DRDGOLD LTD

In conducting our business, we face many risks that may interfere with our business objectives. Some of these risks relate to our

operational processes, while others relate to our business environment. It is important to understand the nature of these risks and

the impact they may have on our business, financial condition and operating results. Some of these risks are summarized below

and have been organized into the following categories:

•Risks related to our business and operations;

•Risks related to the gold mining industry;

•Risks related to doing business in South Africa;

•Risks related to Environmental, Social and Governance (“ESG”) performance including climate change;

•Risks related to government regulation as well as other legal and regulatory requirements; and

•Risks related to ownership in our ordinary shares or American Depositary Shares (“ADSs”).

Risks related to our business and operations

Regulatory and construction delays in commissioning replacement tailings storage facilities as existing facilities approach

capacity could result in reduced or suspended deposition and adversely affect our production and results of operations.

Our primary Tailings Storage Facilities (“TSFs”) are subject to a Dam Safety Evaluation (“DSE”) every five years, conducted by an

independent Approved Professional Person (“APP”). Following each evaluation, the APP is required to submit its findings and

recommendations to the regulator, the Department of Water and Sanitation (“DWS”). Such recommendations may include

adjustments to deposition rates, or other operational or structural measures that could result in changes, limitations or restrictions

on the use of the TSF, which may in turn adversely affect our throughput rate and production.

Each operation monitors the geo-technical integrity of its TSFs carefully in accordance with a prescribed set of parameters.

A deterioration in any of these parameters may result in a reduction in or suspension of throughput, which may in turn affect

production.

At the Ergo operation, the Brakpan TSF is a mature facility and is approaching its final phase as a mega-volume tailings storage

facility. To support the long-term sustainability of deposition capacity, Ergo is advancing regulatory applications associated with

the potential recommissioning of the adjacent Withok TSF, which, if approved and successfully commissioned, could provide

approximately 310 million tonnes of additional deposition capacity. The public participation process has been completed and the

project is currently progressing through the required regulatory approval processes, including environmental authorisation, a waste

management licence and a water use licence. Subject to the receipt of all required approvals and successful construction,

commissioning is currently targeted for the end of calendar year 2029. Delays in obtaining approvals, changes to regulatory

requirements or construction challenges could affect the timing of commissioning and adversely impact future deposition capacity,

throughput and production.

The regulatory process to recommission the Withok TSF is complex, though, and the regulator may not approve all aspects of the

envisaged design. The footprint and location of the facility make construction challenging, which may result in missed target dates

and failure to achieve planned throughput rates. While the commissioning of the Daggafontein deposition facility is expected to

reduce deposition volumes to the Brakpan TSF and assist in managing available deposition capacity in the medium term,

Daggafontein alone is not expected to provide a long-term solution to Ergo's deposition requirements. Consequently, regulatory

and construction delays in commissioning replacement tailings storage facilities, including Withok, as existing facilities approach

capacity, could result in reduced deposition flexibility, constrained throughput and, ultimately, adversely affect production and

results of operations.

At the FWGR operation, key projects to increase deposition capacity include the development of the RTSF as part of the Phase 2

FWGR project and is intended to provide replacement deposition capacity required to support the continued operation and

expansion of FWGR. Timely commissioning of the new facilities is critical, as any delay may result in reduced deposition rates or a

suspension of deposition which, in the absence of interim alternative deposition facilities, would have an adverse financial impact

on the business.

DRDGOLD Limited Form 20-F 2026

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Our large projects are subject to scheduling delays and cost overruns, and we may face constraints in financing our current

operations or any future projects, which could render our projects unviable or less profitable than planned.

Our large projects, most notably the development of FWGR Phase 2, which includes the construction of the RTSF, the Driefontein

Plant 2 (“DP2”) plant upgrade and construction of pipelines linking DP2 and RTSF, to expand our operations to the western side of

Johannesburg. Projects related to Ergo include the pipeline linking Ergo Plant to the Daggafontein TSF to resume deposition on the

Daggafontein TSF and the recommissioning of Withok TSF to enable mining on the west of the Ergo plant. These projects are

subject to numerous risks and challenges such as strict quality standards and specifications, delays, cost overruns, regulatory

approvals and requirements, social and environmental risks as well as technical risks including, inter alia:

•unforeseen increases in the cost of equipment, labor and raw materials;

•delays or disruptions in the supply of equipment and raw materials;

•unforeseen design and engineering problems;

•unforeseen ground conditions/geotechnical risks requiring extensive test work and ground monitoring which may impact

timeliness and costs;

•changes in construction plans that may require new or amended planning permissions;

•delays in obtaining the necessary regulatory approvals;

•unforeseen construction problems;

•unforeseen delays commissioning sections of the project;

•inadequate phasing of activities;

•labor disputes and social challenges;

•security issues;

•health and safety risks;

•inadequate workforce planning or productivity of workforce;

•inadequate management practices;

•loss of, or inability to retain, key personnel whose experience and know-how are critical to project execution and operational

continuity;

•natural disasters and adverse weather conditions;

•poor contractor performance/failure or delay of third-party service providers; and

•changes to regulations, such as environmental regulations.

The development of our projects involve capital intensive processes carried out over long durations, which requires us to commit

significant capital expenditure and allocate considerable management resources in utilizing our existing experience and know-

how. For example, the DP2 plant expansion project involves the construction of the plant’s own elution circuit and smelt house, and

a doubling of current throughput capacity to 1.2 Mtpm. Completion is expected in the first quarter of FY2027. Initial feed to the

expanded plant will be from the Driefontein 3 tailings and eventually the Libanon tailings (commissioning planned from the last

quarter of FY2027), 600,000tpm from each, reaching a steady state of 1.2 million tonnes per month in FY2028.

Construction of the RTSF, done intwo phases, is progressing well; however, severe rainfall events during FY2025 and FY2026

affected construction activities and placed pressure on the planned beneficial occupation timeline. With an ultimate deposition

capacity of 800 Mt and designed to ultimately receive tailings at a deposition rate of up to 2.4 Mt per month, phase 1 of the RTSF is

expected to be completed during thesecond quarter of FY2027, with construction of the remaining sections continuing

concurrently with the commencement of deposition at an initial planned rate of 1.2 Mt per month.

A key consideration for beneficial occupation (which originally was planned for the first quarter of FY2027), remains the uncertainty

regarding the Department of Water and Sanitation's requirements and the timeline for obtaining the necessary approvals for early

deposition. Although the beneficial occupation date has been deferred to the last quarter of FY2027 due to the above and weather

dependency, which aligns with the commissioning of the Libanon Pump Station, any further delay in obtaining regulatory approvals

could defer the planned increase in throughput capacity. This may result in lower production and ultimately returns and over time

also may require reducing deposition throughput at Driefontein 4 TSF as it is set to reach capacity during the last quarter of

FY2027, subject to the outcomes of the annual performance review.

Management continues to closely monitor the critical path activities, regulatory requirements and construction progress to support

the timely delivery of the RTSF capacity.

At Ergo, the recommissioning of the Withok TSF remains subject to regulatory approvals, the process of which is currently

underway. Once recommissioned, Withok TSF is planned to have a design deposition capacity of approximately 310 million tonnes

with a life of about 20 years and an eventual deposition rate of 1.3 million tonnes per month. Delays in obtaining these

authorizations could delay the planned increase in tonnages at Ergo from 1.65 million tonnes per month to 1.8 million tonnes per

month and also result in lower production, and ultimately returns, as Brakpan TSF nears its end of life. Commissioning is expected

during FY2030.

We face the risk that the expected benefits of our projects, such as those described above, are not achieved, or that we fail to

account for potential challenges during the transition from construction to fully operational status, as well as the integration of

constructed works into existing processes and systems. In particular, the phase 2 FWGR project, resumption of deposition on the

Daggafontein TSF and recommissioning of the Withok TSF are material to us, and significant cost overruns or adverse changes in

assumptions affecting the viability of these projects could have a material adverse effect on our business, cash flows, financial

condition and prospects. Any such failure may negatively impact production output.

In addition, if the assumptions we make in assessing the viability of our projects, including those relating to commodity prices,

exchange rates, interest rates, inflation rates and discount rates, prove to be incorrect or need to be significantly revised, this may

adversely affect profitability or even the viability of our projects. The uncertainty and volatility in the gold market makes it more

difficult to accurately evaluate the project economics and increases the risk that the assumptions underlying our assessment of the

viability of the project may prove incorrect.

DRDGOLD Limited Form 20-F 2026

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Our operating cash flow, available banking facilities and ability to raise funds from banks or the capital markets 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 a result, new sources of capital may be needed to meet the funding requirements of

these projects and to fund ongoing business activities. Our ability to raise and service new sources of capital will depend on, inter

alia, macroeconomic conditions, cost of debt, our credit rating, our gearing and other risk metrics, financial market conditions,

future gold prices, the prospects for our industry, our operational performance and our operating cash flow and debt position. Any

inability to raise such funds may place a burden on our cash reserves and affect our ability to finance our key projects.

In the event of operating or financial challenges, any dislocation in financial markets or new funding limitations, our ability to pursue

new business opportunities, invest in existing and new projects, fund our ongoing business activities and pay dividends, could be

constrained, any of which could have a material adverse effect on our business, operating results, cash flows and financial

Supply shortages and price volatility for key operating materials could adversely affect production and increase operating

costs.

Global inflationary pressures, geopolitical volatility, and the increasing frequency and severity of natural disasters, including severe

weather, floods and earthquakes, present risks to the availability and cost of critical materials and equipment, and require ongoing

proactive management of key supplier dependencies. A sustained shortage or elevated cost of critical inputs, such as reagents,

fuel, electricity and natural gas, may require us to source alternative suppliers, implement operational workarounds or incur higher

procurement costs, potentially reducing production and increasing operating costs.

As tailings retreatment operations process high volumes of material, they require significant quantities of cyanide, creating a

dependency on a limited number of suppliers and presenting a concentration risk. During fiscal year 2026, Sasol, a key supplier of

sodium cyanide, declared force majeure following supply disruptions. However, DRDGOLD had proactively implemented

mitigation measures, including the commissioning of a briquette plant which solubilises cyanide briquettes to liquid cyanide, which

significantly reduced the potential operational impact of the disruption. While these initiatives enhanced supply resilience, any

prolonged interruption in cyanide availability, continued supplier capacity constraints, or the need to import material from

alternative sources could result in increased costs and, in severe cases, reduced production.

South Africa’s reliance on imported natural gas exposes the country to increasing gas-supply challenges over the next three years

underpinned by geopolitical developments, infrastructure constraints, supply-chain disruptions and increasing demand. Reduced

availability and higher gas prices may progressively increase operational and cost risk. This risk is further amplified by gas being a

key feedstock in the manufacture of sodium cyanide, adding to the risk of cyanide supply challenges as mentioned above.

Geopolitical factors also present material vulnerabilities to supply reliability and logistics, particularly with respect to access to oil.

In early 2026, conflict between the United States and Iran resulted in the closure of the Strait of Hormuz, a critical global oil transit

route, causing a significant spike in global energy prices that directly impacted our costs. Although conditions have subsequently

improved, geopolitical tensions in the region remain and there can be no assurance that further escalation, disruption to shipping

routes or constraints on global energy supply will not occur. Any such developments could cause further significant disruption to

global oil and energy markets and our operating costs.

Additionally, the Group’s ability to source certain machinery and products may be impacted by the imposition of protectionist trade

measures, including tariffs. From 2025, the United States imposed significant tariffs on a broad range of imported goods, including

a 30% tariff on South African exports, raising concerns regarding job losses, rising export costs, and slower economic growth in

South Africa. Although those tariffs have since been reduced following legal challenges in the United States, the tariff landscape

continues to evolve and remains highly uncertain. There can be no assurance that additional tariffs introduced by the United States

or other jurisdictions will not further disrupt global supply chains or increase the cost of equipment and materials used in our

operations.

Any unforeseen shortages or increases in supply costs could negatively impact our profitability and adversely affect our ability to

meet project deadlines, due to issues with the availability of supplies, elevated freight costs and above-inflationary increases for

capital equipment. Such disruptions could affect operations and production and could ultimately result in a failure to deliver on our

business plans.

