Update on Palabora mine incident PALABORA MINING COMPANY LIMITED (Incorporated in the Republic of South Africa) Registration number – 1956/002134/06 JSE Code: PAM ISIN: ZAE000005245 (“Palabora” or “the Company”) Update on Palabora mine incident The past week presented a challenging and unforgettably sad time for both Palabora and the families attached to us, with one of the families losing their loved one in a sudden and unexpected underground incident. Palabora Managing Director, Mr Tony Lennox and a number of Palabora management and staff, as well as representatives of the Contractor for whom the deceased worked, attended the funeral on Sunday, 21 October 2012, to pay their respects and offer their condolences and to provide support. In this regard, we are happy to announce that the colleague who was rescued was released from hospital on 23 October 2012 and is recuperating at home. “I had the opportunity to visit him on Saturday at the hospital and he was in high spirits,” said Lennox. An investigation following the incident is well underway in accordance with legislative requirements and a report will be presented to the relevant authorities shortly. Palabora hereby advises its shareholders that the recommencement of production occurred on 20 October 2012. The stoppage provided an opportunity to review our safety efforts and a new safety strategy “Goal Zero” which had been work in progress for several months is being rolled out. Phalaborwa 25 October 2012 Sponsor One Capital Date: 25/10/2012 01:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.