Zondereinde Mine Update 4 NORTHAM PLATINUM LIMITED Incorporated in the Republic of South Africa (Registration number 1977/003282/06) Share issuer code: NHM Debt issuer code: NHMI ISIN code: ZAE000030912 (“Northam” or “the company”) Zondereinde mine update 4 The board of Northam has taken note of a memorandum delivered by the NUM to Zondereinde management on Tuesday, 12 November 2013 requesting its involvement in the wage negotiation process. The directors would like to clarify the respective roles and functions of the board and management as follows: - The board’s role is to provide management with a mandate in the wage negotiation process, not to get involved in the day to day management functions - The board conscientiously considered all the relevant factors before having provided management with a wage negotiation mandate - Executive management keeps the board updated at all times on developments at the negotiating table. The company would like to reiterate that the union has not indicated any willingness to move from its demand for basic wage increases of R2000 and R2100 per month for core and non-core employees respectively, and a living out allowance of R3718. These demands equate to wage increases of between 22% and 43% and an increase in the living out allowance of 69%. In addition to the basic wage demands above, all the other demands would have the effect of increasing the company’s wage bill by 61%. Management has acted on the board’s mandate. The company has revised its offer three times. Given the economic conditions in the platinum industry, the current offer is the maximum the company can afford for the business to remain sustainable, and is at the top end of all other settlements in the industry to date. Furthermore, the longer the mine stands, the less affordable the offer becomes. The NUM has continued to indicate its unwillingness to talk about percentage increases and its preference to deal with the actual quantum. The company’s offer has been presented to the NUM in both formats. For comparability purposes the company’s offer for a two year agreement is presented in the tables below in both percentage and quantum terms: ___________________________________________________________________________________ 2013 (inclusive of a 0.5% service increment) ___________________________________________________________________________________ Employees Cat 2-8 Cat 9-10 ___________________________________________________________________________________ Non-core 8.0% 7.5% Core 9.0% 8.0% LOA and hostel allowance 8.0% 7.0% ___________________________________________________________________________________ ___________________________________________________________________________________ 2014* (inclusive of a 0.5% service increment) ___________________________________________________________________________________ Employees Cat 2-8 Cat 9-10 ___________________________________________________________________________________ Non-core 8.0% 7.5% Core 9.0% 8.0% LOA and hostel allowance 8.0% 7.0% ___________________________________________________________________________________ * For 2014 the higher of CPI+1 or the above ___________________________________________________________________________________ 2013 ___________________________________________________________________________________ Employees Cat 2-8 Cat 9-10 ___________________________________________________________________________________ Non-core R500 7.5% Core R600 8.0% LOA and hostel allowance R175 7.0% ___________________________________________________________________________________ ___________________________________________________________________________________ 2014* ___________________________________________________________________________________ Employees Cat 2-8 Cat 9-10 ___________________________________________________________________________________ Non-core R550 7.5% Core R650 8.0% LOA and hostel allowance R190 7.0% ___________________________________________________________________________________ *For 2014 the higher of CPI+1 or the above A further meeting under the auspices of the CCMA has been scheduled for Friday, 15 November 2013. Johannesburg 13 November 2013 Sponsor and Debt Sponsor One Capital Date: 13/11/2013 01:33:00 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.