Production report and trading statement for the six months ended 30 June 2019 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 FOR THE SIX MONTHS ENDED 30 JUNE 2019 1. Production Report Merafe’s attributable ferrochrome production from the Glencore Merafe Chrome Venture for the six months ended 30 June 2019 decreased marginally by 2.3% compared to the six months ended 30 June 2018 (“Previous Corresponding Period”). Six months ended Six months ended 30 June 2019 30 June 2018 Attributable ferrochrome production (kt) 206 211 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 5.92 cents and 7.24 cents for the six months ended 30 June 2019, compared to 16.9 cents for the Previous Corresponding Period, which is a decrease of between 57% and 65%. The significant decrease in EPS and HEPS is primarily driven by substantially lower chrome ore and ferrochrome prices which were partially offset by: - a weaker average Rand:US$ exchange rate; and - higher chrome ore and ferrochrome sales volumes. Expected cash and debt balances – Merafe Resources Limited Group 30 June 2019 31 December 2018 Cash and cash equivalents balance 205 281 Net cash/(debt) 205 281 Shareholders are advised that the financial information contained in this announcement, has not been reviewed or reported on by Merafe`s external auditors. The financial results for the six months ended 30 June 2019 are expected to be released on SENS on or about 5 August 2019. Sandton 19 July 2019 Sponsor One Capital Date: 19/07/2019 09:01:00 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.