Production report and trading statement for the year ended 31 December 2016 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 2016 Production report Merafe’s attributable ferrochrome production from the Glencore Merafe Chrome Venture for the year ended 31 December 2016 increased by 4% compared to the prior year. Production volumes were managed across the quarters of the year through timing of furnace refurbishments to optimise stock levels. Year Year ended 31 ended 31 Quarter 4 Quarter 4 December December 2016 2015 2016 2015 Attributable ferrochrome production (kt) 107 101 393 377 Trading statement Basic and headline earnings per share 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 will differ by at least 20% from those of the prior comparative period. Shareholders are therefore advised that Merafe is expecting to report the following for the year ended 31 December 2016: • Basic earnings per share of between 20.0 cents and 23.5 cents, compared to 13.7 cents for the prior year, which is an increase of between 46% and 72%; • Headline earnings per share of between 20.0 cents and 23.5 cents compared to 13.9 cents for the prior year, which is an increase of between 44% and 69%. Expected cash and debt balances – Merafe Resources Limited Group 31-Dec 31-Dec 2016 2015 R'm R'm Net cash balance 263 310 Merafe's 20,5% of the Venture's debtors facility (309) (411) ABSA and Standard Bank debt* (363) (559) Total (409) (660) *On 3 January 2017, R137m of the R363m ABSA and Standard Bank debt was repaid resulting in a balance of R226m. 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 2016 are expected to be released on SENS on 7 March 2017. 26 January 2017 Sandton Sponsor: Merrill Lynch South Africa Proprietary Limited Date: 26/01/2017 09:05:00 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.