Bushveld Minerals Regulatory News (BMN)

25 July 2013

Bushveld Minerals Limited

 ("Bushveld" or the "Company")

Extension of Offer for Lemur Resources Limited, Freeing of Offer from Conditions and Preliminary Response to the Target's Statement

The Company has updated shareholders of Lemur Resources Limited ("Lemur") with regard to certain matters in connection with its Offer for Lemur. The full statement can be read here http://www.rns-pdf.londonstockexchange.com/rns/1383K_-2013-7-25.pdf. The following is a summary of the key issues that affect the Offer for Lemur.

Extension of Offer

Bushveld Minerals Limited today announces that it will extend the offer period under its takeover bid for all of the ordinary shares in Lemur Resources Limited (ASX:LMR), the terms of which are contained in the Replacement Bidder's Statement dated 1 July 2013 (Offer).

The offer period has been extended to 7.00pm (EST) on 30 August 2013.

Freeing Offer from Conditions

Bushveld also confirms that it has declared the Offer free from all defeating conditions.

Response to Target's Statement

On 23 July 2013 the Lemur board issued its Target's Statement regarding the Offer. Bushveld announces that it is preparing a Second Supplementary Bidder's Statement in response to the Target's Statement issued by the Lemur board and to update Lemur Shareholders on the status of the capital raising mentioned in the Replacement Bidder's Statement.

Lemur Shareholders should ACCEPT the Bushveld Offer.

The Supplementary Bidder's Statement will highlight why Lemur Shareholders should Accept the Offer, being in summary:

• The Independent Expert's Report's relative valuation of Bushveld, Lemur and the Bushveld Offer is based on a rationale that is both subjective and flawed. Bushveld reiterates that its Offer is both fair and reasonable, and represents an attractive overall value proposition for Lemur shareholders. In terms of the relative valuations of Bushveld and Lemur shares, the offer is a significant premium to Lemur's current market value.

• Bushveld also notes that Lemur shares continue to trade at a discount to the consideration offered.

• Bushveld has recently raised a further US$500,000 by way of a convertible loan note and has a well- articulated financing strategy to ensure its cash burn and financial requirements are modest. Bushveld's Board believes that the Company's current cash position (including the recently raised US$500,000) is not a reason to reject the Offer.

• The Bushveld technical team played an instrumental role in identifying and developing the Imaloto Coal Project and led the exploration programme as technical consultants so it is familiar with this project.

• Bushveld's intentions in respect of the Imaloto Coal Project do not reflect a diminished focus on the project. On the contrary, its intended approach for the project provides the best path to value creation and realisation for the Lemur shareholders. It is an approach informed by Bushveld's solid understanding of the Imaloto Coal Project (given the central role of its technical team in its identification and development) combined with Bushveld's pragmatic and strategic view for maximising value from this project.

• The Target's Statement identifies certain risks associated with not accepting the Bushveld Offer for Lemur shareholders. Bushveld urges Lemur Shareholders to consider these risks seriously.

• There are no alternative proposals to the Offer.

A more detailed examination of the Target's Statement will be included in Bushveld's Second Supplementary Bidder's Statement.

Enquiries: info@bushveldminerals.com

Notes to the editor:

Bushveld Minerals Limited is a mineral development company focused on the Bushveld Iron Ore Project and the Mokopane Tin Project, both located on the northern limb of the Bushveld Complex, South Africa.

The Company was admitted to the AIM Market of the London Stock Exchange in March 2012.