MERAFE RESOURCES LIMITED - Production announcement for the year ended 31 December 2013

Production announcement for the year ended 31 December 2013

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”)


Production announcement for the year ended 31 December 2013

1. Record production and sales volumes
Merafe’s attributable ferrochrome production from the Glencore-Merafe Chrome Venture
(the Venture) was 32% higher year on year. This increase was as a result of higher demand,
resulting in operating utilisation of 87% of the Venture’s smelting capacity. Ferrochrome
sales volumes for 2013 increased by 23% year on year.

                                                      Year Ended         Year Ended
                                                      31-Dec-13          31-Dec-12
  Attributable ferrochrome production (kt)            319                242
  Attributable ferrochrome sales (kt)                 314                255
  Indicative average published ferrochrome price
  (Usc/lb) (Metal Bulletin)                           116                121
  Average Rand/Dollar Exchange Rate                   9.6                8.2

2. Employee relations
Wage negotiations relating to all the smelters and mines were concluded and implemented
during 2013.

Currently, the Venture is not significantly impacted by the strikes in the platinum industry
and at this stage, has adequate chrome ore supply.

3. Safety
The Venture’s total recordable injury frequency rate (TRIFR) improved from 4.05 in 2012 to
3.84 in 2013. The Lion II Project contributed to this improvement with more than 7 million
man hours worked, without any lost time injury.

4. Update on Project Lion II
Hot commissioning of the Venture’s Lion II smelter commenced in the last quarter of 2013
and will continue during the first half of 2014. First production has been slightly delayed
mainly due to limited availability of contractors over the December holiday period as well as
heavy rainfall and windy conditions in the last quarter of 2013. The overall project however
remains within schedule and on budget and it is envisaged that the smelter will be fully
operational toward the middle of 2014.

31 January 2014
Sandton

Sponsor
Merrill Lynch South Africa Proprietary Limited

Kajal Bissessor
Finance and Investor Relations Manager
Merafe Resources Limited
Ph: +2711 783 4780 / +27 83 784 6686

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