PRESENTATION OF INFORMATION

        We are incorporated in the Republic of South Africa as a public company under South African company law. Our audited consolidated financial statements are prepared in accordance with International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board (IASB).

        As used in this Form 20-F:

•

"rand" or "R" means the currency of the Republic of South Africa;



•

"US dollars", "dollars", "US$" or "$" means the currency of the United States (US);



•

"euro", "EUR" or "€" means the common currency of the member states of the European Monetary Union; and



•

"CAD" means Canadian dollar, the currency of Canada.

        We present our financial information in rand, which is our reporting currency. Solely for your convenience, this Form 20-F contains translations of certain rand amounts into US dollars at specified rates as at and for the year ended 30 June 2016. These rand amounts do not represent actual US dollar amounts, nor could they necessarily have been converted into US dollars at the rates indicated.

All references in this Form 20-F to "years" refer to the financial years ended on 30 June. Any reference to a calendar year is prefaced by the word "calendar".

        Besides applying barrels (b or bbl) and standard cubic feet (scf) for reporting oil and gas reserves and production, Sasol applies the Système International (SI) metric measures for all global operations. A ton, or ton, denotes one metric ton equivalent to 1 000 kilograms (kg). Sasol's reference to metric tons should not be confused with an imperial ton equivalent to 2 240 pounds (or about 1 016 kg). Barrels per day, or bpd, or bbl/d, is used to refer to our oil and gas production.

        In addition, in line with a South African convention under the auspices of the South African Bureau of Standards (SABS), the information presented herein is displayed using

the decimal comma (e.g., 3,5) instead of the more familiar decimal point (e.g., 3.5) used in the UK, US and elsewhere. Similarly, a hard space is used to distinguish thousands in numeric figures (e.g., 2 500) instead of a comma (e.g., 2,500).

        All references to the "group", "us", "we", "our", "the company", or "Sasol" in this Form 20-F are to Sasol Limited, its group of subsidiaries and its interests in associates, joint arrangements and structured entities. All references in this Form 20-F are to Sasol Limited or the companies comprising the group, as the context may require. All references to "(Pty) Ltd" refers to Proprietary Limited, a form of corporation in South Africa which restricts the right of transfer of its shares and prohibits the public offering of its shares.

        All references in this Form 20-F to "South Africa" and "the government" are to the Republic of South Africa and its government. All references to the "JSE" are to the JSE Limited or Johannesburg Stock Exchange, the securities exchange of our primary listing. All references to "SARB" refer to the South African Reserve Bank. All references to "PPI" and "CPI" refer to the South African Producer Price Index and Consumer Price Index, respectively, which are measures of inflation in South Africa. All references to "GTL" and "CTL" refer to our gas-to-liquids and coal-to-liquids processes, respectively.

        Unless otherwise stated, presentation of financial information in this annual report on Form 20-F will be in terms of IFRS. Our discussion of business segment results follows the basis used by the Joint Presidents and Chief Executive Officers (the company's chief operating decision makers) for segmental financial decisions, resource allocation and performance assessment, which forms the accounting basis for segmental reporting, that is disclosed to the investing and reporting public.

        "CFO Report" means the Chief Financial Officer's Report included in Exhibit 99.3.

        "Headline Earnings per share (HEPS)" refers to disclosure made in terms of the JSE listing requirements.

FORWARD-LOOKING STATEMENTS

        We may from time to time make written or oral forward-looking statements, including in this Form 20-F, in other filings with the United States Securities and Exchange Commission, in reports to shareholders and in other communications. These statements may relate to analyses and other information which are based on forecasts of future results and estimates of amounts not yet determinable. These statements may also relate to our future prospects, developments and business strategies. Examples of such forward-looking statements include, but are not limited to:

•

the capital cost of our projects (including material, engineering and construction cost) and the timing of project milestones;



•

our ability to obtain financing to meet the funding requirements of our capital investment programme, as well as to fund our on-going business activities and to pay dividends;



•

changes in the demand for and international prices of crude oil, gas, petroleum and chemical products and changes in foreign currency exchange rates;



•

statements regarding our future results of operations and financial condition and regarding future economic performance including cost containment and cash conservation programmes;



•

statements regarding recent and proposed accounting pronouncements and their impact on our future results of operations and financial condition;



•

statements of our business strategy, plans, objectives or goals, including those related to products or services;



•

statements regarding future competition, volume growth and changes in market share in the industries and markets for our products;



•

statements regarding our existing or anticipated investments (including the Lake Charles Chemicals Project and the

GTL project in the United States, the GTL joint ventures in Qatar and Nigeria, chemical projects and joint arrangements in North America and other investments), acquisitions of new businesses or the disposal of existing businesses;

•

statements regarding our estimated oil, gas and coal reserves;



•

statements regarding the probable future outcome of litigation and regulatory proceedings and the future development in legal and regulatory matters including the legal framework we operate in;



•

statements regarding future fluctuations in refining margins and crude oil, natural gas and petroleum product prices;



•

statements regarding the demand, pricing and cyclicality of oil and petrochemical product prices;



•

statements regarding changes in the manufacturers' fuel pricing mechanism in South Africa and their effects on fuel prices, our operating results and profitability;



•

statements regarding future fluctuations in exchange and interest rates;



•

statements regarding total shareholder return;



•

statements regarding our plans to expand the South African retail and commercial markets for liquid fuels;



•

statements regarding our current or future products and anticipated customer demand for these products;



•

statements regarding acts of war, terrorism or other events that may adversely affect the group's operations or that of key stakeholders to the group; and



•

statements of assumptions underlying such statements.

        Words such as "believe", "anticipate", "expect", "intend", "seek", "will", "plan", "could", "may", "endeavour", "target", "forecast" and "project" and similar expressions are intended to identify forward-looking

statements, but are not the exclusive means of identifying such statements.

        By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and there are risks that the predictions, forecasts, projections and other forward- looking statements will not be achieved. If one or more of these risks materialise, or should underlying assumptions prove incorrect, our actual results may differ materially from those anticipated in such forward-looking statements. You should understand that a number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factors include among others, and without limitation:

•

the outcome in pending and developing regulatory matters and the effect of changes in regulation and government policy;



•

the political, social and fiscal regime and economic conditions and developments in the world, especially in those countries in which we operate;



•

the outcomes of legal proceedings;



•

our ability to maintain key customer relations in important markets;



•

our ability to improve results despite increased levels of competition;



•

the continuation of substantial growth in significant developing markets;



•

the ability to benefit from our capital investment programme;



•

the accuracy of our assumptions in assessing the economic viability of our large capital projects; growth in significant developing areas of our business; the ability to gain access to sufficient competitively priced gas, oil and coal reserves and other commodities;



•

the impact of environmental legislation and regulation on our operations and access to natural resources;

•

our success in continuing technological innovation;



•

our ability to maintain sustainable earnings despite fluctuations in oil, gas and commodity prices, foreign currency exchange rates and interest rates;



•

our ability to attract and retain sufficient skilled employees; and



•

our success at managing the foregoing risks.

        The foregoing list of important factors is not exhaustive; when making investment decisions, you should carefully consider the foregoing factors and other uncertainties and events, and you should not place undue reliance on forward-looking statements. Forward-looking statements apply only as of the date on which they are made and we do not undertake any obligation to update or revise any of them, whether as a result of new information, future events or otherwise. See "Item 3.D—Risk factors"

ENFORCEABILITY OF CERTAIN CIVIL LIABILITIES

        We are a public company incorporated under the company law of South Africa. Most of our directors and officers reside outside the US, principally in South Africa. You may not be able, therefore, to effect service of process within the US upon those directors and officers with respect to matters arising under the federal securities laws of the US.

        In addition, most of our assets and the assets of most of our directors and officers are located outside the US. As a result, you may not be able to enforce against us or our directors and officers judgements obtained in US courts predicated on the civil liability provisions of the federal securities laws of the US.

        There are additional factors to be considered under South African law in respect of the enforceability, in South Africa (in original actions or in actions for enforcement of judgements of US courts) of liabilities predicated on the US federal securities laws. These

additional factors include, but are not necessarily limited to:

•

South African public policy considerations;



•

South African legislation regulating the applicability and extent of damages and/or penalties that may be payable by a party;



•

the applicable rules under the relevant South African legislation which regulate the recognition and enforcement of foreign judgements in South Africa; and



•

the South African courts' inherent jurisdiction to intervene in any matter which such courts may determine warrants the courts' intervention (despite any agreement amongst the parties to (i) have any certificate or document being conclusive proof of any factor, or (ii) oust the courts' jurisdiction).

        Based on the foregoing, there is no certainty as to the enforceability in South Africa (in original actions or in actions for enforcement of judgements of US courts) of liabilities predicated on the US federal securities laws.

ITEM 1.    IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS

        Not applicable.

ITEM 2.    OFFER STATISTICS AND EXPECTED TIMETABLE

        Not applicable.

ITEM 3.    KEY INFORMATION

3.A Selected financial data

        The following information should be read in conjunction with "Item 5—Operating and financial review and prospects" and the consolidated financial statements,

the accompanying notes and other financial information included elsewhere in this annual report on Form 20-F.

        The financial data set forth below for the years ended as at 30 June 2016 and 2015 and for each of the years in the three-year period ended 30 June 2016 has been derived from and should be read in conjunction with our audited consolidated financial statements included in Item 18 of this annual report on Form 20-F.

        Financial data as at 30 June 2014, 2013 and 2012, and for the years ended 30 June 2013 and 2012 have been derived from the group's previously published audited consolidated financial statements, which are not included in this document.

        The audited consolidated financial statements from which the selected consolidated financial data set forth below have been derived were prepared in accordance with IFRS.

Exchange rate information

        The following table sets forth certain information with respect to the rand/US dollar exchange rate for the years shown:

Rand per US dollar for the year ended 30 June and the respective month:

        On 19 September 2016, the closing exchange rate of rand per US dollar as reported by Thomson Reuters was R14,02.

3.B Capitalisation and indebtedness

        Not applicable.

3.C Reasons for the offer and use of proceeds

        Not applicable.

3.D Risk factors

Fluctuations in crude oil, natural gas and petroleum product prices and refining margins may adversely affect our business, operating results, cash flows and financial condition

        Market prices for crude oil, natural gas and petroleum products fluctuate as they are subject to local and international supply and demand fundamentals and other factors over which we have no control. Worldwide supply conditions and the price levels of crude oil may be significantly influenced by general economic conditions, industry inventory levels, technology advancements, production quotas or other actions that might be imposed by international cartels that control the production of a significant proportion of the worldwide supply of crude oil, weather-related damage and disruptions, competing fuel prices and geopolitical risks, especially in the Middle East, North Africa and West Africa.

        Prolonged periods of low prices for crude oil can have a material adverse effect on our business, operating results, cash flows and financial condition. The group's profitability was negatively impacted by the 41% decline in oil prices in 2016 as compared to 2015. During 2016, the dated Brent crude oil price averaged US$43,37/bbl and fluctuated between a high of US$61,67/bbl and a low of US$25,99/bbl. This compares to an average dated Brent crude oil price of US$73,46/bbl during 2015, which fluctuated between a high of US$106,64/bbl and a low of US$48,18/bbl.

        A substantial proportion of our turnover is derived from sales of petroleum and petrochemical products, prices for which have fluctuated widely in recent years and are affected by crude oil prices, the price and availability of substitute fuels, changes in product inventory, product specifications and other factors.

        The South African Government controls and/or regulates certain fuel prices. The pump price of petrol is regulated at an absolute level. Furthermore maximum price regulation applies to the refinery gate price of liquefied petroleum gas (LPG), the price of LPG sold in cylinders

for domestic use and the sale of unpacked illuminating paraffin. South African liquid fuels are valued using reported prices from international refining centres to which logistical costs to South Africa are added. The resultant "Basic Fuel Price" (BFP) is a formula-driven price that considers, amongst others, the international crude oil price, the rand/US dollar exchange rate and the refining margin typically earned by coastal refineries. The BFP is then used as a component in the regulated prices that are published by the Government on a monthly basis.

        Through our equity participation in the National Petroleum Refiners of South Africa (Pty) Ltd (Natref) crude oil refinery, we are exposed to fluctuations in refinery margins resulting from differing fluctuations in international crude oil and petroleum product prices. We are also exposed to changes in absolute levels of international petroleum product prices through our synthetic fuel operations.

        Prolonged periods of low crude oil and natural gas prices could also result in projects being delayed or cancelled, as well as in the impairment of certain assets. In Canada, low gas prices have persisted, resulting in an impairment of our shale gas assets in 2015 of R1,3 billion (CAD133 million) and a further impairment of R9,9 billion (CAD880 million) in 2016.

        In the US, we recognised an impairment of R956 million (US$65 million), in 2016, on our low density polyethylene (LDPE) derivative unit in the Lake Charles Chemicals Project complex. The impairment was largely driven by the increased capital cost and lower margins.

        We also recognised a partial impairment in 2015 of R1,3 billion with respect to our Etame assets in Gabon, due to the decline in oil prices.

        We use derivative instruments to partially protect us against day-to-day fluctuations in US dollar oil prices as well as in the rand to US dollar exchange rate which affects the acquisition cost of our crude oil needs. See "Item 11—Quantitative and qualitative disclosures about market risk". While the use of these instruments may provide some protection against short-term

fluctuations in crude oil prices, it does not protect us against longer term fluctuations in crude oil prices or differing trends between crude oil and petroleum product prices.

        We are unable to accurately forecast fluctuations in refining margins and crude oil, natural gas and petroleum products prices. Fluctuations in any of these may have a material adverse effect on our business, operating results, cash flows and financial condition.

Fluctuations in exchange rates may adversely affect our business, operating results, cash flows and financial condition

        The rand is the principal functional currency of our operations and we report our results in rand. However, 90% of our turnover is impacted by the US dollar and the price of most petroleum and chemical products are based on global commodity and benchmark prices which are quoted in US dollars.

        Further, as explained above, the rand/US dollar exchange rate is a component of the BFP, which impacts the price at which we can sell fuel in South Africa.

        A significant part of our capital expenditure is US dollar-denominated, as it is directed to investments outside South Africa or constitutes materials, engineering and construction costs imported into South Africa. Fluctuations in the rand/US dollar exchange rate impacts on our gearing and targeted capital expenditure.

        We also generate turnover and incur operating costs in euro and other currencies.

        Fluctuations in the exchange rates of the rand against the US dollar and euro as well as other currencies also impact the comparability of our financial statements between periods due to the effects of translating the functional currencies of our foreign subsidiaries into rand at different exchange rates.

        Accordingly, fluctuations in exchange rates between the rand and US dollar, and/or euro may have a material effect on our business, operating results, cash flows and financial condition.

        During 2016, the rand fell to record lows against the US dollar, with the rand/US dollar exchange rate averaging R14,52 and fluctuating between a high of R16,88 and a low of R12,25. This compares to an average exchange rate of R11,45 during 2015, which fluctuated between a high of R12,58 and a low of R10,51.

        The rand exchange rate is affected by various international and South African economic and political factors. Subsequent to 30 June 2016, the rand has on average strengthened against the US dollar and the euro, closing at R14,02 and R15,66, respectively, on 19 September 2016. In general, a weakening of the rand would have a positive effect on our operating results. Conversely, strengthening of the rand would have an adverse effect on our operating results. Refer to "Item 5.A—Operating results" for further information regarding the effect of exchange rate fluctuations on our results of operations.

