KIO - Kumba Iron Ore Limited - Sishen supply agreement

KIO - Kumba Iron Ore Limited - Sishen supply agreement                          
Kumba Iron Ore Limited                                                          
A member of the Anglo American plc group                                        
Incorporated in the Republic of South Africa)                                   
Registration number 2005/015852/06)                                             
JSE Share code: KIO                                                             
ISIN: ZAE000085346                                                              
("Kumba")                                                                       
SISHEN SUPPLY AGREEMENT                                                         
On 29 April 2010 ArcelorMittal South Africa Limited ("ArcelorMittal") released a
SENS announcement that contained the following statement:                       
"SIOC has further advised that it will continue to invoice ArcelorMittal South  
Africa on a cost plus 3% basis until the dispute has been resolved, but will    
seek to hold ArcelorMittal South Africa liable for the difference between a     
price derived from an export parity principle and the contractual cost plus 3%  
price, in the event SIOC prevails in the arbitration."                          
That statement is incorrect. The true position is as described in Kumba`s SENS  
announcement of 19 April 2010, namely that SIOC requires ArcelorMittal to accept
its interim proposal that ArcelorMittal pay the contractual price (cost plus 3%)
to SIOC and the difference between that price and the interim price proposed by 
SIOC into escrow or provide a suitable guarantee for its payment in the event of
SIOC being successful in the arbitration.                                       
ArcelorMittal has thus far declined to accept that proposal or make a firm      
counter-proposal regarding an interim price or payment mechanism.               
SIOC has never advised ArcelorMittal that it will be content to recover the     
difference between the two prices from ArcelorMittal in the event of it         
succeeding in the arbitration. On the contrary, SIOC has advised ArcelorMittal  
that should the parties not come to a firm agreement on an interim pricing      
mechanism in the near future, SIOC will review the basis upon which it will     
continue to supply iron ore to ArcelorMittal.                                   
For further information please contact:                                         
Anne Dunn                                                                       
Tel.: +27 (0)11 502 7404 / +27 (0)82 448 2684                                   
4 May 2010                                                                      
Pretoria                                                                        
Sponsor                                                                         
RAND MERCHANT BANK (A division of FirstRand Bank Limited)                       
Date: 04/05/2010 15:15:02 Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department.                  
The SENS service is an information dissemination service administered by the    
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or            
implicitly, represent, warrant or in any way guarantee the truth, accuracy or   
completeness of the information published on SENS. The JSE, their officers,     
employees and agents accept no liability for (or in respect of) any direct,     
indirect, incidental or consequential loss or damage of any kind or nature,     
howsoever arising, from the use of SENS or the use of, or reliance on,          
information disseminated through SENS.