PAM - Palabora - Wage Agreements entered into with the National Union of

PAM - Palabora - Wage Agreements entered into with the National Union of        
Mineworkers ("NUM") and Solidarity                                              
PALABORA MINING COMPANY LIMITED                                                 
(Incorporated in the Republic of South Africa)                                  
(Registration number 1956/002134/06)                                            
ISIN: ZAE000005245                                                              
JSE code: PAM                                                                   
("Palabora" or "the Company")                                                   
WAGE AGREEMENTS ENTERED INTO WITH THE NATIONAL UNION OF MINEWORKERS ("NUM") AND 
SOLIDARITY                                                                      
Palabora  is pleased to inform  shareholders that the Company has successfully  
concluded a three year wage agreement ("the agreements") with both of the       
recognised trade unions in South Africa, namely Solidarity and NUM to promote   
and advance the interests of its mineworkers. This milestone was achieved       
through joint active engagement between the trade unions and Palabora and is the
result of a constructive engagement by the parties.                             
The key highlights of the agreements include the following:                     
-    The wage increase for 2011/12 is 8.5%;                                     
-    The implementation date of the agreements is 1 March 2011; and             
-    The 2012/13 and 2013/14 wage increases will be reliant on the rate of      
    inflation, with a minimum of 8.5%.                                          
The term of the agreements will create operational stability for the employees  
and for the Company. This new wage agreement coupled with the executed and      
lodged Broad Based Black Economic Empowerment (BBBEE) agreements in July 2010   
continue the long history of partnership and alignment between the Palabora     
employees and the Company.                                                      
Phalaborwa                                                                      
25 March 2011                                                                   
Sponsor:                                                                        
Barnard Jacobs Mellet Corporate Finance (Pty) Limited                           
Date: 25/03/2011 10:30:01 Supplied by www.sharenet.co.za                     
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