Second Quarter 2016: Production Results

Production Results to 31 December 2015

Highlights

• Attributable production from operating mines up 0.5% compared to previous corresponding period, quarter ended December 2014(pcp), but lower by 4% quarter-on-quarter

• Kroondal recorded its highest Q2 production since 2011 and production at both Kroondal and Mimosa well ahead of guidance

• Average US$ PGM basket price decreased 7% for the quarter - down 27% compared to pcp

• Kroondal PGM basket price increased 3% on average (due to the 10% weakness in the ZAR/Dollar exchange rate) to R11,206 per PGM ounce quarter-on-quarter - down 12% compared to the pcp

• Mimosa PGM basket price decreased 12% on average to $890 per PGM ounce quarter-on-quarter - down 26% compared to the pcp

• The Rand weakened against the US Dollar 10% on average quarter-on-quarter - down 23% compared to the pcp

• Cash costs at Kroondal were slightly down to R9,112 per PGM ounce quarter-on-quarter - up 2% compared to the pcp

• Cash costs at Mimosa further reduced by 3% to $772 per PGM ounce quarter-on-quarter - down 2% compared to the pcp

• Track record of excellent cost management continues with costs at both Kroondal and Mimosa at lower levels than 3 years ago despite substantial increases input costs such as labour, electricity and other costs

• Aquarius redeemed the outstanding Convertible Bonds which it issued in December 2009 at their principal amount outstanding of $125 million in the quarter

• Cash balance at quarter end of $42 million with a further $2 million attributable to Aquarius in JV entities.

www.aquariusplatinum.com

Second Quarter 2016: Production Results

Commenting on the results, Jean Nel, CEO Aquarius Platinum said:

Both Kroondal and Mimosa produced ahead of guidance and at reduced costs during the quarter. Kroondal's production performance deserves particular mention as Q2 was Kroondal's 12th consecutive quarter of higher than 105 000 PGM quarterly production and H1 production was highest since 2007. The fact that both Kroondal and Mimosa's PGM unit costs

are lower today than 3 years ago despite steep increases in labour, electricity and other costs is testimony to excellent operational management for which Rob Schroder and Winston Chitando and their teams deserve credit. That said, the lower PGM prices experienced during the quarter impacted both Kroondal and Mimosa. In order to ensure sustainability in this macro environment (US$ PGM prices fell to the lowest level in more than a decade) further cost saving initiatives were implemented at Kroondal, and specifically Mimosa, which management expects to result in unit costs reducing further going forward.

In relation to the proposed Amalgamation between AQP and Sibanye, following the approval by AQP shareholders of the Amalgamation in general meeting on 18 January 2016, AQP continues to co-operate with Sibanye in fulfilling the remaining conditions precedent to the Amalgamation Agreement and AQP shareholders will be advised of any material progress in due course.

Second Quarter 2016: Production Results

Production by mine attributable to Aquarius (Operating mines)

Average PGM basket prices achieved at Aquarius operations

Aquarius Group quarterly attributable production (PGM ounces) to 31 December 2015

Second Quarter 2016: Production Results

PGM markets update

Platinum price fell in the final months of the year, despite moving 9.8% higher across October, ending the quarter below the $900/oz level to finish at circa $877, a fall of 1.2% across the quarter. palladium prices also moved lower across the period, falling significantly in November as the metal fell over 18%, stabalising across December to finish around the $562/oz level.

Macro concerns continued to impact the prices of precious metals with the main factors impacting demand across the month including: impact of the VW scandal and continued demand and supply concerns of the PGM complex in China.

The impact of the VW "dieselgate" scandal intially saw a decrease in the demand for Platinum and an increase in palladium demand throughout late September. However, despite an initial rally for palladium, gains were rapidly given back as palladium prices fell through US$600/oz. The longer term implications of the VW issue remain somewhat unclear with either demand for palladium increasing as the primary metal for gasoline catalysts, whilst diesel volume sales will determine the demand for Platinum as the dominant metal.

Supply in Platinum remained relatively robust and despite weaker US$ prices, the weakness in the rand and ruble also resulted in a softer fall in prices for the South African producers which in turn saw supply remain more resilient. Meanwhile demand looks set to grow for platinum but the pace of this growth is unclear. Autocats, which equate to circa 43% of platinum demand, look set to remain relatively resilient as the US continues the strong run, whilst threats include movement away from diesel engines following the VW scandal.

The rand has endured a torrid weakening run, this year, falling 34% across 2015 from the starting level of circa R11.55/US$1 and breaking through the R14/US$1 level in early November and continuing this trend.

Specific PGM prices commentary

The price of Platinum fell 1.2% over the quarter, finishing at $877/oz with an average price of $908/oz. palladium moved down 13.8% to $563/oz with an average price of $617 over the quarter. Gold also reported negative gains across the quarter and reversed gains from the last quarter as it moved 4.8% lower, finishing at 1061/oz, with an average price of $1104/oz.