PALABORA MINING COMPANY LIMITED - Update on broad-based black economic empowerment transaction ("BBBEE transaction")

Update on broad-based black economic empowerment transaction ("BBBEE transaction")

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 BROAD-BASED BLACK ECONOMIC EMPOWERMENT TRANSACTION ("BBBEE
TRANSACTION")

Shareholders of Palabora ("Shareholders") are referred to the announcement regarding the BBBEE
Transaction (the terms of which were approved by Shareholders in general meeting) published on the
Stock Exchange News Service on 15 June 2010, and the update in the Interim Report published on
7 August 2012 (preceded by prior update announcements dated 15 October 2010, 7 February 2011,
20 June 2011, 19 December 2011 and the announcement dated 23 March 2012 wherein Palabora
noted certain suspensive conditions which remained to be fulfilled).

Palabora continues to make significant progress towards the fulfilment of the outstanding suspensive
conditions and the implementation of the BBBEE Transaction.

Suspensive conditions
Palabora confirms fulfilment of the following key suspensive conditions:

    •   execution of seven converted mining rights. Palabora anticipates the execution of the final
        converted mining right to be achieved shortly;
    •   adoption or amendment of the constitutional documents of the BBBEE partners and
        Palabora Copper Proprietary Limited (Palabora Copper); and
    •   receipt of counterparty consents to the transfer of essential contracts from Palabora to
        Palabora Copper upon the implementation of the BBBEE Transaction.

A key suspensive condition which remains to be fulfilled is the consent of the Minister of Mineral
Resources in terms of section 11 of the Mineral and Petroleum Resources Development Act, 2002 to
the cession of the mining rights (other than the mining right which remains subject to a third party
dispute) from Palabora to Palabora Copper and the registration thereof in the name of Palabora
Copper. This process may be expected to take between 2 and 6 months.

Palabora is working towards procuring fulfilment of the remaining suspensive conditions as soon as is
practicably possible. Shareholders will be kept apprised of developments in this regard.


Phalaborwa
7 December 2012

Sponsor
One Capital


For further information, please contact:

Dikeledi Nakene, CFO
Office: +27 (0) 15 780 2277

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