Production Report and Trading Statement for the Year Ended 31 December 2015 Merafe Resources Limited (Incorporated in the Republic of South Africa) (Registration number: 1987/003452/06) JSE share code: MRF ISIN: ZAE000060000 (“Merafe”) Production report and trading statement for the year ended 31 December 2015 Production report Merafe’s attributable ferrochrome production from the Glencore Merafe Chrome Venture (the Venture) for the year ended 31 December 2015 increased by 13% compared to the prior year. This increase was primarily attributable to the additional production from the Project Lion II furnaces. The Venture’s operating capacity utilisation for the year ended 31 December 2015 was 87% (79% of installed capacity). Quarter Quarter Year Year ended ended ended ended 31 31 31 31 December December December December 2015 2014 2015 2014 Attributable ferrochrome production (kt) 101 92 377 334 Trading statement In terms of the JSE Limited Listings Requirements, issuers are required to publish a trading statement as soon as they are satisfied that a reasonable degree of certainty exists that the financial results for the period to be reported on next will differ by at least 20% from those of the prior comparative period. Shareholders are advised that Merafe is expecting to report the following: Earnings per share - Basic earnings per share for the year ended 31 December 2015 of between 13.0 cents and 15.0 cents compared to 8.6 cents for the year ended 31 December 2014, which is an increase of between 51% and 74%. - Headline earnings per share for the year ended 31 December 2015 of between 13.0 cents and 15.0 cents, compared to 8.4 cents for the year ended 31 December 2014, which is an increase of between 55% and 79%. Expected cash and debt balances – Merafe Resources Limited Group 31 31 December December 2015 2014 R'm R'm Net cash / (overdraft) balance 310 (162) Merafe's 20.5% of the Venture's short term stock facility - (189) Merafe's 20.5% of the Venture's debtors facility (411) (283) ABSA and Standard Bank debt * (559) (617) Total (660) (1 251) * On 4 January 2016, R50m of the R559m ABSA and Standard Bank debt was repaid. Shareholders are advised that the financial information on which this trading statement is based, has not been reviewed or reported on by Merafe`s external auditors and is provided in terms of paragraph 3.4(b) of the JSE Limited Listings Requirements. The financial results for the year ended 31 December 2015 are expected to be released on SENS on 8 March 2016. 28 January 2016 Sandton Sponsor: Merrill Lynch South Africa Proprietary Limited Date: 28/01/2016 01:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.