Q2 Production Report

REGULATORY RELEASE

11 May 2015

Second Quarter 2015 Production Report

Lonmin Plc ("Lonmin" or "the Company"), the world's third largest Platinum producer, today announces its production results for the three months to 31 March 2015 (unaudited).

Overview

We are pleased to report that the Company has been fatality free for eighteen months. Zero harm is indeed achievable and we remain vigilant. However, the rolling 12 month average Lost Time Injury Frequency Rate (LTIFR) for the 12 months to 31 March 2015 increased to 4.51 incidents per million man hours compared to 3.23 at 31 March 2014. To curb the increase in lost time injuries and high potential incidents an updated and focussed Safety Improvement Plan has been developed.

Lonmin has successfully maintained the strong operational momentum built up since the strike. A total of 2.8 million tonnes was mined in the quarter, 2.2 million tonnes higher than the prior year period which was impacted by strike action but broadly in-line with Q2 2013. Notably, saleable Platinum metal-in-concentrate was the highest Q2 production since 2007 with output of 181,814 Platinum ounces. This was 146,388 platinum ounces higher than the prior year period which was impacted by the strike and 0.7% higher than Q2 2013.

As expected, refined Platinum production of 122,480 ounces was impacted by the repairs to both the Number One and Two furnaces. This represented an increase in refined Platinum production of 61,512 ounces compared to the prior year period but a decrease of 68,149 ounces compared to Q2 2013. In process stocks were correspondingly around 200,000 PGM ounces higher than planned due to the smelter outages. The furnace repairs were completed during the quarter as scheduled and are now in full production and we expect to process the build-up in concentrate stock by the end of the financial year.

Sales of 119,051 Platinum ounces were in-line with refined production.

Mining Operations

The Marikana underground mining operations produced 2.6 million tonnes during the second quarter, an increase of 2.1 million tonnes on the prior year period and essentially flat on Q2 2013.

The ratio of UG2 reef ore mined to total mined reef was 75.8% in-line with expectations. This compares to 68.3% in the prior year period which was distorted by the impact of the strike.

Production at Easterns was 533,000 tonnes which was 427,000 tonnes higher than the prior year period and 181,000 tonnes, or 51.6% higher than Q2 2013. Saffy shaft recorded an increase of 176,000 tonnes, or 72.3% on Q2 2013 demonstrating the continued good progress that we have made with our promised ramp up.

Production at Westerns was 978,000 tonnes, an increase of 796,000 tonnes on the prior year period and 49,000 tonnes, or 4.8% lower than Q2 2013. Rowland, our second largest shaft, increased production by 23,000 tonnes or, 5.4% on Q2 2013 reflecting the positive impact of management actions and the theory of constraints projects launched at this shaft. Production from Newman shaft decreased by 48,000 tonnes, or 21.2% on Q2 2013 as a result of this shaft nearing the end of its life with declining production levels. Hossy shaft increased production by 15.3% on Q2 2013 in line with our turnaround plan as the mechanised operations are phased out in favour of hybrid mining. East 1 shaft, which is also reaching end of life saw a decrease in production of 62,000 tonnes, or 61.4% on Q2 2013. (East 1 has been reported under Westerns since Q4 2014 in-line with changes in management structure).

Production at Karee was 1,056,000 tonnes, an increase of 857,000 tonnes on the prior year period but 154,000 tonnes, or 12.8% lower than Q2 2013 driven by an increase in Section 54 safety stoppages at K3, our biggest shaft. 4B/1B produced 403,000 tonnes, an increase of 330,000 tonnes on the strike impacted prior year period. This was 6.8% lower than Q2 2013 due to an increase in Section 54 safety stoppages and some geological challenges. We had limited activity at K4 with 15,000 tonnes produced in line with our early preparations to set up this long life, low cost project for start-up.

Production at E3, Pandora (100%) of 145,000 tonnes increased by 116,000 tonnes over the prior year period and by 25,000 tonnes, or 21.2% on Q2 2013 as the mining footprint of this shaft was extended by another two levels.

Production from our depleting Merensky opencast operations of 52,000 tonnes was 25,000 tonnes, or 32.4% lower than the prior year period as this operation is reaching the end of its life.

A total of 279,000 tonnes of production were lost mainly due to safety stoppages. This was significantly lower than the prior year period where 2,515,000 tonnes were lost due to the protected five month wage strike. However, in comparison to Q2 2013 this shows an increase in tonnes lost of almost 100%, or 139,000 tonnes and we continue to focus on safety, training and rebuilding relationships.

Process Operations

Total tonnes milled in the quarter of 2.9 million tonnes were 2.4 million tonnes higher than the prior year period and 1.7% higher than Q2 2013. This performance is especially pleasing as it was achieved utilising six out of our seven Marikana concentrators as part of our measures to reduce costs.

