AQP.L Regulatory News (AQP)

AQUARIUS PLATINUM LIMITED - Second Quarter 2013 Production Results

PR Newswire

London, January 29

* Attributable production from operating mines increased by 2% quarter-on-quarter

to 78,987 4E ounces

* Average PGM basket price increased 5% for the quarter in Dollar terms

* The Rand weakened against the US Dollar by 4% on average quarter-on-quarter

* Transition to owner operator completed during the quarter and below budget

* Rollout of revised hanging wall system completed during the quarter

* Cash costs at Kroondal decreased 7% to R8,403 per PGM ounce quarter-on-quarter

* Cash costs at Mimosa increased 8% to $897 per PGM ounce quarter-on-quarter

* Mimosa and Government of Zimbabwe agreed commercial terms on Indigenisation and

signed a term sheet

Total (100% basis) 102,525 52,752 1,349

Attributable 51,262 26,376 1,349

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

The quarter under review was yet another challenging quarter during whichindustrial relations in South Africa remained strained and metal pricesremained low. The Aquarius management team persisted with its focus onrestoring operational credibility at its Kroondal mine. In this regard I amvery pleased to report that both of the significant processes we committed towere completed in time and below budget, being the migration to owner operatorand the implementation of the revised hanging wall support regime. Theimplementation of these two initiatives, combined with a focussed and motivatedwork force at Kroondal contributed to Kroondal's production exceeding 100 0004E ounces for the quarter for the first time since the Dec 2010 quarter,notably at reduced on mine unit costs, down 7% for the quarter. Given the macroenvironment in the industry this was a pleasing performance. A special mentionshould go to Rob Schroder (MD: AQPSA) and Wessel Phumo (GM: Kroondal) who leadthe AQPSA team.

At Mimosa the solid production performance continued, but Mimosa's costs duringthe quarter disappointed. Mimosa management team is focussed on addressingcosts having implemented a number of initiatives. The conclusion of theindigenisation agreement between Mimosa and the Government of Zimbabwe wasparticularly pleasing and Winston Chitando (MD: Mimosa) played a pivotal rolein this regard.

The satisfactory operational improvements notwithstanding, Aquarius remainsacutely aware that despite the improvements, the company continued to consumecash during the quarter. The price improvements and the weakened R/$ exchangerate in January 2013 combined with the fact that the once-off costs associatedwith the two aforementioned processes have been completed, is expected tosubstantially reduce cash consumption and enable to company to start producingcash at mine level.

From a PGM supply and demand perspective there seems to be consensus that bothplatinum and palladium will move into primary supply deficit during 2013.Whilst encouraging the increase in recycling, the continued depressed demandfrom the auto producers and the substantial above ground inventories renderssignificant further price increases unlikely.

Fact remains that despite the significant operational improvements, cashgeneration at current spot prices remains constrained. It is against thisbackdrop that management continues to focus on cash preservation andoperational stability and improvements. The Company is also focused on playinga positive role in terms of improving relations with the South African andZimbabwean regulators. Ensuring all stakeholders appreciate what is requiredfor a sustainable industry in future is critical and work in this regardcontinues.

Production by mine attributable to Aquarius (Operating mines)

Aquarius Group quarterly attributable production (PGM ounces) to 31 December 2012

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

Market Summary

At the beginning of the quarter the PGM Rand basket price continued to rise aspersistent illegal strikes triggered concerns for both future supply of PGMsand how it will impact the overall South African economy. The pessimism onsupply did not last long as the basket price peaked at R12,398 per oz inmid-October (from a trough R9,525 per oz in mid-August) at which point the US$dollar metal prices began to retreat; by the end of October, platinum andpalladium were both trading at two-month lows. In November, following theconclusion of the US Presidential elections and the anticipation of a continuedexpansionary monetary policy, commodity prices strengthened. PGM prices werefurther supported by the publication of Johnson Matthey's Platinum 2012 InterimReview highlighting a global deficit in platinum as a result of reduced supplyfrom South Africa and a decline in open-loop recycling. However, resolutions toillegal strike activity in the region, together with negative news surroundingthe euro zone economy and investor nervousness over the US 'fiscal cliff' atthe end of the period weighed on PGM prices and resulted in a disappointing endto a difficult quarter.

