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Introduction The year commenced with the Group identifying exploration as the engine that will drive its growth. As a result, the Company invested heavily in the acquisition of cutting edge exploration equipment and the recruitment of highly experienced exploration personnel. The Group’s strategic objective in this regard was to redefine its resource in order to enable better mine planning, extend the lives of its mines and set a solid base for the Group’s sustained growth and expansion. Operationally, the incessant rains that were experienced in the first quarter affected mining operations nationwide including our own operations. These rains were also accompanied by frequent power outages and pit flooding and therefore created an environment that hampered mining activities. This was coupled with equipment challenges at the newly commissioned Cam & Motor plant in some critical sections of the new plant. As a result of these challenges, the Group incurred an operating loss in the first quarter. The Group’s performance however improved significantly in the second quarter and it was able to achieve an operating profit notwithstanding Empress Nickel Refinery (ENR) remaining under care and maintenance. However after taking into consideration ENR’s care and maintenance costs, the Group almost achieved a breakeven position and ended the period with a marginal operating loss of US$36thousand (H1 2016: US$2.3million profit). Overall, for the period ending 30 June 2017, the Group posted a profit before tax of US$2.9million (H1 2016: US$403thousand loss) after taking into account non-operational items. For the remainder of the year, the Group remains focused on achieving growth, generating positive cash flows and achieving positive returns.

Economic OverviewGlobal economic trends remained subdued with the gold price going up by a marginal 1.4% from an average price of US$ 1 221/oz in 2016 to US$ 1 238/oz in 2017. Gold prices also remained volatile as a result of global geopolitical uncertainties. Base metal prices on the other hand remained flat throughout the reporting period. Locally, mining operations have had to begin to adapt to the current shortages of foreign currency reserves being experienced by the country which have resulted in inflationary pressures from local suppliers. Furthermore, the mining sector is highly capital intensive and dependent on mainly imported equipment for purposes of its operations. Consequently, the challenges being faced with the current foreign currency shortages have the potential of slowing down the growth and productivity of the mining sector across the board if not closely monitored. We however take comfort in the fiscal macro-economic policies that continue to be implemented to address these challenges with the goal of ensuring the viability of the mining sector as whole.

Group Performance During the reporting period under review, the Group achieved a growth in revenue of 16% from US$32.6million in the comparative period to US$37.8million. This growth was achieved notwithstanding the challenges experienced in the first quarter of 2017. The acquisition of Dalny Mine which was concluded in the second quarter and the commissioning of Cam & Motor Mine contributed to this growth. I am also pleased to advise that during this period, Murowa Diamonds reverted to profitability and contributed a share of profit in the sum of US$583thousand, compared to the share of loss from associate of US$199thousand recorded in the comparative 2016 period. The Group also recorded a profit before tax of US$2.9million against a loss before tax of US$403thousand recorded in the same period last year.

Gold Business – Cumulatively, the Group’s gold production increased by 13% to 873kgs (H1 2016: 775kgs). Across the units, the first quarter was negatively affected by the adverse weather which was experienced during the turn of the rainy season and resulted in extreme flooding across all operations and frequent power outages. Below is a brief performance on a unit by unit basis:

Renco Mine: Renco Mine produced 316kgs of gold during the reporting period, which was 15% short of the prior year’s production of 370kgs. However, I can advise that extensive work was commenced at the Mine including an accelerated exploration and development program. This program is aimed at reversing the effects of a deteriorating grade which has continued to affect the Mine’s performance. Once this exercise is concluded, it is expected that a more accurate definition of ore body and ore grades will be achieved which will enhance the Mine’s productivity.

Cam & Motor Mine: The Mine produced 361kgs during the period under review. The Mine was subject to

various equipment failures, principally in the crushing and milling sections of the plant, resulting in significant loss of plant running time. Interventions in this regard have largely been successful and significant improvement has been noted in the period commencing the second half of the year. Furthermore, civil works for the installation of a flotation section at the plant have commenced. The flotation section will improve production as it will significantly enhance the recovery of gold from sulphide ores which form part of the mineralogy of the Mine at depth. I am also pleased to note that thus far, Cam & Motor Mine has created over 400 new jobs in the Eiffel Flats Community.

Dalny Mine: The acquisition was successfully concluded in the second quarter and was in line with the Group’s vision to acquire strategic gold mines at favourable terms. In this regard, the transaction resulted in a gain at acquisition of US$5.1million. The Mine produced 196kgs during the period under review. Our primary focus for the latter half of the year will be to develop and access high grade ore for processing and to expand the Mine’s plant processing capacity. In this regard, the accelerated exploration and development program is also being implemented at Dalny Mine with the objective of generating new ore reserves for processing. As a result of the revival of the mining operations at Dalny Mine, the Group was also able to restore a number of jobs in the local community which had been lost as a result of the Mine’s previous care and maintenance status. Furthermore, the resumption of operations at Dalny Mine has seen an increase in the economic activity in the Chakari area.

Rio Base Metals – Empress Nickel Refinery remained under care and maintenance due to the unavailability of matte. The Refinery however carried out a number of income generating projects in order to preserve its integrity, as well as to offset some of its care and maintenance costs. In this regard, 33tonnes of PGMs were produced and sold, thus generating revenue of US$4.2million which was sufficient to partially cover the care and maintenance costs. The business remains a strategic resource for the Group and the country at large as it has the potential of generating significant amounts of foreign currency once its operations resume.

RioDiamonds – Similar to the RioGold operations, Murowa Diamonds (Private) Limited, the Group’s associate, was also negatively affected by the heavy rains experienced in the first quarter of 2017. The rains resulted in the Mine suspending ore mining at the bottom of the pit due to flooding and unfavourable ground conditions. Notwithstanding the adverse weather challenges, I am pleased to note that the various initiatives introduced at the Mine in 2016 such as the development of a new mining plan, the migration of operations to owner mining and the plant expansion exercise yielded positive results for the Group. In this regard, a share of associate profit to the Group in the sum of US$583thousand was realised. This can be compared with the loss of US$199thousand recorded in the prior year’s comparative period.

RioChrome – Following the Government of Zimbabwe’s decision to uplift the ban on the export of chrome, the Group is in the preliminary stages of various projects which will result in the profitable utilisation of its chrome assets. The Board remains hopeful that chrome operations will resume in the near future.

RioEnergy – The Group has updated feasibility studies for both divisions of the project, namely the mining of coal and the power generation project. The Group has had meaningful discussions with potential investors and stakeholders will be kept informed of any developments in this project. We are also looking at Solar Energy and feasibility studies have commenced in this regard.

OutlookThe Group continues to be guided by its vision of establishing itself as a leading mining company that is guided by three strategic areas, namely growth, positive returns and positive cash flows.

Going forward therefore, the focus of the Group shall be on intensifying investment in further exploration and development in order to increase production, create more reserves and achieve sustainable profitability. Renco Mine is already seeing the benefits of the development programme as is depicted by a marked improvement in the grades being experienced post half year. The Group is expected to complete installation of a flotation section at Cam & Motor Mine aimed at enhancing recovery of gold from sulphide ores. Cam & Motor Mine will also pursue other metallurgical processes to recover gold from waste material. The focus for Dalny Mine will be on improving ore supply and undertaking a plant expansion exercise.

The Group’s efforts will also be channelled to achieving cost containment across all operations in line with the goal of generating positive cash flows.

Sustainability The Group remains committed to building and maintaining sustainable development to ensure socio-economic benefits are afforded to the communities in which the Group operates in. These efforts are adopted throughout all our operations and channelled through the RioZim Foundation. The theme of sustainability is evident in everything that the Group does. We believe that the value created from our operations should be shared equitably with all our stakeholders, including our employees and communities. As such the Group cares for the people it employs and the communities that host our operations.

In the midst of economic challenges, the priorities for community development in 2017 are food security, education and infrastructure development. A number of community projects were carried out in the first half of the year which included the provision of community subsistence, road rehabilitation, agricultural projects and education assistance.

In the last half of 2017 we will continue to work in partnership with all our stakeholders to maintain a sustainably profitable business that protects our environment and promotes economic development in all our host communities.

AppreciationI would like to express my gratitude to all the directors, management and employees of RioZim for their commitment, sacrifices and contributions to the development and growth of the Company. With your support, I am confident that we will be successful in overcoming the challenges ahead of us.

