Director/PDMR Shareholding

19 December 2014

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

Pursuant to DTR 3.1.4 R, Lonmin Plc (the "Company") confirms that awards under the Company's Long Term Incentive Plan (the "LTIP Awards") were granted on 18 December 2014 to Ben Magara, Chief Executive Officer and Simon Scott, Chief Financial Officer.

These LTIP Awards form the second and final part of the Company's 2014 grant programme in relation to the executive directors, and are within the shareholder approved Remuneration Policy. Vesting is wholly subject to the satisfaction of a performance condition comprising two metrics, assessed on a multiplicative basis as described in the Company's Directors' Remuneration Policy in the 2014 Annual Report & Accounts:

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

(2) 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.

As explained in the Remuneration Committee Report in the 2014 Annual Report & Accounts (pages 86 and 92), the Company intends to introduce a new Long Term Incentive Plan ("New LTIP") and change the performance condition.

Subject to approval by shareholders of the Directors' Remuneration Policy at the Company's Annual General Meeting on 29 January 2015, the performance condition applicable to future awards under the New LTIP will comprise a return metric such as ROIC>WACC or ROE instead of the existing three year Balanced Scorecard average. The RTSR metric will remain unchanged. Each will have a 50% weighting and be assessed independently.

In the event such approval is granted, it is intended that the current performance condition applicable to the LTIP Awards will be substituted by the new performance condition including the return metric.

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