        Although the exchange rate of the rand is primarily market-determined, its value at any time may not be an accurate reflection of its underlying value, due to the potential effect of, among other factors, exchange controls. For more information regarding exchange controls in South Africa see "Item 10.D—Exchange controls".

Cyclicality in petrochemical product prices and demand may adversely affect our business, operating results, cash flows and financial condition

        The demand for chemicals and especially products such as solvents, olefins, surfactants, fertilisers and polymers is cyclical. Typically, higher demand during peaks in the industry business cycle leads producers to increase their production capacity. Although peaks in the business cycle have been characterised by increased selling prices and higher operating margins in the past, such peaks have led to overcapacity with supply exceeding demand growth. Low periods during the industry business cycle are characterised by a decrease in selling prices and excess capacity, which can depress operating margins. We are unable to accurately forecast the timing of the industry business cycle,

and lower prices for chemical products during downturns in the cycle may have a material adverse effect on our business, operating results, cash flows and financial condition.

Our large projects are subject to schedule delays and cost overruns, and we may face constraints in financing our existing projects or new business opportunities, which could render our projects unviable or less profitable than planned

        In financial year 2015, we made the final investment decision (FID) on the Lake Charles Chemicals Project (LCCP) (an ethane cracker and chemical derivatives plant) in the US.

        Overall construction on the project continues on all fronts, with most engineering activities nearing completion and procurement well advanced. At 30 June 2016, the capital expenditure to date on LCCP was US$4,8 billion, and the overall project completion was around 50%.

        In August 2016, we announced that a detailed review on the LCCP confirmed that the total capital cost for the project is expected to be US$11 billion representing an increase of $2,1 billion from the original estimate at the time of FID in October 2014. We also announced a number of changes to the project oversight designed to enhance the likelihood of the project being completed within the revised estimate.

        The expected returns from the LCCP have also been updated, taking into account our updated oil and petrochemical price forecasts as well as the revised cost and schedule resulting from the review process. On an unlevered basis, the returns from the LCCP are expected to be slightly above the company's US dollar weighted average cost of capital of 8%, although below the returns expected at the time of FID in October 2014.

        During 2016, the LDPE cash generating unit was impaired by R956 million (US$65 million), largely as a result of the increased capital cost and lower margins.

        In Mozambique, the Field Development Plan (FDP) for the Production Sharing Agreement (PSA) licence was approved by

regulatory authorities. The PSA FDP proposes an integrated oil, Liquefied Petroleum Gas (LPG) and gas-to-power project adjacent to the Petroleum Production Agreement (PPA) area. The development of these projects is a capital-intensive process carried out over long durations and requires us to commit significant capital expenditure and allocate considerable management resources in utilising our existing experience and know-how.

        Such projects are subject to risk of delay and cost overruns inherent in any large construction project, including as a result of, among other factors:

•

shortages or unforeseen increases in the cost of equipment, labour and raw materials;



•

unforeseen design and engineering problems;



•

inadequate phasing of activities;



•

labour disputes;



•

inadequeate workforce planning;



•

inadequate change management practices;



•

natural disasters and adverse weather conditions, including excessive winds, higher than expected rainfall patterns, tornadoes, cyclones and hurricanes;



•

failure or delay of third-party service providers; and



•

changes to regulations, such as environmental regulations.

        In addition, significant variations in the assumptions we make in assessing the viability of our projects, including those relating to commodities prices and the prices for our products, exchange rates, interest rates and the demand for our products, may adversely affect the profitability or even the viability of our investments. As the LCCP is particularly material to Sasol, any further cost overruns or adverse changes in assumptions affecting the viability of the project could have a material adverse effect on the business, cash flows, financial condition and prospects.

        Our operating cash flow and banking facilities may be insufficient to meet our capital expenditure plans and requirements, depending on the timing and cost of development of our existing projects and any further projects we may pursue, as well as our operating performance and the utilisation of our banking facilities. As a result, new sources of capital may be needed to meet the funding requirements of these projects, to fund ongoing business activities and to pay dividends. Our ability to raise and service significant new sources of capital will be a function of macroeconomic conditions, our credit rating, our gearing and other debt metrics, the condition of the financial markets, future prices for the products we sell, the prospects for our industry, our operational performance and operating cash flow and debt position, among other factors.

        In the event of unanticipated operating or financial challenges, any dislocation in financial markets, any further downgrade of our ratings by ratings agencies or new funding limitations, our ability to pursue new business opportunities, invest in existing and new projects, fund our ongoing business activities and retire or service outstanding debt and pay dividends, could be constrained, any of which could have a material adverse effect on our business, operating results, cash flows and financial condition.

Our access to and cost of funding is affected by our credit rating, which in turn is affected by the sovereign credit rating of the Republic of South Africa

        Our credit rating may be affected by our ability to maintain our outstanding debt and financial ratios at levels acceptable to the credit ratings agencies, our business prospects, the sovereign credit rating of the Republic of South Africa and other factors, some of which are outside our control. Historically, our credit rating has been affected by movements in the sovereign credit rating of the Republic of South Africa. Any future adverse rating actions or downgrade of the South African sovereign credit rating may have an adverse effect on our credit rating, which could negatively impact our ability to borrow money and could increase the cost of debt finance.

        A downgrade of Sasol's credit rating may also have an adverse effect on the effectiveness of our interest rate swap, entered into to hedge 50% of the LIBOR exposure of the US$4 billion term loan facility entered into to finance the LCCP.

        The credit rating assigned by the ratings agencies is dependent on a number of factors, including the gearing levels of the group. In assessing these gearing levels, performance guarantees which have been issued by Sasol are taken into account as potential future exposure, which may impact the liquidity of the group.

        The sovereign credit rating of the Republic of South Africa is currently BBB– with a negative outlook by Standard & Poor's Ratings Services (S&P) and Baa2 with a negative outlook by Moody's Investors Service (Moody's).

We may not achieve our cash conservation targets

        In 2012, we implemented a significant change programme, over a four-year period, to sustainably reduce our cost base and bring about a more competitive organisation.

        During this process, we streamlined corporate and management structures, revised our operating model, refined our near-to-medium-term strategy, refocused our longer-term strategic direction, and drove a comprehensive Business Performance Enhancement Programme (BPEP) to enable the company to be more resilient and better positioned to respond to the lower-for-longer oil price scenario and volatile macro-economic environment. At the end of 2016, our BPEP recorded cumulative savings of R4,5 billion, and we have increased our target to realise at least R5,4 billion in sustainable annual savings from the end of the 2018 financial year.

        In December 2014, we proactively formulated a comprehensive plan to conserve cash in response to a lower oil price environment, over and above the savings target set out under our BPEP.

        Several core levers underpin our Response Plan. These levers are cash cost savings, gross margin and working capital improvements,

capital structuring and capital portfolio optimisation.

        Our Response Plan catered for an initial cash conservation target range of between R30 billion to R50 billion over a 30-month period to end June 2017. To ensure that we have the appropriate plans in place, with a high level of predictability, the Response Plan targets are reviewed on a regular basis by the Group Executive Committee, based on the latest oil price, commodities and exchange rate assumptions. Accordingly, in 2016, we increased our cash conservation target to between R65 billion and R75 billion, and extended the programme to at least the 2018 financial year, to ensure continued balance sheet strength and earnings resilience at notably lower oil price scenarios.

        While our Response Plan protects cash over a relatively short period, certain initiatives implemented are anticipated to result in substantial longer-term cost savings of approximately R2,5 billion annually from the 2019 financial year.

        Our ability to achieve our cash conservation targets are subject to a number of risks, contingencies and other factors, some of which are beyond our control. These risks, for example, relate to negative macroeconomic developments and a further deterioration of market conditions. Therefore, our actual cash conservation achieved may differ significantly from the current targeted amounts.

Exposure related to investments in associates, joint ventures and joint operations (joint arrangements) may adversely affect our business, operating results, cash flows and financial condition

        We have invested in a number of associates and joint arrangements as part of our strategy to expand operations globally. We are considering opportunities for further upstream oil and gas and downstream GTL investments, as well as opportunities in chemicals, to continue our local and global expansion. The development of these projects may require investments in associates and joint arrangements, most of which are aimed at facilitating entry into countries and/or sharing

risk with third parties. Although the risks are shared, the objectives of our associates, and joint arrangement partners, their ability to meet their financial and/or contractual obligations, their behaviour, their compliance with legal and ethical standards, as well as the increasing complexity of country-specific legislation and regulations may adversely affect our reputation and/or result in disputes and/or litigation, all of which may have a material adverse effect on our business, operating results, cash flows and financial condition, and may constrain the achievement of our growth objectives.

We may not achieve projected benefits of acquisitions or divestments

        We may pursue acquisitions or divestments. With any such transaction, there is the risk that any benefits or synergies identified at the time of acquisition may not be achieved as a result of changing or inappropriate assumptions or materially different market conditions, or other factors. Furthermore, we could be found liable, regardless of extensive due diligence reviews, for past acts or omissions of the acquired business without any adequate right of redress.

        In addition, delays in the sale of assets, or reductions in value realisable, may arise due to changing market conditions. Failure to achieve expected values from the sale of assets, or delays in expected receipt or delivery of funds may result in higher debt levels, underperformance of those businesses and loss of key personnel.

There are country-specific risks relating to the countries in which we operate that could adversely affect our business, operating results, cash flows and financial condition

        Several of our subsidiaries, joint arrangements and associates operate in countries and regions that are subject to significantly differing political, social, economic and market conditions. See "Item 4.B—Business overview" for a description of the extent of our activities in the main countries and regions in which we

operate. Although we are a South African-domiciled company and the majority of our operations are located in South Africa, we also have significant energy businesses in other African countries, chemical businesses in Europe, the US, the Middle East and Asia, a joint venture GTL facility in Qatar, joint operations in the United States and Canada and a 10% indirect interest in a GTL project in Nigeria.

        Particular aspects of country-specific risks that may have a material adverse impact on our business, operating results, cash flows and financial condition include:

(a) Political and socio-economic issues

i. Political, social and economic uncertainty

        We have invested, or are in the process of investing in, significant operations in African, European, North American, Asian and Middle Eastern countries that have in the past, to a greater or lesser extent, experienced political, social and economic uncertainty. In particular, in South Africa, the continuing rise in risks to the country's medium-term economic prospects and to its fiscal strength have led at least two rating agencies assigning a negative outlook to the South African sovereign credit rating.

        Other countries in which we operate may also face sovereign downgrade risks and risks that may impact their ability to access funding and honour commitments.

        Government policies, laws and regulations in countries in which we operate, or plan to operate, may change in the future. Governments in those countries have in the past and may in the future pursue policies of resource nationalism and market intervention, including through protectionism and subsidies. The impact of such changes on our ability to deliver on planned projects cannot be determined with any degree of certainty and such changes may therefore have an adverse effect on our operations and financial results.

ii. Localisation issues

        In some countries, our operations are required to comply with local procurement, employment equity, equity participation, corporate social responsibility and other regulations which are designed to address country-specific social and economic transformation and localisation issues.

        In South Africa, there are various transformation initiatives with which we are required to comply. We embrace, engender and participate in initiatives to bring about meaningful transformation in South Africa. We consider these initiatives to be a strategic imperative and we acknowledge the risk of not pursuing them.

        In South Africa, the revised Codes of Good Practice for broad-based black economic empowerment (B-BBEE) (the Revised Codes), which came into effect on 1 May 2015, provides a standard framework for the measurement of B-BBEE across all sectors of the economy, other than sectors that have their own sectorial transformation charters (e.g. the mining industry).

        The Revised Codes provide more stringent targets, which impact on Sasol's B-BBEE contributor status. The more stringent targets comprise both increased pillar-specific targets (for example, in preferential procurement the target for black ownership of suppliers increased from 25% to 51%) and the generic scorecard requiring more points to be obtained in order to qualify for a given level. In 2015, we reported a Level 4 B-BBEE contributor status. However, like many other companies, our status has declined, to Level 8. We have embarked on a project to assess our B-BBEE strategies and restore our Level 4 rating by 2020.

        We believe that the long-term benefits to the company and South Africa should outweigh any possible adverse effects, such as dilution, but we cannot assure you that future implications of compliance with these requirements or with any newly imposed conditions will not have a material adverse effect on our shareholders or business, operating results, cash flows and financial condition. See "Item 4.B—

Empowerment of historically disadvantaged South Africans".

iii. Disruptive industrial action

        The majority of our employees worldwide belong to trade unions. These employees comprise mainly general workers, artisans and technical operators. The South African labour market remains volatile and characterised by major industrial action in key sectors of the economy.

        Wage negotiations impacting the South African operations of the Sasol Group within the Petroleum and Industrial Chemicals sectors as well as within Sasol Mining took place between May and September 2016. The negotiations within Sasol Mining are ongoing.

        In South Africa, we have concluded wage negotiations within the Petroleum and Industrial Chemical sectors.

        We successfully concluded agreements with four of our five recognised trade unions. While the Association of Mineworkers and Construction Union (AMCU) has embarked on industrial action, we continue to engage with the union to bring a swift amicable resolution to the matter. During this time, our focus remains on the safety of our employees, contractors, the community and our assets.

        Although we have constructive relations with our employees and their unions, we cannot assure you that significant labour disruptions will not occur in the future or that our labour costs will not increase significantly in the future.

(b) Fiscal

        Macroeconomic factors, such as higher inflation and interest rates, could adversely impact our ability to contain costs and/or ensure cost-effective debt financing in the countries in which we operate.

        Our sustainability and competitiveness is influenced by our ability to optimise our cost base. As we are unable to control the price at which our products are sold, it is possible that if inflation in countries in which we operate should begin to increase, it may result in significantly higher future operational costs.

        In South Africa, consumer price inflation averaged 5,6% in 2016, from 5,1% in 2015. This rise in consumer inflation can be attributed to a combination of base effects, acceleration in food

price inflation in response to drought conditions and volatility in the exchange rate of the rand. Upside risks to the inflation outlook along with a potential prolonged breach of the 6% inflation target ceiling prompted the South African Reserve Bank (SARB), to increase the policy interest rate by 125 basis points during 2016.

        The rand/US dollar exchange rate remains one of the factors having a significant impact on inflation, and, accordingly the weakening of the rand poses a risk to the inflation outlook.

        Consumers are under financial pressure, which along with a challenging economic outlook is likely to keep producer pricing power in check. Despite the weak economic environment, inflationary pressures emanating mainly from past exchange rate weakness and rising food prices could see the SARB increase interest rates slightly during the course of 2017.

(c) Legal and regulatory

i. Exchange control regulations

        South African law provides for exchange control regulations which apply to transactions involving South African residents, including both natural persons and legal entities. These regulations may restrict the export of capital from South Africa, including foreign investments. The regulations may also affect our ability to borrow funds from non-South African sources for use in South Africa, including the repayment of these borrowings from South Africa and, in some cases, our ability to guarantee the obligations of our subsidiaries with regard to these funds. These restrictions may affect the manner in which we finance our transactions outside South Africa and the geographic distribution of our debt. See "Item 10.D—Exchange controls" and "Item 5.B—Liquidity and capital resources".

ii. Ownership rights

        We operate in several countries where ownership of rights in respect of land and resources is uncertain and where disputes in relation to ownership or other community matters may arise. These disputes are not always

predictable and may cause disruption to our operations or development plans.

iii. Legal and regulatory uncertainties

        Some of the countries where we have already made, or other countries where we may consider making, investments are in various stages of developing institutions and legal and regulatory systems that are characteristic of democracies and market economies.

