lease or similar agreement, hire purchase, deferred
purchase price (for more than 90 days), or an obligation to deliver property or provide
services paid for in advance by a financier; and
	 
	(c)	 	exposure under any interest, commodity, securities, index, or currency exchange, option,
hedge, swap or other similar arrangement.

Financial Model means the cash flow model used in the Lessee’s submission of its financing plan to
the Bank of PNG and provided to Westpac by the Lessee on 29 March 2007 under clause 1.2.1.2 of
this Agreement (file name MCG Cash Flow Model IOM BDW FINAL BPNG.xls) as updated or varied from
time to time by agreement between Westpac and the Lessee.

Funded Amount means, in respect of any item of Equipment, the Shipping Instalment plus 85% of the
PNGP as set out in the relevant Details Schedule.

Governmental Agency includes any government, or any government, semi-government or judicial agency
or authority.

GST means goods and services tax, value added tax or any other indirect tax in respect of the
supply, acquisition or consumption of Equipment/services.

Guarantee means any guarantee, indemnity, letter of comfort or other assurance against loss,
including any obligation to be responsible for the solvency or financial condition of another
party, or for payment of a debt or obligation of another party, either directly or indirectly (for
example, by acquiring the debt or obligation).

Handover Certificate has the meaning given in the Supply Contract.

HGM means HGM (Isle of Man) (Pty) Limited (company number 116712C) of 15 — 19 Athol Street,
Douglas, Isle of Man, IM1 1LB.

HCMC means Harmony Gold Mining Company Limited (company number 1950/038232/06) of Harmony Main
Offices, Remainder of Portion 3 of the Farm Harmony Farm 222, Private road, Glen Harmony, Virginia
9430, Free State, Republic of South Africa.

Intercreditor Deed means the intercreditor deed between Westpac, the Arranger, HGM (Isle of Man)
(Proprietary) Limited, HGMC and the Lessee dated on or about the date of the Master Lease
Agreement.

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Morobe Consolidated Goldfields Limited — Master Lease Agreement

Interest Rate means the Base Rate plus the Margin.

Komatsu means Komatsu Asia and Pacific Private Limited (company number 197100057R) a company
incorporated in Singapore of 1 Gul Avenue, Off Benoi Road, Jurong Point, Singapore 629648.

Komatsu Guarantee means the Guarantee in the form of annexure A to Schedule J of Part 3 of the
Supply Contract.

Lease means a lease entered into under this Agreement.

Lease Request
means a notice in the form of Schedule 8.

Lease Terms means the Schedule of Lease Terms set out in Schedule 3.

Maintenance Contract means the maintenance of mining equipment contract dated 22 November 2006 for
the maintenance of the Equipment between the Lessee and the Contractor.

Margin means:

	(a)	 	on each day until Project Completion, 1.25% per annum; and
	 
	(b)	 	on that day and each day subsequently, 0.80% per annum.

Master Lease Agreement means the master lease facility agreement between Westpac and the Lessee to
which this schedule is attached (and includes all schedules).

Material Adverse Effect means a material adverse effect on the financial or business condition of
the Lessee, its ability to meet its payment obligations under the Bank Documents, any Equipment,
or the security or rights of Westpac or the title of Westpac to any Equipment.

Memorandum of Agreement means the Memorandum of Agreement relating to the Hidden Valley Gold
Project dated 5 August 2005 between the Lessee, the State of Papua New Guinea, Morobe Provincial
Government, Wau Rural Local Level Government and Wau Bulolo Urban Local Government.

Mining Easement means the mining easement (ME 82) granted or to be granted by the Minister
responsible for mining in Papua New Guinea on the recommendation of the Mining Advisory Council of
Papua New Guinea.

Mining Easement Application means the application dated 4 December 2006 to the Department of
Mining in Papua New Guinea to register the Mining Easement and related documentation.

Mining Lease means the Mining Lease (M151) dated 4 March 2005.

Order Date means the date upon which the Lessee places an order for an item of Equipment with the
Contractor under the Supply Contract.

Order
Instalment means 10% of the CIF Lae Portion in respect of the relevant item of Equipment.

PNGP or Papua New Guinea Portion means the inland transport, handling, dis-assembly and reassembly
costs in respect of any item of Equipment in Papua New Guinea.

Premises means any premises stated in the Details Schedule of this Lease.

PRI Policy means the Political Risk Insurance Policy (cover Note No. CP 3642506) dated 3 August
2006 issued in favour of HGMC by the Heath Lambert Group including the endorsement titled Cover
Note Addendum No.1 dated 13 November 2006 and Cover Note Addendum No.2 dated 18 April 2007 and any
other endorsements on the policy from time to time.

Principal Outstanding means the aggregate of the present value of unpaid Rent Instalments and
Residual Value discounted at the relevant rate implicit in each Lease.

Proceeds Account means an account of the Lessee entitled “Hidden Valley Gold Proceeds Account”
with Westpac Banking Corporation (New York branch) or any other account which Westpac and the
Lessee agree is the Proceeds Account for the purposes of a Lease.

Project means the Hidden Valley Gold Project (or Hidden Valley Project) in Morobe Province, Papua
New Guinea in terms of which the Lessee shall fund, design, procure, construct and commission a
mine on its Hidden Valley Tenements (as defined in the Project Loan Agreement) and conduct mining,
mineral processing and related operations thereon.

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Morobe Consolidated Goldfields Limited — Master Lease Agreement

Project Charge means the charge in the form of schedule 10 to be granted by the Lessee in favour
of the Project Lender to secure its obligations under the Project Loan Agreement.

Project Completion means date upon which the Lessee has satisfied Westpac that the Project has
achieved for any consecutive 3 (three) month period a rolling monthly average gold production of
not less than 19,000 ounces per month.

Project Document means:

	(a)	 	the Compensation Agreement;
	 
	(b)	 	the Memorandum of Agreement;
	 
	(c)	 	the Project Loan Agreement;
	 
	(d)	 	the Project Charge;
	 
	(e)	 	the Mining Lease;
	 
	(f)	 	the Mining Easement, or if such easement has not been granted, the Mining Easement
Application;
	 
	(g)	 	the Sell Back Option;
	 
	(h)	 	any Maintenance Contract;
	 
	(i)	 	the Supply Contract;
	 
	(j)	 	the PRI Policy;
	 
	(k)	 	the Komatsu Guarantee;
	 
	(I)	 	any Authorisation necessary for the Lessee to execute and perform its obligations in
accordance with any agreement or security relating to this Agreement or in connection with
the Project, including all necessary approvals from Papua New Guinea Central Bank (including
for offshore bank accounts) and an environment permit under the Environment Act 2000 (PNG);
	 
	(m)	 	any document issued under any Project Document; or
	 
	(n)	 	any other document agreed to by Westpac and the Lessee from time to time and any amendment
or replacement of any of them or any document issued under any of them.

Project Lender means HGM.

Project Loan Agreement means the loan agreement in the form and in the amount in schedule 9 to be
entered into between the Lessee and the Project Lender.

Rent Instalment means all rental owing, or to become owing, by the Lessee to Westpac under a
Lease. The amount of Rent Instalment is as stated in the relevant Details Schedule as adjusted or
varied under the Lease.

Rent Instalment Date has the meaning given in the Details Schedule.

Residual Value means the amount stated in the relevant Details Schedule or any other amount agreed
between Westpac and the Lessee in writing (as adjusted or varied under the Lease).

Security Interest includes any mortgage, pledge, lien, charge or other security or any arrangement
which gives a creditor a preferential right to an asset or its proceeds.

Sell Back Option means the sell back option in schedule J of Part 3 of the Supply Contract.

Shipping Date means the date no later than 7 days after the date upon which Komatsu issues a Bill
of Lading in respect of the relevant item of Equipment to the Contractor for shipment to the
Lessee. The Shipping Date shall be no later than the last day of the Availability Period.

Shipping
Instalment means 85% of the CIF Lae Portion in respect of the relevant item of Equipment.

Subsidiary has the meaning given in the Corporations Act 2001 (Cth).

Supply Contract means the supply of mining equipment contract dated 22 November 2006 between the
Lessee and the Contractor.

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Morobe Consolidated Goldfields Limited — Master Lease Agreement

A “tax” means a tax, levy, impost, deduction, charge, stamp duty, financial institutions duty, any
credit or debit tax, compulsory loan or withholding (together with any related interest, penalty,
fine or expense in connection with any of them).

World Bank Guidelines means the Pollution Prevention and Abatement Handbook produced by the World
Bank (as updated) and any other environmental guidelines published by the World Bank or the
International Finance Corporation (including the World Bank General Environmental Guidelines, the
IFC General Health and Safety Guidelines and guidelines outlined in the Equator Principles).

Interpretation

Headings are for convenience only and do not affect interpretation. The following rules apply
unless the context requires otherwise.

	w	 	A reference to a party to this document or another agreement or document includes the party’s
successors and permitted substitutes or assigns.
	 
	w	 	A reference to writing includes a facsimile transmission and any means of reproducing words
in a tangible and permanently visible form.
	 
	w	 	Mentioning anything after including, includes or including or after examples does not limit
what else might be included.
	 
	w	 	A reference to conduct includes an omission, statement or undertaking, whether or not in
writing.

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Morobe Consolidated Goldfields Limited — Master Lease Agreement

SCHEDULE 2

SCHEDULE OF REPRESENTATIONS, WARRANTIES AND UNDERTAKINGS

Terms used in this Schedule are defined and will be interpreted on the basis set out in Schedule 1
of the attached Master Lease Agreement or a Lease unless the context requires otherwise.

1. REPRESENTATIONS AND WARRANTIES

The Lessee represents and warrants as follows.

	(a)	 	(Status) It is incorporated in the place stated by it. Each Bank Document is its binding
obligation enforceable against it, and does not breach any document or agreement binding on it
or any law.
	 
	(b)	 	(Authority) It has full power and authority to enter into and perform the Bank Documents and
Project Documents to which it is a party. No further corporate action is necessary for it to
be bound under any Bank Document. Each person held out in a verification certificate
attached to a Bank Document or other document signed by a secretary or director as having that
authority, is authorised to sign a drawdown or other notice on its behalf.
	 
	(c)	 	(Information) All information provided to Westpac or the Arranger in respect of the Bank
Documents and to the insurers in respect of the PRI Policy by or on behalf of it or HGMC is
true in all material respects and is not by omission or otherwise misleading or deceptive in
any material respect. It has disclosed to Westpac and the Arranger everything known to it
material to Westpac’s entry into the Master Lease Agreement and the Leases. It has
disclosed to the insurers under the PRI Policy everything known to it material to each
insurer’s entry into the PRI Policy.
	 
	(d)	 	(Accounts) Its and HGMC’s most recent consolidated and unconsolidated accounts give a true
and fair view under generally accepted accounting principles. There has been no material
adverse change since the period they cover. They disclose all material Finance Debt and
material contingent liabilities.
	 
	(e)	 	(Litigation) No litigation, tax claim, dispute or other proceeding is current or, to its
knowledge, threatened which may have a Material Adverse Effect.
	 
	(f)	 	(No trustee) It is not a trustee of any trust, except for any implied constructive or
resulting trust which arises under its ordinary course of business.
	 
	(g)	 	(No default) There is no subsisting Event of Default, or event which with time or notice or
both would become an Event of Default.
	 
	(h)	 	(Environment Law) There is and has been nothing relating to it or its business or assets
which under any Environmental Law has given rise or may give rise to substantial expenditure
by it, a substantial claim against it or a requirement that it cease or substantially alter
a material activity.
	 
	(i)	 	(Taxes) It has paid all taxes payable by it, expect where it is disputing the taxes in
good faith where it has set aside sufficient reserves to pay such tax and failure to pay
such taxes will not have a Material Adverse Effect.
	 
	(j)	 	(Authorisation) It has in place all Authorisations necessary or advisable in connection
with the execution and performance on the Bank Documents and the Project Documents and the
conduct of the Project.
	 
	(k)	 	(Project Documents) All Project Documents are valid and binding, it is complying with
their terms, it has not received any notice or claim by any other party of a material
breach, or threatening termination or rescission.
	 
	(I)	 	(Compliance of Project) The Project as conducted, and as contemplated, complies materially
with all applicable laws (including Environmental Laws), and with World Bank Guidelines and
with the requirements of all relevant Authorisations and the Project Documents.

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Morobe Consolidated Goldfields Limited — Master Lease Agreement

	(m)	 	(Subsidiaries) It has no Subsidiaries.
	 
	(n)	 	(Solvency) No Event of Insolvency (as defined in the Sell Back Option) has occurred in
relation to it.
	 
	(o)	 	(Insurance) It has obtained insurance in accordance with the terms of Clause 6.7 of Schedule
3.
	 
	(p)	 	(Material Adverse Effect) Nothing has occurred which has or is likely to have a Material
Adverse Effect.
	 
	(q)	 	(Security) There is no Security Interest over any of its assets other than the Project
Charge and liens arising by operation of law.
	 
	(r)	 	(Use of proceeds) All proceeds of each drawdown of any part of the Funded Amount are to be
used or have been used (as applicable) to acquire the relevant item of Equipment.
	 
	(s)	 	(Transactions permitted) The execution and performance by it of the Bank Documents to which
it is expressed to be a party and each transaction contemplated under those documents did not
and will not violate in any respect a provision of:

	 	(i)	 	a law or treaty or a judgment, ruling, order or decree of a Governmental
Agency binding on it;
	 
	 	(ii)	 	its constitution or other constituent documents; or
	 
	 	(iii)	 	any other document or agreement which is binding on it or its assets,

and, except as provided by the Bank Documents, did not and will not:

	 	(iv)	 	create or impose a Security Interest on any of its assets; or
	 
	 	(v)	 	allow a person to accelerate or cancel an obligation with respect to Finance
Debt, or constitute an event of default, cancellation event, prepayment event or
similar event (whatever called) under an agreement relating to Finance Debt, whether
immediately or after notice or lapse of time or both.

	(t)	 	(Investment Promotion Act) The Lessee holds a current certificate under the Investment
Promotion Act 1992 (PNG) and the activities it is conducting in respect of the Project and the
Bank Documents and the Project Documents are consistent with this certificate.

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Morobe Consolidated Goldfields Limited — Master Lease Agreement

	2.	 	UNDERTAKINGS

The Lessee undertakes as follows unless Westpac gives written consent otherwise.

	(a)	 	(Information) It will provide the following:

	 	(i)	 	promptly after the end of each financial year (but not longer than 120 days
thereafter), copies of its consolidated and unconsolidated audited annual balance
sheet, cashflow statements and profit and loss statement certified by an Authorised
Officer of the Lessee, together with a certificate of the company signed by two
directors certifying as to whether an Event of Default subsists and that its
representations are true;
	 
	 	(ii)	 	promptly after each calendar quarter (but not longer than 45 days thereafter),
copies of its quarterly management accounts;
	 
	 	(iii)	 	promptly after each month in a form to be agreed with the Lessor, and in any
event within 20 days of the end of that month, copies of the monthly management
operating report for the month;
	 
	 	(iv)	 	within 14 days of receipt each year, copies of:

	 	(A)	 	the Certificates of Currency for all insurances including the PRI Policy; and
	 
	 	(B)	 	the annual certificate and other supporting documentation
provided by the Contractor under clause S34.2 of the Maintenance Contract,
accompanied by a certificate of the company signed by two directors confirming
the contents of the certificate and other supporting documentation;

	 	(v)	 	promptly, details of any substantial dispute between it and a Governmental
Agency, or a proposal by a Governmental Agency to compulsorily acquire all or a
substantial part of its assets;

	 
	 	(vi)	 	promptly following receipt, copies of each Handover Certificate;
	 
	 	(vii)	 	promptly, notice of any dispute with another party to a Project Document, any
material breach of a Project Document by any party, any allegation of a material
breach, any communication threatening or foreshadowing a possible termination,
rescission or acceptance of a repudiation of a Project Document or any amendment to or
variation of a Project Document;
	 
	 	(viii)	 	immediately, notice and written particulars of any failure to maintain the Equipment
in accordance with the requirements of the Sell Back Option and/or non-compliance with
those requirements;
	 
	 	(ix)	 	promptly, notice of any event of default or potential event of default
(howsoever described) under the Project Loan Agreement;
	 
	 	(x)	 	promptly, notice and written particulars of any litigation, arbitration, tax
claim, dispute or administrative or other proceeding in relation to it involving a
claim or series of claims exceeding US$1,000,000 or its equivalent or which may
otherwise have a Material Adverse Effect; and
	 
	 	(xi)	 	promptly, any other information reasonably requested by Westpac (including
information relating to the financial condition, operations and business of the
Lessee).

	 	 	Any account or statement provided to Westpac by the Lessee must give a true and fair view
and be prepared in accordance with applicable laws and generally accepted accounting
principles consistently applied.
	 
	(b)	 	(Notice of Default) It will notify Westpac as soon as it becomes aware of any Event of
Default, or any other event which with time or notice or both would become an Event of Default
(including any breach of a Bank Document).
	 
	(c)	 	(Assets) It will not dispose of all or any material part of its assets or an interest in
them or agree or attempt to do so (whether in one or more related or unrelated transaction).

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Morobe Consolidated Goldfields Limited — Master Lease Agreement

	(d)	 	(Authorisations) It will keep in force and comply with all Authorisations required in
relation to the performance and enforceability of the Bank Documents, the Project
Documents and in relation to the Project.
	 
	(e)	 	(Compliance with law) It will comply with all laws binding on it where failure to do so may
have a Material Adverse Effect.
	 
	(f)	 	(Compliance with Project Documents) It will comply in all material respects with all Project
Documents.
	 
	(g)	 	(No variation or termination of Project Documents) It will keep the Project Documents in
full force and effect. Except with the prior written consent of Westpac (not to be
unreasonably withheld), it will not:

	 	(i)	 	amend or vary or consent to any amendment or variation of a Project Document,
provided that this undertaking shall not apply to any amendment or variation of the
Memorandum of Agreement, Mining Lease or Mining Easement where such amendment or
variation is initiated by a Government Agency;
	 
	 	(ii)	 	avoid, release, surrender, repudiate, terminate, rescind, discharge (other
than by performance) or accept the termination, rescission or repudiation of a Project
Document; or
	 
	 	(iii)	 	expressly or impliedly waive, or extend or grant any time or indulgence in
respect of, any provision of a Project Document.

	(h)	 	(Enforcement of Project Documents) It will enforce each Project Document to which it is a
party and exercise its rights, authorities and discretions under those documents prudently
and while an Event of Default or event which with notice or time or both would become an
Event of Default subsists, in accordance with the directions (if any) of the Lender.
	 
	(i)	 	(World Bank Guidelines) It will comply with the World Bank Guidelines in relation to the
Project and the Equipment.
	 
	(j)	 	(Change of business) It will not substantially change the nature of the business or
businesses carried on by it as a whole. It will not take any action which would have that
effect, whether by disposal, acquisition or otherwise.
	 
	(k)	 	(Arms length dealings) It will not deal with any other party except at arms length for full
commercial consideration in the ordinary course of business.
	 
	(I)	 	(Insurance) It will keep in force insurance in accordance with clause 6.7 of schedule 3.
	 
	(m)	 	(Environmental Law) It will maintain procedures which in the opinion of Westpac are adequate
to monitor its compliance with Environmental Laws, the World Bank Guidelines or any
Authorisation under any of those laws, and circumstances which may give rise to a claim or a
requirement of substantial expenditure by it.
	 
	 	 	It will promptly remedy any material breaches or circumstances referred to above.
	 
	(n)	 	(Negative Pledge) It will not grant or permit to subsist any Security Interest over
any of its assets except:

	 	(i)	 	liens arising by operation of law, where the amounts secured by the lien is
paid when due, except where it is disputed in good faith and sufficient reserves
have been set aside to make payment of the disputed amount;
	 
	 	(ii)	 	the Project Charge provided that immediately after execution of the Project
Charge the Lessee will provide a certified copy of it to Westpac; or
	 
	 	(iii)	 	any other Security Interest described in annexure J of the Project Loan
Agreement provided that:

	 	(A)	 	prior to the date of creation of the relevant Security
Interest, Westpac has consented to the terms of the instrument creating the
Security Interest in respect of which:

	 	(1)	 	such consent may not be unreasonably
withheld other than as set out in sub-paragraph (2); and

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Consolidated Goldfields Limited — Master Lease Agreement

	 	(2)	 	such consent may be withheld if, in the reasonable opinion of
Westpac, such creation or existence of the relevant Security Interest
would adversely affect a right or interest of Westpac in respect of
the Equipment or its rights under the Bank Documents, the Supply
Contract or the Maintenance Contract or the ability of the Lessee to
perform its obligations under those documents in any material respect;
and

	 	(B)	 	the Lessee has or will immediately after execution of
the instrument referred to in paragraph (A) provide a certified copy of it
to Westpac.

	(o)	 	(Title Retention) It will not enter into an agreement with respect to the acquisition
of assets on title retention terms expect in the ordinary course of day-to-day trading.
	 
	(p)	 	(Sale and lease back) It will not sell or otherwise dispose of any of its assets to a
person were, under the terms of that sale or disposal, or under a related transaction, that
asset is or may be leased to it or any related Entity.
	 
	(q)	 	(Security Deposit) It will not deposit or lend money on terms that it will not be
repaid until its or another person’s obligations or indebtedness are performed or discharged.
It will not deposit money with or lend money to a person (other than Westpac) to whom it is,
or is likely to become, actually or contingently indebted.
	 
	(r)	 	(Project Revenue)

	 	(i)	 	It will ensure that all revenue of the Project, including all amounts
payable in relation to the sale of gold and other product of the Project and all
amounts payable to it under any hedges, are paid directly into the Proceeds Account. It
will give to all buyers and all counterparties to hedge contracts, directions necessary
for them to make payment to the Proceeds Account directly.
	 
	 	(ii)	 	If the Lessee enters into any agreement relating to Finance Debt which
in any way regulates the order of payment out of the Proceeds Account or any other
account, it will ensure that rent, fees and all other amounts under the Leases and the
Master Lease Agreement is included as operating expenditure and will not rank behind
any other expenditure or payment until the date that Westpac issues a notice to the
Lessee terminating this Agreement following an Event of Default.

	(s)	 	(Prudent operator, good operating practice) It will ensure that the Project is
constructed, operated and maintained in accordance with all applicable laws and
Authorisations, the Project Documents and with the degree of skill, diligence, prudence,
foresight and operating practice which would reasonably and ordinarily be expected from a
reasonable and prudent operator of the same type of undertaking as the Project.
	 
	(t)	 	(Hedging) The Lessee shall not adopt any hedging policy without the prior written
agreement of Westpac provided that Westpac’s agreement will not be unreasonably withheld;
provided that Westpac may withhold its agreement if the implementation of and compliance with
the hedging policy proposed by the Lessee has or is likely to have (in the opinion of Westpac)
a material adverse impact on the Project economics as evidenced by the Financial Model and the
mine plan provided as a condition precedent under clause 1.2.1.2.
	 
	(u)	 	(Inspection) The Lessor or persons authorised by it may at any time on reasonable
notice inspect and require the provision of copies of the books and records, and inspect the
premises, of the Lessee. The Lessee will do everything in its power to assist that inspection
and provide those copies and will ensure that its officers and employees do that same.
	 
	(v)	 	(PRI Policy) It will comply with the terms of the PRI Policy and do everything
necessary to maintain the PRI Policy (or an equivalent policy acceptable to the Arranger and
Westpac) in full force and effect until the Expiry Date. It will not do or permit anything
which would prejudice the PRI Policy including anything which would allow any insurer to
reduce or deny cover or terminate the PRI Policy before the Expiry Date.

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Morobe Consolidated Goldfields Limited — Master Lease Agreement

	(w)	 	(Sell Back Option) It will maintain the Equipment in accordance with the requirements for
repurchase under the Sell Back Option, without any reduction on the Sell Back Price (as
defined in the Sell Back Option). It will comply with all the terms of the Sell Back Option,
including in relation to decommissioning and delivery of Equipment and related title and
other documentation. It will ensure that it retains in good condition all documentation
required to be provided under the Sell Back Option.
	 
	(x)	 	(Finance Debt) It will not incur any Finance Debt except:

	 	(i)	 	under the Project Loan Agreement provided that the Lessee has (or will
immediately after execution of the Project Loan Agreement) provided a certified copy
of it to Westpac;
	 
	 	(ii)	 	shareholder loans provided that such shareholder loans shall not exceed the
applicable PNG “thin capitalization” limit in effect as at the date of this Agreement
(being a debt to equity ratio of 3:1) and are subordinated to the Finance Debt under
this Agreement on terms acceptable to Westpac; or
	 
	 	(iii)	 	Finance Debt contemplated in the Project Loan Agreement but secured by the
Lessee under an alternative funding arrangement on commercial terms substantially the
same as the Project Loan Agreement or otherwise acceptable to Westpac, provided that
the financier of that Finance Debt has entered into intercreditor arrangements on
terms the same as the Intercreditor Deed or otherwise acceptable to Westpac and
provided that the aggregate of Finance Debt under the Project Loan Agreement and all
of the said alternative funding arrangements does not exceed the Finance Debt
contemplated in the Project Loan Agreement.

