INDEPENDENCE GROUP NL ANNUAL REPORT 2017

Notes to the consolidated financial statements 30 June 2017 (continued) 27 Share-based payments (continued) Vesting of share rights (continued) The Company's TSR performance for share rights issued during the current financial year will be assessed against the following 28 peer group companies: Peer companies * Alacer Gold Corp. * Orocobre Limited * Alumina Limited * Oz Minerals Limited * Beadell Resources Ltd * Pilbara Minerals Limited * BHP Billiton Limited * Perseus Mining Limited * BlueScope Steel Limited * Rio Tinto Limited * Evolution Mining Limited * Regis Resources Limited * Fortescue Metals Group Ltd * Resolute Mining Limited * Gold Road Resources Limited * South32 Limited * Iluka Resources Limited * Saracen Mineral Holdings Limited * Lynas Corporation Limited * St Barbara Limited * Metals X Limited * Sandfire Resources NL * Newcrest Mining Limited * Sims Metal Management Limited * Northern Star Resources Ltd * Syrah Resources Limited * OceanaGold Corporation * Western Areas Limited Employee Share Ownership Award In accordance with the terms of the EIP, the Employee Share Ownership Award (ESOA) was also introduced during the current financial year. The ESOA provides for shares to be issued by the Company to employees for no cash consideration. All employees (excluding executive directors and senior management entitled to participate in the LTI scheme and non-executive directors) who have been continuously employed by the Group for a period of at least three months prior to 1 July are eligible to participate in the ESOA. Under the ESOA, eligible employees may be granted up to $1,000 worth of fully paid ordinary shares in Independence Group NL annually for no cash consideration. The number of shares issued to participants in the scheme is the offer amount divided by the weighted average price at which the Company's shares are traded on the Australian Securities Exchange for the 20 days up to and including the date of grant. 2017 Number 2016 Number Number of shares issued under the plan to participating employees on 7 March 2017 48,443 - Each participant was issued with shares worth $1,000 based on the weighted average market price of $3.97 (2016: $nil). Share rights granted prior to 30 June 2014 Vesting of the performance rights granted to eligible employees of the Company prior to 30 June 2014, and which vested in July 2016, were subject to a combination of the Company’s shareholder return (with a 75 per cent weighting) and return on equity (with a 25 per cent weighting), measured over a three year measurement period. Further information is included in the Remuneration Report. The performance rights will not be subject to any further escrow restrictions once they have vested to the employees. Share trading policy The trading of shares issued to participants under the Company’s EIP is subject to, and conditional upon, compliance with the Company’s employee share trading policy. Non-executive Directors The EIP permits non-executive directors to be eligible employees and therefore to participate in the plan. It is not currently intended that non-executive directors will be issued with performance rights under the EIP and any such issue would be subject to all necessary shareholder approvals. Independence Group NL 82 112 — IGO ANNUAL REPORT 2017 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017