Underperformance of solar and energy storage infrastructure could increase electricity costs and adversely affect operational

performance.

Our mining operations are currently dependent on electricity supplied by Eskom, South Africa’s state-owned utility company, which

has historically been unable to meet the energy requirements of the South African economy and has implemented a system of

power rationing or load shedding to prevent a complete collapse of the national electricity grid. See “—Power stoppages or

shortages or increases in the cost of power could negatively affect our results and financial condition”. To reduce its reliance on

Eskom and reduce its future costof electricity, Ergo has completed the construction and commissioning of the Solar Power Project

(“Solar Plant”), which comprises a 60 MW solar photovoltaic plant together with an associated 160 MWh battery energy storage

system (“BESS”), supplying power to Ergo’s operations and offsetting consumption across multiple Eskom accounts.

Although the Solar Plant and BESS have reduced Ergo's reliance on Eskom and contributed to lower Eskom electricity

consumption and costs since commissioning, there is a risk that these facilities will not operate as expected or that they will not

achieve their intended performance or efficiency levels as they have been designed to meet certain key performance indicator

targets. Any failure of the Solar Plant or BESS to deliver in accordance with such targets, whether due totechnical malfunctions,

adverse weather conditions, degradation of equipment or other operational factors, may expose Ergo to increased Eskom tariffs

and increase its reliance on Eskom's electricity. Any such increase in electricity costs could adversely affect Ergo’s cash position.

DRDGOLD Limited Form 20-F 2026

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Damage to tailings storage facilities and excessive maintenance and rehabilitation costs could result in lower production and

health, safety and environmental liabilities.

Our tailings storage facilities are exposed to numerous risks and events, the occurrence of which may result in the failure, breach

or damage of such a facility. These may include sabotage, piping or seepage failures, failure by our employees to adhere to the

codes of practice and natural disasters such as excessive rainfall and seismic events, any of which could force us to stop or limit

operations. The likelihood and severity of these risks are expected to increase as the effects of climate change intensify. In

addition, these tailings storage facilities could overflow or a side wall could collapse jeopardizing the health and safety of our

employees and communities living around these facilities and potentially resulting in extensive property and environmental

damage.

In the event of damage to, or any failure of, our tailings facilities, we could face legal proceedings (including criminal proceedings

and public civil actions) and investigations involving significant damage claims. These actions would likely result in substantial

costs and could require significant expenditure to support the recovery of affected regions, communities, people and

environmental remediation. The occurrence of any of these risks could adversely affect our operations and this in turn could have a

Changes in laws and regulations that impose more stringent standards, may also lead to increased capital expenditure to update

our tailings storage facilities, expand them in the future or continue to meet existing or more stringent legal (including permit)

requirements.

Due to the nature of our business, our operations face extensive health and safety risks and regulation of those risks.

Gold mining is exposed to numerous risks and events, the occurrence of which may result in the death of, or personal injury, to

employees or others. These risks and events include amongst other, severe weather exposures such as heat, rain, flooding, wind

and hail storms, ground or slope failures, sink holes, fires, seismic events, dust, silica and other airborne exposures, discharges of

toxic gases and other substances including exposure due to the storage and handling of chemical / reagent and other hazardous

material as well as radioactivity, exposures due to mobile and heavy mining equipment interactions, noise, vibration and other

occupational hygiene exposures, electrical and mechanical hazards and working at heights.

According to section 54 of the Mine, Health and Safety Act of 1996, if an inspector believes that any occurrence, practice or

condition at a mine endangers or may endanger the health or safety of any person at the mine, the inspector may give any

instruction necessary to protect the health or safety of persons at the mine. These instructions could include the suspension of

operations at the whole or part of the mine. Health and safety incidents could lead to mine operations being halted and that will

affect production and increase our unit production costs, which could have a material adverse effect on our business, operating

results and financial condition.

As with environmental incidents, the occurrence of health and safety risks result in increased regulator and stakeholder scrutiny.

Such scrutiny could increase compliance costs, and lead to enforcement actions or litigation by regulators, affected stakeholders

and others which may result in significant fines or liabilities. These risks could adversely affect our operations through revocation of

permits and approvals, the imposition of new conditions, and reputational impacts. The occurrence of such risks could have a

After five years of operating without a fatality, we very sadly lost a colleague at Ergo due to fatal injuries sustained on April 13, 2024

when a side-wall slip at the 5L27 dump impacted the loader he was operating. Subsequent to the fatality, the Group operated

fatality-free during FY2025 and FY2026, with several safety metrics improving across both reporting periods. The Group continues

to prioritize safety, has strengthened oversight and leadership at all operations, and continues with safety programs and

monitoring, although there can be no assurance that these measures will be sufficient to prevent further safety incidents.

The construction and execution of current large projects has also resulted in an increased number of contractors and construction

vehicles within existing operating areas. This has elevated the likelihood of safety-related incidents. Notwithstanding intensified

scrutiny to promote adherence by operational and project teams to safety protocols and procedures, a safety-related incident

could result in stoppage of operations or project works, which could adversely impact production.

Potable water scarcity and increased reliance on secondary water sources may adversely affect our operations and

increase costs.

Our operations require substantial volumes of water to transport material from reclamation sites to processing plants, for gold

recovery processes within the plants, transferring residual material to the TSF, and for rehabilitation and other activities. Water is

therefore a strategic resource that underpins DRDGOLD's ability to sustain production, optimize metallurgical recovery and

support future growth. South Africa is one of the world's most water-stressed countries, increasing pressure on national water

resources, driven by climate change, aging infrastructure, population growth and challenges in municipal water management

which continue to heighten the risk of securing reliable and affordable water supplies. During FY2025, there was an increase in

disruptions in water supply by Rand Water(South Africa's largest bulk water utility) to Gauteng residents. While, through our water

reticular process, we have progressively diversified our water sources to reduce dependence on potable water, our operations still

remain dependent on supplementing water requirements from alternative water sources, including treated acid mine drainage

(“AMD”), which requires ongoing treatment that comes at a cost. At our Far West operations, water supply is supplemented by

underground dewatering activities. Changes in future dewatering requirements, water availability and future growth may require

increased pumping capacity and associated energy costs, placing additional pressure on operating expenditure over the life of the

operation. The use of secondary water sources including non-potable or contaminated water may expose us to additional

regulatory, environmental, operational and health-related risks, and may require costly treatment and monitoring. In addition, the

DWS has indicated its intention to introduce a waste discharge charge system applicable to all waste-related activities with the

potential to impact water resources. In June 2024, the DWS published a revised Pricing Strategy for Raw Water Use Charges, with

a stated effective date of April 2026. The implementation timeline for this charge system has not yet been confirmed and remains

subject to review, with the DWS planning a phased implementation approach with full roll-out targeted by 2030. Once fully

implemented, the water discharge charge system may have significant cost implications for our operations.

DRDGOLD Limited Form 20-F 2026

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Although we continue to research and implement measures to optimize water use and recycling, including in relation to water

reticulation systems as well as the re-use of grey or treated water, there can be no assurance that these efforts will be sufficient to

secure the quality and quantity of water required for our operations. As part of life-of-mine planning, we continuously assess our water

requirements and are developing strategies to secure the appropriate quality and quantity of water over the short- to longer-term.

However, implementing these strategies may be onerous and could significantly increase our operational costs. Any inability to secure

a reliable and adequate water supply could disrupt production and adversely affect our business, operating results and financial

A disruption in our information technology systems, including incidents related to cybersecurity, could adversely affect our

business operations.

We rely on the accuracy, availability and security of our information technology systems. Despite the measures that we have

implemented, including those related to cybersecurity, our systems could be breached or damaged by computer viruses and

systems attacks, natural or man-made incidents, disasters or unauthorized physical or electronic access.

Any system failure, accident or security breach could result in business disruption, theft of our intellectual property, trade secrets

(including our proprietary technology), unauthorized access to, or disclosure of, personnel or supplier information, corruption of our

data or of our systems, reputational damage or litigation. We may also be required to incur significant cost to protect against or repair

the damage caused by these disruptions or security breaches in the future, including, for example, rebuilding internal systems,

implementing additional threat protection measures, defending against litigation, responding to regulatory inquiries or actions, paying

damages, or taking other remedial steps with respect to third parties. Refer to "Item 16K. Cybersecurity".

These threats are constantly evolving, including through the use of new technologies such as artificial intelligence and machine

learning by threat actors, thereby increasing the difficulty of successfully defending against them or implementing adequate

preventative measures and we remain subject to additional known or unknown threats. In some instances, we may be unaware of an

incident or its magnitude and effects. We may be susceptible to cyber-attacks, including phishing and ransomware attacks, in the

evolving landscape of cybersecurity threats. Cybersecurity attacks have recently become more prevalent in the mining industry,

which has increased the likelihood of DRDGOLD being targeted for cybersecurity attacks in the future. An extended failure of critical

system components, caused by accidental, or malicious actions, including those resulting from a cybersecurity attack, could result in

a significant environmental incident, compromise of employee safety, commercial loss or interruption to operations as well as loss or

misappropriation of confidential information, including personal data relating to our current or former employees. Such information

could also be made public in a manner that harms DRDGOLD’s reputation and financial results and, particularly in the case of

personal data, could lead to regulators imposing significant fines on DRDGOLD.

In addition, from time to time, we implement updates to our information technology systems and software, which can disrupt or shut

down our information technology systems. We may also adopt artificial intelligence and other emerging technologies into our

information technology systems or mining operations. Such tools may additionally be utilized by our contractors and third parties that

we conduct business with. The use of artificial intelligence may not meet the existing and rapidly evolving regulatory standards and

could introduce security risks that may expose confidential data, lead to the loss of competitive information and result in operational

failures. Although we seek to comply with applicable cybersecurity legislation and regulation, including the South African Cybercrimes

Act and the SEC’s final rules on cybersecurity risk management, strategy, governance, and incident disclosure, there can be no

guarantee that these efforts will be sufficient to meet evolving privacy, data protection and cybersecurity requirements. Information

technology system disruptions or security breaches, if not appropriately addressed or mitigated, could have a material adverse effect

on our operations.

Any interruption in gold production at either of our two mining operations generating cash flows could adversely affect our

business operations.

We have two mining operations generating cash flows, namely Ergo and FWGR. Ergo’s reclamation sites, processing plants, pump

stations and the Brakpan TSF are linked through pipeline infrastructure. The Ergo plant is currently our major processing plant.

FWGR’s reclamation sites, DP2 processing plant, pump stations and the Driefontein 4 Tailings Storage Facility are linked through

pipeline infrastructure.

Our reclamation sites, plants, pipeline infrastructure and the tailings storage facilities are exposed to numerous risks, including

operational down time due to planned or unplanned maintenance and possible load shedding or power dips, adverse weather,

destruction of infrastructure, spillages, higher than expected operating costs, or lower than expected production as a result of

decreases in extraction efficiencies due to imbalances in the metallurgical process as well as inconsistent volume throughput or other

factors. For additional information, see “—Supply shortages and price volatility for key operating materials could adversely affect

production and increase operating costs,” “—Power stoppages or shortages or increases in the cost of power could negatively affect

our results and financial condition,” and“—Damage to tailings storage facilities and excessive maintenance and rehabilitation costs

could result in lower production and health, safety and environmental liabilities.”

FWGR's operations are reliant on access to and use of Sibanye Stillwater Limited’s (“Sibanye-Stillwater”) mining infrastructure,

property and related services, including water and electricity supply. FWGR also relies on various rights, permits and licenses held by

Sibanye Gold Proprietary Limited, a wholly owned subsidiary of Sibanye-Stillwater, pursuant to which FWGR operates, pending the

transfer to FWGR of such rights, permits and licenses that are transferable. Any disruption in the supply of, or our ability to use and

access Sibanye-Stillwater's mining infrastructure, property, related services, rights, permits and licenses, could have an adverse

impact on our operations.

Any of the risks above or other interruptions could adversely impact our operations which could have a material adverse effect on our

DRDGOLD Limited Form 20-F 2026

11

Changes in the market price for gold and exchange rate fluctuations, both of which have fluctuated widely in the past, affect

the profitability of our operations and the cash flows generated by those operations.

