South32 : Hermosa Project Update Presentation

17 January 2022	South32 Limited
	(Incorporated in Australia under the Corporations Act 2001 (Cth))
	(ACN 093 732 597)
	ASX / LSE / JSE Share Code: S32 ADR: SOUHY
	ISIN: AU000000S320
	south32.net
	HERMOSA PROJECT UPDATE PRESENTATION

South32 Limited (ASX, LSE, JSE: S32; ADR: SOUHY) (South32) will hold a conference call at 11:00am Australian Western Standard Time (2:00pm Australian Eastern Daylight Time) on 17 January 2022 to provide an update of the Hermosa project including Q&A, the details of which are as follows:

Conference ID:

Please pre-register for this call at link.

A presentation is attached. Following the conference call a recording will be available on the South32 website (https://www.south32.net/investors-media/investor-centre/presentations-reports-speeches).

About us

South32 is a globally diversified mining and metals company. Our purpose is to make a difference by developing natural resources, improving people's lives now and for generations to come. We are trusted by our owners and partners to realise the potential of their resources. We produce bauxite, alumina, aluminium, metallurgical coal, manganese, nickel, silver, lead and zinc at our operations in Australia, Southern Africa and South America. With a focus on growing our base metals exposure, we also have two development options in North America and several partnerships with junior explorers around the world.

Investor Relations

Alex Volante	Tom Gallop
T	[phone]	T	+61	8 9324 9030
M	[phone]	M	+61	439 353 948
E	[e-mail]	E	[e-mail]
Media Relations
James Clothier	Jenny White
M	[phone]	T	+44	20 7798 1773
E	[e-mail]	M	+44	7900 046 758
		E	[e-mail]

Further information on South32 can be found at www.south32.net.

Approved for release by Graham Kerr, Chief Executive Officer JSE Sponsor: UBS South Africa (Pty) Ltd 17 January 2022

Registered Office Level 35 108 St Georges Terrace Perth WA 6000 Australia

ABN 84 093 732 597 Registered in Australia

HERMOSA PROJECT UPDATE

17 January 2022

IMPORTANT NOTICES

This presentation should be read in conjunction with the "Hermosa Project Update" announcement released on 17 January 2022, which is available on South32's website (www.south32.net) and any other disclosures made to the stock exchanges since this date. Figures in italics indicate that an adjustment has been made since the figures were previously reported.

FORWARD-LOOKING STATEMENTS

This presentation contains forward-looking statements, including statements about trends in commodity prices and currency exchange rates; demand for commodities; production forecasts; plans, strategies and objectives of management; capital costs and scheduling; operating costs; anticipated productive lives of projects, mines and facilities; and provisions and contingent liabilities. These forward-looking statements reflect expectations at the date of this presentation, however they are not guarantees or predictions of future performance or statements of fact. They involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results to differ materially from those expressed in the statements contained in this presentation. Readers are cautioned not to put undue reliance on forward-looking statements. South32 makes no representation, assurance or guarantee as to the accuracy or likelihood or fulfilment of any forward-looking statement or any outcomes expressed or implied in any forward-looking statement. Except as required by applicable laws or regulations, the South32 Group does not undertake to publicly update or review any forward-looking statements, whether as a result of new information or future events. Past performance cannot be relied on as a guide to future performance. South32 cautions against reliance on any forward-looking statements or guidance, particularly in light of the current economic climate and the significant volatility, uncertainty and disruption arising in connection with COVID-19. The denotation (e) refers to an estimate or forecast year.

NON-IFRS FINANCIAL INFORMATION

This presentation includes certain non-IFRS financial measures, including Underlying earnings, Underlying EBIT and Underlying EBITDA, Basic Underlying earnings per share, Underlying effective tax rate, Underlying EBIT margin, Underlying EBITDA margin, Underlying return on invested capital, Free cash flow, net debt, net cash, net operating assets, Operating margin and ROIC. These measures are used internally by management to assess the performance of our business, make decisions on the allocation of our resources and assess operational management. Non-IFRS measures have not been subject to audit or review and should not be considered as an indication of or alternative to an IFRS measure of profitability, financial performance or liquidity.

NO OFFER OF SECURITIES

Nothing in this presentation should be read or understood as an offer or recommendation to buy or sell South32 securities or be treated or relied upon as a recommendation or advice by South32.

