Announcements 2011

1. This is a notice pursuant to section 45(5) of the Companies Act.
2. On 18 August 2011, Northam shareholders approved a special resolution pursuant to section 45 of the Companies Act authorising the board of directors (“the board”) to provide direct and indirect financial assistance to a related or interrelated company.
3. Section 45(5) of the Companies Act requires a company to provide written notice to its shareholders, amongst others, of the adoption of a board resolution to provide financial assistance if the total value of all loans, debts, obligations or assistance contemplated in that resolution, together with any previous such resolution during the same financial year, exceeds one-tenth of 1% of the company’s net worth at the time of the resolution.
4. The Board has adopted the following resolutions -
   • an undertaking in favour of Nederlandse Financierings-Maatschappij Voor Ontwikkelingslanden NV (“FMO”) and Norplats Properties (Proprietary) Limited (“Norplats Props”), a subsidiary of Northam, in terms of which the company has undertaken to provide sufficient funding of up to R80 million (eighty million rand) to Norplats Props to enable it to fulfil its obligations to FMO in terms of the Mojuteng Housing Project; and
   • to provide financial assistance of up to R 1 billion (one billion rand) for a (five) year senior unsecured revolving credit facility to be provided by Nedbank Limited to Khumama Platinum (Proprietary) Limited and Micawber 278 (Proprietary) Limited, both subsidiaries of Northam.
5. The facilities referred to in paragraph 4 will further strengthen Northam’s balance sheet and support its key strategic initiatives, which include the provision of housing for its Zondereinde mine employees (Mojuteng Housing Project) and the development of its Booysendal mine.
6. This notice is provided because the value of the financial assistance referred to in paragraph 4 exceeds the threshold stated in paragraph 3.

For and on behalf of the board
This is a notice required in terms of the Companies Act.

Johannesburg
6 December 2011

Shareholders are advised that Northam has entered into a facility agreement with Nedbank Limited, acting through its Nedbank Corporate and Nedbank Capital divisions, regarding a R1.0 billion 5-year revolving credit facility.

The raising of the Facility is in line with Northam’s previously stated funding strategy and will further strengthen Northam’s balance sheet and support the Group’s key strategic initiatives, specifically the development of its Booysendal mine (“Booysendal”) situated on the eastern limb of the Bushveld Complex.

Together with Northam’s existing cash reserves of approximately ZAR1.7 billion (as at 30 June 2011) and ZAR1.2 billion from the proposed sale of the southern portion of Booysendal, the Facility provides Northam additional financial flexibility and will ensure the Group is fully funded in the medium-term to pursue its strategic priorities.

The salient terms of the Facility are as follows:

1. (five) year senior unsecured revolving credit facility;
2. Facility limit of R1.0 billion;
3. Available to be utilised by way of periodic drawdown requests until the earlier of 1 (one) month prior to final maturity and cancellation of the agreement;
4. Voluntary prepayment and redraw permitted; and
5. Other terms, conditions and covenants typical for a facility of this nature.

Johannesburg
14 November 2011

Financial and debt advisor to Northam
Deutsche Bank

Mandated arranger, original lender and facility agent
Nedbank Corporate
Nedbank Capital

Legal advisor to Northam
Werksmans Attorneys

Legal advisor to Nedbank
Bowman Gilfillan

Sponsor
One Capital

The management of the Zondereinde division of Northam Platinum Limited regrets to advise that the company’s attempts to resolve the deadlock with the National Union of Mineworkers (NUM) and Solidarity with regard to the annual wage negotiations have been unsuccessful.

Northam financial director Ayanda Khumalo said today that the union had, to date, refused to consider the company’s financial position, had delayed the negotiations to this late stage of the year, and was being completely unrealistic in declining to shift from its demand for an increase which aggregates 27.9% for the semi-skilled category 2 to 8 employees.

“This is obviously unaffordable for Northam, given the continued volatility in the global economic environment and is exacerbated by the complex geological and mining difficulties which Zondereinde is grappling with. The operation’s very sustainability is at stake.”

Annual wage negotiations had been delayed at Zondereinde owing to the NUM purporting to represent a band of skilled employees (Category 9 and 10) ordinarily represented by Solidarity. Once agreement had been reached between the two unions on their joint representation, the wage negotiations started on 27 September 2011 followed by a further meeting on 13 October, when the company raised its two-year offer to 6.6% for year 1, and 6.8% for year 2. This was in response to the union’s demand for a 12% wage increase and a living out allowance increase of 58%.

Negotiations with NUM for the remaining semi-skilled employees in categories 2 to 8 were derailed at the first meeting on 12 October. The union’s demands at this meeting amounted to:

• An overall wage increase of 20%
• A 94% increase in the living out allowance
• A 483% increase in the allowance payable to hostel residents.

The company remains eager to resolve the current impasse without having to resolve to third party intervention.

Issued by Russell & Associates
Tel: +27 11 880 3924

Queries:

Marion Brower
Russell & Associates
+27 11 880-3924/082 895 0698

Ayanda Khumalo
+27 11 759 6000/072 331 5615

Marco van der Linde
+27 14 784 3000/083 640 5082

The management of the Zondereinde division of Northam Platinum Limited advises that the annual wage negotiations with employee representative unions Solidarity and the National Union of Mineworkers (NUM) continued yesterday, 12 October and today, Thursday 13 October 2011.

These discussions were derailed when both the NUM and Solidarity formally declared disputes with regard to the negotiations for both semi-skilled (category 2 to 8) and skilled employee (category 9 and 10) bargaining units.

In the case of the semi-skilled (Category 2-8) employees , this dispute was declared after only one meeting, where the company tabled a 5.8% opening offer.

The NUM’s demands amount to the following:

• An overall wage increase of 20%
• A 94% increase in the living out allowance
• A 483% increase in the allowance payable to hostel residents.

In the skilled employee category, the company’s offer for a two-year agreement stands at a 6.6% wage increase for year 1, and 6.8% for year 2. This is in response to the union’s demand for a 12% wage increase and a living out allowance increase of 58%.

Zondereinde general manager Danny Gonsalves said today, “ This is a disappointing outcome for everyone concerned. We would really not have expected a dispute after such a limited engagement process.”

Nevertheless management remains committed to a fair and equitable resolution to the 2011 wage discussions.The internal dispute procedures contained in the collective bargaining agreement will be utilised to try to resolve the issues before external third party intervention is sought.

Issued by Russell & Associates
Tel: +27 11 880 3924

Queries:
Marion Brower
Russell & Associates
+27 11 880-3924/082 895 0698

Ayanda Khumalo
+27 11 759 6000/072 331 5615

Marco van der Linde
+27 14 784 3000/083 640 5082

Further to the notice of meeting to Northam shareholders ("shareholders") dated 13 July 2011, shareholders are advised that the ordinary and special resolutions contained therein and tabled for voting, were passed by the requisite majority of shareholders present or represented by proxy, without modification.

Johannesburg
18 August 2011

Sponsor
One Capital