Gold produced is sold at a Dollar gold price and spot exchange rate specified in a contract with the South African bullion banks to

deliver the gold at a specified settlement date. As we are an unhedged gold producer, our results are fully exposed to fluctuations in

the Dollar gold price and spot exchange rate. Most of our production costs are incurred in Rands, while gold is sold in US Dollars and

subsequently converted to Rands. Accordingly, our financial and operational results have been, and could in the future be, materially

affected by movements in the value of the Rand and the US Dollar gold price. Any sustained decline in the Dollar gold price from

current levels and/or any sustained appreciation in the value of the Rand to levels below the cost of production could result in

decreased profitability, impairment losses and closure of operations. This could lead to significant costs including the cost of

retrenchments and closure costs. We generally do not enter into forward contracts to limit our exposure to fluctuations in the US Dollar

gold price or movements in the Rand exchange rate. In circumstances where medium-term debt is raised to fund growth projects, the

Group may enter into price protection arrangements to mitigate consequential liquidity risk. While hedging can provide short-term

protection against adverse movements in the gold price or Rand/Dollar exchange rate, it carries the risk of opportunity costs if the

gold price rises significantly above the hedged level.

Historically, the price of gold has fluctuated widely and is affected by numerous industry factors over which we have no control

including:

•a significant amount of above-ground gold in the world that is used for trading by investors;

•the physical supply of gold from world-wide production and scrap sales, and the purchase, sale or divestment by central banks of

their gold holdings;

•the demand for gold for investment purposes, industrial and commercial use, and in the manufacturing of jewelry;

•speculative trading activities in gold;

•the overall level of forward sales by other gold producers;

•the overall level and cost of production of other gold producers;

•international or regional political and economic events or trends;

•actual or threatened protectionist trade policies and tariffs, which may affect global economic conditions, currency values and

investor demand for gold;

•actual or threatened tariffs on gold, which could have an adverse effect on the global gold market and gold prices and could

increase the cost of selling gold in global markets;

•the strength of the Dollar (the currency in which gold prices generally are quoted) and of other currencies;

•changes in interest rates and financial market expectations regarding the rate of inflation;

•gold hedging and de-hedging by gold producers; and

•actual or expected gold sales by central banks and the International Monetary Fund.

During fiscal year 2026, the gold price traded between a low of approximately US$3,275 per ounce and a high of approximately

US$5,399 per ounce. Investor demand for gold as a safe-haven asset rose markedly during the period, with a number of market

dynamics and factors that may have contributed to it, such as the geopolitical conflict in the Middle East, and the associated

disruption to global energy markets; escalating trade tensions arising from US tariff policies, which fueled broader economic

uncertainty and contributed to a weaker US Dollar; and record levels of accumulation by several central banks. We benefited from the

resulting elevated gold prices, which supported our revenue and profitability throughout fiscal year 2026.

The gold price has traded at or near record levels during fiscal year 2026; however, there can be no assurance that such price levels

will be sustained. Moreover, while elevated gold prices support our operating performance, they may also give rise to additional risks.

For example, a sustained period of elevated gold prices may increase asset acquisition costs, and investments or acquisitions made

on the basis of elevated gold price assumptions may prove unviable if gold prices subsequently decline. In addition, elevated gold

price assumptions may give rise to inflated Mineral Reserve and Mineral Resource estimates and life-of-mine plans; if gold prices

were subsequently to decline, certain reserves could become uneconomic, potentially resulting in downward revisions to those

estimates, reductions in mine life, and impairments of mining assets.

The gold price remained strong and volatile throughout fiscal year 2026, driven by global and domestic factors. At June 30, 2026, the

average spot gold price received was approximately US$4,238 per ounce, representing an increase of 50% compared to June 30,

2025 (when the average spot gold price received was approximately US$2,818 per ounce) and an increase of 36% at June 30, 2025

compared to June 30, 2024. Notwithstanding this year-on-year increase, the gold price experienced significant intra-year volatility in

response to changing investor sentiment, developments in global trade relations, geopolitical events, and expectations regarding the

timing and extent of future US Federal Reserve interest rate adjustments. Additional contributing factors to gold price volatility

throughout the period included fluctuations in the US Dollar, inflation expectations, and broader global economic uncertainty.

The Rand/Dollar exchange rate remained volatile throughout fiscal year 2026, driven by global and domestic factors. At June 30,

2026, the Rand traded at R 16.39 = US$1.00, strengthening by 8% against the Dollar compared to June 30, 2025 (when the Rand

traded at R 17.75 = US$1.00) and a 2% strengthening at June 30, 2025 compared to June 30, 2024. This year-on-year appreciation

reflected a broadly weaker US Dollar, driven in part by global investor concerns regarding the fiscal and trade impact of US tariff

policies, together with improved investor sentiment toward South Africa supported by the narrowing of South Africa’s current account

deficit and the continued stability of South Africa’s electricity supply, with Eskom providing stable electricity to the grid throughout

fiscal year 2026 (load shedding has been suspended since March 2024, though it may be reinstated at any time). Notwithstanding

this year-on-year appreciation, the Rand experienced significant intra-year volatility, strengthening to approximately R15.73 against

the Dollar earlier in the fiscal year before retracing as geopolitical tensions, including disruptions to shipping through the Strait of

Hormuz, contributed to higher energy prices and a partial shift away from emerging market currencies. The Rand subsequently

recovered as global risk appetite improved. Additional contributing factors to exchange rate volatility throughout the period included

uncertainty around the timing and extent of US Federal Reserve interest rate reductions, US tariff policies and associated trade

tensions between the US and China, perceived political and economic instability, and the structurally weak growth of the South African

economy.

DRDGOLD Limited Form 20-F 2026

12

Any sustained adverse movement in the US dollar gold price, the Rand/Dollar exchange rate, or any of the other factors described

above could reduce our revenue, compress our margins and adversely affect our profitability and cash flows, which could have a

Depletion of profitable reserves and/or failure to acquire new Mineral Reserves could negatively affect our future cash flows,

operating results and financial condition.

New or ongoing exploration programs may be delayed or may not result in new mineral producing operations that will sustain or

increase our Mineral Reserves. A failure to acquire new quality Mineral Reserves with reasonable prospects for economic extraction to

maintain or grow the current levels will negatively affect our future cash flow, operating results and financial condition and may have a

material adverse effect on the future viability of our operations. This is particularly relevant to the RTSF, which has been designed to

hold more than current reserve levels at FWGR. See “—We may be unable to make desirable acquisitions or to integrate successfully

any businesses we acquire, including the development of Phase 2 of the FWGR assets acquired from Sibanye-Stillwater.”

At the same time Mineral Reserves that are depleted without replacement will result in a gradual decline in our life-of-mine (“LoM”)

and long-term sustainability. If we are unable to identify Mineral Reserves while maintaining sufficient controls on production and other

costs, this will have a material effect on the future viability of our operations.

We may be unable to make desirable acquisitions or to integrate successfully any businesses we acquire, including the

development of Phase 2 of the FWGR assets acquired from Sibanye-Stillwater.

Our future success may depend in part on the acquisition of businesses or technologies intended to complement, enhance or expand

our current business or products or that might otherwise offer us growth opportunities. Our ability to complete such transactions may

be hindered by a number of factors, including difficulties in identifying suitable acquisition targets, obtaining necessary financing and

potential difficulties in obtaining required government approvals. Any acquisitions we make could fail to achieve our financial or

strategic objectives or disrupt our ongoing business, which could adversely impact our results of operations.

Any acquisition we make could also pose risks related to the integration of the new business or technology with our business and

organization. For example, the integration of the FWGR assets, acquired from Sibanye-Stillwater in 2018, remains ongoing. The

development of Phase 2 of the FWGR assets, which comprises a number of significant capital projects, forms a key component of that

integration, and failure to execute Phase 2 successfully would adversely affect our ability to realize the full anticipated benefits of this

acquisition. See “—Our large projects are subject to scheduling delays and cost overruns, and we may face constraints in financing

our current operations or any future projects, which could render our projects unviable or less profitable than planned.” We cannot be

certain that we will be able to achieve the benefits we expect from a particular acquisition or investment. Acquisitions may also strain

our managerial and operational resources, as the challenge of managing new operations may divert our management from day-to-

day operations of our existing business. Furthermore, we may have difficulty integrating employees, business systems, and

technology. The controls, processes and procedures of acquired businesses may also not adequately ensure compliance with laws

and regulations, and we may fail to identify compliance issues or liabilities. Our business, financial condition and results of operations

may be materially and adversely affected if we fail to coordinate our resources effectively to manage both our existing operations and

any businesses we acquire. Acquisitions can also result in unforeseen liabilities.

Moreover, our resources are limited and our decision to pursue a transaction has opportunity costs; accordingly, if we pursue a

particular transaction, we may need to forgo the prospect of entering into other transactions that could help us achieve our financial or

strategic objectives.

We may not be able to meet our cash requirements because of a number of factors, many of which are beyond our control.

Management’s estimates on future cash flows are subject to risks and uncertainties, such as the Rand gold price, production

volumes, recovered grades and costs. See “—Changes in the market price for gold and exchange rate fluctuations, both of which

have fluctuated widely in the past, affect the profitability of our operations and the cash flows generated by those operations,” “—An

increase in production costs could have an adverse effect on our results of operation,” and “—Our large projects are subject to

scheduling delays and cost overruns, and we may face constraints in financing our current operations or any future projects, which

could render our projects unviable or less profitable than planned.” The Group is currently investing significant capital in the execution

of several major projects. If we are unable to meet our cash requirements out of cash flows generated from our operations, we would

need to fund our cash requirements from financing sources and any such financing may not be permitted under the terms of our

financing arrangements or may not be possible on attractive terms or at all due to rising interest rates, or may not be available on

acceptable terms, or at all. If we do not generate sufficient cash flows or have access to adequate financing, our ability to respond to

changing business and economic conditions, make future acquisitions, react to adverse operating results, meet our debt service

obligations and fund required capital expenditures or meet our working capital requirements may be adversely affected.

DRDGOLD Limited Form 20-F 2026

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An increase in production costs could have an adverse effect on our results of operations.

An increase in our production costs could adversely affect our results of operations. Production costs are affected by, inter alia:

•rising global and national inflation;

•labor stability, productivity and increases in labor costs;

•increases in reagents and nature of material reclaimed;

•increases in electricity and water prices;

•increases in crude oil and steel prices;

•increases in security measures to protect our employees and infrastructure;

•changes in law and regulation;

•unforeseen changes in ore grades and recoveries;

•unexpected changes in the quality or quantity of reserves;

•technical production issues;

•availability and cost of smelting and refining arrangements;

•environmental and industrial accidents;

•gold theft;

•shortages or availability of materials used in production;

•environmental factors; and

•pollution.

Our production costs consist mainly of materials including reagents and steel, labor, electricity, specialized service providers,

machine hire, security, water, fuels, lubricants and other oil and petroleum-based products. Production costs have in the past, and

could in the future, increase at rates in excess of the South African annual inflation rate and impact our results of operations and, in

certain cases, result in the restructuring of these operations at substantial cost. The availability and cost of certain of these inputs may

also be subject to supply chain disruptions, geopolitical developments, or other external factors beyond our control. See “—Supply

shortages and price volatility for key operating materials could adversely affect production and increase operating costs.”

Labor costs represent a significant component of our production costs, and labor-related developments, including wage negotiations

and workforce disputes, could adversely affect our cost base and operations. A four-year wage agreement was reached with

organized labor at FWGR in November 2024, and a five-year wage agreement was reached with organized labor at Ergo beginning

February 2026. There can be no assurance that wage-related disputes will not arise or escalate into industrial action, including

potential labor strikes. Such developments could significantly disrupt operations and pose safety risks to employees. See “—Labor

disputes and changes in South African labor legislation could adversely affect our operations, operating results and financial

condition.”

