PETMIN LIMITED - Correction - Quarterly update

Correction - Quarterly update

PETMIN LIMITED
Incorporated in the Republic of South Africa
Registration Number 1972/001062/06
Share Code JSE: PET
ISIN: ZAE000076014
("Petmin" or "the Company")

CORRECTION - QUARTERLY UPDATE

Shareholders are advised that the quarterly update published on SENS on 6 December
2016 had an error with regards to costs per tonne, in that it referred to costs per tonne
being in line with FY15 and should have read FY16. This has been corrected and for
completeness the full corrected quarterly update is published below.

SOMKHELE ANTHRACITE MINE: SOLID PERFORMANCE CONTINUES

Tendele Coal Mining, the operator of Petmin’s Somkhele anthracite mine in KwaZulu-Natal,
continues to focus on safety and productivity improvements to reduce costs and maximize
production and sales in difficult trading conditions.

During the quarter to end-September 2016, Somkhele increased anthracite sales by 2% and
maintained production costs per tonne in line with FY16.

                                 Quarter ended               Quarter ended                                       Year ended
 Description                                                                                        % Change
                                 September 2016            September 2015                                    June 2016

 Anthracite
 tonnes produced        342 536                       352 179                      (3%)                    1 236 433
 
 
Anthracite
tonnes sold                   363 982                       355 201                      2%                     1 122 162

 Anthracite
yield                               44.51%                         44.56%                       0%                      44.01%
 
 Energy coal
 tonnes
produced                       86 474                         86 032                         1%                     349 405
 
 Energy coal
tonnes sold                    55 920                         85 190                        (34%)                 441 579
 
 Energy coal
 yield                               26.89%                        26.45%                         2%                    29.53%


Production of metallurgical anthracite for the quarter decreased by 3% to 342 536 tonnes
(2015: 352 179 tonnes). Sales volumes increased by 2% to 363 982 tonnes (2015: 355 201
tonnes) as demand for Somkhele anthracite products remains firm.

Energy coal production increased by 1% to 86 474 tonnes for the quarter (2015: 86 032
tonnes). Although sales for this product in the quarter were down, this was a timing issue
related to planned export vessels and is not reflective of the continued strong demand for this
product. 55 920 tonnes of energy coal were sold in the three-month period (2015: 85 190
tonnes).

While sales volumes have improved in 2016, average export prices (in Rand terms) for the
three months ended 30 September 2016 were some 18% lower than the average prices
achieved in the year ended 30 June 2016. Average inland prices remained unchanged from
the average prices achieved in the year ended 30 June 2016. At-mine-gate energy coal sales
prices have increased by 1% from those achieved in the year ended 30 June 2016.

Export prices have been extremely volatile since 30 June 2016. We expect export prices in
Rands to improve in the period to 30 June 2017, although the volatility of the markets makes
it difficult to accurately forecast the Rand prices in the period ahead.

Sales commitments have been received for 1.16 million tonnes of an estimated 1.5 million
tonnes of anthracite sales expected for the year ending 30 June 2017. The remaining tonnes
are under offer and confirmation of these sales is expected.

Sales commitments have been received for 400 000 tonnes of an estimated 450 000 thousand
tonnes of energy coal sales expected for the year ending 30 June 2017.The balance of these
tonnes are under offer and negotiations are expected to be concluded for all remaining tonnes.

DROUGHT AND WATER SHORTAGE

The recent rains in KwaZulu-Natal has provided much needed relief and Somkhele’s water
storage dams are full and we have sufficient process water for the foreseeable future.

NORTH ATLANTIC IRON CORPORATION (NAIC) PROJECT UPDATE

During the quarter ended 30 September 2016, the Petmin board approved an additional $4
million investment into NAIC, subject to various conditions. At the time of this update, the
conditions have not been met and the additional investment has not been made.

Management has received a draft bankable feasibility study (BFS) which management is
reviewing. The BFS is expected to be updated and completed in the first quarter of calendar
2017.

CASH AND FACILITIES

At 30 September 2016, the group had R164 million cash on hand and available banking
facilities of R330 million.
This update and SENS announcement has not been reviewed or audited by the Company`s
auditors.

Enquiries:
Petmin
Bradley Doig +27 824 597 818
www.petmin.co.za

Johannesburg
9 December 2016

JSE Sponsor and Corporate Adviser
River Group
Andrew Lianos +27 834 408 365
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