	(y)	 	(Financial accommodation) It will not advance money or provide financial accommodation, or
give a Guarantee or a Security Interest, in connection with an obligation of another person
other than the Project Charge or liens arising by operation of law.
	 
	(z)	 	(Accounts) It will keep proper books of account that give a fair view of its financial
condition and state of affairs.
	 
	(aa)	 	(Conditions Subsequent) It will deliver to Westpac:

	 	(i)	 	within 6 months of the date of the Master Lease Agreement (or such longer
period as Westpac and the Lessee may agree) a certified copy of the Mining Easement;
and
	 
	 	(ii)	 	within 6 weeks of the date of the Master Lease Agreement (or such longer
period as Westpac and the Lessee may agree) a certified copy of the Project Loan
Agreement and the Project Charge.

	(bb)	 	(Proceeds Account) On or before the earlier of 31 October 2008 and the date any revenues are
received by the Lessee in respect of sales of mineral produced from the Project, it will
establish in its name the Proceeds Account and maintain the Proceeds Account until the Expiry
Date (or such earlier date that the Principal Outstanding and all other amounts owing by the
Lessee to Westpac under the Master Lease Agreement are satisfied in full).

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3. EVENTS OF DEFAULT

Each of the following
is an Event of Default except as stated below.

	(a)	 	(Obligations under transaction documents) The Lessee fails to comply with any obligation in
any Bank Document (including the non-payment of any amount owing to Westpac under any Bank
Document).
	 
	(b)	 	(Misrepresentation) A representation or statement by or on behalf of the Lessee in a Bank
Document, or in a document provided under it, is misleading in a material respect.
	 
	(c)	 	(Cross Default)

	 	(i)	 	Finance Debt of the Lessee is not paid when due (or within an applicable grace
period) or becomes due, or capable of being called due, in advance of its stated
maturity (except as a result of the exercise of a prepayment right in the absence of
default); or
	 
	 	(ii)	 	an event of default (how so ever described) occurs under any other document to
which the Lessee is a party.

	(d)	 	(Winding up) An application or order is made, or a resolution is passed or proposed in a
notice of meeting, or other applicable steps taken, for the winding up,
statutory management or administration of the Lessee or any analogous process, or an
arrangement or composition with its creditors or a class of them.
	 
	(e)	 	(Enforcement against assets) A receiver, receiver and manager, administrator or similar
officer is appointed over the Lessee or any of its assets. A Security Interest is enforced, or
distress or other execution threatened or levied, against any asset of the Lessee.
	 
	(f)	 	(Reduction of capital) The Lessee reduces its capital, cancels its uncalled capital or buys
back its shares.
	 
	(g)	 	(Insolvency) The Lessee is insolvent or is deemed or presumed insolvent under any applicable
law. The Lessee ceases or threatens to cease carrying on its business or paying its debts.
	 
	(h)	 	(Event of Insolvency) An Event of Insolvency occurs (as defined in the Sell Back Option).
	 
	(i)	 	(Documents) All or a material part of a Bank Document or a Project Document is for any
reason terminated, discharged, avoided, repudiated or rescinded or of no force or effect or
of limited force or effect. The Lessee alleges that it is so.
	 
	(j)	 	(Investigation) An investigation or any other form of inquiry is instituted under the
Corporations Act 2001 (Cth), the Companies Act 1997 (PNG) or similar legislation into the
affairs of the Lessee which in the reasonable opinion of Westpac may have a Material Adverse
Effect.
	 
	(k)	 	(Revocation of Authorisation) An Authorisation which is material to the business of the
Lessee, the Project or performance by the Lessee of its obligations under the Bank Documents
ceases to have effect and is not replaced by another Authorisation acceptable to Westpac.
	 
	(I)	 	(Ceasing business) The Lessee ceases to carry on business.
	 
	(m)	 	(Control) Without the prior written consent of Westpac (not to be unreasonably withheld):

	 	(i)	 	the Lessee ceases to be directly or indirectly wholly and beneficially owned
by HGMC provided that HGMC may, through its relevant Subsidiaries, procure and/or the
Lessee may transfer to the Provincial Government of Morobe and/or the Landowners (as
defined in the Mining Development Agreement) up to 5% of the issued share capital in
the Lessee in accordance with the provisions of the Mining Development Agreement;
	 
	 	(ii)	 	the Project Lender ceases to be directly or indirectly wholly and
beneficially owned by HGMC; or
	 
	 	(iii)	 	in the opinion of Westpac there is a substantial change in the ownership,
management or control of HGMC.

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Consolidated Goldfields Limited — Master Lease Agreement

	 	(n)	 	(Compulsory Acquisition) Any Equipment or all or a material part of the Project or the
assets of the Lessee are acquired by any Governmental Agency or otherwise expropriated.
	 
	 	(o)	 	(Abandonment) The Project is abandoned, or put on an care and maintenance basis.
	 
	 	(p)	 	(World Bank Environmental Standards) The Lessee fails to comply with World Bank Guidelines
for a continuous period of 30 days or more.
	 
	 	(q)	 	(Insurance) Any insurance required to be maintained in relation to the Equipment or the
Project (including the PRI Policy), is terminated or expires without renewal prior to the
Expiry Date or is materially or adversely reduced or otherwise prejudiced, or (without
limiting the foregoing) an insurer denies or materially reduces cover, or is entitled to
terminate or avoid the policy, or to deny cover.
	 
	 	(r)	 	(Analogous events) Anything analogous to anything referred to in paragraphs (d) to (h)
inclusive or which has substantially the same effect in any jurisdiction occurs with respect
to the Lessee.
	 
	 	(s)	 	(Conditions Subsequent) The Lessee fails to comply with its undertakings in paragraph (aa)
of Schedule 2, part 2.
	 
	 	(t)	 	(Mining Easement) The Mining Advisory Council of Papua New Guinea or the Minister
responsible for mining in Papua New Guinea makes a final and conclusive determination not to
grant the Mining Easement either in the form of the Mining Easement Application or in such
other form as may be acceptable to the Lessee and agreed by Westpac (acting reasonably).
	 
	 	(u)	 	(Material Adverse Change) There are any other circumstances including a material adverse
change to the business assets or financial condition of the Lessee which may in the opinion
of Westpac have a Material Adverse Effect.

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Consolidated Goldfields Limited — Master Lease Agreement

SCHEDULE 3

SCHEDULE OF LEASE TERMS

1. DEFINITIONS AND INTERPRETATION

The definitions and principles of interpretation in Schedule 1 to the Master Lease Agreement or the
relevant Lease apply to this Schedule unless the context requires otherwise.

2. REPRESENTATIONS AND UNDERTAKINGS

The Lessee makes the representations and warranties and gives the undertakings in Schedule 2 to the
Master Lease Agreement.

3. COMMENCEMENT OF LEASE

This Lease will commence on the commencement date stated in the Details Schedule.

4. DELIVERY, TITLE, LOCATION OF EQUIPMENT AND ASSIGNMENT

	4.1	 	(Deliver): The Lessee will take delivery of the Equipment on Westpac’s behalf at the
Lessee’s cost and risk of delay. The taking of delivery by execution by both the Lessee and
the Contractor of the Handover Certificate in accordance with the terms of the Supply
Contract is:

	 	(a)	 	an acceptance of delivery by Westpac; and
	 
	 	(b)	 	conclusive proof, as between the parties, that the Equipment has been
inspected by the Lessee and is satisfactory to the Lessee.

	4.2	 	(Lessee’s risk): The Lessee accepts all risk of the non-existence or non-delivery of the
Equipment, any defect in the Equipment, their conformity to any description, any defects in
Westpac’s title to them and their quality, merchantability, suitability, fitness and
condition. The Lessee must satisfy itself as to these matters. Westpac has no obligation or
liability in connection with the delivery or acceptance of any item of Equipment.
	 
	4.3	 	(Property of owner):

	 	(a)	 	The Lessee acknowledges that, following the assignment in accordance with
clause 4.6 of this Lease, the Equipment is and will remain Westpac’s sole property.
	 
	 	(b)	 	The Lessee will take all steps necessary or reasonably required by Westpac to
preserve Westpac’s rights and title to the Equipment.

	4.4	 	(Location of Equipment): The Lessee will keep the Equipment:

	 	(a)	 	in the Lessee’s sole possession, except pursuant to the Maintenance Contract
when the relevant item of Equipment will be in the possession of the Contractor; and,
	 
	 	(b)	 	unless the Equipment is normally mobile (for example, a motor vehicle, ship
or plane), at the Premises stated in the Details Schedule or, if no Premises are
stated, in a safe and proper place notified to Westpac by the Lessee (or any other
places approved in writing by Westpac).

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Morobe Consolidated Goldfields
Limited — Master Lease Agreement

	4.5	 	(Leased or Mortgaged Premises):

	 	(a)	 	Where the Equipment is to be installed or used in any Premises or
places:

	 	(i)	 	that are not owned by the Lessee; or
	 
	 	(ii)	 	subject to any Security Interest, lease, sub-lease or other
interest, the Lessee must:
	 
	 	(A)	 	first deliver to Westpac a written acknowledgment executed by
each person having any interest in the Premises or places (whether as owner,
mortgagee, lessor, sub-lessor or otherwise) that:

	 	(1)	 	the Equipment is and will remain the property of Westpac; and
	 
	 	(2)	 	Westpac may enter those Premises or
places and remove the Equipment;

	 	(B)	 	take all steps necessary to preserve Westpac’s rights and
title to the Equipment; and,
	 
	 	(C)	 	pay the rents, rates, taxes, charges and impositions payable in
respect of the Premises or places where the Equipment is located and all amounts
payable under any Security Interest, lease, sub-lease or other interest in
relation to such Premises or places.

	 	(b)	 	The Lessee must not create or permit any Security Interest over the Premises or
place where the Equipment is located unless the Lessee has first delivered to Westpac
an acknowledgment by the security holder in accordance with paragraph (a)(A) above.

	4.6	 	(Assignment):
	 
	 	 	The provisions of the Deed of Assignment apply in respect of Equipment the subject of this
Lease.
	 
	5.	 	PAYMENTS
	 
	5.1	 	(manner of payment): The Lessee will pay the Rent Instalments, the Casualty and
Termination Value, the Residual Value and all other money payable by the Lessee under this
Lease:

	 	(a)	 	as set out in the Details Schedule or elsewhere in this Lease;
	 
	 	(b)	 	without any set-off, withholding or deduction;
	 
	 	(c)	 	to Westpac at the address stated in the Details Schedule or at any other
address Westpac notifies the Lessee in writing from time to time; and
	 
	 	(d)	 	with any applicable GST or similar tax.

	5.2	 	(obligations unconditional):

	 	(a)	 	The Lessee’s obligations to pay the Rent Instalments, the Casualty and
Termination Value, the Residual Value and all other amounts are absolute and
unconditional.
	 
	 	(b)	 	They will not be affected by anything which would otherwise affect them
(including any defect in the Equipment, quality, fitness, suitability,
merchantability or condition of the Equipment, conformity to any description, title
to the Equipment or the non-existence or destruction of the Equipment).
	 
	 	(c)	 	The consideration for the Lessee’s obligations includes the payment of the
Funded Amount by Westpac.
	 
	 	(d)	 	Rent Instalments paid in advance are not refundable.

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Morobe Consolidated Goldfields Limited — Master Lease Agreement

	5.3	 	(Default interest): Interest will accrue each day on each amount due but unpaid. The rate
will be the applicable Interest Rate for the Interim Interest Instalment or Term Instalment as
the case may be plus 2%. That interest accrues before and after any judgment. Unless it does
so more often, Westpac will be taken to have debited monthly the Lessee’s account with accrued
interest under this paragraph. That interest will then itself bear interest.
	 
	5.4	 	(Stamp duty and government charges): The Lessee will pay or reimburse Westpac for all stamp,
transaction and other similar duties and charges in relation to this Lease and any security
(including Guarantees) and any transaction under them. This includes financial institutions
duty, hiring arrangement duty and debits tax. The Lessee will also pay any fines and
penalties unless they result from a failure by Westpac to lodge a document for stamping in
sufficient time, having received from the Lessee the amount of stamp duty at least 7 days
before the due date.
	 
	5.5	 	(Indemnities and expenses): The Lessee will indemnify Westpac on demand against:

	 	(a)	 	loss or destruction of the Equipment or damage to the Equipment for any reason;
and
	 
	 	(b)	 	all liabilities, losses, damages, claims, proceedings (whether civil or
criminal), fines, penalties, costs (including legal costs on a full indemnity basis)
and expenses which:

	 	(i)	 	are incurred by Westpac or made or claimed by any person at any time; and
	 
	 	(ii)	 	in any way arise out of or relate to this Lease or the
Equipment, its ownership, delivery, assembly, installation or use.

	 	 	This includes those arising out of or relating to:

	 	(A)	 	death, injury or property damage;
	 
	 	(B)	 	any failure to comply with any law or duty;
	 
	 	(C)	 	any breach or Event of Default under this Lease or any Guarantee of this Lease;
	 
	 	(D)	 	any actual or contemplated enforcement or exercise of rights or powers under
this Lease or a Guarantee of this Lease;
	 
	 	(E)	 	any Environmental Law (including clean up and remediation costs);
	 
	 	(F)	 	any dealing with the Equipment or steps taken with a view to dealing;
	 
	 	(G)	 	equipment leasing arrangements in PNG which are reasonably required by
Westpac; or
	 
	 	(H)	 	any changes to the rates of tax depreciation or corporate taxation but
not (and each party shall bear its own costs and risks in respect of):

	 	(i)	 	denial and deductions due to characterisation of the
transaction (including the transaction being characterised as a lease for
taxation purposes); or
	 
	 	(ii)	 	taxation on sale proceeds where such proceeds exceed the Residual Vale.

	5.6	 	(Break costs): If:

	 	(a)	 	this Lease is terminated under Clause 9.1 or for any other reason other than
a breach or default by Westpac;
	 
	 	(b)	 	a Lease requested in a Drawdown Notice is not entered into for any reason
other than a breach or default by Westpac; or
	 
	 	(c)	 	the relevant Equipment is not purchased on the anticipated Delivery Date for
any reason other than a breach or default by Westpac,

	 	 	the Lessee will indemnify Westpac on demand against any cost determined by Westpac as being
or to be incurred by reason of:

	 	(i)	 	the liquidation or re-employment of deposits or other funds acquired
or contracted for by it to fund or maintain; or

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Consolidated Goldfields Limited — Master Lease Agreement

	 	(ii)	 	the termination or reversing of any agreement entered into by Westpac
to fix, hedge or limit its effective cost of funding or maintaining,

	 	 	the purchase price, and delivery and commissioning cost, of the Equipment, its participation
in this Lease or any amount (including loss of margin in connection with any hedging
arrangements).
	 
	5.7	 	(Variation of Rent Instalments, Residual Value and
Casualty and Termination Value) Any
variation or recalculation will be effective under clause 5.8 on notice from Westpac to the
Lessee.
	 
	5.8	 	(Change In Margin) Whenever the Margin changes Westpac will recalculate all Rent
Instalments payable after the Margin changes and the Casualty and Termination Value and
promptly notify the Lessee.
	 
	5.9	 	(Indirectfax):

	 	(a)	 	All payments to be made by the Lessee under any Bank Document are calculated
without regard to GST. If any such payment constitutes the consideration for the whole
or any part of a taxable supply by Westpac, the amount of that payment shall be
increased by an amount equal to the amount of GST which is chargeable in respect of
the taxable supply in question. Such increase shall be made after taking into account
the reduction of any costs resulting from the abolition or reduction of any taxes as
part of the introduction of the GST.
	 
	 	(b)	 	If and to the extent that any payment or other consideration to be made or
furnished by Westpac to a person other than the Lessee pursuant to or in
connection with any Bank Document or the Equipment may be increased or added to by
reference to (or as a result of any increase in the rate of) any GST for which Westpac
is not entitled to receive and retain an input tax credit, the Lessee shall pay to
Westpac on demand an amount equal to that increase or the value of that addition.

	5.10	 	(PNGP Adjustment): If:

	 	(a)	 	the PNGP is more than the Estimated PNGP, on the Delivery Date the Lessee
shall pay to Westpac the amount of the difference in cash between an amount equal to 1
5% of the PNGP and an amount equal to 1 5% of the Estimated PNGP;
	 
	 	(b)	 	the PNGP is less than the Estimated PNGP. with effect from the Delivery Date
Westpac shall set off the difference in those amounts against amounts owing by the
Lessee under this Lease.

	6.	 	THE LESSEE’S OBLIGATIONS RELATING TO EQUIPMENT
	 
	6.1	 	(Compliance with laws and requirements): The Lessee will comply with all laws and
registration or licensing requirements in relation to the Equipment or their use and with any
requirements or conditions of their manufacturers’ or suppliers’ warranties.
	 
	6.2	 	(Registration): Where a relevant law requires Equipment to be registered (for example, if
they are a motor vehicle, boat, ship or an aircraft):

	 	(a)	 	the Lessee will register them in the Lessee’s name as if the Lessee were the
owner, unless directed otherwise by Westpac; and
	 
	 	(b)	 	when it returns the Equipment to Westpac, the Lessee will
immediately do everything necessary to have the Equipment registered in Westpac’s
name or as Westpac directs.

	6.3	 	(Use): The Lessee will ensure the Equipment is used properly, safely and without risk to
health.

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Consolidated Goldfields Limited — Master Lease Agreement

	6.4	 	(Repair and maintenance): The Lessee will at its cost keep or maintain the Equipment in good
repair and condition, subject to fair wear and tear and in accordance with the standards
prescribed in the Maintenance Contract and the Sell Back Option. The Lessee will furnish all
proper parts and accessories for this purpose. The Lessee will comply with the terms of the
Maintenance Contract and the Sell Back Option. The Lessee will not terminate, or amend, vary
or waive any provision of, the Maintenance Contract without the prior written consent of
Westpac.
	 
	6.5	 	(Alterations):

	 	(a)	 	The Lessee will not:

	 	(i)	 	make any alterations, improvements or additions to the Equipment;
or
	 
	 	(ii)	 	install anything on or in the Equipment,

	 	 	 	except in compliance with this Lease, with clause S15.1 of the Maintenance
Contract or with the consent of Westpac.
	 
	 	(b)	 	Everything installed on or in the Equipment will be part of the Equipment and
Westpac’s property. This includes all parts and accessories.

	6.6	 	(Inspection):

	 	(a)	 	The Lessee will permit Westpac to inspect or test the Equipment at any time.
	 
	 	(b)	 	The Lessee will ensure Westpac has access to any Premises or places where the
Equipment may be.

	6.7	 	(Insurance):

	 	(a)	 	The Lessee will:

	 	(i)	 	at its cost keep in force insurance for its business and
assets as would a prudent business of its size conducting its business and
assets;
	 
	 	(ii)	 	at its cost insure the Equipment (including against loss or
damage) and keep them insured to their full insurable value (as defined
below); and
	 
	 	(iii)	 	take out other insurance with respect to the Equipment against:

	 	(A)	 	the usual risks (including, where appropriate,
third party and all risks required by law); and
	 
	 	(B)	 	all other risks which Westpac requires,

	 	(iv)	 	procure that there is in place at all times up to the Expiry
Date a political risks insurance policy,
	 
	 	 	 	in the manner, to the extent and on terms that are satisfactory to Westpac.

	 	(b)	 	Each insurance policy must:

	 	(i)	 	be in Westpac’s name (or if Westpac agrees, in the names of
the Lessee and Westpac as co-insured) with reputable insurers approved by
Westpac (that approval not to be unreasonably withheld); and
	 
	 	(ii)	 	provide that to the extent that the policy covers the interest
of Westpac, the insurer will not refuse or reduce a claim or cancel or avoid
the policy except where the right to do so results from the fraud of Westpac.

	 	(c)	 	The Lessee will produce to Westpac certificates of currency at Westpac’s request.
	 
	 	(d)	 	The Lessee will ensure that all information provided to the insurers in
respect of any insurance policy under this clause (including the PRI Policy) by or on
behalf of it or HGMC is true in all material respects and is not by omission or
otherwise misleading or deceptive in any material respect. The Lessee will disclose
to the insurers under any insurance policy under this clause (including the PRI
Policy) everything known to it material to each insurer’s entry into the relevant
policy.

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Consolidated Goldfields Limited — Master Lease Agreement

	 	(e)	 	The Lessee will not do or permit anything to be done which may prejudice any
insurance policy under this clause (including the PRI Policy). The Lessee will not omit
to do anything if the omission may prejudice it.
	 
	 	(f)	 	The Lessee will do everything necessary to enable Westpac to collect any money
under any insurance policy under this clause (including the PRI Policy).
	 
	 	(g)	 	The full insurable value of Equipment at any date means the greater
of:

	 	(i)	 	the full market value of the Equipment; and
	 
	 	(ii)	 	the full replacement or reinstatement value of the Equipment.

	 	(h)	 	Westpac may appoint an expert adviser to review and make recommendations in
relation to all insurance matters.
	 
	 	(i)	 	The Lessee will procure that if the PRI Policy expires prior to the Expiry
Date suitable replacement political risk insurance acceptable to Westpac will be put
in place.
	 
	 	(j)	 	Costs associated with insurance are for the account of the Lessee.

	6.8	 	(Dealing with Equipment):The Lessee will not:

	 	(a)	 	sell or assign;
	 
	 	(b)	 	lend, let on lease or otherwise part with possession of; or
	 
	 	(c)	 	create or permit any Security Interest over,

	 	 	any of the Equipment or the Lessee’s interest in them or in this Lease, or purport or
attempt to do so, without Westpac’s prior written consent.
	 
	6.9	 	(Sell Back Option) The Lessee will ensure that at all times the Equipment satisfies the
requirements for repurchase under the Sell Back Option without any reduction in the Sell Back
Price (as defined in the Sell Back Option). Without limitation, it will maintain the
Equipment so that at all times its condition satisfies the requirements of the Sell Back
Option. The Lessee will comply with the Sell Back Option.
	 
	7.	 	LOSS AND RISK OF EQUIPMENT
	 
	7.1	 	(Total loss or damage): If any of the Equipment (the Lost
Equipment):

	 	(i)	 	is lost, stolen, destroyed or damaged beyond repair; and
	 
	 	(ii)	 	is treated by the insurer as a total loss; or
	 
	 	(iii)	 	is requisitioned or resumed;

	 	 	the following will apply.

	 	(a)	 	The Lessee will immediately notify Westpac.
	 
	 	(b)	 	Westpac shall calculate and demand from the Lessee the aggregate of the
Casualty and Termination Value of the Lost Equipment at the date of demand, all Rent
Instalments accrued up to the date of demand but not paid and any amount payable under
clause 5.5 or 5.6 up to the date of demand less any money Westpac has received from
the insurer or any other person because the Equipment became Lost Equipment, after
deducting any tax payable or accountable for by Westpac in respect of or by reference
to the amount so received, including GST.
	 
	 	(c)	 	The Lessee will pay the amount in paragraph (b) to Westpac on demand and the
Lease will terminate in respect of the Lost Equipment upon payment.
	 
	 	(d)	 	The Lease of the remaining Equipment will continue. As from the day after the
date of demand under paragraph (b) the Rent Instalments will be reduced by the

28

 

Morobe
Consolidated Goldfields Limited — Master Lease Agreement

	 	 	 	proportion which the cost of the Lost Equipment bears to the amount of the Cost of
Equipment stated in the Details Schedule (as determined by Westpac).
	 
	 	(e)	 	The Residual Value will be reduced by the proportion of the Residual Value
equal to the proportion which the cost of the Lost Equipment bears to the amount of the
Cost of Equipment stated in the Details Schedule (as determined by Westpac).
	 
	 	(f)	 	If following a payment under clause 7.1(b), Westpac subsequently receives any
money from the insurer or any other person because the Equipment became Lost Equipment
and such money had not been taken into account in the calculation of the amount
demanded under paragraph (b), it shall, if its has received payment from the Lessee
under clause 7.1(b), pay the money received to the Lessee as soon as practicable after
deducting from such amount any tax payable or accountable for by Westpac in respect of
or by reference to the amount so received, including GST.

	7.2	 	(Partial Damage) If any of the Equipment fails to meet the return conditions set out in the
Sell Back Option, the Lessee will immediately notify Westpac. If such failure is not
remedied to Westpac’s satisfaction within 15 days of such failure (or such longer period
agreed between the Lessee and Westpac), the relevant Equipment shall be deemed to be Lost
Equipment and the provisions of clause 7.1(b) to (f) inclusive will apply.
	 
	7.3	 	(Risks):  The Lessee assumes all risks and liabilities for the Equipment and their use,
maintenance, repair and storage.
	 
	8.	 	WARRANTIES
	 
	8.1	 	(Exclusion of warranties):As between the parties, to the full extent permitted by law the
following apply:

	 	(a)	 	Westpac gives no condition, warranty or representation as to:

	 	(i)	 	the Equipment (including the design, capacity, age, existence,
location, quality, description, condition, use or ownership of the Equipment
or their merchantability, suitability or fitness); or
	 
	 	(ii)	 	the taxation and financial consequences of this Lease.