Increases in production costs, if material, could adversely impact our results of operations. In addition, any initiatives that we pursue

to reduce costs, such as reducing our reliance on Eskom’s grid through self-generation of power, for example through the Solar Plant

at Ergo, reducing our labor force, a reduction of the corporate overhead, negotiating lower price increases for consumables and cost

controls may not be successful or sufficient to offset the increases affecting our operations, which could adversely affect our business,

operating results and financial condition.

Our operations are subject to extensive environmental regulations which could impose significant costs and liabilities.

Our operations are subject to increasingly extensive national, provincial and local laws and regulations governing environmental

protection, which regulate, among other things, air and water quality, hazardous waste management and environmental rehabilitation

and reclamation. See “—Government policies in South Africa may adversely impact our operations and profits related to financial

provisioning for rehabilitation” and “Item 4.D. Business overview—Governmental regulations and their effects on our business—

Environmental Regulation.” Our mining and related activities have the potential to impact the environment, including land, water

resources, habitats, and areas surrounding our operations, including through dust generation, water use and the management of

tailings facilities. More complex and stringent environmental regulations could increase our compliance costs and capital expenditure

requirements, and may subject us to heightened regulatory and stakeholder scrutiny. Failure to comply with environmental laws or

delays in obtaining, or failures to obtain government permits and approvals, or the imposition of additional conditions on permits or

approvals may adversely impact our operations and may open us to enforcement actions and potential litigation. In addition, the

regulatory environment in which we operate could change in ways that could substantially increase costs of compliance, resulting in a

material adverse effect on our profitability.

Regulators may intensify their enforcement of applicable environmental laws and permitting requirements. Enforcement activities may

cause our operations to cease or to be suspended and may require us to undertake corrective measures that require additional

capital expenditure. We have also been, and may in the future be, subject to litigation and other costs as well, as actions by

authorities, affected stakeholders, non-governmental organizations and public bodies relating to environmental matters. These claims

and actions can result in significant liabilities, penalties and fines which can adversely affect our business, operating results, and

We have incurred, and expect to incur in the future, expenditures to comply with these environmental laws and regulations. We have

estimated our aggregate group Provision for Environmental Rehabilitation at a net present value of R 721.4 million which is included in

our statement of financial position as at June 30, 2026. For further detail, see “Item 18. Financial Statements—Note 10—Provision for

environmental rehabilitation.” However, the ultimate amount of rehabilitation costs may in the future exceed the current estimates due

to factors beyond our control, such as changing legislation, higher than expected cost increases, or unidentified rehabilitation costs.

The Group provides for future obligations to rehabilitate by using funds held in insurance products. If any of our operations are

prematurely closed, the rehabilitation funds may be insufficient to meet all the rehabilitation obligations of those operations. The

closure of mining operations, without sufficient financial provision for the funding of rehabilitation liabilities, or unacceptable damage to

the environment, including pollution or environmental degradation, may expose us and our directors to prosecution, litigation and

potentially significant liabilities.

DRDGOLD Limited Form 20-F 2026

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Beyond compliance with local laws and regulations, our operations are also increasingly subject to stakeholder expectations

concerning the application of international environmental, and health and safety, and social standards. These include the International

Performance Corporation ("IPC") Performance Standards, World Gold Council guidelines, World Bank guidelines, and other

applicable voluntary frameworks. The application of these standards may similarly increase the cost of compliance, while the failure to

adhere to such standards could result in reputational damage and adversely affect our operations.

We may be subject to losses for which we are uninsured or underinsured, which could adversely affect our cash flows and

profitability.

The nature of our operations exposes us to liability for pollution, environmental damage and other operational hazards against which

adequate insurance coverage may not be available in the market or may not otherwise be maintained, including in respect of past

mining activities. Our existing property, business interruption and other insurance is subject to exclusions and limitations that may

leave certain losses not fully covered. The insured value for property and loss of profits due to business interruption is R27.8 billion,

with a total loss limit of R3.5 billion for Ergo and R1.25 billion for FWGR for fiscal year 2026. Business interruption coverage

commences from the time the loss occurs with a maximum indemnity period of 12 months and is subject to time and amount

deductibles that vary between coverage categories. To cover legal liability to third parties for damage, injury, illness or death, a total of

R1 billion insurance cover is in place for the 2026 fiscal year, subject to certain exclusions and limitations on coverage. There can be

no assurance that upon renewal of our insurance policies, equivalent coverage will be available in future periods on commercially

acceptable terms, or at all.

Our insurance coverage may be insufficient to cover the full extent of claims brought against us. These include claims arising from

environmental, industrial or pollution-related accidents or damage, the failure, breach, overflow or other incident involving our tailings

storage facilities, or business interruption resulting from electricity supply failures or interruptions, for which coverage is not available.

Such events could result in significant remediation costs, property damage, operational disruptions, regulatory penalties and third-

party claims for injury, loss of life or environmental harm. Our insurance policies also contain exclusions for losses arising from

infectious diseases or pandemics, meaning that any business interruption caused by such an event may not be covered and could

result in loss of revenue. If we are required to meet the costs of claims or losses that exceed our insurance coverage, this could have

a material adverse effect on our business, operating results and financial condition.

If we are unable to attract andretain key personnel, our business could be adversely affected.

The success of our business will depend, in large part, upon the skills and efforts of a small group of management and technical

personnel including the positions of Chief Executive Officer and Chief Financial Officer. The loss of any of our key personnel could

delay the execution of our business plans, which could result in decreased production, increased costs and decreased profitability.

For example, the former Chief Financial Officer vacated his position during fiscal year 2026, and while there was sufficient succession

planning in place, there is no guarantee that future departures will not disrupt the business. In addition, we do not maintain “key man”

life insurance policies on any members of our executive team.

The ability to retain and attract key personnel is further challenged by competition for skilled personnel. We compete with mining and

other companies on a global basis to attract and retain key human resources at all levels with appropriate technical skills and

operating and managerial experience necessary to operate the business. Our ability to retain and attract such personnel depends in

part on our ability to offer competitive compensation arrangements and other benefits. Any failure to attract or retain key personnel

could have a material adverse effect on our business, operating results and financial condition.

Failure of technologies designed to improve extraction efficiencies and operational performance.

The low-grade nature of our resource requires economies of scale, mechanized mining and high levels of plant extraction efficiency,

supported by accurate analysis and disciplined capital investment. Our operations are also reliant on scarce environmental resources,

including energy and water. We therefore continue to assess and deploy technologies that can improve gold recoveries and

profitability by increasing extraction efficiency, reducing potable water consumption, increasing the use of renewable energy and

improving the efficient use of machinery and equipment across our operations.

This often requires capital investment. For example, we have previously invested in the central water facility, Rondebult waste water

plant, and the solar power plant and battery energy storage system at Ergo. Although extensive care, feasibility studies and test work

are performed to assess the suitability of technologies before implementation, there is no guarantee that these technologies will

perform as intended. They may also become less effective or redundant over time as new technological advances emerge.

In the current year, capital was approved for the construction of an up-flow reactor ("UFR") at the DP2 plant, following promising test

work that indicated the potential to improve gold recovery efficiency. Although extensive test work has been performed, there remains

a risk that the UFR may not perform as expected once implemented.

Risks related to the gold mining industry

A change in the Dollar price of gold, which in the past has fluctuated widely, is beyond our control.

For a discussion of the combined impact of gold price fluctuations and Rand/Dollar exchange rate movements on the gold mining

industry and our business, operating results and financial condition, see “—Changes in the market price for gold and exchange rate

fluctuations, both of which have fluctuated widely in the past, affect the profitability of our operations and the cash flows generated by

those operations.”

The exploration of mineral properties is highly speculative in nature, involves substantial expenditures, and is frequently

unproductive.

Exploration is highly speculative in nature and requires substantial expenditure for drilling, sampling and analysis of ore bodies to

quantify the extent of gold reserves. There can be no assurance that our gold exploration programs will result in the discovery of

commercially viable mineralization, or that any mineralization discovered will be of sufficient quantity or quality to be mined profitably. If

we discover a viable deposit, it usually takes several years from the initial phases of exploration until production is possible. During this

time, the economic feasibility of production may change.

DRDGOLD Limited Form 20-F 2026

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Moreover, we rely on the evaluations of professional geologists, geophysicists, and engineers for estimates in determining whether to

commence or continue mining. These estimates generally rely on scientific and economic assumptions, which in some instances may

not be correct, and could result in the expenditure of substantial amounts of money on a deposit before it can be determined with any

degree of accuracy whether the deposit contains economically recoverable mineralization. In addition, uncertainties as to

metallurgical recovery rates may mean that processing a deposit is not economically warranted on the basis of available technology.

Our business focuses mainly on the extraction of gold from tailings, which is a volume-driven process. Accordingly, our future growth

and profitability will depend, in part, on our ability to identify and acquire additional mineral rights and gold reserves, and on the costs

and results of our continued exploration and development programs. Only deposits of significant size within proximity of services and

infrastructure that contain adequate gold content to justify the significant capital investment associated with plant, reclamation and

deposition infrastructure are suitable for exploitation within our business model. There is a limited supply of these deposits, which may

constrain our exploration and development, especially in a declining gold price environment that may occur in future.

Because of these uncertainties, we may not successfully acquire additional mineral rights or identify new Proven and Probable Mineral

Reserves in sufficient quantities to justify commercial production at any given operations. The costs incurred on exploration activities

that do not identify commercially exploitable reserves of gold are unlikely to be recovered and are therefore likely to be impaired.

There is inherent uncertainty in Mineral Reserves and Mineral Resources estimates.

Our Mineral Reserve and Mineral Resources figures described in this document are the best estimates of our current management as

of the dates stated and are reported in accordance with the requirements of the SEC’s Regulation S-K (Subpart 1300). These

estimates may not reflect actual Mineral Reserves and Mineral Resources or future production.

Estimates of Mineral Reserves and Mineral Resources are based on various estimates including drilling results and because

unforeseen conditions may occur in these historical mine tailings that may not have been identified by the drilling results and other

information, the actual results may vary from the initial estimates. Should we encounter mineralization or formations different from those

predicted by past drilling, sampling and similar examinations, reserve estimates may have to be adjusted and mining plans may have

to be altered in a way that might ultimately cause our reserve estimates to decline. Moreover, if the Rand price of gold declines, or

stabilizes at a price that is lower than our cost of production, or those assumed in our mining plans, or if our labor, specialized services

providers, water, steel, electricity and other production costs increase or recovery rates decrease, it may become uneconomical to

recover Mineral Reserves and Mineral Resources, particularly those containing relatively lower grades of mineralization. See “—A

change in the Dollar price of gold, which in the past has fluctuated widely, is beyond our control,” and “—An increase in production

costs could have an adverse effect on our results of operations.” Under these circumstances, we would be required to re-evaluate our

Mineral Reserves and Mineral Resources. Short-term operating factors relating to the ability to reclaim our Mineral Reserves, at the

required rate, such as an interruption or reduction in the supply of electricity, limited deposition capacity or a shortage of water may

have the effect that we are unable to achieve critical mass, which may render the recovery of Mineral Reserve, or parts of the Mineral

Reserve no longer feasible, which could negatively affect production rate and costs and decrease our profitability during any given

period. These factors have in the past and could in the future result in reductions in our Mineral Reserves and Mineral Resources

estimates and as a result, our production, which could in turn adversely impact the total value of our mining asset base and our

Our gold mining operations are subject to numerous operational risks and hazards that could have an adverse effect on our

business.

The business of gold mining is exposed to numerous risks and events, the occurrence of which may result in the death of or personal

injury to employees, the loss of mining and reclamation equipment, damage to or destruction of mineral properties or production

facilities, monetary losses, delays in production, environmental damage, loss of the license to mine and potential legal claims. The

risks and events associated with the business of gold mining include:

•environmental hazards and pollution, including dust generation, toxic chemicals, discharge of metals, pollutants, radioactive

materials and other hazardous material into the air and water;

•flooding, landslides, sinkhole formation, ground subsidence, ground and surface water pollution and waterway contamination;

•decreased labor productivity due to labor disruptions, work stoppages, slowdowns, strikes or disease;

•unexpected decline of ore grade;

•metallurgical conditions or lower than expected gold recovery;

•failure of unproven or evolving technologies;

•mechanical failure or breakdowns and aging infrastructure;

•energy and electrical power supply interruptions;

•limited availability of, or disruptions to water supply;

•injuries to employees or fatalities arising from occupational accidents and safety incidents, including falls from heights, accidents

involving mobile machinery, electrocution, and other workplace hazards;

•activities of illegal or artisanal miners;

•material and equipment availability;

•legal and regulatory restrictions and changes to such restrictions;

•social or community disputes or interventions;

•accidents caused by the collapse of tailings storage facilities;

•pipeline failures and spillages;

•safety-related stoppages; and

•corruption, fraud and theft including gold bullion theft.

