Lonmin Plc - Return Of Capital To Shareholders And Redenomination Of Share

Capital
Lonmin Plc
Share code: LON
ISIN code: GB0002568144
20 December 2001

RETURN OF CAPITAL TO SHAREHOLDERS AND REDENOMINATION OF SHARE CAPITAL
On 29 November 2001, Lonmin announced its intention to return capital to
shareholders of some  251 million, equivalent to approximately US$356
million.  The proposed return to shareholders will be effected by way of a
capital reduction.

The Board has also decided to implement, at the same time as the capital
reduction, a redenomination of the share capital of Lonmin from Sterling
into US Dollars.  This is to reflect the fact that, whilst the Company will
continue to have its headquarters in London and be an English company, the
Group has a US Dollar based business, with US Dollar assets and US Dollar
income streams.  The currency of the share capital will also become

consistent with the currency in which the financial statements are already
prepared.  The nominal value of the new shares will be US$1.

The overall effect of the capital reduction and the redenomination ("the
Proposal") is that shareholders will receive 150p in cash for each existing
ordinary share and 21 new ordinary shares of US$1 each in exchange for every
25 existing ordinary shares of  1 each.  The Board expects that the

implementation of the return of capital will enhance earnings per share in
the current year.

After the implementation of the proposal, the new ordinary shares will
continue to be traded in Sterling on the London Stock Exchange and in Rand
on the JSE Securities Exchange South Africa.

With effect from the year ending 30 September 2002, the Directors will
declare and recommend dividends in US Dollars but intend to pay dividends in
Sterling to United Kingdom Shareholders (unless they elect to receive US
Dollar dividends) calculated at the Sterling/US Dollar exchange rate at the
dividend record date.  Shareholders on the South African register will
continue to receive dividends in Rand.  All other overseas shareholders will
be paid dividends in US Dollars (unless they elect to receive Sterling
dividends).

Lonmin is also proposing to amend the Lonmin Share Option Schemes.  The
Proposal will not materially affect existing share option holders, but if
the Proposal is approved in full, the options shall be in respect of the new
US Dollar denominated ordinary shares which shall be of a different nominal
value and currency than the existing ordinary shares.  Separate approval
will be sought from shareholders at the Extraordinary General Meeting.
Subject to the Proposal becoming effective, Lonmin will also need to renew
the previous authorities granted by shareholders to the Directors to

exercise the powers of the Company to allot new ordinary shares pursuant to
section 80 of the Act and to disapply statutory pre-emption rights under
section 89 of the Act. These authorities will need to be renewed following
the Proposal in order to express the limits of those authorities in US
Dollars and to take account of the reduced number of shares in issue.
Authority will also be sought at the Annual General Meeting to renew the
Company's existing authority to make market purchases of the Company's
ordinary shares and at the Extraordinary General Meeting to make market
purchases of the Company's ordinary shares by Lonmin after the Proposal has
been effected.

In order to implement the Proposal, the approval of shareholders and of the
Court will be required.  Full details of the Proposal, the proposed

amendments to the Lonmin Share Option Schemes and the renewal of authorities
are contained in two circulars which will be posted to shareholders today.
Shareholder approval will be sought at an Extraordinary General Meeting to
be held on Friday 25 January 2002 at 11:15 a.m. (London time) (or if later,
10 minutes after the Annual General Meeting of the Company to be held on the
same day is concluded or adjourned) at The Ball Room, The Park Lane Hotel,
Piccadilly, London W1.  Principal dates in the timetable to enable the
completion of the process are detailed below.
Timetable of Principal Events

Posting of circular to            Thursday, 20 December
shareholders                      2001

Latest time for receipt of Forms  Wednesday 23 January
of Proxy for EGM (1:15 p.m.
South African time)

Annual General Meeting (1:00      Friday, 25 January
p.m. South African time)

Extraordinary General Meeting     Friday, 25 January
(1:15 p.m. South African time)

Payment of final dividend for     Monday, 18 February
year ended 30 September 2001

Court hearing to confirm the      Wednesday, 20 February
Capital Reduction and the
Redenomination

Last day of dealings in Existing  Friday, 22 February
Ordinary Shares on the LSE

Last day to trade cum the return  Friday, 22 February
and consolidation on the JSE

Effective date for the Capital    Friday, 22 February
Reduction and the Redenomination

Record Date for Cash Entitlement  Friday, 22 February

Ex-date for SA Shareholders       Monday, 25 February

Trading in Existing Ordinary      Monday, 25 February
Shares suspended and termination
of listing on the JSE (9:00 a.m.
South African time)

New Ordinary Shares listed on     Monday, 25 February
the JSE and dealings commence
(9:00 a.m. South African time)

Dealings in the New Ordinary      Monday, 25 February
Shares commence on the London
Stock Exchange (8:00 a.m. UK
time)
South African record date (for    Friday, 1 March
settlement)
Adjustment to CSDPs and brokers   Monday, 4 March
credit shareholders accounts
(SA)

Despatch of certificates for New  by Monday, 4 March
Ordinary Shares (for
shareholders on the SA register)

Despatch of cheques in respect    by Monday, 4 March
of the return of capital (for
shareholders on the SA register)

No rematerialisation or dematerialisation will take place after 15 February
2002.
Enquiries
Lonmin- John Robinson, 09 44 20 7201 6000

Cazenove & Co. Ltd- Michael Wentworth-Stanley, 09 44 20 7588 2828
Cazenove South Africa- Gina Gibson, 011 280 7900
Cardew & Co.- Anthony Cardew, 09 44 20 7930 0777