KIO - Kumba Iron Ore Limited - Proceedings in relation to the Residual Sishen

KIO - Kumba Iron Ore Limited - Proceedings in relation to the Residual Sishen   
Mine mineral rights                                                             
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")                                                                       
PROCEEDINGS IN RELATION TO THE RESIDUAL SISHEN MINE MINERAL RIGHTS              
Shareholders were previously advised that, as a result of the failure by        
ArcelorMittal South Africa Limited ("Mittal") to convert its former old order   
mining right as to a 21.4% undivided share in the Sishen Mine, its old order    
mining right had lapsed.  Accordingly, Sishen Iron Ore Company (Proprietary)    
Limited ("SIOC"), which mines the Sishen Mine, applied for a mining right in    
relation to the 21.4% undivided rights in respect of the Sishen Mine.           
SIOC was informed, during February 2010, that the Department of Mineral         
Resources ("DMR") had granted a prospecting right on 30 November 2009 to        
Imperial Crown Trading 289 (Proprietary) Limited ("ICT") in relation to the     
residual undivided 21.4% of the Sishen Mine.                                    
Shareholders were advised on 24 May 2010 that SIOC had initiated a review       
application in the North Gauteng High Court on 21 May 2010 in relation to, inter
alia, the decision of the DMR to grant a prospecting right to ICT and the       
failure by the DMR to consider and grant SIOC`s application for a mining right  
("the review application").  Neither the DMR nor ICT has as yet filed their     
answering affidavits in the review application.                                 
In November 2010, in order to avoid further litigation against either the DMR or
ICT, SIOC requested ICT to provide SIOC with an undertaking that, pending the   
final determination of the review application, ICT would not apply for a mining 
right in respect of the Sishen Mine.  SIOC also requested the DMR to provide    
SIOC with an undertaking that, pending the final determination of the review    
application, the DMR would neither accept an application from ICT to be granted 
the residual undivided 21.4% mining right, nor grant such residual undivided    
21.4% mining right to ICT.                                                      
The DMR and ICT both declined to provide such undertakings and, accordingly,    
SIOC initiated an application on 14 December 2010 to interdict ICT from         
submitting an application for a mining right for a 21.4% undivided share, and to
interdict the DMR from either accepting such an application or granting such a  
mining right to ICT.                                                            
Following numerous enquiries to the DMR, SIOC was informed by the DMR on 12     
January 2011 that ICT had applied for a mining right on 9 December 2010.  The   
DMR also stated that it had accepted ICT`s application for a mining right in    
terms of the provisions of the Minerals and Petroleum Resources Development Act,
2002 ("the MPRDA") on 23 December 2010.                                         
The acceptance of the ICT application by the DMR does not result in ICT         
acquiring any mining rights at the Sishen mine but rather commences the process 
for the DMR to consider the ICT application. Before any mining right can be     
granted, the detailed processes stipulated in the MPRDA must be complied with by
ICT as well as the DMR.                                                         
SIOC does not believe that it was lawful for the DMR to have accepted ICT`s     
application for a mining right.  The company will object to the acceptance of   
the ICT application, and will further commence a process to appeal the decision 
by the DMR to have accepted the ICT mining right application.  In addition, SIOC
does not believe that there is any legal basis for the DMR to grant the ICT     
application in due course.  SIOC will continue to take the necessary steps to   
protect its shareholders` interests in this regard.                             
14 January 2011                                                                 
Pretoria                                                                        
Sponsor                                                                         
RAND MERCHANT BANK (A division of FirstRand Bank Limited)                       
Date: 14/01/2011 15:48:01 Supplied by www.sharenet.co.za                     
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