ANGLO AMERICAN PLATINUM LIMITED - Anglo American Platinum announces the sale of its 42.5% interest in the Pandora Joint Venture to Lonmin

Anglo American Platinum announces the sale of its 42.5% interest in the Pandora Joint Venture to Lonmin

ANGLO AMERICAN PLATINUM LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1946/022452/06)
Share Code: AMS
ISIN: ZAE000013181
("Anglo American Platinum" or “the Company")

Anglo American Platinum announces the sale of its 42.5% interest in the Pandora Joint Venture
to Lonmin

Anglo American Platinum announces it has entered into a conditional Sale and Purchase Agreement
on 10 November 2016 with Eastern Platinum Limited, a wholly owned subsidiary of Lonmin plc
(“Lonmin”) to sell its 42.5% interest in the Pandora Joint Venture (“Pandora”) for a deferred cash
payment of a minimum of R400 million and a maximum of R1.0 billion over six years (nominal terms);
and a rental agreement for the use of and full operational control of Lonmin’s Baobab concentrator for
a three year period (the “Transaction”).

Rationale for the Transaction

In 2014 Anglo American Platinum announced the repositioning of its portfolio to focus on our most
competitive assets, consisting of largely open pit and mechanised operations which will result in higher
margin production, a smaller and more highly skilled workforce, safer operations and a less complex
organisation. Anglo American Platinum accordingly announced its intent to exit from certain non-core
operations including its interest in Pandora.

Deferred payment consideration

Anglo American Platinum will receive a deferred cash consideration calculated as 20% of the
distributable free cash flows generated by Pandora on an annual basis for a period of six years subject
to a minimum consideration of R400 million and maximum of R1.0 billion (in nominal terms). This
deferred consideration is based on the Pandora E3 operations cash flows on a mine-to-ore basis as set
out in the ore sales agreement.

Use of Baobab Concentrator

Lonmin will allow Anglo American Platinum continued access to, and full operational control of the
Baobab concentrator for a period of three years from the date of completion of the Transaction. The
Company will continue to pay Lonmin an annual rental fee, estimated in future at R46 million. Baobab
contributed 23,500 ounces of platinum production (metal in concentrate) in 2015

The use of the Baobab concentrator is of strategic importance to Anglo American Platinum, allowing it
to process excess ore and unlock value at Mogalakwena mine. Taking over operational control of
Baobab concentrator will allow the Company to integrate the operation into its supply chain activities,
resulting in cost reduction opportunities for Mogalakwena.

Conditions precedent and effective date

The Transaction remains subject to certain conditions precedent including the approval of the
Transaction by the competition authorities of the Republic of South Africa; and all necessary consents
being obtained from the Department of Mineral Resources of South Africa, including the section 11
approval for the transfer of the mining right to Lonmin. The Transaction is also subject to approval from
the remaining JV partner, Northam Limited. The Transaction is expected to become unconditional
during 2017 following the fulfilment of all conditions precedent.
Chris Griffith, CEO of Anglo American Platinum commented on the Transaction:

“Anglo American Platinum is pleased to announce another milestone in the repositioning of our portfolio
with the disposal of our 42.5% interest in Pandora to our joint venture partner Lonmin. We believe we
have concluded a beneficial transaction for both parties, whilst also securing a sustainable future for
the Pandora mine. The benefits of operational control over Baobab will enable us to unlock further value
at Mogalakwena mine and achieve cost savings”

Anglo American Platinum’s refers stakeholders to the announcement released by Lonmin on the Stock
Exchange News Service of the Johannesburg Stock Exchange and the Regulatory News Service of the
London Stock Exchange on 11 November 2016, regarding the Transaction.

Johannesburg, South Africa
11 November 2016

Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited).

For further information, please contact:
Investors:                                        Media:
Emma Chapman                                      Mpumi Sithole
(SA) +27 (0) 11 373 6239                          (SA) +27 (0) 11 373 6246
emma.chapman@angloamerican.com                    mpumi.sithole@angloamerican.com


Notes to editors:

Anglo American Platinum Limited is a member of the Anglo American plc Group and is the world’s
leading primary producer of platinum group metals. The company is listed on the Johannesburg
Securities Exchange (JSE). Its mining, smelting and refining operations are based in South Africa.
Elsewhere in the world, the Group owns Unki Platinum Mine in Zimbabwe. Anglo American Platinum
has a number of joint ventures with several historically disadvantaged South African consortia as part
of its commitment to the transformation of the mining industry. Anglo American Platinum is committed
to the highest standards of safety and continues to make a meaningful and sustainable difference in
the development of the communities around its operations.

www.angloamericanplatinum.com

Anglo American is a globally diversified mining business. Our portfolio of world-class competitive mining
operations and undeveloped resources provides the raw materials to meet the growing consumer-
driven demands of the world’s developed and maturing economies. Our people are at the heart of our
business. It is our people who use the latest technologies to find new resources, plan and build our
mines and who mine, process and move and market our products – from diamonds (through De Beers)
to platinum and other precious metals and copper – to our customers around the world.

As a responsible miner, we are the custodians of those precious resources. We work together with our
key partners and stakeholders to unlock the long-term value that those resources represent for our
shareholders, but also for the communities and countries in which we operate – creating sustainable
value and making a real difference.

www.angloamerican.com

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