Lonmin Plc
4 Grosvenor Place
London SW1X 7YL
United Kingdom

T: +44 (0)20 7201 6000
F: +44 (0)20 7201 6100

www.lonmin.com

REGULATORY RELEASE

10 November 2014

Fourth Quarter 2014 Production Report

Lonmin Plc ("Lonmin" or "the Company"), the world's third largest Platinum producer, today announces its production results for the three months to 30 September 2014. Lonmin also, publishes today, in a separate announcement, its final results for the year ended 30 September 2014.

Overview

The rolling average Lost Time Injury Frequency Rate (LTIFR) for the 12 months to 30 September 2014 improved to 3.34 incidents per million man hours compared to 3.50 at 30 September 2013 and reflects the reduced hours of work as a result of the strike.

Ramp up excellence

As announced on 8 October, Lonmin successfully achieved ramp up to full production earlier than anticipated during August 2014.

Our successful ramp up was accelerated by earlier and stronger levels of employee attendance than had been previously expected, a well-executed care and maintenance strategy during the strike period as well as thorough planning and well controlled execution of the ramp up process. This resulted, in a rapid, safe and efficient ramp up of our operations and plants. Excellent attendance levels continued and Lonmin has experienced strong performance across all operations, to achieve an impressive performance in the quarter, with 2.8 million tonnes being mined. Whilst this represents a decline of 0.5 million tonnes on the prior year period when production was normal, tonnes mined in August and September 2014 exceeded those mined in the same period in 2013.

In what has been a challenging year given the prolonged strike, we were able to achieve a milestone: one year without a fatal accident. Our safety record showed another year on year improvement, with our LTIFR decreasing by 4.6%. This is particularly pleasing as it takes into account the impact of the strike, given the heightened safety risk when operations resume after a standstill.

Mining Division

Our Marikana underground mining operations produced 2.5 million tonnes during the fourth quarter, a decline of 0.5 million tonnes or 15.3% less than the prior year period. Pandora production was 127,000 tonnes, a decrease of 33,000 on the prior year period.

Production at Karee was down at 0.3 million tonnes, a 19.4% decline on the prior year period.

Similarly, production at Westerns declined by 0.2 million tonnes, a 16.0% drop against prior year period. Production output from Rowland shaft decreased by 10.1% compared to prior year period, and a 23.2% decline was realised from Newman, representing a decrease of 56,000 tonnes. Output from Hossy was only marginally down by 3.1% when compared to the prior year period.

At Easterns production was in-line with the prior year period, down only 1.2% as the decrease in volumes from East 2 and East 3 was off-set by increased production output from Saffy shaft where

our focus and commitment is bearing fruit. Saffy produced 48,000 tonnes more than the prior year period, representing a 16.0% increase to the comparable period, despite the strike. Good momentum has been achieved during the ramp up with Saffy achieving its best ever monthly output of just under 163,000 tonnes in September.

A total of 830,000 tonnes of production were lost during the quarter, (compared to 165,000 tonnes in the prior year period) of which 679,000 tonnes were due to the strike action, 91,000 tonnes related to Section 54 safety stoppages, and 60,000 tonnes to Management Induced Safety Stoppages (MISS).

Process Division

Total tonnes milled in the quarter decreased by 0.8 million or 25.4% to 2.3 million tonnes with underground 27.4% lower than the prior year period and opencast up by 57.5% as it was largely unaffected by the industrial action.

Underground milled head grade decreased by 4.0% to 4.37 grammes per tonne (% 5PGE + Au) when compared to 4.55 grammes per tonne in the prior year period and is directly attributable to the ore mix milled which was dictated by the strike. This remains within our expected range. The overall milled head grade was 4.31 grammes per tonne, a decrease of 4.5% on the prior year period partly due to the increase of lower grade opencast ore milled.

Underground and overall concentrator recoveries for the quarter decreased by 1.3 and 1.4 percentage points to 86.3% and 86.2% respectively when compared to prior year period.

Platinum in concentrate for the quarter was 141,624 saleable ounces, a 28.6% decrease on the prior year period.

Total refined production for the quarter at 142,712 ounces of saleable Platinum, was down 47.5% when compared against the prior year period whilst Platinum Group Metals (PGMs) produced in the quarter were 256,400, a decrease of 48.0% on the prior year period. The fourth quarter of 2013 included the processing of a build-up of pipeline stock during the third quarter in 2013 following downtime on the furnaces.

Sales & Pricing

Platinum sales for the quarter were down 47.2% to 152,270 ounces and PGM sales were down by 47.4% to 272,983 ounces. The US dollar basket price (including base metal credit) at $1,148 per ounce during the quarter was 3.5% higher than the prior year period. The corresponding Rand basket price including base metal credit  increased by 10.2% compared to the prior year period on the back of a weaker rand.                      

- ENDS -

ENQUIRIES

Investors / Analysts:

Lonmin

Media:

Notes to editors

Lonmin, which is listed on both the London Stock Exchange and the Johannesburg Stock Exchange, is one of the world's largest primary producers of PGMs. These metals are essential for many industrial applications, especially catalytic converters for internal combustion engine emissions, as well as their widespread use in jewellery.

Lonmin's producing assets are situated in the Bushveld Igneous Complex in South Africa, where nearly 80% of known global PGM resources are found.

The Company creates value for shareholders through mining, refining and marketing PGMs and has a vertically integrated operational structure - from mine to market. Lonmin's mining operations extract ore from which the Process Division produces refined PGMs for delivery to customers. Underpinning the operations is the Shared Services function which provides high quality levels of support and infrastructure across the operations.

For further information please visit our website: http://www.lonmin.com

Notes:                                                                                                                                                    

1.     East 1 shaft is now reported under Westerns in-line with changes in management structure. Prior years have been adjusted accordingly.

2.     Pandora underground tonnes mined represents 100% of the total tonnes mined on the Pandora joint venture of which 42.5% is attributable to Lonmin.                                                     

3.     Ounces mined have been calculated at achieved concentrator recoveries and as from 2014 with Lonmin standard downstream processing recoveries to present produced saleable ounces.  

4.     Tonnes milled exclude slag milling.                                                                                                               

5.     Lonmin purchases 100% of the ore produced by the Pandora joint venture for onward processing which is included in downstream operating statistics.                                                   

6.     Head Grade is the grammes per tonne (5PGE + Au) value contained in the tonnes milled and fed into the concentrator from the mines (excludes slag milled).                                                          

7.     Recovery rate in the concentrators is the total content produced divided by the total content milled (excluding slag).                                                                                                                                            

8.     As from 2014, metals-in-concentrate are calculated at Lonmin standard downstream processing recoveries to present produced saleable ounces.                                                                                                

9.     Corresponds to contained base metals in concentrate.                                                                            

10.  Nickel is produced and sold as nickel sulphate crystals or solution and the volumes shown correspond to contained metal. Copper is produced as refined product but typically at LME grade C. Chrome is produced in the form of chromite concentrate and volumes shown are in the form of chromite.        

11.  Basket price of PGMs is based on the revenue generated in Rand and Dollar from the actual PGMs (5PGE + Au) sold in the period based on the appropriate Rand / Dollar exchange rate applicable for each sales transaction.                                                                                                      

12.  As per note 11 but including revenue from base metals.

13.  Exchange rates are calculated using the market average daily closing rate over the course of the period.