The average platinum price increased by 6.6%, while palladium increased by 6.7%and rhodium decreased by 3.1% quarter on quarter. Gold rallied by 3.9% onaverage. Platinum closed the quarter down 8.5% at $1,539 per ounce, whilepalladium rose by 9.1% to $703 per ounce and rhodium fell by 1.8% to $1,080over the same period. Gold fell 5.9% to $1,675 per ounce.

Rand-Dollar exchange rate

The average Rand-Dollar exchange rate weakened during the quarter, falling by4% from R8.28 to R8.65 to the US dollar. Since then, it has traded in a narrowrange to average 8.62 in the first two weeks of January.

The average Rand basket price for the quarter increased by 10%quarter-on-quarter, and the spot price by 2% over the period. The US Dollarweighted average group basket price increased by 5% to $1,245 per 4E PGM ouncecompared to the previous quarter. due to Rand weakness. The average SouthAfrican basket price at AQPSA's operations was R10,769 per PGM ounce for theperiod. Subsequent to the end of the quarter, the PGM basket price hasconsolidated to average R10,788 per PGM ounce for the first two weeks ofJanuary.

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

Average PGM basket prices achieved at Aquarius operations

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 1.39 per 200,000 man hours from 1.41

in the previous quarter

* Production increased to 1,727,000 tonnes from 1,410,000 tonnes

* Head grade deteriorated from 2.51 g/t to 2.41 g/t

* Recoveries deteriorated by 1% to 79%

* Volumes processed increased to 1,669,000 tonnes

* Stockpiles at the end of the quarter totalled approximately 75,000 tonnes

* PGM production increased by 11% to 102,525 PGM ounces

* Revenue increased by 13% to R956 million quarter-on-quarter due to improved

production and an increase in the 4E Basket Price

* Mining cash costs decreased by 11% to R516 per tonne, due to improved

production

* Unit cost per PGM ounce reduced 7% to R8,403 per PGM ounce due to improved

production

* Kroondal's cash margin for the period improved from 2% to 10%

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

Commentary

Kroondal: Production at Kroondal was 1.72 million tonnes, up 22% compared tothe previous quarter

The migration from contractor to owner operator, which was first announced aspart of the year-end results, has been successfully completed and substantiallyall costs in relation to this initiative incurred. The migration has beenpositively received by organised labour, employees and suppliers and is one ofthe main reasons contributing to the increased morale amongst the workforce andcontributed to the completion of a strike free quarter. Regretfully, two ofKroondal's employees were killed in separate incidents on their way to workduring the quarter. The Board and Management of Aquarius express their sincerecondolences to the families of the deceased.

All mining sections, on all shafts, have completed training on theimplementation of the revised support regime.

While the Department of Mineral Resources (DMR) continued with visits to theoperations, there were no Section 54 notices issued during the quarter. Thenumber of Section 54 notices issued has reduced significantly during the courseof the year due to improved communication and relationships between the Companyand the DMR as well as continued focus on its policies and procedures.

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

As disclosed previously, as a result of current low Rand PGM basket prices, theremaining shaft (Marikana 4 shaft) and the processing plant at Marikana havebeen placed on care and maintenance until further notice.

Everest MineAs disclosed previously, as a result of current low Rand PGM basket prices,temporary geological problems and unstable labour relations, the Everest minehas been placed on care and maintenance until further notice.

AQPSA Operating cash costs per ounce (Rand)

(R'000 unless otherwise stated) Total Per 4E oz

Ongoing establishment of infrastructure 65,099 635

Kroondal mine: reconciliation of cash costs per 4E ounce

Ongoing capital expenditure & mobile equipment (1,029) (1,142)

The Company continues to develop the K6 shaft at Kroondal and conduct designand drill work at Everest. The K6 shaft sinking project remains on budget andis ahead of time. The Company expects to incur R90 million in capital (R45million attributable to Aquarius) during H2 on this project, in line withbudget. Work on this shaft is currently performed by a mining contractor andAquarius is currently doing the planning to take over operationalresponsibility, in line with its decision to move to owner operator.

