INDEPENDENCE GROUP NL ANNUAL REPORT 2017

Directors' report 30 June 2017 (continued) Remuneration report (continued) FY17 Executive Management Remuneration (continued) At-risk remuneration - LTIs (continued) Vesting of share rights (continued) The Company's TSR performance for share rights issued during FY17 will be assessed against the following 28 peer group companies: Peer Group Alacer Gold Corp. Alumina Limited Beadell Resources Ltd BHP Billiton Limited BlueScope Steel Limited Evolution Mining Limited Fortescue Metals Group Ltd Gold Road Resources Limited Iluka Resources Limited Lynas Corporation Limited Metals X Limited Newcrest Mining Limited Northern Star Resources Ltd OceanaGold Corporation Orocobre Limited OZ Minerals Limited Pilbara Minerals Limited Perseus Mining Limited Rio Tinto Limited Regis Resources Limited Resolute Mining Limited South32 Limited Saracen Mineral Holdings Limited St Barbara Limited Sandfire Resources NL Sims Metal Management Limited Syrah Resources Limited Western Areas Limited Vesting schedule The vesting schedule of the share rights subject to relative TSR testing is as follows: Relative TSR performance Level of vesting Less than 50th percentile Zero Between 50th and 75th percentile Pro-rata straight line percentage between 50% and 100% 75th percentile or better 100% Note: The relative TSR performance condition of the share rights granted in FY15 (which were due to vest on 1 July 2017) was tested post 30 June 2017, and resulted in a relative TSR performance for the period 1 July 2014 to 30 June 2017 of less than the 50th percentile of the comparator group and as such all the share rights lapsed and were cancelled. This will be accounted for in the FY18 Remuneration Report. Share trading policy The trading of shares issued to participants under the EIP is subject to, and conditional upon, compliance with the Company’s Dealing in Securities Standard. The Standard also prohibits all employees, including Directors and senior management, from entering into any hedging arrangement over unvested securities issued pursuant to any share scheme, performance rights plan or option plan. Share rights granted prior to 30 June 2014 Vesting of the share rights granted to executive KMP prior to 30 June 2014 were subject to a combination of the Company’s shareholder return and return on equity. The final tranche of these outstanding share rights was assessed at 30 June 2016 and there are no further share rights outstanding which are subject to these performance conditions. The performance rights vested if, over the three year measurement period, the following performance hurdles were achieved: Shareholder return The vesting of 75% of the share rights at the end of the third year was based on measuring the actual shareholder return over the three year period compared with the change in the S&P ASX 300 Metals and Mining Index (Index) over that same period. The portion of share rights (75% of the total) that vested based on the comparative shareholder return was: Shareholder return Level of vesting 100% of the Index 25% Between 100% and 115% of the Index Pro-rata straight line percentage 115% of the Index or greater 100% Independence Group NL 22 IGO ANNUAL REPORT 2017— 53 DIRECTORS’ REPORT 30 JUNE 2017 (continued)