MERAFE RESOURCES LIMITED - Trading Statement and Production Announcement for the Year Ended 31 December 2012

Trading Statement and Production Announcement for the Year Ended 31 December 2012

Merafe Resources Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1987/003452/06)
JSE share code: MRF
ISIN: ZAE000060000
(“Merafe” or the “Company”)

Trading statement and production announcement for the year ended 31 December 2012

Trading statement
In terms of the JSE Limited Listings Requirements, issuers are required to publish a trading
statement as soon as they are satisfied that a reasonable degree of certainty exists that the
financial results for the period to be reported on next will differ by at least 20% from those of
the prior comparative period.

Shareholders are advised that Merafe is expecting to report the following for the year ended
31 December 2012:

   •   Basic earnings per share of between 1.7 cents and 2.0 cents, compared to 4.7 cents for
       the 2011 year;

   •   Headline earnings per share of between 4.6 cents and 5.1 cents compared to 6.4 cents
       for the 2011 year.

The 2012 basic earnings are lower than the prior year primarily as a result of an impairment
loss recognised. The impairment loss has arisen as a result of the Xstrata-Merafe Chrome
Venture (“Venture”) considering the sale of certain high cost mining assets as part of its on-
going cost saving initiatives and due to having sufficient ore availability. The sale of these
assets, if concluded, would not impact on Merafe’s participation interest in the Venture and
the proceeds from such sale would accrue to the Venture partners in accordance with their
participation interests.

Update on cash balance and debt
Merafe closed with a cash balance of R83m and had long-term debt owing to ABSA Capital
of R512 million at 31 December 2012.

Shareholders are advised that the financial information on which this trading statement is
based, has not been reviewed or reported on by Merafe`s external auditors and is provided in
terms of paragraph 3.4(b) of the JSE Limited Listings Requirements.

The financial results for the year ended 31 December 2012 are expected to be released on
SENS on 5 March 2013.

Production announcement
Ferrochrome production during 2012 was 8% lower than the comparative period primarily as
a result of weak demand and participation in Eskom’s power buy-back programme. The
compensation received from Eskom for the electricity not consumed was adequate to cover
the costs and lost profits on the associated volumes. Operating capacity utilisation for the
2012 year reduced to 66% compared to 72% for the prior year.
The average European benchmark ferrochrome price for the first quarter of 2013 was settled
at 112.5USc per pound which was 2% higher than the 110USc per pound price in the fourth
quarter of 2012.

Ferrochrome production attributable to Merafe for the year ended 31 December 2012 was as
follows:

                                                                  Year ended      Year ended
                                                                 31 December     31 December
                                                                     2012            2011
 Ferrochrome production (kt)                                          242             263
 Indicative average published price (USc/lb - Metal Bulletin)         121             125


Sandton
31 January 2013

Sponsor:
Merrill Lynch South Africa Proprietary Limited

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