Employee Recognition Agreement Signed with AMCU

REGULATORY RELEASE

14 August 2013

Employee Recognition Agreement Signed with AMCU

Lonmin Plc ("the Company") announces today that it has signed an employee recognition agreement with the Association of Mineworkers and Construction Union (AMCU).

The agreement formally recognises AMCU as the majority union at Lonmin, and acknowledges the rights and obligations which accompany that status in South African labour law.

Lonmin Chief Executive Officer Ben Magara said: "I'm delighted to announce the signing of our recognition agreement; it is excellent news for Lonmin, for our employees and for all our stakeholders. It has not been easy, and I would like to recognise the efforts of both our teams, AMCU and Lonmin."

Mr Magara, who has been personally involved in the process since formally joining Lonmin on 1 July 2013, added: "It has been a constructive and robust engagement in search of a win-win solution. This is key to achieving peace, stability and prosperity for all, which will enhance our recent operational performance."

"There is much still to do, but this is a huge step towards stability and the prosperity of all our stakeholders."

Mr Joseph Mathunjwa, President of AMCU, said: "We have different mandates, but we acknowledge that without co-operation we are all losers and that, as leaders, we must find a way to ensure we can move forward together in peace and stability."

The signing of the agreement comes in a significant week for Lonmin, and for South Africa, as the nation pays its respects to those who have died in violence at Marikana over the past year.

A number of commemoration events have been held since the start of the week at Lonmin's operations and there will be reduced production on Friday 16 August, although all shafts will remain operational.

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Notes to editors

Lonmin, which is listed on both the London Stock Exchange and the Johannesburg Stock Exchange, is one of the world's largest primary producers of PGMs. These metals are essential for many industrial applications, especially catalytic converters for internal combustion engine emissions, as well as their widespread use in jewellery.

Lonmin's operations are situated in the Bushveld Complex in South Africa, where nearly 80% of known global PGM resources are found.

The Company creates value for shareholders through mining, refining and marketing PGMs and has a vertically integrated operational structure - from mine to market. Lonmin's mining operations extract ore from which the Process Division produces refined PGMs for delivery to customers. Underpinning the operations is the Shared Services function which provides high quality levels of support and infrastructure across the operations.

For further information please visit our website: http://www.lonmin.com