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Second Quarter 2011: Production Results

27 Jan 2011 07:00

Aquarius Platinum Limited(Incorporated in Bermuda)Registration Number: EC26290Share Code JSE: AQPISIN Code: BMG0440M1284

SECOND QUARTER 2011: PRODUCTION RESULTS

Highlights

- Attributable production increased by 3% quarter-on-quarter and by 14% compared to Q2 2010, to 127,579 PGM ounces

- Average PGM Dollar prices improved through quarter - platinum up 9%, palladium up 37% and rhodium up 2%

- The Rand strengthened against the Dollar by 6% on average and by 5% over the quarter

- Weighted average cost per PGM ounce improved by 13% in local currency terms compared to prior quarter

Q2 2011 Operating Results Summary Kroondal Marikana Everest Blue Ridge Mimosa CTRP Plat. * + Mile 4E PGM Production Total (100% basis) 119,444 32,831 25,144 - 47,023 1,451 4,121 Attributable 59,722 16,415 25,144 - 23,512 725 2,061 4E Basket Price R/oz 10,089 10,072 9,881 - - 10,796 9,955 $/oz 1,457 1,455 1,427 - 1,207 1,559 1,447 Cash Costs (4E basis) R/oz 5,497 7,412 6,984 - - 5,763 5,519 $/oz 794 1,071 1,009 - 656 832 802 Cash Margin 42 24 34 - 55 26 37 Stay-in-Business Capex - R/oz 812 1,042 909 - - - - $/oz 117 151 131 - 311 - - * Everest is in ramp-up

+ Blue Ridge is in the process of redevelopment

Commenting on the results, Stuart Murray, CEO of Aquarius Platinum said:

"The business has produced much improved production results this quarter, and I am pleased in particular by the performance of our South African operations. Production was up strongly at Kroondal, our flagship asset, and both Kroondal and Marikana managed to reduce Rand cash costs despite ongoing cost pressures. Everest remains on schedule and continues to ramp up smoothly, already in significantly positive cash margin territory, while good progress was made on the Blue Ridge redevelopment project. At Mimosa bad ground was encountered across most sections of the mine, resulting in above budget usage of roof support materials, slightly lower production and increased costs, exacerbated by a stronger Rand. Nonetheless, Aquarius as a whole had a very good quarter from an operating perspective, further outperforming our very creditable Q1 and placing the business on a strong footing ahead of the traditionally more challenging Q3 and Q4 periods. The Group remains well on target to meet production guidance for the 2011 financial year."

Production by mine

Quarter ended PGMs (4E) Dec 2010 Sep 2010 % Change Dec 2009 % Change Kroondal 119,444 110,575 8% 108,254 10% Marikana 32,831 27,756 18% 37,160 -12% Everest 25,144 20,417 23% - - Blue Ridge - 8,092 - 18,598 - Mimosa 47,023 54,133 -13% 50,079 -6% CTRP 1,451 1,470 -1% 2,087 -30% Platinum Mile 4,121 3,923 5% 8,539 -52% Total 230,014 226,366 2% 224,717 2%

Production by mine attributable to Aquarius

Quarter ended PGMs (4E) Dec 2010 Sep 2010 % Change Dec 2009 % Change Kroondal 59,722 55,287 8% 54,127 10% Marikana 16,415 13,878 18% 18,580 -12% Everest 25,144 20,417 23% - - Blue Ridge - 4,046 - 9,299 - Mimosa 23,512 27,067 -13% 25,039 -6% CTRP 725 735 -1% 1,044 -31% Platinum Mile 2,061 1,962 5% 4,270 -52% Total 127,579 123,392 3% 112,359 14%

Aquarius Group attributable production (PGM ounces) to 30 December 2010

[Please refer to www.aquariusplatinum.com for the graph]

Market Summary

Metals prices

Platinum and palladium prices continued to strengthen in dollar terms throughout the quarter under review, with platinum above $1,650/oz and palladium above $560/oz throughout the period. The driver of this price strength remains largely investment demand and the weak dollar as a result of continuing quantitative easing in the US. Some improved fundamental demand in the form of encouraging US automotive numbers and strong demand from Heavy Duty Diesel (HDD) applications was seen late in the quarter, however. The average platinum price rose by 9% and that of palladium rose 37%. Rhodium and gold rose by 4% and 12% on average respectively. Platinum closed the quarter up 6% at $1,755 per ounce, and palladium rose by 39% to $797 per ounce over the same period. The rhodium price rose only 5% to $2,425 per ounce over the quarter, but has continued to rise in January. Gold rose 8% to $1,413 per ounce.

