Q1 Production Report & IMS

Lonmin Plc

Q1 2011 Production Report

& Interim Management Statement

Lonmin Plc ("Lonmin" or the "Company") today announces its production report for the quarter to 31 December 2010 (unaudited) and Interim Management Statement.

Overview

Our operational performance in the first quarter of 2011 demonstrates continued progress in mining as both tonnes mined and milled increased over the prior year period, together with further progress in production of metals in concentrate due to continuing improvements in the recovery rate. Although our refined production was affected by the scheduled rebuild of the Number One furnace, it was somewhat mitigated by toll refining.

Mining

Total tonnes mined in the first quarter of the 2011 financial year from our Marikana underground operations were 2.8 million, up 200,000 tonnes and representing a 7.8% increase from the prior year period. This increase can be attributed to a number of factors. Firstly, the Karee, Middelkraal and Easterns' mining units all increased their production from the prior year period. Karee's operations increased production by 196,000 tonnes, with a significant contribution from K3; Middelkraal's production also increased by 59,000 tonnes as production at Saffy continued to ramp up, whilst Easterns increased production by 57,000 tonnes, with a notable contribution from the E2 shaft. These increases were offset by a 113,000 tonnes fall in production at Westerns during the quarter due to the planned decline at Newman. The decrease in Section 54 safety shutdowns also contributed to the higher production in the quarter, when compared to the prior year period. Newman was the only shaft to have a Section 54 shutdown and lost 21,000 tonnes in production during the quarter, compared to the prior year losses by all operations of 84,000 tonnes.

Production at our opencast operations continued to ramp up in the quarter to 193,000 tonnes, whilst the production at Pandora increased marginally to 39,000 tonnes. Overall, total tonnes mined were 15% up at 3.0 million tonnes against the prior year period.

Concentrators

Total tonnes milled in the quarter increased over the prior year period by 17.4%, or 452,000 tonnes to 3.0 million tonnes, with underground tonnes milled increasing by 11% to 2.8 million tonnes when compared to the prior year period and an increase of 172,000 tonnes being milled from opencast, compared to 61,000 tonnes in the prior year period.

Underground milled head grade was 4.55 grammes per tonne (5PGE+Au) for the quarter, down 0.19 grammes per tonne from 4.74 grammes in the prior year period and down 0.08 grammes per tonne from 4.63 grammes in quarter four of our prior financial year respectively. This was due to poor ground conditions being encountered at K3. The opencast milled head grade was at 2.24 grammes per tonne, 14.3% higher than the prior year period as the opencast milled in the prior year period was from lower grade stock pile material.

Underground concentrator recoveries continued the positive trend and increased from 84.5% to 85.1% when compared to the prior year period, whilst the opencast recovery rate increased from 42.3% to 80.7% mainly as a result of the improved grade of the opencast material milled in the current period.

Platinum in concentrate from the Marikana operations was 175,769 saleable ounces, a 12.7% increase over the prior year period. In total the concentrators produced 180,433 saleable ounces of Platinum in the quarter, an 11.5% increase from prior year period.

Total Lonmin refined production of 81,982 ounces of Platinum was 26% less than the prior year period as a result of the scheduled rebuild and modification of the Number One furnace during the quarter which resulted in an increase in Platinum and PGM concentrate stock. This was partially offset by 9,700 Platinum ounces returned from toll refining such that total refined production was 91,682 ounces, 17.2% less than the prior year period. Total PGM production was at 240,366 ounces, down only 1.1% when compared to prior year. This is as a result of the Other Platinum Metals (OPMs) returned from toll refining in the quarter, for which the associated Platinum ounces were returned in September 2010.

Sales & Pricing

Platinum sales at 66,426 ounces were 39.1% less than the prior year period, mainly because of the Number One furnace rebuild and also as a result of bad weather affecting customer deliveries over the Christmas period in the northern hemisphere. Total PGM sales decreased by 23.1% to 184,317 ounces.

The US dollar basket price improved considerably during the first quarter of the 2011 financial year with the basket price at $1,175 per ounce being 15.6% higher than the prior year period. The increase in our South African Rand PGM basket price was more moderate, at 6.5% due to a much stronger South African Rand against the US dollar during the quarter when compared to the prior year period.

Number One Furnace

The rebuild and modification of the Number One furnace, was successfully completed on schedule and the furnace was recommissioned in mid December 2010. The three pyromet furnaces have operated throughout the period.

Wage Settlements

As announced on 13 January 2011, we reached agreement with the National Union of Mineworkers (NUM) in terms of which employees will receive an 8% wage increase backdated to 1 October 2010, as well as a once off payment of R850. We have now concluded all of our wage negotiations.

Outlook

Our production performance during the first quarter of 2011 represents a solid start to the year and supports our sales guidance of 750,000 ounces of Platinum. We also maintain our capital expenditure guidance of around $380 million and expect Rand unit costs to increase by less than the 8% wage settlement agreed with the NUM.

ENQUIRIES:

Investors / Analysts:

Tanya Chikanza +44 (0) 207 201 6007

Head of Investor Relations

Media:

Cardew Group +44 (0) 207 930 0777

Rupert Pittman/Jamie Milton

Financial Dynamics +27 (0) 11 214 2000

Dani Cohen / Ravin Maharaj