Update on smelter operations

Further to the announcement issued by Northam on Friday, 11 May 2012 advising of a smelter run-out at its Zondereinde mine, and following an assessment of the associated damage to the smelter, Northam management has advised that it is implementing plans to rebuild the smelter as soon as is practicably possible.

The rebuild, originally scheduled for the next financial year, could take up to four months to complete. Northam is currently in discussions to secure alternative smelting services in order to contain the impact on the company.

Commensurate with the lower sales volumes, revenues for the financial year ending 30 June 2012 are likely to be some R300 million lower than anticipated owing to the interruption to metals processing in the last two months of the year. These revenues should be realised in the next financial year when the metal will be sold.

Mining and concentrating activities are continuing at the Zondereinde mine.

15 May 2012

One Capital