Lonmin Plc - Feasibility Study to expand Metallurgical Capacity

Lonmin Plc - Feasibility Study to expand Metallurgical Capacity                 
Lonmin Plc                                                                      
(Incorporated in England and Wales)                                             
(Registered in the Republic of South Africa                                     
 under registration number                                                      
1969/000015/10)                                                                 
JSE code:LON                                                                    
Issuer Code:LOLMI & ISIN:GB0031192486                                           
("Lonmin")                                                                      
28 February 2006                                                                
Lonmin Plc                                                                      
Feasibility Study to expand Metallurgical Capacity                              
Lonmin is pleased to announce today, that it is commissioning a feasibility     
study to increase its smelting and refining capacity from its current forecast  
of 1.3 million ounces of Platinum per annum in 2010 (2.5 million ounces total   
PGMs) to between 1.75 and 2.0 million ounces of Platinum per annum (3.5 to 4    
million ounces total PGMs).  This has the potential to be an attractive         
brownfield expansion opportunity for Lonmin at a capital cost expected to be of 
the order of US$300-$350 per annual PGM ounce produced, approximately one third 
of the cost of new greenfield capacity.                                         
The additional metallurgical capacity would enable the further expansion of     
Lonmin"s mine development projects and also allow Lonmin to enter the attractive
custom smelting and refining market for PGM concentrates in South Africa.       
We currently estimate the capital cost for such an expansion would be between   
US$300 to $350 million.                                                         
The feasibility study will take approximately 12 months and cost around US$10   
million.                                                                        
Enquiries:                                                                      
Alex Shorland-Ball                           +44 (0) 207 201 6055               
Date: 28/02/2006 09:00:04 AM Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department