Almost all other project and growth capital expenditure has been placed onhold, pending improved market conditions. The Company is continuing with thenecessary maintenance capital expenditure required by its operating mines. Thecapital expenditure on mobile equipment is financed through a lease agreementover the life of the equipment.

MIMOSA INVESTMENTS (Aquarius Platinum - 50%)

Mimosa Platinum Mine

* 12-month rolling average DIIR improved to 0.16 per 200,000 man hours worked

* Production decreased by 5% to 600,066 tonnes, in line with forecast

* Head grade improved slightly to 3.67g/t

* Recoveries improved slightly to 77.8%

* Volumes processed decreased by 7% to 575,638 tonnes

* Stockpiles at the end of the quarter totalled approximately 123,191 tonnes

* PGM production decreased by 6% to 52,752PGM ounces in line with forecast

* Revenue increased by 16% to US$68 million due to improved metal prices

* Mining cash costs increased by 8% to US$82 per tonne, and costs per PGM ounce

by 8% to $897

* Stay-in-business capital expenditure was $171 per PGM ounce for the quarter

* Mimosa's cash margin for the period decreased from 20% to 16% due to increased

cost.

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

Commentary

The Mimosa mine continues to operate well, despite growing cost pressures whichled to above expectation increases in cost. Discussions on indigenisation wereconcluded during the month and this culminated in the signing of a term sheeton the 14 December 2012. The term sheet sets out the key details of theindigenisation plan and paves way for the drafting of detailed agreements thatwill facilitate the implementation of the plan. It is envisaged that allagreements will be finalised by the end of March 2013.

Operating cash costs per ounce

Unit cash costs per PGM ounce (before by-product credits) were 5% higher thanthose achieved in the previous quarter. The higher costs were mainly due todecreased PGM production relative to Q1, the temporary increase in reagentusage, as well as costs incurred in building the ore stock pile following thefire incident in May 2012. Metal recoveries, though marginally improved fromthe previous quarter, are still below expected levels. The consumption ofchemicals and reagents was increased, and exceeded budget, in an effort toimprove recoveries and to counter lower-than-anticipated process efficiencies.Reagents will be changed as soon as existing inventory levels have beendepleted by June 2013. A dedicated team has been put in place to work on aninitiative to improve recoveries and other plant efficiencies by about 3%within the next 12 months.

The total capital expenditure for the second quarter amounted to $9 million.Expenditure was mainly incurred in mobile equipment, Drill Rigs and LHD;Conveyor belt extension, Down dip Development, and Housing project.

TAILINGS OPERATION

Platinum Mile (Aquarius Platinum - 91.7%)

* Material processed decreased 66% to 389 million tonnes

* Head grade increased to 0.78 g/t

* Recoveries decreased to 10%

* Production decreased to 1,349 PGM ounces

* Cash costs increased to R7,688 per PGM ounce

* Revenue was R12 million for the quarter

* The cash margin for the period was 13%, an decrease from 35% in the previous

The results for the quarter were significantly impacted by strikes at AngloPlatinum during the months of October and November. For this reason theoperation lost 13 production days in September and virtually the whole ofOctober and November 2012. These strikes continued into early December 2012when production commenced as per normal. Whilst the results for the quarterwere impacted by these strikes, encouragingly a positive cash margin wasachieved despite these trying circumstances. The recently announced restructureat Anglo Platinum is not expected to materially impact the operations ofPlatinum Mile as it continues to treat only tails from the Merenskyconcentrator whilst it is expected that Anglo Platinum will reduce UG2production as part of its restructure.

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

The operation remains on care and maintenance since 6 August 2012.