	 	 	 	None will be implied.

	 	(b)	 	Before requesting Westpac to acquire the Equipment, and before entering into
this Lease, the Lessee must:

	 	(i)	 	satisfy itself as to the above issues;
	 
	 	(ii)	 	make arrangements for maintaining the Equipment; and
	 
	 	(iii)	 	obtain from the manufacturer or supplier of the Equipment any
warranties and conditions contemplated in the Supply Contract which Westpac
requires.

	 	(c)	 	To the extent that Westpac’s liability cannot be excluded, that liability is
limited to replacement or repair of the relevant Equipment, supply of equivalent
Equipment or payment of the cost of doing so, at Westpac’s option.
	 
	 	 	 	In the case of any replacement of the relevant Equipment or any supply of equivalent
Equipment, the Lessee agrees to enter into a new Lease reasonably requested by
Westpac for this purpose.

	8.2	 	(Warranties by Lessee):

	 	(a)	 	The Lessee warrants and represents that:

	 	(i)	 	the Premises or places at which the Equipment is to be kept
are free from any Security Interest except those (if any) stated in the
Details Schedule; and

29

 

Morobe Consolidated Goldfields Limited — Master Lease Agreement

	 	(ii)	 	it is leasing the Equipment for use by it for the purpose of a
business which the Lessee carries on (whether or not together with any other
person) and the whole or the greater part of the amount payable under this
Lease is or is expected to be a loss or outgoing necessarily incurred in
carrying on that business.

	 	(b)	 	This representation and warranty is deemed to be repeated by the Lessee to
Westpac on the date of each Lease as if made then in respect of the facts and
circumstances then subsisting.

	8.3	 	(Assignment of warranties): So far as it is legally possible, on request by the Lessee,
Westpac will assign to the Lessee the benefit of any condition or warranty given by the
manufacturer or supplier of the Equipment under the Supply Contract or the Maintenance
Contract. The Lessee will re-assign them to Westpac or a third party nominated by Westpac on
termination of this Lease.
	 
	9.	 	TERMINATION
	 
	9.1	 	(Termination):

	 	(a)	 	At any time while an Event of Default is subsisting, Westpac may terminate
this Lease by notice to the Lessee.
	 
	 	(b)	 	The Lessee may terminate this Lease by providing a notice to Westpac for all
items of Equipment under all Leases. The notice must be provided to Westpac within 30
days of the proposed termination date and be irrevocable.
	 
	 	(c)	 	If the Lessee fails to provide to Westpac a Handover Certificate for the
relevant item of Equipment within 3 months of the Shipping Date of the Lease (or such
other period agreed by Westpac) then Westpac may by notice to the Lessee terminate
this Lease.

	9.2	 	(Payments on early termination):

	 	(a)	 	In order to predetermine its liability, on early termination of this Lease
under clause 9.1 or 9.6, the Lessee will pay to Westpac an amount equal to the sum of:

	 	(i)	 	the amount of any Rent Instalments and other money then
payable under this Lease;
	 
	 	(ii)	 	the Casualty and Termination Value in respect of the Equipment
under this Lease as at the date of such termination; and
	 
	 	(iii)	 	any amount payable under clause 5.5 or 5.6. (provided that in
respect of early termination of this Lease arising as a result of a failure by
the Lessee to comply with paragraph (aa) of Schedule 2, part 2, amounts will
only be payable by the Lessee under clause 5.5 for liabilities, losses, costs
or expenses incurred by Westpac which in any way relate to the Equipment or
the exercise of its rights in respect of the Equipment).

	 	(b)	 	In the case of a termination following an Event of Default or breach of an
essential term that amount will be liquidated damages. The Lessee acknowledges that
that amount is a genuine pre-estimate of Westpac’s loss.

	9.3	 	(Payments on expiry):
	 
	 	 	Upon the expiry of this Lease on the Expiry Date the Lessee must pay to Westpac the
Residual Value of the Equipment and any other amounts then outstanding under this Lease.

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Morobe Consolidated Goldfields Limited — Master Lease Agreement

	9.4	 	(Return of Equipment on termination of Lease):

	 	(a)	 	The Lessee will at its expense within 14 days of termination or expiry of this
Lease return the Equipment:

	 	(i)	 	in a condition consistent with the performance of the Lessee’s
obligations under this Lease (and in particular complying with the Sell Back
Option); and
	 
	 	(ii)	 	to Westpac at Westpac’s address stated in the Details Schedule
or at any other address specified by Westpac,

	 	 	 	unless (in the case of expiry of this Lease) Westpac has before such expiry agreed
in writing to an extension of this Lease.
	 
	 	(b)	 	Unless otherwise agreed in writing, any extension or holding-over of this Lease
will be at the Rent Instalments and upon the terms of this Lease including the terms
relating to the Residual Value. Any such extension or holding-over will continue until
terminated by either party giving one month’s written notice to the other expiring at
any time.
	 
	 	(c)	 	Westpac may repossess any item of Equipment if it is not returned when
required. For that purpose Westpac or its representative may enter any place where the
Equipment is or it suspects it is and for such purpose may break open any gate, door or
fastening and detach and dismantle the Equipment from the Premises.

	9.5	 	(Sale of Equipment on termination or expiry):

	 	(a)	 	If any of the Equipment comes into Westpac’s possession following expiry or
termination of this Lease under clause 9.1 or clause 9.6 or on expiry of this Lease,
Westpac shall either

	 	(i)	 	exercise its rights under the Sell Back Option (if it is
entitled to do so under the terms of the Sell Back Option); or
	 
	 	(ii)	 	submit the Equipment the subject of this Lease for sale on an
“as is, where is” basis by public auction without reserve or by private treaty
or tender, provided that Westpac shall give the Lessee not less than 60 days
prior written notice thereof. The Lessee shall nominate the time and place of
the sale unless an Event of Default has occurred, in which case the time and
place will be selected by Westpac. This may, but need not, be an auction
without reserve. Westpac has no other duty as to when or how the sale must be
carried out or as to the price achieved. Nothing in this paragraph (a) or
paragraph (c) affects the obligation of the Lessee to return the Equipment as
provided under Clause 9.4(a).

	 	(b)	 	If Westpac sells any of that equipment in accordance with clause 9.5(a)(ii),
Westpac must pay to the Lessee an amount equal to the gross proceeds of such sale
actually received by Westpac, less the sum of:

	 	(i)	 	all costs and expenses of and incidental to the sale (including any costs and
expenses incurred by Westpac in taking possession, storing, moving,
repairing, registering and insuring the Equipment);
	 
	 	(ii)	 	any duty or
tax, and in particular GST, which Westpac incurs or for which
Westpac becomes liable or accountable upon the sale; and
	 
	 	(iii)	 	any other amount then owing by the Lessee to Westpac (including any
unpaid Residual Value or Casualty and Termination Value and any amount
payable under clause 5.3, 5.5 or 5.6).

	 	 	 	If the sum of (i), (ii) and (iii) exceeds the gross proceeds of sale actually
received, the Lessee must pay Westpac on demand an amount equal to the excess.

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Morobe
Consolidated Goldfields Limited — Master Lease Agreement

	 	(c)	 	If any of the Equipment:

	 	(i)	 	has not been returned to Westpac within 14 days of the
termination or expiry of this Lease; or
	 
	 	(ii)	 	is returned to Westpac, but in Westpac’s opinion, it is not
able to sell it within a reasonable time,

	 	 	 	then the value of that Equipment will be taken to be nil. Westpac will be taken to
have disposed of that Equipment for no consideration.
	 
	 	(d)	 	The Lessee must pay Westpac on demand the amount of all costs and expenses
associated with any attempted sale of the Equipment under this Clause and any other
amount owing by the Lessee to Westpac.
	 
	 	(e)	 	Unless Westpac specifies a longer period, three months from return will be a
reasonable time for the purposes of this paragraph.

	9.6	 	(Essential terms):

	 	(a)	 	The Lessee acknowledges that the following are essential terms of this Lease:

	 	(i)	 	the Lessee paying punctually when due all moneys payable by it
under this Lease;
	 
	 	(ii)	 	the Lessee duly and punctually complying with its obligations
under Schedule 2 and under Clauses 4.4, 5.1, 6.1, 6.3, 6.4, 6.5, 6.7, 6.8 and
9.2;
	 
	 	(iii)	 	the representations and warranties by the Lessee in this
Lease (including Schedule 2); and
	 
	 	(iv)	 	if the Lessee fails to comply with any of its obligations
under this Lease (other than an obligation to pay moneys or an obligation
referred to in paragraph (ii)), the Lessee complying with that obligation or
remedying that failure to Westpac’s satisfaction within 10 days of the earlier
of notice from Westpac requiring it to comply with or remedy the same and the
Lessee becoming aware of the failure to comply.

	 	(b)	 	Any breach of any of these essential terms will constitute a repudiation of
this Lease by the Lessee entitling Westpac to exercise its rights under or in
connection with this Lease (including the right to terminate this Lease and to recover
the moneys stipulated in Clause 9.2).

	10.	 	GENERAL
	 
	10.1	 	(Application of money — set off): If the Lessee does not pay an amount when due, Westpac
may apply any money in any of the Lessee’s accounts (whether or not matured) in payment of
any amount payable by the Lessee under this Lease, but need not do so. For this purpose
Westpac may convert currencies using its normal procedures.
	 
	10.2	 	(Assignments): Westpac may assign this Lease or any of its rights under it with the consent
of the Lessee, such consent not to be unreasonably withheld. The Lessee may not assign it.
	 
	 	 	Westpac may, without having to obtain the consent of the Lessee, assign, transfer,
sub-participate or otherwise deal with all or any part of its rights under the Bank
Documents to a trustee, company or other entity which is established for the purposes of
securitisation, or a funding vehicle for Westpac or its related entities.
	 
	 	 	If an Event of Default is subsisting, the Lessee will be taken to have consented to any
transfer or assignment made by Westpac.

32

 

Morobe
Consolidated Goldfields Limited — Master Lease Agreement

	 	 	Despite any other provision of any Bank Document, Westpac may at any time and from time to
time novate all of its rights and obligations under any Bank Document to any company which
is a subsidiary of Westpac, or Westpac Banking Corporation or a subsidiary of Westpac
Banking Corporation or to any permitted assignee under the preceding two paragraphs. By its
execution of this Agreement, the Lessee irrevocably appoints Westpac as its agent to
execute on the Lessee’s behalf all documents necessary or in Westpac’s opinion desirable to
effect that novation.
	 
	10.3	 	(Rights and powers separate):

	 	(a)	 	Westpac can, but need not, do anything under this Lease at once or after a time
or more than once.
	 
	 	(b)	 	Westpac can exercise all its other rights and powers it has under law even if
they overlap with those in this Lease.
	 
	 	(c)	 	If Westpac does not do something when it is able to, that does not mean it is
giving up that right and cannot do it later.

	10.4	 	(Power of attorney): The Lessee appoints Westpac as its attorney. Westpac as attorney may do
everything which ought to be done by the Lessee under or in connection with this Lease or
which Westpac can do under this Lease or any law. Westpac may sub-delegate this power to any
Authorised Officer of Westpac. The Lessee may not revoke this power.
	 
	10.5	 	(Remedy): If the Lessee fails to comply with this Lease, Westpac may do anything to remedy
the breach but need not do so.
	 
	10.6	 	(Determination or certificate): Any determination by Westpac or certificate by
an Authorised Officer of Westpac will be sufficient evidence of the matter stated in it unless
the contrary is proved.
	 
	10.7	 	(Cost): The Lessee will perform its obligations under this Lease at the Lessee’s cost.
	 
	10.8	 	(Severability): Any term of this Lease which is prohibited or unenforceable in any
jurisdiction will, in that jurisdiction, be ineffective to the extent of the prohibition or
unenforceability. That will not invalidate the remaining terms of this Lease. It will not
affect that term in any other jurisdiction.
	 
	10.9	 	(Yield protection):

	 	(i)	 	Whenever Westpac determines that a Change in Law (as defined below) has the
effect of increasing its costs of funding or maintaining the Lease, or reducing its
return or amounts received in respect of the Lease then it will promptly notify the
Lessee, and the Lessee must pay Westpac the amount Westpac certifies is necessary to
compensate it. That certificate will include an outline of the calculation, and will
be conclusive and bind the Lessee in the absence of manifest error.
	 
	 	(ii)	 	If the Lessee so requests, Westpac will negotiate in good faith with a view
to finding a means of minimising the effect of the Change in Law, but it is not a
defence that the effect could have been avoided or minimised.
	 
	 	(iii)	 	A “Change in Law” is the introduction of, or a change in, any law, official
directive, ruling or request or a change in its interpretation. If it does not have
the force of law, it must be one with which responsible banks would comply. It
includes any occurrence which is a Change in Law as described above and which relates
to capital adequacy, special deposit, liquidity, reserve, prime assets, tax or
prudential requirements.

	10.10	 	(Notices):

	 	(a)	 	Any notice, demand, statement, certificate or other communication by Westpac
may be given by any Authorised Officer or any attorney authorised to do so.
	 
	 	(b)	 	Notices must be in writing, may be sent by facsimile, post or any other means
to the address or number set out in the Details Schedule or any other address or
number notified to the sender by the recipient.

33

 

Morobe
Consolidated Goldfields Limited — Master Lease Agreement

	 	(c)	 	Notices will be taken to have been given, if delivered or left at that
address on the date on which it is delivered or left.

	10.11	 	(Governing law and jurisdiction): This Lease is governed by the laws of New South Wales. The
parties submit to the non-exclusive jurisdiction of the courts with jurisdiction there.
	 
	10.12	 	(Confirmation):

	 	(a)	 	The Lessee confirms that it has not entered into this Lease relying on, or as a
result of, any statement or conduct of any kind of or on behalf of Westpac, or Westpac
Banking Corporation or any related body corporate of either of them (including any
advice, warranty, representation or undertaking). In particular, it has obtained its
own tax advice.
	 
	 	(b)	 	The Lessee acknowledges that none of Westpac, Westpac Banking Corporation and
any related body corporate of Westpac or Westpac Banking Corporation is obliged to do
anything (including disclose anything or give advice), except as expressly set out in
this Lease.

34

 

Morobe Consolidated Goldfields Limited — Master Lease Agreement

SCHEDULE 4A

FORM OF VERIFICATION CERTIFICATE FOR LESSEE

	 	 	 
	TO:

	 	Paul Crimmins
	 
	 	 
	 

	 	Head of Relationship Banking
	 
	 	 
	 

	 	Westpac Bank PNG Limited

HIDDEN VALLEY GOLD PROJECT MASTER LEASE AGREEMENT

I am a [secretary/director] of Morobe Consolidated Goldfields Limited (the Company).

Attached are true, complete and up-to-date copies of the following:

	(a)	 	An extract of minutes of a meeting of directors of the Company authorising the execution of
the Master Lease Agreement and the Intercreditor Deed and the entry into each Lease. [Major
transactions approval by special resolution under s 110 of the Companies Act 1997? (only if
applicable-)]
	 
	(b)	 	A true and up-to-date copy of its [constitution/ memorandum and articles of association].
	 
	(c)	 	[Any corporate authorisations and consents necessary for the Company to execute and perform
its obligations under the Bank Documents and the Project Documents to which it is a party.]

[No corporate authorisations or consents are required for the Company to execute and perform its
obligations under the Bank Documents and the Project Documents to which it is a party.] [Note:
include either this statement or paragraph (c) above]

The specimen signatures appearing below are those of the person(s) authorised to execute the
Master Lease Agreement, the Intercreditor Deed and to request and accept Leases under the MLA and
sign other notices for the Company.

	 	 	 	 	 	 	 	 	 
	 

	 	Authorised Signatory
	 	 	 	Specimen Signature	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 

	 	 	 	 

	 	 
	 

	 	 

	 	 	 	 

	 	 
	 

	 	 

	 	 	 	 

	 	 

The Company is solvent. The corporate authorisations are in full force and effect and the
Company is not prevented by the Companies Act 1997 (PNG) from entering into and performing any
agreement or security relating to the Bank Documents and the Project Documents to which it is a
party.

Dated this      day of           2007

Secretary/Director

Print Name

35

 

Morobe Consolidated Goldfields Limited — Master Lease Agreement

SCHEDULE 4B

FORM OF VERIFICATION CERTIFICATE FOR HGMC and HGM

	 	 	 
	TO:

	 	Paul Crimmins
	 
	 	 
	 

	 	Head of Relationship Banking
	 
	 	 
	 

	 	Westpac Bank PNG Limited

HIDDEN VALLEY GOLD PROJECT GUARANTEE

I am a [secretary/director] of [Harmony Gold Mining Company Limited/HGM (Isle of Man)
(Proprietary) Limited] (company number/ABN [*]) (the Company).

Attached are true, complete and up-to-date copies of the following:

	(a)	 	[An extract of minutes of a meeting of directors of the Company approving the decision of
Morobe Consolidated Goldfields Limited to construct the Project.] [Note: for HGMC only]
	 
	(b)	 	An extract of minutes of a meeting of directors of the Company authorising the execution of the
Intercreditor Deed;
	 
	(d)	 	[Any corporate authorisations and consents necessary for the Company to execute and perform
its obligations under the Bank Documents and the Project Documents to which it is a party.]

[No corporate authorisations or consents are required for the Company to execute and perform its
obligations under the Bank Documents and the Project Documents to which it is a party.] [Note:
include either this statement or paragraph (c) above]

The Company is solvent. The corporate authorisations are in full force and effect and the Company
is not prevented by any of the Corporations Act 2001 (Cth) or the Companies Act 1997 (PNG) or any
analogous law in the jurisdiction of incorporation of the Company from entering into and
performing any agreement or security relating to the Bank Documents and Project Documents to which
it is a party.

Dated this            day of                     2007

Secretary/Director

Print Name

36

 

Morobe Consolidated Goldfields Limited — Master Lease Agreement

SCHEDULE 5

FORM OF FLOATING RATE LEASE AGREEMENT

[Date]

[*]

Morobe Consolidated Goldfields Limited (the Lessee)

Dear [*]

LEASE UNDER MASTER LEASE AGREEMENT DATED

At the Lessee’s request Westpac Bank PNG Limited (Westpac) has agreed to acquire the items
described in the Details Schedule below (the Equipment) which are manufactured or supplied
directly or indirectly by the manufacturer or supplier named in the Details Schedule.

Westpac agrees to lease the Equipment to the Lessee on the terms of this Agreement. The rate and
period of the lease are set out in the Details Schedule below.

This Lease is executed in the place named in the Details Schedule.

Please sign and return a copy of this letter by [date]. By doing so, the Lessee confirms that the
information in the following Details Schedule is correct and that it is not in breach of any of the
terms of the Master Lease Agreement between the Lessee and Westpac dated [*] 2007 (the Master Lease
Agreement).

DETAILS SCHEDULE

	 	 	 	 	 
	1.

	 	Date of execution of this Lease.
	 	[*]
	 
	 	 	 	 
	2.

	 	Place of execution of this Lease.
	 	[*]
	 
	 	 	 	 
	3.

	 	Cost of Equipment.
	 	[*]
	 
	 	 	 	 
	4.

	 	Purchase Date.
	 	[*]
	 
	 	 	 	 
	5.

	 	Order Date.
	 	[*]
	 
	 	 	 	 
	6.

	 	Invoice No./ Date (attach copy).
	 	[*]
	 
	 	 	 	 
	7.

	 	Commencement date of this Lease.
	 	[To be the date of payment of the Order Instalment]
	 
	 	 	 	 
	8.

	 	Expiry date.
	 	[31 October 2011]
	 
	 	 	 	 
	9.

	 	Residual Value of the Equipment
payable at termination of this Lease.
	 	US$1
	 
	 	 	 	 
	10.

	 	Description of Equipment
	 	[*]

37

 

Morobe Consolidated Goldfields Limited —
Master Lease Agreement

DETAILS SCHEDULE

	 	•	 	General Description of Equipment
	 
	 	•	 	Asset ID/ Identification
of Equipment
	 
	 	•	 	Lessee’s internal code (if any)

	 	 	 
	11.     Base Rate

	 	[Interim Interest Instalments - 30-day US-Libor
cash rate]
	 
	 	 
	 

	 	[Term Instalments - 90-day US-Libor cash rate]
	 
	 	 
	12.     Rent
Instalments (subject
to adjustment)

	 	[To include:

(a) - monthly Interim Interest Instalments
(calculated daily for the period ending on 15th of each month (or, for the last
Interim Interest Instalment, the Delivery Date)
using the Base Rate plus the Margin in respect of
the balance of each Lease payable from the
drawdown date until the Delivery Date).
	 
	 	 
	 

	 	Interim Interest Instalments are [calculated in
advance and payable in arrears] on each Interim
Instalment Date;
	 
	 	 
	 

	 	(b) - Term Instalment from the Delivery Date to
the first Term Instalment Date calculated as the
Funded Amount multiplied by the Base Rate plus
the Margin on the Delivery Date multiplied by the
number of days from the Delivery Date to the
first Term Instalment Date.
	 
	 	 
	 

	 	Term Instalments under this paragraph (b) are
payable in arrears on the first Term Instalment
Date; and
	 
	 	 
	 

	 	(c) - Term Instalments from the first Term
Instalment Date until maturity of the Lease
(calculated for each individual Lease to amortise
the Funded Amount to the Residual Value at the
Base Rate plus the Margin over the term of the
Lease). The first Term Instalment under this
paragraph will be determined using the Base Rate
applying on the Delivery Date. Subsequent Term
Instalments will be calculated using the Base
Rate applying as at the previous Term Instalment
Date.
	 
	 	 
	 

	 	Term Instalments under this paragraph are payable
quarterly in advance commencing from the first
Term Instalment Date until maturity of the
relevant individual Lease.

38

 

Morobe Consolidated Goldfields Limited — Master Lease Agreement

DETAILS SCHEDULE

	 	 	 	 	 
	13.

	 	Rent Instalment Dates.
	 	In respect of Interim
Interest Instalments,
the 15th of each month
and the Delivery Date
(each an Interim
Instalment Date).
	 
	 	 	 	 
	 

	 	 	 	In respect of Term
Instalments, each 1 5
March, 15 June, 1 5
September and 1 5
December after the
Delivery Date (each a
Term Instalment Date).
	 
	 	 	 	 
	14.

	 	Name of manufacturer or supplier of
Equipment.
	 	[*]
	 
	 	 	 	 
	15.

	 	Location of Equipment/ Premises.
	 	[*]
	 
	 	 	 	 
	16.

	 	Method to be used when calculating
	 	[*]% p.a.
	Casualty and Termination Value:	 	 
	 
	 	 	 	 
	 

	 	The present value at the date of
termination of:	 	 
	 
	 	 	 	 
	 

	 	(a) the Residual Value of the
Equipment; plus	 	 
	 
	 	 	 	 
	 

	 	(b) all Rent Instalments that would
have been payable during the period of
this Lease but for the termination less
all Rent Instalments paid up to the date
of termination. The present value will
be as determined by Westpac by
applying a discount rate of:	 	 

Schedule of Lease Terms

The Schedule of Lease Terms attached to and incorporated in the Master Lease Agreement dated
[date] apply to this Lease as if set out in full and as if a reference to this Lease in that
schedule was a reference to this Lease.

Signed for WESTPAC BANK PNG LIMITED by its attorney [under the authority of a [registered*] power
of attorney dated].

	 	 	 
	 

(sign here)

	 	 
	I have no notice of the revocation of the power of attorney.
	 	 
	 
	 	 
	Name:
	 	 
	Attorney
	 	 

39

 

Morobe Consolidated Goldfields Limited — Master Lease Agreement

Accepted and agreed by MOROBE CONSOLIDATED GOLDFIELDS LIMITED

	 	 	 	 	 	 	 
	 

Authorised Signatory

	 	 	 	 

Print Name
	 	 
	(as per Lease Schedule 4A — Form of Verification Certificate)
	 	 	 	 	 	 

40

 

Morobe Consolidated Goldfields Limited — Master Lease Agreement

SCHEDULE 6

Form of Drawdown Notice

	 	 	 
	TO:

	 	Paul Crimmins
	 
	 	 
	 

	 	Head of Relationship Banking
	 
	 	 
	 

	 	Westpac Bank PNG Limited

[*] — Drawdown Notice No [*]

This is an irrevocable notice under clause 2.2 of the Master Lease Agreement dated [*] 2007
(the Master Lease Agreement).

	(1)	 	We wish to draw under the Master Lease Agreement on [*] (the Drawdown Date).

Note: Date is to be a Business Day.

	(2)	 	The total principal amount to be drawn is US$[*].

Note: Amount to comply with the limits in clause 2.2.

	(3)	 	Particulars of the drawdown are as follows:
	 
	 	 	[Shipping Instalment/PNGP]
	 
	(4)	 	Please remit the proceeds to account number [*] at [*].
	 
	(5)	 	The proceeds of the drawdown will be used to purchase the following item(s) of Equipment:
	 
	 	 	[*]
	 
	(6)	 	This notice is issued in connection with Lease [*] dated [*].
	 
	(7)	 	The expected Delivery Date is [*].
	 
