2007 - Northam

: 07 Nov 2007

Joint announcement

Shareholders of Anglo Platinum, Mvela Resources and Northam are referred to the joint and individual announcements published by the parties on 4 September 2007.

Northam Platinum Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1977/003282/06)
(ISIN: ZAE000030912)
(Share Code: NHM)
(“Northam”)

Mvelaphanda Resources Limited
Mvelaphanda Resources Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1980/001395/06)
(ISIN: ZAE000050266)
(Share Code: MVL)
(“Mvela Resources”)

Anglo Platinum
(Incorporated in the Republic of South Africa)
(Registration number: 1946/022452/06)
(ISIN: ZAE000013181)
(Share Code: AMS)
(“Anglo Platinum”)

Shareholders of Anglo Platinum, Mvela Resources and Northam (“the parties”) are referred to the joint and individual announcements published by the parties on 4 September 2007 (“the announcements”) regarding:

the proposed acquisition by Mvela Resources of Anglo Platinum’s entire interest of 53 million shares (being 22.4% of the issued share capital) in Northam and Anglo Platinum’s stake in the Booysendal Platinum Project (“Booysendal”);
the proposed acquisition by Northam of 100% of Booysendal; and
a specific issue of ordinary shares by Mvela Resources to Afripalm Resources,

collectively “the proposed transactions”.

The parties advised at the time of the announcements that they expected the proposed transactions to be concluded by the end of the calendar year 2007.

Due to the complexity and size of the proposed transactions the parties advise that it is unlikely that the confirmatory due diligence and detailed transaction agreements will be completed in time to convene the requisite Mvela Resources and Northam shareholders meetings before the December 2007 holiday period. Accordingly, the parties now advise that the circulars to Mvela Resources and Northam shareholders are likely to be posted to shareholders during January 2008.

Johannesburg
7 November 2007
723 -/07/mb

Distributed for Northam

In South Africa
Russell & Associates
Tel +27 11 880 3924

In the United Kingdom
St James’s Corporate Services
Tel +44 (0) 20 7499 3916

: 30 Oct 2007

Safety award for Northam

Northam Platinum’s surface operations have recently been awarded certificates of excellence for safety at the company’s laboratory, smelter and base metals removal plant.

Northam Platinum’s surface operations have recently been awarded certificates of excellence for safety at the company’s laboratory, smelter and base metals removal plant. The award, from the Mine Metallurgical Manager’s Association recognizes the absence of any injuries for the period July 2006 to June 2007 in metallurgical operations across the industry.

In addition, the base metals removal plant also received the award for the best safety record in the refineries category, while the smelter got the top award for smelters and acid plants, this time for the third consecutive year.

Commenting on this excellent achievement, plant manager Jean van Rensburg said “Although we are really proud of this recognition, it is important that we keep reminding ourselves that we should not be chasing records, and that working safely is a discipline which should be integrated into our daily routines. The records should purely be the consequence of working safely.”

: 24 Oct 2007

Mining operations resumed

The management of Northam Platinum advises that mining operations were resumed at the company’s Northam mine in the Limpopo Province today.

Johannesburg, 24 October 2007. The management of Northam Platinum advises that mining operations were resumed at the company’s Northam mine in the Limpopo Province today, Wednesday 24 October 2007. This follows the lifting of the order imposed by the Department of Minerals and Energy under Section 54 of the Mine Health and Safety Act in terms of which mining operations at the mine were suspended on 16 October 2007.

Northam estimates production losses of some 6 500 ounces (3PGMs + Au).

Distributed by Russell & Associates
Johannesburg
Tel: +27 11 880 3924

St James’s Corporate Services
London
Tel: +44 (0) 20 7499 3916

: 17 Oct 2007

Company announcement

The management of Northam advises that the Inspector of Mines on Tuesday, 16 October 2007 issued the company’s Northam mine with an order under Section 54 of the Mine Health and Safety Act to temporarily stop underground operations.

This follows the death of an employee, Mr Taneso Matumane early yesterday morning in a fall of ground accident in a stope some 1 600 metres below surface.

Management conveys its heartfelt condolences to his family and friends.

The Northam mine is situated in the Limpopo Province near the town of Thabazimbi.

: 18 Sep 2007

Resignation of director

Northam advises that Mr Robin Mills has tendered his resignation as a non-executive director of the company with effect from 16 September 2007.

Johannesburg
18 September 2007

Sponsor
Barnard Jacobs Mellet Corporate Finance (Pty) Limited

: 11 Sep 2007

Appointment of director: Mr PC Pienaar

Northam is pleased to announce that Mr Petrus Cornelius (Pine) Pienaar has been appointed a non-executive director of the company with effect from 10 September 2007.

Northam is pleased to announce that Mr Petrus Cornelius (Pine) Pienaar has been appointed a non-executive director of the company with effect from 10 September 2007. His appointment follows the recent resignation of Mr M J Willcox from the Northam board.

