Kumba Iron Ore earnings reconciliation

Anglo American wishes to draw attention to Kumba Iron Ore Limited's announcement of its results for the year ended 31 December 2016. Kumba Iron Ore Limited reported headline earnings of R8,724 million.

Anglo American will report underlying earnings in respect of Kumba Iron Ore Limited of $438 million for the year ended 31 December 2016, which takes into account certain adjustments.

(1)These items are included in Headline earnings but are special items so are excluded from Anglo American underlying earnings.

Anglo American will report results for the year ended 31 December 2016 on 21 February 2017. The above figures are unaudited.

Underlying earnings

Underlying earnings is profit attributable to equity shareholders before special items and remeasurements, and is therefore presented after net finance costs, income tax and non-controlling interests. Special items are those items of financial performance that the Group believes should be separately disclosed to assist in the understanding of the underlying financial performance achieved by the Group.