South32 Regulatory News (S32)

5th December 2017

South32 Limited

(Incorporated in Australia under the Corporations Act 2001)

(ACN 093 732 597)

ASX / LSE / JSE Share Code: S32ISIN: AU000000S320

south32.net

South32 Limited

SOUTH32 STRATEGY AND BUSINESS UPDATE PRESENTATION

South32 Limited (ASX, LSE, JSE: S32, ADR: SOUHY) (South32) management will meet with equity analysts and investors today in Perth, Australia to discuss its strategy and operational performance.

Speaking at the event, Chief Executive Officer, Graham Kerr said, "Our investor day provides another opportunity to reiterate the core elements of our strategy, following on from our Annual General meeting two weeks ago. I am pleased to reaffirm prior FY18 production guidance for our operations and provide production and unit cost guidance for Illawarra Metallurgical Coal for the first time, having restarted one longwall at the Appin colliery in October 2017. I can also confirm that Sustaining capital expenditure of US$470M1 is now expected in FY18 (versus prior expectations of US$500M), with two thirds of the reduction associated with the deferral of underground development at Appin."

A copy of the presentation slides is available on our website www.south32.net and will be submitted to the National Storage Mechanism and available for inspection at www.hemscott.com/nsm.do.

Illawarra Metallurgical Coal guidance update

Saleable production of 4.5Mt (3.35Mt metallurgical coal, 1.15Mt energy coal) is now projected for Illawarra Metallurgical Coal in FY18 at an operating unit cost of US$130/t2. Production will be weighted to the second half of FY18 given the recent outage at the Appin colliery.

We expect to return the Appin colliery to its prior two longwall configuration in the December 2018 quarter, after which we intend to ramp-up Illawarra Metallurgical Coal production safely and sustainably towards historical rates of more than 8Mtpa.

Sustaining capital expenditure for Illawarra Metallurgical Coal is now expected to be US$120M in FY18 (previously US$150M)1.

About South32

South32 is a globally diversified mining and metals company with high quality operations in Australia, Southern Africa and South America. 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 have a simple strategy to maximise the potential of our assets and shareholder returns by optimising our existing operations, unlocking their potential and identifying new opportunities to compete for capital.

Further information

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

JSE Sponsor: UBS South Africa (Pty) Ltd

5 December 2017

1. FY18e Sustaining capital guidance includes the influence of exchange rates, and is predicated on various assumptions for FY18, including: an AUD:USD exchange rate of 0.74; a USD:ZAR exchange rate of 14.17; a USD:COP exchange rate of 2,961 and a USD:BRL exchange rate of 3.33; all of which reflected forward markets as at May 2017 or our internal expectations. Total Sustaining capital expenditure includes equity accounted investments.

2. FY18 operating unit cost guidance includes royalties and the influence of exchange rates, and is predicated on various assumptions, including an average blended coal price of US$119/t and an AUD:USD exchange rate of 0.74.

Forward-looking statements

This release contains forward-looking statements, including statements about currency exchange rates, commodity prices, production forecasts, plans, development decisions, exploration and capital expenditure. These forward-looking statements reflect expectations at the date of this release; however, they are not guarantees or predictions of future performance. 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 release. Readers are cautioned not to put undue reliance on forward-looking statements. Except as required by applicable laws or regulations, South32 Limited 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.