Background

• RBC was formed on 1 March 2005 as a joint initiative between Royal Bafokeng Finance and Gandalf Trust.

• Although the formation of RBC has been a fairly recent event, it will draw heavily on the credentials, track record and reputation of its main shareholders.

• A considerable amount of planning has gone into the launch of RBC to ensure that it will achieve its vision and investment objectives.

History

The Bafokeng (“People of the Dew”) are a branch of the Sotho-Tswana people that traveled from central Africa and settled in the Rustenburg valley in the 12th century. During the 1860’s, Kgosi Mokgatle started a land buying programme, carried out by the Lutheran Church and funded by the young men sent to work in the Kimberley diamond fields. In the 1920s, substantial platinum group metal reserves were discovered on Bafokeng land. Royalties paid by mining companies operating on Bafokeng land have been used to uplift the community.

RBF was formed on 1 April 2004 with a very specific investment mandate to become one of the world’s leading, community-based, investment companies. RBF aims to continually improve the economic well being and quality of life of all stakeholders, through investing in businesses that will generate exceptional returns over the long-term and that will directly contribute to the upliftment of the Royal Bafokeng community.

Diversification away from mining is a fundamental RBN objective, with meaningful diversification benefits required within ten years. RBF will take a medium- to long-term perspective and will be an active, involved shareholder. RBF will seek to acquire equity stakes of at least 10% in high quality, listed and unlisted companies, with the ability to increase shareholdings over time. Its medium-term portfolio is unlikely to comprise more than five to eight investments. Financing structures are typically a combination of equity capital and debt secured against the underlying cash flows. The provision of bursaries and training, employment and small business development opportunities within the RBN community will be integral elements of transaction design.

For more information on RBF and the Royal Bafokeng Nation, kindly refer to the website at: {www.bafokengfinance.com}