Sibanye Gold : Operating update for the quarter ended 30 September 2018

Johannesburg, 1 November 2018: Sibanye Gold Limited trading as Sibanye-Stillwater (Sibanye-Stillwater or the Group) (JSE: SGL & NYSE: SBGL) is pleased to present an operating update for the quarter ended 30 September 2018. Financial results are only provided on a six-monthly basis.

SALIENT FEATURES FOR THE QUARTER ENDED 30 SEPTEMBER 2018

•  Solid operational performance from SA and US PGM operations maintained

  -

  collectively contributing 85% of Group adjusted EBITDA¹ during the quarter

•  Financial position improved by the US$500 million Streaming transaction

  • - allowing for a 28% reduction in outstanding bonds (nominal value)

  • - majority of debt only repayable after 2021/22 when Blitz is fully ramped up

•  H1 2018 safety and operational disruptions continue to impact SA gold operations

•  Safety achievement by South African operations of 2.7 million fatality free shifts as at end October 2018

•  Ongoing strategic delivery despite operational disruptions

US dollar

Quarter ended

SA rand Quarter ended

Sep 2017

Jun 2018

306,184 282,972

953 1,028

40.6 46.9

15 16

777 792

1,280 1,307

104.5 50.0

22 12

1,150 1,295

135,585 145,410

197,300 168,842

914 966

59.8 74.7

23 25

695 674

204.9 171.6

13.18 12.65

Sep 2018	KEY STATISTICS	Sep 2018	Jun 2018	Sep 2017
SOUTHERN AFRICA (SA) REGION
PGM operations
4E PGM2 production	kg	9,494	8,801	9,523
Average basket price	R/4Eoz	14,049	13,013	12,551
Adjusted EBITDA1	Rm	695.5	593.6	534.8
Adjusted EBITDA margin1	%	18	16	15
All-in sustaining cost3	R/4Eoz	10,834	10,025	10,229
Gold operations4
Gold production	kg	9,609	9,548	11,576
Average gold price	R/kg	544,542	531,640	542,407
Adjusted EBITDA1	Rm	243.1	632.9	1,377.2
Adjusted EBITDA margin1	%	5	12	22
All-in sustaining cost3	R/kg	582,809	526,833	487,068
UNITED STATES (US) REGION
PGM operations5
2E PGM2 production	kg	4,329	4,523	4,217
PGM recycling5	kg	4,497	5,252	6,137
Average basket price	R/2Eoz	12,592	12,225	12,047
Adjusted EBITDA1	Rm	690.2	945.0	788.3
Adjusted EBITDA margin1	%	21	25	23
All-in sustaining cost3	R/2Eoz	10,789	8,526	9,162
GROUP
Adjusted EBITDA1	Rm	1,628.8	2,171.5	2,700.3
Average exchange rate

oz US$/oz US$m % US$/oz

305,227

1,000

771

oz US$/4Eoz US$m % US$/4Eoz

1,205

17.3

5

1,290

139,178

144,585

896

49.1

21

769

oz oz US$/2Eoz US$m % US$/2EozUS$m R/US$

• 1 The Group reports adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) based on the formula included in the facility agreements for compliance with the debt covenant formula. Adjusted EBITDA may not be comparable to similarly titled measures of other companies. Adjusted EBITDA is not a measure of performance under IFRS and should be considered in addition to and not as a substitute for, other measures of financial performance and liquidity. For a reconciliation of profit/loss before royalties and tax to adjusted EBITDA, see note 24.10 on page 89 of the 2017 Group Annual Financial Statements available athttps://www.sibanyestillwater.com/investors/financial-reporting/annual-reports/2017. Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by revenue.

• 2 The Platinum Group Metals (PGM) production in the SA region is principally platinum, palladium, rhodium and gold, referred to as 4E (3PGM+Au), and in the US region is principally platinum and palladium, referred to as 2E (2PGM).

• 3 See "salient features and cost benchmarks for the quarter ended" on page 6 and 7 for the definition of All-in sustaining cost.

• 4 The gold operations' results for the quarter ended 30 September 2018 include DRDGOLD Limited for two months since acquisition.

• 5 The US PGM operations' underground production is converted to metric tonnes and kilograms, and performance is translated to SA rand. In addition to the US PGM operations' underground production, the operation treats recycling material which is excluded from the 2E PGM production, average basket price and All-in sustaining cost statistics shown. PGM recycling represents palladium, platinum, and rhodium ounces fed to the furnace.

Stock data for the quarter ended 30 September 2018

JSE Limited - (SGL)

Number of shares in issue - at 30 Sept 2018

Price range per ordinary share 2,265,879,337

Average daily volume

- weighted average Free Float Bloomberg/Reuters

2,265,879,337 78% SGLS/SGLJ.J

NYSE - (SBGL); one ADR represents four ordinary shares

Price range per ADR Average daily volumeUS$2.05 to US$2.65 3,527,691

1

OVERVIEW AND UPDATE FOR THE QUARTER ENDED 30 SEPTEMBER 2018

The Group safety performance improved significantly during the third quarter ended September 2018 (Q3 2018), due to ongoing interventions and safety improvement plans, gaining traction at all our operations. These initiatives were supported by continuing tripartite cooperation and input from key stakeholders, arising from the successful, multi-stakeholder Safety Summits that began in May 2018.

The focus on safe production remains the highest priority across the Group, We are pleased to report that the South African (SA) operations achieved over 2.7 million fatality free shifts as at end October 2018.

The SA and United States (US) Platinum Group Metal (PGM) operations maintained solid production results during the quarter, with adjusted EBITDA from the SA PGM operations (excluding Mimosa), 30% higher than for the comparable period in 2017. Adjusted EBITDA and All-in Sustaining Cost (AISC) from the US PGM operations for the quarter, were negatively affected by a deferral of sales for the entire September month until early October. This followed a request from a third party precious metals refiner, to defer deliveries of September production, whilst it undertook a stock take at its US refinery operations.

The significant operational challenges experienced at the SA gold operations during H1 2018 and the additional safety improvement interventions undertaken, continued to affect productivity across the gold operations in Q3 2018, with Driefontein in particular, delivering at substantially reduced production rates. As a result, adjusted EBITDA from the SA gold operations for Q3 2018, was substantially lower than for the comparable period in 2017, with AISC significantly elevated. In light of the underperformance at the SA Gold operations, guidance for the year ended 31 December 2018, has been revised, as detailed in the outlook section below.

Whilst there was a significant improvement in spot precious metal prices towards the end of the Q3 2018, the average price environment for the quarter was lackluster. Precious metal commodity prices in July and August 2018 remained below the quarter averages, which in turn, were only marginally higher than for the comparable period in 2017.

As a result of the reduced contribution from the SA gold operations during the period and the deferral of September sales into October 2018 at the US PGM operations, Group adjusted EBITDA declined by 40% to R1,629 million (US$116 million) relative to Q3 2017. The Group PGM operations contribution to Group adjusted EBITDA increased to 85% from 49% in Q3 2017.

The more positive precious metals and commodity price environment in September 2018, has been sustained into Q4 2018, as general market confidence in the outlook for precious metals and commodities overall, has improved. Together with the rand regressing to seemingly sustained weaker levels, the outlook for the remainder of the year appears to be more positive.

SAFE PRODUCTION

The focus on safe production across our operations continues, with ongoing campaigns to heighten safety awareness and a longer term safety strategy being implemented.

Our intensified focus on safe production since the two tragic safety related incidents in Q2 2018 in the SA region, has yielded positive results. In particular, promoting site specific decisions in alignment with our CARES values by emphasising the importance of the right our employees to withdraw from conditions they feel might not be safe, as well as reinforcing the role of the health and safety representative, has resulted in greater attention being focused by employees on the safe production readiness of our operations and on the application of safe operating practices. The Safety Summit process has also been effective in enlisting deeper cooperation, and clarifying the role of the unions, in collaborative support of safety improvement. The SA gold operations realised substantial improvements in all safety performance rates from H1 2018, with the SA PGM operations also maintaining an improving safety trend, and, injury rates at the US PGM operations tracking to historical levels.

Securing formal accreditation under ISO45001 as the successor to OHSAS18001 for our safety management system has commenced as the basis of a more rigorous application of world class safety requirements, and we also intend to obtain formal assurance under the ICMM code, which we have been honouring in support of our commitment to responsible mining, as the basis for becoming an ICMM member.

Invitations have been issued to eminent global mining safety professionals and academics to become members of our Global Safe Production Advisory Panel that will provide forward looking perspectives towards leading safe production practice. This is complemented by a request seeking to formulate a "Virtual centre of excellence" on the application of multi-disciplinary research to which constructive responses have been received from many of the leading global mining universities and research institutes.

Positively though, since the last fatal accident on 25 August 2018, Sibanye-Stillwater achieved a significant milestone of 2 million fatality free shifts across the SA region in mid-October 2018, rising to 2.7 million fatality free shifts by the end of October. We will continue with our efforts to ensure a safe working environment for employees.

OPERATING REVIEW

SA REGION

SA PGM operations

Attributable 4E PGM production from the SA PGM operations (including Mimosa) of 305,227oz for Q3 2018 was flat relative to Q3 2017 (306,184oz). Kroondal had another record performance, with production increasing by 6% relative to the previous year. Rustenburg's underground production was in line with the prior year but surface production was 1,736oz lower than in Q3 2017, mainly due to a lower feed grade of material treated and test work done in preparation for 2019 toll refining of underground ore.

Underground operating costs for the SA PGM operations (excluding Mimosa) increased by 6% to R11,720/4Eoz (US$834/4Eoz), reflecting the above inflation increases in wages and electricity costs, as well as higher winter power tariffs.

Chrome production of 204,277 tonnes (125,992 tonnes at Rustenburg and 78,285 tonnes at Kroondal) was similar to levels produced in Q2 2018, volumes sold for the quarter were lower than for Q 2 2018 however, due to timing of sales, which together with a lower average chrome price of US$169/tonne for Q3 2018 (S$196/tonne for Q2 2018), impacted on by-product credits. AISC (which includes sustaining capital expenditure and royalties, net of by-product credits, per 4E ounce of PGM produced) for the SA PGM operations was consequently 5% higher than for Q3 2017 at R10,834/4Eoz (US$771/4Eoz), but within guidance for the 2018 year.

The SA PGM operations (excluding Mimosa) reported a 30% increase in adjusted EBITDA to R696 million (US$50 million) for Q3 2018, and contributed 43% of the Group adjusted EBITDA. Attributable adjusted EBITDA from Mimosa, of approximately R111 million (US$8 million) is not included in Group adjusted EBITDA, as it is equity accounted separately.

SA gold operations

As announced on 1 August 2018, all conditions precedent to the DRDGOLD Limited (DRDGOLD) transaction were met and the transaction was implemented on 31 July 2018. Sibanye-Stillwater consolidated DRDGOLD in its operating and financial results from 1 August 2018 and the current operating results and adjusted EBITDA includes 100% of DRDGOLD.

Total gold production from the SA gold operations for Q3 2018 of 9,609kg (308,922oz), includes 757kg (24,323oz) or two months of production from DRDGOLD.

Like-for-like production from the SA gold operations, excluding DRDGOLD, declined 24% to 8,852kg (284,600oz) for Q3 2018 quarter compared to Q3 2017, reflecting the continuing trauma on the organisation from the tragic safety incidents in H1 2018, the ongoing rehabilitation of seismically affected production areas and the suspension of underground mining at the Cooke operations in late 2017.

