RBP - Royal Bafokeng Platinum Limited - Review of operating activities and

RBP - Royal Bafokeng Platinum Limited - Review of operating activities and      
capital expenditure in response to prevailing market conditions                 
ROYAL BAFOKENG PLATINUM LIMITED                                                 
(Incorporated in the Republic of South Africa)                                  
(Registration number 2008/015696/06)                                            
JSE share code: RBP ISIN: ZAE000149936                                          
("RBPlat" or the "Company")                                                     
REVIEW OF OPERATING ACTIVITIES AND CAPITAL EXPENDITURE IN RESPONSE TO           
PREVAILING MARKET CONDITIONS                                                    
Shareholders are advised that due to  prevailing difficult market               
conditions, characterized by the softening of  platinum group metal (PGMs)      
prices as a result of weaker demand for PGMs particularly from Europe, as       
well as local cost pressures, RBPlat, to preserve cash flows, has undertaken    
a strategic review of operating activities and capital expenditure              
commitments to identify opportunities of deferring expenditure in the short-    
to medium term on certain non-critical items without any material negative      
impact on the business ("Review").                                              
The Company is of the view that current market conditions are likely to         
prevail for the remainder of the year and going into 2013, and has therefore    
decided in this first phase of the Review to introduce the following cash       
preservation measures:                                                          
1.   Deferment of exploration drilling at BRPM and Styldrift II                 
    This includes drilling at Bafokeng Rasimone Platinum Mine`s ("BRPM")        
North shaft as part of the Phase III replacement project, which is          
    scheduled to be completed by August 2017, and drilling at the Styldrift     
    II project. This deferment will not impact on the completion of studies     
    for Styldrift II, with the pre-feasibility still scheduled for              
completion by the end of 2014. A total amount of R71.7 million planned      
    for the 2012 and 2013 financial years will be deferred.                     
2.   Deferment of construction of a chairlift at BRPM`s South shaft             
    An amount of R20.5 million has been spent on this project to date.          
Construction of the chairlift at North shaft will proceed as planned.       
    An amount of R90.7 million planned for the remainder of the 2012            
    financial year and the whole of 2013 is estimated to be deferred.           
3.   Deferment of BRPM concentrator upgrade                                     
Plans to upgrade the existing BRPM concentrator have been deferred. The     
    upgraded BRPM concentrator facility with a capacity increase from           
    200,000tpm to 230,000tpm was scheduled to come on-stream by the end of      
    2013.  The additional capacity would have enabled the treatment of ore      
comprising up to 30% UG2, from the current limit of 8% UG2. The             
    existing arrangement to treat ore comprising in excess of 8% UG2 at         
    Anglo Platinum`s Waterval concentrator remains in place. Approximately      
    R300 million of the amount planned to be spent during the 2012 and 2013     
financial years will be deferred.                                           
RBPlat will continue to review capital and other expenditure and to optimise    
operations while at the same time avoiding any material impact on production    
and the long-term sustainability of operations. The Company remains             
confident that long-term fundamental demand for PGMs remains in place,          
supporting its long-term growth objectives.                                     
Fourways, Johannesburg                                                          
21 June 2012                                                                    
JSE Sponsor                                                                     
Macquarie First South Capital (Pty) Limited                                     
For further enquiries, please contact:                                          
Lindiwe Montshiwagae                                                            
Investor Relations Manager                                                      
Tel: +27 (0)10 590 4517                                                         
Email: lindiwe@bafokengplatinum.co.za                                           
Date: 21/06/2012 15:30:02 Supplied by www.sharenet.co.za                     
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