MERAFE RESOURCES LIMITED - Third quarter 2012 ferrochrome production announcement and Project Tswelopele update

Third quarter 2012 ferrochrome production announcement and Project Tswelopele update

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”)


Third quarter 2012 ferrochrome production announcement and Project
Tswelopele update

Shareholders of the Company are advised that Merafe’s attributable ferrochrome
production in the third quarter of 2012 was 5% lower than the 2011 comparative
period which was due to furnace refurbishment programmes being extended in
response to soft market conditions. Ferrochrome production volumes in the nine
months of 2012 were 15% lower than the 2011 comparative period mainly due to
power buy-back deals with Eskom, the South African electricity supplier, to counter
electricity shortages.

Ferrochrome producers settled the average European benchmark price for the third
quarter at $1.25 per pound, which was 7% lower than the second quarter price of
$1.35 per pound. Despite continued high mining inflation and increased standing
charges from idle capacity, a weakening South African Rand compared to the US
Dollar will offer some support to margins. As per the SENS announcement dated 4
October 2012, the fourth quarter European benchmark ferrochrome price was settled
at $1.10 per pound.

In early October 2012, the Tswelopele pelletising and sintering plant was
commissioned on schedule and on budget. The plant will reach full capacity of
approximately 600 000 tonnes of sintered pellets in early 2013.


                                                                   Nine          Nine
                                                                months to      months to
                                       Q3 2012       Q3 2011    30.09.2012    30.09.2011
 Attributable production (kt)             50.2         48.0          168.7         197.9
 Indicative average published
 ferrochrome price (USc/lb) (Metal
 Bulletin)                                 125          120           125           127

Sandton

17 October 2012

Sponsor
Merrill Lynch South Africa Proprietary Limited

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