        The procedural safeguards of the legal and regulatory regimes in these countries in many cases are still being developed and, therefore, existing laws and regulations may be applied inconsistently. In some circumstances, it may not be possible to obtain the legal remedies provided under those laws and regulations in a timely manner.

(d) Transportation, water, electricity and other infrastructure

        The infrastructure in some countries in which we operate, such as rail infrastructure, electricity and water supply may need to be further upgraded and expanded, and in certain instances, possibly at our own cost. Water, as a resource, is becoming increasingly limited as world demand for water increases. A significant part of our operations, including mining, chemical processing and others, requires use of large volumes of water. South Africa is generally an arid country and prolonged periods of drought or significant changes to current water laws could increase the cost of our water supplies or otherwise impact our operations. Water use by our operations varies widely depending largely on feedstock and technology choice. Although various technological advances may improve the water efficiency of our processes, we may experience limited water availability and other infrastructure challenges which could have a material adverse effect on our business, operating results, cash flows, financial condition and future growth.

        In South Africa, the supply of electricity will remain tight into 2019 and 2020, until substantial new generation capacity is commissioned. Sasol has an installed generation capacity of approximately 71% of its total South African

power supply needs internally, and hence has a limited exposure. Although Eskom (the South African electricity public utility) has implemented a number of short- and long-term mitigation plans, we could experience power supply interruptions. Any such interruptions or any significant increase in electricity tariffs could have material adverse effects on our business, operating results, cash flows, financial condition and future growth.

(e) Stakeholder relationships

        Our operations can also have an impact on local communities, including the need, from time to time, to relocate or resettle communities or relocate infrastructure networks such as railways and utility services. Failure to manage relationships with local communities, governments and non-governmental organisations may harm our reputation as well as our ability to bring development projects into production. In addition, the costs and management time required to comply with standards of social responsibility, community relations and sustainability, including costs related to the resettlement of communities or relocation of infrastructure, have increased substantially and are expected to further increase over time.

(f) Contract stability

        Host governments in some of the resource-rich countries where we operate or consider making investments may display tendencies of wanting to change existing contracts through early terminations, non-renewal or cancellation of contractual rights, or we may not be able to fully enforce our contractual rights in those jurisdictions or enforce judgements obtained in the courts of other jurisdictions, should they hold the view that these contracts are not beneficial to their countries.

(g) Other specific country risks that are applicable to countries in which we operate and which may have a material adverse effect on our business include:

•

acts of warfare and civil clashes;

•

the loss of control of oil and gas field developments and transportation infrastructure;



•

failure to receive new permits and consents;



•

expropriation of assets;



•

lack of capacity to deal with emergency response situations;



•

social and labour unrest due to economic and political factors in host countries;



•

terrorism, xenophobia and kidnapping threats;



•

security threats to assets, employees and supply chain;



•

possible demands to participate in unethical or corrupt conduct that lead us to forgo certain opportunities; and



•

feedstock security of supply.

        As the political, economic and legal environments remain subject to continuous development, investors in these countries face uncertainty as to the security of their investments. Any unexpected changes in the political or economic conditions in the countries in which we operate (including neighbouring countries) may have a material adverse effect on the investments that we have made or may make in the future, which may in turn have a material adverse effect on our business, operating results, cash flows and financial condition.

Actual or alleged non-compliance with applicable anti-bribery and anti-corruption laws could result in criminal or civil sanctions and could harm our reputation

        Ethical misconduct and non-compliance with applicable anti-corruption laws, including a violation of the rules to disclose payments made to governments, could have a material adverse impact on our reputation, operations and licence to operate.

        Petrochemical and energy companies need to be particularly vigilant with regard to the risk of bribery, especially when the scale of investments and the corruption perception of the

countries where operations take place are considered. We, like other international petrochemical companies, have a geographically diverse portfolio and conduct operations in countries, some of which have a perceived high prevalence of corruption. Our operations must comply with the US Foreign Corrupt Practices Act and similar anti-corruption and anti-bribery laws of South Africa and the other jurisdictions in which we operate. There has been a substantial increase in the global enforcement of these laws. In particular, major investments in countries with a high corruption risk are subject to an elevated risk in dealings with private companies, governments or government-controlled entities. Although we have an anti-corruption and anti-bribery compliance programme in place designed to reduce the likelihood of violations of such laws, any violation could result in substantial criminal or civil sanctions and could damage our reputation.

Regulation of greenhouse gas emissions could increase our operational cost and reduce demand for our products

        Some of our processes in South Africa, especially coal gasification and combustion, result in relatively high carbon dioxide emissions. Consequently, climate change mitigation poses a significant risk for our business, in meeting societal pressures, addressing anticipated or new legislative requirements, bearing the financial impact associated with the necessary development of required new technologies and rising feedstock costs.

        Further, climate change poses a significant risk for our business as it relates to potential physical impacts including but not limited to change of weather patterns including extreme events and water scarcity. In addition, the related climate change policies could impact our projected growth strategies and targets.

        Sasol's highly energy-intensive operations exist largely in South Africa in the midst of rapidly evolving national legislation on greenhouse gas emissions. In the National Climate Change Policy (NCCP), South Africa reiterated its intent to, subject to certain conditions, implement nationally appropriate

mitigation actions to enable a 34% deviation below the "business as usual" emissions growth trajectory by 2020, and 42% by 2025. The NCCP indicates the implementation of a carbon budget process which is now being cascaded to company level in the form of a voluntary carbon budget which Sasol received in May 2016. It is likely that carbon budgets and associated compliance will become mandatory in 2021. We believe that given the developmental challenges currently faced by South Africa and the structure of its economy, there are alternative mechanisms which could achieve the same outcomes intended by the proposed carbon tax. There is however a high risk that the National Treasury in South Africa will pursue a stand-alone carbon tax. The draft Carbon Tax bill was published in December 2015.

        As with many proposed policies that may have an impact on our business, we continue to actively engage with the South African government in a solution-oriented constructive manner, particularly given the potential double compliance burden which could have a material adverse effect on our business, operating results, cash flows and financial condition.

        Identifying an appropriate response that balances the need for economic development, job creation, energy security and reductions in greenhouse gas emissions remains a key challenge and risk.

        Current measures in South Africa have already resulted in increased compliance costs for power suppliers that are passed on to consumers in the form of levies for electricity generated from fossil fuels. These types of levies have increased substantially over time and are likely to increase further due to the electricity supply constraint experienced in South Africa in particular.

        Our international operations are less carbon intensive and have been operating in a more mature greenhouse gas regulatory regime for a period of time already. However, continued political attention to issues concerning climate change, and potential mitigation through regulation, could have a material impact on our operations and financial results.

South African mining legislation may have an adverse effect on our mineral rights

        Certain amendments to the Mineral and Petroleum Resource Development Act, 28 of 2002 (MPRDA) are currently under consideration. The impact thereof on our operations will be considered once we have clarity on the nature of the amendments.

        The draft revised Mining Charter published on 15 April 2016 contains higher compliance criteria than the current Mining Charter. The revised Mining Charter therefore introduces a risk of non-compliance which can lead to the suspension or cancellation of Sasol Mining's mining and/or prospecting rights. The full extent of this risk can only be assessed once the revised Mining Charter comes into effect.

        If a holder of a prospecting right or mining right in South Africa conducts prospecting or mining operations in contravention of the MPRDA, including the Mining Charter and Social and Labour Plans, the converted mining rights can be suspended or cancelled by the Minister of Mineral Resources. The entity, upon receiving a notice of breach from the Minister, has a specific period of time to remedy such breach. The MPRDA and applicable provisions in the National Environmental Management Act and National Water Act impose additional responsibilities with respect to environmental management as well as the prevention of environmental pollution, degradation or damage from mining and/or prospecting activities.

        The effect of the proposed changes to the MPRDA, associated regulations to be promulgated and amendments to the Mining Charter on our mining and petroleum rights in the future may have a material adverse effect on our business, operating results, cash flows and financial condition. See "Item 4.B—Business overview—Regulation of mining activities in South Africa".

Legislation in South Africa on petroleum and energy activities may have an adverse impact on our business, operating results, cash flows and financial condition

Regulation of Petroleum Products

The Petroleum Products Amendment Act

        The Petroleum Products Amendment Act (the Petroleum Act) requires persons involved in the manufacturing, wholesale and retail sale of petroleum products to obtain relevant licences for such activities. Sasol Oil, Natref and Secunda Synfuels submitted applications for their respective operations. The Sasol Oil wholesale and manufacturing licences; and Secunda Synfuels manufacturing licence applications have been approved and issued. The Natref manufacturing licence application is still under review by the Department of Energy. Nevertheless, these facilities continue to operate as being persons who, as of the effective date of the Petroleum Act, are deemed to be holders of a licence until their applications have been finalised. Until this application has been finalised, we cannot provide assurance that the conditions of the licences may not have a material adverse impact on our business, operating results, cash flows and financial condition.

        The Petroleum Act entitles the Minister of Energy to regulate the prices, specifications and stock holding of petroleum products and the status in this regard is as follows:

•

A regulatory price review was conducted by the Department of Energy which resulted in new price calculation methodologies that have been implemented since December 2013;



•

Changes to align South African liquid fuels specifications with those prevailing in Europe remain under discussion. It is uncertain as to when these new specifications, which pertain to all liquid fuels consumed in South Africa, will be effective. Compliance with these new specifications will require substantial capital investments at both Natref and Secunda Synfuels Operations. The amount of capital investment required has

not yet been finalised and discussions with the South African government regarding cost recoveries and/or incentives are on-going; and

•

Regulations to oblige licenced manufacturers and/or wholesalers to keep minimum levels of market-ready petrol, diesel, illuminating paraffin, jet fuel and liquid petroleum gas (LPG) are currently under consideration by the Department of Energy. No indications on volumes, cost recovery and compensation mechanisms are available as yet.

Regulation of pipeline gas activities in South Africa

The Gas Act

        The Gas Act provides that NERSA has the authority to issue licences for construction and operation of gas pipelines, trading in gas and to determine maximum gas prices that may be charged by gas traders, where there is inadequate competition as contemplated in the South African Competition Act. The Gas Act further gives NERSA the authority to impose fines and other punitive measures for failure to comply with the licence conditions and/or the provisions of the Gas Act. Future regulation of maximum gas prices may have a material adverse effect on our business, operating results, cash flow and financial condition.

        Pursuant to the NERSA decisions approving the Sasol Gas maximum gas prices and transmission tariffs, Sasol Gas implemented a standardised pricing mechanism in its supply agreements with customers in compliance with the applicable regulatory and legal framework. Seven of Sasol Gas's largest customers initiated a judicial review of the NERSA decisions relating to its maximum price and tariff methodologies and NERSA's decision on Sasol Gas's maximum price application. The review application proceedings were completed and the parties are awaiting the judgement. We cannot assure you that the provisions of the Gas Act and the implementation of a new gas price and tariff methodology pursuant to the NERSA approvals, and the outcome of the review application, will not have a material adverse

impact on our business, operating results, cash flows and financial condition.

Changes in safety, health and environmental regulations and legislation and public opinion may adversely affect our business, operating results, cash flows and financial condition

        We are subject to a wide range of general and industry-specific environmental, health and safety and other legislation in jurisdictions in which we operate. See "Item 4.B—Business overview—Regions in which Sasol operates and their applicable legislation".

        One of our most material challenges is the ability to anticipate and respond to the changing regulatory and policy context, particularly relating to environmental legislation in South Africa. Evolving legislation relating to air quality, climate change, water and waste management introduce profound regulatory challenges to our existing plants in South Africa. In some instances, legislation does not adequately provide for sufficient and/or flexible transitional arrangements for existing plants. These laws and regulations and their enforcement are likely to become more stringent over time in all jurisdictions in which we operate, although these laws in some jurisdictions are more established and entrenched than in others. Laws in other jurisdictions may apply to new plants or old plants, where economically viable technologies are available. Compliance with these requirements is a significant factor in our business, and we continue to effectively invest in significant capital and expenditures in order to comply with these requirements.

        The promulgation of the South African National Environmental Management: Air Quality Act in 2004, followed by the publication of minimum emission standards for point sources in April 2010, introduced a fundamental new approach to air quality management. Accordingly, our existing plants have to meet more stringent point source standards up to 2020 as governed in terms of our atmospheric emission licences. From 2020 onwards, our plants have to comply with emission standards applicable to newly commissioned plants. The Department of Environmental Affairs has also

declared the Vaal Triangle (where the Sasolburg plant is situated) and the Highveld area (where our Secunda operations are situated) as Priority Areas. The Vaal Triangle and Highveld Priority Area Air Quality Improvement Plans are being implemented. Compliance with the provisions of these plans will cause significant cost.

        These requirements may require retrofitting of some of our existing plants, which could pose significant compliance challenges for our existing plants from a technical and financial feasibility point of view.

        To mitigate these compliance risks in the short and long term, Sasol will be reliant on mechanisms available in law and associated decisions thereon by the relevant environmental authorities in instances where technical solutions have not yet been identified to achieve the prescribed emission limits timeously. We will be required to submit multiple applications for postponements to obtain extensions on the requisite compliance time frames. We remain concerned about the limitations of the postponement mechanism to provide longer-term certainty in the face of these significant compliance challenges. This is particularly the case since the outcome of these applications cannot be guaranteed and may be successfully challenged by third parties. Non-compliance may result in the violation of licence conditions with the associated consequence of administrative enforcement action, which may include directions to cease operations, as well as criminal prosecution. This may have a material adverse impact on our business.

        Where we are unable to rely on mechanisms available in law or find appropriate feasible solutions, we may, of necessity, elect to decommission or mothball essential parts of our plant.

        We also rely on other available mechanisms, such as the implementation of air quality offsets, to address our compliance challenges. We further continue to engage with the regulatory authorities in order to encourage a sustainable air quality regulatory system, including the formal recognition of offsets. The success of these engagements cannot be guaranteed.

        Changes to waste management legislation in South Africa are compelling our South African operations to find alternative solutions to waste management and disposal. The changing regulatory landscape introduces increasingly stringent waste disposal restrictions and we are quantifying the potential costs associated with meeting these requirements. We will be dependent on regulatory authorities clarifying the interpretation and applicability of specific requirements to our waste streams, to determine whether there would be compliance challenges associated with technical and feasibility constraints. We may have to rely on mechanisms in law, such as exemption applications, to address potential waste management compliance challenges, the outcome of which cannot be guaranteed.

        Although systems and processes are in place, monitored and improved upon, to ensure compliance with applicable laws and regulations, we cannot assure you that we will be in compliance with all laws and regulations at all times. For example, non-compliance with environmental, health or safety laws may occur, from system or human errors in monitoring our emissions of hazardous or toxic substances into the environment, such as our use of incorrect methodologies or defective or inappropriate measuring equipment, errors in manually capturing results, or other mistaken or unauthorised acts of our employees.

        Public opinion is growing more sensitive to community and consumer health and safety associated with the manufacturing and use of chemicals. Our manufacturing processes may utilise and result in the emission of or exposure to substances with potential health risks. We also manufacture products which may pose health risks. Although we remain committed to apply a duty of care principle and implement measures to eliminate or mitigate associated potential risks, including the Chemical and Allied Industries' Association Responsible Care® programme, we may be subject to liabilities as a result of the use or exposure to these materials or emissions. See Item 4.B "Business overview—Regulation" for more detail.