Underground milled head grade at 4.59 grammes per tonne (5PGE+Au) was 10.7% lower than the prior year period of 5.14 grammes per tonnes but the prior year period was distorted by the effect of shutting down the plant due to the strike. Compared to Q2 2013 the underground head grade was down 0.6%. The overall milled head grade was 4.53 grammes per tonne, down 6.7% on the prior year period but essentially flat on Q2 2013.

Concentrator recoveries for the quarter were industry leading at 86.8%.

Significantly, total Platinum-in-concentrate for the quarter at 181,814 saleable ounces was 146,388 ounces higher than the prior year period and the highest Q2 since Q2 2007. Total PGMs in concentrate were 351,258 saleable ounces which was 284,347 ounces higher than the prior year period and also the highest Q2 since Q2 2007.

As announced on 10 March the repairs to the Number One furnace and the additional maintenance work that was brought forward were completed within schedule and all our furnaces are operating at normal production levels. We expect to process the build-up of concentrate by the end of Q4 2015. We intend to take down the Number Two furnace in Q4 for scheduled refractory brick replacement and some design upgrades on the roof and off-gas system.

Total refined Platinum production for the second quarter of 122,480 ounces was impacted by the smelter shutdowns. Whilst this was 61,512 ounces higher than the prior year period, this was down 68,149 ounces, or 35.7% on Q2 2013. Total PGMs produced in the second quarter were 236,328 ounces, an increase of 49.1% on the prior year period.

Sales & Pricing

Platinum sales for the quarter of 119,051 ounces were in-line with refined production. This was a decrease of 9,820 ounces, or 7.6% on the prior year period when saleable metal stocks built up in anticipation of the strike were sold. PGM sales of 240,322 ounces were down 61,336 ounces, or 20.3%. The build-up of concentrate stock ahead of the smelters is anticipated to unwind in H2 as we have the processing capacity to refine the accumulated material.

The weak price environment continued during the second quarter resulting in a US dollar basket price (including base metal revenue) of $936 per ounce. This is 7.3% lower than the prior year period while the corresponding Rand basket price of R11,007 per ounce was 1.5% higher than the prior year period impacted by the Rand weakness. The average Rand to Dollar exchange rate was 11.74 compared to 10.82 for the prior year period.

Lonmin also publishes today, in a separate announcement, its Interim Results for the half year ended 31 March 2015.

- ENDS -

ENQUIRIES

Investors / Analysts:

Lonmin

Tanya Chikanza (Head of Investor Relations) +44 20 7201 6007 / +27 11 218 8358

Media:

Cardew Group

Anthony Cardew / James Clark +44 207 930 0777

Sue Vey +27 60 523 7953

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 Igneous Complex in South Africa, where nearly 80% of known global PGM resources are located.

The Company creates value for shareholders through mining, refining and marketing PGMs and has a vertically integrated operational structure - from mine to market. 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

Notes:

1 East 1 shaft is now reported under Westerns in-line with changes in management structure. Prior periods have been adjusted accordingly.

2 Pandora underground tonnes mined represents 100% of the total tonnes mined on the Pandora joint venture of which 42.5% for October and November 2014 and 50% thereafter is attributable to Lonmin.

3 Limpopo underground tonnes mined represents low grade development tonnes mined whilst on care and maintenance.

4 Ounces mined have been calculated at achieved concentrator recoveries and with Lonmin standard downstream processing recoveries to present produced saleable ounces.

5 Tonnes milled excludes slag milling.

6 Lonmin purchases 100% of the ore produced by the Pandora joint venture for onward processing which is included in downstream operating statistics.

7 Head grade is the grammes per tonne (5PGE + Au) value contained in the tonnes milled and fed into the concentrator from the mines (excludes slag milled).

8 Recovery rate in the concentrators is the total content produced divided by the total content milled (excluding slag).

9 Metals-in-concentrate have been calculated at Lonmin standard downstream processing recoveries to present produced saleable ounces.

10 Corresponds to contained base metals-in-concentrate.

11 Nickel is produced and sold as nickel sulphate crystals or solution and the volumes shown correspond to contained metal. Copper is produced as refined product but typically at LME grade C. Chrome is produced in the form of chromite concentrate and volumes shown are in the form of chromite.

12 Basket price of PGMs is based on the revenue generated in Rand and Dollar from the actual PGMs (5PGE + Au) sold in the period based on the appropriate Rand / Dollar exchange rate applicable for each sales transaction.

13 As per note 13 but including revenue from base metals.

14 Exchange rates are calculated using the market average daily closing rate over the course of the period.