Q3 Production Report and IMS

REGULATORY RELEASE

25 July 2013

Third Quarter 2013 Production Report

& Interim Management Statement

Lonmin Plc ("Lonmin or the Company"), the world's third largest Platinum producer, today announces its production results for the three and nine months to 30 June 2013 and interim management statement (unaudited).

Overview

Our operational performance in the third quarter continued to exceed our renewal plan despite momentum in the mining operations being hampered by an increase in Section 54 safety stoppages and intermittent labour disruptions that we saw start to emerge during the second quarter of 2013. As a consequence, 2.9 million tonnes were mined in total during Q3 2013, down 3.6% on the prior year period but representing an increase of 4.1 % on Q2 2013.

During the quarter, we produced total Platinum metal in concentrate of 186,456 ounces. Platinum sales, at 81,382 ounces, were impacted by the smelter capacity constraints following the incident at the Number Two furnace and the planned shutdown of the Number One furnace. For the nine months to 30 June 2013, we produced 552,515 ounces of Platinum metal in concentrate and achieved Platinum sales of 407,523 ounces.

On 1 July 2013 we announced that repairs to the Number Two furnace had been completed as planned and that both the Number One and Number Two furnaces had successful matte taps after their re-builds and are currently operating normally.

The cumulative results for the nine months to 30 June 2013, together with the successful re-start of the furnaces, give us confidence to maintain our Platinum metal in concentrate guidance in excess of 700,000 ounces and Platinum sales of 660,000 ounces.

The positive trend of our rolling average Lost Time Injury Frequency Rate (LTIFR) continued and LTIFR for the quarter was 3.55 incidents per million man hours compared to 3.66 for Q2 2013 and 4.47 for Q3 2012.

Mining Division

Our underground mining operations produced 2.8 million tonnes during the third quarter, a decrease of 3.6% from the prior year period. This was due to the production losses experienced as a result of Section 54 safety stoppages at our Karee and Westerns operations as well as intermittent labour disruptions across our portfolio of shafts in the period under review.

Production at Karee decreased by 85,000 tonnes down 6.7% on the prior year period as a Section 54 safety stoppage halted drilling and blasting operations at K3 following the fatal accident in the Merensky section on 26 April. The losses were also compounded by labour disruptions and slightly increased levels of absenteeism amongst the workforce. Production at Karee was also impacted by K4, which contributed 48,000 tonnes in the prior year period, being idle as it was placed on care and maintenance.

Similarly production at Westerns decreased by 66,000 tonnes or 8.8% on the prior year period. This was as a result of Section 54 safety stoppages, labour disruptions as well as the ore reserve and infrastructure challenges we highlighted in the last quarter negatively impacting momentum at Rowland. Newman continued with its planned depletion, although output was further negatively impacted by adverse ground conditions.

Production at Middelkraal continued to increase, up 91,000 tonnes or 18.5% on the prior year, mostly as a result of continued improvement at Saffy and ramp up in stope crew efficiency. This was in spite of challenges experienced with poor ground conditions and infrastructure constraints related to the remaining mechanised mining legacy issues. Hossy's production also showed some improvement despite the continued challenges faced with the lower than expected efficiency of the extra low profile suite of mining equipment. Production at Easterns decreased by 50,000 tonnes or 17.1% on the back of sporadic labour disruptions, increased levels of absenteeism and the planned depletion of East 1 shaft as it approaches the end of its life.

Production from our Merensky opencast operations decreased by 5.0% on the prior year period. Pandora attributable production increased by 8,000 tonnes or 14.2% on the prior year period.

In total, 234,000 tonnes of production was lost during the quarter, of which 112,000 tonnes was as a result of Section 54 safety stoppages and an additional 123,000 tonnes was due to labour stoppages. This compared to a total of 81,000 tonnes lost in the prior year period of which 40,000 was due to Section 54 safety stoppages.

Process Division

Total tonnes milled in the quarter fell by 161,000 tonnes or 5.1% to 3.0 million tonnes with underground and opencast, 5.2% and 2.7% respectively, lower than the prior year period.

Underground milled head grade decreased by 0.04 grammes per tonne to 4.60 grammes per tonne (5PGE+Au) when compared to 4.63 grammes per tonne in the prior year period. The overall milled head grade was 4.54 grammes per tonne, a decrease of 1% on the prior year period.

Underground and overall concentrator recoveries for the quarter decreased by 0.4 percentage points to 86.6% when compared to the prior year and 0.2 percentage points respectively versus Q2 2013. The stoppages at our Easterns concentrators EPL and EPC constrained the performance of our Easterns Tailings Treatment plants and were a key contributor in the decrease in recoveries in the period under review.

