Director/PDMR Shareholding

10 July 2013

Notification of Transactions of Directors and Persons Discharging Managerial Responsibilities ("PDMRs")

Pursuant to DTR 3.1.4 R, Lonmin Plc (the "Company") confirms that the following awards were today granted to Ben Magara, who joined the Board as Chief Executive Officer on 1 July 2013.

·; A nil cost award under the Company's Long Term Incentive Plan (an "LTIP Award") for 130,302 shares with normal vesting on the third anniversary of the date of grant. The LTIP Award is wholly subject to the satisfaction of a performance condition comprising:

Ø the measurement of sustained and broad-based operational performance using the Company's Balanced Scorecard averaged over three years; and

Ø the Company's Total Shareholder Return over a three year period relative to the median of a group comprising the Company's five direct peers producing Platinum Group Metals.

The operational targets support the delivery of the company's medium and long-term term targets. The methodology of the performance condition is explained more fully in the remuneration report in the 2012 annual report.

·; A Retention Award for 130,302 shares which will vest, subject to continued service, in three equal installments on 31 May 2014, 31 May 2015 and 31 May 2016. This award utilises the provisions of LR 9.4.2R.

Both the LTIP Award and the Retention Award have been granted to Mr Magara to compensate him for the loss of various incentives which resulted from his departure from his previous employer, Anglo American Platinum Limited. Approximately half of these incentives were not subject to post grant performance conditions and therefore, in the interests of equity, the Board elected to mirror this arrangement in the Retention Award.

We believe that by using Lonmin shares, rather than cash, to deliver this buyout of Mr Magara's Anglo lock-ins we significantly boost his alignment with shareholders' interests. He has also agreed to amass a personal shareholding with a value of 3x his salary within 3 years of joining, rather than the 5 years our policy currently targets, to further boost that alignment.

The value of these incentives was assessed by independent remuneration consultants, appointed by the Company's Remuneration Committee.