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LONMIN PLC - 2015 Final Results Announcement

Release Date: 09/11/2015 15:11
Code(s): LON     PDF:  
Wrap Text
2015 Final Results Announcement

Lonmin Plc    
(Incorporated in England and Wales)
(Registered in the Republic of South Africa under registration number 1969/000015/10)
JSE code: LON
Issuer Code: LOLMI & ISIN : GB0031192486 
("Lonmin")

Lonmin Plc
4 Grosvenor Place
London SW1X 7YL
United Kingdom
T: +44 (0)20 7201 6000
F: +44 (0)20 7201 6100
www.lonmin.com

REGULATORY RELEASE


NOT FOR RELEASE, PUBLICATION, FORWARDING OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN, INTO OR WITHIN THE UNITED STATES, 
AUSTRALIA, CANADA OR JAPAN OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD BE UNLAWFUL. PLEASE SEE THE IMPORTANT NOTICES PART OF THIS ANNOUNCEMENT. 

THIS ANNOUNCEMENT IS AN ADVERTISEMENT AND DOES NOT CONSTITUTE A PROSPECTUS OR PROSPECTUS EQUIVALENT DOCUMENT. NOTHING HEREIN SHALL CONSTITUTE 
AN OFFERING OF ANY SECURITIES. ANY DECISION TO PURCHASE, SUBSCRIBE FOR, OTHERWISE ACQUIRE, SELL OR OTHERWISE DISPOSE OF ANY OF THE COMPANY'S 
SECURITIES MUST BE MADE ONLY ON THE BASIS OF INFORMATION IN THE PROSPECTUS TO BE PUBLISHED BY THE COMPANY IN DUE COURSE. 

9 November 2015
2015 Final Results Announcement

Lonmin Plc, ("Lonmin" or "the Group"), one of the world’s largest primary Platinum producers, today publishes its Final Results for the year ended 30 September 2015.

- Safety
- Regrettably three fatalities in the second half of the year after 18 months fatality-free 
- Lost Time Injury Frequency Rate (LTIFR) increase to 5.41 from 3.34

- Operational achievements 
- Saffy shaft ramped up to steady state full production as planned
- Platinum sales of 751,560 ounces - the highest since 2007 and above market guidance of 730,000 ounces
- Platinum metal-in-concentrate for the year was 740,315 saleable ounces
- Mined production of 704,776 Platinum ounces - impacted by a loss of 48,000 ounces due to Section 54 safety stoppages
- Operational flexibility maintained with available ore reserves at an average of 22 months production
- Outstanding instantaneous recovery rates improved to 87.2%

- Business Plan
- Business Plan developed to address low PGM pricing and retain flexibility
- Right sizing now 50% complete within six months with 3,136 workers exited (2,120 employees and 1,016 contractors)

- Financial Results - Decisive action taken on operational and cost savings
- Cost of production per PGM ounce reduced to R10,339 per PGM ounce - lower than guidance of R10,800
- Tightly controlled capital expenditure of $136 million - lower than original guidance of $250 million
- Net debt of $185 million with available committed facilities of $543 million (net debt of $29 million in 2014)
- Net assets attributable to equity shareholders valued at $1.6 billion after impairment charge of $1.8 billion
- Underlying loss before tax $143 million ($46 million profit in 2014) 
- Underlying loss per share of 16.2 cents versus earnings 5.4 cents in prior year

        Guidance for 2016 to 2018
-       Platinum sales of c.700,000 ounces for 2016, and c.650,000 for each of 2017 and 2018
-       Reduction in the size of the Group's workforce and overheads planned to deliver 2016 cost reduction of
        c.R0.7 billion and c.R1.6 billion for 2017 (in real terms)
-       Unit costs to be broadly flat on 2015 in nominal terms at c.R10,400 for three more years to 2018
-       Capital expenditure limited to c.$132 million for 2016, $110 million for 2017 and $188 million for 2018, of
        which $43 million third party funding to be used of the Bulk Tailings Treatment plant

        Strengthening of Balance Sheet
-       The Rights Issue is expected to raise approximately $407 million (in gross proceeds)
-       Conditional amended banking facilities agreed with all existing lenders for $370 million

Lonmin Chief Executive Officer Ben Magara said:

"2015 has been a tough year for Lonmin given the adverse pricing environment and the imminent maturity of our debt
facilities in mid 2016. However, we have worked hard with all stakeholders and have reduced costs and started to
restructure the Group to focus our efforts on the four Generation 2 shafts, which is expected to account for 90% of our
production. Our priority is to run the business with a focus on cash generation and profitable ounces. We are
repositioning Lonmin and aiming for the business to generate positive free cash flow after capital expenditure in this
current low environment. In addition, we remain confident of the long term market fundamentals for Platinum and its
associated group of metals even though our Business Plan is designed to ensure Lonmin is resilient in this low price
environment. I am pleased that we have secured $370 million of bank facilities from all ten of our existing lending
banks which is conditional on the $407 million Rights Issue. It is encouraging that our Rights Issue has been fully
underwritten and we hope shareholders vote positively on 19 November 2015. We firmly believe that the Rights Issue
is in the best interest of our shareholders.

FINANCIAL HIGHLIGHTS

                                               30 September     30 September
                                                       2015             2014

Revenue                                             $1,293m            $965m
Underlying (i) operating (loss) / profit            ($134)m             $52m
Operating loss (ii)                               $(2,018)m          $(255)m
Underlying (i) (loss) / profit before taxation      ($143)m             $46m
Loss before taxation                              $(2,262)m          $(326)m
Underlying (i) (loss) / earnings per share          (16.2)c             5.4c
Loss per share                                     (285.5)c          (33.0)c

Trading cash outflow per share (iii)                 (2.1)c          (20.4)c
Free cash outflow per share (iv)                    (28.7)c          (43.2)c

Net debt as defined by the Group (v)                $(185)m           $(29)m

Interest cover (times) (vi)                            7.9x             4.0x
Gearing (vii)                                          9.9%             0.6%

Footnotes:

(i)   Underlying results are based on reported results excluding the effect of special items as disclosed in note 3 to the financial statements.
(ii)  Operating (loss) / profit is defined as revenue less operating expenses before impairment of available for sale financial assets, finance income and expenses and before share of (loss) / profit of equity accounted investments.
(iii) Trading cash flow is defined as cash flow from operating activities.
(iv)  Free cash flow is defined as trading cash flow less capital expenditure on property, plant and equipment and intangibles, proceeds from disposal of assets held for sale and dividends paid to non controlling interests.
(v)   Net (debt) as defined by the Group comprises cash and cash equivalents, bank overdrafts repayable on demand and interest bearing loans and borrowings less unamortised bank fees, unless the unamortised bank fees relate to undrawn facilities in which case they are treated as other receivables.
(vi)  Interest cover is calculated on the underlying operating (loss) / profit divided by the underlying net bank interest payable excluding exchange differences.
(vii) Gearing is calculated as the net debt attributable to the Group divided by the total of the net debt attributable to the Group and equity shareholders’ funds.

ENQUIRIES

Investors / Analysts:
Lonmin
Tanya Chikanza (Head of Investor Relations)   +27 11 218 8300 / +44 20 7201 6007

Media:
Cardew Group
Anthony Cardew / James Clark                  +44 20 7930 0777
Sue Vey                                       +27 72 644 9777
Notes to editors

Lonmin, which is listed on both the London Stock Exchange and the Johannesburg Stock Exchange, is one of the world's
largest primary producers of PGMs. These metals are essential for many industrial applications, especially catalytic
converters for internal combustion engine emissions, as well as their widespread use in jewellery.

Lonmin's operations are situated in the Bushveld Igneous Complex in South Africa, more than 70% of known global
PGM resources are found.

The Company creates value for shareholders through mining, refining and marketing PGMs and has a vertically
integrated operational structure-from mine to market. Underpinning the operations is the Shared Services function
which provides high quality levels of support and infrastructure across the operations.

For further information please visit our website: http://www.lonmin.com

IMPORTANT NOTICES

This announcement, and the information referred to in it, is an advertisement and not a prospectus and any decision to
purchase, otherwise acquire, subscribe for, sell or otherwise dispose of any securities in Lonmin plc (the "Company")
("Securities") should only be made on the basis of information contained in or incorporated by reference into a
prospectus. This announcement cannot be relied upon for any investment contract or decision.

This announcement is not intended to and does not constitute or form part of any offer or invitation to purchase or
subscribe for, or any solicitation to purchase or subscribe for, Securities in any jurisdiction.

The information contained in this announcement is not for release, publication or distribution to persons in the United
States of America, Australia, Canada or Japan or any other jurisdiction where to do so would be unlawful (an "Excluded
Territory") and should not be distributed, forwarded to or transmitted in or into any jurisdiction where to do so might
constitute a violation of the securities laws or regulations of such jurisdiction. There will be no public offer of Securities
in the United States of America or any Excluded Territory. The distribution of this announcement and/or the Prospectus
and/or the Securities into jurisdictions other than the United Kingdom may be restricted by law, and, therefore,
persons into whose possession this announcement and/or the information contained herein and/or the Prospectus
and/or a Provisional Allotment Letter and/or a Form of Instruction comes should inform themselves about and observe
any such restrictions. Any failure to comply with any such restrictions may constitute a violation of the securities laws
of such jurisdiction.

The Securities have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "U.S.
Securities Act"), or under any securities laws of any state or other jurisdiction of the United States and may not be
offered, sold, pledged, taken up, exercised, resold, renounced, transferred or delivered, directly or indirectly, within the
United States except pursuant to an applicable exemption from, or in a transaction not subject to, the registration
requirements of the U.S. Securities Act and in compliance with any applicable securities laws of any state or other
jurisdiction of the United States. The Securities have not been approved or disapproved by the United States Securities
Exchange Commission, any state securities commission in the United States or any other U.S. regulatory authority,
nor have any of the foregoing authorities passed upon or endorsed the merits of the proposed rights issue or the
accuracy or adequacy of the Prospectus. Any representation to the contrary is a criminal offence in the United States.

Accordingly, subject to certain exceptions, the proposed rights issue is not being made in the United States of America
and neither this announcement, the prospectus to be published in due course, the Letters of Allocation nor the
Provisional Allotment Letters constitute or will constitute an offer, or an invitation to apply for, or an offer or an
invitation to subscribe for or acquire any Securities in the United States. Subject to certain limited exceptions,
Provisional Allotment Letters will not be sent to, and Nil Paid Rights will not be credited to the CREST account of, any
qualifying shareholder with a registered address in or that is located in the United States of America.

This communication is for distribution only to, and directed only at, persons in member states of the European
Economic Area who are "qualified investors" within the meaning of Article 2(1)(e) of the Prospectus Directive (as
amended by Directive 2010/73/EU) ("Qualified Investors"). For the purposes of this provision, the expression
"Prospectus Directive" means Directive 2003/71/EC and includes any relevant implementing measure in each member
state of the European Economic Area which has implemented the Prospectus Directive. In addition, in the United
Kingdom, this communication is for distribution only to, and is directed only at, Qualified Investors who (i) have
professional experience in matters relating to investments who fall within the definition of "investment professionals"
in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the
"Order"), or (ii) are persons falling within Article 49(2)(a) to (d) of the Order, or (iii) are persons to whom it may
otherwise lawfully be communicated (all such persons together being referred to as "relevant persons"). Any
investment or investment activity to which this communication relates is available only to and will only be engaged in
with such persons. This communication must not be acted on or relied on (i) in the United Kingdom, by persons who
are not relevant persons, and (ii) in any member state of the European Economic Area (including the United Kingdom),
by persons who are not Qualified Investors.

The information contained in this announcement is for background purposes only and does not purport to be full or
complete. No reliance may be placed for any purpose on the information contained in this announcement or its
accuracy or completeness. The information in this announcement is subject to change. Nothing in this announcement
should be interpreted as a term or condition of the Company's proposed rights issue.

A copy of the prospectus containing details of the proposed rights issue when published will be available from the
registered office of the Company and on the Company's website at www.lonmin.com provided that the prospectus will
not, subject to certain exceptions, be available (whether through the website or otherwise) to shareholders in the
United States or any Excluded Territories.

Neither the content of the Company's website nor any website accessible by hyperlinks on the Company's website is
incorporated in, or forms part of, this announcement.

This announcement does not constitute a recommendation concerning any investor's options with respect to the
proposed rights issue. The price and value of securities can go down as well as up. Past performance is not a guide to
future performance. The contents of this announcement are not to be construed as legal, business, financial or tax
advice. Each shareholder or prospective investor should consult his, her or its own legal adviser, business adviser,
financial adviser or tax adviser for legal, financial, business or tax advice.

No person has been authorised to give any information or to make any representations other than those contained in
this announcement and, if given or made, such information or representations must not be relied on as having been
authorised by the Company, any of the Banks or any other person. Subject to the Listing Rules, the Prospectus Rules
and the Disclosure and Transparency Rules, the issue of this announcement shall not, in any circumstances, create any
implication that there has been no change in the affairs of the Company's group since the date of this announcement
or that the information in it is correct as at any subsequent date.

This announcement has been prepared for the purposes of complying with applicable law and regulation in the United
Kingdom and the information disclosed may not be the same as that which would have been disclosed if this
announcement had been prepared in accordance with the laws and regulations of any jurisdiction outside of the United
Kingdom.

This announcement, and the information referred to in it, includes forward-looking statements. All statements other
than statements of historical fact included in this announcement and the information referred to in it, including
without limitation those regarding Lonmin's plans, objectives and expected performance, are forward looking
statements. Lonmin has based these forward-looking statements on its current expectations and projections about
future events, including numerous assumptions regarding its present and future business strategies, operations, and
the environment in which it will operate in the future. Forward-looking statements generally can be identified by the
use of forward-looking terminology such as "may", "will", "could", "would", "expect", "intend", "estimate", "anticipate",
"believe", "plan", "aim" or "continue", or, in each case, their negative, or other variations or comparable terminology.
Such forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors
related to Lonmin, including, among other factors: (1) material adverse changes in economic conditions generally or in
relevant markets or industries in particular; (2) fluctuations in demand and pricing in the mineral resource industry and
fluctuations in exchange rates; (3) future regulatory and legislative actions and conditions affecting Lonmin's operating
areas; (4) obtaining and retaining skilled workers and key executives; and (5) acts of war and terrorism. By their nature,
forward-looking statements involve risks, uncertainties and assumptions and many relate to factors which are beyond
Lonmin's control, such as future market conditions and the behaviour of other market participants. Actual results may
differ materially from those expressed in forward-looking statements. Given these risks, uncertainties, and
assumptions, you are cautioned not to put undue reliance on any forward looking statements. In addition, the inclusion
of such forward-looking statements should under no circumstances be regarded as a representation by Lonmin that
Lonmin will achieve any results set out in such statements or that the underlying assumptions used will in fact be the
case. Other than as required by applicable law or the applicable rules of any exchange on which Lonmin's securities
may be listed, Lonmin has no intention or obligation to update or revise any forward-looking statements included in
this announcement after the publication of this announcement.

CONTENTS

This document contains the following sections:
      -  Chief Executive Officer’s Review;
      -  Operational Review;
      -  Market Review;
      -  Mineral Resources & Mineral Reserves
      -  Financial Review;
      -  Responsibility Statement of the Directors;
      -  Operating Statistics – 5 Year Review; and
      -  Financial Statements

CHIEF EXECUTIVE OFFICER’S REVIEW

Overview

A year ago we outlined our strategy, based on operational excellence, robust cost control, solidifying relationships with
stakeholders and mining for value. We have seen solid delivery in these areas, but the macroeconomics have seen the
benefits of that work eroded and our share price placed under immense pressure.

Operational
Operationally, we have delivered on our promises and I am pleased with that progress. We took decisive action to
mitigate the effects of the low pricing environment and costs of production per PGM ounce for 2015 were R10,339,
well within our guidance of R10,800. Capital expenditure was tightly controlled and minimised to $136 million,
compared to our original guidance of $250 million. Our strategy, and hard work across the business, combined are
aimed to deliver well.

Saffy shaft reached steady state as promised and we exceeded our sales guidance to the market achieving sales of
751,560 Platinum ounces. Our mined production of 704,776 Platinum ounces was impacted by an increase in frequency
and duration of Section 54 safety stoppages, resulting in lost Platinum metal production amounting to 48,000 ounces.
Our immediately available ore reserves continue to offer operational and strategic flexibility. Despite an outage at our
smelters in December, we delivered strong processing recoveries. We are working hard with government and our
unions to reduce the level of Section 54 safety stoppages we saw in the year. We believe that transparency and
dialogue are key and we are encouraged by the collaboration and progress that we have made in this area.

We achieved R526 million of net benefits during 2015 as we realised significant cost reductions from the review of the
operating model and the total cost of ownership programmes. This was partially offset by the limited progress on
productivity and efficiency enhancement which have been hampered by the high level of Section 54 safety stoppages
that we, and the whole industry, experienced during the year. Productivity, though, is an industry-wide issue which has
its roots in wider social issues and will require a holistic approach from everyone involved.

I said a year ago that my aim was to build a Lonmin that is flexible and sustainable through the cycle. There is no doubt
that this year has been one of the toughest and, whilst we expect things to remain challenging in the medium term, we
believe the long term PGM fundamentals are sound.

Strategic Decisions
Your Board and management team resolved to build resilience into the business, taking firm action to reduce Lonmin’s
cost base and conserve cash so that the Company remains sustainable and viable. Our intent was to reposition your
Company so that it weathers the low pricing environment we face; to safeguard the long term interests of our
shareholders, employees and all key stakeholders; and to be well positioned to exploit improvements in the market
when they come. We have also implemented plans to strengthen our balance sheet, with the support of you, our
shareholders and lenders, to allow us to navigate our way to better times ahead, today we expect to publish our
Prospectus for a $407 million Rights Issue and entering into conditional Amended Facilities Agreements with our
existing lenders.

The reduction in profitability due to low PGM prices and the maturing of our debt facilities in 2016 led us to accelerate
the execution of our published strategy. It was necessary for us to take some tough decisions as we sought to respond
to the conditions we faced by continuing to manage the elements within our control. We concluded that we needed to
remove high cost ounces, reduce production and overhead costs as well as minimising capital expenditure. The decision
to right size our business was not taken lightly as it will impact 6,000 employees and contractors, but the reality is that
it is essential to protect the business, and the jobs of many thousands more who work for your Company.

Our conclusion, that it was necessary to reduce high cost production in an oversupplied market, resulted in the orderly
closure of Hossy and Newman shafts. This will be achieved by stopping development and capital work. Instead, only the
immediately available ore reserves will be utilised, reducing the overall costs of production and enhancing cash
generation and profitability as the shafts are closed. In addition, 1B shaft of the 1B/4B shaft complex was closed and
put on care and maintenance in October 2015.

We have re-examined the Generation 1 shafts, some of which are currently managed by contractors, namely W1 and
E1. We are renegotiating the ore purchase agreements to include more favourable terms, which if concluded and
subject to a favourable outcome of the S189 consultation process, will allow mining to continue at these shafts for the
2016 financial year. Going forward we will focus on our Generation 2 large, long life shafts, K3, Rowland, Saffy and 4B
which combined will represent 90% of production.

I remain confident that our initiatives around employee wellness, financial literacy and counselling as well as the
technical solutions around de-bottlenecking logistics will continue to bear fruit. Like most things, it is a journey, and
one we cannot give up if we are to succeed for you, our shareholders and indeed all our stakeholders.

It’s important to remember that when market conditions improve, your Company has strong assets and projects: our
large, long life and low-cost K4 project, the Rowland MK2 resource, opening up further levels at Saffy shaft, Pandora E3
deepening project and E4 Pandora Deep which is perhaps the shallowest remaining PGM deposit anywhere in the
Western Limb Bushveld Igneous Complex.

People
We have overseen robust action in cutting costs, reducing numbers, streamlining, and taking sensible decisions on pay
freezes and waiving bonuses. The right sizing of the business is now 50% complete. As at 6 November, 3,136 colleagues
of the 6,000 affected positions have left the Company; 2,120 employees through a voluntary process and 1,016
contractors, all within six months. In addition we started a Section 189 consultation process to engage on the
implementation of the agreed avoidance measures which include redeployment and re skilling and further voluntary
separations. Our relationship charter established between the Group and AMCU allowed us to have a robust process
around that. Unions work to look after their members, as they should, but the progressive way this process has
unfolded would have been unthinkable two years ago. We hope that this will continue in to the next round of wage
negotiations.

Safety
As a miner myself, safety is my number one priority and Lonmin’s performance in this area has been the achievement
in which I take the greatest pride. After 18-months without a fatality though, this year has seen us lose three
colleagues; Bonisile Mapango, Mark Potgieter and Silva Cossa. Their loss, for which I offer my deepest condolences on
behalf of the Company, has led us to re-examine all areas of safety. We never rest in this, and I believe we will achieve
Zero Harm. Under my stewardship that remains an absolute and realistic ambition.

Strategic Priorities

In 2013 we began a fundamental review of our business. Throughout and after the subsequent five month strike in
2014 we took the opportunity to refine our plans. This has developed into the strategy we have today.

The sustained low PGM pricing environment we experienced in 2015 and which we anticipate to prevail in the short to
medium term was a major challenge to the sector, and to Lonmin in particular given the Group’s maturing debt
facilities in 2016. We took the opportunity to re-examine our strategy set against these new pressures.

In essence we found that our wider strategic approach remained correct, but we needed to take robust and decisive
action to further protect the business in the short and medium term and embed sustainability.

Fundamentally this resulted in us developing a comprehensive response which has seen us accelerate the move to
reshape and re-size the business for the low price environment, reducing fixed cost expenses, removing high cost
ounces, reducing headcount and capital expenditure to the minimum required for the safe and efficient running of the
Group's operations, while preserving the ability of the Group to increase its production when PGM prices improve. We
are able to do this because our operations and capital expenditure is scalable. Our existing strategy was built to ensure
flexibility in these areas and that has proved vital in recent months. We say more about this below.

