Until the legal and practical implications of the proposed conditions have been clarified with the DMR, SIOC is unable to accept the conditions. Section 96 of the Mineral & Petroleum Resources Development Act ('MPRDA') allows for an internal appeal to the Minister of Mineral Resources. Kumba therefore submitted an internal appeal to the Minister as per the requirements of the MPRDA.

In the interim, Kumba continues to engage with the Minister of Mineral Resources in relation to the proposed conditions in order to achieve a mutually beneficial solution.

The conditions contained in the Letter of Grant relate substantively to domestic supply, support for skills development, research & development, and procurement.

Shareholders will be updated as appropriate and are hereby advised to continue exercising caution when dealing in the Company's shares and securities, until a further announcement is made.

Note to Editors:

The Constitutional Court ruled on 12 December 2013 that the residual 21.4% undivided share of the mining right in respect of Kumba's Sishen mine, which is owned by Kumba's subsidiary SIOC, remained available for allocation by the DMR and that, based on the provisions of the MPRDA, only SIOC could apply to be granted the residual right. SIOC subsequently applied to the DMR in relation to the residual right.

Centurion