MRF - Merafe - First quarter 2011 production update and winter closures

MRF - Merafe - First quarter 2011 production update and winter closures         
Merafe Resources Limited                                                        
(Incorporated in the Republic of South Africa)                                  
(Registration number: 1987/003452/06)                                           
JSE share code: MRF                                                             
ISIN: ZAE000060000                                                              
("Merafe" or "the Company")                                                     
First quarter 2011 production update and winter closures                        
Shareholders of the Company are advised that Merafe`s attributable production of
ferrochrome for the first quarter of 2011 is 82 000 tonnes, equivalent to 91% of
operating capacity.                                                             
Ferrochrome producers achieved an 8% increase in the European benchmark price   
from $1.25 per pound in the first quarter of 2011 to $1.35 per pound for the    
second quarter of 2011, offset by the strong rand against the US dollar and     
overall cost pressures that are at levels well above inflation.                 
Various furnaces will undergo routine maintenance during the winter months of   
June 2011, July 2011 and August 2011. The Xstrata-Merafe Chrome Venture annually
chooses this period to conduct maintenance at its furnaces to mitigate the      
higher than average winter electricity supply tariffs. The Venture will operate 
on average at 65% of operating capacity during the winter months.               
                                          Q1 2011      Q1 2010                  
Ferrochrome                                                                     
Attributable production (kt)               82           79                      
Indicative average published price         125.0        101.0                   
(USc/lb) (Metal Bulletin)                                                       
Sandton                                                                         
4 May 2011                                                                      
Sponsor                                                                         
Deutsche Securities (SA) (Proprietary) Limited                                  
Date: 04/05/2011 08:30:01 Supplied by www.sharenet.co.za                     
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