Our overarching strategy comprises the following four pillars:

        - Operational Excellence
        - Enhancing Balance Sheet Strength
        - Our People and Relationships
        - Our Corporate Citizenship Agenda

1. Operational Excellence

1.1     Safety
Safety comes first in everything we do.

After an industry record of 18 months fatality free, Lonmin sadly lost three employees to fatal accidents during the
second half of 2015 financial year.

We strive to be the industry leader in safety and we believe that "Zero Harm" is both achievable and realistic. This
starts with the safety, health and wellbeing of our employees and extends to everything we do including minimising the
environmental impact of our operations. We believe that integrating our operational and sustainability strategies will
enable us to deliver on our goal of Zero Harm.

1.2     Priorities
Our highest short-term priority is the performance of our excellent Marikana operations which we believe are some of
the best in the industry, in terms of quality, safety and efficiency. We believe we are an industry leader in UG2 mining
and processing technology, an increasingly important factor of the ore mix mined in the industry.

Within our mining operations, our shafts are split into three categories, namely Generation 1, Generation 2 and
Generation 3 shafts. The Generation 1 shafts – Newman, E1, E2, E3 and W1 are smaller, older shafts in the latter stages
of their operational life. The Generation 2 shafts, K3, Rowland, 4B/1B, Saffy and Hossy are the larger, newer, shafts.
Saffy was the last to ramp up and did so successfully, reaching steady state in 2015 ahead of schedule.

Our Generation 3 vertical shaft, K4, had reached the early stages of ramp up prior to being placed on care and
maintenance in September 2012. We believe that K4 is one of the Group’s best projects in South Africa as it continues
to offer the best brownfield replacement and growth optionality for the Group. We plan to reopen the shaft when
market conditions improve.

Profitability and returns are crucial. The Group is highly geared to the PGM pricing environment and the Rand/US
exchange rate. We mine for value, not for volume. Where volume might help deliver value in the future, we aim to
have the flexibility to increase production with minimal expenditure, but given the present PGM market, we believe
that the priority in the short-term is prioritising efficiency and cash.

Within the constraints of market conditions, we strive to ensure that our newer assets reach the most efficient and
profitable points they can in terms of safety, costs, production and productivity as the older shafts reach the end of
their lives.

1.3      Actions

1.3.1 Marikana Asset Flexibility and our New Business Plan
The Board and executive management, are attendant to the low pricing environment and carried out a comprehensive
review of the Group's business and capital structure.

The resultant plan ensures sustainability through the difficult headwinds we face, reshaping and resizing the business
both to give the flexibility to respond to more attractive market conditions in the future, and in recognition of the fact
that we believe the PGM industry will look significantly different in the medium and long-term.

The result is a Business Plan which accelerates the implementation of the Group's published strategy of ultimately
operating only our large, long-life and low-cost shafts, and is focused on factors that are within the Group’s control,
whilst seeking to preserve the integrity of the Group's operations. Overall, the Business Plan focuses on:

         - removing high-cost PGM production ounces and, importantly, eliminating associated fixed and variable costs;
         - reducing fixed cost expenses by right sizing the Group’s workforce and reducing overhead costs and support
           service structures;
         - reducing capital expenditure to the minimum required to sustain the efficient running of the Group's
           operations while satisfying regulatory and safety standards and limiting the number of development projects
           for the continuing shafts;
         - maintaining operational and strategic flexibility through sufficient immediately available ore reserves;
         - creating, preserving and enhancing long-term equity value by retaining long-term expansion opportunities;
         - continuing to improve relationships with key stakeholders. Lonmin’s sustainability depends on creating
           shared value for all so that each stakeholder sees Lonmin as a net positive contributor to their wellbeing and
           development; and
         - each stakeholder taking some short-term pain for long-term value protection and employment.

The Group’s Business Plan aims to continue to preserve cash with the objective of achieving a cash flow positive
position after capital expenditure despite the current low PGM pricing environment.

As described below, the Business Plan aims to keep unit costs per PGM ounce in nominal terms broadly flat in line with
the year ended 30 September 2015 at around R10,400 per PGM ounce, for three further years ending 30 September
2016, 2017 and 2018.

The key elements of the Business Plan are:

      a) Removing high cost production
         Following a shaft-by-shaft analysis, Lonmin has decided to reduce high cost production ounces to improve the
         Group's profitability and cash flows. Specifically, the following actions are being taken.

         Generation 2 shafts
         -  Planned orderly closure and placement on care and maintenance of the Hossy shaft: There has been
            significant improvement over the last twelve months at the Hossy shaft in productivity and in the
            relationship between management and employees. However, the Hossy shaft remains the Group's highest
            cost Generation 2 shaft and Lonmin has concluded that in the prevailing low PGM pricing environment the
            shaft has no prospect of self funding its direct mining and processing costs and direct capital expenditure.
            The Directors plan to implement the closure and placement on care and maintenance of the Hossy shaft in
            an orderly manner over the next two financial years, allowing the Group to continue to extract the
            immediately available ore reserves that have been built up at the shaft during its turnaround.
         -  Closure and placement on care and maintenance of the 1B shaft: All ore reserve development capital has
            been stopped. Overall, the 4B/1B combined shaft complex has remained profitable despite the weak PGM
            pricing environment. However, the 1B part of the complex has produced high cost ounces and Lonmin
            expects that its closure and placement on care and maintenance will result in improved performance

       metrics as direct and associated costs are removed. The shaft was placed on care and maintenance in
       October 2015.

   Generation 1 shafts
   -  Planned orderly closure and placement on care and maintenance of the Newman shaft: Whilst the Newman
      shaft has remained profitable despite the low PGM pricing environment, the shaft is nearing the end of its
      life and the capital expenditure required to extend its life ranks below other projects in the Group's capital
      allocation programme. Lonmin plans to implement the closure and placement on care and maintenance of
      the Newman shaft in an orderly manner over the next financial year, allowing the Group to continue to use
      immediately available ore reserves at the shaft, whilst limiting capital expenditure to essential levels.
   -  Ongoing assessment of certain Generation 1 shafts: As part of the response to prolonged weakness in PGM
      prices, the Group previously announced plans to put on care and maintenance two of its Generation 1
      shafts, namely, the E1 and W1 shafts, which are managed by contractors. These shafts were operating only
      at break-even levels and not generating significant cash. Subsequently, the Group engaged with the
      contractor managing these shafts and the contractor developed a plan that Lonmin believes will allow the
      shafts to be cash generative. In light of this development, the Group plans to renegotiate the ore purchase
      agreement with the contractor to include more favourable terms which, subject to a favourable outcome
      of the section 189 consultation process, Lonmin believes will allow mining at these shafts to continue for
      the year ending 30 September 2016. Lonmin will reassess the viability of continuing to mine these shafts at
      the end of the year ending 30 September 2016.

   Lonmin expects the implementation of the Business Plan to result in a reduction of approximately 100,000
   Platinum ounces in the Group's normalised annual production over the next two financial years as high-cost
   production at certain shafts is wound down, with a concomitant reduction in staffing and overhead levels.
   Lonmin expects that the sales profile for the Group will be approximately 700,000 Platinum ounces for the year
   ending 30 September 2016 and approximately 650,000 Platinum ounces for each of the years ending
   30 September 2017 and 2018.

b) Removing fixed costs
   (i) Reducing the size of the Group’s workforce to protect the business in the low PGM price environment: The
   Group announced a retrenchment programme and has embarked on a Section 189 consultation process with
   relevant stakeholders. By 6 November 2015, approximately 3,136 people had left the Group; 2,120 employees
   through the voluntary separation programme that was launched in May 2015, and 1,016 contractors. In total,
   approximately 6,000 employees, including contractors, are affected and the process is expected to be
   completed by 30 September 2016, and the Directors expect additional employees and contractors to leave the
   Group by 30 September 2017 in connection with the planned closure and placement on care and maintenance
   of shafts. Combined this should result in a large reduction in overheads.

   The Group continues to work closely with key stakeholders, particularly its unions and the South African
   government, in connection with the workforce reductions. The relationship charter established between the
   Group and AMCU during 2014 has been a useful reference point in the Section 189 consultation process. In the
   interests of ensuring timely consultations, the Group has undertaken two Section 189 consultation processes in
   parallel —one with AMCU, the Group's majority union, and another with the other unions and non-unionised
   employees. Both processes are being facilitated by the South African Commission for Conciliation, Mediation
   and Arbitration. The consultation period was extended by mutual agreement of all relevant stakeholders to
   enable full exploration of all alternatives to forced retrenchments. The formal consultation process with the
   Unions ended on 22 October 2015, and the Group is now in the process of finalising the voluntary separations
   and redeployment. In the event that there is an insufficient number of voluntary separations and
   redeployment, forced retrenchment may occur, and any forced retrenchment is expected to be phased over a
   period of time.

   The Group employed approximately 35,669 people, including contractors, as at 30 September 2015 and
   through the South African Chamber of Mines is a signatory to the Mining Leadership Declaration Agreement. In
   this agreement, the tripartite committed to limit job losses and also to minimise production disruptions. It is

   Lonmin’s objective to protect the majority of those jobs over the long-term by ensuring that the Group can deal
   effectively with the ongoing sustained low pricing PGM environment.

   (ii) Reducing overhead and support service structures: New measures identified as part of the Business Plan
   for overhead and support services will remove associated overhead costs, at least in line with the reduction in
   the size of the Group’s operations. The closure and placement on care and maintenance of the shafts outlined
   below will result in the removal of associated overhead costs, including the decommissioning of a concentrator
   and the revision of all incentive schemes to encourage production efficiencies and to ensure that bonus and
   incentives schemes are self-funding. Annual bonuses to management level employees for the year ended
   30 September 2015 have been waived. In addition, no salary increases have been granted to management for the
   year ending 30 September 2016. Marketing and promotional expenses, as well as discretionary spending on
   training, are being reduced with discussions taking place with Platinum Guild International and World Platinum
   Investment Council to reduce financial commitments by at least 20%.

c) Reducing capital expenditure
   A comprehensive assessment of capital projects has been undertaken resulting in the planned capital
   expenditure for the next two financial years being limited to:

        -   capital expenditure sufficient to keep the Group's existing assets in operation and to comply with
            legislative, Safety, Health and Environment and social responsibility requirements;
        -   ore reserve development capital expenditure sufficient to ensure that immediately available ore
            reserves continue to be available to support planned production; especially in Generation 2 shafts,
            and
        -   expansion capital expenditure for a limited number of development projects.

   Capital portfolio optimisation tools have been used with the aim of ensuring that capital expenditure is
   invested only in the early cash generative and most valuable ore reserve development and expansion projects.
   Although certain ore reserve development and expansion projects have been deferred, thereby reducing the
   discounted value of certain of the Group’s shafts and their associated projected revenue streams, Lonmin
   believes that this is a necessary measure in order to improve the Group’s cash flows and liquidity in the short-term.

   The Group expects to limit its total capital expenditure to approximately $132 million and $110 million for the
   years ending 30 September 2016 and 2017, respectively. Based on current information, the Group anticipates
   that its capital expenditure for the year ending 30 September 2018 will increase to approximately $188 million,
   as the Group's investments in stay-in-business and ore reserve development capital expenditure are expected
   to increase.

   A large portion of the planned ore reserve development capital expenditure is for the further deepening of the
   existing, profitable K3 shaft as well as the development of the Middelkraal MK2 resource that the Group plans
   to extract via its existing, profitable Rowland shaft to partly offset the expected reduction in Rowland shaft’s
   production profile in 2019. Lonmin believes that a continued investment in these projects will enable the
   hoisting capacity of these shafts to be fully used for an extended period and to maintain their low unit costs.

   We aim continue to maintain the resilience of our processing plants and concentrators to achieve the high
   levels of PGM recoveries we achieve. Our smelter complex, which is comprised of the two large furnaces and
   the three pyromet furnaces provides us with the flexibility required in this industry and offers opportunistic
   third party concentrate purchases or toll treatments.

   The Group's planned capital expenditure also includes expansion capital expenditure for the bulk tailings
   treatment (BTT) project which was deferred earlier in the year. The BTT project entails the re mining of a
   tailings dam to extract chrome and contained PGMs. The BTT project is expected to be mined by a contractor
   over a seven-year period with the first tonnes expected in the latter half of the year ending 30 September
   2017. The chrome is expected to be recovered in a new chrome spiral plant and the contained PGMs are
   expected to be recovered in the Group’s Number One furnace. The Group is in the process of securing third
   party funding for the conversion of the concentrator and the establishment of the slurry pipeline that will be
   required. Approximately $29 million and $14 million are included for the BTT project in the total planned
   capital expenditure for the years ending 30 September 2016 and 2017, respectively.

The Business Plan accelerates our core strategy of focusing on the larger Generation 2 shafts which is working well in
terms of saving costs and improving efficiencies and operational performance. Ongoing elements of that strategy
remain in place.

Core shafts on target
We are accelerating improvement initiatives through theory of constraints at our big, long-life and low cost shafts of
the future to increase and sustain shaft hoisting performance and improve capital efficiency. K3, 4B and Rowland shafts
are benefitting from this as highlighted above.

Saffy shaft’s ramp up profile was delivered in line with promises despite the strike. We have driven the strong ramp up
of the shaft while maintaining 18 months of available ore reserve to support the required extraction rate, putting
stoping crews in place ahead of schedule and improving crew efficiencies. We changed the top operational
management team and also deployed a highly skilled business improvement team to identify and eliminate bottlenecks
and improved infrastructure to support planned production levels and, crucially, we are taking the lessons we have
learnt from these successes and applying them at other shafts we think can benefit.

Maintaining flexibility
We intend to maintain a clear strategic focus, on the Group's mineral resources and mining and processing
infrastructure at Marikana, which has seen considerable investment in recent years, with approximately $388 million of
capital expenditure incurred in the last three years. The expenditure of recent years has resulted in an improvement in
the rate of ore reserve development and, as at 30 September 2015, the Group had immediately available ore reserves
equating to approximately 22 months of mining under normal operating and market conditions, which provides the
Group with operational and strategic flexibility with particular focus on the Generation 2 shafts.

Preserving longer term optionality
In the longer term, the Directors believe that the Group has a number of attractive brownfield expansion opportunities
that can be developed when the PGM pricing environment improves, including the K4 project and the Pandora E3 and
E4 deepening projects. As at 30 September 2015, these projects had in aggregate 30.5 million ounces of mineral
resources of platinum, palladium, rhodium and gold, including 18.7 million ounces of platinum resources.

1.3.2 Value Benefits
Over the past 18 months, we have looked hard at our Marikana operations, reviewing assets, practices, systems and
operating models.

We launched a comprehensive review of our assets to address asset utilisation, reduce the total cost of ownership,
improve capital efficiency and productivity and therefore profitability and cash flow with the aim that Lonmin improves
the quality and consistency of its earnings and reduces cost per ounce in the medium term, whilst prudently managing
risk through all cycles and improve its relative cost position on the industry cost curve.

In 2014 we announced that we aimed to achieve greater than R2 billion of value benefits over three years to 2017
through a review of our operating model, improving productivity and efficiencies and further optimization of our
process operations. We’ve achieved significant success, achieving net benefits of R526 million in 2015. Cost savings
from the total cost of ownership programme, headcount reduction combined with stringent cost control measures
totalled R800 million. Furthermore R102 million of value was generated from the permanent release of pipeline stock.
These benefits were partly offset by lower productivity which is estimated to have cost R376 million partly a
consequence of an increased level of Section 54 safety stoppages. This demonstrates the focused cost management
actions the Group has been undertaking. We continue to look for ways of enhancing productivity and efficiencies by
innovatively changing our work practices and enhancing the way we work. This is a journey and an industry-wide issue.
Lonmin remains focused on doing more and we have seen how striving to make these savings has been an excellent
way for our employees, management and unions to collaborate.

                                    2015
                                      Rm
Review of operating model            600
Total cost of ownership              200
Permanent pipeline stock release     102
Productivity                       (376)
Net value benefit                    526

The Group has already started to benefit from the implementation of the Business Plan initiatives. We believe that the
implementation of the Business Plan, including the reduction in the size of the Group's workforce and in overhead costs
and support service structures detailed above, will result in a cost reduction of approximately R0.7 billion in real terms
in the year ending 30 September 2016 (against the annual cost base for the year ended 30 September 2015) and a
further cost reduction of approximately R1.6 billion in real terms in the year ending 30 September 2017 (against the
forecast annual cost base for the year ending 30 September 2016), thereby potentially improving the Group's relative
cost per PGM ounce produced in comparison with some competitors. The Group's unit cost per PGM ounce produced
was R10,339 per PGM ounce for the year ended 30 September 2015 and the Group aims to keep its unit costs in
nominal terms broadly flat for the years ending 30 September 2016, 2017 and 2018. An independent report currently
forecasts that for 2015 the Group's position on the South Africa PGM industry cost curve (net total cash costs per 3PGE
+ Au ounce) should improve to the second quartile. Such an improvement in the effectiveness of the Group's
operations will help improve the Group's ability to operate in a low PGM pricing environment and will position the
Group to benefit from any recovery in PGM prices in the medium to long term.

2. Enhance Balance Sheet Strength

Our philosophy of preserving a conservative balance sheet with access to sufficient funds to finance both ongoing
operations and prudent and efficient capital expenditure was severely tested by the sustained deterioration of PGM
prices, and the strike of 2014, coupled with our need to renegotiate bank debt facilities against this acutely difficult
backdrop.

We examined multiple options around refinancing as our success in delivering solid and steady operational results in all
quarters was undermined by PGM prices. We concluded that amending our debt facilities and launching a $407 million
Rights Issue in November 2015 was in the best interest of Lonmin’s shareholders.

We are grateful for the continued support of our shareholders and banks through what has been an exceptionally
challenging period for the Group.

3. Our People and Relationships

Building on our relationships with our employees and unions
The unprecedented five month long strike in 2014 refocused our energy on rebuilding relations with employees and
their representative trade unions.

We believe the priority we put on this made us industry leaders, and the outstanding ramp up we saw in the wake of
the strike was the first solid evidence of this.

In the months since we made a priority of further solidifying and growing those relationships-particularly with our
unions. Given the significant changes to employee numbers which became necessary in 2015, the fact we have been
able to manage that process without disruption and with tough but mutually-respectful and productive negotiations
with unions, has shown the hard work of the last two years in this area is reaping dividends.

We are continuing with our efforts to communicate directly with employees and to reclaim our role as the primary
source of communication. We believe that this direct engagement with employees through the existing line
management structures and the periodic communication forums forms part of the way we work and the basis of
creating empowered, high performance teams. Through the leadership development and team effectiveness training
programmes, we continue to develop our managers’ capacity to manage this new form of direct engagement.
Following the BEE transaction we completed in December 2014, the Group's employees hold a 3.8% equity interest in
the principal operating companies in South Africa, through an employee profit share scheme. We believe this aligns
more closely the interests of employees and shareholders.

Management and unions also engage at regular meetings of the Future Forum that was established in December 2014
as required by the MPRDA, which aims to establish a joint working relationship between the mine, workforce
representatives, government and community representatives. We have been encouraged by the robust but
constructive engagements with unions. We believe that if we continue to deepen our relationships with our employees
and their union representatives that the wage negotiations in 2016 will take place on a much stronger platform of
respect and trust than in the past.

In addition we initiated a relationship building programme. This programme has culminated in the Relationship Charter,
which outlines our aspirations of the nature of relationship that will be built with the unions and measures that are
being implemented to give effect to the Charter. The Charter presents a real opportunity to strengthen relations with
trade unions inter alia through constructive and regular engagements (using our union engagement structures such as
the Future Forum).

We believe we have a lean, focused management team
We have implemented the changes of personnel and structures in our top team which we talked about last year and
seen immediate positive impact. Our management structure is now flatter, and our operational structure reconfigured
to increase cohesion, execution and accountability. The operating philosophy promotes operational excellence,
knowledge sharing, collaboration and consistency. We believe that the Group has experienced major benefits of this,
which are seen both in the effective, holistic oversight management has of the business, and in the empowering of key
operational staff to bring their experience and skills to bear quickly.

The new structure enables us to utilise the skilled resources we have across the mining and processing operations and
develop a common culture. This provides for our employees’ growth and development with great benefits to Lonmin.
Our new approach is also improving our ability to attract, develop and retain the best talent and, crucially, the entire
new structure is forensically focused on delivery.

Management has begun to drive through the strategic actions and we are seeing encouraging results.

4. Our Corporate Citizenship Agenda

4.1     Stakeholder Engagement

The importance of genuine and robust stakeholder engagement and relationship building has become increasingly
apparent over the past decade, given the need to understand stakeholder expectations and communicate on key issues
transparently, consistently and in a timely manner. We have identified and prioritised our stakeholder groups and
individuals and allocated relationship "owners" to each grouping. Our aim is to develop and protect Lonmin’s
relationships with all stakeholders who have a significant ability to impact Lonmin’s operations and investment case.
The renewed focus and energy on stakeholder engagement acknowledges the role of partnerships in confronting the
challenges plaguing the industry. Functional partnerships between Government, organised labour and community
leaders are essential if we are to create the necessary environment for a sustainable future and realise the true
meaning of "shared value for all".

4.2    Social Licence to Operate
Maintaining our social licence to operate through securing the trust and acceptance of communities and stakeholders is
material as they host our operations. This is achieved through:

              -  Stakeholder engagement to ensure social expectations are understood and managed;
              -  Community investment initiatives to address social issues;
              -  Transformation initiatives to meet the government’s social and economic development goals;
              -  Ethical business practices that include a commitment to upholding human rights; and
              -  Corporate and community partnerships.

This is very much work in process and is based on an acknowledgement that trust must be restored and communities
healed.

4.3     Greater Lonmin Community and Government
Alongside the Group's legal and regulatory obligations, Lonmin believes that it is necessary to earn its social licence to
operate from the people and communities which host its operations. The Group refers to the people who live in the
areas immediately adjacent to its operations and refers to them collectively as the GLC. The Group has therefore, over
the years, engaged with and invested in its local communities. Lonmin considers spend in social initiatives as an
investment and a business imperative for sustainability.

