MRF - Merafe Resources Limited - Production report for the year ended 31

MRF - Merafe Resources Limited - Production report for the year ended 31        
December 2010                                                                   
MERAFE RESOURCES LIMITED                                                        
(Incorporated in the Republic of South Africa)                                  
(Registration number 1987/003452/06)                                            
Share code: MRF ISIN: ZAE000060000                                              
("Merafe")                                                                      
Production report for the year ended 31 December 2010                           
Ferrochrome production increased by 48% year on year in response to market      
recovery and improved demand, following the suspension of up to 80% of          
operational capacity in 2009.  The average operating capacity utilisation rate  
rose to 74% of installed capacity in 2010 compared to 50% in 2009, as the full  
impact of restarting previously suspended furnaces was offset by scheduled      
maintenance.                                                                    
Ferrochrome producers achieved a 46% increase in the average European benchmark 
ferrochrome price in 2010 compared to 2009, however, margins remained under     
pressure due to the continued strengthening of the South African Rand against   
the US Dollar. Lower stainless steel demand in the second half of 2010, resulted
in a decrease of 5USc per pound in the European benchmark ferrochrome price for 
the first quarter of 2011 to $1.25 per pound, closing the gap between the       
contractual and spot prices that existed throughout 2010.                       
Ferrochrome production attributable to Merafe for 2010 was as follows:          
                                                 Year      Year                 
ended     ended                

                                                 31.12.10  31.12.09             
Ferrochrome production (kt)                       300       203                 
Indicative average published price                124.3     85.0                
(USc/lb-Metal Bulletin)                                                         
Sandton                                                                         
1 February 2011                                                                 
Sponsor                                                                         
Deutsche Securities SA (Pty) Ltd                                                
Date: 01/02/2011 08:00:03 Supplied by www.sharenet.co.za                     
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