Last but definitely not least, I would also like express my sincere gratitude to our shareholders, the financial community and all other stakeholders for their unwavering confidence and support of the Group.

LP ChihotaChairman30 August 2017

CHAIRMAN’S STATEMENT

30 June 2017 30 June 2016 Note Reviewed Reviewed US$000 US$000 Revenue 37 761 32 567 Cost of sales ( 29 309 ) ( 19 593 )Gross profit 8 452 12 974 Distribution and selling expenses ( 22 ) ( 72 )Administrative expenses ( 10 347 ) ( 11 198 )Other income 1 881 627 Operating (loss)/ profit ( 36 ) 2 331 Net finance cost (2 768 ) ( 2 535 )Finance revenue - 37 Finance cost (2 768 ) ( 2 572 )Share of profit/ (loss) from an associate 583 ( 199 )Profit on acquisition of a subsidiary 4 5 131 -Profit / (loss) before taxation 2 910 ( 403 )Income tax expense ( 1 ) - Profit / (loss) for the year 2 909 ( 403 ) Other comprehensive income - - Total comprehensive profit / (loss) for the period 2 909 ( 403 ) Total comprehensive profit / (loss) attributable to: Equity holders of the parent 2 928 ( 288 )Non-controlling interests ( 19) ( 115 ) 2 909 ( 403 ) Earnings / (loss) per share (cents) Basic 2.40 (0.24 ) Diluted 2.40 (0.24 )

30 June 2017 31 Dec 2016 Note Reviewed Audited US$000 US$000 ASSETS Non current assets Property, plant and equipment 63 070 48 136 Exploration and development assets 15 413 14 965 Investment in associate companies 3 942 3 360 Available for sale investments 202 202 Long term receivables 8 686 Deferred tax assets 6 475 6 644 Total non-current assets 89 110 73 993 Current assets Inventories 7 41 819 43 701 Trade and other receivables 10 019 4 942 Cash and cash equivalents 1 850 1 134 Total current assets 53 688 49 777 Total assets 142 798 123 770 EQUITY & LIABILITIES Shareholders’ equity Share capital 1 345 1 345 Share premium 20 789 20 789 Available for sale reserve 142 142 Accumulated losses ( 14 663) ( 17 591)Equity attributable to equity holders of the parent 7 613 4 685 Non-controlling interest ( 690) ( 671)Total equity 6 923 4 014 Non-current liabilities Cumulative redeemable preference shares 9 33 434 33 434 Interest bearing loans and borrowings 10 4 064 3 333 Fixed term payables 11 7 793 - Provisions 4 400 1 173 Employee benefit liability 1 272 1 272 Total non-current liabilities 50 963 39 212 Current liabilities Trade and other payables 8 68 611 61 834 Fixed term payable 11 2 858 6 603 Interest-bearing loans and borrowings 10 13 443 12 107 Total current liabilities 84 912 80 544 Total liabilities 135 875 119 756 Total equity and liabilities 142 798 123 770

30 June 2017 30 June 2016 Reviewed Reviewed US$000 US$000 Net cash flows generated from operating activities 4 680 5 252 Cashflows from investing activities Acquisition of property, plant and equipment ( 1 920 ) ( 5 655 )Investment in exploration and evaluation assets ( 529 ) ( 15 )Acquisition of a subsidiary, net of cash acquired ( 1 675 ) - Proceeds from disposal of long term receivables 450 385 Interest received from investing activities - 37 Net cash used in investing activities ( 3 674 ) ( 5 248 )Cash flows from financing activities Inflows from borrowings 4 314 1 900 Repayment of borrowings ( 2 771 ) ( 4 078 )

Interest paid ( 1 833 ) ( 320 )Net cash used in financing activities ( 290 ) ( 2 498) Net increase/(decrease) in cash and cash equivalents for the period 716 ( 2 494 ) Cash and cash equivalents at beginning of the period 1 134 5 852 Cash and cash equivalents at end of the period 1 850 3 358

INTERIM CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME for the six months ended 30 June 2017

INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION as at 30 June 2017

INTERIM CONDENSED CONSOLIDATED STATEMENTOF CASH FLOWSfor the six months ended 30 June 2017

Directors: L P Chihota (Chairman), B Nkomo (Chief Executive Officer)*, S R Beebeejaun, C Dengu, K Matsheza, M T Sachak, I M Sharma Executive*

YEARSYEARS

R I O Z I M L I M I T E D

ABRIDGED REVIEWED GROUP RESULTS

F O R T H E H A L F Y E A R E N D E D 3 0 J U N E 2 0 1 7

1. Basis of preparation The interim condensed consolidated financial statements for the six months ended 30 June 2017 have

been prepared in accordance with IAS 34 Interim Financial Reporting. The financial statements are based on records that are maintained under the historical cost convention as modified by the measurement of available for sale financial assets at fair value.

The interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the Group’s audited annual financial statements for the year ended 31 December 2016.

2. Estimates When preparing the interim condensed consolidated financial statements, management undertakes

a number of judgments, estimates and assumptions about recognition and measurement of assets, results, liabilities, income and expenses. The actual results may differ from the judgments, estimates and assumptions made by management, and will seldom equal the estimated results. The judgments, estimates and assumptions applied in the interim condensed consolidated financial statements, including the key sources of estimating uncertainties were the same as those applied in the Group’s annual financial statements for the year ended 31 December 2016.

3. Significant accounting policies The accounting policies adopted in the preparation of the interim condensed consolidated financial

statements are consistent with those followed in the preparation of the Group’s annual consolidated financial statements for the year ended 31 December 2016.

4 Acquisition of Palatial Gold Investments (Private) Limited On 1 June 2017, the Group through its wholly owned subsidiary, RioGold (Private) Limited (‘RioGold’)

acquired 100% of the voting shares of Palatial Gold Investments (Private) Limited (‘Palatial Gold’) an unlisted company with operatins in the Chakari mining area, in the province of Mashonaland West, Zimbabwe . Palatial Gold owns the Dalny Mine Complex a mining operation comprising of a gold processing plant equipment, mining claims, mining infrastructure and mine compound. The Group has acquired Palatial Gold because it has attractive and vast explorative resources which it believes can be exploited and mined profitably. The transaction has been accounted for using the acquisition method and has resulted in a gain on bargain purchase of US$5.1million.

The business combination has been accounted for using provisional amounts for certain balances which

will be assessed and appropriately adjusted within the measurement period of 12 months as prescribed by the International Financial Reporting Standards 3: Business Combinations.

The interim condensed consolidated financial statements include the results of Palatial Gold for the one

month period from the acquisition date.

30 June 2017 31 Dec 2016 Reviewed Audited US$000 US$000

5 Number of shares in issue (‘000) 122 030 122 030 6 Capital expendinture Acquisition of property,plant and equipment to maintain capacity 782 3 645 to increase capacity 17 009 14 653 Included in assets additions is US$15 342 000 that was acquired through business combination, see Note 4.

Commitment for capital expendinture contracts and orders placed 2 182 1 161 authorised by Directors but not contracted 19 303 23 345 21 485 24 506 The capital expenditure is to be financed out of the Group’s own resources and borrowings where necessary. 7 Inventories Stores and consumables 6 862 8 127 Metals and minerals in concentrates and circuit 34 923 33 585 Finished metals 34 1 989 41 819 43 701 8 Trade and other payables Trade payables 51 191 46 650 Accruals 2 430 2 702 Statutory liabilities 7 037 2 604 Leave pay liabilities 2 641 5 214 Other payables 5 312 4 664 68 611 61 834 9 Cumulative redeemable preference shares Cumulative Redeemable Preference Shares 33 434 33 434 The cumulative redeemable preference shares were issued to Zimbabwe Asset Management Corporation (Private) Limited (ZAMCO) on 22 January 2016. The preferences shares are unsecured, non-voting and non-tradable, entitle the holder thereof to receive

a fixed dividend of 9% per annum which dividend shall be payable on a bi-annual basis and are redeemable by the Company in part or in whole, at cost, on or before the fifth anniversary of the issue date or not more than 180 days from the fifth anniversary of the issue date.