The Group's New Order Mining Rights include detailed obligations set out in social and labour plans agreed with the
South African Department of Mineral Resources. The Group is also required to achieve a compliance level of at least 
26 per cent. of ownership by HDSAs under the Mining Charter and to comply with certain obligatory targets under the
Mining Charter.

For over 20 years, the Group paid royalties into a trust fund for the benefit of the Bapo Community. The royalty stream
was subsequently converted into equity ownership as part of the three BEE transactions which were completed in
December 2014. In connection with the Bapo Community BEE transactions, the Bapo Community was also granted the
opportunity to participate in the Group's procurement and business value-chain activities. The Bapo Community
therefore forms an integral part of the Group's HDSA ownership profile which is an important aspect of maintaining the
Group's mining licences and building sustainable relationships with the communities that host its operations.

Lonmin believes in developing leadership in the communities in which it operates. For example, the Group has invested
in local schools, in the belief that education has the power to transform lives and also the money earned by those who
attend the schools will ultimately flow through to the benefit of other community members. The Group also has an
active bursary programme supporting students at university and is proud that approximately 50% of the students it
supports and sponsors have been drawn from the GLC.

Our community investment focus also ties into the impact we have on our labour sending areas as well as the local
communities who host our operations. The long-term feasibility of mining operations relies upon the wellbeing of all
these communities. Conversely, our business has a finite life span and we are responsible for the continued
sustainability of these communities. Through education, health and infrastructure programmes we aim to address the
challenges faced in the GLC, which were partially created from the legacy of migrant labour to the mines and the

historical inequalities of economic opportunity. Our programmes provide us with a pipeline of skilled local employees
and increased procurement from the local community.

The Group also donated 50 hectares of its property to the South African Government for the building of
accommodation for local community members and employees and has made significant progress including the building
of infill apartments.

Lonmin is supportive of and commits to participate in the South African government’s National Development Plan
(NDP). The NDP’s priorities include raising employment through faster economic growth and improving the quality of
education, skills development and innovation. The global economy is in a down cycle and to ensure sustainability of its
business, Lonmin has had to take rough action and sadly 6,000 jobs are affected in the short term. The long term
fundamentals of PGM’s remain attractive and Lonmin’s sustainability is important in order to create more jobs when
the global economy recovers.

4.4    Farlam Commission
The publication of Judge Farlam’s report has reminded us of the vital importance of shared value, not that a reminder
was needed. The Judge highlighted that Lonmin could have done more but he did not conclude that Lonmin broke any
laws.

We have given the Farlam Report our detailed considered review and have begun implementing its recommendations.
Details of these will be included in our Sustainable Development Report which will be available on Lonmin’s website:
www.lonmin.com

4.6     BEE Equity Ownership
In November 2014, Lonmin successfully completed three BEE transactions which cumulatively give the Group an
additional 8% equity empowerment. Lonmin accordingly achieved the target of 26% BEE ownership by 31 December
2014 as required by the Mining Charter. These transactions support the improvement and development of local
communities and align the interests of communities, employees and shareholders.

4.7     Living Conditions
This year we have seen infill hostel construction move ahead on plan, delivered 50 hectares of land for a joint
partnership project with government to provide new homes and signed a historic transaction with the Bapo
Community near our mines which sees them benefit further from our future profitability and gives them a stake in our
future success.

Acknowledgements

During the course of the year the Board welcomed Varda Shine, who joined as an Independent Non Executive Director.
Gary Nagle and Paul Smith were Glencore’s representatives on the Board and consequently resigned when their
company ceased to be a shareholder. Meanwhile Karen de Segundo, a Non-Executive Director, retired as she had
planned to do. Ben Moolman was appointed Chief Operating Officer in March, following the departure of Johan Viljoen,
and appointed to the Board as an Executive Director in June. Ron Series also joined us in August as Chief Restructuring
Advisor to drive long-term capital requirements.

We thank Gary, Paul, Karen and Johan for their contribution to the Company over their many years with us and wish
them all the very best in their future endeavours.

Conclusion

In conclusion, this year has been tough but our strategy is delivering results operationally and we have taken robust
measures to ensure our sustainability through these challenging times. We have taken to refinancing the business and
address balance sheet concerns which were thrown into sharp focus by the combination of maturing debt facilities and
low prices. This will stand us in good stead in the years ahead as the long-term PGM market remains attractive due to
more stringent emissions legislation, growing jewellery demand and the adoption of fuel cells as a real source of power.

Guidance

Going forward the remaining shafts will allow for a more sustainable and agile business. We expect that the sales
profile will be approximately 700,000 Platinum ounces in 2016, stabilising to approximately 650,000 for 2017 and 2018
and capital expenditure is anticipated to be limited to approximately $132 million and $110 million for 2016 and 2017
respectively. We anticipate that capital expenditure for 2018 will increase to approximately $188 million as the Group's
investment in stay-in-business and replacement ore reserve development capital expenditure is expected to increase.

In addition, our actions are anticipated to reduce the cost base of financial year 2016 by R0.7 billion in FY15 real terms
when compared to the current year and a further R1.6 billion in 2017 when compared against 2016, in FY15 real terms.
We aim to keep unit costs per PGM ounce in nominal terms broadly flat in line with the year ended 30 September 2015
at around R10,400 per PMG ounce, for three further years ending 30 September 2016, 2017 and 2018.

Thank You

Finally, to my fellow colleagues, this has been another tough year for all of us, but I know each and every one of you
has continued to make a significant contribution. I thank you for your hard work and dedication. Also, our banking
syndicate, our core advisors and customers, I thank you for your continued support. Brian and the Board, your
resilience and resolve have been invaluable and I thank you too.

As shareholders, I know you have felt first hand the challenges of the business over the last few years and I thank you
for your loyalty and support as we work through these.

Yours faithfully

Ben Magara
Chief Executive Officer
9 November 2015

OPERATIONAL REVIEW

Safety

Our safety strategy is centred on the belief that zero harm is achievable in mining. We record our safety performance
according to injury rates and fatality rates and how they impact on human life and production, as these are the
ultimate indicators of the success or failure of our strategies, practices and systems.

It is particularly disappointing, therefore, that our safety record deteriorated in 2015, with the LTIFR increasing to
5.41 per million man hours worked from 3.34 in 2014.

In addition, it is with deep regret that after 18 months fatality free Lonmin lost three employees to fatal accidents
during the second half of the year, despite our continued efforts to promote a safe working environment. There were
two fatalities in separate incidences at Hossy shaft resulting in the deaths of Mr Silva Cossa, a mine overseer assistant
on 19 May and Mr Mark Potgieter, a Sandvik Mining contractor on 22 July. Mr Bonisile Mapango, a winch driver at E3
shaft passed away on 31 July. Subsequent to the year end, Zilindile Ndumela, a locomotive driver at Rowland shaft was
fatally injured on 26 October. We extend our heartfelt condolences to the families, friends and colleagues of all the
deceased.

All incidents, but especially the deaths of Mr Cossa, Mr Potgieter, Mr Mapango and Mr Ndumela, remind us of the
inherent risks associated with mining and that we must never become complacent in our approach to safety. The
deterioration in our performance, which has been evident since the five month strike in 2014, indicates the real impact
that breaks in operational continuity have on employee focus. It is imperative that we redouble our efforts if we are to
achieve zero harm, which we believe is attainable, and prevent similar incidents from occurring again in the future.

We know from experience that improving safety gets incrementally harder as you move from changing systems and
equipment to changing behaviours, however the safety of our employees is paramount and our approach has to be
robust if we are to ensure that people remain safe above and below ground, at home and at work. We continue our
pro active safety management procedures, nurturing a culture focused on safety and, importantly, in order to enhance
safety and production performance, a programme is being developed to empower front line supervisors. This is
planned for implementation in 2016.

Mining Division

With the five month stoppage dominating the 2014 financial year, year on year comparisons are inappropriate. As such,
the commentary below also includes comparisons to the financial year 2013.

Overview
Tonnes mined at 11.3 million were 77.9% higher than the strike impacted prior year but 6.3% lower than 2013. This was
due to the planned decline of the Generation 1 shafts in end of lifecycle management and the depleting opencast
operations.

Production from our Generation 2 shafts was flat on 2013 as the ramp-up at Saffy shaft (up 52.9%) and improvements
at Rowland (up 5.1%) following the successful implementation of the Theory of constraints in 2014, were offset by the
significantly increased Section 54 safety shut downs at K3 and Hossy shafts.

2015 was impacted by an increase in the frequency and duration of Section 54 safety stoppages but we are encouraged
by interaction at industry level to tackle these issues and our internal focus on the Group’s safety performance. Tonnes
lost, mainly due to increased Section 54 safety stoppages and management induced safety stoppages, at 0.9 million
tonnes were lower than the strike impacted prior year but were 0.3 million tonnes higher than 2013. In total, 899,000
tonnes were lost during the year, of which 770,000 tonnes related to Section 54 safety stoppages, 102,000 tonnes to
management induced safety stoppages (MISS) and 27,000 due to labour issues. This compares to a total of 6,747,000
tonnes lost in the prior year of which 6,382,000 were lost due to industrial action, 282,000 tonnes were due to Section
54 safety stoppages and 83,000 tonnes were due to MISS.

Marikana Ore Reserves
The ore reserve position of the Marikana mining operations at 4.1 million square metres represented an average of
22 months production.

At the Generation 2 shafts the increase in the ore reserve position at K3 shaft was driven by development on the UG2
reef. Rowland shaft increased the ore reserve position on the UG2 reef as a result of excellent development
achievements and the Merensky reef where capital was invested to develop an additional half level. Saffy shaft further
increased the ore reserve position during 2015 due to the completion of the capital development on levels 19 and 20.
The ore reserve position at Saffy shaft is now sufficient to sustain steady state and production, and the rate of
development is planned to reduce to a level where the ore reserve position is maintained into the future. The ore
reserve at the 4B/1B shaft was maintained at a healthy level and at Hossy shaft the increase was a result of capital
invested to extend the on reef access development deeper to 14 and 15 levels before the decision was taken to orderly
shut this shaft down.

The increase in ore reserve position at the Generation 1 shafts can be attributed to an increase in ore reserve at E2
shaft, where on reef development below level 10 has resulted in additional ore reserve becoming available.

Productivity
Productivity measured as square meters per mining employee at our Generation 2 shafts was significantly higher than
the strike impacted prior year and slightly down on 2013.

Significant improvements in productivity were made at Saffy shaft, which has been ramping up to full production, and
at Rowland where the implementation of the Theory of Constraints management philosophy was first trialled. These
improvements are the result of the integration of this management philosophy into the shafts culture more widely,
together with the implementation of other improvement initiatives supported by the Business Support Office.

These improvements have offset declines in productivity at K3, 4B/1B and Hossy. Production performance at K3 was
negatively impacted by the high frequency and lengthy duration of DMR safety stoppages during the second and third
quarter of the year. This was further exacerbated by poor employee work attendance. Hossy shaft experienced two
fatal accidents within a two month period during the third quarter and this resulted in lengthy DMR safety stoppages,
which severely impacted production.

Business Improvement Initiatives
A number of business improvement initiatives, supported by the Business Support Office and aimed at increasing
productivity and improving performance, are currently being implemented.

After the successful pilot programme conducted at Rowland shaft, the Theory of Constraints management philosophy is
being rolled out to other operations under the guidance of knowledgeable personnel within the Business Support
Office. Good progress has been made at Saffy shaft during the year and programmes have recently been initiated at 4B
shaft and K3 shaft. The roll out at these shafts will continue into 2016.

Improved stope crew output was targeted as an objective during the 2015 financial year and the main initiative that
was implemented to drive this was to improve the performance of the population of stoping crews that made up the
bottom 20% at each of the Generation 2 shafts. This initiative was implemented with the assistance of experienced on
the job training personnel within the Business Support Office. Good progress has been made during the year, with the
average performance of the worst performing 20% population being improved from 150 square meters per crew per
month at the beginning of the financial year, to just over 200 square meters at the end of the financial year. This
programme will continue during 2016 with the objective of improving the performance of this bottom 20% of crews to
an average of 220 square meters per crew per month by the end of the financial year.

An improved stoping crew bonus system has been designed and is planned for implementation early in the 2016
financial year. The rate earned per production unit has been increased in the improved bonus system and the rate
improvement has been geared to favour higher performers. It is anticipated that this will incentivise crews and lead to
a much improved performance once it is implemented.

One of the major causes of lost production during 2015 was employee absenteeism. A programme is being developed
to better understand the drivers of this behaviour and then to develop and implement a plan to address the underlying
causes in order to improve attendance and thereby production performance.

In order to enhance safety and production performance, a programme is being developed to empower front line
supervisors. This is planned for implementation in 2016.

Overview of Marikana Mines

Generation 2 shafts
Our Generation 2 shafts represent around c.80% of total production.

K3 shaft
K3, our largest shaft produced 2.7 million tonnes. This was 0.4 million tonnes lower than 2013 of which 0.2 million
tonnes was due to an increase in tonnes lost due to Section 54 safety stoppages. Poor employee attendance was also a
major contributor to production losses.

Rowland shaft
Rowland increased production on 2013 by 5.1% reflecting the positive impact of management actions and the Theory
of Constraints projects successfully completed at this shaft which were aimed at de-bottlenecking operations.

Saffy shaft
Saffy shaft recorded an increase of 52.9% on 2013 demonstrating the continued good progress that we have made with
our promised ramp up. Saffy is reaching steady state production and mined a record 187,621 tonnes in July. The ore
reserve position was improved further during the year and the full complement of stoping crews has been deployed at
the operation. The focus has now shifted to improving the performance of the stoping crews and the introduction of
the Theory of Constraints management philosophy to de-bottleneck targeted areas and sustain output at more than
90% of shaft capacity.

4B/1B shaft
4B/1B produced 1.6 million tonnes which was 0.2 million tonnes lower than 2013 of which 0.1 million tonnes was due
to an increase in tonnes lost due to safety stoppages. In addition, the aging mechanized equipment at 1B shaft has
become less reliable and availabilities have dropped off significantly, adversely impacting stoping output at the shaft.
The sharp drop off in metal prices during the year coupled with underperformance triggered a review of the future
viability of 1B shaft. The review concluded that the shaft was not financially viable at current prices and performance
levels and a decision was taken to place the 1B portion of the mine on care and maintenance as of the end of the 2015
financial year.

Hossy shaft
Hossy saw a decrease in production of 0.1 million tonnes driven by safety shut downs following the fatalities in May
and July. A review of the performance of Hossy shaft was conducted in July and it was concluded that the high shaft
costs, driven by poor mechanised equipment efficiencies, could not be sustained in the current low metal price
environment. As a result, a decision was taken to place the shaft on orderly closure. All development was therefore
stopped at the end of the 2015 financial year and the ore reserve that remains will be stoped out over the next 
18 months where after the shaft will be placed on care and maintenance.

Generation 1 shafts
Our Generation 1 shafts are reaching their end of lives and, as expected, productivity has declined.

Newman shaft

Newman shaft produced 0.8 million tonnes which was a decrease of 19.2% on 2013 as this shaft is nearing the end of
its life. Newman has been in planned decline for a while and it is envisaged that the shaft will be mined out by the end
of the 2016 financial year at which time it will be placed on care and maintenance.

Pandora Joint Venture
Pandora production (100%) at 0.5 million tonnes was 4.8% lower than 2013 due mainly to 0.1 million tonnes lost due to
Section 54 stoppages.

Western 1, East 1 and East 2 shafts
W1, East 1, East 2 are also shafts at the end of their lives and together produced 0.7 million tonnes compared with 1.0
million tonnes in 2013. These shafts will continue to be managed by contractors and run for cash. W1 and E1 have been
included in the Business Plan for the 2016 financial year only and their viability will be re assessed at the end of the
financial year. E2 is planned to complete mining at the end of the 2017 financial year.

K4 shaft
Activity at K4 shaft was limited during the year with production of 48,571 tonnes. Given the current economic climate
and our rationed capital expenditure plans, we have re considered our strategy of conducting early mining in
preparation of a full ramp up at K4 and the shaft has been placed on care and maintenance once more.

Opencast
Production from our depleting Merensky opencast operations of 229,930 tonnes was 103,000 tonnes, or 31.0%, lower
than 2014 as the operations reach the end of their life. Opencast operations operated throughout the strike in the prior
year period, albeit at a reduced level of output. Mining ceased at the end of the 2015 financial year and all that remains
to be done is the filling of the final void and final rehabilitation of the area that is planned for completion at the end of
the second quarter of the 2016 financial year.

Process Operations

Concentrating
Total tonnes milled in the year at 11.8 million tonnes were 0.5 million tonnes higher than tonnes mined due to the
healthy stock piles ahead of the concentrators which were drawn down due to the impact of section 54 safety
stoppages on the mining production. Tonnes milled in 2015 were 5.7 million tonnes higher than the strike impacted
prior year, as the concentrating operations were also impacted by the strike action and shut down. Compared to 2013
tonnes milled were flat despite only utilising six out of our seven Marikina concentrators as part of our measures to
reduce costs, demonstrating our ability to scale our operations as required. The impact of electricity constraints during
the year was 0.1 million tonnes as the Group’s strategy is to manage electricity constraints via the concentrators,
minimising the impact on the mining operations and smelters.

Underground milled head grade was 4.51 grammes per tonne, an increase of 0.7% compared to 2014 due to stockpile
movements at a higher grade. Overall the milled head grade was 4.47 grammes per tonne, up 1.8% on 2014 due to the
increase in underground grade and a decrease in lower grade opencast ore in the mix.

Underground and overall concentrator recoveries for the year at 86.8% and 86.7% respectively continue to be strong.

Together, this resulted in Platinum-in-concentrate for the year of 740,315 saleable ounces, which was 94.6% higher
than the strike impacted prior year and 1.4% lower than 2013.

Smelting
As reported earlier in the year, the Number One furnace was safely stopped in early December 2014 following the
detection of a leak. The repairs to the furnace crucible and the additional maintenance work that was brought forward
was completed within the scheduled three months and first matte was successfully tapped on 9 March 2015. The
Number Two furnace was also safely stopped at the end of December 2014 following condition monitoring and the
detection of electrode breaks. The repairs to this furnace were made successfully and the first matte tap was in January
2015. The three smaller Pyromet furnaces were restarted in early December 2014 to increase smelting capacity during
this time. These furnaces will continue to provide smelting capacity throughout the year as the Number Two furnace
was taken down on 26 September 2015, as planned, for the scheduled rebuild and to implement design upgrades on
the roof and off-gas system. The build-up of concentrate was processed during the second half of the year
demonstrating the benefit of the additional smelting capacity available due to the commissioning of the Number Two
furnace in 2012.

Base Metals and Precious Metal Refineries
Both the Base Metal Refinery (BMR) and the Precious Metal Refinery (PMR) delivered an outstanding performance.
Platinum ounces produced of 759,695 were the highest since 2007 and were up 74.2% on the strike impacted prior
year and 7.1% on 2013. PGMs produced of 1,447,364 ounces were the highest since 2011 and were up 64.1% on the
strike impacted prior year and 8.3% higher than 2013.

The instantaneous recovery rate achieved in 2015 of 87.2% was outstanding and represents a 1.0 percentage point
increase on 2014 and a 2.2 percentage point increase on 2013. The continuous year on year improvement is a result of
extensive optimisation and improvement plans across our processing operations that continue to yield positive results.

Other Assets

Limpopo
The deadline for Shanduka to exercise its option over Limpopo is 30 April 2016. However, the pending finalisation of
the Pembani and Shanduka merger will most likely result in a re-assessment of the project and a potential re-negotiation
around the current transaction completion date.

Akanani
Akanani offers the prospect of a large, long-life, low cost and highly mechanised mine which gives us optionality in the
long-term.

Exploration International

North America
Lonmin is exploring for PGM deposits around the Sudbury Basin in Ontario, Canada in joint ventures with Vale S.A. and
Wallbridge Mining Company Limited. Resource drilling is continuing on the Vale JV Denison property targeting shallow
PGM bearing deposits. Lonmin has recently secured the rights to explore the Parkin properties as part of the North
Range Joint Venture with Wallbridge and exploration will continue on these and several other properties around the
Sudbury Basin in 2016.

Europe
Lonmin signed a joint venture with Koza UK Ltd on two of our Northern Ireland licences for gold, silver and base metals.
Geochemical and geophysical surveys with preliminary drilling were carried out on targets. PGM targets were assessed
with preliminary drilling on two licence areas not covered by the joint venture and analysis is ongoing.

Exploration – South Africa
Our Vlakfontein prospecting right was not renewed and accordingly all exploration activities on the property have now
ceased. Lonmin has a joint venture with Boynton in the eastern Bushveld but is involved in arbitration proceedings
against Boynton on the basis that they failed to comply with a warranty to deliver an unencumbered asset to the joint
venture. Boynton has appealed the initial Judgement given in Lonmin’s favour. The appeal will be heard in November
2015.

Capital Expenditure

Capital expenditure for 2015 was tightly controlled and scaled back from our original guidance of $250 million to $136
million in light of the persisting low PGM prices. Capital spend was minimised whilst ensuring compliance to regulatory
and safety standards to ensure safe and efficient operations. Essential sustaining capital was spent at the continuing
shafts to maximise shaft capacity and reduce unit costs. At the concentrators the majority of the Bulk Tailings
Treatment plant was deferred and all other non critical expenditure was cut back or deferred. The weaker ZAR/US$
exchange rate also assisted the reduction by around $30 million.

                           2014-Act 2015-Act 2016-Est 2017-Est 2018-Est
                                 $m       $m       $m       $m       $m
K3                               19       19       16        6        3
Saffy                            10        8        1        2       24
Rowland                           9       18        3        5       11
Rowland MK2                       -        -       15       27       29
K4                                8       19        -        -        -
Hossy                             7        7        -        -        -
Other mining                     10       12       25       25       40
Total Mining operations          64       84       60       64      107
Concentrators                    12       17       44       18       15
Smelting & Refining               9       27       21       19       52
Total process operations         21       43       64       37       67
Hostel / Infill Apartments        5        7        5        6        5
Other                             2        2        3        2        9
Total                            93      136      132      110      188

Comprehensive assessment of capital projects has been undertaken with the aim of limiting capital expenditure to
levels required to satisfy regulatory and safety standards and essential sustaining capital expenditure in the continuing
shafts and for a limited number of development projects. Capital portfolio optimisation tools have been utilised with
the aim of ensuring that capital expenditure is invested only in the most cash generative development projects
available to the Group. The Group expects to limit its capital expenditure in 2016-2018.