        Consequently, markets may apply pressure on us concerning certain of our products, manufacturing processes, transportation and distribution arrangements. As a result of these additional pressures, the associated costs of compliance and other factors, we may be required to withdraw certain products from the market, which could have a material adverse effect on our business, operating results, cash flows and financial condition. In addition, as currently framed, the draft South African Chemicals Management Bill may impose significant requirements for the management of chemicals in our South African value chain. The potential impacts of this bill are being addressed through Sasol's participation in appropriate industry forums. The scope of the impact on Sasol's business cannot be predicted at this time.

        Sasol Mining is currently involved in litigation regarding alleged lung and occupational diseases contracted by former employees. These matters emanated from a South African Constitutional Court judgement delivered in 2011 that confirmed the right of employees in the mining sector to claim compensation for certain occupational diseases from their employers. There is a possibility of further similar lawsuits being instituted against Sasol Mining.

We are subject to competition and antitrust laws

        Violations of competition/antitrust legislation could expose the group to administrative penalties and civil claims and damages, including punitive damages, by entities which can prove they were harmed by such conduct. Such penalties and damages could be significant and have an adverse impact on our business, operating results, cash flows and financial condition. In addition, our reputation could be damaged by findings of such contraventions and individuals could be subject to imprisonment or fines in some countries where antitrust violations are a criminal offence. Competition authorities are increasingly engaging with each other to exchange information relating to potential violation of antitrust laws and enforce antitrust laws. The South African Competition Commission is conducting investigations related to various

petroleum product industries and producers, including Sasol, and has an investigation into Sasol's polymer business. In addition, the South African Competition Commission has initiated a market inquiry into the South African liquefied petroleum gas market.

        We continue to interact and cooperate with the South African Competition Commission in respect of leniency applications as well as in the areas that are subject to the South African Competition Commission investigations.

        Although it is our policy to comply with all laws, and notwithstanding training and compliance programmes, we could inadvertently contravene competition or antitrust laws and be subject to the imposition of fines, criminal sanctions and/or civil claims and damages. This could have a material adverse impact on our reputation, business, operating results, cash flows and financial condition.

We may not be successful in attracting and retaining sufficiently skilled employees

        We are highly dependent on the continuous development and successful application of new technologies. In order to achieve this, we need to maintain a focus on recruiting and retaining qualified scientists, engineers, project execution managers, artisans and operators. In addition, we are dependent on highly skilled employees in business and functional roles to establish new business ventures as well as to maintain existing operations.

        The quality and availability of skills in certain labour markets is impacted by the challenges within the education and training systems in certain countries in which we operate.

        Localisation, diversity and other similar legislation in countries in which we operate are also key considerations in the attraction and retention of sufficiently skilled employees. In an increasingly competitive market for limited skills, failure to attract and retain people with the right capabilities and experience could negatively affect our ability to operate existing facilities, to introduce and maintain the appropriate technological improvements to our business, as

well as our ability to successfully construct and commission new plants or establish new business.

Intellectual property risks may adversely affect our freedom to operate our processes and sell our products and may dilute our competitive advantage

        Our various products and processes, including most notably, our chemical, CTL and GTL products and processes have unique characteristics and chemical structures and, as a result, are subject to confidentiality and/or patent protection, the extent of which varies from country to country. Rapid changes in our technology commercialisation strategy may result in a misalignment between our intellectual property protection filing strategy and the countries in which we operate. The disclosure of our confidential information and/or the expiry of a patent may result in increased competition in the market for our products and processes, although the continuous supplementation of our patent portfolio mitigates such risk to an extent. In addition, aggressive patenting by our competitors, particularly in countries like the US, may result in an increased patent infringement risk and may constrain our ability to operate in our preferred markets.

        A significant percentage of our products can be regarded as commodity chemicals, some of which have unique characteristics and chemical structure which make the products suitable for different applications than the typical commodity products. These products are normally utilised by our customers as feedstock to manufacture specialty chemicals or application-type products. We have noticed a worldwide trend of increased filing of patents relating to the composition of product formulations and the applications thereof. These patents may create pressure on those of our customers who market these product formulations which may adversely affect our sales to these customers. These patents may also increase our risk to exposure from limited indemnities provided to our customers of these products in case there is a patent infringement which may impact the use of the product on our customers' side. Patent-related pressures may adversely affect our business, operating results, cash flows and financial condition.

        We believe that our proprietary technology, know-how, confidential information and trade secrets provide us with a competitive advantage. A possible loss of experienced personnel to competitors, and a possible transfer of know-how and trade secrets associated therewith, including the patenting by our competitors of technology built on our know-how obtained through former employees may negatively impact this advantage.

        Similarly, operating and licensing technology in countries in which intellectual property laws are not well established and enforced may result in an inability to effectively enforce our intellectual property rights. The risk of some transfer of our know-how and trade secrets to our competitors is increased by the increase in the number of licences granted under our intellectual property, as well as the increase in the number of licenced plants which are brought into operation through entities which we do not control. As intellectual property warranties and indemnities are provided under each new licence granted, the cumulative risk increases accordingly.

        The above risks may adversely affect our business, operating results, cash flows and financial condition.

Increasing competition in relation to products originating from countries with low production costs may adversely affect our business, operating results, cash flows and financial condition

        Certain of our chemical production facilities are located in developed countries, including the United States and Europe. Economic and political conditions in these countries result in relatively high labour costs and, in some regions, relatively inflexible labour markets. Increasing competition from regions with lower production costs and more flexible labour markets, for example the Middle East, India and China, exerts pressure on the competitiveness of our chemical products and, therefore, on our profit margins. This could result in the withdrawal of particular products or the closure of specific facilities, which may have a material adverse effect on our business, operating results, cash flows and financial condition.

We may face potential costs in connection with industry-related accidents or deliberate acts of terror causing property damage, personal injuries or environmental contamination

        We operate coal mines, explore for and produce oil and gas and operate a number of plants and facilities for the manufacture, storage, processing and transportation of oil, chemicals and gas, related raw materials, products and wastes. These facilities and their respective operations are subject to various risks, such as fires, explosions, releases and loss of containment of hazardous substances, soil and water contamination, flooding and land subsidence, among others. As a result, we are subject to the risk of, and in the past have experienced, industry-related incidents. Our facilities are also subject to the risk of deliberate acts of terror.

        Our main Secunda Synfuels production facilities are concentrated in a relatively small area in Secunda, South Africa. The size of the facility is approximately 82,5 square kilometres (km²) with operating plants accounting for 8,35 km². This facility utilises feedstock from our mining and gas businesses, while the chemical and oil businesses rely on the facility for the raw materials it produces. Accidents and acts of terror may result in damage to our facilities and may require shutdown of the affected facilities, thereby disrupting production and increasing production costs and may in turn disrupt the mining, gas, chemicals and oil businesses which make up a significant portion of our total income. Furthermore, accidents or acts of terror at our operations may have caused, or may in future cause, environmental contamination, personal injuries, health impairment or fatalities and may result in exposure to extensive environmental remediation costs, civil litigation, the imposition of fines and penalties and the need to obtain or implement costly pollution control technology.

        Our products are ultimately sold to customers around the world and this exposes us to risks related to the transportation of such products by road, rail or marine vessels. Such activities take place in the public domain

exposing us to incident risks over which we have limited control.

        It is Sasol's policy to procure appropriate property damage and business interruption insurance cover for its production facilities above acceptable deductible levels at acceptable commercial premiums. However, full cover for all loss scenarios may not be available at acceptable commercial rates, and we cannot give any assurance that the insurance procured for any particular year would cover all potential risks sufficiently or that the insurers will have the financial ability to pay all claims that may arise.

        The costs we may incur as a result of the above or related factors could have a material adverse effect on our business, operating results, cash flows and financial condition.

We may face the risk of information security breaches or attempts to disrupt critical information technology services, which may adversely impact our operations

        The increasing use of information technology (IT) systems in operations is making all industries, including the energy and chemicals industries, much more susceptible to cyber threats. IT systems with related IT services include our financial, commercial, transacting and production systems. Recent global trends have shown that the energy sector is increasingly becoming the target of cyber-attacks. Although we have an information security programme in place, we may be vulnerable to cyber-attacks and attempts to gain unauthorised access to our IT systems. Disruption of critical IT services, or breaches of information security, could have a material adverse effect on our disclosure control processes.

Our coal, synthetic oil, natural oil and natural gas reserve estimates may be materially different from quantities that we eventually recover, and we may be unable to replace our reserves or acquire new reserves at a rate that is adequate to support our growth

        Our reported coal, synthetic oil, natural oil and gas reserves are estimated quantities based on applicable reporting regulations that under

present and anticipated conditions have the potential to be economically mined, processed or produced.

        There are numerous uncertainties inherent in estimating quantities of reserves and in projecting future rates of production, including factors which are beyond our control. The accuracy of any reserve estimate is a function of the quality of available data, engineering and geological interpretation and judgement.

        Reserve estimates will require revision based on actual production experience and other factors, including extensions and discoveries. In addition, regulatory changes, market prices, increased production costs and other factors may result in a revision to estimated reserves. Prolonged periods of low oil and natural gas prices may reduce our reported reserves. Significantly revised estimates may have a material adverse effect on our business, operating results, cash flows and financial condition. See "Item 4.D—Property, plants and equipment".

        Further, our inability to access, discover and develop natural gas and oil resources in a timely manner could adversely impact our growth. Delivering our revised group strategy, which is more heavily based on gas and oil than previously, depends on our ability to build a strong portfolio of exploration and development opportunities. Competition for these opportunities, increasing technical and financial challenges and capital commitments may adversely affect our progress to replace our oil and gas reserves and to acquire new reserves, which could have a material adverse effect on our business, operating results, cash flows and financial condition.

We may not be able to exploit technological advances quickly and successfully or competitors may develop superior technologies

        Most of our operations, including the gasification of coal and the manufacture of synfuels and petrochemical products, are highly dependent on the use of advanced technologies. The development, commercialisation and integration of the appropriate advanced

technologies can affect, among other things, the competitiveness of our products, the continuity of our operations, our feedstock requirements and the capacity and efficiency of our production.

        It is possible that new technologies or novel processes may emerge and that existing technologies may be further developed in the fields in which we operate. Unexpected advances in employed technologies or the development of novel processes can affect our operations and product ranges in that they could render the technologies we utilise or the products we produce obsolete or less competitive in the future. Difficulties in accessing new technologies may impede us from implementing them and competitive pressures may force us to implement these new technologies at a substantial cost.

        In addition to the technological challenges, a number of our expansion projects are integrated across a number of Sasol businesses. Delays with the development of an integrated project might, accordingly, have an impact on more than one Sasol business.

        Our ability to compete will depend on our timely and cost-effective implementation of new technological advances. It will also depend on our success in commercialising these advances irrespective of competition we face. Any failure to do so could result in a material adverse effect on our business, operating results, cash flows and financial condition.

Our international activities increase the compliance risks associated with economic and trade sanctions imposed by the United States, the European Union and other jurisdictions

        Our international operations could expose us to trade and economic sanctions or other restrictions imposed by the United States or other governments or organisations, including the United Nations, the European Union and its member countries. Under economic and trading sanctions laws, governments may seek to impose modifications to business practices, and modifications to compliance programmes, which may increase compliance costs, and may subject us to fines, penalties and other sanctions.

        Although we believe that we are in compliance with all applicable sanctions and embargo laws and regulations, and intend to maintain such compliance, there can be no assurance that we will be in compliance in the future, particularly as the scope of certain laws may be unclear and may be subject to changing interpretations.

        We are monitoring developments in the United States, the European Union and other jurisdictions that maintain sanctions programmes, including developments in implementation and enforcement of such sanctions programmes. Expansion of sanctions programmes, embargoes and other restrictions in the future (including additional designations of countries subject to sanctions), or modifications in how existing sanctions are interpreted or enforced, could have a material adverse effect on our business, operating results, cash flows and financial condition.

The exercise of voting rights by holders of American Depositary Receipts is limited in some circumstances

        Holders of American Depositary Receipts (ADRs) may exercise voting rights with respect to the ordinary shares underlying their American Depositary Shares (ADSs) only in accordance with the provisions of our deposit agreement (Deposit Agreement) with The Bank of New York Mellon, as the depositary (Depositary). For example, ADR holders will not receive notice of a meeting directly from us. Rather, we will provide notice of a shareholders meeting to The Bank of New York Mellon in accordance with the Deposit Agreement. The Bank of New York Mellon has undertaken in turn, as soon as practicable after receipt of our notice, to mail voting materials to holders of ADRs. These voting materials include information on the matters to be voted on as contained in our notice of the shareholders meeting and a statement that the holders of ADRs on a specified date will be entitled, subject to any applicable provision of the laws of South Africa and our Memorandum of Incorporation, to

instruct The Bank of New York Mellon as to the exercise of the voting rights pertaining to the shares underlying their respective ADSs.

        Upon the written instruction of an ADR holder, The Bank of New York Mellon will endeavour, in so far as practicable, to vote or cause to be voted the shares underlying the ADSs in accordance with the instructions received. If instructions from an ADR holder are not received by The Bank of New York Mellon by the date specified in the voting materials, The Bank of New York Mellon will not request a proxy on behalf of such holder. The Bank of New York Mellon will not vote or attempt to exercise the right to vote other than in accordance with the instructions received from ADR holders.

        We cannot assure you that you will receive the voting materials in time to ensure that you can instruct The Bank of New York Mellon to vote the shares underlying your ADSs. In addition, The Bank of New York Mellon and its agents are not responsible for failing to carry out voting instructions or for the manner of carrying out voting instructions. This means that you may not be able to exercise your right to vote and there may be no recourse if your voting rights are not exercised as you directed.

Sales of a large amount of Sasol's ordinary shares and ADSs could adversely affect the prevailing market price of the securities

        Historically, trading volumes and liquidity of shares listed on the JSE Limited (JSE) have been low in comparison with other major markets. The ability of a holder to sell a substantial number of Sasol's ordinary shares on the JSE in a timely manner, especially in a large block trade, may be restricted by this limited liquidity. The sales of ordinary shares or ADSs, if substantial, or the perception that these sales may occur and be substantial, could exert downward pressure on the prevailing market prices for the Sasol ordinary shares or ADSs, causing their market prices to decline.

ITEM 4.    INFORMATION ON THE COMPANY

4.A History and development of the company

        Sasol Limited, the ultimate holding company of our group, is a public company. It was incorporated under the laws of the Republic of South Africa in 1979 and has been listed on the JSE Limited (JSE) since October 1979. Our registered office and corporate headquarters are at 1 Sturdee Avenue, Rosebank, 2196, South Africa, and our telephone number is +27 11 441 3111. Our agent for service of process in the United States is Puglisi & Associates, 850 Library Avenue, Suite 204, P.O. Box 885, Newark, Delaware 19715.

        For a description of the company's principal capital expenditures and divestitures refer to "Item 5.B—Liquidity and capital resources".

4.B Business overview

        Sasol is an international integrated chemicals and energy company that leverages technologies and the expertise of our 30 100 people working in 33 countries. We develop and commercialise technologies, and build and operate world-scale facilities, to produce a range of product streams, including liquid fuels, chemicals and low-carbon electricity.

        For detail regarding the following sections, refer as indicated.

•

For information regarding our Business Overview, refer "Integrated Report—Our operating model structure" as contained in Exhibit 99.4;



•

For information regarding our Strategy, refer Integrated Report—"Our strategy" as contained in Exhibit 99.5; and "Our integrated value chain" as contained in Exhibit 99.6;



•

For a description of the company's operations and principle activities refer "Integrated Report—Our operating model structure" as contained in Exhibit 99.4; "Integrated Report—Operational reviews" as contained in Exhibit 99.7; and Item 18—"Annual Financial Statements—

Segment information"; and

•

For a description of our principal markets, refer Item 18—"Annual Financial Statements—Geographic segmentation", which provides information regarding the geographic location of the principal markets in which we generate our turnover, as well as of our asset base.