Platinum in concentrate from the Marikana operations for the quarter was 174,598 saleable ounces, a 9% decrease on the prior year period, whilst total Platinum in concentrate at 186,456 ounces was 8.1% lower than the prior year period. The decreases were a consequence of the adverse impact of ore shortages experienced as a result of labour disruptions. This was achieved whilst running with 7 out of 8 concentrators while Number One UG2 plant is being upgraded.

Total refined production for the third quarter was down 40.5% to 111,173 ounces of saleable Platinum when compared against the prior year period. Total Platinum Group Metals ("PGMs") produced in the third quarter were 222,715 ounces, a decrease of 36.7% on the prior year period. This was impacted on by the downtime on the furnaces.

Sales & Pricing

Platinum sales for the quarter were down 45.9% to 81,382 ounces and PGM sales were down 34.5% to 195,999 ounces. The lower sales in the period were due to the incident at the Number Two furnace and the initial planned shutdown of the Number One furnace that are now back to full operation. The US dollar basket price (excluding base metal credit) at $976 per ounce during the quarter was 5.9% less than the prior year period while the corresponding ZAR basket price was 8.8% higher than the prior quarter on the back of ZAR weakness.

Nine Month Production

Total tonnes mined during the first nine months of the 2013 financial year were 8.6 million tonnes, a decrease of 215,000 tonnes from 2012, due in part to mining momentum being tempered by the incidence of Section 54 safety stoppages during the period, as well as intermittent work stoppages due to labour disruptions. During the nine month period we mined 8.0 million tonnes from the Marikana underground operations, a decrease of 3.8% when compared against the same period in 2012. The impact of Section 54 stoppages and labour disruptions has been a loss of around 454,000 tonnes compared to 545,000 tonnes for the same period in 2012.

Total tonnes milled during the nine months of the 2013 financial year decreased by 4.9% to 8.7 million tonnes when compared to the prior year period. This reflects the anticipated ramp up experienced after the strike in October 2012 along with the low ore supplies seen at the start of the financial year. The total milled head grade improved to 4.56 grammes per tonne or 1.8% higher than the prior year period.

Underground and overall recoveries improved in the nine month period to 86.8% and 86.7% respectively when compared to 86.0% for both in the prior year period.

Platinum in concentrate decreased by 3.2% or 18,511 ounces to 552,515 saleable ounces of Platinum in the nine months under review, due to lower mined production and the Number One shaft concentrator being off line in the nine months under review.

Total refined production in the nine month period was 437,257 Platinum ounces and 842,997 PGM ounces, a decrease of 11.0% and 11.6% respectively compared to the prior year period.

Sales for the nine month period were 13.1% lower at 407,523 ounces of Platinum and 782,752 PGM ounces were down 13.8% on the comparable prior year period.

The US dollar basket price (excluding base metal credit) at $1,127 during the nine months of the 2013 financial year was 1% higher than the prior year period. The corresponding ZAR basket price excluding base metal revenue was 13.9% higher than in the prior year period at R10, 113 per ounce.

Outlook and Guidance

Although our operations continue to exceed our Renewal Plan we remain alert to the risks to production associated with safety stoppages and the uncertain labour relations landscape. We maintain our Platinum metals in concentrate guidance of in excess of 700,000 ounces and our sales guidance of 660,000 ounces. Unit cost guidance remains below 8% and capex guidance of US$175 million is maintained.

- ENDS -

ENQUIRIES

Investors / Analysts:

Lonmin

Media:

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

Notes:

1 Karee includes the shafts K3, K4 (currently on care and maintenance), 1B and 4B. Westerns comprises Rowland, Newman and ore purchases from W1. Middelkraal represents Hossy and Saffy. Easterns includes E1, E2 and E3.

2 Pandora attributable tonnes mined represents Lonmin's share (42.5%) of the total tonnes mined on the Pandora joint venture.

3 Tonnes milled excludes slag milling.

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

5 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).

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

7 Metals in concentrate include metal derived from slag processing and have been calculated at industry standard downstream processing losses to present produced saleable ounces.

8 Corresponds to contained base metals in concentrate.

9 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.

10 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.

11 As per note 10 but including revenue from base metals.

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

13 The 9 months commodity prices in respect of the prior year have been corrected as an error was identified in the prior year publication. In respect to the 3 months prior year period, Dollar basket price including by product revenue has been corrected. The impact of all the corrections is however minor.