Future K3 project capital is planned to be spent on ore reserve development to access an additional two levels (25 and
26) and at Saffy capital is anticipated to be spent to access additional levels (21 28) via a sub decline. Extraction of the
Rowland MK2 UG2 resource via the existing Rowland shaft infrastructure is anticipated to result in production from this
area from 2018 onwards. Concentrator capital includes the Bulk Tailings Treatment project which allows for the re-mining
of the Eastern Tailings Dam 1. This was partially deferred from 2015 and going forward is anticipated to be
financed by third party funding. Sustaining capital across the operations is anticipated to revert to normal levels in
2018.

Capital available for employee accommodation is lower than the Group’s Social and Labour Plan commitment to spend
R500 million between 2015 and 2019.

People

Employee Relations
The employee relations environment at Lonmin has stabilised over the last 12 months, evidenced by the successful
completion of the voluntary separation programme (VSP) and the Section 189 consultations in October 2015. While the
environment has remained stable, more work is required and is being done to strengthen relations with our employees
and the unions to mitigate any possible risk of operational disruptions. Our view and commitment remains to be a
multi union environment where all employees have a voice through their union of choice.

The limited organisational rights agreements we have with our minority unions, UASA and Solidarity, are based, on the
same agreement that was concluded with AMCU while it was a minority union and amongst other things entitle the
minority unions to stop order deduction facilities, access to the workplace and two full time union representatives.

Our focus in the first half of 2015 was on a rigorous process of rebuilding relations with AMCU after last year’s five-month
long strike. This included the creation of a Relationship Charter that maps out the legal aspects of the
Company’s relationship with the majority union as well as aspirations, expectations, accountabilities and commitments
from both parties to enable the relationship. A series of workshops were conducted across all leadership, union and
management levels to deepen understanding and strengthen relationships. Union engagement structures have been
institutionalised and regular meetings are held with management to update unions on the status of the business.
Training is provided to shop stewards on legislative matters, business skills and the requirements of their roles and
responsibilities.

Joint task teams between management and the union was set up to ensure progress is made on the non-financial
needs that were raised during negotiations in 2014, but that were not finalised at the time of the wage agreements.
These include broader stakeholder engagement in line with the generic processes of consultation and social dialogue,
and will cover among other things, productivity improvements, housing and living conditions, employee indebtedness,
skills development, and shareholding and profit sharing. Management and unions (excluding the majority union) also
engage at regular meetings of the Future Forum that was established in December 2014 as required by the MPRDA,
which aims to establish a joint working relationship between the mine, workforce representatives, government and
community representatives. We have been encouraged by the robust but constructive engagements with unions. We
believe that if we continue to deepen our relationships with our employees and their union representatives that the
wage negotiations in 2016 will take place on a much stronger platform of respect and trust than in the past.

Workforce Profile
As at the end September, our total workforce was 35,669, compared to 38,292 in September 2014, of which 26,968
were permanent employees and 8,701 were contractors. 84% of the overall workforce is South African, with 16% still
being migrant. 8.8% of our permanent employees are women. Our management headcount as at 30 September 2015
was 475 compared to 516 at 30 September 2014.

Employment Equity
Lonmin embraces transformation as a business imperative. We are committed to playing our part in addressing historic
inequalities and creating the conditions in which current and future generations can succeed in creating a shared
purpose. The Mining Charter requires a focus on increasing the number of historically disadvantaged South Africans
(HDSAs) in management and the number of women in mining.

Community Relations and Our Corporate Citizenship Agenda

Community Value Proposition (CVP)
The CVP project, now in its second year, has enabled the Company to deliver focused social investment that is
impactful and sustainable. Our investment includes community education and skills development, community
healthcare, infrastructure development and enterprise development.

Our Corporate Citizenship Agenda
We engage in a range of activities aimed at uplifting our communities. These include education, health and social
infrastructure projects.

Social and Labour Plan (SLP)
Our commitment to corporate citizenship defines our duty to contribute to the wellbeing and development of the
communities that host, and are affected by, our operations. This duty is formalised in the Social and Labour Plans
obligations under the terms of our mining rights, and such plans are submitted for approval on a five year basis. Despite
numerous challenges confronted during 2015, we remain committed to delivering on the commitments of our Social
Labour Plans, which are focused on accelerating transformation and implementing measures to significantly improve
the living conditions of our employees, host communities and major labour sending communities.

However, given the current economic climate, subdued market conditions and consequential downscaling of the
organisation, Lonmin has commenced with the review of the current SLPs. Of particular focus is the remaining three
year period: 2016-2018. The intended outcome of the review is to align the SLPs to the Company’s new reality by way
of revising our commitments via a Section 102 application to the regulator (DMR) as per the Mineral and Petroleum
Resources Development Act.

BEE Equity Ownership
The Company’s HDSA ownership in its prospecting and mining ventures is now 26% as required under the Mining
Charter. The three BEE transactions involved to increase this ownership from the previous 18% were designed to
support the improvement and development of local communities and align the interests of communities, employees
and shareholders:

Bapo transaction
The Bapo Ba-Mogale Traditional Community is a key shareholder in Lonmin. The intention of the BEE deal with the
community is to share the value created by the Company and to assist in building our host community. The value that
accrues to the Bapo community should make a real difference to their lives and help to improve living conditions and
provide Lonmin with a stable and peaceful operating environment, which is important to successfully operating the
business.

The Bapo Transaction involved a royalty for equity swap and the sale of the Bapo 7.5% stake in the Pandora Joint
Venture to a Lonmin subsidiary. This transaction provided the Bapo Community with equity participation of circa 2.25%
at Plc level and a deferred royalty payment of R20 million per annum payable by Lonplats (Eastern and Western
Platinum combined) in each of the ve years following completion of the transaction. The BEE accreditation arising
from this royalty for equity swap transaction amounted to 2.4%.

The transaction includes a commitment from Lonmin to provide procurement opportunities to members of the Bapo
community of at least R200 million over an initial 18-month period. The first such contract was finalised in March 2015
involving the supply of equipment to move ore between shafts. Some 200 Bapo community members received training
to fulfil this contract. A further stock pile management and movement contract was finalised in September 2015. These
contracts will bring additional benefits to the community through job creation and other multiplier effects. Other long-
term opportunities are currently being identified that will not only achieve the committed amount during the stipulated
period but also bring additional benefits to the community through job creation and other multiplier effects.

Employee Profit Share Scheme (EPSS)
The EPSS was implemented in 2014 and aims to provide our employees with economic partnership and ownership
whilst simultaneously sharing the responsibilities and involvement that this ownership brings. The implementation of
this EPSS enabled Lonmin to receive an HDSA equity accreditation of 3.8%.

Community trusts
2014 saw the establishment of two separate community trusts. Each trust holds 0.9% of the ordinary shares in
Lonplats, and is entitled to dividend payments which have been mandated for upliftment projects in the respective
communities. To the extent that no dividend is payable in a particular year, each community trust will be entitled to a
minimum annual payment of R5 million escalating in line with CPI each year. While these transactions have been
successfully concluded, there has been a challenge to the transaction by a faction within the Bapo community. Lonmin
continues to engage with all stakeholders to resolve the issues of concern.

Farlam Commission of Inquiry Report
The release of the Marikana Commission of Inquiry: Report on matters of public, national and international concern
arising out of the tragic incidents in Marikana in the North West Province (the Farlam Report) to the broader public in
June 2015 was a vital step towards achieving healing. The Farlam Report is of huge significance for all South Africans
and Lonmin is grateful for the enormous effort by so many people which made the report possible.

We can never forget that 44 people, mostly Lonmin colleagues, died in August 2012, in the period leading up to, during
and after the week that changed our lives. This report is about them, their families and the people of Lonmin whose
lives were touched by those events.

Lonmin gave its full support to the Commission which we believe was essential if South Africa is to build sustainable
peace. This was not an easy process, requiring intensive introspection. Immediately after the report was released we
undertook as a Company to consider its findings in detail and Lonmin has taken these lessons on board and the
implementation of which is underway.

MARKET REVIEW

Overview

During the year under review, the platinum price has fallen unsustainably and the metal is now oversold. The deficit
market of 2014 is now shifting back towards balance as the recovery of supply closes the gap to demand.

Autocatalyst demand is growing, particularly in Western Europe with the introduction of Euro 6 emissions legislation
for all vehicles in 2015. Platinum demand was supported by buying on price dips in late 2014 and early 2015.

After significant growth, Chinese jewellery demand is forecast to fall by 7% this year. Sales have been affected by the
falling local stock market, fewer weddings and lower platinum jewellery marketing expenditure. Fabricators did not use
the weaker price environment as an opportunity to stock up throughout the year. However, the strongest buying was
evident in September, giving leave for cautious optimism for a recovery as retailers destock.

Sales

In 2015 Lonmin sold 751,560 ounces of Platinum into the market. Platinum sales contributed 64% of our turnover.
Palladium was the second highest contributor to the revenue basket with the 347,942 ounces, sold constituting 19% of
Lonmin’s income. Combined sales of Rhodium, Ruthenium and Iridium contributed a further 9% and Gold and Base
Metals made up the balance.

PGM Prices

During the financial year platinum underperformed both palladium and gold. The recovery of platinum supply,
combined with downgrades to global growth and the softening in jewellery sales were primary reasons for platinum’s
underperformance.

At the start of the 2015 financial year, the platinum spot price traded at $1,274/oz but ended the year at $904/oz, a
drop of 29%. Compared to 2014, average prices were down 20% at $1,134/oz for the year.

Rhodium performance also impacted the PGM basket, with excess selling resulting in a 38% decline during the financial
year to end $760/oz.

Palladium outperformed on a relative basis, but was hit by news of slowing growth in China impacting car sales and
therefore palladium demand. Prices were down 6% compared to the previous year and fell 13% during the course of
2015. The announcement of stimulus measures by China and the possibility of increased gasoline vehicle sales owing to
the VW scandal saw prices recover from below $600/oz to close to $700/oz by financial year end.

Market Outlook 2016

Reporting of how the VW diesel crisis might effect PGMs has been varied. The story broke in the US and added to the
negative view of diesels that has prevailed in Europe for much of the past year. However, the crisis highlights the need
for tightened and harmonised legislation worldwide which would require more platinum demand.

The diesel market is vital for platinum, but less so for palladium and rhodium. The platinum used in heavy duty diesels
is largely ‘captive demand’, as diesel powertrains are expected to be the dominant choice for the foreseeable future.
The risk applies only to light duty vehicles, where gasoline vehicles with much lower platinum content are a ready
substitute. Nonetheless, diesel remains essential to meet stringent CO2 targets in Europe. Furthermore, outside Europe
the fundamentals remain in place for growing platinum autocatalyst demand, as half of the world’s vehicles still do not
comply with the latest emissions legislation, which would benefit demand for platinum.

Supply in 2015

The global primary supply forecast is 5.8 Moz for 2015, a 17% recovery on 2014, but continuing the downward
production trend since 2006. South African supply is forecast to increase by 32% y-o-y to 4.1 Moz, while output from
Zimbabwe drops 10% y-o-y to 363 koz and price-induced guidance revisions in North America may result in a 4%
decrease in production.

The basket price has fallen below the 50th centile of the cost curve of production; an unsustainable level. In 2015,
around 4% of global primary supply has been closed or deferred, with substantial capital expenditure postponed. So
far, producers have cut CAPEX and announced delays to shafts and some closures.

Forced closures of mines or shafts may be inevitable across the industry in 2016, as minor adjustments to supply will
not be enough to rebalance the market if current low prices were to prevail.

Demand in 2015

Autocatalysts remain the main end use for platinum, palladium and rhodium, driven by tightening emissions legislation
and rising vehicle ownership around the world. Total autocatalyst demand (diesel + gasoline + non road) is just ahead
of jewellery, but jewellery in 2015 is expected to surpass diesel autocatalyst demand.

MINERAL RESOURCES AND MINERAL RESERVES

2015 Mineral Resources

Main features of the Lonmin Mineral Resources as at 30 September 2015:

- Attributable Mineral Resources were 182.9 million ounces of 3PGE+Au in 2015, an increase of 3.8 million
  ounces from 2014.
- Revisions to the South African Mineral Resource estimates were confined to the Marikana, Pandora and
  Akanani properties. The Mineral Resources at Marikana (excluding tailings) decreased by 0.48 million ounces
  3PGE+Au in 2015. This is attributed to the net effect of an increase in the Merensky Mineral Resources (0.09
  million ounces) being offset by a decrease of the UG2 Mineral Resources (0.57 million ounces). The Merensky
  Measured and Indicated Mineral Resources decreased by 0.32 million ounces whereas Inferred Mineral
  Resources increased by 0.41 million ounces, due to re-evaluation after consideration of depletions. The
  decrease in UG2 Mineral Resources of 0.57 million ounces is the net result of mining depletion (0.96 million
  ounces), an increase of 0.68 million ounces from additions and reassessment of geological losses, and a
  decrease of 0.29 million ounces as a result of orebody re-evaluation.
- The Pandora Mineral Resource increased by 1.7 million ounces of 3PGE+Au, the result of Lonmin's increase in
  the attributable proportion from 34.85% to 41.00% which was offset by mining depletion.
- The Akanani Mineral Resources increased by 2.6 million ounces of 3PGE+Au in 2015, the result of re-evaluation
  of the geological structure and grade estimates.
- The Marikana Tailings, Limpopo and Loskop Mineral Resources were unchanged during 2015.
- Revisions to the non South African platinum Mineral Resources have been reported for the Denison 109
  Footwall deposit in Canada. Changes to the Mineral Resource classification were made by converting 35,000
  ounces of attributable 2PGE+Au metal from the Inferred to the Indicated confidence category.
- The Mineral Resources for the Bumbo base metal and gold in Kenya have been reported unchanged in 2015.

2015 Mineral Reserves

Main features of the Lonmin Mineral Reserves as at 30 September 2015:

     - Attributable Mineral Reserves were 36.3 million ounces of 3PGE+Au in 2015, a decrease of 6.1 million ounces
       from 2014. The change is attributed to depletions at Marikana and the removal of the Mineral Reserves at
       Limpopo.
     - The Marikana attributable Mineral Reserves for 2015 are 34.7 million ounces of 3PGE+Au, a decrease of 0.8
       million ounces with a corresponding decrease of 13.7 million tonnes ore material.
     - The Proved Mineral Reserve category increased by 0.4 million ounces of 3PGE+Au. The net effect is attributed
       to conversions from the Probable to the Proved confidence category. The increase in the Saffy shaft primary
       reef development had a notable influence in the Proved Mineral Reserve category.
     - The latest version of the Lonmin Long Term Plan (LTP) was approved in July 2015 and thus applied in
       determining the Mineral Reserves for reporting in 2015. This LTP accounted for capital deferrals and
       curtailments where relevant.
     - A decision to curtail the Hossy shaft operations due to economic considerations has led to the downgrading of
       c.3.8 million tonnes of ore material in 2015 of the deeper section of the Hossy Sub Incline Mineral Reserve that
       was reported in 2014. Study work is ongoing to assess feasibility for future classification.
     - Limpopo has been on care and maintenance since 2009. The reporting of Mineral Reserves in prior years was
       pending the outcome of study work. The current depressed economic conditions have resulted in no
       progression of the study, and consequently, the entire Mineral Reserves of 5.32 million ounces of 3PGE+Au
       contained in 51.7 million tonnes of ore material has been removed in 2015. Inclusion of future Mineral
     - Reserves will depend on the progression of the mining study and favourable commodity prices.
       The Pandora attributable Mineral Reserve increased by 0.1 million ounces to a total of 0.9 million ounces
       3PGE+Au. This is due to the increase in the attributable portion to Lonmin Plc from 34.85 to 41.00%.

PGE Mineral Resources (Total Measured, Indicated & Inferred)1, 4, 5

                                30-Sep-2015                      30-Sep-2014
                                  3PGE+Au                          3PGE+Au
Area                        Mt    g/t      Moz    Pt Moz     Mt    g/t      Moz    Pt Moz
Marikana                 742.2   4.92    117.4      70.6  751.9   4.87    117.8      71.0
Limpopo(2)               128.8   4.07     16.8       8.4  128.8   4.07     16.8       8.4
Limpopo Baobab shaft      46.1   3.91      5.8       3.0   46.1   3.91      5.8       3.0
Akanani                  233.1   3.90     29.2      12.0  216.0   3.84     26.7      10.9
Pandora JV                77.3   4.65     11.5       7.0   65.8   4.65      9.8       6.0
Loskop JV(3)              10.1   4.04      1.3       0.8   10.1   4.04      1.3       0.8
Sudbury PGM JV(3)          0.2   5.86     0.04      0.02    0.4   6.30     0.07      0.04
Tailings Dam(3)           22.5   1.10     0.80       0.5   22.5   1.10      0.8       0.5
Total Resource         1,260.2   4.51    182.9    102.3 1,241.4   4.49    179.1     100.5

Notes:
(1) All figures are reported on a Lonmin Plc attributable basis, the relative proportions of ownership per project.
(2) Limpopo2 excludes Baobab shaft.
(3) Loskop and Sudbury PGM JV exclude Rh, due to insufficient assays, and therefore 2PGE+Au are reported. Tailings
    Dam exclude Au, due to assay values below laboratory detection limit, and therefore are reported as 3PGE.
(4) Resources are reported inclusive of Reserves.
(5) Quantities and grades have been rounded to one or two decimal places, therefore minor computational errors may
    occur.

PGE Mineral Reserves (Total Proved & Probable)1, 3

                             30-Sep-2015                       30-Sep-2014
                                3PGE+Au                           3PGE+Au
Area                      Mt     g/t      Moz    Pt Moz      Mt    g/t      Moz    Pt Moz
Marikana               263.8    4.10     34.7      21.2   277.5   3.98     35.5      21.7
Limpopo(2)               0.0              0.0       0.0    42.4   3.20      4.4       2.2
Limpopo Baobab shaft     0.0              0.0       0.0     9.4   3.16      1.0       0.5
Pandora JV               6.6    4.09      0.9       0.5     6.0   4.11     0.79       0.5
Tailings Dam(4)         21.1    1.10      0.7       0.5    21.1   1.10      0.7       0.5
Total Reserve          291.5    3.87     36.3      22.2   356.4   3.70     42.4      25.3

Notes:
(1) All figures are reported on a Lonmin Plc attributable basis, the relative proportions of ownership are per project.
(2) Limpopo excludes Baobab shaft.
(3) Tailings Dam exclude Au, due to assay values below laboratory detection limit, and therefore are reported as 3PGE.
(4) Quantities and grades have been rounded to one or two decimal places, therefore minor computational errors may
    occur.

FINANCIAL REVIEW

Overview

The 2015 financial year was underpinned by a solid operational performance which saw the Group achieve the highest
platinum sales in eight years. This was achieved despite the impact of Section 54 safety stoppage challenges and the
shutdowns in our smelter complex during the first half of the year. The financial benefit of this strong performance
was, however, significantly diluted by the sustained low PGM price environment which has persisted throughout the
financial year, putting immense pressure on the Group’s profitability and cash flows.

The significant increase in sales volume when compared to the strike-impacted 2014 financial year was therefore
somewhat offset by the impact of the decline in PGM prices. The focus on cost containment in the low PGM price
environment continued during the year. The cost of production per PGM ounce reduced year on year by 23.6% to
R10,339 compared to R13,538 for the strike-impacted prior year. When comparing the 2015 cost of production per
PGM ounce to 2013, the unit cost reflects a compounded annual increase of only 6.1% despite above inflation wage
increases as well as an increase in production losses associated with safety stoppages. The Group’s continued focus on
cash conservation measures and robust cost control system is evident in the reported unit cost for the year, especially
the reduction in the unit cost for the fourth quarter to R9,841 per PGM ounce. Our net debt position at 30 September
2015 amounted to $185 million, well within the available debt facilities of $543 million.

We, the Board and executive management have reviewed the Group's business and capital structure and developed
the Business Plan in order to be able to deal effectively with the impacts of a continuation of current low PGM prices.
Key elements of the Business Plan are the reduction of fixed cost expenses, removal of high cost production and the
minimising of capital expenditure while preserving the ability of the business to increase production when PGM prices
improve. The restructuring costs associated with the implementation of the Business Plan which largely consist of
retrenchment costs have been separately disclosed as special costs in the 2015 financial year.

The reduced production profile and revised PGM price outlook in the Business Plan have resulted in the downward
revision of estimated future cash flows from the Marikana operations resulting in the value in use declining below the
carrying amount of the non financial assets of the operations. As a result a special impairment charge of $1,465 million
is reflected in the financial statements. Furthermore, similar impairment assessments on our Limpopo and Akanani
assets have resulted in full impairment of these assets, with a further special impairment charge of $346 million being
reflected in the financial statements.

The Board’s review of the Group’s capital structure has resulted in significant steps being taken to strengthen our
financial position. The announcement of our results coincides with the launch of a Rights Issue seeking to raise
$407 million in gross proceeds, before deducting share issue costs and foreign exchange charges. In addition, the terms of
our debt facilities will be revised, subject to a successful Rights Issue. Details of the Rights Issue are included in our
Rights Issue Prospectus and proposed amendments to debt facilities are included below.

Income Statement

The $186 million movement between the underlying operating loss of $134 million for the year ended 30 September
2015 and the underlying operating profit of $52 million for the year ended 30 September 2014 is analysed as follows:

                                                                             $m
Year to 30 September 2014 reported operating loss                          (255)
Year to 30 September 2014 special items                                      307
Year to 30 September 2014 underlying operating profit                         52

PGM volume                                                                   541
PGM price                                                                  (259)
PGM mix                                                                       24
Base metals                                                                   22
Revenue changes                                                              328
Cost changes (net of positive foreign exchange impact of $117 million)     (514)

Year to 30 September 2015 underlying operating loss                        (134)
Year to 30 September 2015 special items                                  (1,884)
Year to 30 September 2015 reported operating loss                        (2,018)

Revenue

Total revenue for the year ended 30 September 2015 was $1,293 million, an increase of $328 million or 34%, compared
to prior year revenue of $965 million.