	(8)	 	We represent and warrant to each Indemnified Party on behalf of the Lessee as follows:

	 	(a)	 	Except as disclosed in paragraph (c) the representations and warranties in the
Master
Lease Agreement are true as though they had been made at the date of this
Drawdown Notice and the Drawdown Date specified above in respect of the facts and
circumstances then subsisting.
	 
	 	(b)	 	Except as disclosed in paragraph (c) no Event of Default or Potential Event of
Default subsists or will result from the drawing.
	 
	 	(c)	 	Details of the exceptions to paragraphs (a) and (b) are as follows: [*], and we
[have taken/propose] the following remedial action [*].
	 
	 	(d)	 	The relevant item of Equipment is:

	 	•	 	new, depreciable earthmoving or road building equipment and is to be used by
the Lessee wholly within Papua New Guinea in connection with the Project;
	 
	 	•	 	covered by the duly executed Supply Contract (including the Sell Back Option)
and Maintenance Contract; and
	 
	 	•	 	covered by the PRI Policy.

	 	(e)	 	The proposed maintenance programmes and the Maintenance Contract are sufficient
to ensure that the relevant item of Equipment will comply with the
requirements of the Sell Back Option.
	 
	 	(f)	 	All necessary Authorisations in respect of the relevant item of Equipment have
been obtained.

41

 

Morobe
Consolidated Goldfields Limited — Master Lease Agreement

	 	 	Note: Inclusion of a statement under paragraph (c) will not prejudice the conditions
precedent in the agreement.
	 
	(9)	 	[We certify that the Project is fully funded to the date of this Drawdown Notice and the
Cost to Complete the Project as set out below is less than the Available Funding for the
Project as set out below:
	 
	 	 	Cost to Complete according to Project construction budget dated [*] (being the most recent
and current update of the budget)

	 	 	 
	Amount of construction costs, operating costs and development costs payable
but unpaid, or likely to be payable or incurred to achieve completion of the
Project:

	 	 
	 
	 	 
	The amount of debt service already payable but unpaid or likely to be payable
or incurred under the Project Documents or the Bank Documents up to and
including the estimated completion date of the Project:
	 	 
	 
	 	 
	The amount of any other costs including any liquidated damages payable to any
person already payable but unpaid or likely to be payable or incurred up to
and including the estimated completion date of the Project:
	 	 
	 
	 	 
	Total Cost to Complete:
	 	 

Available Funding

	 	 	 
	Balance in bank accounts:

	 	 
	 
	 	 
	Available commitment under Project Loan Agreement:
	 	 
	 
	 	 
	Other amounts which have been committed to be provided (but not yet provided)
to the Lessee:
	 	 
	 
	 	 
	Other (specify)
	 	 
	 
	 	 
	Total Available Funding:
	 	 

[Note: to be deleted if adequate cash security has been provided to Westpac under clause 1.2.2]

	 	 	 
	[(10)

	 	The following Project Document(s) ha[s/ve] been amended or replaced:
	 
	 	 
	 

	 	[*]
	 
	 	 
	 

	 	We attach a true complete copy of [that/those] Project Document(s). ]

Definitions in the Master Lease Agreement apply when used in this Drawdown Notice.

On behalf of Morobe Consolidated Goldmines Limited

By:

Note: 2 directors are required to sign

Dated [*]

42

 

Morobe Consolidated Goldfields Limited — Master Lease Agreement

SCHEDULE 7

Form of Deed of Assignment

43

 

Morobe Consolidated Goldfields Limited — Master
Lease Agreement

SCHEDULE 8

Form of Lease Request

	 	 	 
	TO:

	 	Paul Crimmins
	 
	 	 
	 

	 	Head of Relationship Banking
	 
	 	 
	 

	 	Westpac Bank PNG Limited

[*] — Lease Request

This is an irrevocable notice under clause 1.2.2 of the Master
Lease Agreement dated [*] 2007 (the
Master Lease Agreement).

	(1)	 	We hereby request that Westpac prepare a Lease in respect of the items of Equipment
described in this Lease Request.
	 
	(2)	 	We hereby enclose the Order Instalment in respect of the said items of Equipment in the
amount of US$[*].
	 
	(3)	 	The Lease shall apply to, and the Order Instalment will be used to purchase, the following
item(s) of Equipment:
	 
	 	 	[*]
	 
	(4)	 	The:

	 	(a)	 	Order Date is [*]; and
	 
	 	(b)	 	expected Delivery Date is [*].

	(5)	 	We represent and warrant to each Indemnified Party on behalf of the Lessee as follows.

	 	(a)	 	Except as disclosed in paragraph (c) the representations and warranties in the
Master Lease Agreement are true as though they had been made at the date of
this Lease Request in respect of the facts and circumstances then subsisting.
	 
	 	(b)	 	Except as disclosed in paragraph (c) no Event of Default or Potential Event of
Default subsists or will result from the issuance of the Lease.
	 
	 	(c)	 	Details of the exceptions to paragraphs (a) and (b) are as follows: [*], and we
[have taken/propose] the following remedial action [*].
	 
	 	(d)	 	The relevant item of Equipment is:

	 	•	 	new, depreciable earthmoving or road building equipment and is to be used by
the Lessee wholly within Papua New Guinea in connection with the Project;
	 
	 	•	 	covered by the duly executed Supply Contract (including the Sell Back Option)
and Maintenance Contract; and
	 
	 	•	 	covered by the PRI Policy.

	 	(e)	 	The proposed maintenance programmes and the Maintenance Contract are sufficient
to ensure that the relevant item of Equipment will comply with the requirements of
the Sell Back Option.
	 
	 	(f)	 	All necessary Authorisations in respect of the relevant item of Equipment have
been obtained.

	 	 	Note: Inclusion of a statement under paragraph (c) will not prejudice the conditions
precedent in the agreement.

	(6)	 	We certify that the Project is fully funded to the date of this Lease Request and the Cost to
Complete the Project as set out below is less than the Available Funding for the Project as
set

44

 

Morobe Consolidated Goldfields Limited — Master Lease Agreement

		 	out below:
	 
	 	 	Cost to Complete according to Project construction budget dated [*] (being the most recent
and current update of the budget)

	 	 	 
	Amount of construction costs, operating costs and development costs payable
but unpaid, or likely to be payable or incurred to achieve completion of the
Project:

	 	 
	 
	 	 
	The amount of debt service already payable but unpaid or likely to be payable
or incurred under the Project Documents or the Bank Documents up to and
including the estimated completion date of the Project:
	 	 
	 
	 	 
	The amount of any other costs including any liquidated damages payable to any
person already payable but unpaid or likely to be payable or incurred up to
and including the estimated completion date of the Project:
	 	 
	 
	 	 
	Total Cost to Complete:
	 	 

Available Funding

	 	 	 
	Balance in bank accounts:

	 	 
	 
	 	 
	Available commitment under Project Loan Agreement:
	 	 
	 
	 	 
	Other amounts which have been committed to be provided (but not yet
provided) to the Lessee:
	 	 
	 
	 	 
	Other (specify)
	 	 
	 
	 	 
	Total Available Funding:
	 	 

[Note: to be deleted if adequate cash security has been provided to Westpac under clause 1.2.2]

	(7)	 	The following Project Document(s) ha[s/ve] been amended or replaced:
	 
	 	 	[*]
	 
	 	 	We attach a true complete copy of [that/those] Project Document(s). ]

Definitions in the Master Lease Agreement apply when used in this Lease Request.

On behalf of Morobe Consolidated Goldmines Limited

By:

Note: 2 directors are required to sign

Dated [*]

45

 

Morobe Consolidated Goldfields Limited — Master Lease Agreement

SCHEDULE 9

Form of Project Loan Agreement

46

 

 

PROJECT LOAN FACILITY AGREEMENT

between

HGM (ISLE OF MAN) (PTY) LIMITED

and

MOROBE CONSOLIDATED GOLDFIELDS LIMITED

 

 

Page 2

	 	 	 	 	 	 	 	 	 
	 	1	 	 	INTERPRETATION
	 	 	4	 
	 	2	 	 	INTRODUCTION
	 	 	28	 
	 	3	 	 	SUSPENSIVE CONDITIONS
	 	 	29	 
	 	4	 	 	FACILITY
	 	 	32	 
	 	5	 	 	INTEREST
	 	 	34	 
	 	6	 	 	REPAYMENTS
	 	 	35	 
	 	7	 	 	PAYMENT COVENANTS
	 	 	35	 
	 	8	 	 	AUDITED FINANCIAL STATEMENTS AND MANAGEMENT
ACCOUNTS
	 	 	37	 
	 	9	 	 	PROJECT BUDGETS
	 	 	37	 
	 	10	 	 	CURRENT MODEL
	 	 	38	 
	 	11	 	 	SUBMISSIONS TO THE EXPERT
	 	 	39	 
	 	12	 	 	CONSTRUCTION PROGRESS REPORTS
	 	 	41	 
	 	13	 	 	FAILURE TO DELIVER
	 	 	41	 
	 	14	 	 	VOLUNTARY PREPAYMENT
	 	 	41	 
	 	15	 	 	MANDATORY PREPAYMENT
	 	 	42	 
	 	16	 	 	TECHNICAL COMPLETION TEST
	 	 	42	 
	 	17	 	 	INSURANCE
	 	 	43	 
	 	18	 	 	POSITIVE UNDERTAKINGS
	 	 	43	 
	 	19	 	 	NEGATIVE UNDERTAKINGS
	 	 	49	 
	 	20	 	 	REPRESENTATIONS AND WARRANTIES
	 	 	53	 
	 	21	 	 	SET UP COSTS
	 	 	59	 
	 	22	 	 	CHANGE IN LAW
	 	 	60	 
	 	23	 	 	EVENTS OF DEFAULT
	 	 	61	 
	 	24	 	 	TERMINATION
	 	 	69	 
	 	25	 	 	APPLICATION OF PAYMENTS AFTER AN EVENT OF
DEFAULT AND NON-CANCELLATION
	 	 	70	 
	 	26	 	 	ARBITRATION
	 	 	71	 
	 	27	 	 	CONFLICTS
	 	 	72	 
	 	28	 	 	ALLOCATION OF PAYMENTS
	 	 	72	 
	 	29	 	 	INDEMNITY
	 	 	72	 
	 	30	 	 	ILLEGALITY
	 	 	73	 
	 	31	 	 	RENEGOTIATION
	 	 	73	 
	 	32	 	 	SUPPORT CLAUSE
	 	 	73	 

 

Page 3

	 	 	 	 	 	 	 	 	 
	 	33	 	 	CURRENCY INDEMNITY
	 	 	73	 
	 	34	 	 	NOTICES
	 	 	74	 
	 	35	 	 	CESSION AND ASSIGNMENT OF THE AGREEMENT
	 	 	75	 
	 	36	 	 	CONFIDENTIALITY
	 	 	76	 
	 	37	 	 	SEVERABILITY
	 	 	77	 
	 	38	 	 	GENERAL
	 	 	77	 
	 	39	 	 	APPLICABLE LAW AND JURISDICTION
	 	 	78	 
	 	40	 	 	COSTS, STAMP DUTY AND FEES
	 	 	79	 

ANNEXES

	 	 	 
	Annexe “A”

	 	ADVANCES AND INSTALMENTS
	Annexe “B”

	 	DRAW DOWN REQUEST
	Annexe “C”

	 	PRINTOUT OF BASE CASE FINANCIAL MODEL AND CURRENT MODEL
	Annexe “D”

	 	SPECIMEN RESOLUTION
	Annexe “E”

	 	ACCEPTANCE CERTIFICATE
	Annexe “F”

	 	PERIODIC REPORTS — CONSTRUCTION PERIOD
	Annexe “G”

	 	PERIODIC OPERATIONAL REPORTS
	Annexe “H”

	 	TECHNICAL COMPLETION TEST REQUIREMENTS
	Annexe “I”

	 	HIDDEN VALLEY TENEMENTS
	Annexe “J”

	 	SECURITY DOCUMENTS

 

Page 4

WHEREBY THE PARTIES AGREE AS FOLLOWS :

	1	 	INTERPRETATION

	1.1	 	In this Agreement -

	 	1.1.1	 	clause headings are for convenience only and are not to
be used in its interpretation;
	 
	 	1.1.2	 	an expression which denotes -

	1.1.2.1	 	any gender includes the other genders;
	 
	1.1.2.2	 	a natural person includes a juristic person and vice versa; and
	 
	1.1.2.3	 	the singular includes the plural and vice versa.

	1.2	 	In this Agreement, unless the context indicates a contrary intention, the
following words and expressions bear the meanings assigned to them
and cognate expressions bear corresponding meanings -

	 	1.2.1	 	“Advance” means the principal amount or amounts up to
an aggregate equal to the Facility Amount to be advanced
by the Lender to the Borrower under the Facility;
	 
	 	1.2.2	 	“Advance Date” means the business day upon which
any Advance is made or is to be made;
	 
	 	1.2.3	 	“Advisers” means the Lender’s Technical Adviser,
Insurance Adviser and Legal Adviser, or as the context
may require, any of them;
	 
	 	1.2.4	 	“Agreement” means this agreement and includes all
annexes to this Agreement which annexes shall form an
integral part of this Agreement;
	 
	 	1.2.5	 	“Applicable Law” means the common law and statutory
law applicable in the Republic of South Africa, the Isle of

 

Page 5

	 	 	 	Man and/or the Territory including any present or future constitution,
decree, judgment, legislation, measure, requirement, order, ordinance,
regulation, statute, treaty, directive, rule, guideline, practice,
concession, or request issued by any relevant Authority which is applicable
to the Project, and any of the present or future parties to the Project
Documents or the Finance Documents;
	 
	 	1.2.6	 	“Applicable Margin” means in respect of each Advance
the applicable interest rate margin set out in item 1 of
Annexe “A”, as amended from time to time;
	 
	 	1.2.7	 	“Approved Project Budget” means a Project Budget
approved by the Lender pursuant to clause 9;
	 
	 	1.2.8	 	“AUD” means the lawful currency of Australia, from time
to time;
	 
	 	1.2.9	 	“Audited Financial Statements” means the audited
financial statements of the Borrower for each Financial
Year;
	 
	 	1.2.10	 	“Auditors” means PricewaterhouseCoopers, being the
Borrower’s auditors or such other firm of public
accountants as may be approved by the Lender from time
to time;
	 
	 	1.2.11	 	“Authorisation” includes any authorisation, condition,
consent, approval, resolution, licence, registration,
declaration, filing, notarisation, certificate, permit,
permission, registration or exemption from, by or with any
Authority, whether given or withheld by express action or
deemed given or withheld by failure to act within any
specified time period, and all corporate, creditor and
shareholder approvals and consents;
	 
	 	1.2.12	 	“Authority” means any government, governmental,
administrative, fiscal, monetary, central bank, judicial,

 

Page 6

	 	 	 	regulatory, self-regulatory or government owned or controlled body,
department, commission, authority, tribunal, agency or entity;
	 
	 	1.2.13	 	“Availability Period” means the period commencing on
the business day following the Commencement Date and
ending on the business day prior to the First Repayment
Date;
	 
	 	1.2.14	 	“Available Facility” means the Facility Amount less -

	1.2.14.1	 	the amount of any Facility Outstandings; and
	 
	1.2.14.2	 	any amounts of any nature whatsoever (including, without
limitation, any fees) which are payable by the Borrower to the
Lender pursuant to this Agreement to the extent to which such
amounts have not been paid;
	 
	1.2.14.3	 	in relation to any proposed Draw Down Request, the amount of
any Advances that are due to be made on or before the proposed
Advance Date;

	 	1.2.15	 	“Base Case Financial Model” means the financial model
in respect of the Project, approved by the Lender and the
Borrower and saved in ‘read only’ format on a computer
disk to be lodged with the Lender within a reasonable time
after the Commencement Date;
	 
	 	1.2.16	 	“Borrower” means Morobe Consolidated Goldfields
Limited, Registration No. 1-12047, a limited liability
company duly incorporated in accordance with the laws of
Papua New Guinea;
	 
	 	1.2.17	 	“Borrower Revenues” means in relation to any period,
all amounts received or to be received by the Borrower
during such period by way of -

	1.2.17.1	 	proceeds of sales of gold, silver and/or other metals and/or
minerals (including gold bearing ore and dore) derived from the

 

Page 7

	 	 	Project, including the proceeds from the closing out, settling or
unwinding of any derivative or hedging instruments entered into in
relation to the Project;
	 
	1.2.17.2	 	refunds of Taxes, including goods and services tax;
	 
	1.2.17.3	 	value, whether in the form of money, securities, property or
otherwise, paid or payable by any Authority for the appropriation,
confiscation, expropriation or nationalisation of ownership or
control of the Borrower or the Project or any portion thereof;
	 
	1.2.17.4	 	Insurance Proceeds;
	 
	1.2.17.5	 	proceeds of the sale or disposal of any assets of the Borrower;
	 
	1.2.17.6	 	all payments and liquidated damages recovered by the Borrower
from any contractors engaged in the Project (whether or not as
penalties for non-performance or late performance by the said
contractor);
	 
	1.2.17.7	 	any other amount payable to the Borrower;
	 
	1.2.17.8	 	other amounts of whatsoever nature which are certified by the
Auditors to be income generated out of the Project; and
	 
	1.2.17.9	 	other amounts agreed between the Lender and the Borrower to
constitute Borrower Revenues,

provided that for the purpose of calculating Borrower Revenues in any period -

	1.2.17.10	 	no account shall be taken of Advances; and
	 
	1.2.17.11	 	the amount of any penalties payable or to be paid (if any) by the
Borrower pursuant to any Project Documents in such period shall
be deducted;

	 	1.2.18	 	“Capital Costs” means costs and expenses incurred by the
Borrower in carrying out the Project, including -

 

Page 8

	1.2.18.1	 	amounts payable under a Construction Contract;
	 
	1.2.18.2	 	purchase of plant and equipment for construction and mining
described in the Current Model (to the extent not paid under a
Construction Contract);
	 
	1.2.18.3	 	reasonable fees and expenses of professional advisers engaged
by the Borrower in relation to the Project;
	 
	1.2.18.4	 	costs and expenses in obtaining or renewing any Authorisation, or
maintaining or preserving any rights necessary for the Project;
	 
	1.2.18.5	 	Insurance premiums in respect of the Project (to the extent not
paid under a Construction Contract);
	 
	1.2.18.6	 	Taxes in respect of the Project;
	 
	1.2.18.7	 	agreed rehabilitation and/or closure costs and agreed mining
exploration expenditure;
	 
	1.2.18.8	 	other costs and expenses designated by agreement between the
Lender and the Borrower as Capital Costs;
	 
	1.2.18.9	 	landowner payments and other compensation payments made
prior to the Commencement Date and described in the Current
Model;

	 	1.2.19	 	“Change in Law” means any implementation,
introduction, abolition, withdrawal or variation of any Applicable Law
or any directive, ruling, request, notice, announcement (including but
not limited to any budget speech), guideline by any Authority (whether
or not having the force of law) or any change in any interpretation, or
the introduction or making of any new or further interpretation, or
compliance with any new or different request or direction (in either
case whether or not having the force of law) from any Authority in the
Republic of South Africa, the Isle of Man or the Territory;

 

Page 9

	 	1.2.20	 	“Commencement Date” means the date upon which all
of the Suspensive Conditions have been fulfilled or
waived;
	 
	 	1.2.21	 	“Commissioning Date” means a date occurring not later
than 24 (twenty four) months after the Commencement
Date (or such later date as the Parties may agree in
writing), being the date upon which all the Project Works
are to have been executed and installed to the
satisfaction of the Lender in accordance with the Project
Budget, and the Project Works have been successfully
commissioned to enable the criteria set out in the Project
Budget (and specifically the levels of processed ore,
recovered gold, silver, other metals and/or minerals and
total costs) to be met by the Project on a sustained basis;
	 
	 	1.2.22	 	“Construction Budget” means at any time the most
recent construction budget prepared by the Borrower in
respect of the Project and delivered to the Lender by the
Borrower in accordance with clause 9;
	 
	 	1.2.23	 	“Construction Contracts” means the contract(s) for the
construction, commissioning, testing and trial operation of
the Project Works to be concluded between the Borrower
and the respective contractors and/or suppliers from time
to time during the Term;
	 
	 	1.2.24	 	“Current Model” means the Base Case Financial Model,
as updated to take into account the actual and projected
performance of the Borrower from time to time;
	 
	 	1.2.25	 	“Discharge Date” means the date on which the Borrower
has unconditionally and irrevocably paid to the Lender all
amounts, whether in respect of interest, principal or
otherwise, which may become payable by the Borrower to
the Lender arising out of or in connection with the Facility;

 

Page 10

	 	1.2.26	 	“Dispose” means any sale, transfer, cession,
assignment, lease, alienation, donation, renunciation,
surrender, waiver, relinquishment, exchange or other
disposal of any nature whatsoever and “Disposal” has a
corresponding meaning;
	 
	 	1.2.27	 	“Distribution” means any payment by way of interest,
principal, dividend, capital, fee, royalty or other distribution
or payment;
	 
	 	1.2.28	 	“Draw Down Request” means a notice substantially in
the form set out in annexe “B”;
	 
	 	1.2.29	 	“EIA” means the Project Environmental Impact
Assessment Report dated February 2004, prepared by
Enesar Consulting Pty Ltd on behalf of the Borrower, as
amended or supplemented in accordance with
Environmental Laws;
	 
	 	1.2.30	 	“Encumbrance” means any mortgage, pledge, lien, deed
of cession, assignment, hypothecation or security interest
or any other agreement or arrangement having the effect
of conferring security whether by contract or operation of
Applicable Law, including any arrangement under which
money or claims to, or the benefit of, a bank or other
account may be applied, set-off or made subject to a
combination of accounts so as to effect discharge of any
sum owed or payable to any person;
	 
	 	1.2.31	 	“Environmental Approval” means Authorisations
required under Environmental Laws in connection with the
Project;
	 
	 	1.2.32	 	“Environmental Laws” means all Applicable Law
concerning the environment which must be complied with
in respect of the Project, including the Papua New Guinea
Environmental Act of 2000;

 

Page 11

	 	1.2.33	 	“Environmental Plan” means the Borrower’s
environmental plan prepared in a manner consistent with
the requirements set out in the ElA to complete the
Project and to bring the Project into compliance with all
Environmental Laws;
	 
	 	1.2.34	 	“Event of Default” means any one or more of the events
or circumstances described as such in clause 23;
	 
	 	1.2.35	 	“Exchange Rate” means the spot exchange offer-rates
quoted by the Lender’s designated bankers (being the
rate in the applicable currency at which such bank will sell
USD for immediate delivery) at 11h00 on the relevant
business day;
	 
	 	1.2.36	 	“Expert” means an expert appointed in accordance with
clause 11;
	 
	 	1.2.37	 	“Facility” means the project loan facility made available
by the Lender to the Borrower in accordance with the
terms and conditions set out in this Agreement;
	 
	 	1.2.38	 	“Facility Amount” means a maximum amount of
USD257,000,000 (two hundred and fifty seven million
United States Dollars), or such other amount as may be
agreed between the Parties from time to time, inclusive of
all interest capitalized to the Facility during the Availability
Period;
	 
	 	1.2.39	 	“Facility Outstandings” means the aggregate of -

	1.2.39.1	 	all Advances; and
	 
	1.2.39.2	 	all interest on Advances;
	 
	 	 	for the time being outstanding hereunder;

	 	1.2.40	 	“Facility Purpose” means, subject to the further terms of
this Agreement, to fund the Project Costs;

 

Page 12

	 	1.2.41	 	“Final Maturity Date” means at any time, the date upon
which it is scheduled in terms of item 3 of annexe “A”,
that the Facility shall have been fully repaid, or such other
date as may be agreed between the Parties from time to
time;
	 
	 	1.2.42	 	“Finance Documents” means -

	1.2.42.1	 	this Agreement;
	 
	1.2.42.2	 	the Security Documents;
	 
	1.2.42.3	 	printed versions of the Base Case Financial Model and the Current
Model as at the Signature Date, substantially in the form of annexe
“C”; and
	 
	1.2.42.4	 	any other document designated as such by the Lender;

	 	1.2.43	 	“Financial Indebtedness” means any indebtedness in
respect of -

	1.2.43.1	 	monies borrowed from any third parties, including banks and other
financial institutions;
	 
	1.2.43.2	 	any debenture, bond, note, loan stock or other security but
excluding any bill or note drawn, accepted or issued in the ordinary
course of business;
	 
	1.2.43.3	 	any acceptance credit;
	 
	1.2.43.4	 	receivables sold or discounted (otherwise than on a non-recourse
basis);
	 
	1.2.43.5	 	the acquisition cost of any asset to the extent payable after the
time of acquisition or possession where the deferred payment is
arranged primarily as a method of raising finance or financing the
acquisition of that asset;
	 
	1.2.43.6	 	any lease entered into primarily as a method of raising finance or
financing the acquisition of the asset leased;

 

Page 13

	1.2.43.7	 	any currency swap or interest swap, cap or collar arrangements or
any other derivative or hedging instrument;
	 
	1.2.43.8	 	any amount raised under any other transaction having the
commercial effect of financial indebtedness or raising of money; or
	 
	1.2.43.9	 	any guarantee, indemnity or similar assurance against financial
loss of any person, but excluding -
	 
	1.2.43.9.1	 	performance or similar guarantees of a non-financial nature
provided they are/were given in the ordinary course of business;
and
	 
	1.2.43.9.2	 	performance and environmental rehabilitation bonds of a
financial nature; and
	 
	1.2.43.9.3	 	financial guarantees not exceeding USD5,000,000 (five million
United States Dollars) in the aggregate in respect of any
Financial Year,

but always excluding -

	1.2.43.10	 	any indebtedness in respect of trade creditors and Shareholder
Claims in amounts consistent with the Base Case Financial Model;
and
	 
	1.2.43.11	 	Facility Outstandings and indebtedness permitted in terms of this
Agreement, including all fees and charges due by the Borrower in
accordance with the terms and conditions of this Agreement;

	 	1.2.44	 	“Financial Year” means the financial year of the
Borrower, ending on 30 June in each year;
	 
	 	1.2.45	 	“First Repayment Date” means a date falling 9 (nine)
months after the Commissioning Date;
	 
	 	1.2.46	 	“Force Majeure” means circumstances or an event
beyond the reasonable control of a Party which, despite
the exercise of diligent efforts, the relevant Party was

 

Page 14

unable to prevent, limit or minimize, including (without limitation) -

	1.2.46.1	 	any act of God;
	 
	1.2.46.2	 	war, (whether declared or not), armed conflict, hostile act of public
enemy, act of terrorism, embargo, military operations, blockade,
insurrection or interference, sabotage, revolution, riot, civil
commotion;
	 
	1.2.46.3	 	labour disturbance or strikes (provided that “strike” shall not
include any action affecting tradesmen, workmen or other persons
which continues for less than 5 (five) consecutive days and shall
exclude any strike by or affecting employees of a Party as a result
of any unlawful act or omission of such Party);

	1.2.46.4	 	cave in, road access failure, road wash-away, wall failure,
explosion, breakage or accident to machinery or equipment or
power transmission lines or other facility, inability to obtain or delay
in obtaining essential equipment, materials or transport or any
other such cause;
	 
	1.2.46.5	 	flood, storm, fire, earthquake, lightning, cyclone, tidal wave,
landslide and other natural disaster; or
	 
	1.2.46.6	 	any action, demand, order, restraint, restriction, requirement,
prevention, frustration or hindrance, regulation or law by or of any
court or Authority;
	 
	1.2.46.7	 	landowner blockade, insurrection or interference;

	 	1.2.47	 	“Group” means Harmony Gold Mining Company Limited,
Registration No. 1950/038232/06, and its subsidiaries;
	 
	 	1.2.48	 	“Harmony Netherlands” means Harmony Gold
(Netherlands) B.V., a limited liability company duly
incorporated in accordance with the laws of the
Netherlands;

 

Page 15

	 	1.2.49	 	“HGPS” means Harmony Gold (PNG Services) Pty
Limited, ACN 083 828 853, a limited liability private
company duly incorporated in accordance with the laws of
Australia;
	 
	 	1.2.50	 	“Hidden Valley Tenements” means -

	1.2.50.1	 	the mining tenements held by the Borrower in the Territory
described in the schedule of tenements attached hereto marked
annexe “I”;
	 
	1.2.50.2	 	any other mining tenement owned or controlled by the Borrower at
any time which the Lender (acting reasonably) determines is or will
be required for a key or integral part of operations conducted or to
be conducted by the Borrower on the tenements described in
clause 1.2.50.1 above,

together with any extensions, renewals, consolidations, replacements or amendments
to or grants of those tenements and all rights associated with such tenements;

	 	1.2.51	 	“IFRS” means International Financial Reporting Standards;
	 
	 	1.2.52	 	“Increased Costs” means any and all additional costs to,
or reduction in the amount payable to, or a reduction in
the after Tax return achieved by the Lender, which is
attributable to the Lender entering into, performing,
maintaining or funding its obligations under any of the
Finance Documents;
	 
	 	1.2.53	 	“Instalments” means the 21 (twenty one) consecutive
quarterly instalments of capital and interest referred to in
annexe “A” in terms of which the Borrower will repay all
Facility Outstandings;
	 
	 	1.2.54	 	“Insurance” means insurance and reinsurance cover to
be obtained by the Borrower to the satisfaction of the

 

Page 16

	 	 	 	Lender over all property of the Borrower of an insurable nature and
of a character usually insured, with insurers of good repute
selected by the Borrower against such risks with such coverage
(including deductibles and exclusions) as is customary for mining
and processing projects of a similar type and scale, taking into
account the availability and the cost of such coverage and the
Facility Amount;
	 
	 	1.2.55	 	“Insurance Adviser” means Marsh Pty Limited and the
Heath Lambert Group, acting on behalf of the Lender or
such replacement insurance adviser or consultant as the
Lender may nominate in writing;
	 
	 	1.2.56	 	“Insurance Proceeds” means all proceeds and amounts
payable or paid to or on account of the Borrower in
respect of any claim relating to the Project under any
Insurances;
	 
	 	1.2.57	 	“Interest Period” means the 3 (three) month period(s) in
respect of which interest is to be calculated at the Interest
Rate, the first interest period being a broken interest
period calculated from the relevant Advance Date to the
last day of the month in which the Advance Date falls, and
each interest period thereafter commencing on the day
following the last day of the previous interest period and
terminating on the day preceding the following interest
period, provided that the last interest period in respect of
any Advance shall terminate on the Final Maturity Date;
	 
	 	1.2.58	 	“Interest Rate” means LIBOR plus the Applicable
Margin, expressed as a nominal annual compounded
monthly in arrears rate;
	 
	 	1.2.59	 	“LIBOR” means, in relation to any Advance -

	1.2.59.1	 	the applicable 90 (ninety) day Screen Rate; or

 

Page 17

	1.2.59.2	 	(if no Screen Rate is available for the currency or period of that
Advance) the rate determined by the Lender to be that quoted by leading banks
in the London inter bank market, as of 11,00am on the Rate Fixing Date for the
offering of deposits in USD and for a period comparable to the Interest Period
for that Advance;

	 	1.2.60	 	“LIBOR Rate Fixing Day” means, in relation to an
Interest Period, the day on which quotes are customarily
given in the London interbank market for deposits in USD
for delivery on the first day of that Interest Period;
provided that, in each case, if, for any Interest Period,
quotations would ordinarily be given on more than one
day, the LIBOR Rate Fixing Day shall be the last such
day;
	 
	 	1.2.61	 	“Life of Mine Plan” means the life of mine budget and
operating plan for a particular Project which is in a format
acceptable to the Lender (acting reasonably), which
complies with the requirements of this Agreement and
which -

	1.2.61.1	 	details forecast physical and financial parameters and
assumptions for the construction and operation of the Project by
the Borrower, including, ore reserves and resources, capital
expenditure schedules and funding requirements, schedules for
ore tonnes and grade and waste movement; ore haulage, ore
treatment, metallurgical recoveries and production of product,
capital costs and operating costs, exploration costs, royalties,
cashflow, taxation, governmental charges, administration costs
and account balances as required by the Lender;
	 
	1.2.61.2	 	uses the reserves and resources of the Project described in clause
1.2.61.1 above for all forecasts and projections; and
	 
	1.2.61.3	 	sets out all tenements which will be relied on to generate gold and
other metals and minerals for that Project or which will be required
to enable the Borrower to carry on a key or integral part of

 

Page 18

operations conducted or to be conducted on the Hidden Valley Tenements;

	 	1.2.62	 	“Legal Adviser” means Cliffe Dekker Inc. acting on
behalf of the Lender or such other replacement legal
adviser as the Lender may nominate in writing;
	 
	 	1.2.63	 	“Lender” means HGM (Isle Of Man) (PTY) Limited,
Registration Number 116712C;
	 
	 	1.2.64	 	“Lender’s Technical Adviser” means RSG Global Pty
Limited, or such other or additional technical adviser or
expert as the Lender may appoint in writing at the
Borrower’s cost, from time to time, for the purposes
described in this Agreement;
	 
	 	1.2.65	 	“Management Accounts” means the Borrower’s
unaudited quarterly management accounting records
containing cash flow statements and such other
information requested of the Borrower from time to time,
inter alia, to update the Current Model;
	 
	 	1.2.66	 	“Material Adverse Change” means a change in the
circumstances existing as at the Signature Date which -

	1.2.66.1	 	in the sole opinion of the Lender, may or will have the effect that -

	1.2.66.1.1	 	the Shares, Borrower Revenues, property, assets, mineral
and/or mining rights or any part of the Project or the Project Works may or
will be seized, expropriated, nationalised, requisitioned, confiscated,
withdrawn and/or cancelled in any way by any Authority (whether acting in
its own name or behalf or on behalf or in favour of any other person or
group, including any land owner group) or may or will be subject to any
other political or sovereign risk event; or

 

Page 19

	1.2.66.1.2	 	the Lender or the Borrower (on behalf of the Lender) may or will
be unable to enforce a final and binding decision obtained in any jurisdiction
against the Borrower, in any other jurisdiction; or

	1.2.66.2	 	in the reasonable opinion of the Lender, may or will have a
material adverse effect on -

	1.2.66.2.1	 	the business activities, operations, property, mineral and/or
mining rights, prospects or financial condition of the Borrower;
	 
	1.2.66.2.2	 	the ability of the Borrower or any signatory to the Project
Documents, Finance Documents or Material Contracts (as the
context requires) to perform any of its obligations under any
Project Document, Finance Document or Material Contract to
which it is a party, including the obligation to convert any
currency into USD in order to make a scheduled payment of
interest or capital and/or the denial of such conversion in an
exchange-rate category at least as favourable as the Exchange
Rate;
	 
	1.2.66.2.3	 	the legality, validity or enforceability of any Project Documents,
Finance Documents or Material Contracts or the rights or
remedies of the Lender or any signatory thereto thereunder (as
the context requires); or
	 
	1.2.66.2.4	 	the value of any property over which Security is held;

	 	1.2.67	 	“Material Contract” means a contract, not included in the
Approved Project, which will involve the Borrower
committing or expending, over the term of the contract, an
amount in excess of USD10,000,000 (ten million United
States Dollars);
	 
	 	1.2.68	 	“Operating Budget” means at any time, the most recent
operating budget prepared by the Borrower in respect of
the Project and delivered by the Borrower to the Lender
pursuant to and in accordance with clause 9;

 

Page 20

	 	1.2.69	 	“Operation and Maintenance Costs” means all
operation and maintenance costs and expenses paid in
accordance with the Approved Project Budget by the
Borrower in connection with the Project, but excluding -

	1.2.69.1	 	the payment by the Borrower of costs incurred by it in respect of
guarantees issued to any member of the Group in relation to
Permitted Encumbrances;
	 
	1.2.69.2	 	the payment by the Borrower of its share of Group insurance
costs, premiums and related charges;
	 
	1.2.69.3	 	the provision to landowners and other community groups affected
by the Project of credit and/or finance in relation to land owner
initiatives and business activities described in the Current Model or
otherwise agreed to in writing by the Lender; and
	 
	1.2.69.4	 	Capital Costs;

	 	1.2.70	 	“Party” means a party to this Agreement;
	 
	 	1.2.71	 	“Permitted Encumbrance” means -

	1.2.71.1	 	any Encumbrance existing at the Signature Date and disclosed to
the Lender in writing or reflected in the Audited Financial
Statements of the Borrower as at and for the twelve month period
ending 30 June 2006 and/or for the six month period ending
31 December 2006;
	 
	1.2.71.2	 	any liens arising by operation of law in the ordinary course of
business;
	 
	1.2.71.3	 	any Encumbrances created in the ordinary course of the trading
activities of the Borrower as a term of supply of any goods or
services to the Borrower in terms of the relevant supplier’s
standard or usual terms and conditions of sale or supply, not
exceeding USD5,000,000 (five million United States Dollars) in the
aggregate in respect of any Financial Year;

 

Page 21

	1.2.71.4	 	any Encumbrances arising as a result of deposits made to secure
the performance of tenders, bids or trade or government contracts,
to secure leases, statutory or regulatory obligations, surety or
appeal bonds, performance or other obligations of a like nature
incurred in the ordinary course of business and in respect of the
Project;
	 
	1.2.71.5	 	any Encumbrances created over any property or asset acquired in
respect of the Project after the Signature Date to secure
indebtedness incurred for the purpose of financing the purchase of
such property or asset, provided that the Encumbrance is limited to
the value of the indebtedness incurred to acquire such property or
asset as aforesaid;
	 
	1.2.71.6	 	any Encumbrances created with the prior written consent of the
Lender, including in respect of the financing of equipment used to
carry out the Project;
	 
	1.2.71.7	 	the Deed of Charge dated 17 June 1997 between Rio Tinto
Limited (“RTL”) and the Borrower securing RTL’s entitlements
under a royalty deed; and
	 
	1.2.71.8	 	the Security;

	 	1.2.72	 	“Potential Event of Default” means any event which
would, with the giving of notice, lapse of time or the
fulfilment of any other applicable requirement or any
combination thereof, if not remedied or waived, become
an Event of Default;
	 
	 	1.2.73	 	“Project” means the Hidden Valley mining project in
terms of which the Borrower shall fund, design, procure,
construct and commission a mine on its Hidden Valley
Tenements and conduct mining, mineral processing and
related operations thereon;
	 
	 	1.2.74	 	“Project Budget” means at any time, the most recent
project budget, incorporating the most recent Construction

 

Page 22

	 	 	 	Budget, Life of Mine Plan and Operating Budget, prepared by the
Borrower in a manner compatible with the Current Model and delivered
by the Borrower to the Lender pursuant to and in accordance with
clause 9;
	 
	 	1.2.75	 	“Project Costs” means in respect of any period, the
aggregate of all -

	1.2.75.1	 	Operation and Maintenance Costs;
	 
	1.2.75.2	 	Capital Costs; and
	 
	1.2.75.3	 	USD 22,500,000 to purchase the royalty over the Project;

	 	 	but excluding -

	1.2.75.4	 	principal and interest amounts and fees and costs due under this
Agreement; and
	 
	1.2.75.5	 	any Restricted Payments;

	 	1.2.76	 	“Project Documents” means the -

	1.2.76.1	 	Environmental Approvals and Environmental Plan;
	 
	1.2.76.2	 	Construction Contracts; and
	 
	1.2.76.3	 	any other document designated as such by the Lender;

	 	1.2.77	 	“Project Works” means all the works, activities and
operations to be undertaken by the Borrower or on its
behalf by the contractors and suppliers under the
Construction Contracts, in respect of the execution of the
Project;
	 
	 	1.2.78	 	“Repayment Date” means each 3 (three) monthly date
upon which the Instalments are to be paid, as set out in
Annexe “A” and as amended from time to time in
accordance with fluctuations in the Facility Outstandings,

 

Page 23

	 	 	 	or such other dates(s) as may be agreed between the Parties from time to time;
	 
	 	1.2.79	 	“Required Insurance” means all commercial, mining,
vehicle fleet, equipment and such other insurance as may
be determined by the Lender from time to time or as may
be advised by the Insurance Adviser;
	 
	 	1.2.80	 	“Restricted Payments” means Distributions made or
intended to be made in respect of Shareholder Claims;
	 
	 	1.2.81	 	“Screen Rate” means, in relation to LIBOR, the British
Bankers Association Interest Settlement Rate for the
relevant currency and period displayed on the appropriate
page of the Reuters screen. If the agreed page is
replaced or service ceases to be available, the Lender
and the Borrower shall agree another page or service
displaying the appropriate rate which most closely
approximates LIBOR;
	 
	 	1.2.82	 	“Security” means the security interests constituted by the
Security Documents;
	 
	 	1.2.83	 	“Security Documents” means the security documents
listed in annexe J and such other security documents as
required by the Lender securing the property, mineral
rights, mining rights, assets and/or income of the
Borrower, to be mortgaged, assigned or charged (whether
by fixed or floating charge) to the Lender under Applicable
Law;
	 
	 	1.2.84	 	“Shareholder” means any holder of Shares for the time
being;
	 
	 	1.2.85	 	“Shareholder Claims” means any amount of any nature
whatsoever, arising out of any cause of action
whatsoever, from time to time owed by the Borrower to
any Shareholder, including any subordinated loans,

 

Page 24

	 	 	 	management and/or technical fees payable to or on behalf of any Shareholder;
	 
	 	1.2.86	 	“Shares” means ordinary issued shares in the share
capital of the Borrower;
	 
	 	1.2.87	 	“Signature Date” means the date of signature of this
Agreement by the Party last signing;
	 
	 	1.2.88	 	“Steady-State Production” means, for the purposes of
Technical Completion, a period of consistent production
over 3 (three) consecutive months where the tonnage
processed through the Project plant is within 10% (ten
percent) of the production figure utilised in the Base Case
Financial Model;
	 
	 	1.2.89	 	“Suspensive Conditions” means the suspensive
conditions contained in clause 3;
	 
	 	1.2.90	 	“Tax” means all income, capital gains and other taxes,
charges, imposts, levies, deductions, withholdings or fees
of any kind whatsoever, or any amount payable on
account of or as security for any of the aforegoing by
whomsoever and on whomsoever imposed, levied,
collected, withheld or assessed, together with any
penalties, additions, fines, surcharges or interest relating
thereto, and the word “Taxation” shall be construed
accordingly;
	 
	 	1.2.91	 	“Technical Completion” means technical completion of
the Project in accordance with the provisions of clause 15;
	 
	 	1.2.92	 	“Technical Completion Date” means the date upon
which the Project achieves Technical Completion as
certified by the Lender in its sole discretion;

 

Page 25

	 	1.2.93	 	“Term” means the entire period which commences on the
Signature Date and which terminates on the Discharge Date;
	 
	 	1.2.94	 	“Territory” means the Independent State of Papua New Guinea;
	 
	 	1.2.95	 	“USD” or “$” means the lawful currency of the United
States of America, from time to time;
	 
	 	1.2.96	 	“Voluntary Prepayment” means a prepayment of all or
any part of the Facility Outstandings in accordance with
the provisions of clause 14; and
	 
	 	1.2.97	 	“ZAR” or “rand” means the lawful currency of the
Republic of South Africa.

	1.3	 	Any substantive provision, conferring rights or imposing obligations on a
Party and appearing in any of the definitions in clause 1.2 or elsewhere
in this Agreement or any of its annexes, shall be given effect to as if it
were a substantive provision in the body of the Agreement or of the
annexe concerned.
	 
	1.4	 	Words and expressions defined in any clause shall, unless the
application of any such word or expression is specifically limited to that
clause, bear the meaning assigned to such word or expression
throughout this Agreement.
	 
	1.5	 	Terms other than those defined within this Agreement and its annexes
will be given their plain English meaning.
	 
	1.6	 	Defined terms appearing in this Agreement and its annexes in title case
shall be given their meaning as defined, while the same terms appearing
in lower case shall be interpreted in accordance with their plain English
meaning.
	 
	1.7	 	The terms “holding company” and “subsidiary” shall bear the meanings
assigned to them under the South African Companies Act, 1973 and any
reference in sections 1(3) and 1(4) of the Companies Act to “company”

 

Page 26

	 	 	shall be deemed to include a company incorporated in a jurisdiction other than South
Africa.
	 
	1.8	 	As far as practicable, but at all times consistent with the terms of this
Agreement as a whole (and in particular clause 39.1), the Parties shall
use reasonable endeavours to resolve any conflict, inconsistency or
ambiguity between Applicable Laws. If any conflict, inconsistency or
ambiguity between the provisions of any two or more of the laws
comprising the Applicable Law cannot be so resolved, the conflicting
laws shall be interpreted in order of precedence as follows:

	 	 	 	 	 
	 

	 	First,
	 	The law of the Republic of South Africa
	 

	 	Second
	 	The law of the Isle of Man
	 

	 	Third
	 	The law of Papua New Guinea

	1.9	 	A reference to any statutory enactment shall be construed as a
reference to that enactment as at the Signature Date and as amended or
substituted from time to time.
	 
	1.10	 	Reference to months or years shall be construed as calendar months
(i.e. one or more of the twelve periods into which a conventional year is
divided) or conventional years (i.e. 1 January to 31 December).
Reference to “days” shall be construed as calendar days unless
qualified by the word “business”, in which instance a “business day”
shall be any day other than a Saturday, Sunday or public holiday as
gazetted under any Applicable Law from time to time. Any reference to
“business hours” shall be construed as being the hours between 08h30
(eight hours and thirty minutes) and 17h00 (seventeen hours) on any business day.
Any reference to time shall be based upon Greenwich Mean Time.
	 
	1.11	 	Unless specifically otherwise provided, any number of days prescribed
shall be determined by including the first and excluding the last day or,
where the last day falls on a Saturday, Sunday or public holiday, the
next succeeding business day.

 

Page 27

	1.12	 	Where figures are referred to in numerals and in words, and there is any
conflict between the two, the words shall prevail, unless the context
indicates a contrary intention.
	 
	1.13	 	No provision herein shall be construed against or interpreted to the
disadvantage of a Party by reason of such Party having or being
deemed to have structured, drafted or introduced such provision.
	 
	1.14	 	The words “include” and “including” mean “include without limitation”
and “including without limitation”. The use of the words “include” and
“including” followed by a specific example or examples shall not be
construed as limiting the meaning of the general wording preceding it:
the application of the eiusdem generis rule is excluded.
	 
	1.15	 	Unless specifically otherwise provided, all amounts in this Agreement
are exclusive of Tax.
	 
	1.16	 	Any communication required to be in writing in terms of this Agreement
shall only be valid if either written or printed in a paper based form. The
provisions of the South African Electronic Communications and
Transactions Act, 2002, in this regard are expressly excluded from this
Agreement.
	 
	1.17	 	This Agreement incorporates the annexes, which annexes shall have the
same force and effect as if set out in the body of this Agreement. In this
Agreement the word “Agreement” refers to this Agreement and the
words “clause” or “clauses” and
“annexe” or “annexes” refer to
clauses of and annexes to this Agreement.
	 
	1.18	 	References to a document shall be construed as a reference to that
document as amended, supplemented, novated or restated.
	 
	1.19	 	A reference to a person includes its permitted successors in title, its
permitted assignees and its permitted transferees.
	 
	1.20	 	In this Agreement -

	 	1.20.1	 	“change in control” means a change in (i) the power to direct the management
and policies of an entity, whether

 

Page 28

through the ownership of voting capital, by contract or otherwise or
(ii) ownership directly or indirectly of more than 50% (fifty
percent) of the share capital or similar right of ownership;

	1.20.1.1	 	“continuing”, in the context of an Event of Default, means -

	1.20.1.1.1	 	where an Event of Default or its consequences are incapable of
remedy that Event of Default is deemed to be continuing unless
it has been expressly waived in writing by the Lender and all
conditions of such waiver have been fulfilled to the satisfaction
of the Lender;
	 
	1.20.1.1.2	 	in any other case, that Event of Default is deemed to be
continuing unless and until either -

	1.20.1.1.2.1	 	it has been expressly waived in writing by the Lender and all conditions of such waiver have been fulfilled to the
satisfaction of the Lender; or
	 
	1.20.1.1.2.2	 	it has been remedied within the applicable period allowed
therefor and the resulting position is that which it would have
been if such Event of Default had not occurred; and

	1.20.1.2	 	“arm’s length basis” means an arrangement or contract on terms
that are no more favourable to the other party to the relevant
arrangement or contract as could reasonably be expected to be
obtained in a comparable arrangement or contract with any person
which is not an affiliate of or otherwise connected to the Borrower.

2 INTRODUCTION

	2.1	 	The Lender, the Borrower, Harmony Netherlands and HGPS are
members of the Group. At the Signature Date, HGPS holds 100% (one
hundred percent) of the Shares of the Borrower.
	 
	2.2	 	The Borrower has requested the Lender to provide the Facility, and the
Lender has agreed to provide the Facility to the Borrower for the Facility
Purpose on the terms and conditions contained in this Agreement.

 

Page 29 

	3	 	SUSPENSIVE CONDITIONS
	 
	3.1	 	Save for the provisions of clause 1, this clause 3 and clauses 24 to 40 which will
become effective immediately, this Agreement is subject to the fulfillment of the
following Suspensive Conditions -

	 	3.1.1	 	the Lender has received -

	3.1.1.1	 	copies of a resolution of the board of directors and the members of the
Borrower (substantially in the form of annexes “D” or otherwise in a form and substance
satisfactory to the Lender) approving the terms of, and the transactions contemplated by, the
Finance Documents and resolving that it execute the Finance Documents to which it is a party;
	 
	3.1.1.2	 	the approval of the central bank of Papua New Guinea necessary for the entry
into and performance of the transactions contemplated by any Finance Document or
Project Document;
	 
	3.1.1.3	 	all Authorizations which the Lender reasonably considers to be necessary or
desirable in connection with the entry into and performance of the transactions contemplated by any
Finance Document or Project Document or for the validity and enforceability of any
Finance Document or Project Document, including any currency exchange control Authorizations;
	 
	3.1.1.4	 	a legal opinion to the Lender’s satisfaction from the Lender’s legal counsel in
the Territory and such other jurisdictions as may be required by the Lender, confirming inter alia
-
	 
	3.1.1.4.1	 	that all Material Contracts in respect of the Project and all Construction
Contracts have been entered into and have become unconditional in accordance with their terms
and their terms and conditions are consistent with the Project Budget;
	 
	3.1.1.4.2	 	that all licences, certificates, permits and/or permissions required
to conduct mining operations and all Environmental Approvals in respect of the Project have been
obtained;

 

Page 30 

	3.1.1.4.3	 	the legality and enforceability of the Security Documents,
the borrower’s title to the Hidden Valley Tenements and the Borrower’s obligations under the Finance
Documents (including the priority of claims on insolvency);
	 
	3.1.1.5	 	evidence or confirmation from the Borrower to the Lender’s satisfaction that -
	 
	3.1.1.5.1	 	the Borrower is the owner of the Hidden Valley Tenements free of
Encumbrances other than the Permitted Encumbrances;
	 
	3.1.1.5.2	 	each of the Finance Documents (other than this Agreement) and Project
Documents has been entered into and has become unconditional in accordance with its terms
(save for any condition requiring that this Agreement becomes unconditional), and all documents
required to be delivered thereunder have been duly delivered;
	 
	3.1.1.5.3	 	each of the Security Documents which are required to be filed, recorded,
stamped and/or registered in order to fully perfect the Security created thereunder has been duly
filed, recorded, stamped and/or registered;
	 
	3.1.1.5.4	 	all Insurance cover is in place and all premiums have been paid and are up
to date;
	 
	3.1.1.6	 	the Lender has received one duplicate original each of the duly executed
Security Documents, together with evidence or proof of registration thereof with all applicable
authorities as required under Applicable Law;
	 
	3.1.1.7	 	written confirmation from the Lender’s Technical Adviser that it is satisfied
with the Base Case Financial Model, the Current Model and the initial Project Budgets;

	 	3.1.2	 	the Lender is satisfied -

 

Page 31 

	3.1.2.1	 	that construction of the Project is fully funded under the Facility, from
third party or external financing or otherwise to the satisfaction of the Lender;
	 
	3.1.2.2	 	that no Material Adverse Change has occurred or is continuing;
	 
	3.1.2.3	 	no Event of Default or a Potential Event of Default has occurred or is
continuing or would reasonably result from making an Advance.
	 

	3.2	 	Each of the Parties will use its best endeavours to procure the fulfilment of the
Suspensive Conditions as soon as reasonably possible after the Signature Date.
	 
	3.3	 	Unless the Suspensive Conditions are fulfilled or waived by not later than 6 (six)
months from the Signature Date (or such later date as may be agreed in writing by the Parties) the
provisions of this Agreement will fall away and be of no further force or effect and the status quo
ante will be restored as near as may be. In that event any costs incurred arising from the
negotiation of this Agreement or its subject matter will be borne by the Party incurring such
costs. Neither Party shall have any claim against the other in terms hereof or arising from the
failure of the Suspensive Conditions, save for any claims arising from a breach of the provisions
of clause 3.2.
	 
	3.4	 	The Suspensive Conditions have been inserted for the benefit of the Lender who will be
entitled to waive or defer fulfilment of one or more of the conditions, in its sole discretion, by
written notice issued by the Lender to the Borrower. To the extent that the Lender -

	 	3.4.1	 	defers fulfilment, those Suspensive Conditions shall be fulfilled by the due date
of deferment as stated in the notice; or
	 
	 	3.4.2	 	waives fulfilment, those Suspensive Conditions shall be deemed to have been
fulfilled.

 

Page 32 

	3.5	 	Notwithstanding anything to the contrary herein contained, the provisions of clause 1, this
clause 3 and clauses 24 to 40 will survive the failure of this Agreement to become unconditional.

4       FACILITY

	4.1	 	Subject to the fulfilment or waiver of the Suspensive Conditions, the Lender hereby
makes the Facility in a maximum amount equal to the Facility Amount available to the Borrower on
the terms and conditions contained in this Agreement.
	 
	4.2	 	Subject to clause 3 above, the Borrower shall be entitled to Advances against the
Facility during the Availability Period as follows -

	 	4.2.1	 	as and when the Borrower wishes to draw down Advances under the
Facility it shall furnish the Lender with a Draw Down Request duly executed by the persons
specified, on its behalf, to sign and despatch a Draw Down Requests pursuant to the resolution
referred to in clause 3.1.1.1;
	 
	 	4.2.2	 	each Draw Down Request shall be irrevocable and set out-

	4.2.2.1	 	the amount of the applicable Advance; and
	 
	4.2.2.2	 	the applicable Advance Date which shall not be sooner than 5
(five) business days and not later than 20 (twenty) business days after the date on which the
applicable Draw Down Request is delivered by the Borrower to the Lender;

	 	4.2.3	 	Advances shall only be made on business days during the Availability Period;
	 
	 	4.2.4	 	Advances shall only be made in tranches of USD1,000,000 (one
million United States Dollars) and shall be recorded by designated tranche, so that the Facility
Outstanding may at any time be reported by designated tranche and so that all Advances and
interest

 

Page 33 

	 	 	 	on Advances under a designated tranche are clearly and separately identifiable from any other
tranche;
	 
	 	4.2.5	 	all Advances shall be used for the Facility Purpose and for
no other purpose whatsoever, and the Lender shall be under no obligation to verify or confirm the
application of the Advances by the Borrower.

	4.3	 	Advances shall only be made on the following basis, namely -

	 	4.3.1	 	the Lender being satisfied that -

	4.3.1.1	 	the Advance will be applied to Project Costs;
	 
	4.3.1.2	 	no Material Adverse Change has occurred or is continuing;
	 
	4.3.1.3	 	no Event of Default or a Potential Event of Default has occurred or is
continuing or would reasonably result from making the said Advance;
	 
	4.3.1.4	 	no event of Force Majeure has occurred and is continuing;
	 
	4.3.1.5	 	the Borrower is not in breach of any of its obligations under this Agreement;

	 	4.3.2	 	the relevant Draw Down Request being accompanied by a summary of all relevant
invoices issued to the Borrower in respect of such Project Costs to be funded by the relevant
Advance (copies of which invoices shall be kept by the Borrower and be made available to the Lender
on request), accepted and countersigned by the Lender, substantially in accordance with the
format of the draft Acceptance Certificate attached hereto as annexe “E”.

	4.4	 	The Lender may validly act on all information, instructions and requests contained in a
Draw Down Request, without any liability or responsibility to verify or check the accuracy of such
information.

 

Page 34 

	4.5	 	In the event of the provisions of clause 4.3 not being complied with the Lender may
issue a draw stop notice and furnish a copy thereof to the Borrower, whereupon the Lender’s
obligations under this Agreement to honour any Draw Down Request or make any Advance shall be
suspended.
	 
	4.6	 	If the first Advance under this Agreement does not occur within 6 (six) months of the
Commencement Date or such later date as may be agreed between the Parties in writing, this
Agreement shall, in the sole discretion of the Lender, be cancelled on written notice issued by the
Lender to the Borrower.
	 
	4.7	 	All Advances drawn against the Facility shall, in the absence of an express written
agreement between the Borrower and the Lender to the contrary or unless this Agreement provides to
the contrary, be paid on the relevant Advance Date by electronic transfer into an account
nominated by the Borrower.

5      INTEREST

	5.1	 	All the Advances made by the Lender to the Borrower against the Facility shall bear
interest for each of the Interest Period’s at the Interest Rate, which interest shall, subject to
clause Error! Reference source not found., be payable on the Repayment Dates.
	 
	5.2	 	Any interest which accrues on any Advances shall -

	 	5.2.1	 	accrue on a daily basis;
	 
	 	5.2.2	 	be capitalized to the Facility during the Availability Period;
	 
	 	5.2.3	 	be calculated on the actual number of days elapsed and a 360 (three hundred and
sixty) day year count convention; and
	 
	 	5.2.4	 	be payable both before and after any judgment is taken against the Borrower.

 

Page 35 

6      REPAYMENTS

	6.1	 	The Borrower shall repay the Advances, together with all interest which accrues thereon from the
First Advance Date until the Final Maturity Date, in the Instalment amounts and on the Repayment
Dates as detailed in annexe “A”, as updated by the Lender from time to time.
	 
	6.2	 	Notwithstanding anything to the contrary herein contained, all Facility Outstandings shall be fully
repaid on the Final Maturity Date.

7       PAYMENT COVENANTS

	7.1	 	The Borrower shall make payment of all Instalments (plus all fees, charges and other payments due
to be paid by the Borrower to the Lender in accordance with the terms and conditions of this
Agreement whether in respect of interest, principal or otherwise) by paying such amounts in USD to
the Lender, free of exchange or other deduction and without the right of set-off or deferment or
avoidance by virtue of any counterclaim or set-off, directly into the following account (or such
other account as the Lender may from time to time in writing designate) by 10h00 on
the due date for payment -

	 	 	 	 	 
	 

	 	Name of Account Holder:
	 	HGM (Isle of Man) (Pty) Limited
	 

	 	Branch:	 	[to be advised] 
	 

	 	Branch Code:	 	 
	 

	 	Account Type:	 	 
	 

	 	Account Number:	 	 

	7.2	 	If the due date for payment of any amount described in clause 7.1 above is not a business day,
the due date for payment shall be the next succeeding business day except if such next succeeding
business day falls into a subsequent month in which event the due date for payment shall be the
immediately preceding business day.
	 
	7.3	 	Save where otherwise specifically provided herein, all payments by the Borrower under this
Agreement shall be made in USD and free and clear of any Taxes, except to the extent that the
Borrower is required by

 

Page 36 

	 	 	Applicable Law to make payment subject thereto. If any Tax or amount in respect thereof must be
deducted, or any other deductions must be made from any amounts payable or paid by the Borrower
under this Agreement, the Borrower shall pay such additional amounts as may be necessary to ensure
that the Lender receives a net amount equal to the full amount which it would have received had
payment not been made subject to such Tax or other deduction.
	 
	7.4	 	The Borrower shall -

	 	7.4.1	 	pay when due all Taxes required by Applicable Law to be deducted or withheld by it
from any amounts paid or payable under this Agreement; and
	 
	 	7.4.2	 	within 15 (fifteen) business days of the payment being made, deliver to the Lender
evidence satisfactory to the Lender (including all relevant Tax receipts) that the payment has
been duly remitted to the appropriate Authority.

	7.5	 	A certificate or account signed by any manager of the Lender, whose appointment it will
not be necessary to prove, as to the existence and amount of the Borrower’s indebtedness to the
Lender hereunder at any time, whether actual or contingent or prospective and as to the fact that
any such amount is due and payable and/or as to any other fact, matter or thing, relating to the
Borrower’s indebtedness to the Lender, including, without limiting the generality hereof, as to any
costs or expenses incurred by the Lender in connection with the enforcement or attempted
enforcement by it of any of its rights in terms of this Agreement, will, unless rebutted, be
sufficient proof of the contents thereof for the purposes of provisional sentence or summary
judgment against the Borrower in any court and be treated as a liquid document for those purposes.
Such certificate or account will be deemed to be sufficient particularity for the purposes of
pleading or trial in any action instituted by the Lender against the Borrower.

 

Page 37 

8       AUDITED FINANCIAL STATEMENTS AND MANAGEMENT ACCOUNTS

	8.1	 	The Borrower shall produce and deliver to the Lender for the duration of the Term -

	 	8.1.1	 	copies of its Audited Financial Statements for each Financial Year as soon
as they become available but in any event not later than 6 (six) months after the last day of such
Financial Year;
	 
	 	8.1.2	 	copies of the Management Accounts as soon as they become available but in any event
not later than 30 (thirty) business days after the last day of the quarter in question; and
	 
	 	8.1.3	 	within 5 (five) business days of being requested to do so by the Lender, such other
information in relation to the business and financial position of the Borrower as the Lender may
reasonably require, including without limitation all minutes and resolutions of the
Borrower, Borrower bank statements and account information.

	8.2	 	The Borrower shall within 15 (fifteen) days of written request or such longer period as
may be agreed between the Parties in writing, provide the Lender with the updated Current Model
together with sufficient information, in form and substance as may be reasonably required by the
Lender, to enable the Lender to make an accurate assesment of the actual financial position of the
Borrower.
	 
	8.3	 	The Borrower shall supply to the Lender all documents dispatched by the Borrower to
its Shareholders at the same time as they are dispatched.
	 
	9	 	PROJECT BUDGETS
	 
	9.1	 	The Borrower shall produce and deliver to the Lender -

	 	9.1.1	 	not later than 30 (thirty) days after the Signature Date, the Initial Project Budget;

 

Page 38 

	 	9.1.2	 	not later than 30 (thirty) days before the beginning of each of its Financial Years
(or such other time as may be agreed between the Parties in writing), a draft Project Budget
prepared by it for that Financial Year;
	 
	 	9.1.3	 	not later than 30 (thirty) days after the beginning of each of its Financial Years,
its Project Budget for that Financial Year, which shall be in the form agreed or otherwise
determined in accordance with clause 9.2.

	9.2	 	Within 10 (ten) business days of receipt of each draft Project Budget pursuant to clause 9.1
the Lender shall notify the Borrower either that it approves or rejects the draft Project Budget.
If it rejects the draft
Project Budget, it shall state its reasons for so doing and the Borrower and the Lender shall
negotiate in good faith to agree the Project Budget. Failing such agreement by the date which is 15
(fifteen) business days prior to the commencement of the Financial Year to which such draft Project
Budget relates, such dispute shall be referred to an Expert for resolution in accordance with
clause 11.
	 
	10	 	CURRENT MODEL
	 
	10.1	 	The Borrower shall make such revisions to the Current Model as may be reasonably required for
the purpose of -

	 	10.1.1	 	correcting any error in the form or structure of the Current Model; and/or
	 
	 	10.1.2	 	incorporating any additional assumptions or amending the form or structure as
advised by the Lender,

	 	 	within 10 (ten) business days of becoming aware of the need to revise the Current Model or being
required to revise the Current Model by the Lender, in either such case on one or both of the
grounds specified in clauses 10.1.1 and 10.1.2. If the Borrower fails to make such revisions, then
the Lender may make such revision itself, in which case the Lender shall, at the reasonable expense
of the Borrower, do so.

 

Page 39

	10.2	 	Any revisions that are required by the Borrower or the Lender shall be
agreed with the Lender or the Borrower (as the case may be) and, failing
agreement within 5 (five) business days, any dispute shall be referred to
the Expert for determination in accordance with clause 11.
	 
	10.3	 	If the Current Model is revised in accordance with clause 10.1, the
Lender or the Borrower (as the case may be) shall promptly notify the
other of such revision and provide the other with a ‘read only’ computer
disk copy of the same.

	11	 	SUBMISSIONS TO THE EXPERT

	11.1	 	An Expert shall be a person having appropriate expertise with respect to,
but no interest in the outcome of, the matter referred to him and shall be
appointed by agreement between the Borrower and the Lender. Failing
any such agreement within 5 (five) business days after the date on
which the dispute may be referred to an Expert pursuant to this clause
11.1, the Expert shall be the person nominated on the application of
either the Borrower or the Lender to the South African Institute of
Chartered Accountants or successor body whose appointment shall be
final and binding upon the Parties.
	 
	11.2	 	The Expert shall in making his determination have due regard to -

	 	11.2.1	 	the Current Model;
	 
	 	11.2.2	 	the interests of both the Borrower and the Lender;
	 
	 	11.2.3	 	changes in any facts or circumstances of whatever nature
which may in the future affect the form and/or structure of
the Current Model;
	 
	 	11.2.4	 	new facts or circumstances of whatever nature which
were not taken into account in determining the form and
structure of the Current Model; and
	 
	 	11.2.5	 	good industry practice and the extent relevant, the terms
of all Project Documents and Finance Documents.

 

 

Page 40

	11.3	 	The Borrower and the Lender may each provide the Expert (with copies
to the other) with whatever supporting evidence they think appropriate.
The Borrower and the Lender shall ensure that the terms of reference of
the Expert contains the principles detailed in clauses 11.2.1 to 11.2.5.
	 
	11.4	 	Unless otherwise agreed between the Parties, the determination shall:

	 	11.4.1	 	take place in Johannesburg, Republic of South Africa; and
	 
	 	11.4.2	 	be conducted in the English language.

	11.5	 	The Expert shall be bound to give his decision within 10 (ten) days after
the date of receipt of his instructions.
	 
	11.6	 	The Expert shall not be bound to choose either the proposal made by
the Borrower or that made by the Lender in respect of the matter in
dispute but shall be free to make his own determination of the issue
referred to him provided that for any determination to be final and
binding as contemplated by this clause 11.6, the determination of the
Expert must be within the range of (which, for the avoidance of doubt,
includes) the proposals made by the Lender and the Borrower in relation
to the matter(s) in dispute. The Expert’s determination shall be used in
the relevant Approved Project Budget or Current Model (as the case
may be).
	 
	11.7	 	The Expert shall act as an expert in determining the matter referred to
him and not as an arbitrator and his decision shall (except in the case of
manifest error) be final and binding upon the Parties and except that the Parties may
jointly approach the Expert to obtain clarification should any Party believe that the
Expert’s decision is ambiguous or indeterminate.
	 
	11.8	 	The costs, fees and expenses of the Expert and the determination in any
reference in terms of this clause shall be borne by the Party nominated
by the Expert in the course of his determination, taking into account all
factors including but not limited to the outcome of the determination,
provided that nothing herein shall prohibit the Expert from allocating the
costs between the Parties in any proportion which the Expert considers
to be fair and equitable.

 

 

Page 41

	12	 	CONSTRUCTION PROGRESS REPORTS

	12.1	 	The Borrower shall during the performance of the construction of the
Project Works within 30 (thirty) business days after the end of each
quarter, deliver to the Lender quarterly construction progress reports in
respect of the preceding 3 (three) month period.
	 
	12.2	 	The Borrower shall procure that the construction progress report
contains at least such information as is required in terms of annexe “F”.

	13	 	FAILURE TO DELIVER

In the event that the Borrower fails to prepare and deliver the information or documents
referred to in clauses 8 to 12, in each case -

	13.1	 	within the period prescribed for such delivery in such clauses; and
	 
	13.2	 	within 10 (ten) business days after written notice of such failure has
been sent to the Borrower by the Lender,

such failure shall be an Event of Default.

	14	 	VOLUNTARY PREPAYMENT

	14.1	 	The Borrower shall be entitled to prepay all or any part of the Facility
Outstandings at any time after the first Advance Date, provided that -

	 	14.1.1	 	the Lender is satisfied that the prepayment will not result in a
Material Adverse Change, and provided further that -

	14.1.1.1	 	the Borrower shall give the Lender 30 (thirty) business days prior
written notice of its intention to make any voluntary prepayment;
	 
	14.1.1.2	 	the above notice shall be irrevocable, shall specify the date upon
which such prepayment is to be made and the amount of such
prepayment;
	 
	14.1.1.3	 	the minimum amount of any prepayment shall be
USD1 000 000.00 (one million United States Dollars).

 

 

Page 42

	14.1.1.4	 	any amount that has been prepaid may not be redrawn.
	 
	14.2	 	All amounts prepaid by the Borrower shall be -

	 	14.2.1	 	attributed to the Instalments in inverse order of maturity
so that Instalments which are payable later in time shall
be deemed to have been prepaid prior to Instalments
which are payable earlier in time; and
	 
	 	14.2.2	 	attributed first to interest which has accrued but which has
not been paid and, thereafter, to capital.

	15	 	MANDATORY PREPAYMENT

	15.1	 	The Borrower will be required to make a mandatory prepayment of the
Facility Outstandings, other than on an acceleration or as otherwise
required in terms of this Agreement, from the proceeds of any Disposal
in terms of clause 19.2.4.5, in amounts equal to such proceeds.
	 
	15.2	 	Any mandatory prepayments shall be attributed to the Facility
Outstandings in inverse order of maturity so that Instalments which are
payable later in time shall be deemed to have been prepaid prior to
Instalments which are payable earlier in time.
	 
	15.3	 	Any amount that has been prepaid in terms of this clause 15 may not be
redrawn.

	16	 	TECHNICAL COMPLETION TEST

	16.1	 	Technical Completion of the Project shall occur on the date on which the Lender –

	 	16.1.1	 	has received the certificates specified in annexe “H”;
	 
	 	16.1.2	 	has obtained from the Lender’s Technical Adviser
confirmation of the matters certified in 16.1.1, including
the additional confirmations specified in annexe “H”; and
	 
	 	16.1.3	 	confirms to the Borrower that it is satisfied with the
certificates and confirmations received in terms of clauses

 

 

Page 43

16.1.1 and 16.1.2 above, and that all material provisions of this
Agreement have been complied with, including that no Event of
Default or Potential Event of Default has occurred or is continuing.

	16.2	 	Technical Completion shall also occur if at any time the Lender considers on reasonable
grounds that the requirements specified in annexe “H” have been complied with and delivers a
notice in writing to the Borrower, declaring that Technical Completion has occurred.

	17	 	INSURANCE

	17.1	 	For so long as the Borrower is indebted to the Lender in terms of this
Agreement, the Borrower shall maintain the Required Insurance.
	 
	17.2	 	The payment of the premiums in respect of Insurance will be for the
account of the Borrower and will be included in the Project Costs.
	 
	17.3	 	The Borrower shall procure that, upon the written request of the Lender,
the Lender’s interests shall be noted as cessionary and first loss payee
on the policies in accordance with the Borrower Cession.
	 
	17.4	 	The Lender is to be provided with written confirmation annually on the
insurance renewal dates by the Borrower that the Insurance policies
have been renewed, premiums paid (or confirmation that they will be
paid in respect of any group policies, within 30 (thirty) days of renewal,
 as applicable), with the sums insured being specified.

	18	 	POSITIVE UNDERTAKINGS

	18.1	 	For the duration of the Term, the Borrower gives the undertakings contained in 18.2,
18.3, 18.4 and 18.5 to the Lender. Each undertaking -

	 	18.1.1	 	is a separate and distinct undertaking;
	 
	 	18.1.2	 	shall not be qualified by or limited with reference to any
other undertaking contained in 18.2, 18.3, 18.4 and 18.5,
elsewhere in this Agreement or in any other Finance
Document; and

 

 

Page 44

	 	18.1.3	 	is material and has induced the Lender to enter into the Finance
Documents.

	18.2	 	General
	 
	 	 	The Borrower shall –

	 	18.2.1	 	comply in all respects with all Applicable Law;
	 
	 	18.2.2	 	comply all times with Environmental Laws and obtain all
necessary Environmental Approval in relation to the
Project and specifically relating to the World Bank
Environment, Health and Safety Guidelines;
	 
	 	18.2.3	 	ensure that the Audited Financial Statements are
prepared in accordance with IFRS;
	 
	 	18.2.4	 	obtain, comply with the terms of and do all that is
necessary to maintain in full force and effect all
Authorisations required in or by Applicable Law to enable
it lawfully to enter into and perform its obligations under
the Finance Documents and the Project Documents, to
conduct its business and affairs and to ensure the legality,
validity, enforceability or admissibility into evidence in the
Republic of South Africa of any Finance Document and/or
any Project Document to which it is a party;
	 
	 	18.2.5	 	do all such things and take all such steps as may be
necessary to ensure that any Material Contracts are not
amended in any material manner without the prior written
consent of the Lender;
	 
	 	18.2.6	 	procure that the Project is designed, constructed,
completed, operated, maintained and run in a safe,
efficient and business-like manner in accordance with –

	18.2.6.1	 	Applicable Law;
	 
	18.2.6.2	 	the conditions imposed by any Authority; and

 

 

Page 45

	18.2.6.3	 	reasonable and prudent international industry standards, where
failure to do so would be reasonable likely to result in Material Adverse Change;

	 	18.2.7	 	file all necessary Tax returns timeously and pay all and
any Taxes which it becomes obliged to pay and furnish to
the Lender, within 5 (five) business days of a written
request, documentary proof that it has done so;
	 
	 	18.2.8	 	supplement, from time to time, any information given by it
to the Lender in respect of the transactions contained in
the Finance Documents and the Project Documents, in
order to ensure that such information remains complete
and correct in all material respects;
	 
	 	18.2.9	 	maintain its corporate existence, operate and discharge
its obligations as they fall due in accordance with the
Project Documents, Project Budgets, good industry
practice and Applicable Law;
	 
	 	18.2.10	 	properly maintain in good working order and condition, all
material assets necessary for its business operations and
the Project;
	 
	 	18.2.11	 	take responsible steps to protect its assets from theft, loss
or damage only enter into agreements, arrangements or
contracts on an arm’s length basis;
	 
	 	18.2.12	 	use reasonable endeavours to ensure that no Event of
Default occurs;
	 
	 	18.2.13	 	use the Facility only for the purpose set out in this
Agreement;

	18.3	 	Tenements
	 
	 	 	The Borrower shall –

 

 

Page 46

	 	18.3.1	 	hold and maintain its interest in the Hidden Valley
Tenements free of Encumbrances (other than Permitted
Encumbrances);
	 
	 	18.3.2	 	ensure that the Hidden Valley Tenements are not
cancelled, suspended, reduced, surrendered, defaulted
against, allowed to lapse or transferred except for
statutory surrenders under Applicable Law or with the
prior written consent of the Lender;
	 
	 	18.3.3	 	comply on time with and observe and perform all
conditions and requirements of the Hidden Valley
Tenements and do whatever may be reasonably required
to keep the Hidden Valley Tenements in full force and
effect;

	18.4	 	Security
	 
	 	 	The Borrower shall –

	 	18.4.1	 	ensure that the Security is maintained, preserved and
disclosed in the Audited Financial Statements to the
extent required in terms of IFRS;
	 
	 	18.4.2	 	execute and deliver to the Lender a notarised deed
constituting an irrevocable power of attorney in the
Territory granting the Lender the power and right, in the
name or on behalf of the Borrower without notice to or
assent by the Borrower to take any actions and execute
any instruments which are necessary to create, preserve,
continue, perfect or validate any Security;
	 
	 	18.4.3	 	procure that all Shareholder Claims are subordinated to
the claims of the Lender under this Agreement.

