MERAFE RESOURCES LIMITED - Report for the quarter ended 31 March 2014

Report for the quarter ended 31 March 2014

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”)

Report for the quarter ended 31 March 2014

1. Production and sales volumes
Merafe’s attributable ferrochrome production from the Glencore-Merafe Chrome Venture
(the Venture) increased by 28% period on period. This significant increase was primarily
attributable to a stronger market, the impact of the non-recurring Eskom buy-back
agreements and the good performance of the Venture’s furnaces. The Rustenburg smelter
continues to operate efficiently due to the positive impact of the Tswelopele pelletising and
sintering plant. The Venture’s operating capacity utilisation for the first quarter of 2014 was
95% compared to 74% for the comparative period. Ferrochrome sales volumes for the first
quarter of 2014 increased by 9% period on period.

                                                   Quarter Ended     Quarter Ended
                                                   31-Mar-2014       31-Mar-2013
        Attributable ferrochrome production (kt)   86                67
        Attributable ferrochrome sales (kt)        83                76
        European benchmark ferrochrome price
        (Usc/lb) (Metal Bulletin)                  118.0             112.5
        Average Rand/Dollar Exchange Rate          10.9              8.9


2. Impact of strike action in the Platinum Industry
The ongoing strike in the Platinum Industry has resulted in reduced UG2 production and
higher chrome ore input costs at the Venture’s furnaces during the first quarter of 2014, as a
consequence of a higher percentage of own mined ore compared to UG2.

3. Safety
We are deeply saddened to report that an accident occurred at the Venture’s Kroondal mine
in Rustenburg which resulted in an employee being fatally injured. The Venture is
co-operating with the Department of Mineral Resources who are conducting an investigation
into the incident which occurred on 9 April 2014. The Venture is supporting the family of the
deceased during this difficult time.

The Venture continues to make every effort to ensure the highest standards of safety are in
place at all its operations.

The Venture’s total recordable injury frequency rate (TRIFR) improved by 12% period on
period to 3.65.

4. Update on Project Lion II
We are delighted to report that production from the first furnace of our R5bn Project Lion II
commenced on 6 April 2014. Ferrochrome production at the plant will ramp up gradually and
it is envisaged that the smelter will be fully operational toward the middle of 2014. The
project has an excellent safety record with more than 8.5 million man hours worked, without
a lost time injury.

5. Second quarter ferrochrome price
The European benchmark ferrochrome price for the second quarter of 2014 has been settled
at 122USc per pound which is an increase of 3% from the 118USc per pound price in the first
quarter of 2014.

23 April 2014
Sandton

Sponsor:
Merrill Lynch South Africa Proprietary Limited

Kajal Bissessor
Chartered Accountant (SA)
Finance and Investor Relations Manager
Merafe Resources Limited
Ph: +2711 783 4780 / +27 83 784 6686

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