Rand-Dollar exchange rate

The average Rand-Dollar exchange rate for the quarter strengthened by 6% from R7.33 to R6.91 to the US dollar, as the Rand carry trade continues to be supported by low interest rates in the Euro and Dollar zones and further quantitative easing. The Rand closed the quarter up 5% at R6.63 to the Dollar.

The strength of the Rand has once again tempered the increase in Rand basket prices, but average PGM basket prices nonetheless strengthened at all operations in both currencies over the quarter. The US Dollar weighted average group basket price increased by 11% to $1,405 per 4E PGM ounce compared to the previous quarter, while the weighted average basket price at the South African operations was $1,450 per PGM ounce. The average South African basket price was R10,098 per PGM ounce for the period, a 5% increase compared to the prior quarter. Rand basket prices have continued to improve in January.

[Please refer to www.aquariusplatinum.com for the following graphs]

12-month individual PGM prices to December 2010 (US$/oz)

12-month PGM basket prices to Dec 2010 (US$ and ZAR per PGM basket ounce)

12-month Rand-Dollar exchange rate to December 2010 (ZAR/US$)

Average PGM basket prices achieved at Aquarius operations

Quarter ended US$ per PGM ounce (4E) Dec 2010 Sep 2010 % Change Dec 2009 % Change Kroondal 1,457 1,307 11% 1,163 25% Marikana 1,455 1,306 11% 1,173 24% Everest 1,427 1,265 13% - - Blue Ridge - 1,301 - 1,138 - Mimosa 1,207 1,144 6% 910 33% CTRP 1,559 1,426 9% 1,266 23% Platinum Mile 1,447 1,300 11% 1,192 21% Weighted Avg. 1,405 1,265 11% 1,108 27%

Operating Review Summary (all numbers on 100% basis)

AQUARIUS PLATINUM (SOUTH AFRICA) (PTY) LTD (Aquarius Platinum - 100%)

P&SA 1 at Kroondal (Aquarius Platinum - 50%)

- 12-month rolling average DIIR improved to 0.74 per 200,000 man hours from 0.78 in the previous quarter

- Production increased by 8% to 1,752,590 tonnes- Head grade improved from 2.62 g/t to 2.63 g/t- Recoveries decreased by 1% to 80%- Volumes processed increased by 8% to 1,762,061 tonnes

- Stockpiles at the end of the quarter totalled approximately thirty four thousand tonnes

- PGM production increased by 8% to 119,444 PGM ounces

- Revenue increased by 23% to R1,134 million due to improved production and basket price

- Mining cash costs decreased by 9% to R373 per tonne, and costs per PGM ounce by 9% to R5,497

- Kroondal's cash margin for the period improved from 28% to 42%

P&SA2 at Marikana (Aquarius Platinum - 50%)

- 12-month rolling average DIIR improved to 0.61 per 200,000 man hours from 0.76 in the previous quarter

- Production increased by 19% to 612,389 tonnes; 488,689 from underground and 123,699 from open pit

- Head grade decreased by 7% to 2.31 g/t- Recoveries increased by 3% to 71%- Volumes processed increased by 23% to 623,942 tonnes- PGM production increased by 18% to 32,831 ounces

- Revenue increased by 34% to R321 million due the improved production and basket price

- Mining cash costs decreased by 18% to R390 per tonne, and costs per PGM ounce by 15% to R7,412

- Marikana's cash margin improved from -1% to 24%

- 1 Shaft became uneconomical during the quarter and is being placed on care and maintenance - development has been stopped and stoping will stop in June 2011

Everest Mine (Aquarius Platinum - 100%)

- 12 month rolling DIIR fell to 0.25 per 200,000 man hours from 0.18 in the previous quarter

- Production increased by 36% to 348,469 tonnes- Head grade improved from 2.75 g/t to 2.80 g/t- Recoveries increased from 77% to 81%

- Better recoveries due to increased underground tonnes processed coupled with stabilisation of the plant after re-commissioning

- Volumes processed increased by 14% to 342,624 tonnes- PGM production increased by 23% to 25,144 PGM ounces- Revenue increased by 39% to R265 million all attributable to AQPSA

- Mining cash costs decreased by 16% to R513 per tonne, and costs per PGM ounce by 22% to R6,984

- Everest's cash margin increased from 4% to 34%

- Re-establishment project and production ramp-up in line with plan and progressing well

AQPSA Operating costs per ounce

4E 6E 6E net of by-products (Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) (Ni&Cu) Kroondal 5,497 4,494 4,356 Marikana 7,412 6,078 5,844 Everest 6,984 5,801 5,091

Update on impact of revised hangingwall support strategy

The majority of the action steps to implement the new support system have been implemented at Kroondal, Marikana and Everest. At Kroondal the new methodologies have already resulted in a decrease in fall-of-ground incidents. The additional support strategy will be fully implemented at Kroondal and Marikana in the next quarter.

