APPLICABLE FROM 1 SEPTEMBER 2006

Management Board at its meeting held on 21 August 2006 approved the following allowances for trips commencing on or after 1 September 2006:

1. FOREIGN TRIPS

The allowance of USD100 per 24 hour period of absence remains unchanged.

2. LOCAL TRIPS

2.1 Trips longer than 8½ hours but less than 24 hours for which pre-approval has been obtained in terms of A-CORP-001

2.1.1 When employees are obliged to sleep over during this period:

2.1.1.1 actual formal accommodation (e.g. hotel, guest house) expenses, i.e. bed and breakfast in the equivalent of a hotel up to a maximum classification of a three star rating (vouchers required);

2.1.1.2 actual breakfast expenses, if not included in accommodation account, to a maximum of R50 (vouchers required) plus

• a non-taxable allowance of R6,25 per hour.

2.1.2 When employees do not sleep over during this period

• a taxable allowance of R6,25 per hour (no vouchers required)

2.1.3 Any other actual official expenses such as tollgate fees and parking (vouchers required)

2.2 Trips with absence of longer than 24 hours

2.2.1 Actual formal accommodation (e.g. hotel, guest houses) expenses, i.e. bed and breakfast in the equivalent of a hotel up to a maximum classification of a three star rating (vouchers required)

2.2.2 A non-taxable allowance of R150 per 24 hour period of absence plus R6,25 for every hour thereafter to cover personal expenses such as:

• Lunches
  
• Supper
  
• Expenditure such as laundry, dry cleaning, beverages, telephone calls, including calls home, magazines and newspapers
  
• Tips relating to the above
  
• Any other personal incidental costs
  

3. USE OF PRIVATE VEHICLES FOR OFFICIAL PURPOSES

Employees, who have opted for a motor vehicle benefit as part of their remuneration package, may claim authorized official kilometres travelled in excess of 250 (two hundred and fifty) kilometres per calendar month at the approved kilometre tariff and this is fully taxable.

4. INFORMAL ACCOMMODATION

(Applicable only to employees based in the RSA)

• a taxable amount of R350,00 (all inclusive) per day to be paid for periods up to 13 days, on proof of being absent on approved official duties,
  
• a non-taxable amount of R150,00 (all inclusive) per day from day one will be paid for periods of 14 days and longer against proof of services rendered and of payment to host.

5. A-PRAC-7015

It was also approved that A-PRAC-7015 be implemented as from 1 September 2006.

Kind regards

H W LE ROUX

SENIOR MANAGER:

FINANCIAL ACCOUNTING