There was an increase in sales volumes compared to the strike impacted prior year. The impact of this volume increase
was an increase in revenue of $541 million.

PGM prices continued to decline during the year under review. The impact on the Group’s average prices achieved on
the key metals sold is shown below:

                                             Year ended 30 September
                                                 2015           2014
                                                 $/oz           $/oz
Platinum                                        1,095          1,403
Palladium                                         718            775
Rhodium                                           998          1,050
PGM basket (excluding by-product revenue)         849          1,013

The US Dollar PGM basket price (excluding base metals) was 16% lower compared to the 2014 average price. This
resulted in a $259 million reduction in revenue. However, the Rand basket price (excluding by-products) reduced only
by 4% as a result of the relatively weaker Rand.

The mix of metals sold resulted in a positive impact of $24 million mainly due to the higher proportion of platinum sold
compared to other refined metals. Base metal revenue increased by $22 million primarily as a result of the increase in
volumes sold.

Operating costs

Total underlying operating costs for the year increased by $514 million primarily as a result of the increase in
production levels compared to the strike-impacted prior year. This increase was partially offset by the positive foreign
exchange movements on the back of the weaker Rand during this period. A track of these changes is shown in the table
below.

                                                                     $m
Year ended 30 September 2014 – underlying cost                      913

Increase / (decrease):

Marikana underground mining                                          286
Marikana opencast mining                                            (13)
Limpopo mining                                                       (1)
Concentrating, smelting and refining                                  87
Overheads                                                             15
Idle fixed production costs excluded from underlying costs in 2014   289
Operating costs                                                      662
Ore, concentrate and other purchases                                  16
Metal stock movement                                                (62)
Foreign exchange                                                   (117)
Depreciation and amortisation                                         14
Cost changes (net of the positive foreign exchange impact)           514

Year ended 30 September 2015 – underlying costs                    1,427

Marikana underground mining costs increased by $286 million, or 47%, primarily as a result of the increase in volumes
produced during the year compared to the strike impacted prior year. The Marikana opencast mining costs reduced by
$13 million or 62% due to the decrease in production as this operation depleted and mining ceased at the end of
September 2015.

Concentrating, smelting and refining costs increased by $87 million or 41% compared to the strike-impacted prior year,
mainly due to the increase in ounces milled and refined during the period as well as cost escalations.

Idle production costs incurred during the strike in the prior year were classified as special.

Ore, concentrate and other purchases increased by $16 million or 43% as the volume produced in the prior year was
impacted by the strike action. The increase in volumes purchased in 2015 was partially offset by a decline in metal
prices.

The decrease of $62 million in metal stock is mainly due to the $69 million write down of stock to net realisable value
as result of the decline in PGM prices. The $62 million comprises a $17 million stock decrease in 2015 which was offset
by a $79 million stock decrease in 2014.

During the year, the Rand weakened against the US Dollar averaging ZAR12.01 to US$1 compared to an average of
ZAR10.55 to US$1 in the 2014 financial year resulting in a $117 million positive impact on operating costs.

Depreciation is calculated on a unit of production basis, spreading costs in relation to proven and probable reserves.
Due to increased production levels, depreciation and amortisation also increased by $14 million compared to the 2014
financial year.

Cost of Production per PGM Ounce

The cost of production per PGM ounce for the 2015 financial year decreased by 23.6% to R10,339 compared to R13,538
for the year ended 30 September 2014. The prior year was impacted by the five month strike, and therefore included
idle production costs. When comparing the 2015 cost of production to the 2013 financial year, the unit cost reflects a
compounded annual increase of only 6.1% per annum despite above inflation wage increases being granted as well as
an increase in production losses associated with safety stoppages. The Group’s continued focus on cash conservation
measures and robust cost control system is evident in the reported unit cost for the year, especially the reduction in
the unit cost for the fourth quarter to R9,841 per PGM ounce.

Further details of unit costs can be found in the Operating Statistics.

Special Operating Costs

Special operating costs for the year ended 30 September 2015 are made up as follows:

                                     Year ended 30 September
                                         2015           2014
                                           $m             $m
Impairment of non financial assets      1,811              -
Restructuring costs                        59              -
BEE transaction                            14              -
Strike related costs
- Idle fixed production costs               -            287
- Contractors’ claims                       -              3
- Security costs                            -             10
- Other strike related costs                -              7
                                        1,884            307

The reduced production profile and revised PGM price outlook in the Business Plan have resulted in the downward
revision of estimated future cash flows from the Marikana operations resulting in their value in use declining below the
carrying amount of the non-financial assets of the operations of $3,100 million. The recoverable amount of the
Marikana CGU was $1,635 million. As a result, a special impairment charge of $1,465 million is reflected in the financial
statements. Furthermore, similar impairment assessments on our Limpopo and Akanani assets which had carrying
amounts of $127 million and $219 million respectively, have resulted in full impairment of these assets with a further
special impairment charge of $346 million being reflected in the financial statements which brings the total impairment
of non-financial assets to $1,811 million. Refer to note 10 for details.

The restructuring costs of $59 million incurred during the period include retrenchment costs of $56 million, and
consulting and advisory fees of $3 million incurred in relation to the restructuring. BEE transaction costs amounted to
$14 million with $13 million being the lock-in premium paid to the Bapo. Legal and consulting costs incurred on this
transaction amounted to $1 million.

Idle production overheads incurred during the strike period in 2014 for which there was no associated production
output, as well as costs arising directly as a result of the strike action were classified as special items. The total of these
strike related costs amounted to $307 million. The major portion of the costs comprised idle fixed production costs
incurred during the strike period which totalled $287 million. The cost of additional security amounted to $10 million.
Costs relating to contractors not being able to fulfil their obligations as a result of the disruption amounted to
$3 million. Other costs included legal, communication, medical and various other start-up costs.

Net Finance Costs
                                            Year ended 30 September
                                                 2015           2014
                                                   $m             $m
Net bank interest and fees                       (25)           (25)
Capitalised interest payable and fees              19             13
Foreign exchange gains on net (debt)/cash          12             10
Dividends received from investment                  1             10
Unwinding of discount on provision               (10)           (10)
Other                                             (1)              -
Underlying net finance costs                      (4)            (2)
HDSA receivable                                 (235)           (62)
Net finance costs                               (239)           (64)

Total net finance costs increased by $175 million to $239 million for the year ended 30 September 2015 compared to
$64 million incurred in the prior year. The most significant component of total net finance costs for the 2015 and 2014
financial years was the impairment of the HDSA receivable of $227 million and $80 million respectively.

Net bank interest and fees incurred in the 2015 financial year remained flat at $25 million compared to the prior year.
Interest capitalised in 2015 was higher than the prior year as interest incurred during the strike period in the prior year
did not qualify for capitalisation.

Dividends received relate to dividends from our investment in Petrozim Line (Private) Limited.

The Historically Disadvantaged South Africans (HDSA) receivable, being the Sterling loan to Shanduka Resources
(Proprietary) Limited (Shanduka) decreased by $235 million during the year as a result of an impairment charge of
$227 million and foreign exchange losses of $28 million which were partially offset by interest accrued of $20 million. The
impairment charge of $227 million in the current year which brings the total accumulated impairment on the receivable
to $307 million is as a result of the value of the security for the loan falling below the carrying amount of the receivable
primarily due to the decline in long term PGM price assumptions applied in the valuation models of the Marikana CGU
and Akanani CGU. The receivable is secured on the HDSA’s shareholding in Incwala, whose only asset of value is its
underlying investment in WPL, EPL and Akanani. The value of the security is driven by the values of WPL, EPL and
Akanani. The movement of $62 million in the prior year comprised an impairment charge of $80 million which was
partially offset by interest accrued of $18 million. The balance of the receivable at 30 September 2015 was $102 million
(2014-$337 million).

Taxation

Reported tax for the current financial year was a credit of $363 million compared to a credit of $123 million in the 2014
period. The tax credit of $363 million includes special exchange gains on the retranslation of Rand denominated
deferred tax liabilities of $48 million and the tax impact of special items of $280 million.

Our philosophy on taxation is to comply with the tax legislation of all the countries in which we operate by paying all
taxes due and payable in those countries in terms of the applicable tax laws. Transactions entered into by the Group
are structured to follow bona fide business rationale and tax principles. We recognise that in order to be a sustainable
and responsible business, the Group must have appropriate tax policies that are adhered to and managed properly. We
seek to maintain a proactive and cooperative relationship with local tax authorities in all our business and tax
transactions and conduct all such transactions in a transparent manner.

With the Group’s primary operations being in South Africa, the tax liability follows such activity which has the effect
that the majority of the Group’s taxes are paid in that country. Following the financial crisis of 2008, the events at
Marikana of 2012, the five month industry-wide strike and more recently the decline in metal prices, all of which have
adversely impacted profitability, the level of corporate tax has reduced. However, the Group continues to pay
significant amounts in respect of other forms of tax including:

      -  Employee taxes
      -  Customs and excise duties
      -  Value Added Tax
      -  State royalties

Our philosophy on transfer pricing is that related party transactions should be charged at arm’s length prices. Transfer
pricing studies were performed by transfer pricing specialists on all our related party transactions and such transactions
were found to be within acceptable norms compared to comparable transactions in similar companies. Lonmin
inherited a number of companies in tax haven jurisdictions from previous unbundling and acquisition transactions.
These companies are dormant entities and therefore do not receive any income. Furthermore, Lonmin does not pay
any of its income to any of the dormant tax haven companies in these inherited structures.

Cash Generation and Net Debt

The following table summarises the main components of the cash flow during the period:

                                                     Year ended 30 September
                                                       2015         2014
                                                         $m           $m
Operating loss                                      (2,018)        (255)
Depreciation, amortisation and impairment             1 966          142
Changes in working capital                               63           18
Other non cash movements                                  4          (5)
Cash flow generated from /(utilised in) operations       15        (100)
Interest and finance costs                             (24)         (16)
Tax paid                                                (3)            - 
Trading cash outflow                                   (12)        (116)
Capital expenditure                                   (136)         (93)
Dividends paid to minority shareholders                (19)         (37)
Free cash outflow                                     (167)        (246)
Contribution to joint venture                           (7)          (1)
Issue of other ordinary share capital                     3            1
Cash outflow                                          (171)        (246)
Opening net (debt)/cash                                (29)          201
Foreign exchange                                         17           13
Unamortised fees                                        (2)            3
Closing net debt                                      (185)         (29)

Trading cash flow (cents per share)                  (2.1)c      (20.4)c
Free cash flow (cents per share)                    (28.7)c      (43.2)c

Cash flow generated by operations in the year ended 30 September 2015 increased by $115 million from an outflow of
$100 million in the prior year to an inflow of $15 million in the year under review. The cash outflow for the 2014
financial year was largely driven by lower sales volumes. The net inflow in the current year was mainly a result of
positive movements in working capital on the back of a reduction in our closing stocks compared to the prior year. The
increase in sales volumes in the year under review which was partly offset by the impact of the lower PGM prices also
had a positive impact on the cash flow generated by operations.

Trading cash outflow for the year decreased by $104 million to $12 million compared to the prior year trading cash
outflow of $116 million. The cash outflow on interest and finance costs increased by $8 million largely due to the timing
of payments over the two periods under review. The trading cash outflow per share was 2.1 cents at 30 September
2015 compared to a cash outflow of 20.4 cents in the prior year.

Capital expenditure at $136 million was $43 million (or 46%) higher than the prior year spend. The Group’s capital
investment programme was severely impacted in the prior year as a result of the strike. The current year spend was
lower than the guidance of $250 million as a result of the ongoing cost containment.

An advance dividend payment of $19 million was paid by WPL, a subsidiary of Lonmin Plc, to Incwala Platinum
(Proprietary) Limited during 2015. This brings the accumulated advanced dividends paid to Incwala to $135 million
(R1,309 million) as at 30 September 2015. The amount paid to Incwala will be recovered by reducing future dividends
that would otherwise be payable to all shareholders.

Contributions to the Pandora Joint Venture during the year under review amounted to $7 million.

Key Financial Risks

The Group faces many risks in the operation of its business. The Group’s strategy takes into account known risks, but
risks will exist of which we are currently unaware. The financial review focuses on financial risk management.

Financial Risk Management

The main financial risks faced by the Group relate to the availability of funds to meet business needs (liquidity risk), the
risk of default by counterparties to financial transactions (credit risk) and fluctuations in interest, foreign exchange
rates and commodity prices (market risk). Factors which are outside the control of management which can have a
significant impact on the business remain, specifically, the fluctuations in the Rand/US Dollar exchange rate and PGM
commodity prices.

These are the critical factors to consider when addressing the issue of whether the Group is a Going Concern.

Liquidity Risk

The policy on liquidity is to ensure that the Group has sufficient funds to facilitate all ongoing operations. The Group
funds its operations through a mixture of equity funding and borrowings. The Group’s philosophy is to maintain an
appropriately low level of financial gearing given the exposure of the business to fluctuations in PGM commodity prices
and the Rand / US Dollar exchange rate. We ordinarily seek to fund capital requirements from equity.

As part of the annual budgeting and long term planning process, the Group's cash flow forecast is reviewed and
approved by the Board. The cash flow forecast is amended on an ongoing basis for any significant changes in the key
assumptions identified during the year.
Where funding requirements are identified from the cash flow forecast, appropriate measures are taken to ensure
these requirements can be satisfied. Factors taken into consideration are:

  -  the size and nature of the requirement;
  -  preferred sources of finance applying key criteria of cost, commitment, availability, security / covenant conditions;
  -  recommended counterparties, fees and market conditions; and
  -  covenants, guarantees and other financial commitments.

As mentioned above in the Overview section, the Board and executive management have reviewed the Group’s
business and capital structure and developed the Business Plan in order to be able to deal effectively with the impacts
of a continuation of the current low price environment.

Consequently, the announcement of these results coincides with the launch of a Rights Issue which is conditional on,
amongst other things, shareholder approval. The Group proposes to raise approximately $407 million, before deducting
share issue costs and foreign exchange charges, as well as amend the existing debt facilities.

The amended debt facility agreements which were entered into on 9 November 2015 will become effective only if a
Resolution approving the planned Rights Issue is passed by the Company’s shareholders at a General Meeting to be
held on 19 November 2015 and $350 million of net cash proceeds are received.

Following the amendment, the Group’s debt facilities going forward are summarised as follows:
      -  Revolving credit facilities totalling $75 million and a $150 million term loan, at a Lonmin Plc Level, which
         mature in May 2020 (assuming Lonmin exercises its option to extend the term up until this date)
      -  Revolving credit facility totalling R1,980 million, at a Western Platinum Limited level, which matures in May
        2020 (assuming Lonmin exercises its option to extend the term up until this date).

The following covenants apply to these facilities:
      -  The consolidated tangible net worth of the Group will not be at any time less than US$1,100 million.
      -  The consolidated debt of the Group will not at any time exceed an amount equal to 35% of consolidated
         tangible net worth of the Group
      -  the liquidity for the Group will not, for any week from 1 January 2016, be less than $20,000,000;
      -  The capital expenditure of the Group (excluding any Bulk Tailings Agreement) shall not exceed the limits set out
         in the table below. The Company shall also have the option to carry forward or back up to 10% of the limits set
         out in the table below.

Financial Year                                   Capex Limit
1 October 2015 – 30 September 2016 (inclusive)   ZAR1,338 million
1 October 2016 – 30 September 2017 (inclusive)   ZAR1,242 million
1 October 2017 – 30 September 2018 (inclusive)   ZAR2,511 million
1 October 2018 – 30 September 2019 (inclusive)   ZAR3,194 million
1 October 2019 – 31 May 2020 (inclusive)         ZAR4,049 million

There is also additional limit on capital expenditure in relation to any Bulk Tailings Agreement as set out
below:

Financial Year                                   Bulk Tailings Capex Limit
1 October 2015 – 30 September 2016 (inclusive)   ZAR370 million
1 October 2016 – 30 September 2017 (inclusive)   ZAR182 million

The limit on capital expenditure in relation to any Bulk Tailings Agreement after 30 September 2017 will
be zero.

In addition to the above, the Group's existing lenders agreed on 26 October 2015 to suspend the testing of the tangible
net worth covenants under the existing US Dollar facility until the amended facilities agreements become effective,
failing which, the covenants would be tested under the existing facilities.

Credit Risk

Banking Counterparties

Banking counterparty credit risk is managed by spreading financial transactions across an approved list of
counterparties of high credit quality. Banking counterparties are approved by the Board and consist of the ten banks
that participate in Lonmin’s bank debt facilities. These counter parties comprise: BNP Paribas S.A., Citibank, N.A., London Branch HSBC
Bank Plc, J.P. Morgan Chase N.A., London Branch, Lloyds Bank Plc, The Royal Bank of Scotland Plc., and Standard Chartered
Bank.

Trade Receivables

The Group is exposed to significant trade receivable credit risk through the sale of PGMs to a limited group of
customers.

This risk is managed as follows:

  -  age analysis is performed on trade receivable balances and reviewed on a monthly basis;
  -  credit ratings are obtained on any new customers and the credit ratings of existing customers are monitored on an
     ongoing basis;
  -  credit limits are set for customers; and
  -  trigger points and escalation procedures are clearly defined.

It should be noted that a significant portion of Lonmin’s revenue is from two key customers. However, both of these
customers have strong investment grade ratings and their payment terms are very short, thereby reducing trade
receivable credit risk significantly.

HDSA Receivables

HDSA receivables are secured on the HDSA’s shareholding in Incwala Resources (Pty) Limited. Refer to notes 8 in the
financial statements for details on the valuation of this security and the resulting impairment charge.

Interest Rate Risk

Although the Group is in a net debt position, this risk is not considered to be high at this point in time. The interest
position is kept under constant review in conjunction with the liquidity policy outlined above and the future funding
requirements of the business.

Foreign Currency Risk

The Group’s operations are predominantly based in South Africa and the majority of the revenue stream is in US
Dollars. However, the bulk of the Group’s operating costs and taxes are paid in Rands. Most of the cash received in
South Africa is in US Dollars. Most of the Group’s funding sources are in US Dollars.

The Group’s reporting currency is the US Dollar and the share capital of the Company is based in US Dollars.

During the year under review Lonmin did not undertake any foreign currency hedging.

Commodity Price Risk

Our policy is not to hedge commodity price exposure on PGMs, excluding gold, and therefore any change in prices will
have a direct effect on the Group’s trading results.

For base metals and gold, hedging is undertaken where the Board determines that it is in the Group’s interest to hedge
a proportion of future cash flows. The policy allows Lonmin to hedge up to a maximum of 75% of the future cash flows
from the sale of these products looking forward over the next 12 to 24 months. The Group did not undertake any
hedging of base metals under this authority in the period under review and no forward contracts were in place in
respect of base metals at the end of the period.

In respect of gold, Lonmin entered into a prepaid sale of 75% of its current gold production for the next 54 months in
March 2012. In terms of this contract Lonmin will deliver 70,700 ounces of gold over the period with delivery on a
quarterly basis and in return received an upfront payment of $107 million. The upfront receipt was accounted for as
deferred revenue on our balance sheet and is being released to profit and loss as deliveries take place at an average
price of $1,510/oz delivered.

Contingent Liabilities

The Group provided third party guarantees of $7 million (2014-$9 million) to Eskom as security to cover estimated
electricity consumption for three months. The Group also provided guarantees to the Department of Mineral
Resources for an amount of $45 million (2014-$55 million). At 30 September 2015, total guarantees amounted to $53
million (2014-$65 million) which included $1 million provided to various other third parties.

Simon Scott
Chief Financial Officer

RESPONSIBILITY STATEMENT OF THE DIRECTORS IN RESPECT OF THE ANNUAL REPORT AND ACCOUNTS

We confirm that to the best of our knowledge:

- the financial statements, prepared in accordance with the applicable set of accounting standards, give a true and fair
view of the assets, liabilities, financial position and profit or loss of the Company and the undertakings included in the
consolidation taken as a whole; and
- the management report required by DTR 4.1.8R (contained in the Strategic Report and the Directors’ Report) includes
a fair review of the development and performance of the business and the position of the Company and the
undertakings included in the consolidation taken as a whole, together with a description of the principal risks and
uncertainties that they face.