	18.5	 	Notification of certain events and occurrences
	 
	 	 	The Borrower shall –

 

 

Page 47

	 	18.5.1	 	forthwith and in writing advise the Lender it if becomes
aware of the occurrence of any facts or circumstances
which does or could reasonably be expected to result in a
Material Adverse Change or in the occurrence of an Event
of Default or a Potential Event of Default, giving
particulars of such facts and/or circumstances together
with full details of any step taken or proposed to remedy
it;
	 
	 	18.5.2	 	furnish to the Lender –

	18.5.2.1	 	promptly, copies of any correspondence between the Borrower
and any applicable Authority relating to any termination, breach,
fine, penalty or amendment of any Authorisation relating to the
Project and copies of any waiver or deferment of the application of
Applicable Law relating to the Project by any Authority;
	 
	18.5.2.2	 	promptly, upon the same being approved by the Borrower, copies
of any compliance reporting certificate to be delivered to any
Authority under the terms of any Authorisations which is material to
the Project;
	 
	18.5.2.3	 	promptly, notice of any material breach by the Borrower of any
Authorisation or Applicable Law or any other event or
circumstance which entitles or which may reasonably be expected
to entitled a person to cancel, terminate or suspend an
Authorisation;

	 	18.5.3	 	promptly inform the Lender of any unscheduled stoppage
or material disruption to production in respect of the
Project which reasonably may be anticipated may endure
for a continuous period in excess of 5 (five) days;
	 
	 	18.5.4	 	promptly inform the Lender of any change or notice which
relates to or affects the Hidden Valley Tenements, mining
or metallurgical methods, gold production or the
obligations of the Borrower;

 

 

Page 48

	 	18.5.5	 	promptly inform the Lender of any stoppages as a result
of events of Force Majeure;
	 
	 	18.5.6	 	promptly inform the Lender of any breach of any
Environmental Law and remedy that breach as soon as
practical;
	 
	 	18.5.7	 	in the period prior to the Technical Completion Date,
forthwith and in writing notify the Lender and the Lender’s
Technical Adviser of the occurrence of any of the
following events or occurrences in respect of the Project
or, as the case may be, if it proposes to take any of the
following actions in respect of the Project upon becoming
aware of the occurrence of the same or proposing to take
such action –

	18.5.7.1	 	any consultation in relation to, or resolution of any material dispute
under the Construction Contract to which the Borrower is a party or
becomes aware of, and the reference of any such dispute to the
disputes resolution procedure;
	 
	18.5.7.2	 	any suspension of the Project or portion thereof;
	 
	18.5.7.3	 	any material variation under the Construction Contract;
	 
	18.5.7.4	 	any extension of time granted under the Construction Contract.

	 	18.5.8	 	in the period following the Technical Completion Date,
forthwith and in writing notify the Lender and the Lender’s
Technical Adviser of the occurrence of any of the events
or circumstances referred to in annexe “G” of which it is
aware or, as the case may be, if it proposes to take any of
the actions referred to in annexe “G” in respect of the
Project, together with details of any action proposed in
relation thereto;
	 
	 	18.5.9	 	forthwith notify the Lender if any litigation, arbitration or
administrative proceedings are commenced against the

 

 

Page 49

Borrower or in respect of the Project which if adversely determined
would or could reasonably be expected to result in a Material
Adverse Change.

	19	 	NEGATIVE UNDERTAKINGS

	19.1	 	The Borrower gives the undertakings contained in clause 19.2 to the
Lender for the duration of the Term. Each of the aforesaid undertakings -

	 	19.1.1	 	is a separate and distinct undertaking;
	 
	 	19.1.2	 	shall not be qualified by or limited with reference to any
other such undertaking and/or any other undertaking
contained elsewhere in this Agreement or in any Finance
Document; and
	 
	 	19.1.3	 	is material and has induced the Lender to enter into the
Finance Documents.

	19.2	 	The Borrower shall not, without the Lender’s prior written consent or
save as otherwise set out in this Agreement -

	 	19.2.1	 	create or permit to subsist any Encumbrance over any of
the Borrower’s present or future assets mineral and/or
mining rights except for Permitted Encumbrances;
	 
	 	19.2.2	 	conclude any transaction of any nature whatsoever with
any third person whatsoever if the purpose and/or effect
of such transaction is to create Financial Indebtedness,
other than -

	19.2.2.1	 	Financial Indebtedness owing at the Signature Date;
	 
	19.2.2.2	 	Financial Indebtedness contemplated in the Approved Project
Budget or otherwise in accordance with this Agreement;
	 
	19.2.2.3	 	Financial Indebtedness incurred in respect of the financing of
equipment used to carry out the Project;

 

 

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	 	19.2.3	 	cease, suspend or fail to maintain its business activities
and operations as conducted on the Signature Date or
decrease its interest in the Project or relinquish, abandon
or cancel its participation in the Project;
	 
	 	19.2.4	 	Dispose, whether by one or more transactions or series of
transactions (whether related or not and whether
voluntarily or involuntarily) the whole or a material portion
of its assets mineral and/or mining rights, including the
Hidden Valley Tenements except –

	19.2.4.1	 	a disposal of an asset or property which is intended to be (and
within 6 months thereafter, is) replaced or upgraded by another
asset or other property of comparative utility and function within 6
(months) of such disposal;
	 
	19.2.4.2	 	a disposal of an asset or property which is worn out or obsolete;
	 
	19.2.4.3	 	a disposal of an asset or property in accordance with a Permitted
Encumbrance;
	 
	19.2.4.4	 	a disposal of an asset or property for fair market value where the
value of such disposal(s) does not exceed $5,000,000 in
aggregate in any 12 (twelve) month period;
	 
	19.2.4.5	 	a disposal of up to 5% (five percent) of the Project to the Papua
New Guinea Authorities or a land owner group in accordance with
the provisions of the Hidden Valley Tenements, or any agreement
entered between the Borrower and such persons before the
Signature Date and disclosed to the Lender in writing, or any such
subsequent agreement on such terms and conditions approved of
by the Lender in writing;

	 	19.2.5	 	lend any money to any third person or provide any credit
to any third person, except in accordance with the Current
Model or otherwise with the prior written approval of the
Lender;

 

 

Page 51

	 	19.2.6	 	amend its founding or constitutional documentation;
	 
	 	19.2.7	 	cease to be a member of the Group;
	 
	 	19.2.8	 	merge or consolidate with any other person or otherwise
engage in any corporate restructuring of the Borrower
where such merger, consolidation or reconstruction has
the effect that the Borrower ceases to be a member of the
Group. For the avoidance of doubt, this does not prohibit
the sale or transfer of some or all of the Shares by any
member of the Group to any other member of the Group,
provided that the Borrower shall at all times remain a
member of the Group;
	 
	 	19.2.9	 	change its Financial Year end;
	 
	 	19.2.10	 	change its accounting policy and practice except to the
extent to which it is necessary to do so in order to comply
with IFRS;
	 
	 	19.2.11	 	consent to any amendment, alteration, cancellation or
variation of any of the Finance Documents and/or Project
Documents to which it is a party;
	 
	 	19.2.12	 	enter into any Material Contract other than those
contemplated in the Project Budget or otherwise in
accordance with this Agreement;

	19.2.13	 	issue or repurchase any Shares or alter any rights in
existence at the Signature Date hereof attaching to such
Shares other than –
	 
	19.2.13.1	 	in compliance with any peremptory provisions of Applicable Law;

	 	19.2.14	 	form or have any subsidiary, or make any investments in
any person or enterprise (including own any shares in any
company) save as required or permitted by the Finance
Documents to which it is a party;

 

 

Page 52

	 	19.2.15	 	use the proceeds of the Facility to acquire any subsidiary
or assets comprising a business or to subscribe for equity
in any entity;
	 
	 	19.2.16	 	incur any capital expenditure not expressly included in the
Capital Costs or provided for in the Base Case Financial
Model or the Current Model;
	 
	 	19.2.17	 	enter into any agreement, arrangement or contract with
any entity unless such agreement, arrangement or
contract is entered into on an arm’s length basis;
	 
	 	19.2.18	 	consent or agree to a change in control of the Borrower;
	 
	 	19.2.19	 	in any proceedings in relation to any of the Project
Documents or Finance Documents to which it is a party,
claim for itself or any of its assets, mineral and/or mining
rights or revenues, immunity from suit, execution,
attachment or other legal process;
	 
	 	19.2.20	 	do or omit to do anything or acquiesce in any act or
omission the effect of which could or might jeopardise the
ability of the Borrower to meet its obligations under the
Project Documents or the Finance Documents;
	 
	 	19.2.21	 	permit to be done, anything which might be expected to
result in the cancellation or revocation, in any manner
whatsoever, of any Authorisation;
	 
	 	19.2.22	 	make any Restricted Payments unless a period of 1 (one)
year has elapsed after the Technical Completion Date
and as at such date no Event of Default or Potential Event
of Default has occurred or is continuing and the making of
such Restricted Payment will not result in a Material
Adverse Change;

 

 

Page 53

	20	 	REPRESENTATIONS AND WARRANTIES

	20.1	 	Each representation and warranty set out in this Agreement shall be a
separate representation and warranty and shall (except as otherwise
expressly stated) in no way be limited or restricted by reference to or
inference from the terms of any other representation and warranty.
	 
	20.2	 	The Borrower acknowledges that it makes the representations and gives
the warranties in this clause 20 with the intention of inducing the Lender
to enter into this Agreement and that the Lender enters into this
Agreement on the basis of, and in full reliance on, each such
representation and warranty.
	 
	20.3	 	The representations and warranties set out in this clause 20 shall be
deemed to be repeated upon the Commencement Date, each Advance
Date, each Repayment Date and on each day in between such dates.
	 
	20.4	 	The Borrower represents and warrants to the Lender that as of the
Commencement Date -

	 	20.4.1	 	the Borrower is a company existing in accordance with
the laws of the Territory and possesses the capacity to
sue or be sued in its own name and has the power to own
its assets, mineral and/or mining rights and carry on its
operations as it is now being conducted;
	 
	 	20.4.2	 	it is duly authorised, under its founding or constitutional
documents, to execute or conclude the Finance
Documents and the Project Documents to which it is a
party, and the ancillary documents thereto;
	 
	 	20.4.3	 	each of the Project Documents and Finance Documents
to which it is a party, and the ancillary documents thereto,
constitute legal, valid and binding obligations of the
Borrower enforceable in accordance with their terms;
	 
	 	20.4.4	 	it has an issued share capital of 528,792,629 Shares;

 

 

Page 54

	 	20.4.5	 	no Shares have been issued to employees, directors or
any other persons pursuant to any Borrower share
incentive, participation or bonus scheme;
	 
	 	20.4.6	 	the obligations of the Borrower under this Agreement are direct, general and unconditional obligations of the
Borrower and rank at least pari passu with all other present and future unsecured and unsubordinated
Financial Indebtedness of the Borrower;
	 
	 	20.4.7	 	the Borrower is not in breach of or in default under any other agreement to which it is a party or which is binding
on any of its assets, or under its founding or constitutional
documents, which if adversely determined would or could
reasonably be expected to result in a Material Adverse
Change;
	 
	 	20.4.8	 	any Financial Indebtedness (other than Financial Indebtedness incurred with the knowledge of the Lender
in respect of the financing of equipment used to carry out
the Project) which may be incurred by the Borrower on or
after the Signature Date will be subordinated to the claims
of the Lender under this Agreement;
	 
	 	20.4.9	 	Financial Indebtedness incurred with the prior written
consent of the Lender in order to repay or prepay in full, in
accordance with the provisions of this Agreement, the Facility
Outstandings, provided that such indebtedness does not subsist for a
period of longer than 5 (five) business days prior to the prepayment
of the Facility Outstandings;
	 
	 	20.4.10	 	the entry into and performance of the Project Documents
and Finance Documents and the transactions
contemplated therein do not conflict with -

	20.4.10.1	 	any Applicable Law including Environmental Law; or

 

 

Page 55

	20.4.10.2	 	any agreement or document to which the Borrower is a party or
which is binding upon it or any of its assets;
	 
	20.4.10.3	 	any court order or decision by any arbitrator, arbitral tribunal or
government authority, which is binding on the Borrower;

	 	20.4.11	 	no Event of Default or Potential Event of Default -

	20.4.11.1	 	has occurred or is continuing under or in respect of any agreement
or document to which the Borrower is a party or by which it may be
bound, including this Agreement;
	 
	20.4.11.2	 	might reasonably be expected to result from the conclusion of this
Agreement or the making of any of the Advances to the Borrower;

	 	20.4.12	 	the Borrower has good title to all its assets which are
reflected in the Audited Financial Statements at the time
that they are made available to the Lender and the
Borrower has not Disposed of or Encumbered such
assets, save as reflected in such Audited Financial
Statements or in terms of the Security Documents or this
Agreement;
	 
	 	20.4.13	 	save as provided in this Agreement and the Project
Documents or Finance Documents, the Borrower is not
liable contractually, whether contingently or otherwise and
whether as surety, co-principal debtor, guarantor or
indemnitor, for the liabilities of any third party;
	 
	 	20.4.14	 	save as provided for in the Project Documents or Finance
Documents, the Borrower is not -

	20.4.14.1	 	under any obligation to pay any royalties, license fees, and is not bound by any
profit-sharing or royalty agreement or other similar arrangement in respect of any Hidden
Valley Tenement, save for -
	 
	20.4.14.1.1	 	mandatory royalty payments to the central bank of the Territory
in accordance with the terms and conditions of the Hidden Valley Tenements;

 

 

Page 56

	20.4.14.1.2	 	any existing third party royalties under Permitted Encumbrances;
	 
	20.4.14.2	 	party to any management contract or similar arrangement whereby its business or operations are managed by any other person, save for –
	 
	20.4.14.2.1	 	a cost sharing arrangement with various other members of the Group;
	 
	20.4.14.2.2	 	a labour supply arrangement with various other members of the `Group;

	 	20.4.15	 	save as otherwise set out herein, all Authorisations
required in connection with the entry into and
performance by the Borrower and the validity and
enforceability against it of the Project Documents or
Finance Documents to which the Borrower is or will be a
party and the transactions contemplated thereby have
been obtained or effected and are of full force and effect
and no steps have been taken against the Borrower for
the revocation, variation or refusal of any material
Authorisation in respect of the Project and all fees (if any)
payable in connection therewith, if due, have been paid
and no event of default (howsoever described) has
occurred in the performance of any of the terms or
conditions thereof which is material to the effectiveness of
any of the aforegoing;
	 
	 	20.4.16	 	the Borrower is in full compliance with all Environmental
Laws and all Environmental Approvals are in full force and
effect. There are no acts, omissions, events, state of facts
or circumstances of which it is aware, after reasonable
inquiry, which may be expected to prevent it being in full
compliance with any Environmental Laws;

 

 

Page 57

	 	20.4.17	 	there are no acts, omissions, events, state of facts or
circumstances which have resulted in any third party
(including any Authority) taking any action or making any
claim against it under any Environmental Laws arising out
of or in connection with the Project including any
rehabilitation or remedial action (in particular in relation to
contaminated land) or the revocation, suspension,
variation or non-renewal of any Environmental Approval
and it has no notice of any complaints, demands, civil
claims or enforcement proceedings or of any action
required by any regulatory authority and, there are no
investigations pending or threatened in relation to its
failure to obtain any Environmental Approval or comply
with any Environmental Laws, including the World Bank
Environment, Health and Safety Guidelines;
	 
	 	20.4.18	 	its most recent Audited Financial Statements were
prepared in accordance with IFRS and fairly present their
respective financial condition and affairs at the date and
for the accounting period to which they relate;
	 
	 	20.4.19	 	there has been no change in the financial condition of the
Borrower since the end of the applicable accounting
period referred to in 20.4.18 which constitutes a Material
Adverse Change;
	 
	 	20.4.20	 	there is no litigation, arbitration or administrative
proceeding current or pending against, to the best of the
Borrower’s knowledge and belief, threatened against the
Borrower which, if adversely determined, could result in a
Material Adverse Change other than as disclosed in terms
of this Agreement and which is being contested in good
faith;
	 
	 	20.4.21	 	all information (as supplemented from time to time),
including, without limitation that has been made available

or will hereafter be made available to the Lender by the

 

 

Page 58

	 	 	 	Borrower or any of its representatives in connection with the
transactions envisaged in the Finance Documents and in the Project
Documents is and will at all times be complete and correct in all
respects and does not and will not contain any untrue statement of a
material fact or omit to state a material fact necessary in order to make
the statements or calculations contained therein not misleading in the
light of the circumstances under which such statements or calculations
were or are made;
	 
	 	20.4.22	 	the Borrower has made a full and complete disclosure to
the Lender of its affairs, its assets, liabilities and
operations and all material information of whatsoever
nature or kind has been disclosed to the Lender (or shall
be disclosed to the Lender in terms of this Agreement)
which is material to the decision of the Lender to enter
into this Agreement;
	 
	 	20.4.23	 	no legal suit, action, proceeding or process or any other
steps have been taken or, to the best of the Borrower’s
knowledge and belief (and after making reasonable
enquiries) have been threatened for the winding up or
liquidation (whether voluntary or involuntary, provisional
or final), judicial management (whether provisional or
final) or de-registration of the Borrower or for the
appointment of a liquidator, judicial manager or similar officer over the
Borrower or over any of the assets of the Borrower;
	 
	 	20.4.24	 	the initial Construction Budget will not differ in any
material respect from the Base Case Financial Model and
includes estimates made in good faith of all Capital Costs
expected by the Borrower to be incurred in the period to
which such Construction Budget relates;
	 
	 	20.4.25	 	the initial Operating Budget will not differ in any material
respect from the Base Case Financial Model and includes

 

 

Page 59

	 	 	 	estimates made in good faith of all Operation and Maintenance Costs
expected by the Borrower to be incurred in the period to which such
Operating Budget relates;
	 
	 	20.4.26	 	it is not required to make any deduction or withholding
from any payments under the finance documents, except
for Taxes in respect of which gross-up is provided for;
	 
	 	20.4.27	 	the Security evidenced by the Security Documents
constitutes valid security capable of perfection and all
formalities for registering the Security Documents have
been complied with and all duties have been paid or will
be paid in any applicable time period in accordance with
Applicable Law;
	 
	 	20.4.28	 	it cannot claim immunity from suit or action; and
	 
	 	20.4.29	 	the Required Insurance is in place and in full force and
effect, and all renewals are in place or have been
obtained;
	 
	 	20.4.30	 	since the Signature Date no facts or circumstances have
occurred which may result in a Material Adverse Change.

	21	 	SET UP COSTS
	 
	21.1	 	The Borrower shall upon request pay to the Lender on the earlier of -

	 	21.1.1	 	the first Advance Date; or
	 
	 	21.1.2	 	3 (three) months after the Signature Date,

	21.2	 	all costs incurred by the Lender in drafting and negotiating the Finance
Documents and Project Documents, all costs relating to the registration
of Security and all statutory and/or legal and/or audit and/or out-of-
pocket expenses of the Lender incurred in connection with the Project.
The amounts referred to in clause 21.1 shall, if due on the first Advance

 

 

Page 60

	 	 	Date, be included in the amount of the relevant Advance, but withheld from the amount
actually advanced to the Borrower.
	 
	21.3	 	Notwithstanding clause 21.2, the said amount will be deemed to have been Advanced to the
Borrower and paid by the Borrower to the Lender in settlement of the said costs.
	 
	22	 	CHANGE IN LAW
	 
	22.1	 	If by reason of -

	 	22.1.1	 	any Change in Law; and/or
	 
	 	22.1.2	 	any directive, requirement, request or guidance, after the
Signature Date, (whether or not having the force of law) or
the interpretation of any directive, requirement, request or
guidance now existing of any central bank or any other
fiscal, monetary, regulatory or other Authority; and/or
	 
	 	22.1.3	 	a requirement or a request by any Authority, to pay Taxes
or other amounts whatsoever or to maintain special

deposits or reserve assets,

	 	 	there are any Increased Costs, then the Borrower shall forthwith on demand pay to the
Lender the amount of any Increased Costs incurred by the Lender with effect from the
date of such change to compensate the Lender for such Increased Costs, whether
retrospectively or not.
	 
	22.2	 	The Lender shall deliver a certificate setting out of the amount of such
Increased Costs incurred by the Lender to the Borrower in terms of clause 7.5.
	 
	22.3	 	Clause 22.1 shall not apply to any Increased Cost attributable to any
change in the rate of income tax on the overall net income of the Lender.

 

 

Page 61

	23	 	EVENTS OF DEFAULT
	 
	23.1	 	Each of the following events shall constitute an Event of Default (whether or not caused
by any reason whatsoever outside the control of the Borrower or any other person) -

23.1.1 Breach

A breach of any term, condition, obligation, positive or negative covenant,
undertaking, warranty or representation in any of the Project Documents or Finance
Documents by the Borrower or any other party to the applicable Project Documents
or Finance Documents, which if capable of cure in the Lender’s opinion, has not
been so cured within 10 (ten) days of the breach having occurred or such longer
period as the Parties may agree in writing.

23.1.2 Unlawfulness

The unlawfulness, illegality, invalidity, unenforceability or repudiation of any
of the Project Documents or the Finance Documents or any material obligation
thereunder, or non-compliance of the Project Documents or Finance Documents with
any agreement to which the Borrower is a party, including any Project Document or
any transaction in connection with it being or becoming (or being claimed to be)
wholly or partly void, voidable or unenforceable.

23.1.3 Material Contracts

Non-fulfilment by the Borrower of a material term of or the breach, suspension,
revocation, cancellation or termination of any Material Contract relating to the
business operations of the Borrower which is likely to result in a Material Adverse
Change.

23.1.4 Invalidity of Security

The Security or any part thereof -

 

 

Page 62

	23.1.4.1	 	for any reason ceasing to be in full force and effect under
Applicable Law or being alleged by the Borrower to be ineffective;
or
	 
	23.1.4.2	 	otherwise ceasing to constitute valid, first-ranking security in
respect of the relevant asset(s) or revenue

and the Borrower failing to restore or procure the restoration of the Security
within 10 (ten) business days of being required to do so by the Lender or such
longer period as the Parties may agree in writing.

23.1.5 Insurance

Any Required Insurance ceasing to be sufficiently maintained in terms of this
Agreement or becoming commercially unavailable to the Borrower (but remaining
available to participants in the mining industry generally, as determined by the
Insurance Adviser).

23.1.6 Abandonment

The abandonment or relinquishment by the Borrower of a material portion of its
business or business assets or the suspension (other than in circumstances of
Force Majeure) of construction, operations or activities in respect of the
Project.

23.1.7 Non-payment

Non-payment of any amount due by the Borrower in terms of this Agreement.

23.1.8 Insolvency

	23.1.8.1	 	The Borrower is, or is deemed for the purposes of Applicable Law,
to be unable to pay its debts as they fall due or admits in writing its
inability to pay its debts as they fall due; or
	 
	23.1.8.2	 	any third party takes any action, steps or proceedings against the
Borrower -

 

 

Page 63

	23.1.8.2.1	 	for compulsory, provisional or final sequestration, winding-up,
liquidation, compromise, administration order, curatorship,
judicial management, dissolution, or administration; or
	 
	23.1.8.2.2	 	for the appointment of a receiver, administrator, trustee,
liquidator, judicial manager or similar officer or of any or all of
the Borrower’s assets or revenues; or
	 
	23.1.8.3	 	the Borrower itself takes any action, steps or proceedings -
	 
	23.1.8.3.1	 	for voluntary or compulsory, provisional or final sequestration,
winding-up, liquidation, compromise, administration order,
curatorship, judicial management, dissolution, or administration
in relation to itself or its assets; or
	 
	23.1.8.3.2	 	for the appointment of a receiver, administrator, trustee,
liquidator, judicial manager or similar officer or of any or all of its
own assets or revenues;

23.1.9 Attachment

Any attachment, sequestration, execution or distress is levied against, or an
encumbrancer takes possession of the whole or any part of the property,
undertaking or assets of the Borrower; or the insolvency, liquidation, bankruptcy,
administration, receivership, curatorship or distress or execution against any
material assets of the Borrower.