The cumulative redeemable preference shares are carried at amortised cost. 10 Interest bearing loans and borrowings

Effective Maturity 30 June 31 December interest rate Date 2017 2016 $’000 $’000

Current Bank loans (facility limit US$7.0m ( 2016: US$4.5m) 9.5% On scheduled dates 3 603 1 990 Other bank loans 15.0% On demand 5 367 4 996 Term loans (facility limit US$1.0m ( 2016: US$2.0m ) 12.0% On demand 940 1 383 Debentures (facility limit US$1.9m ( 2016: US$1.9m) 13.0% March 2017 578 1 440 Interest on cumulative redeemable preference shares July 2017 1 424 1 423 Long term loan (Centametal AG) 12.5% December 2019 1 531 875 13 443 12 107 Non current Bank loans 9.5% On scheduled dates 2 430 1 219 Long term loan (Centametal AG) 12.50% December 2019 1 634 2 114 4 064 3 333

11. Fixed term payables The Group restructured a portion of its current fixed term payables amounting to $7.8million to a longer

tenure of 3 years at an interest of 9% per annum. 12. Dividends No dividends were declared or paid out in the first half of 2017.

13. Events after reporting period There were no events after the reporting period that were material to require separate disclosure in these

interim condensed consolidated financial statements.

14. Going concern As at the reporting date the Group’s current liabilities exceeded current assets by US$31.2million

(December 2016: US$30.8million) and the Group’s statement of financial position showed adverse solvency ratios of 0.63:1 (December 2016: 0.62:1) and 0.14:1 (December 2016 0.08:1) for current and acid test ratios respectively. These factors indicate the existence of a material uncertainty on the Group’s ability to continue as a going concern and that it may be unable to realize its assets and discharge its liabilities in the normal course of business.

The following matters which support the appropriateness of the going concern assumption in the

preparation of the financial statements of the Group have been considered by the Directors: •TheGroupcontinuestogeneratenetearnings,asrepresentedbyEBITDAwithUS$2.2millionbeing

generated in the first half of the year 2017. •Managementexpecttheearningsto improvefollowingthestabilisationoftheCam&Motorplant,

Group wide extensive exploration and fruition of various projects which are being undertaken at Empress Nickel Refinery.

•Acquisitionofanewcashgeneratingasset,DalnyMinebyRioGold(Private)Limitedwhichisexpectedto contribute in the improvement of the Group’s cashflows.

•13%increaseingoldproductionvolumesto873kgsfrom775kgsinthefirsthalfof2016. •Variousinitiativestorestructuresomeofthecurrentliabilities. •AlignmentofnewdebtstructuretotheGroup’scashflowcycle.

The Directors therefore believe that the Group will continue to operate as a going concern and preparation of the financial statements on a going concern basis is still appropriate. This basis assumes that the realization of assets and settlement of liabilities will occur in the ordinary course of business.

Auditor’s review and conclusionThe Group’s external auditors, Ernst & Young, have issued an unmodified review conclusion on the interim condensed consolidated financial statements of the Group for the half year ended 30 June 2017. The review conclusion included an emphasis of matter paragraph drawing attention to the going concern uncertainties as disclosed in note 14 above. The review conclusion is available for inspection at the company’s registered office.

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTSfor the six months ended 30 June 2017

ATTRIBUTABLE TO EQUITY HOLDERS’ OF THE PARENT

Available Total Non-

Share Share for Sale Accumulated Shareholders Controlling Total

Capital Premium Reserve losses Equity Interest Equity

US$000 US$000 US$000 US$000 US$000 US$000 US$000

As at 1 January 2016 1 345 20 789 145 ( 19 955) 2 324 ( 626) 1 698

Profit /(loss) for the year - - - 2 594 2 594 ( 45) 2 549

Other comprehensive loss (net of tax) - - ( 3) ( 230) ( 233) - ( 233)

As as 31 December 2016 (audited) 1 345 20 789 142 ( 17 591) 4 685 ( 671) 4 014

Profit /(loss) for the period - - - 2 928 2 928 ( 19) 2 909

As at 30 June 2017 (reviewed) 1 345 20 789 142 ( 14 663) 7 613 ( 690) 6 923

INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITYfor the six months ended 30 June 2017