NORTHAM PLATINUM LIMITED - Northam acquires the Eland Platinum mine and concludes a chrome marketing agreement - NHM/NHM002/NHM003

Northam acquires the Eland Platinum mine and concludes a chrome marketing agreement -  NHM/NHM002/NHM003

NORTHAM PLATINUM LIMITED
Incorporated in the Republic of South Africa
(Registration number 1977/003282/06)
Share code: NHM ISIN: ZAE000030912
Debt issuer code: NHMI
Bond code: NHM002       Bond ISIN: ZAG000129024
Bond code: NHM003       Bond ISIN: ZAG000129032
(“Northam”)

NORTHAM ACQUIRES THE ELAND PLATINUM MINE AND CONCLUDES A CHROME MARKETING AGREEMENT

 1.   INTRODUCTION

      Northam is pleased to announce that it has entered into the following agreements:
      -  an agreement with Glencore Operations South Africa (Pty) Ltd (“GOSA”) to purchase the
         Eland Platinum mine (“Eland” or the “mine”) for a cash consideration of R175 million (“Eland
         transaction”); and
      -  a long-term chrome marketing agreement with Glencore International AG (“Glencore”) to
         exclusively market and sell chrome produced at Northam’s Zondereinde and Booysendal
         operations.

      More on Eland
      Eland is located on the south-eastern limit of the western limb of the Bushveld Igneous Complex. It
      comprises two mining rights and contains a resource estimated at 21.3 Moz 4E with an average in
      situ 4E grade of 4.4 g/t (source: Glencore resource and reserve statement 2016).

      The mine was placed on care and maintenance in September 2015. In terms of the Eland
      transaction and for a purchase price of R175 million in cash, Northam will acquire all Eland’s
      assets, including:
      -  Eland’s two mining rights;
      -  surface and underground infrastructure including a concentrator with a nameplate capacity of
         250ktpm; a chrome spiral recovery plant; a tailings storage facility with a capacity of 100
         million tonnes; two decline systems equipped to 1.3km; and surface support infrastructure
         designed for a 250ktpm operation;
      -  immovable property; and
      -  a mining fleet in excess of 100 vehicles which includes low profile mechanised mining
         equipment.

     The transaction includes the takeover of Eland’s environmental obligations and responsibilities.
     The purchase consideration will be payable on the fulfilment of all the conditions precedent.
     Northam will be granted access to Eland from the signature date of the agreement to the fulfilment
     of the conditions precedent in order to facilitate a smooth transfer of ownership. Northam will
     reimburse GOSA for care and maintenance costs, amounting to approximately R30 million per
     annum, during this period.

     Commenting on the transaction today, Northam chief executive Paul Dunne said, “the Eland
     transaction provides Northam with a medium-term option over a large, shallow resource with fully
     developed, world-class surface infrastructure. Northam will also be acquiring a sizeable mining
     fleet, a portion of which will be utilised at the Booysendal South operation.

     The chrome marketing agreement establishes a long-term relationship between Northam and
     Glencore, a leading global chrome trader, which will contribute to maximising Northam’s chrome
     revenue.”

2.   CONDITIONS PRECEDENT

     The Eland transaction is subject to, inter alia, the following conditions precedent:
     -   consent being granted by the Minister of Mineral Resources in terms of section 11 of the
         Mineral and Petroleum Resources Development Act, No. 28 of 2002;
     -   Northam entering into a chrome offtake agreement with GOSA or its affiliates in respect of all
         chrome produced at Eland; and
     -   cancellation of certain existing contractual arrangements between Eland and certain third
         parties, subject to Northam’s satisfaction.

3.   CATEGORISATION

     The Eland transaction falls below the threshold for categorisation in terms of the JSE Limited
     Listings Requirements and this announcement is provided for information purposes only.


Johannesburg
24 February 2017

Corporate Advisor, Sponsor and Debt Sponsor: One Capital

Attorneys: Cliffe Dekker Hofmeyr Inc.

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