Palabora Europe Limited Pension Fund 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”) PALABORA EUROPE LIMITED PENSION FUND Palabora shareholders are advised that the Company wishes to provide the following additional disclosure to note 26 “Retirement benefit obligations” and note 36 “Contingent liabilities” of Palabora’s consolidated annual financial statements for the year ended 31 December 2012. IFRS required disclosure “Palabora Europe Limited (PEL), a wholly-owned subsidiary of Palabora participates in a group pension arrangement of Rio Tinto Pension Fund (the Fund) in the United Kingdom. Members who joined the Fund before 1 April 2005 participate on a Defined Benefit basis and those who joined the Fund on or after 1 April 2005 participate on a Defined Contribution basis. The assets of the Fund are held in a trust. The contributions paid by PEL are accounted for as if the Fund was a Defined Contribution arrangement as PEL is unable to identify its share of the underlying assets and liabilities in the Fund. Contributions of £0.531 million (ZAR6.888 million) were made by PEL to the Fund during the year ended 31 December 2012 (2011: £0.05 million, ZAR0.588 million). The last trustee funding valuation was conducted with an effective date of 31 December 2011. The requirement for PEL to pay contributions is reviewed on a six monthly basis and PEL’s contributions to the Fund recommenced in 2010. An annual valuation of the Fund was carried out by independent qualified actuaries as at 31 December 2011 under International Accounting Standards 19 "Employee Benefits" and on this basis the Fund had a surplus of $133.4 million (ZAR1 092 million). The existence of this surplus did not affect the rate at which PEL pays contributions as this is determined by the normal trustee funding actuarial valuation. Potential future defined benefit liability In terms of section 75 of the United Kingdom Pensions Act 1995, should one employer with defined benefit liabilities cease to have active employees whilst at least one other employer with defined benefit liabilities continues to do so in the same defined benefit plan, which would occur if PEL ceased to be a part of the Rio Tinto group, then PEL would cease to participate in the Fund. Upon ceasing to participate in the Fund, a debt would be triggered under section 75 of the United Kingdom Pensions Act 1995, payable to the Fund. The debt can only be known after the date on which it is triggered and will depend on market conditions at that date. Based on professional advice, the debt, as at 31 December 2012, was estimated to be £6.84 million (ZAR106.5 million). Accordingly, PEL (and, on a consolidated basis, Palabora) has a contingent liability for this potential future liability” Phalaborwa 28 June 2013 Sponsor One Capital For further information, please contact: Dikeledi Nakene, CFO Office: +27 (0) 15 780 2277 Date: 28/06/2013 04:15:00 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.