The occurrence of any of these risks or hazards could delay production, increase production costs, reduce earnings or result in

losses, and may result in significant legal claims, which could adversely impact our business, operating results and financial

DRDGOLD Limited Form 20-F 2026

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Risks related to doing business in South Africa

Political or economic instability in South Africa may reduce our production and profitability.

We are incorporated in South Africa, where all of our operations are located. Large parts of our operations are situated in urban areas

where most of the communities that live near our facilities face significant poverty and socio-economic challenges. Political and

economic risks relating to South Africa which have escalated in recent years and could have a significant effect on our production and

profitability. Large parts of the South African population are unemployed and do not have access to adequate education, health care,

housing and other services, including water and electricity. Government policies aimed at alleviating and redressing historical

inequalities, including transformation and empowerment policies, may increase our costs and reduce our profitability. Elevated crime

levels expose us to an increased frequency and severity of security issues that may disrupt business operations. These factors may

impede foreign direct investment into South Africa and increase emigration of skilled workers; as a result, we may have difficulties

retaining qualified employees.

The sustained high unemployment rate, rising inequality and elevated crime levels have increased the risk of social unrest, such as

protests and conflict, in our surrounding communities. There is also a growing hostile sentiment toward foreign nationals with anti-

immigrations movements increasing staging demonstrations and protests at major urban hubs which intensified in the third quarter of

the calendar year. Persistent failures of service delivery, political instability, and insufficient progress in addressing unemployment,

particularly among the youth, have deepened community frustration and heightened the potential for violent protests and strikes that

could cause damage to property, harm to employees and disrupt our operations. A prolonged economic downturn could result in an

extended period of high unemployment, further exacerbating anti-mining sentiments in South Africa. Poor service delivery by local

government has caused communities to direct expectations toward the private sector for the provision of essential services and

broader social support and assistance. Poverty and high levels of unemployment have led to demands to participate in, and benefit

from, the economic activities of our business. Failure to adequately respond to those expectations could result in miscommunication,

misaligned expectations and loss of trust that in turn could threaten our social license to operate.

Notwithstanding recent positive developments in South Africa following the formation of the Government of National Unity (“GNU”)

after the 2024 elections, including a sustained reduction in power outages, an improvement in South Africa’s credit outlook, and the

removal of South Africa from the Financial Action Task Force grey list in October 2025, operating within the South African context

remains challenging. Recent sovereign rating updates have affirmed a stable to positive outlook, but indicated that any further upward

revisions will depend on sustained economic growth and fiscal discipline. Ongoing tensions within the GNU coalition contribute to

unpredictable policy and regulatory changes, and sustained challenges relating to corruption, systemic failures, public infrastructure

deterioration and poor service delivery continue to erode public trust and heighten social tensions.

The overall state of South African municipalities has deteriorated significantly with many municipalities, including those of our

operations, unable to provide reliable basic services, maintain financial stability, pay amounts due to Eskom or maintain and develop

critical infrastructure. This has led to increasing water outages, electricity substation failures, and deteriorating roads and other

infrastructure, political disruption and delays in obtaining permits required to do business such as zoning and land use approval,

business licenses, wayleaves and permits. Municipal permits are particularly important for our business given our extensive footprint

and need to integrate our assets through pipeline routes, which are at times subject to municipal approval.

South Africa is expected to hold municipal elections in 2026, which may result in changes to local government leadership, policy

priorities and administrative processes. Election periods may create uncertainty regarding municipal governance, service delivery and

infrastructure planning, particularly in municipalities that are already experiencing operational and financial challenges. Changes in

municipal administrations or priorities, together with potential election-related protests, disputes or disruptions, could delay approvals,

permits, zoning and land-use decisions, and other municipal processes on which we depend. Any deterioration in municipal

governance or service delivery following the elections could adversely affect our operations, increase costs and delay the execution of

strategic projects.

Uncertainty within South Africa's political and economic context may adversely affect business and investor confidence. In addition,

heightened scrutiny of government performance and state accountability, including through ongoing governance and anti-corruption

inquiries and processes, has contributed to policy uncertainty, regulatory shifts, and unpredictable community responses.

These factors, individually and collectively, contribute to sustained uncertainty within the South African political and economic

environment and may negatively impact our ability to operate efficiently or otherwise increase our costs of compliance and execution,

which could adversely impact our business, operating results and financial condition.

High inflation may have a material adverse effect on our business, operating results and financial condition.

The inflation rate in South Africa is relatively high compared to developed, industrialized countries, although many countries around

the world are currently facing inflation challenges. As of June 30, 2026, the annual Consumer Price Inflation Index (“CPI”), stood at

5.0% compared to 3.5% in June 30, 2025 and 5.1% in June 30, 2024. Inflation in South Africa generally results in an increase in our

Rand operational costs. Higher and sustained inflation in the future, with a consequent increase in operational costs could have a

material adverse effect on our results of operations and our financial condition and could result in operations being discontinued or

reduced or rationalized, which could reduce our profitability.

Inflation in the gold mining sector tends to exceed general inflation, primarily due to increases in electricity, reagent, labor costs and

most recently diesel cost. The impact of these cost pressures is reflected in DRDGOLD's cash cost, which increased by 7.8% in fiscal

year 2026 (fiscal year 2025:4.3% and fiscal year 2024: 13.7%), although this was also influenced by the volume of tonnages

processed, nature of material processed and increased trucking activities at Ergo. Higher and sustained inflation in the future, with a

consequent increase in operational costs could have a material adverse effect on our results of operations and our financial condition

and could result in operations being discontinued or reduced or rationalized, which could reduce our profitability.

DRDGOLD Limited Form 20-F 2026

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The treatment of occupational health diseases and the potential liabilities related to occupational health diseases may have

an adverse effect on our operating results and financial condition.

We may be subject to claims relating to occupational health diseases and we are currently subject to legal action described below.

In January 2013, DRDGOLD, East Rand Proprietary Mines Limited (“DRDGOLD Respondents”) and 23 other mining companies

(“Other Respondents”) (collectively referred to as“Respondents”) were served with a court application issued in the High Court of

South Africa for a class certification on behalf of former mineworkers and dependents of deceased mineworkers (“Applicants”). In

the application the Applicants allege that the Respondents conducted underground mining operations in a negligent and complicit

manner causing the former mineworkers to contract occupational lung diseases. The Applicants have as yet not quantified the

amounts which they are demanding from the Respondents in damages.

On May 3, 2018, the Applicants and Anglo American South Africa Limited, AngloGold Ashanti Limited, Sibanye Gold Proprietary

Limited a wholly owned subsidiary of Sibanye Stillwater Limited, Harmony Gold Mining Company Limited, Gold Fields Limited, African

Rainbow Minerals Limited and certain of their affiliates (“Settling Companies”) settled the class certification application in which the

Applicants in each sought to certify class actions against gold mining houses cited therein on behalf of mineworkers who had worked

for any of the particular respondents and who suffer from any occupational lung disease, including silicosis or tuberculosis.

The DRDGOLD Respondents, are not a party to the settlement between the Applicants and Settling Companies. The dispute, insofar

as the class certification application and appeal thereof is concerned, still stands and has not terminated in light of the settlement

agreement. For further detail, see "Item 18. Financial Statements - Note 26 –Contingencies”.

An adverse judgment in the claim described above or any other claim could have an adverse impact on our financial condition and

operating results and could result in increased regulatory and stakeholder scrutiny which could lead to increased compliance costs.

We have experienced an increase in theft targeting our facilities, which may expose our employees to harm and our

operations to disruption and financial loss.

Theft across South Africa’s mining sector continues to escalate, driven by socio-economic pressures. See “—Political or economic

instability in South Africa may reduce our production and profitability.” Rising commodity prices, particularly for gold, copper and

steel, have made copper cables, pipelines and gold-bearing material increasingly attractive targets for criminal activity. Criminal

methods have grown increasingly organized and sophisticated, posing an escalating and evolving threat to our operations and

employees.

Our operations have been subject to incidents of theft involving gold-bearing material, copper cables, pipelines and other

infrastructure. These incidents have, from time to time, affected operational activities and resulted in losses of material, damage to

property or additional costs associated with repairs, replacement and security measures. While we have implemented and continue to

enhance security measures to mitigate these risks, there can be no assurance that theft and related incidents will not occur in the

future. Any such incidents could result in operational disruptions, increased costs and reduced production.

In addition to the risk to personal safety, cable theft and theft of bolts used for our pipelines have caused power interruptions that

result in production losses and additional operational costs. Such incidents have in the past resulted, and may continue to result, in

losses of gold or other damage to property or infrastructure, which could have a material adverse effect on our business, operating

results and financial condition. We have implemented enhanced security measures in response to these threats, resulting in increased

security expenditure; however, there can be no assurance that such incidents will not occur in the future, or that security measures

implemented will be effective in preventing theft or mitigating the associated risks to our employees and operations.

Power stoppages or shortages or increases in the cost of power could negatively affect our results and financial condition.

Our mining operations are currently primarily dependent on electrical power supplied by Eskom, South Africa’s state-owned utility

company. Electricity makes up approximately 11% of our operating costs. Eskom has in the past been unable to satisfy the energy

requirements of the South African economy and implemented a system of power rationing or load shedding to prevent a complete

collapse of the national electricity grid. While Eskom’s financial position has shown some improvement in recent periods, significant

operational and financial risks remain. It is owed billions of Rands by local municipalities and has also been subject to damage to its

supply grid through persistent cable theft. Historically, load shedding posed a threat to our ability to maintain the requisite volume

throughput to deliver our business plan, and the steps we were required to take to curtail load, such as intermittently switching off our

mills, also impacted recovery efficiencies. The private sector has responded by accelerating private production of renewable power.

Government measures have been slow to advance the liberalization of power generation on a larger scale. Although load shedding

remained suspended as of June 30, 2026, South Africa is still exposed to load reduction for the foreseeable future if the required

maintenance and renewal of the Eskom power generation fleet does not take place, which will come at a significant cost to end users

of Eskom’s electricity. Eskom and the government have introduced a number of initiatives over recent years aimed at improving

electricity supply reliability and reducing load shedding, including:

•The implementation of the Energy Action Plan by the President of South Africa;

•The launch of Eskom’s Generation Operational Recovery Plan to improve plant performance and electricity availability;

•Changes in the leadership and governance structures of Eskom;

•National Treasury's debt-relief measures to improve Eskom’s financial sustainability;

•Reduced demand for Eskom-supplied electricity as residential, commercial and industrial consumers increasingly adopt alternative

and renewable energy sources;

•The establishment and operationalization of the National Transmission Company South Africa (“NTCSA”) as part of Eskom’s

ongoing unbundling process, with responsibility for the national transmission system and electricity market operations;

•Regulatory reforms and incentives that facilitate greater private sector participation in electricity generation; and

•Tax incentives for companies to develop renewable energy projects and reduce reliance on Eskom-generated electricity.

DRDGOLD Limited Form 20-F 2026

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In 2019, the President of South Africa announced the vertical unbundling of Eskom to improve efficiency, establish an independent

transmission system operator and facilitate greater competition in electricity generation. While full state ownership of Eskom will be

maintained, the unbundling process is expected to result in the separation of Eskom’s generation, transmission and distribution

functions into distinct entities and may require further legislative and policy reforms. The unbundling process remains ongoing with

significant progress made through the operationalization of NTCSA. In March 2024, the National Energy Regulator of South Africa

(“NERSA”) approved Eskom’s request to transfer responsibility for independent power producer ("IPP") agreements to NTCSA. The

reforms are intended to support increased participation by IPPs, improve competition within the electricity market and enhance long-

term electricity security. However, the transition remains complex and there can be no assurance that the anticipated benefits of the

unbundling process will be realized or that electricity prices will remain stable.

Eskom’s coal-fired power stations experienced significant operational challenges for several years, resulting in national rotational

power cuts (load shedding) being implemented across South Africa. However, following substantial improvements in plant

performance, increased generation availability, reduced unplanned outages and the addition of generation capacity, load shedding

has remained suspended since March 2024. While the stability of electricity supply has improved significantly, there can be no

assurance that load shedding will not resume in the future should operational, infrastructure, fuel supply, maintenance or demand-

related challenges arise. In addition, Eskom continues to seek tariff increases to strengthen its financial position. Any deterioration in

electricity supply reliability or further above-inflation electricity tariff increases could adversely affect our business, operating results

and financial condition.

Eskom reported a pre-tax profit for the year ended March 31, 2025, its first pre-tax profit in eight years, driven by reduced load

shedding, improvements in its Energy Availability Factor, lower diesel consumption and the addition of new generating capacity.

These operational improvements continued through fiscal year 2026 and contributed to a more stable electricity supply environment.

Nevertheless, Eskom remains exposed to significant operational, financial, regulatory and infrastructure-related risks, and there can

be no assurance that recent improvements will be sustained. Any deterioration in Eskom’s financial condition or operating

performance may negatively affect electricity supply reliability, increase electricity tariffs and adversely impact our operations.

NERSA approved Eskom annual tariff increases of 12.74% effective April 1, 2025, significantly above the South African CPI. NERSA

has approved further annual increases of 8.76% from April 1, 2026 and 8.83% from April 1, 2027. Eskom tariff increases may increase

our operating costs and have an adverse effect on profitability.

The security of future power supply and the cost of that supply remains a risk and may have major implications for our operations,

which may result in significant production losses.

Ergo has completed the construction and commissioning of a Solar Power plant and BESS, with the aim of reducing its reliance on

Eskom and lowering its future cost of electricity. Although dependence on Eskom has decreased, it is not eliminated as Eskom power

is still used during off-peak periods to power the operations and charge the BESS. See “—Underperformance of Ergo’s solar and

energy storage infrastructure could increase electricity costs and adversely affect Ergo’s operational performance”.

Ergo is also currently disputing the electricity tariff charged by Ekurhuleni Metropolitan Municipality. Over the past several years, the

municipality has charged Ergo for the electricity it drew from the Ergo Central Substation, prior to commissioning of the Solar plant and

BESS. However, Ergo contends that only Eskom may legitimately charge for the electricity drawn and consumed. Ergo has instituted

legal proceedings by way of an application and since then, the municipality has issued two summonses. Ergo has made payments

under protest and without prejudice or admission of liability. The outcome of Ergo's application remains uncertain and could have a

material adverse effect on our business, operating results and financial condition. For further information, see “Item 18. Financial

Statements—Note 24—Payments Made Under Protest.”

Risks related to ESG performance including climate change

We may not be able to meet increasing environmental, social and corporate governance expectations.

Increased scrutiny and expectations from stakeholders, including governments, non-governmental organizations (“NGOs”),

shareholders, investors, communities and other interested parties, regarding our Environmental, Social, and Governance (“ESG”)

performance and practices, together with growing reporting requirements, may expose us to additional costs and potential penalties

for non-compliance with applicable ESG reporting and regulatory standards.

ESG-related risks to which we are exposed include: physical and transition risks related to climate change; non-compliance with

environmental legislation and applicable industry practices; soil and water contamination; radiation; noise; water availability and

efficient use of water; energy efficiency and decarbonization; pollution and inappropriate waste management; occupational health and

safety risks; compromised employee health and mental health; diversity and inclusion; heightened community expectations and

concerns; complexity of legal and regulatory compliance obligations; supply chain risks; and tailings management risks, among

others. These risks are compounded by new national and international laws and regulations, increased public concern and pressure

from advocacy groups, regulators and investors for companies to address and report on the impact of climate change. The need to

adapt or transition in response to climate change, including complying with new regulations and responding to increased stakeholder

expectations, could result in higher compliance and operating costs and could have further effects on production costs and capacity.

Furthermore, there can be no assurance that measures we implement to adapt to, or transition in response to, climate change will be

sufficient to mitigate the associated risks to our operations. Failure to manage these ESG risks, achieve our ESG performance targets,

or adopt adequate transition measures could reduce investor confidence, harm our reputation, and have a material adverse effect on

our business, operating results and financial condition.

DRDGOLD Limited Form 20-F 2026

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Climate change may present physical risks to our operations, including extreme weather events and flooding.

As a result of climate change, our operations are exposed to severe weather events that have in the past and could in the future

interrupt production and our supply chain. Loss of human life, and major property, infrastructure or environmental damage, could be

caused by extreme weather events such as droughts, heatwaves, extreme rainfall and strong winds, the frequency, duration and

intensity of which are increasing. Specifically, we have experienced an increase in intensity of climate events, such as thunderstorms

on the Highveld, where our operations are situated. The long-term upward trend in global temperature is associated with an increase

in the magnitude and frequency of severe weather events globally. During fiscal year 2025 and 2026, unprecedented heavy and

persistent rainfall caused delays in the construction of the RTSF. Tonnages were also lower at Ergo due to restricted access to certain

sites which affected the desired blend of reclamation material and ultimately impacted gold production.

Severe thunderstorms and high winds, especially during the summer rainy season, may also cause damage to operational

infrastructure, which could, in turn, interrupt gold production. Strong wind in particular may also increase dust exceedances

(exceedances of applicable dust emission limits) throughout our operations, causing air pollution. Such incidents and other weather

events may damage our facilities and infrastructure or disrupt water management systems, resulting in water shortages which can

impact our operations and cause the interruption of deposition and gold production until such infrastructure is repaired or alternative

deposition capacity is made available.

The occurrence of these risks and events may result in adverse impacts on our workforce, production interruptions, increased

operational costs associated with mitigation measures, power and supply chain disruptions, project delays and higher production

costs. These factors could have a material adverse effect on our business, operating results and financial condition.

Water scarcity, which may be exacerbated by climate change, and could adversely affect our operations.

South Africa is a relatively dry and water-stressed country, and these conditions may deteriorate as a result of climate change. South

Africa faces water shortages, which may lead to rationing or increased water costs across several sectors of the South African

economy. Such changes could adversely impact our surface retreatment operations, which use water to transport slimes or sand from

reclaimed areas to the processing plant and to our tailings facilities. Additionally, in Johannesburg and surrounding areas, water

supply infrastructure is poorly maintained, leading to interruptions in water supply that could further disrupt our operations.

Water is a critical resource in our operations and the Group continues to invest in infrastructure and operational initiatives aimed at

maximizing water reuse and reducing reliance on external water sources. DRDGOLD operates largely within a closed water circuit,

whereby water recovered during processing and deposition activities is recycled and reused throughout the production process. This

approach reduces freshwater demand, supports environmental stewardship and enhances operational resilience in water-

constrained environments. Notwithstanding these initiatives, the availability and quality of water resources remain subject to

regulatory, environmental and infrastructure-related challenges, and any significant disruption to water supply or recycling systems

could adversely affect production, operating costs and results of operations.

Furthermore, our surface retreatment operations rely on third-party service providers for the supply and treatment of water required for

production. FWGR relies on Sibanye-Stillwater to pump and supply underground mine water for its operations. Ergo relies on the

Trans-Caledon Tunnel Authority ("TCTA") for the supply of AMD water. Any interruption in these services could materially disrupt our

operations and affect production. In addition, AMD water requires significant treatment to meet operational standards, resulting in

additional treatment costs.

Any reduction in the volume or quality of water available to our operations may adversely impact production output, which could, in

turn, have a material adverse effect on our business, operating results and financial condition.

Risks related to government regulation

Changes in government policies or the regulatory environment in South Africa may adversely impact our operations and

profitability.

The mining industry in South Africa is extensively regulated through legislation and regulations promulgated by government

departments and regulatory bodies. These regulatory requirements govern areas including health and safety, water usage, the

exploration and mining of minerals, and environmental management. A variety of permits, regulatory approvals and authorizations are

required to mine lawfully, and the Government enforces its regulations through the various government departments. A lack of

communication between government departments and regulatory bodies, together with under-resourced regulators, continues to

present challenges that may increase compliance costs and the time required to obtain permits. The formulation or implementation of

government policies may be discretionary and unpredictable on certain issues, including changes in conditions for the issuance of

licenses relating to labor plans, workplace transformation and Black Economic Empowerment ("BEE") requirements, laws relating to

mineral rights, ownership of mining assets and the rights to prospect and mine, additional taxes on the mining industry and in extreme

cases, nationalization. Changes in regulatory or government policies could adversely affect our business and may result in increased

project costs and potential delays. Complexity, uncertainty and regulatory changes continue to characterize the South African

regulatory environment, and changes that are adverse to business and growth may result in increased project costs and potential

delays.

On May 20, 2025, the draft MPRD Bill (“MPRD Bill”) was gazetted for public comment. Amongst the many concerning changes that

are proposed, two are of particular concern, namely the proposed re-classification of mine residue stockpiles as minerals, and the

introduction of a requirement of a mining right to reclaim minerals from such stockpiles, as well as changes to the Broad-Based Black

Economic Empowerment (“B-BBBEE”) and transformation regime. The other notable concern with respect to the MPRD Bill relates to

suggested ‘Beneficiation’.

DRDGOLD Limited Form 20-F 2026

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Requirement of a mining right

DRDGOLD’s operations involve the reclamation and retreatment of privately owned, movable historic mine residue stockpiles —

principally tailings and slimes dams created before the commencement of the MPRDA — rather than the extraction of naturally

occurring in situ mineral deposits. Currently, and as a general proposition in the mining industry, the processing of historic mine

residue stockpiles does not constitute “mining” for the purposes of the MPRDA. Movable tailings dumps created before May 1, 2004,

when the MPRDA became effective, and which are classified as ‘historic mine residue stockpiles’, are not subject to the MPRDA and

can be processed without a mining right. If the MPRD Bill is enacted in its proposed format and these stockpiles are reclassified as

minerals, it may significantly affect the economics of reclaiming them depending on the conditions imposed by the State for the

issuance of a mining license to process these movable tailings dumps. It may similarly also impact our provision for rehabilitation and

mine closure, inasmuch as the removal of such residue stockpiles form part of an Environmental Management Program.

BEE and transformation regime

Currently, compliance with BEE requirements when applying for a Prospecting Right takes the form of the Minister having a discretion

to require such compliance under section 17(4) of the MPRD Act. The MPRD Bill proposes changes to the BEE and transformation

imperatives to those which currently apply to the Mining Industry. The MPRD Bill amends the definition of “this Act” to include “the

Codes of Good Practice for the South African Minerals Industry and Housing and Living Conditions Standards for the Minerals

Industry”, gazetted on April 29, 2009 (“Codes”), which are currently unenforceable. The MPRD Bill however makes these Codes

enforceable legislation. The current version of the Codes conflict with the transformation imperatives in the remainder of the MPRD Bill

and it is logical to assume that a new version of the Codes will have to be released when the MPRD Bill becomes effective.

Beneficiation

"Beneficiation” is defined as “value addition to a higher value over baselines determined by the Minister” (the Minister of Mineral and

Petroleum Resources). Therefore, the State has control over what comprises beneficiation. The Minister can prescribe “conditions

required to ensure security of supply for local beneficiation”. The MPRD Bill provides that “Every producer of minerals must make

available minerals or mineral products for local beneficiation”. In summary, the Minister can determine what comprises “beneficiation”,

can make regulations with respect to promotion of “beneficiation” and mining companies will be compelled to ensure supply of

minerals for “beneficiation” in South Africa.

