Bushveld Minerals Regulatory News (BMN)

Bushveld Minerals Ltd

("Bushveld" or the "Company")

Placement to raise £1.25 million

Bushveld Minerals Limited (AIM: BMN), a mineral development company focused on iron and tin projects in South Africa, is pleased to announce it has placed 36,764,702 new ordinary shares (the "Placing") in the Company at a price of 3.4 pence raising gross proceeds of £1.25m through an oversubscribed placing co-ordinated by Fox-Davies Capital.

Participants in the Placing will be issued with warrants ("Warrants") on the basis of one Warrant for every one Placing Share in the Company. The warrants will have an exercise price of 5 pence and an exercise period of two years. In addition, Fox-Davies Capital has received 1,838,235 broker warrants exercisable at the placing price and an exercise period of two years.

The Company intends to use the net proceeds of the Placing towards the ongoing development of its Bushveld Iron Ore Project and Mokopane Tin Project as well as general working capital purposes. Moreover, the warrant priced at 5 pence may potentially allow the Company to access a further £1.8m in the event the share price returns to above 5 pence and all Warrants are exercised. Also, the Company anticipates that any further capital required may be provided through the introduction of strategic partners at the project level thereby reducing any further dilution to shareholders of the Company. The Company will keep shareholders appraised of continuing discussions with strategic partners at an appropriate juncture.

Application has been made for admission of the new ordinary shares to trading on AIM ("Admission") and it is expected that Admission will take place and that trading will commence on AIM at 8.00 a.m. on or around 5 November 2013.

The total issued share capital of the Company with voting rights following the Placing will be 388, 689,866 ordinary shares. The new ordinary shares represent 9.4% of the enlarged share capital.

Fortune Mojapelo, CEO, Bushveld Minerals commented: "I am pleased to announce the successful raising of £1.25m which will go towards developing the current assets of the Company. Once the Lemur Resources bid closes next month we will be the controlling shareholders of a Group with approximately A$16m to pursue new opportunities in a depressed sector that will invariably benefit shareholders of Bushveld given the host of opportunities available. The Board and management of Bushveld remain committed to its previously stated funding strategy of introducing strategic partners to each of the iron ore and tin platforms that will assist to unlock the significant value in these projects. They also remain confident that these platforms are sufficiently compelling propositions to attract the requisite funding for their development. Finally, the Company has a busy period during the next six months to progress its Iron ore and Tin projects and implement its strategy for Lemur in earnest".

Enquiries: info@bushveldminerals.com

Notes to the editor

Bushveld Minerals Limited is a mineral development company with a portfolio of iron, tin and coal assets in Southern Africa. The Company owns the Bushveld Iron Ore Project and Mokopane Tin Project, both located on the northern limb of the Bushveld Complex, South Africa. In addition, Bushveld has a controlling 53.67% interest in ASX Lemur Resources that owns the Imaloto coal project in Madagascar.

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