Lower production output resulted in unit operating cost for the SA gold operations (excluding DRDGOLD) increasing by 20% to R495,798/kg (US$1,097/oz). AISC was 20% higher than for Q3 2017 and increased at Driefontein, Kloof and Beatrix by 50%, 21% and 6% respectively due to lower production, in part due to the continuing effects of the H1 2018 safety incidents.

Adjusted EBITDA (excluding DRDGOLD) for Q3 2018 quarter of R239 million (US$17 million) was 83% lower than for the comparable period in 2017. The SA gold operations contributed 15% to the Group adjusted EBITDA during the quarter.

Rehabilitation of the footwall access on the western side of Masakhane continues and is on track to begin building up production from the end of Q4 2018 with completion expected in Q1 2019. The ongoing effects and the trauma caused by the H1 safety incidents have been more severe than anticipated resulting in 2018 annual guidance being revised accordingly.

US REGION

US PGM operations

Underground 2E PGM production of 139,178oz for Q3 2018, was 3% higher than for the comparable period in 2017. Early Q3 mine production shortfalls at the Stillwater Mine were recovered at the end of the quarter. Production rates for Q4 2018 are anticipated to be higher due to a second stope block at Blitz coming on-line.

AISC of US$769/2Eoz was higher year-on-year, largely due to higher maintenance costs and planned outages at the metallurgical complex, as well as the temporary deferral of by-product sales due to the September month stock take at the third party refinery. With the ramp-up of the second stope block at Blitz in Q4 2018, AISC for the last quarter is anticipated to be substantially lower. The expected sale additional month's production (four months in Q4 2018), is likely to benefit adjusted EBITDA, with additional by-product credits consequently benefiting AISC.

Due to the ongoing rebuild and expansion of the second furnace (EF2), recycling throughput has been temporarily reduced at the Columbus Metallurgical Complex. In total, 271,329oz 2E ounces were processed (mined: 126,744 2Eoz and recycled: 144,585 3Eoz) for the quarter, compared to 339,000oz (mined: 141,700 2Eoz and recycled: 197,300 3Eoz) for Q3 2017.

The recycling throughput was 18.4 tonnes of feed material per day for the quarter, compared with 23.0 tonnes per day for Q3 2017.

Processing volumes are expected to normalise once EF2 is brought back online in Q4 2018.

The average 2E PGM basket price in Q3 2018 was US$896/2Eoz, 2% lower than the realized basket price of US$914/2Eoz for Q3 2017. The US PGM operations contributed US$49 million (R690 million) or 42% to Group adjusted EBITDA during the quarter, at an average adjusted EBITDA margin of 21%. This was based on selling only two months production.

The spot 2E PGM basket price is currently over US$1,020/2Eoz, or 14% higher than the average realised price for Q3 2018.

CORPORATE ACTION

Stream financing

On 16 July 2018, Sibanye-Stillwater announced the completion of a gold and palladium stream agreement with Wheaton Precious Metals International Limited (Wheaton International), in terms of which Sibanye-Stillwater has received US$500 million from Wheaton International in exchange for an agreed percentage of planned gold and palladium production from its US PGM operations (comprised of the East Boulder and Stillwater mining operations).

US$395 million of the proceeds were utilised during the quarter to repurchase approximately US$145 million (cash settlement value including accrued interest) of the 6.125% Notes due 27 June 2022 and approximately US$200 million (cash settlement value including accrued interest) of the 7.125% Notes due 27 June 2025, issued by Stillwater Mining Company and approximately US$50 million (cash settlement values including accrued interest) of Sibanye Gold Limited's 1.875% Convertible Bonds, due 26 September 2023. The repurchase resulted in a 28% reduction of outstanding bond nominal values and will result in an approximate US$25 million reduction in annual coupon costs for the Group. The balance of the proceeds were applied towards short term debt repayments. The repayment profile of the Group is well structured with 67% of gross debt maturing only after 2021/22 when it is expected that production from Blitz would reach steady state. Further detail on the stream is available at:https://www.sibanyestillwater.com/investors/events/streaming-transaction.

