PETMIN LIMITED - Petmin signs off five-year Somkhele take-off agreement

Petmin signs off five-year Somkhele take-off agreement

PETMIN LIMITED
Incorporated in the Republic of South Africa
Registration Number 1972/001062/06
Share Code JSE: PET & ISIN: ZAE000076014
Share Code AIM: PTMN
("Petmin" or "the Company")


24 October 2012


PETMIN SIGNS OFF FIVE-YEAR SOMKHELE TAKE-OFF AGREEMENT


Petmin is pleased to announce it has entered into a five-year take-or-pay sale agreement for
300,000 tonnes per annum of production from the third wash plant under development at its
Somkhele anthracite mine in KwaZulu-Natal, South Africa.


The Somkhele mine produces metallurgical anthracite for domestic and export markets. Following
the commissioning of a second wash plant in March 2012, the mine has a production capacity of
1.2 million saleable tonnes of anthracite per annum.


A third wash plant is under construction for a cost of R62 million (£4.4* million) and is scheduled for
completion in January 2013. The third plant is designed to process discard arising from the two
existing anthracite wash plants and will have capacity to produce up to 500,000 tonnes of energy
product annually for the energy market.


“For no additional mining costs, the third Somkhele plant will enable Petmin to produce 500,000
tonnes of energy product,” said Petmin’s director of business development, Bradley Doig. “More
than half of that product has now been sold forward, prior to the plant being commissioned. In line
with our strategy, this provides Petmin with good visibility of earnings into the future.”


The third plant is expected to increase Somkhele’s overall plant yield from 42% to 50% and enables
greater operational flexibility at the mine. The third plant will be able to process 330 tonnes per hour
of discard from the two existing anthracite wash plants.


* Exchange rate applied: ZAR13.9061:£1
Enquiries:


Petmin
Bradley Doig
+27 11 706 1644


Media
Jonathon Rees
+27 76 185 1827


Sponsor and Corporate Advisor (JSE)
River Group
Andrew Lianos
+27 834 408 365


Nominated Adviser and Broker (AIM)
Macquarie Capital (Europe) Limited


Steve Baldwin
+44 20 3037 2362


Nicholas Harland
+44 20 3037 2369


River Group
Johannesburg


24 October 2012

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