Ma'aden's Strategic Direction

Ma'aden has adopted a "balanced growth strategy" in order to create value for shareholders comparable with other diversified mining companies. The group vision: To be A World Class Minerals Enterprise is best expanded upon in the following statement of strategic direction.

A World Class minerals business in the top ten of the respective industries it enters, in the first quartile of the cash cost curve, through exploiting quality deposits focusing on cost competitiveness and marketing its products globally.

Targeting a reasonable increase in shareholder value and growth, Ma'aden aims to become a diversified Minerals commodity based business focus initially on the current minerals with expansion into other mineral commodities through intensified exploration and development, which will screen the Kingdom for such opportunities over the next 5 years. Downstream industries will be considered if they strengthen our position in certain commodities, whilst also demonstrating a strong fit with Ma'aden's goals and strategy for the Group.

As an Enterprise, Ma'aden will develop best in class capabilities supported by both internal knowledge, an expanded talent base and through joint-venture partnerships, when necessary. Ma'aden aspires to be a leader in CSR through environmentally friendly sustainable operations; education and greater than 50% Saudization.

Ma'aden is currently in the process of diversifying from its historical core business of gold production and industrial grade bauxite, into a broader range of metals and mining activities:

• A fully integrated Diammonium Phosphate (DAP) plant which began operations in 2011 with full capacity being 3 mtpa DAP;
• A magnesite processing plant which began operations in 2011 with full capacity being 80 ktpa DBM and CCM (Dead Burn Magnesia and Caustic Calcined Magnesia);
• An integrated aluminium mining, refining, smelting and rolling mill facility at Ras Al Khair, a project which is a joint venture with Alcoa which will produce 4 mtpa bauxite, 1.8 mtpa alumina, 740 ktpa of aluminium metal, and 380 ktpa rolled products. The smelter and rolling mill will commence production in 2013 while the mine and refinery will commence in 2014.

Ma'aden's 2011-2015 strategy is a combination of capitalizing on the vast expansion currently underway and seeking new opportunities to drive and diversify the next phase of growth beyond 2014/15. The strategy is focusing on 3 main themes:

• Complete development and ramp up of existing projects in a rapid and capital efficient way, while excelling in operational efficiency, productivity and cost effectiveness.
• Make significant and targeted exploration investments in the Kingdom to identify opportunities to expand and diversify into higher return minerals. The Kingdom's geology remains largely under explored and its potential mineral endowment could generate significant revenue potential.
• Consider expansions in project opportunities with higher returns and lower risk or that are strategically imperative to consolidate leadership in existing minerals, with selective expansions into new attractive minerals.

In the longer term, this strategy will allow Ma'aden to become a more diversified mining conglomerate having presence in new mineral value chains for which it has secured attractive mineral resources.