Mr Pienaar, who has been alternate to Mr B R van Rooyen on the board of the company for the past two and a half years, is the Chief Executive Officer of Mvelaphanda Resources Limited which has a 21,8% shareholding in Northam.

: 04 Sep 2007

Northam and Mvela Resources announce the terms of the Booysendal transaction

Mvela Resources and Northam announced today that agreement has been reached on the acquisition by Northam of the entire Booysendal platinum project (Booysendal) on the Eastern Limb of South Africa’s Bushveld Complex, including full control of the resultant metals from mine to market.

Transaction creates the only fully independent, HDSA owned and controlled, integrated PGM producer, with substantial life

Mvelaphanda Resources Limited (Mvela Resources) and Northam Platinum Limited (Northam) announced today that agreement has been reached on the acquisition by Northam of the entire Booysendal platinum project (Booysendal) on the Eastern Limb of South Africa’s Bushveld Complex, including full control of the resultant metals from mine to market.

The agreement follows a broader Black Economic Empowerment (BEE) transaction between Mvela Resources, Afripalm Resources, and Anglo Platinum, which resulted in:

Mvela Resources acquiring Anglo Platinum’s 50% interest in Booysendal
Mvela Resources acquiring Anglo Platinum’s entire 53.1 million shares in Northam (22.4% interest)

In terms of the agreement, Northam will acquire 100% of Booysendal, and secure full operational control of the project for a consideration of 125 million new ordinary shares to be issued to Mvela Resources. This equates to a market value of R6.25 billion.

Explaining the strategic rationale of the transaction for Northam, CEO Glyn Lewis said that the acquisition of this premier resource on the eastern Bushveld is a company transforming transaction for Northam.

“The opportunity of acquiring Booysendal, with its resource of some 112 Moz (3PGE+Au) and an extended life of mine, is one that Northam can ill afford to miss. The addition of this large, low-cost project to our asset base provides Northam with a much-needed and certain avenue for growth, improving the quality of its resource base, and with the potential to double its current output from some 325,000 oz to approximately 650,000 oz (3PGE+Au) in the near term. And, at a cost of around US$7.84 per PGM ounce (R50/share and R7.12/US$), the acquisition price is lower than most recent acquisitions in the platinum sector and certainly for comparable resources of this size and quality.”

On implementation of the transaction, Mvela Resources will increase its stake in Northam to 63.4%, bringing impeccable BEE credentials to Northam. Furthermore, this strategic alliance with Mvela Resources brings further growth and value-enhancing opportunities to Northam, whose prospects are currently constrained.

Commenting on the value of the transaction for Mvela Resources, CEO Pine Pienaar said, “With the successful conclusion of this transaction, Mvela Resources has achieved a significant strategic milestone by gaining control of a robust operating company. Northam currently operates one of the most technically challenging PGM mines, and has for many years demonstrated its mining and metallurgical expertise. This expertise and capacity, along with its access to world-class refining technology, provides an as yet unrealised competitive advantage and sustainable platform for growth.”

Booysendal is a well explored area on the Eastern Limb of the Bushveld Complex, with measured, indicated and inferred resources on the Merensky and UG2 reefs of 33 million oz (3PGE+Au) and 79 million oz (3PGE+Au) respectively. A technical committee has already completed a significant amount of work on the project, and a pre-feasibility study is likely to be completed by the end of the first quarter of the 2008 calendar year. Lewis describes the underlying reef as largely conformable. Initial technical studies suggest potential mine construction and development could start by the end of calendar 2009, after the completion of a bankable feasibility study, with first production beginning in 2010, ramping up to steady-state levels of some 240ktpm in 2013.

Total capex for the project is estimated at R4.8bn, to be funded from a combination of company cash retentions, and debt and/or equity financing, depending on market conditions prevailing at the time.

Implementation of the transaction will be subject to a number of conditions precedent, including Northam shareholders agreeing to waive their right to receive a mandatory offer from Mvela Resources (so as not to dilute its BEE shareholding), and normal regulatory approvals required for a transaction of this nature. It is anticipated that these approvals will be obtained by the end of calendar 2007.

Mark Willcox, CEO of Mvelaphanda Holdings said; “This is a further step in the strategic alignment of Mvela Resources and Northam. The initial investment in Northam in 2000 created the platform for additional value accretive transactions, which have resulted in the company growing its market capitalisation from R200 million in 2000 to over R11 billion today. Booysendal is a world-class growth asset in the platinum sector, and the development of this asset should create significant value for shareholders of Northam and Mvela Resources, including Mvelaphanda Holdings”.

