Q3 2010 Production Report and IMS

22 July 2010

Lonmin Plc

Third Quarter 2010 Production Report

& Interim Management Statement

Lonmin Plc, ("Lonmin" or "the company") today announces its production report and interim management statement for the three and nine months to 30 June 2010 (unaudited).

Overview

This quarter has seen us deliver increased output at our Marikana underground operations as we continue to see operational improvements. Year to date our underground tonnage is up on the comparable prior year period whilst metal in concentrate is at the same level as last year as the increased ounces from our underground operations have offset the impact of the operations closed last year.

Q3 2010 Production

Our underground mining operations at Marikana produced 2.6 million tonnes during the third quarter of the 2010 financial year, an increase of 10.2% from the third quarter of the 2009 financial year. This was mainly due to an increase in production during the quarter from Hossy and Saffy which continued to ramp up and increased production by 40.9%, to 0.5 million tonnes, over the prior year period. Sequentially output from those shafts increased by 11.7% quarter on quarter. The increase in the conventional mining tonnage was some 0.1 million tonnes or 4.8%. The impact of Section 54 shut downs was around 109,000 tonnes in lost production during the quarter mainly at our K3 shaft. This compares to a loss in production during the same period last year of around 160,000 tonnes.

Pandora underground production showed a quarter on quarter increase of 10.3% and increased by 30.9% from the prior year period, whilst production at the Merensky opencast pit at Marikana has commenced and is beginning to ramp up.

Total tonnes milled in the quarter were flat year on year, at 2.8 million tonnes but showed an increase of 9.8% from 2.5 million tonnes milled in the second quarter of the 2010 financial year. Platinum in concentrate from the Marikana operations was 163,311 saleable ounces during the third quarter of 2010, an increase of 16.3% from the prior year period and an increase of 5.6% quarter on quarter. This was due to achieving another excellent quarter of concentrator recoveries. In total, the concentrators produced 169,614 saleable ounces of Platinum in concentrate for the quarter, a 10.9 % increase from the third quarter of the prior year.

Underground and overall concentrator recoveries increased to 85.1% and 85.0% from 80.5% and 79.0% respectively year on year. Sequentially recoveries have been very consistent at 84% to 85% with each quarter being much higher than the equivalent period last year. This improvement in our performance on a quarter by quarter basis is pleasing and demonstrates the success of the rigorous approach we have taken on batch milling the right ore through the appropriate concentrators, recognition of the importance of regular plant maintenance as well as the continued benefits from our concentrator optimisation programme.

Our underground milled head grade increased marginally to 4.6 grammes per tonne (5PGE + Au) from 4.57 grammes per tonne in the prior year period whilst overall head grade increased by 4.1% year on year to 4.55 grammes per tonne (5PGE + Au). Underground milled head grade declined by 3.0% from 4.74 grammes per tonne quarter on quarter due to an increase in the percentage of Merensky ore milled and some lower grade development ore arising from our UG2 operations.

As previously announced, the Number one furnace suffered a setback in May 2010 during its recommissioning following a matte run out on 30 March 2010. Following its repair, the Number one furnace was recommissioned and has been performing steadily for over one month now. The Pyromet furnaces, which have around 40% of the Number one furnace capacity, have been operating since 30 March 2010.

The Number one furnace incident has impacted refined metal production and metal sales in the third quarter of the 2010 financial year. Consequently total refined production in the third quarter of the 2010 financial year was 91,952 ounces of Platinum and 194,234 ounces of PGMs, a decrease of 46.7% and 39.5% respectively from the third quarter of the 2009 financial year.

Metal sales during the third quarter of the 2010 financial year also decreased significantly from the prior year to 91,952 ounces of Platinum and 192,507 ounces of PGMs.

Nine Month Production

Total tonnes mined during the first nine months of the 2010 financial year were 7.9 million tonnes, a decrease of 0.2 million tonnes from 2009, reflecting the closure in 2009 of the opencast and Limpopo operations. During the period we mined 7.7 million tonnes from the Marikana underground operations, an increase of 1.6% in the nine month period of the 2010 financial year, when compared against the same period in 2009. The impact of Section 54s shut downs on the nine month period in 2010 financial year has been a loss of around 258,000 tonnes. This compares to around 316,000 tonnes for the same period last year.

Total tonnes milled during the first nine months of the 2010 financial year declined by 8.2% to 7.9 million tonnes when compared to the same period in the prior year due to the impact of the closure of Limpopo and opencast during 2009. Marikana underground tonnes milled were marginally up on last year. The concentrators produced a total of 491,478 saleable ounces of Platinum in concentrate in the nine months, a marginal year on year increase. Overall concentrator recoveries improved significantly during the first nine months of the 2010 financial year, to 84.6% from 79.7% in the same period in 2009.

During the nine month period to 30 June 2010 underground head grade improved by 2.7% to 4.69 grammes per tonne (5PGE + Au) as a result of cleaner mining and less development ore particularly at Hossy and Saffy.

Total refined production for the first nine months of the 2010 financial year was 383,873 ounces of Platinum and 781,385 ounces of total PGMs, a decrease of 21.8% and 15.7% respectively when compared to the same period in 2009. This reflects the impact of the Number 1 furnace incidents.

Final metal sales for the nine months were 383,874 ounces of Platinum and 786,036 ounces of total PGMs, a decrease of 21.7% and 13.6% respectively.

Overall

During the quarter Shanduka purchased 50.03% of Incwala, our Black Economic Empowerment partner and Lonmin provided a loan to Shanduka of to help facilitate this transaction. The resultant cash outflow of approximately £150 million was fully funded by a placing undertaken on 10 May 2010.

The quarter by quarter improvement in underground mining tonnes when compared to last year gives us confidence that, absent material safety stoppages, we will have a strong quarter four, well up on last year. This combined with good concentrator recoveries should lead to a material increase in underground metal in concentrate output when compared to last year, indicating the turnaround in Lonmin's mining division is well underway. In addition our opencast operation will continue to ramp up and in total we fully expect metal in concentrate to exceed last years level.

As stated in our announcement of 24 May we have decided to toll refine and sell some part processed Platinum ounces due to the need to rundown concentrate stockpiles given that the smelter will be down in November/December for a redesign and rebuild. On this basis, we continue to expect to meet our sales target of 700,000 Platinum ounces. The cost of the toll refining and selling in process inventory is expected to be around $17.5 million. The incremental cost incurred does not form part of our cost guidance for the year.

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) 21 487 9000

Dani Cohen / Ravin Maharaj

Notes: