INDEPENDENCE GROUP NL ANNUAL REPORT 2017

Directors' report 30 June 2017 (continued) Significant changes in the state of affairs (continued) The takeover comprised a cash price of $0.19 per share and the acquisition was completed in December 2016. The total cost of the acquisition, including transaction costs, was $22.1 million. This balance included $4.5 million of cash balances acquired and resulted in a net cash outflow for the period of $17.6 million. There have been no other significant changes in the state of affairs of the Group during the year. Events since the end of the financial year On 30 August 2017, the Company announced that a final dividend for the year ended 30 June 2017 would be paid on 22 September 2017. The dividend is 1 cent per share and will be fully franked. On 26 July 2017, the Company reported an interim Mineral Resource estimate for the Nova Operation based on improved geological understanding and results of close spaced diamond core ‘grade control’ drilling on the Nova deposit. The revised Mineral Resource estimate reported ~15% lower tonnage with marginally higher nickel and copper grades. Other than the above, there has been no other transaction or event of a material and unusual nature likely, in the opinion of the Directors, to significantly affect the operations of the Group, the results of those operations, or the state of affairs of the Group, in future financial years. Environmental regulation The Group’s operations are subject to significant environmental regulation under the laws of the Commonwealth and various States of Australia. During the year there were no non-compliance incidents. The Group is subject to the reporting obligations of the National Greenhouse and Energy Reporting Act 2007, under which the Group reports its greenhouse emissions, energy consumption and production. Systems have been put in place to comply with these reporting requirements. The Directors have considered compliance with the National Greenhouse and Energy Reporting Act 2007 which requires entities to report annual greenhouse gas emissions and energy use. The Environmental Policy is available in the Sustainability section of the Company’s website. Information on directors Peter Bilbe - Chairman and Independent Non-executive Director Qualifications BEng (Mining) (Hons), MAusIMM Tenure Board member since March 2009 and Chairman since July 2011. Special responsibilities Mr Bilbe is Chair of the Nomination & Governance Committee and a member of the Remuneration Committee, Audit Committee and Sustainability & Risk Committee. Other directorships Mr Bilbe is currently a director of Intermin Resources Limited. He was also previously a director of Northern Iron Limited. Peter Bradford - Managing Director and Chief Executive Officer Qualifications BAppSc (Extractive Metallurgy), FAusIMM, MSMME Tenure Managing Director and Board member since March 2014. Special responsibilities Mr Bradford is the executive in charge of the day to day management of the Group’s activities, including operations, risk management and corporate development. He is also a member of the Nomination & Governance Committee and Sustainability & Risk Committee. Other directorships Mr Bradford was previously a director of Asanko Gold Inc. Independence Group NL 12 IGO ANNUAL REPORT 2017— 43 DIRECTORS’ REPORT 30 JUNE 2017 (continued)