The proposed Lonmin acquisition

On 18 September 2018, the South African Competition Commission (the Commission) recommended to the South African Competition Tribunal (Tribunal), that the proposed acquisition of Lonmin Plc be approved by the Tribunal, subject to certain conditions, which are agreeable to both Sibanye-Stillwater and the Commission. The Tribunal is the regulatory body which provides final approval for large mergers in South Africa.

The Tribunal hearing which was initially scheduled for 18 and 19 October 2018 was rescheduled for the week of the 12th of November 2018, a ruling on the proposed merger by the Tribunal is anticipated before the end of November 2018. Fulfilment of other conditions precedent, including the approvals of Lonmin and Sibanye-Stillwater shareholders and the courts of England and Wales, is now unlikely to be before the end of 2018 and closure of the proposed transaction is likely to occur in January 2019. Further information on the transaction is available athttps://www.sibanyestillwater.com/investors/transactions/Lonmin.

DRDGOLD

On 1 August 2018, the DRDGOLD transaction was concluded. Sibanye-Stillwater now owns 38.05% (265,000,000 DRDGOLD ordinary shares) of the issued share capital of DRDGOLD. In addition, pursuant to the transaction, Sibanye-Stillwater has an option to subscribe for the Option Shares within 24 months from the date of implementation of the transaction to further attain up to a 50.1% shareholding in DRDGOLD at a 10% discount to the 30 day volume weighted average traded price of a DRDGOLD share on the day prior to the date of exercise of the option. Further information on the transaction is available athttps://www.sibanyestillwater.com/investors/transactions/drdgold.

Altar

On 29 June 2018, Sibanye-Stillwater announced it had entered into an agreement with Regulus Resources Inc. (Regulus) and a newly formed subsidiary of Regulus, Aldebaran Resources Inc. (Aldebaran), to create a strategic partnership to unlock value at the Altar copper-gold project located in Argentina. The partnership unlocks immediate value from this greenfields exploration project to Sibanye-Stillwater, while enabling the experienced Aldebaran team to explore the upside potential of the Altar project by providing it with the exploration focus they bring.

The consideration to Sibanye-Stillwater, for Aldebaran's option to acquire up to an 80% interest in the Altar Project, comprises:

•  An upfront cash payment of US$15 million and a shareholding of 19.9% in Aldebaran to Sibanye-Stillwater

•  A commitment from Aldebaran to carry the next US$30 million of spend at the Altar Project over a maximum of five years, as an initial earn-in of a 60% interest in the Altar Project (the Initial Earn-in)

•  Aldebaran may also elect to earn into an additional 20% interest in the Altar Project by spending an additional US$25 million over a three-year period following the Initial Earn-in.

Sibanye-Stillwater has received the upfront proceeds (US$15 million), while retaining a direct interest in the project of either 40% or 20% (should Aldebaran exercise its additional earn in option) as well as an indirect exposure through its 19.9% shareholding in Aldebaran. Together with the upfront US$15 million received, Aldebaran has issued an aggregate of 15,449,555 Aldebaran shares (19.9% holding) to Sibanye-Stillwater, of the current 77,635,957 issued and outstanding Aldebaran Shares, all in accordance with the JV Agreement. The Aldebaran Shares are expected to begin trading on the TSX Venture Exchange under the ticker symbol "ALDE" in early November 2018.

The transaction successfully closed on 25 October 2018. For more information on this transaction, refer tohttps://www.sibanyestillwater.com/investors/transactions/altar.