23.1.10 Default Judgments

The Borrower suffers any default judgment against it to remain unsatisfied for
more than 10 (ten) business days after having become aware thereof or rescission
of any such judgment has not been obtained within 20 (twenty) business days after
the judgment came to the attention of the Borrower.

 

 

Page 64

23.1.11 Claim of immunity

Any party to a Project Document or Finance Documents being entitled to claim for
itself or any of its assets or revenues immunity from suit, execution, attachment or
other legal process.

23.1.12 Moratorium

Any procedural step (including petition, proposal or convening a meeting) being taken
with a view to a composition, assignment, arrangement, standstill or moratorium with
any creditors of the Borrower.

23.1.13 Completion

A failure by the Borrower to achieve Technical Completion within 6 (six) months of the
scheduled Technical Completion Date as set out in the Base Case Financial Model, or
such other date as the Parties may agree to in writing.

23.1.14 Material Adverse Change

A Material Adverse Change occurs.

	 	23.1.15	 	Force Majeure

An event of Force Majeure continuing for a period in excess of 60 (sixty) days (save
that such Force Majeure event shall not be an Event of Default if payments due in terms of this Agreement continue to be made in full
and when due).

23.1.16 Untrue Statement

A material representation, warranty or statement made or repeated in or in connection
with the Project Documents or Finance Documents or in any document delivered by or on
behalf of the Borrower under or in connection with the Project Documents or Finance
Documents is untrue or incorrect in any material respect, when made or repeated.

 

 

Page 65

23.1.17 Civil War etc

Civil war, insurrection, rebellion or revolution occurs in the Territory or change in the
commercial, economic political situation in the Territory occurs which results in a Material
Adverse Change, as determined in the Lender’s sole and absolute discretion.

23.1.18 Cross Default

An event of default (howsoever described) occurs under any document relating to the Financial
Indebtedness of the Borrower or any Financial Indebtedness becomes prematurely due and payable
or is placed on demand as a result of an event of default (howsoever described) under the
document relating to that Financial Indebtedness, whether or not the Borrower is disputing any
such event of default, acceleration or placing on demand.

23.1.19 Acceleration

The Borrower fails to pay any Financial Indebtedness when due and any such failure continues for
more than any applicable period of grace, if any, or any such Financial Indebtedness becomes
prematurely due and payable or is placed on demand, or any creditor of the Borrower becomes
entitled to declare any such Financial Indebtedness prematurely due and payable or to place it
on demand, or any undertaking, acknowledgement, suretyship, guarantee or indemnity given by the
Borrower in respect of Financial Indebtedness is not paid in accordance with its terms when a
demand is made thereunder within 5 (five) business days of the due date for payment thereunder.

23.1.20 Encumbrances

Any Encumbrance securing Financial Indebtedness over any asset of the Borrower becomes
enforceable.

 

 

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23.1.21 Compliance with Authorisations and Agreements

At any time any material agreement or Authorisation applicable or required to be
executed, complied with, fulfilled, obtained, amended, renewed, extended or
performed in order -

	23.1.21.1	 	to ensure the legality, validity, binding nature and enforceability of
the Borrower’s obligations under the Project Documents or
Finance Documents; or
	 
	23.1.21.2	 	to carry out the Project and of the Borrower’s business and
operations generally; or
	 
	23.1.21.3	 	to enable any person lawfully to enter into and perform the
obligations expressed to be assumed by it in the Project
Documents or Finance Documents to which it is a party, or
	 
	23.1.21.4	 	to ensure that the obligations expressed to be assumed by any
person in the Project Documents or Finance Documents to which
such person is a party are legal, valid and binding and enforceable
against it in accordance with the terms thereof,

is not done, fulfilled, obtained, renewed, extended, complied with or performed
when so required or is otherwise lost, terminated, adversely amended, not renewed,
revoked, expropriated, nationalised, confiscated, suspended or varied or ceases to
be in full force and effect.

	 	23.1.22	 	Operation of Project

The Borrower is prevented by Applicable Law or pursuant to any Authority decision
or action or for any other reason from conducting and/or operating all or part of
the Project where such interruption of service may be expected (in the sole
opinion of the Lender) to result in a Material Adverse Change.

 

 

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23.1.23 Change of Business

A change in the business or operations of the Borrower occurs or the Borrower
ceases, or threatens to abandon or cease to carry on all or a substantial part of
its operations, in the Lender’s sole and absolute discretion and determination.

23.1.24 Amendment to Facility

An alteration or amendment to the Facility repayment schedule or any Repayment Dates
occurs other than in accordance with the terms of this Agreement.

23.1.25 Illegality

There is a change in Applicable Law which renders, will render or may have the effect
of rendering any of the Project Documents or Finance Documents or anything done or to
be done pursuant thereto illegal, invalid or unenforceable and the Parties in good
faith fail to rectify such illegality, invalidity or enforceability (provided such
illegality, invalidity or enforceability is capable of being rectified), or do not
agree upon alternative acceptable provisions, within 5 (five) business days or such
longer period as may be agreed between the Parties in writing, after receipt of
notice from the Lender advising the Borrower of the relevant change.

23.1.26 Damage or Destruction

A material portion of the Borrower’s and/or the Project’s business assets (including
any systems, plant, hardware and/or software of the Project) are substantially
damaged or destroyed whether through an event of Force Majeure or otherwise and
Insurance will be insufficient to –

	23.1.26.1	 	repair or rebuild the same within a reasonable time and/or
	 
	23.1.26.2	 	fully compensate the Borrower for any loss, where such loss has or is likely to result in
a Material Adverse Change.

 

 

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23.1.27 Insufficient Ore Reserves and Resources

	23.1.27.1	 	In the reasonable opinion of the Lender, the aggregate of
–

	23.1.27.1.1	 	the proved and probable recoverable ore reserves of the Borrower which are charged on a
first ranking basis by the Security; and
	 
	23.1.27.1.2	 	the resources of the Borrower which are charged on a first ranking basis by the
Security (taking into account the Borrower’s historic and probable future resource
conversion factors),

are such that the Borrower will be unable to meet its present and future obligations
under the Project Documents or this Agreement and the Borrower does not address the
concerns of the Lender in respect of the shortfall to the Lender’s satisfaction
(acting reasonably) within 30 (thirty) days of receiving notice of the Lender’s
opinion or such longer period as the Parties may agree in writing.

23.1.28 Nationalisation

Any of the Shares or any part of the Project, the Borrower Revenues or the Project
Works or assets, Hidden Valley Tenements or any other mineral and/or mining rights
of the Borrower are seized, nationalised, expropriated, requisitioned and/or
acquired, save for an allocation of Shares to the Territory, a land owner group or
its organs of government in accordance with any terms and conditions of the Hidden
Valley Tenements or the provisions of any Applicable Law in place and existing on
the Signature Date;

23.1.29 Change in Control

Unless otherwise permitted by, provided for or authorised by –

	23.1.29.1	 	the Project Documents;
	 
	23.1.29.2	 	a term or condition of the Hidden Valley Tenements or a provision of any agreement,
Permitted Encumbrance or Applicable Law in

 

 

Page 69

	 	 	place and existing on the Signature Date and disclosed to the Lender in writing;
or

	23.1.29.3	 	written agreement of the Lender in the Lender’s sole discretion,

100% (one hundred percent) of the Shares cease to be directly and beneficially owned
or controlled by members of the Group;

23.1.30 Change in Law

A Change in Law occurs which constitutes a Material Adverse Change.

24 TERMINATION

	Forthwith upon the occurrence of an Event of Default or Potential Event of Default and at any
time thereafter, if such event is continuing, the Lender shall be entitled, without prejudice to
any other rights which the Lender might have, by notice to the Borrower issued by the Lender, to
–

	24.1	 	declare any amounts available but undrawn under the Facility automatically cancelled
and to declare that no further Advances be made available for draw down under such Facility;
and/or
	 
	24.2	 	declare that the obligations of the Lender in terms of this Agreement shall be cancelled
forthwith, whereupon the same shall be so cancelled; and/or
	 
	24.3	 	accelerate and declare all amounts owing in terms of this Agreement immediately due and
payable, notwithstanding that such amounts may not otherwise have been due and payable,
whereupon the same shall become immediately due and payable, including fees, penalties, costs
and charges; and/or
	 
	24.4	 	claim payment of such damages including, costs and other amounts incurred in consequence of
such Event of Default from the Borrower in terms of this Agreement; and/or

 

 

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	24.5	 	enforce all or any of the Borrower’s rights under the Project Documents or Finance
Documents (including, without limitation, any right of the Borrower to terminate any of
these documents or agreements), for which purpose the Borrower irrevocably appoints the
Lender as its agent to perform all acts and to sign all documents and all Authorisations
on its behalf necessary to enforce such rights; and/or

	 	24.5.1	 	take legal action to take-over, perfect, attach, realise or sell any
Security taken or referred to in this Agreement in accordance with Applicable
Law; and/or

	24.6	 	set off any obligation (whether or not mature) owed by the Borrower under this Agreement
against any other obligation (whether or not mature) owed by the Lender to the Borrower,
regardless of the place of payment, booking branch or currency of either obligation. If the
obligations are in different currencies, the Lender may convert either obligation at a market
rate of exchange for the purpose of the set-off. If either obligation is unliquidated or
unascertained, the Lender may set off an amount estimated by it in good faith to be the amount
of that obligation.

	25	 	APPLICATION OF PAYMENTS AFTER AN EVENT OF DEFAULT AND NON-CANCELLATION

	25.1	 	Should this Agreement, notwithstanding the occurrence of an Event of Default, not be
cancelled, and should the Lender in the exercise of any
of its rights under clause 24 of this Agreement be receiving periodic payments or
Instalments from the Borrower, the Lender or any person nominated by the Lender shall
apply the payments received in the following order –

	 	25.1.1	 	firstly, to pay Project Costs;
	 
	 	25.1.2	 	secondly, to make payment of all costs, charges, expenses and
liabilities (and all interest thereon) incurred by the Lender in connection
with carrying out or

 

 

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	 	 	 	purporting to carry out its duties and exercising their powers and
discretions under the Finance Documents;

	 	25.1.3	 	thirdly, to make payment of interest and capital owed to the Lender (excluding
damages suffered by the Lender) in terms of this Agreement;
	 
	 	25.1.4	 	fourthly, to make payment of any damages suffered by the Lender; and
	 
	 	25.1.5	 	fifthly, to the extent that there is any surplus, to make a mandatory
prepayment of the Facility Outstandings.

	25.2	 	The Lender may in its discretion vary the order set out in the priority of payments
contained in this clause 25, which will override any appropriation made by the Borrower.

26 ARBITRATION

	26.1	 	Subject to clause 11, any claim, dispute or conflict between the Parties pursuant to this
Agreement will be referred for arbitration subject to the then prevailing Rules of Arbitration
of the International Chamber of Commerce.
	 
	26.2	 	The place of arbitration shall be Johannesburg. The arbitration shall be conducted in the
English language and any documents presented at such arbitration in a language other than
English shall be accompanied
by an English translation thereof. The arbitrators shall decide such dispute in
accordance with the laws of the Republic of South Africa, being the jurisdiction of
incorporation of the Lender’s holding company.
	 
	26.3	 	The arbitrator’s decision shall be final and binding on all the parties and be effective as
it was made an order of any competent court at the instance of any Party. When the arbitrator
delivers his award he will do so by way of a written statement incorporating the findings of
fact determined by him and forming the reasons for the award as well as the full reason for
justifying the award.

 

 

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	26.4	 	Nothing herein contained will be deemed to prevent or prohibit a Party to the
arbitration from applying to the appropriate court for urgent relief or for judgment in
relation to a liquidated claim.

27 CONFLICTS

	 	 	In the case of any conflict or inconsistency between this Agreement (with respect to the
rights and obligations of the Parties prior to enforcement and the conditions in terms of
which Security interest may be enforced), and any Security Document, this Agreement shall
prevail.

28 ALLOCATION OF PAYMENTS

	 	 	Notwithstanding anything to the contrary herein contained, the Lender will be entitled to
allocate all and any payments by the Borrower to any indebtedness of the Borrower to the
Lender in terms of this Agreement and the Borrower waives all and any rights that it may
have to name the debt in respect of which such payment is made.

29 INDEMNITY

	 	 	The Borrower hereby indemnifies the Lender against and undertakes to pay the Lender, on
presentation of an invoice from a third party or, where there is no invoice from a third
party, other evidence to the Borrower’s reasonable satisfaction, any cost, claim, loss,
damages, expense (including legal fees) or liability which any Lender may sustain or incur
as a result of -

	29.1	 	the application of Taxes in relation to any payment received or receivable (or any payment
deemed to be received or receivable) under the Finance Documents, subject to clause 22;
	 
	29.2	 	any breach by the Borrower in the performance of any of the obligations expressed to be
assumed by it in the Project Documents or Finance Documents; and
	 
	29.3	 	any actual or alleged breach by the Borrower of any Environmental Law or Environmental
Approval or failure by the Borrower to obtain or comply with any Environmental Law or
Environmental Approval in relation to the Project.

 

 

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30    ILLEGALITY

	 	   	If at any time after the Signature Date it is or becomes unlawful in any jurisdiction, or
contrary to any lawful and binding request from or requirement of any Authority, for the
Lender to perform any of its obligations under this Agreement then the Lender shall promptly
after becoming aware of the same notify the Borrower by way of a certificate signed by a
director or manager of the Lender (or a person of an equivalent or higher level of
authority), whose appointment or designation it will not be necessary to prove, to that
effect and if the Lender so requires, the Borrower shall by not later than such date as the
Lender shall have specified (such date not being earlier than 3 (three) months after the
date of such certificate) repay the Facility Outstandings in full together with any and all
other amounts then due to the Lender under or in terms of this Agreement.

31    RENEGOTIATION

	 	   	The Lender reserves the right to convert the Facility to that repayable on demand, or
renegotiate any of the terms and conditions thereof if a Material Adverse Change occurs
during the Term.

32    SUPPORT CLAUSE

	 	   	The Parties undertake at all times to do all such things, perform all such actions and take
all such steps and to procure the doing of all such steps  as may be open to them and
necessary for or incidental to the putting into effect or maintenance of the terms,
conditions and/or import of this Agreement.

33    CURRENCY INDEMNITY

	33.1	 	If any sum due from the Borrower under a Finance Document (a “Sum”), or any order, judgment
or award given or made in relation to a Sum, has to be converted from the currency (the “First
Currency”) in which that Sum is payable into another currency (the “Second Currency”) for the
purpose of –

 

 

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	 	33.1.1	 	making or filing a claim or proof against the Borrower; or
	 
	 	33.1.2	 	obtaining or enforcing an order, judgment or award in relation to any
litigation or arbitration proceedings,

	 	 	the Borrower indemnifies the Lender against any cost, loss or liability arising out of
or as a result of the conversion, including any discrepancy between -

	 	33.1.3	 	the rate of exchange used to convert that Sum from the First Currency into the
Second Currency; and
	 
	 	33.1.4	 	the rate or rates of exchange available to the Borrower to effect such
conversion.

	33.2	 	The Borrower waives any right it may have in any jurisdiction to pay any amount under the
Finance Documents in a currency or currency unit other than that in which it is expressed to
be payable.

34 NOTICES

	34.1	 	The Parties select as their respective domicilia citandi et executandi the following physical
addresses, and for the purposes of giving or sending any notice provided for or required under
the this Agreement, the following -

	 	 	 	 	 
	Name	 	Physical Address	 	Telefax
	HGM (Isle of Man) Pty Limited

	 	15-19 Athol Street
	 	+44 1624 638333
	 

	 	Douglas Isle of Man IM1 1LB	 	 

For the attention of Company Secretary

	 	 	 	 	 
	Name	 	Physical Address	 	Telefax
	Morobe Consolidated Goldfields Limited

	 	c/- Blake Dawson 

Waldron
	 	+675 309 2099
	 

	 	4th Floor, Mogoru Moto	 	 
	 

	 	Building, Champion	 	 
	 

	 	Parade,	 	 
	 

	 	Port Moresby	 	 
	 

	 	Papua New Guinea	 	 

For the attention of Company Secretary

 

 

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	 	 	or such other address or telefax number as may be substituted by notice given as herein
required. Each of the Parties shall be entitled from time to time by written notice to
the others.
	 
	34.2	 	Any notice addressed to a Party at its physical address shall be delivered by hand, or sent
by telefax.
	 
	34.3	 	Any notice so given -

	 	34.3.1	 	if hand delivered before 16h30 on a business day, will rebuttably be presumed
to have been received on the day of delivery. Any notice hand delivered after
16h30 on a business day, or on a day which is not a business day, will
rebuttably be presumed to have been received on the immediately following
business day; and
	 
	 	34.3.2	 	if sent by telefax before 16h30 on a business day, will rebuttably be presumed
to have been received on the date of successful transmission of the telefax. Any
telefax sent after 16h30 on a business day, or on a day which is not a business
day, will rebuttably be presumed to have been received on the immediately
following business day.

	34.4	 	Nothing shall affect the Lender’s right to serve process in any other manner permitted by
Applicable Law.
	 
	34.5	 	Notwithstanding the above, any notice actually received by the Party to whom the notice is
addressed will be deemed to have been properly given and received, notwithstanding that such
notice has not been given in accordance with the provisions of this clause.

35 CESSION AND ASSIGNMENT OF THE AGREEMENT

	35.1	 	The Lender shall be entitled to cede, assign or otherwise transfer any of its rights or
obligations under this Agreement without first having to obtain the consent of the Borrower.
To the extent that any such cession, assignment or transfer results in a splitting of claims,
the Borrower (to the extent required) hereby consents to such splitting of claims.

 

 

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	35.2	 	Neither this Agreement nor any part, share or interest therein nor any rights or
obligations thereunder may be ceded, assigned, transferred by the Borrower without the
prior written consent of the Lender.

36 CONFIDENTIALITY

	36.1	 	The Parties undertake that during the operation of, and after the expiration, termination or
cancellation of, this Agreement for any reason, they will keep confidential -

	 	36.1.1	 	the contents of this Agreement and all information relating thereto;
	 
	 	36.1.2	 	any information which any Party communicates to another and which is stated to
be or by its nature is intended to be confidential;
	 
	 	36.1.3	 	all other information of the same confidential nature concerning the business
of another party which comes to the knowledge of any party while it is engaged
in terms of this Agreement, including (without being limited to) -

	36.1.3.1	 	details of another party’s financial position, structures and operating results;
	 
	36.1.3.2	 	details of another party’s strategic objectives and planning; and
	 
	36.1.3.3	 	information relating to the another party’s past, present and future
clients, products and services.

	36.2	 	If any Party is uncertain about whether any information is to be treated as confidential in
terms of clause 36.1, it shall be obliged to treat it as such until written clearance is
obtained from the other Party in question.
	 
	36.3	 	The Parties undertake, subject to clause 36.4, not to disclose any information which is to be
kept confidential in terms of clause 36.1, nor to use such information for its own or anyone
else’s benefit.

 

 

Page 77

	36.4	 	Notwithstanding the provisions of clause 36.3, a Party shall be entitled to disclose
any information to be kept confidential if and to the extent only that the disclosure is
bona fide and necessary for the purposes of carrying out its lawful duties in accordance
with Applicable Law.

	36.5	 	The obligation of confidentiality placed on any Party in terms of clause 36.1 shall cease to
apply to a Party in respect of any information which ceases to be secret and confidential
through no fault of such Party.

	36.6	 	Each Party shall give up all papers, correspondence, records, copies and other documents of
every kind concerning or containing any reference to another’s business on the expiration or
termination for any other reason of this Agreement.

37    SEVERABILITY

	 	 	Each provision of this Agreement is severable from the other provisions. Should any
provision be found by a court of competent jurisdiction to be invalid or unenforceable for
any reason, the Parties will consult with one another in good faith in order to agree, if
possible, an alternative provision in accordance with the intent and tenor of this
Agreement. The remaining provisions of this Agreement shall nevertheless remain binding and
continue with full force and effect.

38    GENERAL

	38.1	 	This Agreement constitutes the whole of the agreement between the Parties relating to the
matters dealt with therein and save to the extent otherwise provided no undertaking,
representation, term or condition relating to the subject matter of this Agreement not
incorporated in this Agreement or in the Finance Documents shall be binding on any of the
Parties.

	38.2	 	No variation, addition, deletion, or agreed cancellation will be of any force or effect
unless in writing and signed by or on behalf of the Parties.

	38.3	 	No waiver or deferment of any of the terms and conditions of this Agreement will be binding
or effectual for any purpose unless in writing

 

 

Page 78

	 	 	and signed by or on behalf of the Party giving the same. Any such waiver or deferment
will be effective only in the specific instance and for the purpose given. No failure or
delay on the part of any Party in exercising any right, power or privilege under this
Agreement will constitute or be deemed to be a waiver or deferment thereof, nor will any
single or partial exercise of any right, power or privilege preclude any other or
further exercise thereof or the exercise of any other right, power or privilege.
	 
	38.4	 	This Agreement may be executed in one or more counterparts, each of which shall be deemed an
original, and all of which together shall constitute one and the same agreement as at the date
of signature of the Party last signing one of the counterparts.
	 
	38.5	 	This Agreement will inure for the benefit of and be binding upon the successors in title and
permitted assigns of the Parties or any of them.

39    APPLICABLE LAW AND JURISDICTION

	39.1	 	This Agreement will in all respects be interpreted in accordance with, governed by and
construed under the Laws of the Republic of South Africa.
	 
	39.2	 	Subject to any other provisions of this Agreement, the Parties hereto hereby consent and
submit to the non-exclusive jurisdiction of the Witwatersrand Local Division of the High Court
of the Republic of South Africa in any dispute arising from or in connection with this
Agreement.
	 
	39.3	 	The Borrower hereby irrevocably waives any objection which it might now or hereafter have to
the courts referred to in clause 39.2 being nominated as a forum to hear and determine any
suits, actions or proceedings and to settle any disputes, which may arise out of or in
connection with this Agreement and agrees not to claim that any such court is not a convenient
or appropriate forum.
	 
	39.4	 	Any judgment obtained in the Republic of South Africa in relation to a Finance Document will
be recognised against a Party and enforced in its jurisdiction of incorporation.

 

 

Page 79

	39.5	 	Nothing in this clause 39 shall exclude or limit any right which the Lender may have
(whether under the law of any country, an international convention or otherwise) with
regard to the bringing of proceedings, the service of process, the recognition or
enforcement of Security or any judgment or any similar or related matter in any
jurisdiction.
	 
	39.6	 	The Borrower also hereby irrevocably consents and agrees, for the benefit of the Lender, that
any legal suit, action or proceeding against it with respect to its obligations, liabilities
or any other matter under or arising out of or in connection with this Agreement may be
brought in any court of the Territory or the Isle of Man, and irrevocably accepts and submits
to the jurisdiction of each such court with respect to any such action, suit or proceeding.

40 COSTS, STAMP DUTY AND FEES

	40.1	 	Save as may be otherwise provided herein, the Borrower will bear and pay all legal costs of
or incidental to the negotiation, drafting, preparation and execution of this Agreement and
any amendment thereof.
	 
	40.2	 	The Borrower agrees and undertakes to reimburse the Lender on demand with any and all other
pre-agreed costs of and incidental to this Agreement, as well as all other reasonable costs
and expenses (including legal costs on the de facto scale as between attorney-and- own-client)
which the Lender may at any time incur in or about the exercise of any of its rights against
the Borrower in terms of the Finance Documents, including collection commission, tracing fees,
valuation charges, transport costs, costs of Advisers and other reasonable expenses in
connection therewith.
	 
	40.3	 	If any amount payable to the Lender in terms of this Agreement in general, are stated as
being exclusive of value added tax, then the Borrower will in addition to a stated amount pay
any value added tax thereon to the Lender, against delivery by the Lender to the Borrower of a
valid tax invoice in respect thereof.

 

 

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	40.4	 	In addition, the Borrower shall be liable for and shall pay all stamp duties and
other costs of and incidental to the drafting, preparation and entering into of the
Project Documents or the Finance Documents (together with value-added tax thereon, if
any), and the registering of any Security Document in terms of Applicable Law.

 

 

Page 81

Signed on behalf of the Parties as set out below, each signatory hereto warranting that he or
she has due authority to do so:

SIGNED at                                          on                          
           2007.

	 	 	 	 	 	 	 
	 

	 	 	 	For and on behalf of –	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	HGM (ISLE OF MAN) (PTY) 

LIMITED	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	 	 	Signature:	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	 	 	Name of Signatory:	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	 	 	Designation of Signatory:	 	 

SIGNED at                                          on                          
           2007.

	 	 	 	 	 	 	 
	 

	 	 	 	For and on behalf of -	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	MOROBE CONSOLIDATED 

GOLDFIELDS
LIMITED	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 

	 	 
	Signature:

	 	 	 	Signature:	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 

	 	 
	Name of Signatory:

	 	 	 	Name of Signatory:	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 

	 	 
	Designation of Signatory:

	 	 	 	Designation of Signatory:

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