INDEPENDENCE GROUP NL ANNUAL REPORT 2017

Directors' report 30 June 2017 (continued) Remuneration report (continued) FY17 Executive Management Remuneration (continued) Total fixed remuneration (TFR) (continued) TFR (30/6/2017) TFR (30/6/2016) TFR change in FY17 Name Position $ $ % Peter Bradford Managing Director 800,000 750,000 6.7% Keith Ashby Head of Governance & Risk 333,975 333,975 - Rob Dennis Chief Operating Officer 498,225 498,225 - Matt Dusci Chief Growth Officer 420,000 390,000 7.7% Joanne McDonald 1 Company Secretary 280,000 280,000 - Sam Retallack Head of People & Culture 333,975 333,975 - Scott Steinkrug Chief Financial Officer 420,000 390,000 7.7% 1. Joanne McDonald ceased to be a KMP effective 30 June 2017 following an internal restructure of reporting lines. At-risk remuneration - STIs Specific KPIs are set and weighted at the beginning of each year and are designed to drive successful and sustainable financial and business outcomes, with reference to the Company's strategic plan and budgets. The Board assesses and sets the KPIs applicable to the Managing Director, and the Managing Director assesses and sets the KPIs for each of his direct reports in consultation with the Board. This process is cascaded throughout the organisation. FY17 KPIs Prior to the beginning of the FY17 year, the Board determined the KPIs listed in the table below reflected the key result areas of the business. Following a significant review of the Company's Remuneration and Reward policies in 2016, it was decided to substantially increase the weighting related to the financial performance of the Company and reduce the weighting of the individual KPI component. The following table indicates performance of KMP against FY17 KPIs. STIs will be paid to eligible Executives for the results achieved in September 2017: Key Result Area KPI Measure (in summary)* Opportunity Achievement Operations and financial Assessed against budgeted Group underlying NPAT, delivery of Nova first concentrate production and achievement towards full mining and processing capacity. Tropicana and Long delivered significantly better than budget. Jaguar delivered on budget with lower production offsetting higher metal prices. Overall result downgraded due to delays to Nova ramp up. 40% 17.5% Growth Assessed against year on year improvement in Group reserves and completion of planned expansion to broaden tenure in the Fraser Range. Year on year improvement in reserves, primarily due to Tropicana and Jaguar reserve growth. Stretch target met for Fraser Range consolidation. 10% 12.5% ESG Measures Assessed against year on year improvement in ten lag and leading ESG (Environmental Social and Governance) metrics. Year on year improvements delivered against most ESG metrics in FY17. 10% 10% Strategy Based on achievement of defined strategic growth initiatives and year on year improvement in agreed organisational culture and behaviours. Progress achieved on defined objectives. 20% 10% Independence Group NL 18 IGO ANNUAL REPORT 2017— 49 DIRECTORS’ REPORT 30 JUNE 2017 (continued)