Purported class action

Two purported class action lawsuits have been filed against Sibanye Gold Limited (Sibanye-Stillwater), Neal Froneman (the Group CEO) and Charl Keyter (the Group CFO) in the United States District Court for the Eastern District of New York, alleging violations of the US securities laws. The first lawsuit, Case No. 18-cv-03721, was filed on 27 June 2018 by Kevin Brandel, individually and on behalf of all other persons who purchased Sibanye securities between 7 April 2017 and 26 June 2018, inclusive (the "Class Period"). The second lawsuit, Case No. 18-cv-03902, was filed on 6 July 2018 by Lester Heuschen, Jr., also individually and on behalf of members of the Class Period (collectively, the "Class Actions"). The Class Actions allege that certain statements by Sibanye-Stillwater in its annual reports filed with the US Securities and Exchange Commission were false and/or misleading. Specifically, the Class Actions allege that Sibanye made false and/or misleading statements about its safety practices and record and thereby violated the US securities laws. The Class Actions seek an unspecified amount of damages.

As the cases are in the early stages, it is not possible to determine the likelihood of success on the merits or to quantify any potential liability from the Class Actions nor estimate the duration of the litigation. Sibanye-Stillwater intends to defend the cases vigorously.

South African Mining Charter

The revised South African Mining Charter was published towards the end of September 2018 with significant amendments from the consultation draft published in June 2018. While the implementation guidelines scheduled for development by November 2018 are necessary to provide clarity on certain issues and fully understand the implications for Sibanye-Stillwater's mining rights, recognition of the continuing consequences of historical empowerment transactions for the duration of existing mining rights provides improved investment certainty. The Minerals Council will continue to engage on behalf of its members with the Department of Mineral Resources to resolve the issues that remain outstanding.

Gold wage negotiations

The gold wage negotiations in South Africa have progressed to an advanced stage with all the other gold companies in the bargaining unit having concluded various agreements. Sibanye-Stillwater continues to engage the unions in an attempt to reach an affordable yet fair agreement, which does not further compromise the sustainability of its operations. While strike action remains a possibility we will continue to strive to avoid this outcome, but are well prepared to deal with a strike should one transpire.

OUTLOOK

Production rates at our SA and US PGM operations should be sustained in Q4 2018, with the US PGM operations likely to benefit from the sale of deferred September production in October and a partial unwind of inventories.

Precious metal prices have been noticeably higher in October 2018, following relatively depressed average prices in Q3 2018, with the palladium price in particular reflecting the sustained deficit and limited availability of stock. The rand remains volatile, but given the deterioration in the outlook for the South African economy, appears to have established a new base above R14.00/US$, which is significantly weaker than the beginning of the year and will benefit the SA gold and PGM operations.

The SA PGM operations are expected to produce in line with previously guided forecast of 4E PGM production of between 1.1 Moz and 1.15Moz (including Mimosa), with AISC expected to be at the lower end of the guidance of between R10,750/4Eoz and R11,250/4Eoz (US$825/4Eoz and US$860/4Eoz). Capital expenditure is expected to be R1,000 million (US$77m), R200 million (US$15m) lower than previously guided. Cost and capital guidance exclude Mimosa.

The tragic safety incidents in H1 2018, have had a significant and continuing effect on production at the SA gold operations, compounded by losses in areas affected by seismicity and currently subject to rehabilitation. As a result, operational guidance for the SA gold operations in 2018 has been revised and excludes DRDGOLD. Production for the year ending 31 December 2018 is now forecast at between 35,000kg and 36,000kg (1.13Moz and 1.16Moz), with AISC between R550,000/kg and R565,000/kg (US$1,311/oz and US$1,347/oz). Capital expenditure is forecast at approximately R3,000 million (US$230 million).

The dollar costs used in the guidance are based on an average exchange rate of R13.05/US$ for the 2018 year.

2E PGM production guidance from the US PGM operations for the year ending 31 December 2018 is unchanged at between 580,000oz and 610,000oz with AISC guidance between US$640/2Eoz and US$680/2Eoz. Capital expenditure is expected to be up to US$222 million.

NEAL FRONEMAN

CHIEF EXECUTIVE OFFICER