NHM - Northam Platinum Limited - Announcement relating to the proposed sale of

NHM - Northam Platinum Limited - Announcement relating to the proposed sale of  
the Southern portion of the Booysendal mining right to Aquarius Platinum        
NORTHAM PLATINUM LIMITED                                                        
(Incorporated in the Republic of South Africa)                                  
(Registration Number: 1977/003282/06                                            
(ISIN: ZAE000030912)                                                            
(Share Code: NHM)                                                               
("Northam" or "the Company")                                                    
ANNOUNCEMENT RELATING TO THE PROPOSED SALE OF THE SOUTHERN PORTION OF THE       
BOOYSENDAL MINING RIGHT TO AQUARIUS PLATINUM (SOUTH AFRICA) (PROPRIETARY)       
LIMITED, A WHOLLY OWNED SUBSIDIARY OF AQUARIUS PLATINUM LIMITED FOR R1.2 BILLION
IN CASH ("THE TRANSACTION")                                                     
Northam is pleased to advise of significant progress in finalising funding      
arrangements to bring the Company`s Booysendal project into production by early 
2013.                                                                           
Northam and its wholly-owned subsidiaries Micawber 278 (Proprietary) Limited    
("Micawber") and Khumama Platinum (Proprietary) Limited ("Khumama") have        
concluded an agreement with Aquarius Platinum Limited ("AQP") and Aquarius      
Platinum (South Africa) (Proprietary) Limited ("AQPSA") to dispose of the       
mineral rights attached to the southern portion of Booysendal ("Booysendal      
South") to AQPSA for an amount of R1.2 billion, net of value added tax and tax  
charges arising from the disposal.                                              
The purchase price is payable within one business day after the abandonment by  
Micawber of such mining rights and their simultaneous inclusion in the Everest  
South mining right of AQPSA. The agreement is subject to the fulfillment of     
certain conditions, referred to below.                                          
The Transaction will permit Northam to realise value from Booysendal South much 
earlier than would otherwise have been the case.                                
The funds emanating from the Transaction will be applied to the development of  
the Booysendal North UG2 ("BYD North UG2") mine, which is currently under       
construction. The amount of R1.2 billion, plus cash of R650 million from the    
acquisition of Mvelaphanda Resources Limited, funds on hand and future earnings 
will contribute significantly to bringing the BYD North UG2 mine into production
as expeditiously as possible, thereby reducing the operating risk attaching to  
the Company`s single operating asset, while adding some 60% to current metal    
output.                                                                         
The Transaction is classified as a category 2 transaction in terms of the JSE   
Limited Listings Requirements.                                                  
In a separate agreement between Northam and AQPSA, provision is made for AQPSA  
to assist Northam with access to a suite of infrastructural services from       
AQPSA`s contiguous Everest property. This includes power, water, road access and
tailings disposal facilities. These services could potentially expedite the     
development of the second phase of Northam`s Booysendal expansion.              
The Booysendal mining right (including Booysendal South) comprises a 3PGE + Au  
resource estimated at 103 million ounces, made up as follows:-                  
                 Merensky reef     UG2 reef           Total                     
                 (Moz)             (Moz)              (Moz)                     
Measured          6.1               13.8               19.9                     
Indicated         9.7               12.8               22.5                     
Inferred          22.7              38.2               60.9                     
Total             38.5              64.8               103.3                    
Given the constraints associated with the availability of Eskom power, Northam  
plans to develop Booysendal on a phased, modular basis as illustrated on the    
sketch plan available on the Northam website (www.northam.co.za). This approach 
precludes Northam from accessing Booysendal South (which contains some 31.1Moz  
(3PGE)) by mining development from the north for some 30 years.                 
The Booysendal South resource comprises:                                        
                 Merensky reef     UG2 reef           Total                     
                 (Moz)             (Moz)              (Moz)                     
Measured          0.3               1.6                1.9                      
Indicated         1.7               5.8                7.5                      
Inferred          8.4               13.3               21.7                     
Total             10.4              20.7               31.1                     
The Booysendal South resource statement was compiled by Damian Smith BSc (Hons),
MSc, Pr.Sci.Nat. (400323/04), who has consented to the inclusion in this        
announcement of the above information prior to publication thereof.             
CONDITIONS PRECEDENT                                                            
The Transaction is subject, inter alia, to the following conditions precedent:  
-    Written consent by the Minister of Mineral Resources in terms, inter alia, 
    of Section 102 of the Mineral and Petroleum Resources Development Act 28 of 
    2002 to amend the Everest Mine Converted Mining Right to include Booysendal 
South and to amend the Booysendal Converted Mining Right to exclude it;     
-    Regulatory approvals including, inter alia approval of the South African   
    Competition Commission; and                                                 
-    A binding tax ruling from SARS, acceptable to the parties, confirming the  
tax consequences of the Transaction.                                        
The Transaction will become effective on the first business day after the       
fulfillment or waiver, as the case may be, of the last condition precedent to   
the Transaction.                                                                
PRO FORMA FINANCIAL EFFECTS AND CAUTIONARY ANNOUNCMENT                          
Shareholders are advised to exercise caution when dealing in the Company`s      
securities until such time as a further announcement containing the pro forma   
financial effects of the Transaction is published.                              
Johannesburg                                                                    
4 May 2011                                                                      
Attorneys                                                                       
Bowman Gilfillan Inc.                                                           
Sponsor                                                                         
One Capital                                                                     
Date: 04/05/2011 08:00:01 Supplied by www.sharenet.co.za                     
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