Production report and trading statement Merafe Resources Limited (Incorporated in the Republic of South Africa) (Registration number: 1987/003452/06) JSE share code: MRF ISIN: ZAE000060000 (“Merafe” or the “Company”) PRODUCTION REPORT AND TRADING STATEMENT 1. Production Report Merafe’s attributable ferrochrome production from the Glencore Merafe Chrome Venture (“Venture Production”) for the quarter ended 31 December 2018 increased marginally by 2.6% compared to the previous comparative period. The Venture Production for the year ended 31 December 2018 increased by 3.2% compared to the previous comparative period. Full year production represents 85% of installed capacity. 2018 2017 2018 2017 Fourth Fourth Full Full quarter quarter year year Attributable ferrochrome production (kt) 112 109 407 395 2. 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 basic earnings per share (“EPS”) and headline earnings per share (“HEPS”) of between 24.7 cents and 30.1 cents for the year ended 31 December 2018, compared to EPS and HEPS of 36.4 cents for the previous comparative period, which is a decrease of between 17% and 32%. The expected significant decrease in EPS is primarily driven by lower ferrochrome prices as well as lower volumes of chrome ore and ferrochrome sold. These were partially offset by a stronger average Rand compared to US Dollar exchange rate. Expected cash and debt balances – Merafe Resources Limited Group 31 Dec 2018 31 Dec 2017 R'm R'm Cash and cash equivalents balance 249 672 Merafe's 20.5% of the Venture's debtor facility - (72) Net cash 249 600 The decrease in cash and cash equivalents at year end is mainly due to an increase in finished goods inventory. 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 year ended 31 December 2018 are expected to be released on SENS on or about 11 March 2019. Sandton 31 January 2019 Sponsor One Capital Date: 31/01/2019 09:00:00 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.