Seasonality

        Production and sales volumes of our products are generally not subject to seasonal fluctuations, but tend to follow broader global industry trends and are therefore impacted by macro-economic factors. Sasol operates globally and in many diverse markets, and accordingly, no element of seasonality is likely to be material to the results of Sasol as a whole.

Raw materials

        The main feedstock components for our businesses are coal, natural gas and crude oil produced by Mining and Exploration and Production International. Feedstock for the production of fuels and chemical products is obtained from Mining, Exploration and Production International as well as purchased from external suppliers.

        In our Performance Chemicals business, the main feedstocks used are kerosene, benzene, ethane, ethylene, oleochemical and aluminium. Feedstocks are purchased externally, with the exception of a portion of our ethylene which is produced at our Lake Charles facility and the Fischer-Tropsch-based feedstock used for our South African alcohol, wax, ammonia, phenolics, and co-monomer production. The pricing of most of these materials follow the crude oil and energy price.

Marketing channels and principal markets

        In our Operating Business Units, we make use of direct sales models, long-term marketing gas sales agreements and short-term crude oil sale and purchase agreements.

        Our Regional Operating Hubs channel their products through the Strategic Business Units to external markets.

        In our Strategic Business Units, marketing channels can be divided into the following main areas:

        Energy:

•

Liquid fuel sales to licenced wholesalers;



•

Liquid fuels direct marketing (retail and commercial markets in South Africa);



•

Natural gas marketing in South Africa (wholesale and commercial markets);



•

Liquid fuels overland exports into Southern Africa; and



•

Electricity sales to Eskom and Electricidade de Moçambique (EDM) in Mozambique.

        Base chemicals:

•

Polymer products are sold directly to customers in South Africa and internationally;



•

Solvents products are sold through 13 regional sales offices and nine storage hubs in South Africa, Europe, the Asia-Pacific region, the Middle East and the United States; and



•

Fertiliser and explosives are sold mainly within Southern Africa.

        Performance chemicals:

•

The majority of products are sold directly to end-user customers under annual and multi-year contracts.

Factors on which the business is dependent

Intellectual property

        For information regarding our patents and licences, refer to the "Integrated Report—Intellectual capital" as contained in Exhibit 99.8.

        The Sasol Slurry Phase Distillate^TM (SPD^TM) process—Based on our Technology function's extensive experience in the commercial application of the Fischer-Tropsch (FT)

technology, we have successfully developed the FT-based Sasol SPD^TM process for converting natural gas into high-quality, environment-friendly GTL diesel, GTL kerosene and other liquid hydrocarbons.

        The SPD^TM process consists of three main steps, each of which is commercially proven. These include:

•

the Haldor Topsøe reforming technology, which converts natural gas and oxygen into syngas;



•

our Slurry Phase Distillate FT technology, which converts syngas into hydrocarbons; and



•

the Chevron Isocracking^TM technology, which converts hydrocarbons into particular products, mainly diesel, naphtha and LPG.

        Currently we believe, based on our knowledge of the industry and publicly available information, that globally, we have the most extensive experience in the application of FT technology on a commercial scale. Given the increasing discovery of extensive natural gas reserves, our Sasol SPD^TM process can be applied with significant commercial advantages in various parts of the world. As a consequence, our technology has evoked interest from countries and companies with extensive natural gas reserves as an appealing alternative for commercialising these reserves. The Sasol SPD^TM process converts natural gas into diesel and other liquid hydrocarbons, which are generally more environmentally friendly and of higher quality and performance compared to the equivalent crude oil-derived products. In view of product specifications gradually becoming more stringent, especially with respect to emissions, we believe that the option of environmentally friendly GTL fuels will become increasingly appealing. GTL diesel can be used with optimised engines for best performance, although it can also be utilised with current compression ignition engines. GTL diesel is currently used as a cost-competitive blend stock for conventional diesels, thereby enabling conventional diesel producers to improve the quality and capacity of their product without

investing substantially in sophisticated new plants and infrastructure. We anticipate that the combined factors of GTL diesel's superior characteristics and the prevailing market conditions in developed economies will enable GTL diesel to command premium prices for either niche applications or as a blend stock for upgrading lower-specification products. The construction of GTL facilities and the production of GTL fuels require significant capital investment.

Key contracts

        ORYX GTL, our 49% joint venture in Qatar, purchases natural gas feedstock from Al Khaleej Gas, a joint venture between ExxonMobil Middle East Gas Marketing Limited and Qatar Petroleum, under a gas purchase agreement with a contracted minimum off-take volume. The agreement commenced in November 2005 and is valid for a term of 25 years. The term of the agreement may be extended by the parties on terms and conditions that are mutually agreed.

        Escravos GTL (EGTL), in which we hold a 10% indirect interest, purchases 100% of its gas requirements for the EGTL plant from Chevron Nigeria Limited (CNL) and Nigerian National Petroleum Corporation (NNPC), the upstream joint venture partners. The agreement commenced in November 2005, and is valid for a term of 25 years. The term of the agreement may be extended by the parties on terms and conditions that are mutually agreed.

        Ethane and propane used as feedstock for the cracker in Malaysia (12% shareholding) (PETRONAS Chemicals Olefins Sdn Bhd), is purchased from PETRONAS at a set price, which escalates annually in line with US inflation rates.

        Refer to Item 4.D—Exploration and Production International" for detail regarding key contracts in Gabon and Mozambique.

Legal proceedings and other contingencies

        From time to time, Sasol companies are involved in litigation, tax and similar proceedings in the normal course of business. A detailed

assessment is performed on each matter, and a provision is recognised, or contingent liability disclosed, where appropriate in terms of International Financial Reporting Standards. Although the outcome of these proceedings and claims cannot be predicted with certainty, the company does not believe that the outcome of any of these cases would have a material effect on the group's financial results.

        Following a judgement by the South African Constitutional Court in 2011, which confirmed the right of employees in the mining industry who contracted certain occupational diseases to claim damages from their employers, a number of legal cases were instituted in South Africa. During 2014 and 2015, similar cases have also been threatened against participants in the coal sector of the mining industry.

        As a result of the Constitutional Court judgement referred to above, Sasol Mining is currently the defendant in three separate litigation matters involving 22 former employees. Sasol Mining is defending the claims. It is not possible at this stage to make an estimate of the likelihood that the plaintiffs will succeed with their claim and if successful, what the quantum of damages would be that the court will award. Therefore, no provision has been raised at 30 June 2016.

        Further, from time to time, communities and non-governmental organisations challenge our environmental licences and related applications on the basis of concerns regarding potential health and environmental impacts associated with Sasol's activities.

        For instance, the South African Air Quality Act prescribed minimum emission standards, applicable to existing plants which had to be complied with starting on 1 April 2015. Some of our business units were not able to comply with the new emission standards, and accordingly, applied for postponements. On 24 February 2015, the Department of Environmental Affairs issued the postponement decisions. The Legal Resources Centre in South Africa submitted appeals to the Minister of Environmental Affairs, challenging the postponement decisions of the National Air Quality Officer. On 13 April 2016, the Minister of Environmental Affairs

rejected the appeals and thus the postponement decisions granted to Sasol remain valid. It is uncertain whether the postponement decisions can be always defended successfully if legally challenged by third parties. In case of the postponement decisions being declared invalid, the consequences for Sasol may be material as operating units may be found in non-compliance with the Air Quality Act which may trigger substantial investment requirements or even a cease operation decision by the competent authorities.

Competition law compliance

        Sasol continuously evaluates its compliance programmes and controls in general, including its competition law compliance programme and controls. As a consequence of these compliance programmes and controls, including monitoring and review activities, Sasol has also adopted appropriate remedial and/or mitigating steps, where necessary or advisable, lodged leniency applications and made disclosures on material findings as and when appropriate. These ongoing compliance activities have already revealed, and may still reveal, competition law contraventions or potential contraventions in respect of which we have taken, or will take, appropriate remedial and/or mitigating steps including lodging leniency applications.

        The South African Competition Commission is conducting investigations into the South African petroleum products industry. Sasol continues to interact and co-operate with the Commission in respect of the subject matter of current leniency applications brought by Sasol, as well as in the areas that are subject to the Commission's investigations.

Environmental Orders

        Sasol is subject to loss contingencies pursuant to numerous national and local environmental laws and regulations that regulate the discharge of materials into the environment and that may require Sasol to remediate or rehabilitate the effects of its operations on the environment. The contingencies may exist at a number of sites, including, but not limited to, sites where action has been taken to remediate

soil and groundwater contamination. These future costs are not fully determinable due to factors such as the unknown extent of possible contamination, uncertainty regarding the timing and extent of remediation actions that may be required, the allocation of the environmental obligation among multiple parties, the discretion of regulators and changing legal requirements.

        Sasol's environmental obligation accrued at 30 June 2016 was R17 127 million compared to R11 022 million at 30 June 2015. Included in this balance is an amount accrued of approximately R4 810 million in respect of the costs of remediation of soil and groundwater contamination and similar environmental costs. These costs relate to the following activities: site assessments, soil and groundwater clean-up and remediation, and on-going monitoring. Due to uncertainties regarding future costs, the potential loss in excess of the amount accrued cannot be reasonably determined.

        Although Sasol has provided for known environmental obligations that are probable and reasonably estimable, the amount of additional future costs relating to remediation and rehabilitation may be material to results of operations in the period in which they are recognised. It is not expected that these environmental obligations will have a material effect on the financial position of the group.

Regulation

        The South African government has, over the past 20 years, introduced a legislative and policy regime with the imperative of redressing historical social and economic inequalities, as stated in the Constitution of the Republic of South Africa, by way of the empowerment of historically disadvantaged South Africans (HDSAs) in the areas of ownership, management and control, employment equity, skills development, procurement, enterprise development and socio-economic development.

        The majority of our operations are based in South Africa, but we also operate in numerous other countries throughout the world. In South Africa, we operate coal mines and a number of production plants and facilities for the storage, processing and transportation of raw materials,

products and wastes related to coal, oil, chemicals and gas. These facilities and the respective operations are subject to various laws and regulations that may become more stringent and may, in some cases, affect our business, operating results, cash flows and financial condition.

        Our business activities in South Africa relating to coal mining, petroleum production, distribution and marketing of fuel products, electricity and gas are subject to regulation by various government departments and independent regulators. Refer to "Item 3.D—Risk factors" for details on particular aspects of regulation affecting our business activities.

Empowerment of historically disadvantaged South Africans

Black Economic Empowerment policies and legislation

Broad-based Black Economic Empowerment Act, 53 of 2003

        Sasol is well aligned with the economic transformation and sustainable development objectives embodied in the South African legislative and regulatory framework governing Broad-based Black Economic Empowerment (B-BBEE). The key elements of this framework are the B-BBEE Act and the Codes of Good Practice (the new Codes were gazetted on 11 October 2013, with a transition period until 30 April 2015) for B-BBEE issued by the Minister of Trade and Industry in terms of the Act (Codes), as well as the Charters (i.e. the Mining Charter and Liquid Fuels Charter) adopted by the various sectors within which Sasol operates businesses and related scorecards.

        The scorecard contained in the 2013 Codes measures the following key pillars:

•

ownership;



•

management control;



•

skills development;



•

enterprise and supplier development; and



•

socio-economic development.

        In addition to some changes in the key pillars, including the introduction of sub-minimum requirements within certain pillars, the 2013 Codes also contain a higher points threshold in the scorecard than their predecessor in order to achieve a similar Contributor level status. As a result, Sasol has declined from a Level 4 under the previous Codes to a Level 8 under the new Codes. The measures discussed below do however reflect Sasol's commitment to giving meaningful effect to the letter and spirit of the B-BBEE legislative and regulatory framework. We view B-BBEE in South Africa as a business imperative and have embarked on a project to realise the goals envisaged by the revised codes, and re-establish a Level 4 by 2020.

Management Control

        In keeping with the spirit of the Charter, as well as the Employment Equity Act, specific employment equity targets have been set across all role categories of the organisation. Actions have been implemented to ensure that HDSAs are given equal and fair opportunity in terms of appointments, development and career progression. The actual employment equity performance is reviewed periodically to ensure that appropriate plans are in place to enable the targets to be met. Learning programmes, including coaching and mentorship, are in place to create an inclusive work environment that is suited to the successful nurturing of HDSA staff.

Skills Development

        Sasol's skills development strategy is aligned to and supports the goals of the National Development Plan (NDP) 2030, B-BBEE, Employment Equity and Skills Development Acts. Sasol supports the broader objectives of skills development and has been a significant contributor to skills development and in turn socio-economic development in South Africa over the years.

        To secure and develop a pipeline of future talent for Sasol, we continue to run one of the largest bursary, learnership, graduate development and internship schemes in South Africa.

Enterprise and Supplier Development

        We recognise that a growing and active small, medium and micro-enterprises (SMMEs) sector is vital for broadening economic participation and delivering on socio-economic development priorities. Supporting the development of SMMEs does not only help us localise and diversify our supply chain, it also contributes to economic growth and transformation in South Africa. To drive these objectives, we have a dedicated Enterprise and Supplier Development (ESD) team. Our ESD support to SMMEs includes loan funding to majority black-owned suppliers through the Sasol Siyakha Enterprise and Supplier Development Fund and, business development and incubation support through our Sasol Business Incubator located in Sasolburg. Further, our experience in small business development has indicated that SMMEs require market access support. As a result, we have developed favourable preferential procurement requirements in our sourcing strategies, to enable black-owned and 30% black women-owned SMMEs into our supply chain.

Socio-economic development

        Being a credible corporate partner and member of the communities in which we operate is at the core of our approach to our socio-economic development contribution. Our social investments are informed by the issues and challenges of our communities established through extensive engagements with multiple stakeholders. Regular direct engagements with members of our host communities have enabled us to understand their concerns and needs and them understanding ours. As a result, we have realigned our social investments towards programmes that enable access to quality education; stimulate local economic development and job creation, bolster the pool of technical, vocational and science, technology, engineering and mathematics-related skills; facilitate collaboration to advance the delivery of municipal services; and promote the protection of the environment.

Sasol Inzalo share transaction

        In 2008, Sasol entered into the Sasol Inzalo black economic empowerment (BEE) share transaction, which resulted in the transfer of beneficial ownership of 10% (63,1 million shares) of Sasol Limited's issued share capital before the implementation of this transaction, to its employees and a wide spread of black South Africans (BEE participants). Refer to "Item 18—Annual Financial Statements—Note 36—Share based payment reserve".

The Mining Charter

        The Mining Charter requires mining companies to meet various criteria intended to promote meaningful participation of HDSAs in the mining sector.

        A draft revision of the Mining Charter was published on 15 April 2016 for public comment. The revised Mining Charter is intended to ensure alignment between the B-BBEE Act and the Mining Charter. The draft Mining Charter determines that the "once-empowered-always-empowered" principle is not applicable, even though the declaratory process is still to be finalised by the court. In 2015, the Chamber of Mines and the Department of Mineral Resources agreed to approach the Court and obtain a declaratory order to determine whether the "once-empowered-always-empowered" principle is applicable. The period for public comment closed during May 2016 and the Department of Mineral Resources is currently considering the inputs, whereafter it is expected that an updated draft Mining Charter will be published. It is not certain whether further comments will be invited or if additional consultations will take place before the final revised Mining Charter is implemented. Sasol Mining will consider its level of compliance against the revised Mining Charter as soon as it is implemented.