We have submitted representations to the office of the Department of Mineral and Petroleum Resources (“DMPR”) (previously the

Department of Mineral Resources and Energy (the“DMRE”) expressing our concerns regarding these proposed amendments. The

Minerals Council of South Africa, which advocates on behalf of mining companies such as DRDGOLD, has also submitted its own

representations to the office of the DMPR. However, there can be no assurance that such advocacy efforts will be successful. In

addition, although we may challenge any attempts by the State to expropriate or otherwise restrict our ownership or use of movable

tailings dumps, there can be no assurance that such challenges would be effective. If the MPRD Bill, or similar amendments, is

promulgated into law, it could result in increased regulatory requirements, additional costs and taxes, restrictions on our ability to

process tailings or other mineral resources, or potential risks relating to the ownership and use of movable tailings dumps. Any such

developments could adversely affect our operations, results and financial condition.

Furthermore, certain regulators are significantly understaffed and under-resourced and not always able to process administrative

filings in accordance with prescribed timelines, which could result in delays to our project planning and execution. In 2023 and 2024,

this risk materialized when the commissioning of several new reclamation sites was delayed due to backlogs in the Department of

Water and Sanitation's processing of Water Use License applications, leading to shortfalls in planned production. Delays in securing

the required regulatory approvals for reclamation sites 4L39 and 5L23 during FY2026 also have resulted in the need for additional

material trucking, which, combined with rising fuel prices, had significant impact on operating costs.

Both Ergo and FWGR currently have license and other permit applications pending relating to the commissioning of reclamation sites

and TSFs. If these are not processed in time, the projects may experience delays in commissioning, which could result in lower than

targeted production.

Mining royalties and other tax reform could have an adverse effect on our business, operating results and financial condition.

The Mineral and Petroleum Resources Royalty Act, No.28 of 2008 and the Mineral and Petroleum Resources Royalty Act

(Administration), No.29 of 2008 govern royalty rates for gold mining in South Africa. These acts provide for the payment of a royalty,

calculated through a royalty rate formula (using rates of between 0.5% and 5.0%) applied against gross revenue per year, payable

half yearly with a third and final payment thereafter. The royalty is tax deductible and the cost after tax amounts to a rate of between

0.35% and 3.65% at the prevailing marginal tax rates applicable to the taxed entity. The royalty is payable on old unconverted mining

rights and new converted mining rights. Based on a legal opinion DRDGOLD obtained, mine dumps created before the enactment of

the MPRDA fall outside the ambit of this royalty, and consequently we do not pay any royalty on any dumps created prior to the

MPRDA. If the changes proposed in the Draft Bill are enacted, this dispensation could change and revenue-based royalties could be

levied on minerals produced from historic residue stockpiles. This as well as any other adverse future tax reforms could have an

adverse effect on our business, operating results and financial condition.

Failure to comply with the requirements of the Broad-Based Socio-Economic Empowerment Charter 2018 could have an

adverse effect on our business, operating results and financial condition.

On September 27, 2018, the Broad-Based Socio-Economic Empowerment Charter for the Mining and Minerals Industry, 2018

(“Mining Charter 2018”) was published in Government Gazette No. 41934 of Government Notice No. 639 on September 27, 2018.

Mining Charter 2018 requires, inter alia, an enduring 30% BEE interest in respect of new mining rights. It also has extensive provisions

in respect of Historically Disadvantaged Persons (“HDP”) representation at Board and management, as well as provisions relating to

local procurement of goods and services. The procurement target of the total spend on services from South African companies has

been pegged at 80% (up from 70% in Mining Charter III) and 60% of the aggregate spend thereof must be apportioned to BEE

entrepreneurs.

In March 2019, the Mineral Council of South Africa brought an application in the High Court, Pretoria for a judicial review and setting

aside of certain provisions in Mining Charter 2018.

DRDGOLD Limited Form 20-F 2026

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On September 21, 2021, the High Court of South Africa ruled that the Mining Charter 2018 is not binding subordinate legislation but an

instrument of policy. This ruling affirmed that the Minister of Mineral Resources and Energy (“MRE Minister”) was not entitled to make

law through the Mining Charter 2018 to require 30% HDP ownership for the renewal of existing mining rights. The MRE Minister

confirmed that they will not appeal theruling.

DRDGOLD cannot guarantee that it will meet all the targets set out by the Mining Charter 2018. For example, if the Mining Charter

2018 were to remain in its current form, there is no assurance that the goods, services and supplies in South Africa would be sufficient

to allow us to meet the targets. More specifically, DRDGOLD may not be able to meet the requirement that 80% of total mining goods

and services procurement spend be on South African-manufactured goods due to an insufficient number of suppliers in South Africa

with heavy equipment. DRDGOLD may be required to increase participation by HDP in senior positions and allocate additional

resources for the development of the mine community, human resources, sustainability, procurement and enterprise. DRDGOLD may

also be required to make further adjustment to the ownership structure of its South African mining assets, including increasing the

ownership of HDP, in order to meet the Mining Charter 2018 requirements. Any such additional measures could have a material

adverse effect on our business, operating results and/or financial condition.

In addition, if we are unable to obtain sufficient representation of HDP at the Board level and in management positions or if there are

not sufficient succession plans in place, this could have a material adverse effect on our business (including resulting in the imposition

of fines and having a negative effect on production levels), operating results and financial position. In relation to this, the mining

industry, including DRDGOLD, continues to experience a global shortage of qualified senior management and technically skilled

employees. We may be unable to hire or retain appropriate senior management, technically skilled employees or other management

personnel, or may have to pay higher levels of remuneration than we currently intend in order to do so. See “—If we are unable to

attract and retain key personnel, our business could be adversely affected.”

Also, there is no guarantee that any steps DRDGOLD has already taken or might take in the future will ensure the retention of its

existing mining rights, the successful renewal of its existing mining rights, the granting of applications for new mining rights or that the

terms of renewals of its mining rights would not be significantly less favorable than the terms of its current mining rights in terms of the

current legal dispensation, or any changes that are made to it. Any further adjustment to the ownership structure of DRDGOLD’s South

African mining assets in order to meet the above mentioned requirements could have a material adverse effect on the value of

DRDGOLD’s securities. For further detail, see "Item 4B. Business Overview – Governmental regulations and their effect on our

business – The Broad Based Socio-Economic Empowerment Charter."

Government policies in South Africa may adversely impact our operations and profits related to financial provisioning for

rehabilitation.

Revised Financial Provisioning Regulations (“FPR”) were published on November 20, 2015, under the National Environmental

Management Act, 107 of 1998 (“NEMA”) and became effective from the date of publication thereof. Proposed amendments to the

FPRs were published for public comment GNR 1228 GG 41236 of November 10, 2017 (“Draft Regulations”), which seek to address

some challenges relating to the implementation thereof. Under these FRPs to be implemented by the DMPR, existing environmental

rehabilitation trust funds may only be used for post closure activities and may no longer be utilized for their intended purpose of

concurrent and final rehabilitation and closure.

Several further proposed amendments to the FPRs, (“Proposed Amendments”) were subsequently published. On February 1, 2024,

the Minister of Forestry, Fisheries and the Environment again amended the transitional period contained in regulation 17B of the FPRs,

2015. The transitional arrangements in regulation 17B of the FPRs allows the holder of a right or permit granted or issued, as the case

may be, in accordance with the MPRDA, who applied for such right or permit before November 20, 2015, to continue making financial

provision in accordance with regulations 53 and 54 of the regulations published under the MPRDA. Stated differently, a person who

applied for a right or permit prior to November 20, 2015, is not yet required to comply with the FPRs. In the previous amendments to

regulation 17B of the FPRs, the Minister always specified a date by when the transitional period would expire and when all holders

would be required to comply with the FPR. However, the Minister has amended regulation 17B to provide that the transitional period

will continue to apply until the Minister publishes a date by when all holders are required to comply with the FPRs.

The Proposed Amendments, in their current form and which are still subject to the approval of the DMPR and Treasury, allow under

certain circumstances for the withdrawal against financial provision (which is currently not contemplated in the FPR). It is therefore

uncertain whether these provisions relating to withdrawal will remain in their current form, or at all. For further detail, see “Item 4.B.

Business Overview—Governmental regulations and their effect on our business—Financial Provision for Rehabilitation.”

South Africa’s carbon tax regime and ongoing increases in the applicable carbon tax rate could have a direct or indirect

The Carbon Tax Act (No 15 of 2019) has been in effect in South Africa since June 1, 2019. The Act is based on the polluter-pays

principle and is being implemented in phases. The initial plan scheduled the first phase to run from June 1, 2019 to December 31,

2022; however, this period was extended to December 31, 2025. The first phase does not have a material financial impact on the

Group; however, the carbon tax rate has increased by 58% since 2019. For the 2026 tax period, the carbon tax rate will increase from

R236/tCO 2 e to R308/tCO 2 e.

The maximum allowances that companies in the gold mining and refining industry can claim are 85%, which includes the 60% basic

tax-free allowance, 10% for the trade exposure allowance, 5% for the voluntary carbon budget allowance, and 10% for the carbon

offset allowance. During this first phase, the Group has been eligible to claim 60% for the basic tax-free allowance and 10% for the

trade exposure allowance, bringing the total claimed tax-free allowances to 70%.

Phase 2 of the carbon tax began January 2026, with key changes made to the carbon tax regime. For instance, the voluntary carbon

budget allowance of 5% fell away, and mandatory carbon budgets, once the regulations are finalized, will be allocated to companies

that exceed 30,000tCO 2 e per annum for listed activities. The carbon tax rate for emissions exceeding the carbon budget has been set

at R640/tCO 2 e. However, this change will not affect the Group, since the Group does not currently emit emissions above the

30,000tCO 2 e threshold for mandatory carbon budgets.

DRDGOLD Limited Form 20-F 2026

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Another key change for Phase 2 is the increase of the carbon offset allowance from 5% to 10% for most fugitive and process

emissions, and an increase to 15% for fuel combustion emissions. As it stands, Phase 2 continues to focus on scope 1 emissions,

with the National Treasury continuing its commitment to electricity price neutrality until December 31, 2030, to shield consumers from

higher electricity costs. However, it remains unclear whether scope 2 emissions will be included in the future, beyond 2030.

While Phase 2 carbon tax changes are not expected to significantly affect the Group, ongoing increases in the carbon tax rate could

materially impact our business and financial results, particularly if supplier costs rise due to their own carbon tax obligations.

Ring-fencing of unredeemed capital expenditure for South African mining tax purposes could have an adverse effect on the

The Income Tax Act No 58 of 1962, or the ITA, contains certain ring-fencing provisions in section 36 specifically relating to different

mines regarding the deduction of certain capital expenditure and the carry over to subsequent years. After the restructuring of the

surface operations, effective July 1, 2012, Ergo is treated as one taxpaying operation pursuant to the relevant ring-fencing legislation.

FWGR is also treated as one taxpaying operation pursuant to the relevant ring-fencing legislation. In the event that we are

unsuccessful in confirming our position or should the South African Revenue Service have a different interpretation of section 36 of the

ITA, it could have an adverse effect on our business, operating results and financial condition.

Assessment of unredeemed capital expenditure by the South African Revenue Service could have an adverse effect on the

The South African Revenue Service (“SARS”) assesses capital expenditure when it is redeemed against taxable mining income

rather than when it is incurred. A different interpretation by SARS could have an adverse effect on our business, operating results and

Regulatory uncertainty regarding the tax treatment of Ergo's capital expenditure on the battery energy storage system could

have an adverse effect on the taxation liability of Ergo.

In the 2023 budget review, the National Treasury announced a tax incentive to accelerate private investment in renewable energy to

alleviate load shedding. The allowance is available for assets used in the generation of power. The Ergo BESS system has been

designed to store excess energy from the solar PV plant as opposed to actual power generation. However, regulatory uncertainty

exists regarding whether storage assets constitute “generation” assets for purposes of these incentives. There is no formal judicial or

administrative guidance confirming that BESS qualify for the accelerated tax incentive. While SARS has issued some rulings

concerning BESS that indicate a potentially favorable direction, these rulings do not directly address the same factual circumstances

as Ergo BESS. SARS has advised that their policy is to regard any assets forming part of an “integrated system” to generate power

from renewable sources as power generation assets. Ergo’s BESS is fully integrated into the solar PV plant as it is charged by the

solar PV plant and discharges this stored power to the Ergo operation. Consistent with external tax advice received, Ergo has treated

the PV assets and the integrated BESS as qualifying electricity‑generation assets for purposes of the available allowances. However,

there remains a risk that SARS could challenge this position and issue an adverse determination, which could result in the

disallowance of claimed tax benefits and potential penalties and interest charges and therefore have an adverse effect on the taxation

liability of Ergo.

Labor disputes and changes in South African labor legislation could adversely affect our operations, operating results and

Labor costs are significant for Ergo, constituting 16% of Ergo’s production costs for fiscal year 2026 (2025:17%). As of June 30, 2026,

our Ergo operations provided full-time employment for 635 employees while our main service providers deployed an additional 2,230

employees to our operations, of whom approximately 87% are members of trade unions or employee associations.

Labor costs are significant for FWGR, constituting 17% of FWGR’s production costs for fiscal year 2026 (2025:18%). As of June 30,

2026, our FWGR operations provided full-time employment for 189 employees while our main service providers deployed an

additional 877 employees to our operations, of whom approximately 83% are members of trade unions or employee associations.

We have entered into various agreements regulating wages and working conditions at our operations. A four-year wage agreement

was reached with organized labor at FWGR in November 2024, and a five-year wage agreement was reached with organized labor at

Ergo in February 2026. Unreasonable wage demands could increase production costs to levels where our operations are no longer

profitable. This could lead to earlier than planned closure of operations and labor disruptions. We are also susceptible to strikes by

workers from time to time, which may result in disruptions to our operations. See “—Labor unrest at or adjacent to our operations, or

involving third-party service providers, could disrupt our operations and adversely affect our business.”

In recent years, labor laws in South Africa have changed in ways that significantly affect our operations. In particular, laws that provide

for mandatory compensation in the event of termination of employment for operational reasons. In addition, laws imposing large

monetary penalties for non-compliance with the administrative and reporting requirements of employment equity and affirmative action

policies may result in further material costs. Future South African legislation and regulations relating to labor may further increase our

costs or alter the terms and conditions of employment of our workforce. Labor cost increases could have an adverse effect on our

Labor unrest at or adjacent to our operations, or involving third-party service providers, could disrupt our operations and

adversely affect our business.

Strike action at our operations could disrupt production, affect the execution of operational and growth projects, and increase costs.

For example, during wage negotiations at Ergo in late 2025, the National Union of Mineworkers ("NUM") and the Association of

Mineworkers and Construction Union ("AMCU") issued notice of intended protected strike action relating to unresolved wage and

profit-sharing negotiations. Although the planned strike action was subsequently suspended and operations continued uninterrupted,

the matter illustrates the potential for labor disputes to arise during collective bargaining processes. Any future labor unrest or

industrial action at our operations could result in operational disruptions, reduced productivity, project delays and increased costs,

which may adversely affect our business, operating results and financial condition.

DRDGOLD Limited Form 20-F 2026

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We may also be adversely affected by labor disputes or other significant disruptions involving third-party service providers, which

could impact the operation of our facilities. For example, we use a third party service provider for the management of our reclamation

sites as well as on our Brakpan TSF and Driefontein 4 TSF. Any labor unrest or other significant issue at this third-party service

provider may impact the operation of these facilities. Furthermore, there has been an increase in employees and third-party service

providers at FWGR as a result of the Phase 2 expansion project, which is currently fully underway. Any labor unrest or other significant

issue involving employees or third-party service providers may delay or disrupt execution of the project in a timely manner and within

budget, which could adversely affect our business, operating results and financial condition.

Our financial flexibility could be materially constrained by South African currency restrictions.

South African law provides for exchange control regulations, which, among other things, restrict the export of capital from South

Africa, the Republic of Namibia, and the Kingdoms of Lesotho and Eswatini, known collectively as the Common Monetary Area

(the“CMA”). The Financial Surveillance Department of the South African Reserve Bank ("SARB"), is responsible for the

administration of exchange control regulations. In particular, South African resident companies (from an exchange control

perspective, being companies incorporated or formed in South Africa or alternatively being listed on a South African exchange):

•are generally not permitted to export capital from South Africa or to hold foreign currency without the approval of the SARB or in

certain cases approval by a recognized Authorised Dealer (being certain commercial banks in South Africa to whom authority has

been granted under the Currency and Exchanges Manual for Authorised Dealer);

•are generally required to repatriate, to South Africa, profits of foreign operations; and

•are limited in their ability to utilize profits of one foreign business to finance operations of a different foreign business, unless in

exceptional circumstances prior approval from the SARB or where relevant the Authorised Dealer is obtained.

While the South African Government has relaxed exchange controls in recent years, South African companies remain subject to

restrictions on their ability to deploy capital outside of the CMA and it is difficult to predict whether such relaxation of controls will

continue in the future. Exchange control requirements however are dependent on the specific transaction and are not unique to

DRDGOLD, as they apply to all South African residents of the CMA. As a result, DRDGOLD’s ability to raise and deploy capital

outside the CMA is restricted. These restrictions could hinder DRDGOLD’s financial and strategic flexibility, particularly its ability to

fund acquisitions, capital expenditures and exploration projects outside South Africa. For further information see"Item 10D. Exchange

Controls".

We could be adversely affected by violations of the U.S. Foreign Corrupt Practices Act and similar anti-bribery laws outside of

the United States.

The U.S. Foreign Corrupt Practices Act ("FCPA"), and similar anti-bribery laws in other jurisdictions generally prohibit companies and

their intermediaries from making improper payments to government officials or other persons for the purpose of obtaining or retaining

business. This includes aggressive investigations and enforcement proceedings by both the U.S. Department of Justice and the SEC,

increased enforcement activity by non- U.S. regulators, and increases in criminal and civil proceedings brought against companies

and individuals. Our policies mandate compliance with the FCPA and other applicable anti-bribery laws. Our internal control policies

and procedures may not protect us from reckless or criminal acts committed by our employees, the employees of any of our

businesses, or third party intermediaries. In the event that we believe or have reason to believe that our employees or agents have or

may have violated applicable anti-corruption laws, including the FCPA, we would investigate or have outside counsel investigate the

relevant facts and circumstances, which can be expensive and require significant time and attention from senior management.

Violations of these laws may result in criminal or civil sanctions, inability to do business with existing or future business partners (either

as a result of express prohibitions or to avoid the appearance of impropriety), injunctions against future conduct, profit disgorgements,

disqualifications from directly or indirectly engaging in certain types of businesses, the loss of business permits, reputational harm or

other restrictions which could disrupt our business and have a material adverse effect on our business, financial condition, operating

results or liquidity.

We face risks with respect to compliance with the FCPA and similar anti-bribery laws through our acquisition of new companies and

the due diligence we perform in connection with an acquisition may not be sufficient to enable us fully to assess an acquired

company’s historic compliance with applicable regulations. Furthermore, as we make acquisitions our post-acquisition integration

efforts may not be adequate to ensure our system of internal controls and procedures are fully adopted and adhered to by acquired

entities, resulting in increased risks of non-compliance with applicable anti-bribery laws.

Risks related to ownership of our ordinary shares or ADSs

It may not be possible for you to effect service of legal process, enforce judgments of courts outside of South Africa or bring

actions based on securities laws of jurisdictions other than South Africa against us or against members of our Board.

Our Company, certain members of our Board of directors and executive officers are residents of South Africa. All our assets are

located outside the United States and a major portion with respect to the assets of members of our Board of directors and executive

officers are either wholly or substantially located outside the United States. As a result, it may not be possible for you to effect service

of legal process, within the United States or elsewhere including in South Africa, upon most of our directors or officers, including

matters arising under United States federal securities laws or applicable United States state securities laws.

Moreover, it may not be possible for you to enforce against us or the members of our Board of directors and executive officers’

judgments obtained in courts outside South Africa, including the United States, based on the civil liability provisions of the securities

laws of those countries, including those of the United States. A foreign judgment is not directly enforceable in South Africa, but

constitutes a cause of action which will be enforced by South African courts provided that:

•the court which pronounced the judgment had jurisdiction to entertain the case according to the principles recognized by South

African law with reference to the jurisdiction of foreign courts;

•the judgment is final and conclusive (that is, it cannot be altered by the court which pronounced it);

•the judgment has not lapsed;

•the recognition and enforcement of the judgment by South African courts would not be contrary to public policy, including

observance of the rules of natural justice which require that no award is enforceable unless the defendant was duly served with

documents initiating proceedings, that he was given a fair opportunity to be heard and that he enjoyed the right to be legally

represented in a free and fair trial before an impartial tribunal;

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•the judgment was not obtained by fraudulent means;

•the judgment does not involve the enforcement of a penal or revenue law; and

•the enforcement of the judgment is not otherwise precluded by the provisions of the Protection of Business Act, 1978 (as amended),

of South Africa.

It is the policy of South African courts to award compensation for the loss or damage sustained by the person to whom the

compensation is awarded. Although the award of punitive damages is generally unknown to the South African legal system that does

not mean that such awards are necessarily contrary to public policy. Whether a judgment was contrary to public policy depends on

the facts of each case. Exorbitant, unconscionable, or excessive awards will generally be contrary to public policy. South African

courts cannot enter into the merits of a foreign judgment and cannot act as a court of appeal or review over the foreign court. South

African courts will usually implement their own procedural laws and, where an action based on an international contract is brought

before a South African court, the capacity of the parties to the contract will usually be determined in accordance with South African

law.

It is doubtful whether an original action based on United States federal securities laws may be brought before South African courts. A

plaintiff who is not resident in South Africa may be required to provide security for costs in the event of proceedings being initiated in

South Africa. Furthermore, the Rules of the High Court of South Africa require that documents executed outside South Africa must be

authenticated for use in South African courts. It may not be possible therefore for an investor to seek to impose liability on us in a South

African court arising from a violation of United States federal securities laws.

Dividend withholding tax will reduce the amount of dividends received by beneficial owners.

The current dividend withholding tax rate is 20% effective from February 22, 2017. The withholding tax reduces the amount of

dividends or other distributions received by our shareholders. Any further increases in such tax will further reduce net dividends

received by our shareholders.

Your rights as a shareholder are governed by South African law, which differs in material respects from the rights of

shareholders under the laws of other jurisdictions.

Our Company is a public limited liability company incorporated under the laws of the Republic of South Africa. The rights of holders of

our ordinary shares, and therefore many of the rights of our ADS holders, are governed by our memorandum of incorporation and by

South African law. These rights differ in material respects from the rights of shareholders in companies incorporated elsewhere, such

as in the United States. In particular, South African law significantly limits the circumstances under which shareholders of South

African companies may institute litigation on behalf of a company.

Control by principal shareholders could adversely affect our other shareholders.

Sibanye-Stillwater beneficially owns 50.1% of our outstanding ordinary shares and voting power and has the ability to control, our

Board of directors. Sibanye-Stillwater will continue to have control over our affairs for the foreseeable future, including with respect to

the election of directors, the consummation of significant corporate transactions, such as a merger or other sale of our company or our

assets, and all matters requiring shareholder approval. In certain circumstances, Sibanye-Stillwater’s interests as a principal

shareholder may conflict with the interests of our other shareholders and Sibanye-Stillwater’s ability to exercise control, or exert

significant influence, over us may have the effect of causing, delaying, or preventing changes or transactions that our other

shareholders may or may not deem to be in their best interests. In addition, any sale or expectation of sale of some or all the shares

held by Sibanye-Stillwater could have an adverse impact on our share price.

Sales of large volumes of our ordinary shares or ADSs or the perception that these sales may occur, could adversely affect

the prevailing market price of such securities.

The market price of our ordinary shares or ADSs could fall if substantial amounts of ordinary shares or ADSs are sold by our

stockholders, or there is the perception in the marketplace that such sales could occur. Current holders of our ordinary shares or

ADSs may decide to sell them at any time. Sales of our ordinary shares or ADSs, if substantial, or the perception that any such

substantial sales may occur, could exert downward pressure on the prevailing market prices for our ordinary shares or ADSs, causing

their market prices to decline. Trading activity of hedge funds and the ability to borrow script in the marketplace will increase trading

volumes and may place our share price under pressure.

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