Lazarus Zim, Chairman of both Mvela Resources and Northam, concluded; “This is a landmark transaction in the platinum sector, resulting in the creation of the fourth largest, independent and black-controlled South African PGM producer, controlling the precious metals pipeline from mine to market. The Mvela Resources/Northam group has got the right mix of cash flow from current operations and future organic growth opportunities to ensure its position as a meaningful player in the platinum industry for many years to come”.

Contacts:

For Mvela Resources

James Wellsted
+27 11 325 5323
+27 83 453 4014

For Northam Platinum

Marion Brower
+27 11 880 3924
+27 82 895 0698

: 13 Aug 2007

Resignation as Director: Mr M J Willcox

Northam advises that Mr Mark Willcox has tendered his resignation as a non–executive director of the company with effect from 13 August 2007.

Sponsor
Barnard Jacobs Mellet Corporate Finance (Pty) Limited

: 03 Aug 2007

Northam and NUM reach agreement

Northam Platinum Limited and the National Union of Mineworkers (NUM) confirm that the parties have reached a final agreement on wages and various other issues in annual wage negotiations for the period 1 July 2007 to 30 June 2008.

Northam Platinum Limited and the National Union of Mineworkers (NUM) confirm that the parties have reached a final agreement on wages and various other issues in annual wage negotiations for the period 1 July 2007 to 30 June 2008. In terms of the agreement, all employees in the NUM bargaining unit (5,935 employees) will receive a 10% across-the-board wage increase. The agreement will take effect from 1 July 2007.

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: 02 Aug 2007

Another record year for Northam — Results reflect sustained strong price environment

Northam Platinum’s results for the year ended 30 June 2007 were posted today, Thursday 2 August 2007.

Results at a glance:

Sales revenues up by 57% at R3.7bn
Year on year rand basket price received increased by 57% to R297 292/kg
88% rise in attributable earnings to R1.3bn level
86% increase in headline earning to 560 cps
Cash reserves of R1.2bn, 45% higher year on year
Total dividend for the year at 525 cps (F2006: 280 cps)
Anticipated difficult geological and mining conditions persist, with adverse effect on head grades and output
Excellent progress in building up to local refining targets with a growing percentage of Northam’s platinum and palladium now being refined at Heraeus SA in Port Elizabeth

Financial results for the year were boosted by sustained strong market fundamentals, with continued record price levels for Northam’s basket of metals, contributing to the peak sales revenues of R3.7bn. The basket price, averaging US$1 288/oz, reflected the excellent dollar price performance particularly of platinum, rhodium and ruthenium. In rand terms this translated into a 57% rise in prices received to R297 292/kg, largely offsetting the effect of lower sales volumes to 10 703kg (344 077oz). In addition, revenues from nickel were boosted by strong prices, and at R404 million was 118% higher year on year.

The anticipated decline in production of metals in concentrate was contained to 4% when stripping out the effect of metal gains arising from reverts which were reported in F2006. The lower production is largely attributable to the declining head grade on the Merensky reef to 5.6g/t, which in turn had an adverse effect on the combined head grade at 5.1g/t, demonstrating the effect of the relative contribution of NP2 reef to the Merensky mining mix. “We are in the process of addressing this imbalance by turning to account higher grade P2 reserves,” says Northam chief geologist Damian Smith.

Although total operating costs increased by 9.7%, the lower head grade, and consequent metal recoveries impacted adversely on volumes, resulting in unit costs being 23.6% higher year on year. Also contributing to rising costs were the increases in prices for steel, cement and reagents.

The 26% increase in cost of sales at R1.7bn reflects purchases of custom material and higher refining costs, including a 225% increase in nickel refining costs, which are linked to fluctuations in the nickel price. “Nevertheless,” commented Northam CEO Glyn Lewis, “against the background of Northam’s high gearing to metal prices and the Rand/dollar exchange rate, the favourable metal price environment saw the operating margin 26.3% higher at 54%.”

Following the February opening of the Heraeus SA refinery in Port Elizabeth, a growing percentage of Northam’s platinum and palladium output is now being refined locally. The Heraeus Fine Metal Refinery has the capacity to produce Heraeus brand metal, sponge and ingots. Heraeus SA has applied for London-Zurich good delivery status from the London Platinum and Palladium Association (LPPA). Commenting on the progressive switch to local refining, Lewis said that this had been an extraordinarily successful process, and has further cemented the long-standing relationship with Heraeus, a world-renowned specialist in precious metals refining and manufacture. Furthermore the project ensures a continued independent metal supply to global markets, and further entrenches Northam’s South African beneficiation opportunities.

Looking forward, Lewis anticipates that difficult Merensky mining conditions are likely to persist at the Northam operation. “Consequently it is extremely difficult to estimate PGM production levels for F2008. However,” he concluded, “we expect continued robust fundamental metal demand, and therefore continued strong US dollar prices. In these circumstances, and should the rand remain at current levels, earnings are likely to be in line with those of the year under review.”

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Announcements 2007