Lonmin Plc

 Fourth Quarter 2010 Production Report

 Introduction

 Lonmin Plc, ("Lonmin" or "the company") today publishes its production report for the three months to 30 September 2010. Lonmin has also published today, in a separate announcement, its final results for the year ending 30 September 2010.

 During the year, we reviewed and revised the management structure for Marikana mining into four business units comprising Karee, Westerns, Middelkraal and Easterns and we are reporting under this format for the first time.

 Q4 2010 Production

Total tonnes mined for the fourth quarter of the 2010 financial year from our Marikana underground operations, were 3.1 million, up 0.5 million, a 19.5% increase from the prior year period and quarter on quarter increase of 19.3%. All the mining business units increased their production quarter on quarter. The 0.5 million tonnes year on year increase reflects a notable 0.3 million tonnes contribution from Karee which includes K3. In addition Middelkraal's Saffy and Hossy operations increased production by some 0.1 million tonnes or 29.8%, whilst Easterns increased production by 33.7% or some 0.1 million tonnes. Production at Westerns was more muted as the increase at Rowland was largely offset by a decline at Newman, where the shaft is starting to come to the end of its life. The reduction in the frequency and impact of Section 54 safety shutdowns was a contributing factor with only around 37,000 tonnes of production lost in the quarter due to Section 54 shutdowns, compared to around 196,000 tonnes in the prior period.

The quarter on quarter trend demonstrates an improving underground performance as the year has progressed. In Quarter One the 2.6 million tonnes mined was almost 4% lower than the prior year period. Quarter Two performance was effectively flat whilst Quarter Three production increased by just over 10%.The Quarter Four increase of almost 20% completes the trend and finishes the year with an excellent underground mining performance.

Production at the Merensky open pit started at the end of the second quarter and has continued to ramp up, achieving 0.2 million tonnes in the quarter. We expect production to be maintained at this level during 2011.

Pandora underground production continued to improve and achieved a quarter on quarter increase of 9.3% and a 21.2% increase over the prior year period.

Overall, tonnes mined in the quarter increased by 28.2% to 3.4 million tonnes from prior period.

Total tonnes milled in the quarter increased over the prior year period by 8.6% year on year to 3.3 million tonnes. This is lower than the increase in tonnes mined as some 243,000 tonnes of opencast was milled in the last quarter of 2009 whilst in 2010 no opencast was milled, as 237,000 tonnes of opencast ore has been stockpiled for milling during the Christmas break. Compared to the third quarter of 2010 there was an increase of 17.6% in tonnes milled.

Underground concentrator recoveries increased significantly to 85.0% from 81.9% from the prior year period, reflecting the continued success of the concentrator optimisation programme.

Underground milled head grade was 4.63 grammes per tonne (5PGE+Au) for the quarter, up from 4.59 grammes per tonne in the prior year period. This has continued the trend of small grade improvements each quarter compared to the prior year period. Sequentially, the underground head grade also showed an improvement quarter on quarter from 4.60 grammes per tonne to 4.63 grammes per tonne.

Platinum in concentrate from the Marikana operations was 194,705 saleable ounces, a quarter on quarter increase of 19.2% and 18.8% increase from the prior year period. In total, the concentrators produced 202,898 saleable ounces of Platinum in concentrate for the quarter, a 17.9% increase from prior year period.  These marked improvements can be attributed to the increase in tonnes milled and the continued excellent concentrator recoveries.

Total refined production in the fourth quarter of the 2010 financial year was 301,492 ounces of Platinum and 533,387 ounces of PGMs, a significant quarter on quarter increase from 91,952 ounces of Platinum and 194,234 ounces of PGMs respectively mainly due to the delays in production following the Number One furnace incident in May. During the quarter, 77,368 ounces of Platinum were toll refined in order to reduce the processing back log which arose from the extended down time of the Number One smelter. Total refined Platinum and PGM production in the quarter increased by 80.7% and 67.8% respectively year on year.

Metal sales during the fourth quarter of the 2010 financial year also increased significantly by 67.4% and 50.3% to 322,401 and 539,354 Platinum and PGM ounces respectively from the prior year. This included the sale of around 25,000 platinum ounces of concentrate.

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) 11 214 2000

Dani Cohen / Ravin Maharaj

Notes: