NOTES (11-20) TO THE FINANCIAL STATEMENTS

   - for the purposes of the employee share option schemes 8 824 919 shares (2006 - 7 717 315 shares).
   - in terms of a shareholders' resolution 5 330 818 shares (2006 - 5 254 684 shares).

Details of the employee share incentive schemes are set out in notes 33 and 34.

As a result of the unbundling of Hulamin, the options granted to employees in terms of the original employee share option schemes which had not been exercised at the unbundling date were converted into two components, a Tongaat Hulett Limited component and a Hulamin Limited component. The obligation to settle these share schemes is in accordance with the following principles, which are in accordance with the Unbundling Agreement and in terms of the scheme rules. Tongaat Hulett is obliged to settle all benefits under these share schemes for its own employees only, using Tongaat Hulett shares. It will settle the outstanding share scheme instruments that arise after the award adjustments for its own employees, by purchasing Tongaat Hulett shares in the market, or issuing Tongaat Hulett shares. The benefit for the Hulamin component will be determined with reference to the Hulamin share price, and the Tongaat Hulett component with respect to the Tongaat Hulett share price, however, benefits arising from the Hulamin component will be settled using Tongaat Hulett shares. At 31 December 2007 employees have an option to subscribe for 1 315 150 shares at an average price of R31,98 per share in respect of the Tongaat Hulett component and the equivalent of approximately 161 000 shares in respect of the Hulamin component (2006 - 2 941 810 shares at R41,23 per share in The Tongaat-Hulett Group Limited).

The original share option schemes were replaced in 2005 with a new share incentive scheme comprising the Share Appreciation Right Scheme 2005, the Long Term Incentive Plan 2005 and the Deferred Bonus Plan 2005.

The primary intention of these new schemes is to settle awards through acquiring shares in the market and delivering them to the employee and consequently no dilution of equity is expected.

Short-term borrowings comprise call loans and bank overdrafts with various South African financial institutions at interest rates linked to the prime overdraft rate as well as short-term borrowings in Mozambique equivalent to R111 million (2006 - R50 million).

In terms of the company's articles of association the borrowing powers of Tongaat Hulett are limited to R4,4 billion.