INDEPENDENCE GROUP NL ANNUAL REPORT 2017

OVERVIEW Tropicana is located on the western edge of the Great Victoria Desert of which the Traditional Owners and custodians emanate from the Wongatha and Spinifex peoples. It is a Joint Venture of which IGO owns 30% and AngloGold Ashanti holds 70% and is the manager. IGO targeted and pegged the area containing the current gold reserves in 2001. AngloGold Ashanti farmed into the project in 2002, discovering the Tropicana, Havana and Boston Shaker gold deposits in 2005, 2006 and 2010 respectively. The decision to develop the Tropicana Gold Mine was announced in November 2010 following completion of a positive Bankable Feasibility Study. Mining of the Havana deposit commenced in 2012 with the first gold being produced in September 2013. In October 2015, the Tropicana Gold Mine achieved its 1-million-ounce milestone. FY17 PRODUCTION Tropicana gold production for FY17 exceeded expectation at 431,625oz (on a 100% basis) and cash costs and All in Sustaining Costs were $817/oz produced and $1,162/oz sold respectively. During the year, a total of 82.1Mt of material was mined and hauled ex-pit. This material comprised of 7.9Mt of full grade ore (>0.6g/t), 1.0Mt of marginal ore (grading between 0.4 & 0.6g/t Au) and 73.2Mt of waste material. Full grade ore sources were the Havana pit, the Boston Shaker Pit and Tropicana with the average run-of-mine grade for full grade ore (>0.6g/t Au) being 2.05g/t Au for the year. ATTRIBUTABLE PRODUCTION IGO’s attributable gold production during FY17 was 129,487oz and IGO’s attributable share of gold refined and sold was 128,601oz. TROPICANA OPERATIONS Open pit mining operations achieved a 17% increase above budget for the 12 months ending 30 June 2017, achieving 33.7 million BCM’s. A CAT 6060 (600t class) hydraulic shovel was successfully introduced to the open pit mining operation which has resulted in overall improvement in mining efficiencies. The shovel has delivered higher productivities and lower unit costs. It is capable of mining higher benches than currently employed at Tropicana and work is underway to optimise bench heights in both ore and waste. A processing rate in excess of 7.6Mtpa was achieved during the year following the completion of the process plant expansion and optimisation project, with additional upgrades scheduled in FY18 to target further production increases. LONG ISLAND STUDY Work continued during the year on the Long Island Study, which is investigating cutbacks to the Boston Shaker, Havana and Havana South open pits. The mining strategy includes using the completed Tropicana pit as a void into which waste will be backfilled, significantly reducing waste haulage costs. As noted previously, this approach considers a strip mining technique more commonly used in the coal mining industry that has the effect of reducing waste haulage distance by backfilling areas previously mined and hence lowering the mining cost. The study is expected to be completed in the December 2017 quarter. NEAR MINE EXPLORATION An extension drilling program continued during the first half of FY17 to form the basis of the Mineral Resource for the Long Island Study, based on a strip mining strategy designed to significantly reduce waste mining costs. Mineralisation remains open with high-grade ore shoots defined at both Boston Shaker and Havana South. OPERATIONS— TROPICANA JV NAMEPLATE PROCESSING CAPACITY INCREASED BY 29% TO 7.5MTPA IGO ANNUAL REPORT 2017— 19