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

MRF - Merafe Resources Limited - Production report for the year ended           
31 December 2011                                                                
Merafe Resources Limited                                                        
(Incorporated in the Republic of South Africa)                                  
(Registration number: 1987/003452/06)                                           
JSE share code: MRF                                                             
ISIN: ZAE000060000                                                              
("Company")                                                                     
Production report for the year ended 31 December 2011                           
Shareholders of the Company are advised that in the second half of 2011,        
scheduled maintenance during the high electricity tariff winter months and      
subsequent weaker market conditions, compounded by industrial action, resulted  
in reduced production at our ferrochrome smelters. Installed capacity           
utilisation reduced to an average of 65% for 2011 and production volumes were   
12% lower compared to 2010.                                                     
Ferrochrome production volumes were adversely affected by industrial action     
during the second half of the year, resulting in production facilities running  
at a reduced capacity for thirty eight days.                                    
The average European benchmark ferrochrome price for 2011 of $1.25 per pound    
remained at a similar level compared to 2010. Due to weaker demand for stainless
steel, the European benchmark ferrochrome price for the first quarter of 2012   
was settled at $1.15 per pound which was $0.05 per pound lower than the price in
the fourth quarter of 2011, as per the SENS announcement dated 21 December 2011.
Ferrochrome production attributable to Merafe for the year ended 31 December    
2011 was as follows:                                                            
                                                 Year ended 31  Year ended 31   
                                                 December 2011  December 2010   
Ferrochrome production (kt)                       263            300            
Indicative average published price (USc/lb -      125.0                  124.3  
Metal Bulletin)                                                                 
Sandton                                                                         
31 January 2012                                                                 
Sponsor                                                                         
Deutsche Securities (SA) (Proprietary) Limited                                  
Date: 31/01/2012 08:30:01 Supplied by www.sharenet.co.za                     
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