PALABORA MINING COMPANY LIMITED - Renewal of cautionary announcement

Renewal of cautionary announcement

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”)

RENEWAL OF CAUTIONARY ANNOUNCEMENT

Palabora shareholders (“Shareholders”) are referred to the announcements published on SENS
on 11 December 2012 and 28 December 2012 (“Announcements”), and the renewal of
cautionary announcements published on 12 February 2013 (“Renewal Announcement”) and
27 March 2013 regarding Rio Tinto Group (“Rio Tinto”) and Anglo American PLC (“Anglo
American”) entering into a binding agreement to sell their respective effective shareholdings in
Palabora (“Agreement”) to a consortium comprising South African and Chinese entities led by
the Industrial Development Corporation of South Africa Limited and by the Hebei Iron & Steel
Group Co. Ltd. (“Consortium”). Subsequent to the Renewal Announcement, the Consortium
interest has changed to General Nice Development Ltd 20% (previously 25%), and the China
Africa Development Fund (a development finance arm of the China Development Bank and
ultimately owned by the Chinese Government) 5% (previously 0%). The remaining Consortium
interests remain unchanged.

The completion of the sale of Rio Tinto's and Anglo American’s respective effective
shareholdings in Palabora is subject to the fulfilment of certain conditions, as detailed in the
Announcements, by 30 June 2013 (which date can be extended by mutual consent of the parties
to the Agreement).

As previously communicated, Rio Tinto and Anglo American expect that it will take between
4 and 6 months for these conditions to be fulfilled.

As also previously communicated, the purchasers must extend an offer in terms of South African
Takeover Regulations to all remaining Shareholders upon the sale of Rio Tinto’s and Anglo
American’s interests being completed. Any offer to minority Shareholders is therefore
conditional on the completion of the sale of Rio Tinto and Anglo American’s shareholdings in
Palabora.

Accordingly, Shareholders are advised to continue exercising caution when dealing in the
Company’s securities until a further announcement is made.

Phalaborwa
13 May 2013

Sponsor
One Capital

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