Completion of US$60 million convertible bond

Not for release in the United States, Canada or Japan

8 October 2010

LONRHO PLC

("Lonrho" or the "Company")

Successful completion of a US$60 million convertible bonds offering which opened this morning

Lonrho Plc announces that it has successfully completed the offering (the "Offering"), announced earlier today, of US$60 million Guaranteed Convertible Bonds due 2015 by the Company's wholly-owned direct subsidiary, LAH Jersey Limited (the "Bonds"), subject to shareholder approval. The Bonds are convertible into redeemable preference shares of LAH Jersey Limited which are guaranteed by, and will be exchangeable immediately upon issuance for, ordinary shares of 1p each in the Company ("Share" or "Shares"). Lonrho has the option to further place up to US$10 million of additional Bonds, for which there is significant existing demand.

The Bonds will be issued at 100 per cent of their principal amount and will bear interest at the rate of 7 per cent. per annum, payable semi-annually in arrears. The initial conversion price is £0.1559 per Share, representing a premium of 25 per cent. to the volume weighted average price of the Company's Shares on the AIM market of the London Stock Exchange between 5 October and 7 October 2010.

If all of the Bonds were to be converted and immediately exchanged into new Shares in the Company at the aforementioned conversion price, 282,999,798 new Shares would be issued. Shares in the Company issued as a result of conversion of the Bonds will rank pari passu with existing Shares in issue. Application will be made for any Shares issued on conversion of the Bonds to be admitted to trading on AIM.

Settlement and delivery of the Bonds is expected to take place no later than 15th October 2010. The conversion rights attached the Bonds are subject to shareholder approval at a General Meeting of the Company, which is expected to be held on Friday 29th October 2010 and is further subject to the consent of the Jersey Financial Services Commission pursuant to the Control of Borrowing (Jersey) Order 1958, authorising LAH Jersey Limited to issue the Bonds and to raise money in Jersey.

The net proceeds of the Offering will be used to allow the Company and its subsidiaries to repay certain existing indebtedness, to fund general working capital and to accelerate growth in its operations.

Under the terms of the Offering, there will be a 90-day lock-up period on issuances or sales of Shares or equity-linked securities by the Company, subject to certain customary exceptions.

Application has been made to list the Bonds on the official list of the Luxembourg Stock Exchange and to be admitted to trading on the Euro MTF Market of the Luxembourg Stock Exchange.

The Bonds were placed through an accelerated bookbuild placement with institutional investors (outside the United States) conducted by ISM Capital LLP, acting as sole Bookrunner and Manager in connection with the Offering. Panmure Gordon (UK) Limited acted as Co-Manager.

David Lenigas, Executive Chairman of Lonrho commented:

"We are delighted that the demand for a convertible bond in Lonrho has been so strong. It is gratifying that so many of our existing institutional shareholders have taken part in the offer. Likewise, I believe it is positive for the Company that some very large new institutional investors that were not previously on the Lonrho register have subscribed, demonstrating the growing interest in investing in the emerging African market."

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