Brian Beamish                            Simon Scott
Chairman                                 Chief Financial Officer

9 November 2015

Operating statistics
5 year review

                                                           Units       2015       2014       2013        2012        2011
Tonnes mined (1)      Generation (2)   K3 shaft             kt        2,713      1,484      3,101       2,646       2,750
                                       Rowland shaft        kt        1,872      1,005      1,781       1,599       2,082
                                       Saffy shaft          kt        1,758        782      1,150         898       1,110
                                       4B/1B shaft          kt        1,628        891      1,845       1,622       1,643
                                       Hossy shaft          kt          953        609      1,051         864         793
                                       Generation (2)       kt        8,923      4,771      8,928       7,628       8,379
                      Generation (1)   Newman shaft         kt          765        428        948         919       1,197
                                       W1 shaft             kt          180        102        170         126         154
                                       East 1 shaft         kt          148        104        390         496         536
                                       East 2 shaft         kt          390        279        426         397         484
                                       East 3 shaft         kt           68         28         94         104         153                                                      
                                       Pandora (100%) (2)   kt          544        299        571         435         394
                                       Generation (1)       kt        2,095      1,240      2,599       2,476       2,920
                                       K4 shaft             kt           49          -          4         117          45
                                       Total Underground    kt       11,067      6,012     11,531      10,221      11,344
                                       Opencast             kt          230        333        528         443         601
                                       Total Underground
                                       & Opencast           kt       11,297      6,345     12,058      10,663      11,944                                 
                      Limpopo (3)      Underground          kt            -          6          -           -           -
Lonmin (100%)                          Total Tonnes
                                       mined                kt       11,297      6,351     12,058      10,663      11,994
                                       % tonnes mined
                                       from UG2 reef
                                       (100%)               %          75.1       74.1       73.9        71.7        73.2
                      Lonmin           Underground &
                      (attributable)   Opencast             kt       11,016      6,180     11,730      10,413      11,718
                      Lonmin
Ounces mined (4)      excluding
                      Pandora          Platinum             oz      668,319    371,651    717,882     635,346     695,474
                      Pandora
                      (100%)           Platinum             oz       36,458     20,327     40,917      30,714      25,342
                      Limpopo          Platinum             oz            -        255          -           -           -
                      Lonmin           Platinum             oz      704,776    392,233    758,799     666,060     720,816
                      Lonmin
                      excluding
                      Pandora          Total PGMs           oz    1,280,964    707,913  1,340,678   1,174,776   1,306,082
                      Pandora
                      (100%)           Total PGMs           oz       71,861     40,044     78,353      58,300      48,420
                      Limpopo          Total PGMs           oz            -        572          -           -           -
                      Lonmin           Total PGMs           oz    1,352,825    748,529  1,419,032   1,233,076   1,354,501                  
Tonnes milled (5)     Marikana         Underground          kt       10,930      5,389     10,854       9,936      10,896
                                       Opencast             kt          318        422        393         450         748
                                       Total                kt       11,248      5,810     11,248      10,386      11,643
                      Pandora                              
                      (100%) (6)       Underground          kt          562        281        574         432         394                               
                      Limpopo (7)      Underground          kt            -         27          -           -           -
                      Lonmin
                      Platinum         Underground          kt       11,491      5,696     11,428      10,367      11,290
                                       Opencast             kt          318        422        393         450         748
                                       Total                kt       11,810      6,118     11,822      10,817      12,037
Milled head           Lonmin           Underground          g/t        4.51       4.48       4.60        4.56        4.54       
grade (8)             Platinum         Opencast             g/t        3.08       3.20       2.92        3.01        2.23
                                       Total                g/t        4.47       4.39       4.54        4.49        4.40
Concentrator          Lonmin           Underground          %          86.8       87.0       87.0        86.1        85.4
recovery rate (9)     Platinum         Opencast             %          85.1       84.5       85.3        85.9        81.6
                                       Total                %          86.7       86.9       87.0        86.1        85.3

Operating statistics
5 year review

                                        Units        2015      2014        2013        2012        2011
Metals-in-concentrate (10) Platinum      oz       696,489   355,926     706,012     646,393     694,149
Marikana                   Palladium     oz       323,177   164,960     323,622     295,409     324,655
                           Gold          oz        16,503     9,879      17,664      16,925      17,471
                           Rhodium       oz       101,435    49,908      95,241      83,144      91,659
                           Ruthenium     oz       165,689    81,693     144,304     127,269     144,369
                           Iridium       oz        32,416    16,143      33,059      27,610      31,294
                           Total PGMs    oz     1,335,710   678,508   1,319,902   1,196,750   1,303,597
Limpopo                    Platinum      oz             -     1,121           -          -            -
                           Palladium     oz             -       974           -          -            -
                           Gold          oz             -        93           -          -            -
                           Rhodium       oz             -       114           -          -            -
                           Ruthenium     oz             -       161           -          -            -
                           Iridium       oz             -        44           -          -            -
                           Total PGMs    oz             -     2,508           -          -            -
Pandora                    Platinum      oz        37,553    18,913      41,117      30,625      25,241
                           Palladium     oz        17,496     8,960      19,190      14,261      11,847
                           Gold          oz           131        54         315         228         179
                           Rhodium       oz         6,383     3,226       6,563       4,743       3,865
                           Ruthenium     oz        10,466     5,168       9,764       7,135       6,070
                           Iridium       oz         1,988       916       1,773       1,195         996
                           Total PGMs    oz        74,019    37,237      78,721      58,188      48,199
Lonmin Platinum before     Platinum      oz       734,042   375,960     747,129     677,019     719,390
Concentrate Purchases      Palladium     oz       340,673   174,894     342,812     309,670     336,502
                           Gold          oz        16,635    10,026      17,979      17,153      17,650
                           Rhodium       oz       107,818    53,248     101,803      87,886      95,524
                           Ruthenium     oz       176,156    87,022     154,067     134,404     150,439
                           Iridium       oz        34,405    17,103      34,832      28,805      32,290
                           Total PGMs    oz     1,409,729   718,253   1,398,623   1,254,938   1,351,796
Concentrate purchases      Platinum      oz         6,273     4,398       3,813       2,802           -
                           Palladium     oz         1,869     1,242       1,132         973           -
                           Gold          oz            18        14          14          10           -
                           Rhodium       oz           816       531         421         329           -
                           Ruthenium     oz         1,079       546         428         404           -
                           Iridium       oz           338       224         172         129           -
                           Total PGMs    oz        10,394     6,955       5,980       4,647           -
Lonmin Platinum            Platinum      oz       740,315   380,359     750,942     679,821     719,390
                           Palladium     oz       342,542   176,136     343,944     310,643     336,502
                           Gold          oz        16,653    10,040      17,993      17,163      17,650
                           Rhodium       oz       108,634    53,779     102,225      88,216      95,524
                           Ruthenium     oz       177,235    87,567     154,495     134,808     150,439
                           Iridium       oz        34,743    17,327      35,004      28,934      32,290
                           Total PGMs    oz     1,420,122   725,208   1,404,603   1,259,585   1,351,796
                           Nickel (11)   MT         3,669     2,092       3,743       3,489       3,537
                           Copper (11)   MT         2,250     1,314       2,340       2,226       2,223

Operating statistics
5 year review

                                    Units        2015      2014        2013        2012        2011
Refined production     Platinum      oz       759,005   431,683     707,665     648,414     686,877
Lonmin refined metal   Palladium     oz       350,040   208,756     319,841     310,558     323,907
production             Gold          oz        18,232    12,299      18,676      18,398      18,013
                       Rhodium       oz       102,372    76,940      79,124     110,896      86,702
                       Ruthenium     oz       181,803   107,166     171,052     153,394     164,374
                       Iridium       oz        32,180    27,991      28,068      32,844      26,337
                       Total PGMs    oz     1,443,633   864,835   1,324,426   1,274,503   1,306,210
Toll refined metal     Platinum      oz           689     4,501       1,364      38,958      44,396
production             Palladium     oz           280     1,765         662      21,043      49,119
                       Gold          oz            14       116         289         729       2,879
                       Rhodium       oz            95     1,546       1,837       4,717      14,402
                       Ruthenium     oz         2,093     7,417       6,519       7,907      24,408
                       Iridium       oz           560     1,914       1,012       1,944       5,249
                       Total PGMs    oz         3,731    17,259      11,683      75,299     140,453
Total refined PGMs     Platinum      oz       759,695   436,184     709,029     687,372     731,273
                       Palladium     oz       350,320   210,521     320,503     331,601     373,026
                       Gold          oz        18,246    12,415      18,965      19,128      20,892
                       Rhodium       oz       102,467    78,486      80,961     115,613     101,103
                       Ruthenium     oz       183,896   114,583     177,571     161,300     188,782
                       Iridium       oz        32,740    29,905      29,081      34,788      31,586
                       Total PGMs    oz     1,447,364   882,094   1,336,109   1,349,802   1,446,662
Base metals            Nickel (12)   MT         3,720     2,387       3,532       3,786       4,188
                       Copper (12)   MT         2,276     1,480       2,168       2,153       2,454
Sales                  Platinum      oz       751,560   441,684     695,803     701,831     720,783
Refined metal sales    Palladium     oz       347,942   212,500     313,030     335,849     372,284
                       Gold          oz        19,199    13,100      18,423      19,273      19,417
                       Rhodium       oz        92,520    81,120      77,625     119,054     102,653
                       Ruthenium     oz       192,549   121,904     168,266     170,751     187,189
                       Iridium       oz        30,114    29,778      28,828      37,187      33,603
                       Total PGMs    oz     1,433,883   900,087   1,301,973   1,383,945   1,435,929
                       Nickel (12)   MT         3,656     2,251       3,586       3,843       4,180
                       Copper (12)   MT         2,131     1,448       2,130       2,197       2,448
                       Chrome (12)   MT     1,440,901   747,881   1,388,761   1,209,643     730,278

Operating statistics
5 year review
                                                 Units     2015     2014     2013     2012     2011
Average prices    Platinum                       $/oz     1,095    1,403    1,517    1,517    1,769
                  Palladium                      $/oz       718      775      715      630      752
                  Gold                           $/oz     1,487    1,509    1,508    1,597    1,405
                  Rhodium                        $/oz       998    1,050    1,097    1,274    2,145
                  Ruthenium                      $/oz        45       57       74      103      168
                  Iridium                        $/oz       524      521      946    1,042      938
                  Basket price of PGMs (13)      $/oz       849    1,013    1,100    1,095    1,299
                  Full Basket price of PGMs (14) $/oz       902    1,072    1,167    1,163    1,389
                  Basket price of PGMs (13)      R/oz    10,207   10,654   10,291    8,807    9,109
                  Full Basket price of PGMs (14) R/oz    10,829   11,277   10,921    9,304    9,716
                  Nickel (12)                    $/MT    10,512   13,053   12,772   14,330   21,009
                  Copper (12)                    $/MT     5,584    6,810    7,113    7,201    8,612
                  Chrome (12)                    $/MT        17       18       19       20       27

Footnotes:

(1)  Reporting of shafts are in line with our operating strategy for Generation 1 and Generation 2 shafts.
(2)  Pandora underground and opencast tonnes mined represents 100% of the total tonnes mined on the Pandora joint venture of which 42.5% for October and November 2014
     and 50% thereafter is attributable to Lonmin.
(3)  Limpopo underground tonnes mined represents low grade development tonnes mined whilst on care and maintenance.
(4)  Ounces mined have been calculated at achieved concentrator recoveries and as from 2014 with Lonmin standard downstream processing recoveries to present produced
     saleable ounces.
(5)  Tonnes milled exclude slag milling.
(6)  Lonmin purchases 100% of the ore produced by the Pandora joint venture for onward processing which is included in downstream operating statistics.
(7)  Limpopo tonnes milled represent low grade development tonnes milled.
(8)  Head Grade is the grammes per tonne (5PGE + Au) value contained in the tonnes milled and fed into the concentrator from the mines (excludes slag milled).
(9)  Recovery rate in the concentrators is the total content produced divided by the total content milled (excluding slag).
(10) As from 2014, metals-in-concentrate have been calculated at Lonmin standard downstream processing recoveries to present produced saleable ounces.
(11) Corresponds to contained base metals in concentrate.
(12) Nickel is produced and sold as nickel sulphate crystals or solutions and the volumes shown correspond to contained metal. Copper is produced as refined product but
     typically at LME grade C. Chrome is produced in the form of chromite concentrate and volumes shown are in the form of chromite.
(13) Basket price of PGMs is based on the revenue generated in Rand and Dollar from the actual PGMs (5PGE + Au) sold in the period based on the appropriate Rand / Dollar
     exchange rate applicable to each sales transaction.
(14) As per footnote 13 but including revenue from base metals.

Operating statistics
5 year review

                                                 Units          2015      2014       2013        2012       2011
Capital                                             Rm         1,641       992      1,500       3,296      2,907
Expenditure (1)                                     $m           136        93        159         408        410
Employees and          Employees as at 30
contractors            September                     #        26,968    28,276     28,379      28,230     27,796
                       Contractors as at 30
                       September                     #         8,701    10,016     10,042       8,293      9,564
Exchange rates         Average rate for period (2) R/$         12.01     10.55       9.24        8.05       6.95
                                                   £/$          0.65      0.60       0.64        0.63       0.62
                       Closing rate                R/$         13.83     11.29       9.99        8.30       8.05
                                                   £/$          0.66      0.62       0.62        0.62       0.64
Underlying cost        Mining                       $m         (785)     (622)      (919)       (877)      (995)
of sales               Concentrating                $m         (145)     (107)      (159)       (168)      (187)
PGM operations         Smelting and refining (3)    $m         (120)     (106)      (133)       (147)      (172)
segment                Shared services              $m          (71)      (74)      (101)       (100)       (97)
                       Management and marketing
                       services                     $m          (25)      (24)       (26)        (35)       (32)

                       Ore, concentrate and other
                       purchases                    $m          (48)      (38)       (64)        (48)       (46)
                       Limpopo mining               $m           (2)       (3)        (7)         (9)        (7)

                       Special item adjustment      $m             -       287          -         121          -
                       ESOP and community trusts
                       donations                    $m           (1)         -          -           -          -
                       Royalties                    $m           (9)       (5)        (6)         (8)       (12)
                       Shared based payments        $m          (14)      (15)       (13)        (12)       (13)
                       Inventory movement           $m          (84)      (79)        203       (140)       (12)
                       FX and Group Charges         $m            51        25         44          14          5
                       Total PGM operations
                       segment                      $m       (1,253)     (761)    (1,181)     (1,412)    (1,567)
                       Evaluation – excluding FX    $m             -         -          1           2          -
                       Exploration – excluding FX   $m           (7)       (6)        (4)         (5)        (1)
                       Corporate – excluding FX     $m           (2)       (2)       (10)         (4)          4
                       FX                           $m          (10)       (1)        (4)         (2)          6
                       Total underlying cost of
                       sales                        $m       (1,272)     (771)    (1,199)     (1,421)    (1,559)

                       Mining                       Rm       (9,414)   (6,556)    (8,545)     (7,079)    (7,002)
                       Concentrating                Rm       (1,731)   (1,121)    (1,469)     (1,346)    (1,297)
                       Smelting and refining (3)    Rm       (1,426)   (1,119)    (1,235)     (1,183)    (1,203)
                       Shared services              Rm         (810)     (786)      (928)       (805)      (679)
                       Management and marketing
                       services                     Rm         (294)     (256)      (243)       (287)      (217)

                       Ore, concentrate and other
                       purchases                    Rm         (574)     (402)      (597)       (385)      (318)
                       Limpopo mining               Rm          (25)      (31)       (61)        (76)       (50)

                       Special item adjustment      Rm             -     3,028          -         966          -
                       ESOP and community trusts
                       donations                    $m          (10)         -          -           -          -
                       Royalties                    Rm         (103)      (52)       (55)        (68)       (82)
                       Shared based payments        Rm         (164)     (148)      (121)        (99)       (87)
                       Inventory movement           Rm             6     (480)      2,145       (842)      (119)
                       FX and Group Charges         Rm       (2,659)   (1,117)    (1,247)       (218)      (517)
                                                    Rm      (17,203)   (9,040)   (12,356)    (11,424)   (11,572)

Operating statistics
5 year review

                                               Units         2015        2014        2013        2012        2011
Cost of production     Mining                     Rm      (9,414)     (6,556)     (8,545)     (7,079)     (7,002)
(PGM operations        Concentrating              Rm      (1,731)     (1,121)     (1,469)     (1,346)     (1,297)
segment) (4)           Smelting and refining (3)  Rm      (1,426)     (1,119)     (1,235)     (1,183)     (1,203)
Cost                   Shared services            Rm        (810)       (786)       (928)       (805)       (679)
                       Management and
                       marketing services         Rm        (294)       (256)       (243)       (287)       (217)
                                                  Rm     (13,674)     (9,838)    (12,420)    (10,701)    (10,399)

PGM Saleable           Mined ounces excluding
ounces                 ore purchases              oz    1,280,964     707,913   1,340,678   1,174,776   1,306,082
                       Metals-in-concentrate
                       before concentrate         oz
                       purchases                        1,409,729     715,746   1,398,623   1,254,938   1,351,796
                       Refined ounces             oz    1,447,364     882,094   1,336,109   1,349,802   1,446,662
                       Metals-in-concentrate
                       including concentrate
                       purchases                  oz    1,420,122     722,701   1,404,603   1,259,585   1,351,796

Cost of production     Mining                   R/oz      (7,349)     (9,261)     (6,373)     (6,026)     (5,361)
                       Concentrating            R/oz      (1,228)     (1,567)     (1,051)     (1,073)       (960)
                       Smelting and refining (3)R/oz        (985)     (1,269)       (925)       (877)       (832)
                       Shared services          R/oz        (570)     (1,087)       (661)       (639)       (503)
                       Management and
                       marketing services       R/oz        (207)       (355)       (173)       (228)       (161)
                                                R/oz     (10,339)    (13,538)     (9,182)     (8,843)     (7,815)

% increase in cost     Mining                     %         20.6%      (45.3)       (5.8)      (12.4)      (15.4)
of production          Concentrating              %         21.6%      (49.2)         2.1      (11.8)      (10.6)
                       Smelting and refining (3)  %         22.4%      (37.3)       (5.4)       (5.4)         5.8
                       Shared services            %         47.5%      (64.5)       (3.3)      (27.2)      (12.8)
                       Management and
                       marketing services         %         41.7%     (104.9)       24.1       (41.9)         7.0
                                                  %         23.6%      (47.4)       (3.8)      (13.1)      (11.4)

Footnotes:

(1)   Capital expenditure is the aggregate of the purchase of property, plant and equipment and intangible assets (includes capital accruals and excludes capitalised interest).
(2)   Exchange rates are calculated using the market average daily closing rate over the course of the period.
(3)   Comprises of Smelting and Refining costs as well as direct Process Operations shared costs.
(4)   It should be noted that with the implementation of the revised operating model in 2014 and 2015 the cost allocation between business units has been changed and, therefore,
      whilst the total is on a like-for-like basis, individual line items are not totally comparable.

Consolidated income statement
for the year ended 30 September

                                                            Special                              Special
                                                                                        2014
                                                    2015      items      2015                     items     2014
                                          Underlying (i)   (note 3)     Total Underlying (i)   (note 3)    Total
                                    Note              $m         $m        $m             $m         $m       $m
Revenue                                2           1,293          -     1,293            965          -      965


(LBITDA) / EBITDA (ii)                                21       (73)      (52)            194      (307)    (113)
Depreciation, amortisation and
impairment                            10           (155)    (1,811)   (1,966)          (142)          -    (142)                           
Operating (loss) / profit (iii)                    (134)    (1,884)   (2,018)             52      (307)    (255)
Impairment of available for sale
financial assets                       8               -          -         -              -        (1)      (1)
Finance income                         4              16         20        36             26         18       44
Finance expenses                       4            (20)      (255)     (275)           (28)       (80)    (108)
Share of loss of equity accounted
investments                                          (5)          -       (5)            (4)        (2)      (6)
(Loss) / profit before taxation                    (143)    (2,119)   (2,262)             46      (372)    (326)
Income tax credit (iv)                 5              35        328       363            (5)        128      123
(Loss) / profit for the year                       (108)    (1,791)   (1,899)             41      (244)    (203)

Attributable to:
- Equity shareholders of Lonmin Plc                 (94)    (1,567)   (1,661)             31      (219)    (188)
- Non-controlling interests                         (14)      (224)     (238)             10       (25)     (15)

Loss per share                         6                             (285.5)c                            (33.0)c
Diluted loss per share (v)             6                             (285.5)c                            (33.0)c

Consolidated statement of comprehensive income
for the year ended 30 September

                                                                                     2015    2014
                                                                                    Total   Total
                                                                          Note         $m      $m
Loss for the year                                                                 (1,899)   (203)
Items that may be reclassified subsequently to the income statement
- Change in fair value of available for sale financial assets               8         (4)     (1)
- Foreign exchange loss on retranslation of equity accounted investments              (8)     (3)
Total other comprehensive expenses for the period                                    (12)     (4)
Total comprehensive loss for the period                                           (1,911)   (207)

Attributable to:
- Equity shareholders of Lonmin Plc                                               (1,672)   (192)
- Non-controlling interests                                                         (239)    (15)
                                                                                  (1,911)   (207)

Footnotes:

(i)     Underlying results are based on reported results excluding the effect of special items as defined in note 3.
(ii)    (LBITDA) / EBITDA is operating (loss) / profit before depreciation, amortisation and impairment of goodwill, intangibles and property, plant and equipment.
(iii)   Operating (loss) / profit is defined as revenue less operating expenses before impairment of available for sale financial assets, finance income and expenses and share of
        (loss) / profit of equity accounted investments.
(iv)    The income tax credit substantially relates to overseas taxation and includes net exchange gains of $48 million (2014 - $42 million) as disclosed in note 5.
(v)     Diluted (loss) / earnings per share is based on the weighted average number of ordinary shares in issue adjusted by dilutive outstanding share options.