RELIANCE ON THIRD PARTY INFORMATION

Any information contained in this presentation that has been derived from publicly available sources (or views based on such information) has not been independently verified. The South32 Group does not make any representation or warranty about the accuracy, completeness or reliability of the information. This presentation should not be relied upon as a recommendation or forecast by South32.

NO FINANCIAL OR INVESTMENT ADVICE - SOUTH AFRICA

South32 does not provide any financial or investment 'advice' as that term is defined in the South African Financial Advisory and Intermediary Services Act, 37 of 2002.

MINERAL RESOURCES AND ORE RESERVES

Clark Deposit scoping study cautionary statement: The scoping study referred to in this presentation is based on low-level technical and economic assessments and is insufficient to support estimation of Ore Reserves or to provide assurance of an economic development case at this stage, or to provide certainty that the conclusions of the scoping study will be realised. The study is based on 60% Indicated and 40% Inferred Mineral Resources (refer to footnotes (slide 29) for cautionary statement)..

Production Targets cautionary statement: The information in this presentation that refers to Production Target and forecast financial information is based on Measured (20%), Indicated (62%), Inferred (14%) Mineral Resources and Exploration Target (4%) for the Taylor Deposit. The Mineral Resources underpinning the Production Target have been prepared by a Competent Person in accordance with the JORC Code (refer to footnotes (slide 29) for cautionary statement). All material assumptions on which the Production Target and forecast financial information is based is provided in the "Hermosa Project Update" announcement released on 17 January 2022. There is low level of geological confidence associated with Inferred Mineral Resources and there is no certainty that further exploration work will result in the determination of Indicated Mineral Resources or that the Production Target will be realised. The potential quantity and grade of the Exploration Target is conceptual in nature. In respect of Exploration Target used in the Production Target, there has been insufficient exploration to determine a Mineral Resource and there is no certainty that further exploration work will result in the determination of Mineral Resources or that the Production Target itself will be realised. The stated Production Target is based on South32's current expectations of future results or events and should not be solely relied upon by investors when making investment decisions. Further evaluation work and appropriate studies are required to establish sufficient confidence that this target will be met. South32 confirms that inclusion of 18% of tonnage (14% Inferred Mineral Resources and 4% Exploration target) is not the determining factor of the project viability and the project forecasts a positive financial performance when using 82% tonnage (20% Measured and 62% Indicated Mineral Resources). South32 is satisfied, therefore, that the use of Inferred Mineral Resources and Exploration Target in the Production Target and forecast financial information reporting is reasonable.

Competent Persons Statement and cautionary statement - Exploration Results and Exploration Target: The information in this presentation that relates to Exploration Results and Exploration Targets for Hermosa (including Peake) was declared in the "Hermosa Project Update" announcement released on 17 January 2022 and is prepared by a Competent Person in accordance with the requirements of the JORC Code. South32 confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement. South32 confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcement. In respect of those Exploration Targets, The potential quantity and grade is conceptual in nature. There has been insufficient exploration to determine a Mineral Resource and there is no certainty that further exploration work will result in the determination of Mineral Resources.

SLIDE 2

HERMOSA HIGHLIGHTS

Taylor PFS demonstrates its potential to be Hermosa's first development and deliver attractive returns over multiple stages

Potential to be a globally

significant producer of metals critical to a low carbon future

A low carbon, low impact		Preferred configuration of a
option in the first quartile		conventional 4.3Mtpa plant
of the industry's cost curve		and dual shaft access(a)

Located in Arizona, USA		Taylor's large Mineral Resource
close to infrastructure,		remains open, while activities to
skilled service providers		unlock value from Clark and our
and supply chains		regional exploration are continuing

Notes:	SLIDE 3
a. Refer to important notices (slide 2) for additional disclosure.

RESHAPING OUR PORTFOLIO

Taylor's development(a) would further increase our leverage to the metals critical to a low carbon future

We have substantial production growth focused on green metals		Our portfolio already has significant exposure to the commodities
	which benefit from the uptake of low carbon technologies

Illustrative Group production profile(b)

US$M revenue equivalent at FY21 realised prices

+32%

Group¹		Sierra Gorda proposed	Committed green	Taylor PFS⁴
		copper acquisition²	aluminium growth³
		Aluminium value chain		Base and precious metals
		Manganese ore		Metallurgical coal

Notes:	SLIDE 4
a. Refer to important notices (slide 2) for additional disclosure.

1. Illustrative production growth is calculated using FY21 realised prices.