Capital expenditure

As a result of a decision to buy as opposed to rent Underground Mobile Equipment, AQPSA has changed its accounting policy to include these expenses as a capital expenditure during the quarter the asset is procured, and not as an operating lease as was the case previously. New mobile equipment is being depreciated over a 3 year period. This change has not had a material effect on unit cash costs in the current period, but it will gradually reduce cash costs, concomitant with an increase in capital expenditure in future.

Stay-in-business capital expenditure (including ongoing infrastructure establishment) increased over the quarter as a result of additional one-off expenditure on equipment for the new hanging-wall support methodologies.

Kroondal Marikana Everest Total Per 4E oz Total Per 4E oz Total Per 4E oz

Ongoing Infrastructure Establishment R68m R570 R29m R891 R23m R909

Project Capital R17m R141 - - R26m R1,037 Mobile Equipment R12m R101 R5m R152 R23m R897 Total R97m R812 R34m R1,042 R72m R2,844

RIDGE MINING LIMITED (Aquarius Platinum - 50%)

Blue Ridge Platinum Mine

- 1 Fatality was reported following a blasting accident on 2 November 2010

- 12-month rolling average DIIR was unchanged from the previous quarter at 2.02 per 200,000 man hours

- Mine closed for redevelopment at the start of Q2

Update on redevelopment plan

The Blue Ridge redevelopment plan was approved by the Blue Ridge Board in September 2010 and implementation commenced immediately in Q2. Stoping operations and the processing plant were stopped, and any run-of-mine material was stockpiled. Approximately 900 employees were redeployed, some to other Aquarius operations, and the process was concluded satisfactorily with retrenchments limited to a minimum.

In keeping with the plan, development was increased and infrastructure upgrade projects were commenced during the quarter. Development for the quarter was a total of 2,365 meters, with developed ore reserves standing at 1,843 meters.

No Revenue was generated during the quarter as a result of the temporary plant stoppage. All expenditures continued to be capitalised. The plant has been temporarily re-commissioned in January 2011 in order to ensure the plant remains in a production-ready state for the commencement of stoping operations in Q4. A full update on the redevelopment project will be included in the Interim Report in February.

MIMOSA INVESTMENTS (Aquarius Platinum - 50%)

Mimosa Platinum Mine

- 12-month rolling average DIIR improved to 0.17 per 200,000 man hours from 0.45 in the previous quarter

- Production decreased by 14% to 560,142 tonnes- Head grade deteriorated by 1% to 3.58g/t- Recoveries decreased to 75% from 78%- Volumes processed increased by 8% to 1,762,061 tonnes

- Stockpiles at the end of the quarter totalled approximately 147,193 tonnes

- PGM production decreased by 13% to 47,023 PGM ounces

- Revenue decreased by 10% to $69 million due to lower achieved sales volumes

- Mining cash costs increased by 5% to $57 per tonne, and costs per PGM ounce by 10% to $656

- Stay-in-business capital expenditure was $311 per PGM ounce for the quarter

- Mimosa's cash margin for the period fell from 57% to 55%

Operating cash costs per ounce

4E 6E 4E net of by-products (Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) (Ni, Cu & Co) Mimosa 656 622 274 TAILINGS OPERATIONS

Chromite Tailings Retreatment Plant (CTRP) (Aquarius Platinum - 50%)

- Material processed decreased 44% to 23,000 tonnes- Head grade increased to 3.36 g/t- Recoveries increased by 43% to 58%- Production increased to 1,451 PGM ounces- Cash costs increased by 5% to R5,763 per PGM ounce- Revenue was R11 million for the quarter- There was no capital expenditure for the quarter

- The cash margin for the period was 26%, a increase from 17% in the previous quarter

Platinum Mile (Aquarius Platinum - 50%)

- Material processed increased 3% to 1,153,000 tonnes- Head grade fell slightly to 0.60 g/t- Recoveries increased by 12% to 19%- Production increased to 4,121 PGM ounces- Cash costs decreased by 7% to R5,519 per PGM ounce- Revenue was R36 million for the quarter- There was no capital expenditure for the quarter

- The cash margin for the period was 37%, a increase from 25% in the previous quarter

- Operating cash costs per ounce 4E 6E 4E net of by-products (Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) (Ni, Cu& Co) CTRP 5,763 3,999 3,903 Platinum Mile 5,519 4,757 4,283

Statistical Information: Kroondal P&SA1