Production report and voluntary trading statement for the six months ended 30 June 2018 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 VOLUNTARY TRADING STATEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2018 Production report Merafe's attributable ferrochrome production from the Glencore Merafe Chrome Venture (“Venture”) for the first six months of 2018 decreased by 2.3% compared to the previous period. Six months Six months ended ended 30 June 2018 30 June 2017 Attributable ferrochrome production (kt) 211 216 Voluntary Trading Statement Basic and headline earnings per share Shareholders are advised that Merafe is expecting to report basic earnings per share and headline earnings per share of between 16.0 cents and 18.0 cents for the six months ended 30 June 2018, compared to 19.4 cents for the previous comparative period, which amounts to a decrease of between 7.2% and 17.5%. The decrease in basic and headline earnings, period on period, is a function of lower net CIF ferrochrome prices, a stronger average Rand Dollar exchange rate, a higher depreciation charge and higher costs of goods sold, partially offset by higher ferrochrome sales volumes and higher foreign exchange gains. Update on cash and debt balances – Merafe Resources Limited Group 30-Jun-18 31-Dec-17 R'm R'm Net cash and cash equivalents* 331 672 Merafe's 20,5% of the Venture's debtors facility - (72) Net cash 331 600 Cash at Merafe level 256 464 Merafe's 20,5% of the Venture's cash 75 208 *Net cash and cash equivalents 331 672 The decrease in net cash and cash equivalents is mainly as a result of an increase in trade and other receivables and inventories. 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. The financial results for the six months ended 30 June 2018 are expected to be released on SENS on 6 August 2018. 17 July 2018 Sandton Sponsor: One Capital Date: 17/07/2018 12:40:00 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.