        Currently, Sasol Mining exceeds the 26% ownership target set out in the Mining Charter.

The Liquid Fuels Charter

        In 2000, following a process of consultation, the Department of Minerals and Energy (now the Department of Energy) and a number of companies in the liquid fuels industry, including Sasol Oil, signed the Liquid Fuels Charter (the Charter) which sets out the principles for the empowerment of HDSAs in the South African petroleum and liquid fuels industry. The Charter requires liquid fuels companies, including Sasol Oil, to ensure that HDSAs hold at least 25% equity ownership in the South African entity holding their operating assets by the end of a period of 10 years from the date of the signing of the Charter.

        The Charter also requires liquid fuels companies to adopt policies to further other empowerment objectives of the Charter, among other things, employment equity, preferential procurement and skills development.

        In order to meet the equity ownership objective of the Charter, Sasol Limited concluded a BEE transaction with an HDSA-owned company, Tshwarisano LFB Investment (Pty) Ltd (Tshwarisano), in terms of which Sasol Limited disposed of 25% of its shareholding in Sasol Oil to Tshwarisano.

        With effect from 1 July 2006, Sasol Oil met the 25% BEE ownership target, with Tshwarisano holding 25% of the shares in Sasol Oil in line with the Charter.

        Tshwarisano settled the last of its debt relating to its equity shareholding in February 2016, based on the attractive returns generated by Sasol Oil Proprietary Limited over many years. Tshwarisano's shareholding is therefore fully unencumbered. This represents the realisation of one aspect of our work to deliver social and economic value.

        The Charter further provides for the evaluation by the Department of Energy, from time to time, of the industry's progress in achieving the objectives of the Charter. Given the fact that the aforementioned 10-year period had run its course, the Department of Energy initiated a compliance audit in respect of the Charter in the latter part of the 2010 calendar year. Sasol Oil's compliance with the Charter

was audited during the first half of the 2011 calendar year and the final industry report, albeit that the written report has not yet been issued to industry, has been discussed with industry by the Department of Energy on an aggregated basis. Together with the other members of the South African Petroleum Industry Association (SAPIA), Sasol Oil is involved in the ongoing engagements with the Department of Energy regarding the status and possible review of the Liquid Fuels Charter in the context of the new B-BBEE legislation and the Codes of Good Practice.

The Restitution of Land Rights Act, 22 of 1994

        Our privately held land could be subject to land restitution claims under the Restitution of Land Rights Act, 22 of 1994. Under this act, any person who was dispossessed of rights to land in South Africa as a result of past racially discriminatory laws or practices is granted certain remedies, including, but not limited to the restoration of the land claimed with or without compensation to the holder.

Mining rights

        Sasol Mining is the holder of mining rights in terms of the Mineral and Petroleum Resources Development Act, 2002, in respect of its operations in Mpumalanga and the Free State province in South Africa.

        The mining rights have been granted until 2040, and can be renewed for further periods of 30 years at a time depending on the approval of the competent authorities and the applicable legal framework at that point in time.

Safety, health and environment

Regions in which Sasol operates and their applicable legislation

South Africa

        The major part of our operations is located in South Africa. We operate a number of plants and facilities for the manufacture, storage, processing and transportation of chemical feedstock, products and wastes. These operations are subject to numerous laws and regulations

relating to safety, health and the protection of the environment.

Environmental regulation

        The Constitution of the Republic of South Africa (the Constitution) provides the framework for the environmental legislation in South Africa. The South African National Environmental Management Act is a framework Act which aims to give effect to the Constitutional environmental right. It also gives effect to specific environmental management acts, such as the National Environmental Management: Waste Act, the National Water Act and the National Environmental Management: Air Quality Act which all, in turn, regulate specific environmental media and the associated regulation of potential impacts thereon. The National Environmental Management: Waste Act also specifically regulates the process for management of contaminated land. These Acts also provide for enforcement mechanisms as well as provisions for the imposition of criminal sanction. These also apply to mining activities.

        Apart from its international commitments, climate change regulation in South Africa is still being developed. Sasol continues to engage with the South African government on the development of pollution prevention plans, a draft Carbon Tax Bill as well as the imposition of carbon budgets by the Department of Environmental Affairs. Sasol's engagement focuses on the need for alignment of these instruments in an effort to create long-term policy certainty.

        For information regarding our challenges associated with these regulatory requirements refer to "Item 3.D—Risk factors".

Health and safety

        Occupational health and safety is governed by the Occupational Health and Safety Act and the Mine Health and Safety Act for compensation of employees who suffer occupationally related diseases or injuries. Specific requirements for chemicals and hazardous substances are currently regulated by the Hazardous Substances Act.

Germany and Italy

        In Germany and Italy, we operate a number of plants and facilities for the manufacture, storage, processing and transportation of chemical feedstock, products and waste. These operations are subject to numerous laws and ordinances relating to safety, health and the protection of the environment. The objectives and requirements of these legal frameworks are largely consistent with that of the South African Framework, although more established and entrenched in some respects.

Hazardous substances

        Provisions for the protection of humans and the environment against the harmful effects of hazardous substances and preparations are provided in the Chemicals Acts, and related ordinances on the Prohibition of Certain Chemicals and Hazardous Incidents. All hazardous substances are subject to the requirements of the European Union (EU) REACH Regulation, including requirements for registration and notification obligation before these substances can be brought onto the market. Hazardous substances and mixtures must be classified, labelled and packed in accordance with the EU Classification, Labelling and Packaging Regulation. Further regulations prohibiting and limiting manufacture, marketing and use also apply.

United States

        In the US, we operate a number of plants and facilities for the storage and processing of chemical feedstock, products and wastes. Sasol's US operations and growth projects are subject to numerous laws, regulations and ordinances relating to safety, health and the protection of the environment. The objectives and requirements of these legal frameworks are largely consistent with that of the South African Framework, although more established and entrenched in some respects.

        Hazardous substances are, in particular, regulated by a standard that incorporates the requirements of the Globally Harmonised System for classification and labelling of chemicals into occupational health and safety

legislations. Chemical manufacturers and importers are required to evaluate the hazards of the chemicals they produce or import, and prepare labels and safety data sheets to convey the hazard information to their downstream customers.

Canada

Oil and natural gas production

        The British Columbia (BC) Petroleum and Natural Gas Act and Environmental Management Act are the primary sources of regulatory controls over our natural oil and gas-producing areas in Canada. The acts and supporting legislation are administered by the BC Oil & Gas Commission to regulate the oil and gas industry and ensure public safety, environmental protection, conservation of petroleum resources and equitable participation in production.

Mozambique

        A National Environmental Policy (Resolution 5/95) is the government document outlining the priorities for environmental management and sustainable development in Mozambique, including the required legal framework. The Environmental Law (Law 20/1997) provides a legal framework for the use and correct management of the environment and its components and to assure sustainable development in Mozambique.

Environmental Regulations for Petroleum Operations (Decree 56/2010)

        Regulations on Environmental Quality and Emission Standards (Decree 18/2004) aim to establish the standards for environmental quality and for effluents release in order to assure the effective control and maintenance of the admissible standards of concentration of polluting substances on the environmental components. This is supplemented by specific regulations on solid waste and water quality management.

        The Petroleum Act (Law 21/2014) requires holders of exploration and production rights to conduct petroleum operations in compliance

with environmental and other applicable legislation. The law makes provision for compensation to be paid under general legislation by the holder of a right to conduct petroleum operations to persons whose assets are damaged. The law establishes strict liability for the holder of the right who causes environmental damage or pollution.

Gabon

Natural oil and gas activities

        The primary legislation in Gabon governing oil and gas activities is the new Hydrocarbon Law (law No. 011/2014) enacted by the government of Gabon on 15 September 2014, with the aim to establish a new regime governing hydrocarbons exploration, exploitation and transportation activities. Existing production sharing contracts remain in force until their expiry and will remain governed by Law No. 14/82 dated 24 January 1983, with the exception of a limited number of additional obligations under the new regime such as a natural gas flaring prohibition.

Other countries

        In a number of other countries, we are engaged in various activities that are regulated by local and international laws, regulations and treaties. In Malaysia, China and other countries, we operate plants and facilities for the storage, processing and transportation of chemical substances, including feedstock, products and waste. In the United Arab Emirates, Nigeria and other countries, we are involved, or are in the process of becoming involved, in exploration, extraction, processing or storage and transportation activities in connection with feedstock, products and waste relating to natural oil and gas, petroleum and chemical substances.

        In Qatar, we participate in a joint venture owning and operating a GTL facility involving the production, storage and transportation of GTL diesel, GTL naphtha and LPG. These operations are subject to numerous laws and ordinances relating to safety, health and the protection of the environment.

        Our operations in the respective jurisdictions are subject to numerous laws and regulations relating to exploration and mining rights and the protection of safety, health and the environment.

4.C Organisational Structure

        Sasol Limited (Sasol) is the ultimate parent of the Sasol group of companies.

        Sasol South Africa (Pty) Ltd, a wholly owned subsidiary in the Sasol group and a company incorporated in the Republic of South Africa, primarily holds our operations located in South Africa. A number of other subsidiaries incorporated in the Republic of South Africa, including Sasol Oil (Pty) Ltd, Sasol Mining Holdings (Pty) Ltd, Sasol Middle East and India (Pty) Ltd and Sasol Africa (Pty) Ltd, hold our interests in operations in South Africa, Africa and the Middle East. Sasol Financing (Pty) Ltd, responsible for the management of cash

resources and investments, and Sasol Technology (Pty) Ltd, responsible for engineering services, research, development and technology transfer, are also wholly owned and incorporated in the Republic of South Africa.

        Our wholly owned subsidiary, Sasol Investment Company (Pty) Ltd, a company incorporated in the Republic of South Africa, primarily holds our interests in companies incorporated outside South Africa, including Sasol European Holdings Limited (United Kingdom), Sasol Wax International AG (Germany), Sasol (USA) Corporation (United States), Sasol Holdings (Asia Pacific) (Pty) Ltd (South Africa), Sasol Chemical Holdings International (Pty) Ltd (South Africa), Sasol Canada Holdings Limited (Canada) and their subsidiaries.

        See Exhibit 8.1 for a list of our significant subsidiaries and significantly jointly controlled entities.

4.D Property, plants and equipment

        Refer to "Item 18—Annual Financial Statements—Note 17—Property, plant and equipment" for further information regarding our property, plant and equipment.

Mining

Coal mining facilities

        Our main coal mining facilities are located at the Secunda Mining Complex, which consists of underground collieries (Bosjesspruit, Brandspruit, Impumelelo, Middelbult, Syferfontein, and Twistdraai, Thubelisha shaft) and the Sigma complex consisting of the Mooikraal colliery near Sasolburg.

        For detail regarding the cost of the assets in our coal mining facilities, refer to the segmental information contained in "Item 18—Annual Financial Statements—Note 17—Property, plant and equipment".

        A map showing the location of our coal properties and major manufacturing plants in South Africa is shown on page M-1.

        Mining operates seven mines for the supply of coal to the Secunda Synfuels Operations, Sasolburg Operations (utility coal only) and the external market. The annual production of each mine, the

33

Table of Contents

primary market to which it supplies coal and the location of each mine are indicated in the table below:

Processing operations

        Coal export business—Secunda operations.    We started the coal export business in August 1996. Run of mine coal is sourced from the existing East shaft of Twistdraai Colliery (formerly East, West and Central shafts) and the Thubelisha shaft. The export beneficiation plant has a design throughput capacity of 10,5 Million tons (Mt) per annum. In 2016, we produced 8,2Mt from Twistdraai, Thubelisha shaft; of which we beneficiated 8,1Mt.

        The run of mine (ROM) coal is transported via overland conveyor belts to the export beneficiation plant from the Twistdraai shafts. The export product is loaded onto trains by means of a rapid load-out system, and then transported to the Richards Bay Coal Terminal (RBCT) in KwaZulu-Natal.

        The capacity at the RBCT was increased from 76Mt to 91Mt per year, following the commissioning of the Phase V expansion in May 2010. Mining has a 4,23% share in the capacity of this terminal, which corresponds to the existing entitlement of 3,6Mt per year. For the foreseeable future, we anticipate exports of approximately 3,25Mt per year, equal to the exports in 2016.

        Sasol Coal Supply—Secunda operations.    Sasol Coal Supply operates the coal handling facility between Mining and Secunda Synfuels Operations by stacking and blending coal on six live stockpiles. The overland conveyors from the mining operations to the coal handling facility are, in total, 100 kilometres (km) long and also form part of the Sasol Coal Supply operation.

        The operation has a live stockpile capacity of 660 000 tons, which is turned over around 1,2 times per week. In addition, there is a strategic stockpile capacity of more than 2,0Mt. The objectives of this facility are:

•

to homogenise the coal quality supplied to Secunda Synfuels Operations;



•

to keep mine bunkers empty;



•

to keep the Secunda Synfuels Operations bunkers full with a product that conforms to customer requirements;



•

to maintain a buffer stockpile to ensure even supply; and



•

to prevent fine coal generation.

        The daily coal supply to Secunda Synfuels Operations is approximately 112 000 tons.

Coal exploration techniques

        Mining's geology department employs several exploration techniques in assessing the geological risks associated with the exploitation of the coal deposits. These techniques are applied in a mutually supportive way to achieve an optimal geological model of the relevant coal seams, targeted for production purposes. The Highveld Basin is considered to be structurally complex when compared to the other coalfields in South Africa where mining activities take place. As a result, Mining bases its geological modelling on sufficient and varied geological information. This approach is utilised in order to achieve a high level of confidence and support to the production environment.

        Core recovery exploration drilling.    This is the primary exploration technique that is applied in all exploration areas, especially during reconnaissance phases. In and around operational mines, the average vertical borehole density varies from 1:10 to 1:15 (boreholes per hectare), while in medium-term mining areas, the average borehole density is in the order of 1:25. Depths of the boreholes drilled vary, depending on the depth to the Pre-Karoo basement, from 160 metres (m) to 380m. The major application of this technique is to locate the coal horizons, to determine coal quality and to gather structural information about dolerite dykes and sills, and the associated de-volatilisation and displacement of coal reserves. This information is used to compile geological models and forms the basis of geological interpretation.

        Directional drilling.    Directional drilling from surface to in-seam has been successfully applied for several years. A circular area with a radius of approximately 1,4km of coal deposit can be covered by this method from one drill site. The main objective of this approach is to locate dolerite dykes and transgressive dolerite sills, as well as faults with displacements larger than the coal seam thickness.

        Horizontal drilling.    This technique is applied to all operational underground mines and supplies short-term (minimum three months) exploration coverage per mining section.

No core is usually recovered, although core recovery is possible, if required. The main objective is to locate dolerite dykes and transgressive sills intersecting the coal mining horizon, by drilling horizontal holes in the coal seam from a mined out area. A drilling reach of up to 1km is possible, although the average length is usually 800m in undisturbed coal.

        Aeromagnetic surveys.    Many explorations are usually aero-magnetically surveyed before the focused exploration is initiated. The main objective is to locate magnetic dolerite sills and dykes, as well as large-scale fault zones.

        Geophysical wireline surveys of directional boreholes.    Geophysical surveys are routinely conducted in the completed directional drilled boreholes. This results in the availability of detailed information leading to increased confidence of the surface directional drilling results.

