INDEPENDENCE GROUP NL ANNUAL REPORT 2017

Directors' report 30 June 2017 (continued) Remuneration report (continued) FY17 Executive Management Remuneration (continued) At-risk remuneration - STIs (continued) Key Result Area KPI Measure (in summary)* Opportunity Achievement Operations and financial Assessed against Group underlying NPAT, Jaguar and Long production, Jaguar and Long mine life and Tropicana conceptual studies. 17.5% 12.5% Near-term growth Assessed against completion of Sirius transaction, integration of Sirius assets and people, completion of Nova Project optimisation study and development timetable and expenditure. Stretch target achieved. 15% 17.5% Longer-term growth Assessed against measures in line with growth strategy. 10% 2.5% Sustainability Assessed against systems and processes and ESG measures. 7.5% 5.0% Individual KPIs/Personal performance As determined for each individual executive 50% 40-50% * Due to the sensitive nature of some corporate KPIs the full detail on measures and achievement is confidential. At-risk remuneration - LTIs The LTI component of the remuneration package is to reward executive directors, senior managers and other invited employees in a manner which aligns a proportion of their remuneration package with the creation of shareholder wealth over a longer period than the STI. The Independence Group NL Employee Incentive Plan (EIP) was approved by shareholders at the Annual General Meeting in November 2016. Under the EIP, participants are granted share rights for no consideration that will only vest if certain performance conditions are met and the employees are still employed by the Group at the end of the vesting period. Participation in the EIP is at the Board’s discretion and no individual has a contractual right to participate in the plan or to receive any guaranteed benefits. The EIP replaced the previous Independence Group NL Employee Performance Rights Plan (PRP) which was approved at the Annual General Meeting of the Company in November 2011 and re-approved at the Annual General Meeting in November 2014. Any existing unvested performance rights issued under the PRP will continue in accordance with their terms under the PRP. In FY17, the Managing Director had the opportunity to earn 70% of his TFR as an LTI. All other Executives had the opportunity to earn between 20-40% of their TFR as an LTI. The quantum of share rights issued in FY17 was determined by the Executive’s TFR; the applicable multiplier; and the face value of the Company's shares, calculated as the 20 day volume weighted average price (VWAP) to 26 August 2016. During the period, 589,967 share rights were issued as FY17 LTIs to executive KMP and senior managers in accordance with the EIP. Additionally, 48,443 shares were issued in accordance with the Employee Share Ownership Award (ESOA) implemented in FY17 to those employees who did not receive LTI share rights. Refer to note 27 for further information of the ESOA. The following share rights were issued to executive KMP in relation to FY17: Independence Group NL 20 IGO ANNUAL REPORT 2017— 51 DIRECTORS’ REPORT 30 JUNE 2017 (continued)