Operating cash costs per ounce

Issue of Shares to Support Black Economic Empowerment (BEE) Partners

As previously announced, in October 2012 the Company issued and allotted14,000,000 fully paid common shares of US$0.05 at a price per share of 41.75pence (A$0.64) as part of a transaction intended to preserve the black economicempowerment ("BEE") credentials of Aquarius. The Board of Aquarius resolvedthat it was in the interests of Aquarius, and in line with its ongoingcommitment to comply with the BEE and regulatory framework in South Africa, toassist the BEE Partners to preserve their remaining shareholding in Aquarius.

Subsequent to the end of the quarter these shares which formed a limitedguarantee and pledge provided to the BEE Partners' financiers has beenreleased. These shares are currently held as Treasury.

Aquarius' full announcement released to the market on 4 October 2012 outliningdetails of the transaction is available on Aquarius' website.

Mimosa Indigenisation

On 14 December 2012, Mimosa Investment Holdings ("Mimosa Investments"), whichis held jointly in a 50:50 partnership with Impala Platinum Holdings Limited,concluded a term sheet in respect of a proposed indigenisation implementationplan ("IIP") with the Government of Zimbabwe. The term sheet provides for thekey terms, subject to certain conditions precedent, of the sale by MimosaInvestments of an aggregate 51% equity ownership of Mimosa Holdings (Private)Limited ("Mimosa Holdings"), the wholly owned operating subsidiary of MimosaInvestments which owns and manages the Mimosa mine. The sale consideration forthe 51% of Mimosa Holdings to the indigenous parties is US$550 million (50%attributable to Aquarius), based on an agreed fair market value for MimosaHoldings of US$1.078 billion.

Mimosa Investments will provide a vendor loan funding mechanism to facilitatethe transaction which has a term of ten years. This loan will bear interest ata rate of 9% annually and will be settled through the waiver of the right toreceive 90% of dividends due to the indigenous entities in favour of MimosaInvestments. Any loan balance outstanding at the end of the ten-year periodwill be payable in cash.

Aquarius' full announcement of 14 December 2012 outlines details of theindigenisation plan and is available on Aquarius' website.

Potential acquisition of the Booysendal reserve

The Company remains in communication with the Department of Mining andResources ("DMR") in South Africa in relation to the outstanding approval fromthe DMR required to implement this transaction. In the event of the approvalbeing granted before the end of April 2013 by which date the agreement lapsesthe Company will advise shareholders accordingly.

Aquarius' full announcement of 4 May 2011, outlines details of this transactionand is available on Aquarius' website.

Board Changes

Mr Stuart Murray resigned as director and CEO of Aquarius and executivechairman of AQPSA in October 2012. Mr Jean Nel was appointed Chief ExecutiveOfficer of the Group on 5 November 2012 and Mr Zwelakhe Mankazana,Non-executive Chairman of AQPSA. Sir William Purves retired from the AQP Boardon 5 November 2012.

More information on all corporate matters can be found at www.aquariusplatinum.com

Statistical Information: Kroondal P&SA1

[Please refer to www.aquariusplatinum.com for statistical information]

Statistical Information: Mimosa

[Please refer to www.aquariusplatinum.com for statistical information]

Statistical Information: Platinum Mile

[Please refer to www.aquariusplatinum.com for statistical information]

Zwelakhe Mankazana Non-executive Chairman

Mimosa Mine Management

Fungai Makoni General Manager Finance & Company Secretary

Platinum Mile Management

At 31 December 2012, the Company had on issue: 486,851,336 fully paid commonshares and 120,000 unlisted options.

Substantial Shareholders 31 December 2012 Number of Shares Percentage

HSBC Custody Nominees (Australia) Limited 26,873,642 5.52

Aquarius Platinum (South Africa) (Proprietary) Ltd

Unit 16, Berkley Office Park, 8 Bauhinia Street, Highveld Techno Park,Centurion, Pretoria, South Africa.Postal Address: PO Box 76575, Wendywood, 2144, South Africa

Aquarius Platinum Corporate Services Pty Ltd

For further information please visit www.aquariusplatinum.com or contact:

UG2 Reef A PGE-bearing chromite layer within the Critical Zone of the Bushveld

Complex