Secunda operations

        The coal supplied to Secunda Synfuels Operations is the raw coal mined from the five mines supplying Secunda Synfuels Operations exclusively and the secondary product from the export beneficiation plant.

        We have carried out extensive geological exploration in the coal resource areas, and undertake additional exploration to update and refine the geological models. This allows for accurate forecasting of geological conditions and coal qualities, and also effective planning and utilisation of coal reserves.

Computation and storage of geological information

        We store geological information in the acQuire database. We conduct regular data validation and quality checking through several in-house methods. Data modelling is conducted by manual interpretation and computer-derived geological models, using the Minex 6 edition of the GEOVIA/ MINEX software. Reserves and composite qualities are computed using established and recognised geo-statistical techniques.

General stratigraphy

        The principal coal horizon, the Number 4 Lower Coal Seam, provides some 89,41% (2015—89,66%) of the total proved and probable reserves. The Number 4 Lower Coal Seam is one of six coal horizons occurring in the Vryheid Formation of the Karoo Supergroup, a permo-carboniferous aged, primarily sedimentary sequence. The coal seams are numbered from the oldest to the youngest.

        The Number 4 Lower Coal Seam is a bituminous hard coal, characterised by the following borehole statistics:

•

The depth to the base of the seam ranges from 40m to 241m with an average depth of 135m below the surface topography. All the current mining done on this seam is underground;



•

The floor of the seam dips gently from north to south at approximately 0,5 degrees;



•

The thickness of the seam varies in a range up to 10m with a weighted average thickness of 3,3m. In general, thinner coal is found to the south and thicker coal to the west adjacent to the Pre-Karoo basement highs;



•

The inherent ash content (air dried basis) is an average 28,6%, which is in line with the coal qualities supplied during the past 30 years to Secunda Synfuels Operations;



•

The volatile matter content is tightly clustered around a mean of 19,5% (air dried); and

•

The total sulphur content (air dried), which primarily consists of mineral sulphur in the form of pyrite and minor amounts of organic sulphur, averages 0,92% of the total mass of the coal.

        The other potential coal seam is:

•

The Number 2 Coal Seam at Middelbult colliery and Impumelelo colliery, which has been included in our reserve base.

Reserve estimation (remaining reserves at 31 March 2016)

        We have approximately 3,7 billion tons (Bt) (2015—3,7 Bt) of gross in situ proved and probable coal reserves in the Secunda Deposit and approximately 1,2 Bt (2015—1,2 Bt) of recoverable reserves. The coal reserve estimations are set out in table 1 below. Reported reserves will be converted into synthetic oil reserves, except for reserves which will be used for utilities in Secunda Synfuels Operations and the majority of the Twistdraai, Thubelisha shaft reserves which will be exported. The reserve disclosure in this section includes Mining's total coal resources and reserves available for mining operations in Secunda. These reserves have not been adjusted for the synthetic oil reserves reported in the supplemental oil and gas information. The different reserve areas are depicted on the map on page M-1, as well as whether a specific reserve area has been assigned to a specific mine.

Table 1.

Coal reserve estimations(1) as at 31 March 2016, in the Secunda area where we have converted mining rights (signed on 29 March 2010) in terms of the Mineral and Petroleum Resources Development Act, Act 28 of 2002

Table 2.

Coal qualities, on an air dry basis, in respective coal reserve areas, where Mining has converted mining rights in respect of the Secunda mining complex in terms of the Mineral and Petroleum Resources Development Act, Act 28 of 2002.

Table 3.

Coal qualities, on an as received basis, in respective coal reserve areas, where Mining has converted mining rights in the Secunda mining complex in terms of the Mineral and Petroleum Resources Development Act, Act 28 of 2002.

Criteria for proved and probable

        Over and above the definitions for coal reserves, probable coal reserves and proved coal reserves, set forth in Industry Guide 7, promulgated by the US Securities and Exchange Commission, we consider the following criteria to be pertinent to the classification of the reserves:

        Probable reserves are those reserve areas where the drill hole spacing is sufficiently close in the context of the deposit under consideration, where conceptual mine design can be applied, and for which all the legal and environmental aspects have been considered. Probable reserves can be estimated with a lower level of confidence than proved coal reserves. Currently this classification results in variable drill spacing depending on the complexity of the area being considered and is generally less than 500m, although in some areas it may extend to 880m. The influence of increased drilling in these areas should not materially change the underlying geostatistics of the area on the critical parameters such as seam floor, seam thickness, ash and volatile content.

        Proved reserves are those reserves for which the drill hole spacing is generally less than 350m, for which a complete mine design has been applied which includes layouts and schedules resulting in a full financial estimation of the reserve. This classification has been applied to areas in the production stage or for which a detailed feasibility study has been completed.

Legal rights on coalfields

        Our subsidiary, Sasol Mining (Pty) Ltd, is the holder of various prospecting and mining rights in respect of the areas where we operate, granted in terms of the provisions of the Mineral and Petroleum Resources Development Act, 28 of 2002 (MPRDA). In respect of the Secunda Complex, the mining right, in extent of approximately 168 439ha, became effective on 29 March 2010. It has been amended and is valid for a period of 30 years and comprises the total reserve area shown in table 1 and on page M-1. The amendment to the Secunda Complex mining right has still to be registered in

the Mineral and Petroleum Titles Registration Office. In respect of the Sigma: Mooikraal Operation in the Free State, the two mining rights which became effective on 29 March 2010 were consolidated into a single mining right. The mining right, approximately 6 647 ha in extent, has been granted for a period of 30 years. The consolidation of Sigma: Mooikraal mining rights is still to be registered in the Mineral and Petroleum Titles Registration Office. The validity period of our mining rights may, on application, be renewed for further periods not exceeding 30 years each.

Exploration and Production International (E&PI)

Natural Oil and Gas

        Our natural oil and gas assets are managed by our Exploration and Production International (E&PI) business unit. E&PI's principal activities are the exploration, appraisal, development and production of hydrocarbon resources. Currently we hold equity in three assets with proved reserves in Mozambique, Canada and Gabon. We also have equity in a non-producing asset in Mozambique and in exploration licences in Mozambique, Australia, Nigeria and South Africa. The maps on page M-2 show E&PI's global footprint and the location of our assets.

        In the following narrative sections, unless stated otherwise, all quantitative statements are to gross figures.

Mozambique

Licence Terms

        See "Item 4.D—Developed and Undeveloped Acreage" for the total gross and net developed and undeveloped acreage of our natural oil and gas assets by geographic area, in tabular format, at 30 June 2016.

Development and Production Assets

        In Mozambique, we have interests in two onshore assets, one of which is producing, with proved reserves. The other consists of two areas under development and other reservoirs that are being assessed for commerciality.

        The producing asset is the Pande-Temane Petroleum Production Agreement (PPA) licence (302,2 thousand developed net acres). Our subsidiary, Sasol Petroleum Temane Limitada (SPT), the operator, holds a 70% working interest in the PPA. The PPA expires in 2034, and carries two possible five-year extensions. There is no requirement to relinquish any acreage until the expiry of the PPA.

        The other asset is the Pande-Temane Production Sharing Agreement (PSA) licence. Our subsidiary, Sasol Petroleum Mozambique Limitada (SPM), the operator, holds a 100% interest in the asset with Empresa National de Hidrocarbonetos de Moçambique (ENH), the national oil company of Mozambique, entitled under the terms of the PSA to a calculated share in production. The asset includes two areas which are under development in accordance with a field development plan approved by the Mozambican authorities in January 2016. These areas are covered by development and production periods until 2041 for the oil development (125,9 thousand undeveloped net acres) and 2046 for the gas development (157,3 thousand undeveloped net acres). The remaining PSA area (159,6 thousand undeveloped net acres) is covered by a five-year commercial assessment period (CAP) ending in February 2018. The retention of the reservoirs in this area is contingent on a declaration of commerciality and government approval of an additional field development plan.

Exploration

        We also have interests in two exploration licences, one offshore and the other onshore, and two licences which are in the process of being negotiated.

        The offshore exploration licence comprises the shallow water parts of the Exploration and Production Concession Blocks 16 & 19. Our subsidiary, Sasol Petroleum Mozambique Exploration Limitada (SPMEL), the operator, will hold an 85% working interest (622,7 thousand undeveloped net acres) when the assignment of our partner's interest is approved by the authorities. ENH has a 15% interest that is carried until field development.

Petroleum operations in the licence were suspended in 2008 and will remain so until the Strategic Environmental Assessment (SEA), which was commissioned by the Mozambique government, is made public. We have retained our interest in the licence with a view to defining a future work programme when the outcome of the SEA is known.

        The onshore exploration licence is the Exploration and Production Concession Area A. Following the completion of a farm-down of 40% working interest to Petrogas E&P Moçambique BV in March 2016, our subsidiary SPMEL, the operator, now holds a 50% working interest (827,8 thousand undeveloped net acres). ENH has a 10% interest that is carried until field development. The Area A licence is in the second exploration period, which has been extended for one year until May 2017, and includes one commitment well.

        In October 2015, the authorities announced the results of the Fifth Mozambique Licencing Round in which our subsidiary, SPMEL, and our partners, were successful and were invited to commence negotiations for Exploration Production Concession Contracts for one onshore and one offshore licence. On completion of the negotiations, SPMEL will hold a 70% working interest in the onshore Area PT5-C as operator, and a 30% working interest in the offshore Area A5-A which will be operated by Eni Mozambico S.p.A

Activities

        See "Item 4.D—Drilling activities" for the number of net natural oil and gas wells completed in each of the last three years and the number of wells being drilled or temporarily suspended at 30 June 2016.

        In the Pande-Temane PPA asset, the first phase of the project contained in the approved PPA field development plan to lower the inlet pressure at the Central Processing Facilities (CPF) was completed in December 2015. This, as well as the second and third phases of the project and infill drilling, is necessary to maintain production as the field depletes.

        Following approval of the field development plan, the first well in the PSA Phase 1 Tranche 1 development was spudded in May 2016. The current drilling programme, which comprises 12 development wells, and one service well, representing the initial development of four oil and gas reservoirs, is expected to last for two years. The PSA field development plan also requires the capacity of the PPA CPF to be increased to 633 MMscf/day of gas and a Liquids Processing Facility (LPF) with a capacity of 15 000 bpd of oil and 20 000 tons per annum liquefied petroleum gas to be constructed adjacent to the CPF. The cost of the development plan is US$1,4 billion covering expansion of the CPF, construction of the LPF and flowlines; and the initial drilling programme. US$80 million has been spent to end 2016 comprising drilling costs, civil engineering works and detailed engineering.

        Evaluation and well planning activities have also been undertaken in the PSA CAP area.

        In the Area A, exploration licence well planning activities have been undertaken in order to drill the commitment exploration well before the end of the second exploration period.

Capitalised Exploratory Well Costs

        See "Item 4.D—Capitalised exploratory well costs" for information, in tabular format, about the continued capitalisation of exploratory well costs, at 30 June 2016.

        At 30 June 2016, there were no exploratory wells costs capitalised in the Pande-Temane PPA asset.

        In the Pande-Temane PSA asset, CAP area, exploratory well costs continue to be capitalised for a period greater than one year after the completion of drilling. These relate to the exploration drilling conducted and completed in 2008, and follow-up activities which continued to 2016. Capitalised exploratory well costs amounted to R41,6 million in 2016.

        During 2016, planning activities began for an exploratory well to be drilled in Area A in 2017. At 30 June 2016, there were no exploratory wells costs capitalised in Area A. Any such costs capitalised at the beginning of

the year have been met by the proceeds of the farm-down to Petrogas.

Facilities and Productive Wells

        See "Item 4.D "Oil and Gas production facilities and productive wells" for details, in tabular format, about the production capacity of our natural oil and gas production facilities and the number of productive natural oil and gas wells at 30 June 2016.

        Natural gas and condensate is produced from the Pande-Temane PPA asset, at the CPF on a site of approximately 400 000 square metres (m²), that is located some 700 kilometres (km) north of Maputo, the capital of Mozambique. Production from the Temane and Pande fields, which are managed as a single operational field is routed from production wells via in-field flowlines and pipelines to the CPF.

        The current design capacity of the CPF is 450MMscf/day sales gas together with small amounts of associated condensate. A minor de-bottlenecking project is underway to increase the capacity of the CPF to 491MMscf/day.

        At 30 June 2016, there were 24 PPA asset productive wells.

Delivery Commitments

        Gas produced from the Pande-Temane PPA asset, other than royalty gas that is provided to the Mozambican government, is supplied in accordance with long-term Gas Sales Agreements (GSAs). The gas produced in accordance with GSA1, signed on 27 December 2002 (25 years contract term), and GSA2, signed on 10 December 2008 (20 years contract term), is sold internally for use as part of the feedstock for our chemical and synthetic fuel operations in South Africa, with a base-case supply of 120 PJ/a (108,86 bscf/a) and 27 PJ/a (24,49 bscf/a) respectively. There are four GSA3 20-year contracts, that supply gas to the Mozambique market. These satisfy a licence condition that a portion of gas produced is utilised in-country. The contracts are with Matola Gas Company S.A from 1 July 2014 for 8 PJ/a (7,26 bscf/a), ENH-Kogas from 1 March 2013 for

6 PJ/a (5,44 bscf/a), Central Termica de Ressano Garcia S.A. from end-February 2015 for 11 PJ/a (9,98 bscf/a) and ENH-Kogas effective from 1 June 2015 for 2PJ/a (1,81 bscf/a).

        Following completion of the first phase of the project to reduce inlet pressure at the CPF, proved developed reserves from the PPA are sufficient to meet commitments for the near future. Steps are under way to ensure commitments can be met to the end of the contracts.

        PPA condensate is sold to Petróleos de Moçambique, S.A. (Petromoc), who then transports the condensate by truck, for export via the port of Beira.

Proved Reserves

        See supplementary Natural Oil and Gas information Table 4 "Proved Reserve quantity information" on page G-2 for details of proved developed and proved undeveloped reserves of natural oil and gas, in tabular format, for the last three years..

        Our Mozambique proved reserves are contained in the Pande-Temane PPA licence. These represent the net economic interest volumes that are attributable to Sasol after the deduction of production tax. The primary sales product for the PPA is natural gas, with minor amounts of associated liquid hydrocarbon.

Changes to proved reserves

        There was a reduction in proved gas reserves due to production of 114,4 billion cubic feet.

Changes to proved developed reserves

        Proved developed gas reserves increased by 351,3 billion cubic feet. This was due to conversion of undeveloped reserves to developed partially offset by production and a minor revision.

Proved undeveloped reserves converted to proved developed reserves

        The first phase of a project to lower the inlet pressure at the CPF was completed in

December 2015. This has resulted in the conversion of 516,7 billion cubic feet undeveloped gas reserves to developed reserves during 2016. The total cost of this project was US$98 million net to Sasol.

Changes to proved undeveloped reserves

        Proved undeveloped gas reserves decreased by 511,9 billion cubic feet. The reduction is largely due to the conversion of undeveloped reserves to developed.

Proved undeveloped reserves remaining undeveloped

        A significant volume of proved undeveloped gas reserves (presently estimated to be 472,4 billion cubic feet) has remained undeveloped in the Pande-Temane PPA asset for the last ten years. The total proved volume (developed plus undeveloped) represents gas that will be recovered as part of the approved field development plan and which is required to satisfy existing gas sales agreements. In order to optimise timing of capital expenditure required to convert undeveloped reserves to developed reserves, E&PI regularly studies production performance from the two fields and reviews its plan for installation of additional compression and wells. The initial infill wells are planned for 2018 and additional compression is planned within the next five years.

Production, Sales Prices and Production Costs

        See Natural Oil and Gas supplementary information Table 4 "Proved reserve quantity information" on page G-4 for details of natural oil and gas production, in tabular format, for the last three years.

        See "Item 4.D—Sales Prices and Production Costs" for details of average sales prices and production costs, provided in tabular format, of natural oil and gas.

Canada

Licence Terms

        See "Item 4.D—Developed and Undeveloped Acreage" for the total gross and net developed and undeveloped

acreage of our natural oil and gas assets by geographic area, in tabular format, at 30 June 2016.

        In Canada, our subsidiary Sasol Canada Exploration and Production Limited (SCEPL), holds a 50% working interest in the Farrell Creek and Cypress A asset located in British Columbia which is operated by Progress Energy Canada Ltd (PECL).

        As at 30 June 2016, following expiry of deep rights in three contract areas, Farrell Creek comprised 29 licences and leases and Cypress A comprised 25 licences and leases.

        The Farrell Creek and Cypress A asset covers an area of 17,3 thousand developed net acres and 39,0 thousand undeveloped net acres. Acreage retention and the conversion of licences (which carry no production rights) to leases (with production rights) is enabled by drilling commitments, the provincial government's prescribed lease selection and validation process and licence extension applications.

        The decision to retain acreage and convert licences to leases is dependent on the drilling results and ongoing study work. Production, drilling and other retention activities are included in the applicable work programmes so that licences and leases for the asset, due to expire before 30 December 2017 are retained (13,9 thousand net acres affected).

Activities

        See "Item 4.D—Drilling Activities" for the number of net natural oil and gas wells completed in each of the last three years and the number of wells being drilled or temporarily suspended at 30 June 2016.

        Development activities in the Farrell Creek and Cypress A asset continued and, in 2016;

        in Farrell Creek:

•

four wells were drilled but not completed;



•

four wells were drilled and completed; and



•

four previously-drilled wells were completed.

        in Cypress A:

•

eight wells were drilled but not completed;



•

seven wells were drilled and completed; and



•

three previously-drilled wells were completed.

        Additionally three wells were reinstated to production in Farrell Creek. At 30 June 2016, ten wells were awaiting completion according to the approved work programme (three in Farrell Creek and seven in Cypress A).

        In 2016, a project to connect the southern Cypress A wells to the Farrell Creek facilities by means of an inter-field gas pipeline and two water pipelines was completed. The pipelines became operational in October 2015 improving the Farrell Creek Gas Plant utilisation, lowering operating costs and transportation fees, and reducing dependency on third party transportation and the associated processing fees.

        At the end of 2016, SCEPL and PECL reached agreement and the funding commitments of the Progress and Sasol Montney Partnership (PSMP) were settled. In order to responsibly steward the Farrell Creek and Cypress A asset through the low gas price environment, the PSMP agreed to slow down the pace of appraisal and development and significantly reduce activities. An 18 month work programme and budget to December 2017 was approved in June 2016. With effect from 1 July 2016, SCEPL and PECL will contribute equally in the development and operation of the PSMP in accordance with their respective 50% partnership interests.

Capitalised Exploratory Well Costs

        At 30 June 2016, there are no exploratory well costs capitalised in the Farrell Creek and Cypress A asset.

Facilities and Productive Wells

        See "Item 4.D—Oil and Gas production facilities and productive wells" for details, in tabular format, about the production

capacity of our natural oil and gas production facilities and the number of productive natural oil and gas wells at 30 June 2016.

        Natural gas and liquids are produced from the Farrell Creek and Cypress A asset by means of production wells, flowlines, gathering lines and processing facilities. Gas from Farrell Creek and Cypress A southern wells is processed through facilities owned by SCEPL and PECL, covering a site of approximately 160 000 m². Gas from Cypress A northern wells is currently processed and sold through third party production facilities.

        At 30 June 2016, there were 169 productive wells with a further 10 planned to be completed in the first six months of 2017.

Delivery Commitments

        Our gas from the Farrell Creek and Cypress A asset is sold into the Western Canada market, under a long-term agreement with PECL, effective until 2024. Pricing is based on the daily realised spot market prices less transportation and marketing fees. The small amount of petroleum liquids are sold under the same agreement.

        Production from Farrell Creek and Cypress A is currently not sufficient to fully utilise contracted gas transportation capacity. Low production in 2016 resulted in continued non-utilised transport charges in the Spectra and TransCanada/NOVA pipelines. PECL, as operator, partially mitigates exposure through placing of non-utilised gas transmission capacity in the gas transmission market.

Proved Reserves

        See Natural Oil and Gas supplementary information Table 4 "Proved Reserve quantity information" on page G-4 for details of proved developed and proved undeveloped reserves of natural oil and gas, in tabular format, for the last three years.

        Our Canada proved reserves are contained in the Farrell Creek and Cypress A fields, which are managed as a single operational field. These represent the net economic interest volumes that

are attributable to Sasol after the deduction of royalty. The primary sales product is natural gas, with minor amounts of associated liquid hydrocarbons.

        Full development of the fields will require around 2 900 wells, of which only some 6% have been drilled and completed to date. Reserves are limited to those volumes of gas and associated liquid hydrocarbons attributable to Sasol that are forecast to be produced from existing wells together with wells to be drilled and/or completed in the approved work programme.

Changes to proved reserves

        There was a reduction in proved gas reserves due to production of 20,7 billion cubic feet.

Changes to proved developed reserves

        Proved developed reserves increased by 4,2 billion cubic feet. The installation of the Cypress A to Farrell Creek pipelines (CAD32 million net to Sasol) and continued development drilling and completion resulted in proved developed reserves increasing by 12,4 billion cubic feet. Additional volumes were converted from undeveloped and there was a small positive revision. These increases were partly offset by production.

Proved undeveloped reserves converted to proved developed reserves

        Completion of seven wells during 2016 resulted in conversion of 8,2 billion cubic feet undeveloped gas reserves to developed reserves. The total cost of this conversion was CAD56 million net to Sasol.

Changes to proved undeveloped reserves

        As at 30 June 2016, undeveloped reserves (14,8 billion cubic feet) are associated with the completion of ten wells which have already been drilled. Although these completions are assessed to have a negative present value they generate a positive cash flow and are included in the approved work programme for completion in 2017.

Proved undeveloped reserves remaining undeveloped

        There were no undeveloped reserves remaining from 30 June 2015.

Production, Sales Prices and Production Costs

        See Natural Gas and Oil supplementary information Table 4 "Proved Reserve quantity information" on page G-4 for details of natural oil and gas production, in tabular format, for the last three years.

        See "Item 4.D—Sales prices and production costs" for details of average sales prices and production costs, provided in tabular format, of natural oil and gas.

Gabon

Licence Terms

        See "Item 4.D—Developed and undeveloped acreage" for the total gross and net developed and undeveloped acreage of our natural oil and gas assets by geographic area, in tabular format, at 30 June 2016.

        In Gabon, we hold a 27,75% working interest in the Etame Marin Permit (EMP) areas covered by Exclusive Exploitation Authorisations (EEAs) under the terms of the EMP Exploration and Production Sharing Contract. The licence is operated by VAALCO Gabon (Etame) Inc.

        The exploitation areas of the Etame Marine asset are covered by three 10-year EEAs, each with two five-year renewal periods available on request and subject to government decree. The Etame EEA was in the first five-year renewal period, which expired in July 2016. An application for the second five-year renewal period was submitted in April 2016. The Avouma EEA is currently in the first five-year renewal period to March 2020. The initial ten-year period of the Ebouri EEA expired in June 2016 and an application for the first five-year renewal period was submitted in March 2016. The current production plan assumes the renewals will be granted as required on a similar basis as in the past.

•

Etame EEA: 3 387 developed net acres, 2001-2016 + one five-year extension (to July 2021)



•

Avouma EEA: 3 566 developed net acres, 2005-2020 + one five-year extension (to March 2025)



•

Ebouri EEA: 1 022 developed net acres, 2006-2016 + two five-year extensions (to June 2026)

Activities

        See Item 4.D "Drilling Activities" for the number of net natural oil and gas wells completed in each of the last three years and the number of wells being drilled or temporarily suspended at 30 June 2016.

        The Etame Expansion Project (EEP) and South East Etame & North Tchibala (SEENT) project was completed in 2016 with the drilling, completion and start-up of the final three SEENT wells.

        Conceptual studies are being undertaken looking at future development opportunities, including options for crude-sweetening.

        The operator's response to the findings of the industry-wide audit performed on behalf of the Gabon government and issued in October 2014 is still being discussed with the government. Final notification from the government on the audit settlement is therefore pending.

Capitalised Exploratory Well Costs

        At 30 June 2016, there were no exploratory well costs capitalised in the EMP asset.

Facilities and Productive Wells

        See "Item 4.D—Oil and Gas production facilities and productive wells" for details, in tabular format, about the production capacity of our natural oil and gas production facilities and the number of productive natural oil and gas wells at 30 June 2016.

        Oil is produced from the EMP asset facilities, located some 35 km offshore southern Gabon which consist of four wellhead platforms, subsea flowlines and a floating production,

storage and off-loading vessel (FPSO). Oil, from Etame, Avouma and Ebouri, which are managed as a single operational field, is produced by means of a combination of subsea and platform wells, which are routed by pipelines to the FPSO contracted from, and operated by Tinworth Pte. Limited. The processed oil is stored in tanks on the FPSO prior to export by shipping tanker.

        At 30 June 2016, there were 10 productive wells across the three fields.

Delivery Commitments

        Oil produced from the EMP asset is marketed internationally on the open market. The oil is sold under a short-term Crude Oil Sale and Purchase Agreement (COSPA) which is renewed periodically. The current COSPA, with Glencore as buyer, expires on 31 January 2017. The COSPA is expected to be further renewed or re-contracted as required on terms not dissimilar to the current contract.

Proved Reserves

        See Natural Oil and Gas supplementary information Table 4 "Proved Reserve quantity information" on page G-4 for details of proved developed and proved undeveloped reserves of natural oil and gas, in tabular format, for the last three years.

        Our Gabon proved reserves are contained in the EMP licence. These represent the net economic interest volumes attributable to Sasol after application of the licence terms. The primary sales product is natural crude oil, all gas produced is consumed in operations or flared.

Changes to proved reserves

        There was a reduction in proved oil reserves due to production of 1,5 million barrels.

Changes to proved developed reserves

        Proved developed reserves decreased by 0,3 million barrels. Drilling and completion of three SEENT wells during 2016 resulted in proved developed reserves increasing by 1,1 million barrels (at a cost of US$ 86,8 million net to Sasol), which was partly offset by production and a minor revision.

Proved undeveloped reserves converted to proved developed reserves

        No reserves were converted from undeveloped to developed during 2016.

Changes to proved undeveloped reserves

        There were no proved, undeveloped reserves at the beginning or end of 2016.

Proved undeveloped reserves remaining undeveloped

        There were no reserves remaining undeveloped as at 30 June 2016.

Production, Sales Prices and Production Costs

        See Natural Oil and Gas supplementary information Table 4 "Proved Reserve quantity information" on page G-4 for details of natural oil and gas production, in tabular format, for the last three years.

        See "Item 4.D—Sales Prices and Production Costs" for details of average sales prices and production costs, provided in tabular format, of natural oil and gas.

Other Areas

Licence terms

        See "Item 4.D—Developed and undeveloped acreage" for the total gross and net developed and undeveloped acreage of our natural oil and gas assets by geographic area, in tabular format, at 30 June 2016.

Australia

        In Australia, we have interests in one offshore exploration licence and three onshore exploration licences.

        Offshore in the Northwest Shelf of Australia, our subsidiary Sasol Petroleum Australia Limited (SPAL) holds a 30% working interest in the AC/P 52 licence (160,9 thousand undeveloped net acres). The licence permit Year 6 has been suspended for a period of 24 months, until May 2017. The AC/P 52 licence holders will

not drill the commitment well during the suspension period.

        Onshore in the Beetaloo Basin of Australia's Northern Territory, our subsidiary SPAL holds a 35% working interest in the EP76, EP98 and EP117 licences (1 583,6 thousand undeveloped net acres). The licences are operated by Origin Energy Resources Limited. Our farm-in to these licences was concluded in August 2014 and in return we pay 50% of the stage one work programme costs, carrying Falcon Oil & Gas Limited. The remaining commitments in the stage one work programme include two vertical wells.

Nigeria

        Our subsidiary, Sasol Exploration and Production Nigeria Limited (SEPNL), gave notice of our intention to withdraw from the OML 145 licence in Nigeria in May 2015. Once government approval is obtained, the relinquishment of our 5% working interest (16,9 thousand undeveloped net acres) will be completed.

South Africa

        In South Africa, we have interests in one exploration licence and one licence which is in the process of being negotiated.

        Our subsidiary Sasol Africa (Pty) Ltd holds a 60% working interest in the ER236 licence (12 174,9 thousand undeveloped net acres), offshore in the Durban Basin. The licence is operated by Eni South Africa BV. The initial three-year exploration period runs to November 2016 and the commitment work programme, which included the acquisition of 5 950km of 2D reconnaissance seismic data has been fulfilled. It is envisaged that we will enter the first licence extension period which runs from November 2016 to November 2018. Relinquishment of 20% of the licence area will be required.

        In July 2015, our subsidiary Sasol Africa (Pty) Ltd and PetroSA were invited to commence negotiations for an Exploration Right over the 3A/4A area located offshore in the

Orange Basin which was previously covered by a technical co-operation permit. On completion of the negotiations, Sasol Africa (Pty) Ltd and PetroSA, the operator, will each hold a 50% working interest (2 645,1 thousand undeveloped net acres).

Activities

        See "Item 4.D—Drilling Activities" for the number of net natural oil and gas wells completed in each of the last three years and the number of wells being drilled or temporarily suspended at 30 June 2016.

Australia

        In 2016, in the Beetaloo Basin, two vertical wells (Kalala S-1 and Amungee NW-1) and one horizontal well (Amungee NW-1H) were drilled in the EP98 licence as part of the stage one work programme. Operations to re-enter and re-set casing in Amungee NW-1H well commenced in June 2016, and a multi-stage fracture stimulation programme will be performed in August 2016 followed by a 90-day production test. The campaign to drill the remaining two vertical wells in the stage one work programme, in the EP117 licence, started in July 2016.

South Africa

        The acquisition of a 3D seismic survey over the ER236 licence commenced in February 2016 and is expected to be completed in 2016.

Capitalised Exploratory Wells Costs

        See Item 4D "Capitalised Exploratory Well Costs" for information, in tabular format, about the continued capitalisation of exploratory well costs, at 30 June 2016.

Australia

        At 30 June 2016, there are no exploratory well costs capitalised in the Beetaloo Basin licences. As such, costs capitalised at the beginning of the year have been expensed.

Nigeria

        At 30 June 2016, there are no exploratory wells costs capitalised in the OML 145 licence.

South Africa

        At 30 June 2016, there were no exploratory wells costs capitalised in the ER236 licence.

Tabular Natural Oil and Gas Information

Developed and Undeveloped Acreage

        The table below provides total gross and net developed and undeveloped acreage for our natural oil and gas assets by geographic area at 30 June 2016.

Drilling Activities

        The table below provides the number of net wells completed in each of the last three years and the number of wells being drilled or temporarily suspended at 30 June 2016.