INDEPENDENCE GROUP NL ANNUAL REPORT 2017

Directors' report 30 June 2017 (continued) Remuneration report (continued) Remuneration expenses for KMP's (continued) 1. Cash salary and fees includes movements in annual leave provision during the year. 2. Cash bonus excludes superannuation contribution component of STI which is shown in Post-employment benefits. 3. Long service leave relates to movements in long service leave provision during the year. 4. Rights to shares granted under the EIP and PRP are expensed over the performance period, which includes the vesting period of the rights, in accordance with AASB 2 Share-based Payment . Refer to note 27 for details of the valuation techniques used for the EIP and PRP. 5. Ms Bakker was appointed a Non-executive Director effective 14 December 2016. 6. Mr Warburton was appointed a Non-executive Director on 12 October 2015. 7. Mr Bennett was appointed a Non-executive Director on 12 October 2015 and resigned effective 31 May 2016. 8. Mr Dennis was appointed Chief Operating Officer effective 1 March 2016, having previously held the role of General Manager, Project Development (from 22 September 2015) and prior to that Chief Operating Officer, Sirius Resources NL. 9. Ms McDonald commenced employment as Company Secretary on 5 October 2015. 10. Effective 1 March 2016, Mr Hartmann became the General Manager, Nova, having previously held the role of Chief Operating Officer. 11. Mr Walsh ceased employment with the Company on 9 October 2015. Non-executive Director remuneration policy The remuneration of Non-executive Directors is determined by the Board within the maximum amount approved by shareholders in general meeting. Non-executive Directors are not entitled to retirement benefits other than statutory superannuation or other statutory required benefits. Non-executive Directors do not participate in share or bonus schemes designed for Executive Directors or employees. The remuneration of Non-executive Directors is fixed to encourage impartiality, high ethical standards and independence on the Board. The available Non-executive Directors’ fees pool is $1,500,000 which was approved by shareholders at the Annual General Meeting on 16 December 2015, of which $885,000 was being utilised at 30 June 2017 (2016: $885,000). The Board resolved, for a third consecutive year, not to increase Non-executive Directors’ fees for FY17. Non-executive Directors may provide additional consulting services to the Group, at a rate approved by the Board. No such amounts were paid to Directors during the current year. 30 June 2017 30 June 2016 Base fees/Committee fees $ $ Chairman 230,000 230,000 Non-executive Directors 120,000 120,000 Chair Audit Committee 15,000 15,000 Chair Remuneration Committee 15,000 15,000 Chair Sustainability and Risk Committee 15,000 15,000 Chair Nomination Committee 10,000 10,000 Independence Group NL 27 58 — IGO ANNUAL REPORT 2017 DIRECTORS’ REPORT 30 JUNE 2017 (continued)