Consolidated statement of financial position
as at 30 September

                                                            2015     2014
                                                   Note       $m       $m

Non-current assets
Goodwill                                             10        -       40
Intangible assets                                    10       94      457
Property, plant and equipment                        10    1,477    2,882
Equity accounted investments                                  26       28
Royalty prepayment                                            38        -
Other financial assets                               8        19       27
                                                           1,654    3,434

Current assets
Inventories                                                  281      373
Trade and other receivables                                   71       76
Tax recoverable                                                1        2
Other financial assets                               8       102      337
Cash and cash equivalents                            9       320      143
                                                             775      931

Current liabilities
Trade and other payables                                   (208)    (244)
Provisions                                                  (39)        -
Interest bearing loans and borrowings                9     (505)     (86)
Deferred revenue                                            (23)     (27)
                                                           (775)    (357)
Net current assets                                             -      574

Non-current liabilities
Interest bearing loans and borrowings                9         -     (86)
Deferred tax liabilities                                     (9)    (376)
Deferred royalty payment                                     (3)        -
Deferred revenue                                               -     (23)
Provisions                                                 (122)    (141)
                                                           (134)    (626)
Net assets                                                 1,520    3,382

Capital and reserves
Share capital                                                586      570
Share premium                                              1,448    1,411
Other reserves                                                88       88
(Accumulated loss) / retained earnings                     (493)    1,164
Attributable to equity shareholders of Lonmin Plc          1,629    3,233
Attributable to non-controlling interests                  (109)      149
Total equity                                               1,520    3,382

The financial statements of Lonmin Plc, registered number 103002, were approved by the Board of Directors on
9 November 2015 and were signed on its behalf by:

Brian Beamish Chairman
Simon Scott Chief Financial Officer

Consolidated statement of changes in equity
for the year ended 30 September

                                                                            Equity interest
                                                     Called up      Share                                                       Non-
                                                         share    premium            Other       Retained                controlling          Total
                                                       capital    account     reserves (i)  earnings (ii)     Total  interests (iii)         equity
                                                           $m          $m               $m             $m        $m               $m             $m
  
At 1 October 2013                                         569       1,411               88          1,341     3,409              201          3,610
Loss for the year                                           -           -                -          (188)     (188)             (15)          (203)
Total other comprehensive expenses:                         -           -                -            (4)       (4)                -            (4)
- Changes in settled cash flow hedges released to
 the income statement                                       -           -                -            (1)       (1)                -            (1)
- Foreign exchange loss on retranslation of equity
 accounted investments                                      -           -                -            (3)       (3)                -            (3)
Transactions with owners, recognised directly in
equity:                                                     1           -                -             15        16             (37)           (21)
- Share-based payments                                      -           -                -             15        15                -             15
- Shares issued on exercise of share options                1           -                -              -         1                -              1
- Dividends (refer to note 7)                               -           -                -              -         -             (37)           (37)

At 30 September 2014                                      570       1,411               88          1,164     3,233              149          3,382

                                                                                Equity interest
                                                                                                       Retained
                                                                                                      earnings/
                                                        Called up       Share                          (Accumu-                        Non-
                                                            share     premium          Other              lated                 controlling           Total
                                                          capital     account   reserves (i)         loss) (ii)      Total  interests (iii)          equity
                                                               $m          $m             $m                 $m         $m               $m              $m

At 1 October 2014                                             570       1,411             88              1,164      3,233              149           3,382
Loss for the year                                               -           -              -            (1,661)    (1,661)            (238)         (1,899)
Total other comprehensive expenses:                             -           -              -               (11)       (11)              (1)            (12)
- Change in fair value of available for sale financial
 assets                                                         -           -              -                (4)        (4)                -             (4)
- Foreign exchange loss on retranslation of equity
 accounted investments                                          -           -              -                (7)        (7)              (1)             (8)
Transactions with owners, recognised directly in
equity:                                                        16          37              -                 15         68             (19)             49
- Share-based payments                                          -           -              -                 15         15                -             15
- Shares issued on exercise of share options iv                 3           -              -                  -          3                -              3
- Share capital and share premium recognised on
 the BEE transaction (v)                                       13          37              -                  -         50                -             50
- Dividends (refer to note 7)                                   -           -              -                  -          -             (19)           (19)

At 30 September 2015                                          586       1,448             88              (493)      1,629            (109)          1,520

Footnotes:

(i)     Other reserves at 30 September 2015 represent the capital redemption reserve of $88 million (2014 - $88 million).
(ii)    (Accumulated loss) / retained earnings include a $17 million debit of accumulated exchange on retranslation of equity accounted investments (2014 - $9 million debit) and
        $nil of accumulated credits in respect of fair value movements on available for sale financial assets (2014 - $4 million accumulated credits).
(iii)   Non-controlling interests represent a 13.76% shareholding in each of Eastern Platinum Limited, Western Platinum Limited and Messina Limited and a 19.87% effective
        shareholding in Akanani Mining (Proprietary) Limited.
(iv)    During the year 3,120,687 share options were exercised (2014 – 1,206,465) on which $3 million of cash was received (2014 - $1 million).
(v)     In December 2014, Lonmin concluded a series of shareholding agreements with the Bapo baMogale Traditional Community (the Bapo) which enabled Lonmin to meet its
        BEE equity ownership target as required under the Mining Charter.

Consolidated statement of cash flows
for the year ended 30 September
                                                             2015      2014
                                                    Note       $m        $m
Loss for the year                                         (1,899)     (203)
Taxation                                              5     (363)     (123)
Share of loss of equity accounted investments                   5         6
Finance income                                        4      (36)      (44)
Finance expenses                                      4       275       108
Impairment of available for sale financial assets               -         1
Non-cash movement on deferred revenue                        (27)      (20)
Depreciation, amortisation and impairment                   1,966       142
Change in inventories                                          92        76
Change in trade and other receivables                           6         7
Change in trade and other payables                           (38)      (51)
Change in provisions                                            3      (14)
Share-based payments                                           15        15
Loss on disposal of property, plant and equipment               3         -
BEE charge                                                     13         -
Cash inflow / (outflow) from operations                        15     (100)
Interest received                                               3        15
Interest and bank fees paid                                  (27)      (31)
Tax paid                                                      (3)         -
Cash outflow from operating activities                       (12)     (116)

Cash flow from investing activities
Contribution to joint venture                                 (7)       (1)
Purchase of property, plant and equipment                   (134)      (91)
Purchase of intangible assets                                 (2)       (2)
Cash used in investing activities                           (143)      (94)

Cash flow from financing activities
Dividends paid to non-controlling interests           7      (19)      (37)
Proceeds from current borrowings                      9       391       605
Repayment of current borrowings                       9      (60)     (518)
Proceeds from non-current borrowings                  9         -        88
Issue of other ordinary share capital                           3         1
Cash inflow from financing activities                         315       139
Increase / (decrease) in cash and cash equivalents    9       160      (71)
Opening cash and cash equivalents                     9       143       201
Effect of foreign exchange rate changes               9        17        13
Closing cash and cash equivalents                     9       320       143

Notes to the accounts

1. Statement on accounting policies

Basis of preparation

The financial information presented has been prepared on the basis of International Financial Reporting Standards (IFRSs) as
adopted by the EU.

Going concern

In determining the appropriate basis of preparation of the financial statements, the Directors are required to consider whether
the Group can continue in operational existence for the foreseeable future.

The financial performance of the Group is dependent upon the wider economic environment in which the Group operates.
Factors exist which are outside the control of management which can have a significant impact on the business, specifically,
volatility in the Rand / US Dollar exchange rate and PGM commodity prices. Despite the operational and cost containment
achievements of the Group over the last 12 months, the declining PGM price environment has put the Group’s cash flows and
profitability under pressure. The Directors have determined that the Group needs to take further decisive measures to improve
its ability to operate in the current PGM pricing environment and to enable the Group to benefit from any recovery in PGM
prices in the medium to long term. The Board and executive management have reviewed the Group's business and capital
structure and developed the Business Plan in order to be able to deal effectively with the effects of a continuation of the current
low PGM price environment. Key elements of the business plan are the reduction of fixed cost expenses, removal of high cost
production and the minimising of capital expenditure while preserving the ability of the business to increase production when
PGM markets improve.

The Board’s review of the Group’s capital structure has resulted in significant steps being taken to strengthen our financial
position. As noted in note 11, the Company entered into an agreement with J.P Morgan Securities plc, HSBC Bank plc and The
Standard Bank of South Africa Limited to fully underwrite approximately $407 million of the planned Rights Issue (before
issuance costs and other charges). In conjunction with the planned Rights Issue, the Company has negotiated certain
amendments to the terms of the Group’s existing debt facilities which are detailed in note 11. The Amended Facilities will only
come into effect upon underwriting agreement in respect of the Right Issue going unconditional and satisfaction of
customary condition precedent.

The Directors have prepared cash flow forecasts for a period in excess of 12 months. Various scenarios have been
considered to test the group’s resilience against operational risks including:
      - Adverse movements in the rand/dollar exchange rate and PGM commodity prices or a combination thereof;
      - Failure to meet forecast production targets.

The Directors have concluded that the Group’s new capital structure, after a successful Rights Issue and debt facilities
amendments, provides sufficient headroom to cushion against downside operational risks and reduces the risk of breaching
new debt covenants under the Amended Facilities.

The planned Rights Issue is conditional upon the Resolution being passed by the Company’s shareholders at the General
Meeting on the 19 November 2015, on Admission of the New Shares to the premium listing segment of the Official List,
Admission of the Nil Paid Rights to trading on the LSE, Admission of the Letters of Allocation and New Shares to trading on the
JSE and on the Underwriting Agreement becoming unconditional. Therefore, if the Resolution is not passed by the Company’s
shareholders at the General Meeting on the 19 November 2015, or any of these events do not occur, the planned Rights Issue
will not proceed. If the planned Rights Issue does not proceed the Amended Facilities will not come into effect.

Although the Group would have some options available to it that, in the event that the Proposed Rights Issue is not completed
and the Amended Facilities Agreements do not come into effect, might potentially reduce the risk that the Group would be
unable to meet its obligations as they fall due, no assurance can be given that any such options would be successful,
particularly given the limited time that would be available to the Group. Such options might include:

      -  seeking to agree with the Group's existing lenders or other parties an alternative refinancing of the Existing Facilities;
         and
      -  seeking to dispose of some or all of the Group's assets or a merger or acquisition transaction involving the Company
         (although there is no certainty that such sales or transactions could be realised in the available timeframe on
         acceptable terms, or at all).

As these actions require the participation, agreement or approval of external parties, the Directors are not confident that any
such alternative courses of action could be achieved in the limited time available, or that they ultimately would be successful.
Accordingly, the Directors believe that the successful completion of the planned Rights Issue and implementation of the
Amended Facilities Agreements represents the best option available to the Company.The need for shareholder approval of the
planned Rights Issue therefore represents a material uncertainty that may cast significant doubt about the Group’s and
Company’s ability to continue as a going concern such that the they may be unable to realise their assets and discharge their
liabilities in the normal course of business.

Nevertheless, based on the Group’s expectation that the conditions of the planned Rights Issue will be met, in addition to the
Group’s current trading and forecasts, the Directors believe that the Group will be able to comply with its financial covenants
under the Amended Facilities, and be able to meet its obligations as they fall due, and accordingly have formed a judgment
that it is appropriate to prepare the financial statements on a going concern basis. Therefore, these financial statements do not
include any adjustments that would result if the going concern basis on preparation is inappropriate.

New standards and amendments in the year

The following revised IFRS’s have been adopted in these financial statements. The application of these IFRS’s did not have
any material impact on the amounts reported for the current and prior years:

 -  IFRS 10, IFRS 11 and amendments to IAS 28 regarding Consolidated Financial Statements, Joint Arrangements and
    Investments in Associates and Joint Ventures did not have a material impact on the amounts reported for the current and
    prior years. IFRS 12 - Disclosure of Interests in Other Entities did have a disclosure impact on the Group’s financial
    statements.
 -  IAS 32 – Offsetting financial assets and financial liabilities. The amendments clarify when an entity can offset financial
    assets and financial liabilities.
 -  IAS 39 - Financial Instruments: Recognition and Measurement requires an entity to discontinue hedge accounting if the
    derivative hedging instrument is novated to a clearing counterparty, unless the hedging instrument is being replaced as
    part of the entity’s original documented hedging strategy.
 -  IFRC 21 - Levies. Levies have become more common in recent years, with governments in a number of jurisdictions
    introducing levies to raise additional income. IFRIC 21 provides guidance on accounting for levies in accordance with
    IAS 37 Provisions, Contingent Liabilities and Assets.

There were no other new standards, interpretations or amendments to standards issued and effective for the year which
materially impacted the Group’s financial statements.

2. Segmental analysis

The Group distinguishes among three reportable operating segments being the Platinum Group Metals (PGM) Operations
segment, the Evaluation segment and the Exploration segment.

The PGM Operations segment comprises the activities involved in the mining and processing of PGMs, together with
associated base metals, which are carried out entirely in South Africa. These operations are integrated and designed to
support the process for extracting and refining PGMs from underground. PGMs move through each stage of the process and
undergo successive levels of refinement which result in fully refined metals. The Chief Executive Officer, who performs the role
of Chief Operating Decision Maker (CODM), views the PGM Operations segment as a single whole for the purposes of
financial performance monitoring and assessment and does not make resource allocations based on margin, costs or cash
flows incurred at each separate stage of the process. In addition, the CODM makes his decisions for running the business on a
day to day basis using the physical operating statistics generated by the business as these summarise the operating
performance of the entire segment.

The Evaluation segment covers the evaluation through pre-feasibility of the economic viability of newly discovered PGM
deposits. Currently all of the evaluation projects are based in South Africa.

The Exploration segment covers the activities involved in the discovery or identification of new PGM deposits. This activity
occurs on a worldwide basis.

No operating segments have been aggregated. Operating segments have consistently adopted the consolidated basis of
accounting and there are no differences in measurement applied. The Other segment covers mainly the results and investment
activities of the corporate Head Office. The only intersegment transactions involve the provision of funding between segments
and any associated interest.

                                                           Year ended 30 September 2015
                                              PGM                                            Inter-
                                       Operations   Evaluation   Exploration                segment
                                          Segment      Segment       Segment   Other    Adjustments     Total
                                               $m           $m            $m      $m             $m       $m

Revenue (external sales by product):
     Platinum                                 823            -             -       -               -     823
     Palladium                                250            -             -       -               -     250
     Rhodium                                   92            -             -       -               -      92
     Gold                                      29            -             -       -               -      29
     Ruthenium                                  8            -             -       -               -       8
     Iridium                                   16            -             -       -               -      16
     PGMs                                   1,218            -             -       -               -   1,218
     Nickel                                    39            -             -       -               -      39
     Copper                                    12            -             -       -               -      12
     Chrome                                    24            -             -       -               -      24
                                            1,293            -             -       -               -   1,293

                                                           Year ended 30 September 2015
                                             PGM                                              Inter-
                                      Operations   Evaluation   Exploration                  segment
                                         Segment      Segment       Segment    Other     Adjustments        Total
                                              $m           $m            $m       $m              $m           $m
Underlying (i):
EBITDA / (LBITDA) (ii)                        40            7           (5)     (21)               -           21
Depreciation, amortisation and
impairment                                 (155)            -             -        -               -        (155)
Operating (loss) / profit (ii)             (115)            7           (5)     (21)               -        (134)
Finance income                                17            -             -       13            (14)           16
Finance expenses                            (48)            -             -       14              14         (20)
Share of loss of equity accounted
investments                                  (5)            -             -        -               -          (5)
(Loss) / profit before taxation            (151)            7           (5)        6               -        (143)
Income tax credit                             34            -             -        1               -           35
Underlying (loss) / profit after
taxation                                   (117)            7           (5)        7               -        (108)
Special items after tax (note 3) (iii)   (1,380)        (173)             -    (238)               -      (1,791)
Loss after taxation                      (1,497)        (166)           (5)    (231)               -      (1,899)

Total assets (iv)                          2,117           60             3    1,724         (1,475)        2,429
Total liabilities                        (1,800)        (134)          (56)    (394)           1,475        (909)
Net assets / (liabilities)                   317         (74)          (53)    1,330               -        1,520

Share of net assets of equity
accounted investments                         26            -             -        -               -           26
Additions to property, plant,
equipment and intangibles                    159            2             -        -               -          161

Material non - cash items – share-
based payments                                14            -             -        1               -           15

                                                             Year ended 30 September 2014
                                              PGM                                             Inter-
                                       Operations   Evaluation   Exploration                 segment
                                          Segment      Segment       Segment   Other     Adjustments   Total
                                               $m           $m            $m      $m              $m      $m

Revenue (external sales by product):
     Platinum                                 620            -             -       -               -     620
     Palladium                                165            -             -       -               -     165
     Rhodium                                   85            -             -       -               -      85
     Gold                                      21            -             -       -               -      21
     Ruthenium                                  7            -             -       -               -       7
     Iridium                                   15            -             -       -               -      15
     PGMs                                     913            -             -       -               -     913
     Nickel                                    29            -             -       -               -      29
     Copper                                    10            -             -       -               -      10
     Chrome                                    13            -             -       -               -      13
                                              965            -             -       -               -     965
 Underlying (i):
 EBITDA / (LBITDA) (ii)                       204            5           (6)     (9)               -     194
 Depreciation, amortisation and
 impairment                                 (142)            -             -       -               -   (142)
 Operating profit / (loss) (ii)                62            5           (6)     (9)               -      52
 Finance income                                15            -             -      21            (10)      26
 Finance expenses                            (19)            -             -    (19)              10    (28)
 Share of loss of equity accounted
 investments                                  (4)            -             -       -               -     (4)
 Profit / (loss) before taxation               54            5           (6)     (7)               -      46
 Income tax expense                           (5)            -             -       -               -     (5)
 Underlying profit / (loss) after
 taxation                                      49            5           (6)     (7)               -      41
 Special items after tax (note 3) (iii)     (181)            -             -    (63)               -   (244)
 (Loss) / profit after taxation             (132)            5           (6)    (70)               -   (203)

 Total assets (iv)                          3,767          277             1   1,546         (1,226)   4,365
 Total liabilities                        (1,940)        (185)          (48)    (36)           1,226   (983)
 Net assets                                 1,827           92          (47)   1,510               -   3,382

 Share of net assets of equity
 accounted investments                         28            -             -       -               -      28
 Additions to property, plant,
 equipment and intangibles                    109            2             -       -               -     111

 Material non-cash items – share-
 based payments                                14            -             -       1               -      15

Revenue by destination is analysed by geographical area below:
                                                                    Year ended     Year ended
                                                                  30 September   30 September
                                                                          2015           2014
                                                                            $m             $m
The Americas                                                               260            118
Asia                                                                       240            247
Europe                                                                     559            426
South Africa                                                               234            174
                                                                         1,293            965

The Group's revenue is all derived from the PGM Operations segment. This segment has two major customers who
contributed 58% ($505 million) and 16% ($204 million) of revenue in the 2015 financial year (2014 - 60% ($580 million) and
25% ($241 million)).

Metal sales prices are based on market prices which are denominated in US Dollars. The majority of sales are also invoiced in
US Dollars with the exception of certain sales in South Africa which are invoiced in South African Rand based on exchange
rates determined in accordance with the contractual arrangements.

Non-current assets, (excluding financial instruments), of $1,635 million (2014 - $3,407 million) are all situated in South Africa.

Footnotes:

(i)   Underlying results are based on reported results excluding the effect of special items as defined in note 3.
(ii)  EBITDA / (LBITDA) and operating (loss) / profit are the key profit measures used by management.
(iii) The impairment of the HDSA receivable to the value of $227 million (2014 - $80 million) and of non- financial assets of $1,811 million (2014 - $nil) are shown as special
      items in the segmental analysis. The HDSA receivable forms part of the "Other" segment. The impairment of non-financial assets are allocated to the PGM Operations
      Segment and the Evaluation Segment.
(iv)  The assets under "Other" include the HDSA receivable of $102 million (2014 - $337 million) and intercompany receivables of $1,475 million (2014 - $1,226 million).
      Available for sale financial assets of $7 million (2014 - $11 million) forms part of the "Other" segment and the balance of $4 million (2014 - $4 million) forms part of the
      PGM Operations Segment.

3. Special Items

‘Special items’ are those items of financial performance that the Group believes should be separately disclosed on the face of
the income statement to assist in the understanding of the financial performance achieved by the Group and for consistency
with prior years.

                                                                                 2015     2014
                                                                                   $m       $m

Operating loss:                                                               (1,884)    (307)
Strike related costs
- Idle fixed production costs                                                       -    (287)
- Security costs                                                                    -     (10)
- Contractors’ claims                                                               -      (3)
- Other costs                                                                       -      (7)
BEE transaction (i)
- BEE charge                                                                     (13)        -
- Consulting fees                                                                 (1)        -
Restructuring and reorganisation costs (ii)                                      (59)        -
Impairment of non-financial assets (iii)
- Impairment of goodwill                                                         (40)        -
- Impairment of intangibles                                                     (358)        -
- Impairment of property, plant and equipment                                 (1,413)        -

Impairment of available for sale financial assets                                   -      (1)
Share of loss of equity accounted investments                                       -      (2)

Net finance expenses:                                                           (235)     (62)
- Interest accrued from HDSA receivable (iv)                                       20       18
- Foreign exchange loss on HDSA receivable (iv)                                  (28)        -
- Impairment of HDSA loan receivable (iv)                                       (227)     (80)

Loss on special items before taxation                                         (2,119)    (372)
Taxation related to special items (note 5)                                        328      128
Special loss before non-controlling interest                                  (1,791)    (244)
Non-controlling interests                                                         224       25
Special loss for the year attributable to equity shareholders of Lonmin Plc   (1,567)    (219)

Footnotes:

(i)   In December 2014, Lonmin concluded a series of shareholding agreements which enabled Lonmin to meet its BEE equity ownership target of 26% as required under the
      Mining Charter. This gave rise to a BEE charge of $13 million relating to the premium paid for the Bapo baMogale Traditional Community (The Bapo) to maintain their
      shareholding for a period of 10 years. Consulting fees to the amount of $1 million were also incurred in relation to the transaction.
(ii)  These costs relate to the one-off redundancy costs ($56 million) and associated restructuring costs ($3 million) in respect of the restructuring process undertaken as part
      of the Business Plan. A total of $39 million remains outstanding at 30 September 2015 and is included in current provisions.
(iii) As explained more fully in note 10, the Group’s non-financial assets were impaired by $1,811 million (2014 - $nil).
(iv)  During the year ended 30 September 2010 the Group provided financing to assist Lexshell 806 Investments (Proprietary) Limited, a subsidiary of Shanduka Resources
      (Proprietary) Limited (Shanduka) to acquire a majority shareholding in Incwala, Lonmin’s Black Economic Empowerment partner. This financing gave rise to foreign
      exchange movements and the accrual of interest. The loan was impaired by $227 million as explained in note 8.

4. Net finance expenses

                                                       2015   2014
                                                         $m     $m

Finance income:                                          16     26
- Interest receivable on cash and cash equivalents        3      6
- Dividend received from investment (i)                   1     10
- Foreign exchange gains on net (debt) / cash (ii)       12     10

Finance expenses:                                      (20)   (28)
- Interest payable on bank loans and overdrafts        (20)   (19)
- Bank fees                                             (8)   (12)
- Capitalised interest (iii)                             19     13
- Other finance expenses                                (1)      -
- Unwinding of discount on provisions                  (10)   (10)

Special items (note 3):                               (235)   (62)
- Interest on HDSA receivable (note 8)                  20      18
- Foreign exchange loss on HDSA receivable (note 8)    (28)      -
- Impairment of HDSA loan receivable (note 8)         (227)   (80)

Net finance expenses                                  (239)   (64)

Footnotes:

(i)   Dividend received relates to dividends accruing from investment in Petrozim Line (Private) Limited which were remitted during the year. The investment in Petrozim Line
      (Private) Limited has a $nil carrying value as it has been fully impaired.
(ii)  Net (debt) / cash as defined by the Group comprises cash and cash equivalents, bank overdrafts repayable on demand and interest bearing loans and borrowings less
      unamortised bank fees, unless the unamortised bank fees relate to undrawn facilities in which case they are treated as other receivables.
(iii) Interest expenses incurred have been capitalised on a Group basis to the extent that there is an appropriate qualifying asset. The weighted average interest rate used by
      the Group for capitalisation is 3.8% (2014 – 3.0%).

5. Taxation
                                                                      2015    2014
                                                                        $m      $m
Current tax charge (excluding special items):
United Kingdom tax expense                                               -       -
Current tax expense at 20.5% (2014 – 22%) (i)                            -       -
Less amount of the benefit arising from double tax relief available      -       -

Overseas current tax expense at 28% (2014 – 28%)                         4       2
Corporate tax expense – current year                                     4       1
Adjustment in respect of prior years                                     -       1

Deferred tax (credit) / charge (excluding special items):
Deferred tax expense - UK and overseas                                (39)       3
Origination and reversal of temporary differences                     (39)       3

Tax credit on special items – UK and overseas (note 3):              (328)   (128)
Foreign exchange on deferred taxation (ii)                            (48)    (42)
Tax on special items impacting profit before tax                     (280)    (86)

Actual tax credit                                                    (363)   (123)

Tax (credit) / charge excluding special items (note 3)                (35)       5

Effective tax rate                                                     16%     38%

Effective tax rate excluding special items (note 3)                    24%     11%

A reconciliation of the standard tax credit to the actual tax credit was as follows:

                                                2015    2015    2014    2014
                                                   %      $m       %      $m
Tax credit on loss at standard tax rate           28   (626)      28    (91)
Tax effect of:
- Unutilised losses (iii)                        (1)      27     (2)       7
- Foreign exchange impacts on taxable profits      2    (37)       7    (21)
- Disallowed expenditure                        (15)     316     (6)      19
- Expenses not subject to tax                      -       5     (2)       5
Foreign exchange revaluation on deferred tax       2    (48)      13    (42)
Actual tax credit                                 16   (363)      38   (123)

The Group's primary operations are based in South Africa. The South African statutory tax rate is 28% (2014 - 28%). Lonmin
Plc operates a branch in South Africa which is also subject to a tax rate of 28% on branch profits (2014 - 28%). The
aggregated standard tax rate for the Group is 28% (2014 - 28%). The dividend withholding tax rate is 15% (2014 - 15%).
Dividends payable by the South African companies to Lonmin Plc are subject to a 5% withholding tax benefitting from double
taxation agreements.

Footnotes:

(i)   Effective from 1 April 2015, the United Kingdom tax rate changed from 21% to 20% and will change from 20% to 19% from 1 April 2017 and from 19% to 18% from 1 April
      2020. This does not materially impact the Group's recognised deferred tax liabilities.
(ii)  Overseas tax charges are predominantly calculated based in Rand as required by the local authorities. As these subsidiaries’ functional currency is US Dollar this leads to
      a variety of foreign exchange impacts being the retranslation of current and deferred tax balances and monetary assets, as well as other translation differences. The Rand
      denominated deferred tax balance in US Dollars at 30 September 2015 is $177 million (30 September 2014 - $268 million).
(iii) Unutilised losses reflect losses generated in entities for which no deferred tax is provided as it is not thought probable that future profits can be generated against which a
      deferred tax asset could be offset or previously unrecognised losses utilised.

6. (Loss) / earnings per share
Loss per share (LPS) has been calculated on the loss attributable to equity shareholders amounting to $1,661 million (2014 –
loss of $188 million) using a weighted average number of 581,712,484 ordinary shares in issue (2014 – 569,649,750 ordinary
shares).

Diluted loss per share is based on the weighted average number of ordinary shares in issue adjusted by dilutive outstanding
share options in accordance with IAS 33 - Earnings Per Share. As at 30 September 2015 outstanding share options were anti-
dilutive and so were excluded from diluted loss per share.

                                            2015                                     2014
                             Loss for                  Per share   Loss for                    Per share
                             the year     Number of       amount   the year       Number of       amount
                                   $m        shares        cents         $m          shares        cents
Basic LPS                     (1,661)   581,712,484      (285.5)      (188)     569,649,750       (33.0)
Share option schemes                -             -            -          -               -            -
Diluted LPS                   (1,661)   581,712,484      (285.5)      (188)     569,649,750       (33.0)

                                            2015                                     2014
                             Loss for                  Per share Profit for                   Per share
                             the year     Number of       amount   the year       Number of      amount
                                   $m        shares        cents         $m          shares       cents
Underlying (LPS) / EPS           (94)   581,712,484       (16.2)         31     569,649,750         5.4
Share option schemes                -             -            -          -       5,917,508           -
Diluted Underlying (LPS) /
EPS                              (94)   581,712,484       (16.2)         31     575,567,258         5.4

Underlying earnings per share has been presented as the Directors consider it important to present the underlying results of
the business. Underlying earnings per share is based on the earnings attributable to equity shareholders adjusted to exclude
special items (as defined in note 3) as follows:

                                      2015                                     2014
                                                                (Loss) /
                         Loss for                  Per share  profit for                 Per share
                         the year     Number of       amount    the year     Number of      amount
                               $m        shares        cents          $m        shares       cents
Basic LPS                 (1,661)   581,712,484      (285.5)       (188)   569,649,750      (33.0)
Special items (note 3)      1,567             -        269.3         219             -        38.4
Underlying (LPS) / EPS       (94)   581,712,484       (16.2)          31   569,649,750         5.4

Headline loss and the resultant headline loss per share are specific disclosures defined and required by the Johannesburg
Stock Exchange. These are calculated as follows:

                                                                   Year ended      Year ended
                                                                 30 September    30 September
                                                                         2015            2014
                                                                           $m              $m
Loss attributable to ordinary shareholders (IAS 33 earnings)          (1,661)           (188)
Add back loss on disposal of property, plant and equipment                  3               -
Add back impairment of assets (note 3)                                  1,811               1
Tax related to the above items                                          (261)               -
Non-controlling interests                                               (224)               -
Headline loss                                                           (332)           (187)

                                      2015                                2014
                       Loss for                 Per share   Loss for                  Per share
                       the year     Number of      amount   the year     Number of       amount
                             $m        shares       cents         $m        shares        cents
Headline LPS              (332)   581,712,484      (57.1)      (187)   569,649,750       (32.8)
Share option schemes          -             -           -          -             -            -
Diluted Headline LPS      (332)   581,712,484      (57.1)      (187)   569,649,750       (32.8)

7. Dividends

No dividends were declared by Lonmin Plc for the financial years ended 30 September 2015 and 30 September 2014.

A subsidiary of Lonmin Plc, WPL, made advance dividend payments of $19 million (R228 million) (2014 - $37 million (R408
million)) to Incwala Platinum (Proprietary) Limited (IP). IP is a substantial shareholder in the Company’s principal operating
subsidiaries. Total advance dividends made between 2009 and 2015 amount to R1,309 million ($135 million). IP has
authorised WPL to recover these amounts by reducing future dividends that would otherwise be payable to all shareholders.

These advance dividends are adjusted for in the non-controlling interest of the Group.

8. Other financial assets

                                Restricted    Available for         HDSA
                                      cash             sale   receivable   Total
                                        $m               $m           $m      $m
At 1 October 2014                       12               15          337     364
Interest accrued                         1                -           20      21
Movement in fair value                   -              (4)            -     (4)
Foreign exchange differences           (5)                -         (28)    (33)
Impairment loss                          -                -        (227)   (227)
At 30 September 2015                     8               11          102     121


                                Restricted        Available         HDSA
                                      cash         for sale   receivable   Total
                                        $m               $m           $m      $m
At 1 October 2013                       14               17          399     430
Interest accrued                         1                -           18      19
Movement in fair value                   -              (1)            -     (1)
Foreign exchange differences           (3)                -            -     (3)
Impairment loss                          -              (1)         (80)    (81)
At 30 September 2014                    12               15          337     364

                                                                    2015    2014
                                                                      $m      $m
Current assets
Other financial assets                                               102     337

Non-current assets
Other financial assets                                               19       27

Restricted cash deposits are in respect of mine rehabilitation obligations.

Available for sale financial assets include listed investments of $7 million (2014 - $11 million) held at fair value using the
market price on 30 September 2015.

No available for sale financial assets were impaired in the 2015 financial year (2014 - $1 million).

On 8 July 2010, Lonmin entered into an agreement to provide financing of £200 million to Lexshell 806 Investments
(Proprietary) Limited, a subsidiary of Shanduka Resources (Proprietary) Limited, to facilitate the acquisition, at fair value, of
50.03% of shares in Incwala Resources (Proprietary) Limited from the original HDSA shareholders. The terms of the financing
provided by Lonmin Plc to the Shanduka subsidiary include the accrual of interest on the HDSA receivable at a fixed rate
based on a principal value of £200 million which is repayable on demand, including accrued interest.

The Company holds the HDSA receivable at amortised cost. The receivable is secured on shares in the HDSA borrower,
whose only asset of value is its holding in Incwala Resources (Pty) Limited (Incwala). Incwala’s principal assets are
investments in Western Platinum Limited (WPL), Eastern Platinum Limited (EPL) and Akanani Mining (Pty) Limited
(Akanani), all subsidiaries of Lonmin Plc. One of the sources of income to fund the settlement of the receivable is the
dividend flow from these underlying investments. Given the current state of the PGM industry there have not been any
substantial dividend declared to Incwala in recent times.

Given the above matters, the Directors have determined that it is likely that a loss event may have occurred.
Accordingly, an assessment has been performed to determine the extent of impairment. This assessment has been
made based on the value of the security, which is primarily driven by the value of Incwala’s underlying investments in
WPL, EPL and Akanani. The same valuation models for the Marikana and Akanani CGU’s that were prepared to assess
impairment of non-financial assets were used as the basis for determining the value of Incwala’s investments. Thus,
similar judgements apply around the determination of key assumptions in those valuation models. Based on the
assessment, the value of the HDSA receivable was determined to be $102 million (2014 - $337 million) which resulted in
an impairment charge of $227 million (2014 - $80 million).

Any movements in the key assumptions would affect the value of the security which would lead to further impairment or
reversal of a previous impairment of the receivable as follows:

                                             Reversal of impairment /
                                Movement in   (further impairment) of
Assumption                       assumption                receivable

Metal prices                          +/-5%               $29m/($30m)
ZAR:USD exchange rate                 -/+5%               $22m/($24m)
Discount rate          -/+ 100 basis points               $13m/($12m)
Production                            +/-5%               $32m/($65m)

9. Net (debt) / cash as defined by the Group

                                                                              Transfer of
                                                              Foreign          unmortised
                                          As at          exchange and        bank fees to            As at
                                      1 October   Cash       non-cash               other     30 September
                                           2014   flow      movements         receivables             2015
                                             $m     $m             $m                  $m               $m

Cash and cash equivalents (ii)              143    160             17                   -              320
Current borrowings                         (87)  (331)           (88)                   -            (506)
Non-current borrowings                     (88)      -             88                   -                -
Unamortised bank fees (iii)                   3      -            (2)                   -                1

Net debt as defined by the Group (i)       (29)  (171)             15                   -            (185)

                                                              Foreign         Transfer of
                                         As at           exchange and     unmortised bank            As at
                                     1 October    Cash       non-cash       fees to other     30 September
                                          2013    flow      movements         receivables             2014
                                            $m      $m             $m                  $m               $m

Cash and cash equivalents                  201    (71)             13                   -              143
Current borrowings                           -    (87)              -                   -             (87)
Non-current borrowings                       -    (88)              -                   -             (88)
Unamortised bank fees (iii)                  -       -              -                   3                3
Net cash / (debt) as defined by the
Group (i)                                  201   (246)             13                   3             (29)

Footnotes:

(i)    Net (debt) / cash as defined by the Group comprises cash and cash equivalents, bank overdrafts repayable on demand and interest bearing loans and borrowings less
       unamortised bank fees, unless the unamortised bank fees relate to undrawn facilities in which case they are treated as other receivables.
(ii)   Current cash and cash equivalents to the value of $6 million will be treated as restricted cash to be utilised for rehabilitation obligations.
(ii)   As at 30 September 2015 unamortised bank fees of $1 million relating to drawn facilities were offset against net debt (30 September 2014 - $3 million of unamortised
       bank fees relating to undrawn facilities were included in other receivables).

10. Impairment of non-financial assets

At each financial reporting date, the Group assesses whether there is any indication that these assets are impaired. If any
such indication exists, the recoverable amount of the assets is estimated in order to determine the extent of the impairment
(if any). Recoverable amount is the higher of fair value less costs to sell and value in use.

For impairment assessment, the Group’s net assets are grouped into CGU’s being the Marikana CGU, Akanani CGU,
Limpopo CGU and Other. The Marikana and Limpopo CGU’s relate to the PGM segment and the Akanani CGU relates to
the Exploration segment.

The Marikana CGU is located in the Marikana district to the east of the town of Rustenburg in the North West Province of
South Africa. It contains a number of producing underground mines, various development properties, concentrators,
tailings storage facilities and smelting and refining operations.

The Akanani CGU is an exploration asset and is located on the Northern Limb of the Bushveld Igneous Complex in the
Limpopo Province of South Africa. A pre-feasibility study was completed in 2012.

The Limpopo CGU is located on the Northern Sector of the Eastern Limb of the Bushveld Igneous Complex in the Limpopo
Province of South Africa and comprises two resource blocks (Baobab and Baobab east). The CGU includes mines which
were placed on care and maintenance in 2009 and a concentrator complex.

For Marikana and Akanani, the recoverable amounts were calculated using a value in use valuation. The key assumptions
contained within the business forecasts and management’s approach to determine appropriate values in use are set out
below:

Key Assumption                  Management Approach
PGM                             Projections are determined through a combination of the views of the Directors, market
                                estimates and forecasts and other sector information. The Platinum price is projected to
                                be in the range of $1,050 to $1,535 per ounce in real terms over the life of the mine.
                                Palladium and Rhodium prices are expected to range between $605 and $840 and $855
                                and $2,245 respectively per ounce in real terms over the same period.

Production volume               Projections are based on the capacity and expected operational capabilities of the
                                mines, the grade of the ore, and the efficiencies of processing and refining operations.

Production costs                Projections are based on current cost adjusted for expected cost changes as well as
                                giving consideration to specific issues such as the difficulty in mining particular sections
                                of the reef and the mining method employed.

Capital expenditure             Projections are based on the operational plan, which sets out the long-term plan of the
requirements                    business and is approved by the Board.

Foreign currency exchange       Spot rates as at the end of the reporting period are applied.
rates
Reserves and resources of the   Projections are determined through surveys performed by Competent Persons and the
CGU                             views of the Directors of the Company.

Discount rate                   The discount rate is based on a Weighted Average Cost of Capital (WACC) calculation
                                using the Capital asset pricing model grossed up to a pre-tax rate. The Group uses
                                external consultants to calculate an appropriate WACC.

For impairment testing management projects cash flows over the life of the relevant mining operation which is significantly
greater than 5 years. For the Marikana CGU a life of mine spanning until 2058 was applied. For the Akanani CGU the life of
mine spans until 2049.

The risk-adjusted pre-tax discount rate applied for impairment testing in the Marikana CGU for 2015 was 15.6% real (2014
– 11.8% real). The rate applied for the exploration and evaluation asset in the Akanani CGU for 2015 was 17.9% nominal
(2014 – 16.5% nominal).

The Limpopo CGU was valued on a fair value less cost to sell basis. The latest market transactions and resource multiples
were reviewed and given the current PGM environment, it was decided to impair the Limpopo asset to $nil.

For the 2015 financial year, the Group’s non-financial assets were impaired by $1,811 million primarily due to the reduced
production profile and revised PGM price outlook in the Business Plan which have resulted in the downward revision of
estimated future cash flows from the Marikana operations. This led to the value in use declining below the carrying amount
of the non-financial assets of the operations. The impairment charge was allocated to the different CGU's as follows:

                                  Marikana   Akanani    Limpopo
                                       CGU       CGU        CGU     Total
Carrying amount pre-impairment:
Goodwill                                40         -          -        40
Other intangibles                      180       219         53       452
Property, plant and equipment        2,816         -         74     2,890
Equity accounted investments            26         -          -        26
Royalty prepayment                      38         -          -        38
Total                                3,100       219        127     3,446

                                  Marikana   Akanani    Limpopo
                                       CGU       CGU        CGU     Total
Recoverable amount:
Goodwill                                 -         -          -         -
Other intangibles                       94         -          -        94
Property, plant and equipment        1,477         -          -     1,477
Equity accounted investments            26         -          -        26
Royalty prepayment                      38         -          -        38
Total                                1,635         -          -     1,635

                                  Marikana   Akanani    Limpopo
                                       CGU       CGU        CGU     Total
Impairment:
Goodwill                              (40)         -          -      (40)
Other intangibles                     (86)     (219)       (53)     (358)
Property, plant and equipment      (1,339)         -       (74)   (1,413)
Equity accounted investments             -         -          -         -
Royalty prepayment                       -         -          -         -
Total                              (1,465)     (219)      (127)   (1,811)

For the Marikana CGU, the impairment charge was first allocated to goodwill. The remaining balance of the impairment
charge was allocated pro-rata to the other non-financial assets, but limited to the assets’ recoverable amounts.

In preparing the financial statements, management has considered whether a reasonably possible change in the key
assumptions on which management has based its determination of the recoverable amounts of the CGUs would cause the
units’ carrying amounts to exceed their recoverable amounts. A reasonably possible change in any of the assumptions
used to value the Marikana CGU will lead to a reduction or increase in the impairment charge as follows:

                                                    Reversal of
                        Movement in         impairment/(Further
Assumption              assumption                  impairment)
Metal prices            +/-5%                     $329m/($336m)
ZAR:USD exchange rate   -/+5%                     $247m/($279m)
Discount rate           -/+100 basis points       $146m/($137m)
Production              +/-5%                     $361m/($361m)

The Akanani CGU was impaired in 2012, and as such a change in any of the key assumptions would lead to further impairment
or reversal of the previous impairment. Similar impairment assessments were performed on our Akanani asset. These have
resulted in full impairment of the assets in the Akanani CGU, with a further impairment charge of $219 million. Reasonably
possible movements in any of the three key assumptions would not result in a reversal of previous impairment.

11. Events after the financial reporting period

The announcement of these results coincides with the launch of a Rights Issue which is conditional on, amongst other things,
shareholder approval. The Group proposes to raise approximately $407 million, before deducting share issue costs and foreign
exchange charges, as well as amend the existing debt facilities.

The amended debt facility agreements which were entered into on 9 November 2015 will become effective only once the Underwriting Agreement
in respect of right issue has become wholly unconditional and the satisfaction of customary conditions precedent.

Following the amendment, the Group’s debt facilities going forward are summarised as follows:
      -Secured revolving credit facilities totalling $75 million and a $150 million term loan, at a Lonmin Plc Level, which mature in May
         2020 (assuming Lonmin exercises its option to extend the term up until this date).
      -Secured revolving credit facility totalling R1,980 million, at a Western Platinum Limited level, which matures in May 2020
         (assuming Lonmin exercises its option to extend the term up until this date).

The following covenants apply to these facilities:
      -   The consolidated tangible net worth of the Group on or 31 March 2016 will not be at any time less than US$1,100 million.
      -   The consolidated debt of the Group on or 31 March 2016 will not at any time exceed an amount equal to 35% of consolidated tangible net
          worth of the Group;
      -   The liquidity for the Group will not, for any week from 1 January 2016, be less than $20,000,000;
      -   The capital expenditure of the Group (excluding any Bulk Tailings Agreement) shall not exceed the limits set out in the
          table below. The Company shall also have the option to carry forward or back up to 10% of the limits set out in the
          table below.

 Financial Year                                                          Capex Limit
 1 October 2015 – 30 September 2016 (inclusive)                          ZAR1,338 million
 1 October 2016 – 30 September 2017 (inclusive)                          ZAR1,242 million
 1 October 2017 – 30 September 2018 (inclusive)                          ZAR2,511 million
 1 October 2018 – 30 September 2019 (inclusive)                          ZAR3,194 million
 1 October 2019 – 31 May 2020 (inclusive)                                ZAR4,049 million

There is also additional limit on capital expenditure in relation to any Bulk Tailings Agreement as set out below:

 Financial Year                                                          Bulk Tailings Capex Limit
 1 October 2015 – 30 September 2016 (inclusive)                          ZAR370 million
 1 October 2016 – 30 September 2017 (inclusive)                          ZAR182 million

The limit on capital expenditure in relation to any Bulk Tailings Agreement after 30 September 2017 will be
zero.

In addition to the above, the Group's existing lenders agreed on 26 October 2015 to suspend the testing of the tangible net
worth covenants under the existing facilities until the amended facilities agreements become effective, failing which,
the covenants would be tested under existing facilities.

12. Statutory Disclosure

The financial information set out above does not constitute the company's statutory accounts for the years ended 
30 September 2015 or 2014 but is derived from those accounts. Statutory accounts for 2014 have been delivered to the registrar
of companies, and those for 2015 will be delivered in due course. The auditor has reported on those accounts; their report on
the accounts for 2015 was (i) unqualified and (ii) drew attention by way of emphasis without qualifying their report to a material
uncertainty in respect of going concern and (iii) did not contain a statement under section 498 (2) or (3) of the Companies Act
2006. Their report for the accounts for 2014 was (i) unqualified, (ii) did not include a reference to any matters to which the
auditor drew attention by way of emphasis without qualifying their report and (iii) did not contain a statement under section 498
(2) or (3) of the Companies Act 2006.

Date: 09/11/2015 03:11:00 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
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