IMPALA PLATINUM HOLDINGS LIMITED - Mimosa concludes indigenisation implementation plan

Mimosa concludes indigenisation implementation plan

IMPALA PLATINUM HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1957/001979/06)
JSE code: IMP
LSE code: IPLA
ADR code: IMPUY
ISIN: ZAE 000083648
("Implats")

Mimosa concludes indigenisation implementation plan

Implats is pleased to announce that its 50% held subsidiary
Mimosa Investment Holdings (“Mimosa Investments”) has
concluded a non-binding term sheet in respect of a proposed
indigenisation implementation plan (“IIP”) with the Government
of Zimbabwe, as represented by the Ministry of Youth
Development, Indigenisation and Empowerment (“the
transaction”).

The term sheet, which was signed today stipulates the key
terms, subject to certain conditions precedent, for the sale
by Mimosa Investments of an aggregate 51% equity ownership of
Mimosa Holdings (Private) Limited (“Mimosa Holdings”) to
select indigenous entities as described below.

The sale will be effected at fair market value of Mimosa
Holdings at the date of implementation of the sale, which has
been agreed by all parties as US$1.078 billion. The purchase
price for the indigenisation shares is thus US$550 million.

Mimosa Investments will facilitate the transaction by
providing vendor funding to the indigenous entities at an
interest rate of 9%.

In terms of the IIP, the following interests in Mimosa
Holdings will be sold:

  -   10% to the Zvishavane Community Share Ownership Trust
      (“Community Trust”). This is the community in which the
      Mimosa Mine is located.
  -   10% to an employee share ownership trust to be
      established for the benefit of all permanent indigenous
      employees.
  -   31% to the National Indigenisation & Economic Empowerment
      Fund (“NIEEF”).

In accordance with the terms of the Community Trust Deed,
Mimosa will provide to the Community Trust by way of donation
an aggregate amount of US$10 million. Over the course of 2011
and   2012 a total of US$3 million has been paid to the Community 
Trust, with the remaining two installments of US$3.5million each
being payable by 31 December 2013 and 31 December 2014 respectively.

Should future funding be raised by equity subscriptions, then
all parties are required to contribute, failing which dilution
is provided for.

The transaction is subject to certain conditions precedent,
including, amongst others, that:

  -   the relevant Mimosa group and indigenous entities
      conclude definitive transaction agreements;
  -   a certificate of compliance is issued confirming current
      and future compliance by the Mimosa group entities and
      its shareholders with applicable indigenisation laws and
      requirements following the implementation of the IIP;
  -   the parties obtain all necessary regulatory approvals,
      including Zimbabwe exchange control approval; and
  -   the Mimosa group entities obtain the requisite Board and
      Shareholder approvals required to implement the IIP.

The parties have committed to co-operating to fulfil the
conditions precedent by 31 March 2013, subject to extension
necessitated by regulatory processes.

Terence Goodlace, CEO of Implats said: “We are very glad to
have reached agreement with the government of Zimbabwe to
further realise our ambition to be a good corporate citizen
and create a sustainable platinum mining company which can
attract the kind of investment needed to deliver profits and
prosperity for the people of Zimbabwe, our employees, the
local community and all other stakeholders.”

In terms of the JSE Limited Listings Requirements, this
transaction is not a categorised transaction.

14 December 2012
Johannesburg

Sponsor
Deutsche Securities (SA) Proprietary Limited

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