Bushveld Minerals Regulatory News (BMN)

25 March 2014

Bushveld Minerals Ltd

("Bushveld" or the "Company")

Private Subscription

Bushveld Minerals Limited (AIM:BMN) is pleased to announce that it is has agreed a new funding arrangement with Darwin Strategic Limited ("Darwin"), pursuant to which Darwin has subscribed for 50,000,000 ordinary shares of one penny each ("Subscription Shares") at a price of 5.7 pence each. The aggregate issue price of £2,850,000 is to be satisfied by the issue of 2,850,000 redeemable subscription notes of £1 each ("Subscription Notes") by Darwin to Bushveld. Completion of the Subscription is conditional upon the Subscription Shares being admitted to trading ("Admission") on AIM on or before 1 April 2014.

Over the course of the 12 months following Admission, the Company will at its sole discretion, instruct Darwin to sell Subscription Shares and redeem the Subscription Notes (subject to certain conditions, further details of which are set out below). Accordingly, the arrangement provides a flexible means of accessing further equity financing to support the continued development of Bushveld's mineral assets, while benefiting from any increases in the Bushveld share price that may be realised during this period.

Application has been made to the London Stock Exchange for the new ordinary shares to be admitted to trading on AIM from 8.00am on 1 April 2014 ("Admission").

Following Admission, there will be a total of 454,504,104 ordinary shares in issue. For the purposes of calculating Total Voting Rights shareholders may use this number as the total number of shares in issue from the date of Admission.

Following Admission, Darwin will be interested in 50,000,000 Ordinary Shares representing 11.0% of the issued share capital.

Commenting on the Subscription, Fortune Mojapelo, Chief Executive of Bushveld, said:

"We are pleased to agree this highly flexible funding arrangement with Darwin, which will augment our strong cash position over the next 12 months. The terms of the Redeemable Subscription Notes provide Bushveld ultimate control and flexibility in terms of the timing and amounts of the Subscription Notes redeemed. All redemptions are done at Bushveld's discretion, at market prices without applying historical weighted averages and discounts, with Bushveld retaining 100% economic interest in the shares. The terms enable the Company to capitalise on high liquidity and share appreciation windows via an efficent capital raising platform."

Enquiries: info@bushveldminerals.com

Details of the Subscription:

Over a period of 12 months following Admission, the Company will instruct Darwin to sell Subscription Shares at Bushveld's direction and remit the proceeds (net of fees and expenses) to Bushveld as consideration for redeeming the Subscription Notes.

Whilst the precise amount due to Bushveld on the redemption of Redeemable Subscription Notes will depend on future share price trends, the redemption of all the Redeemable Subscription Notes at current prices would raise gross proceeds (before the deduction of applicable fees and expenses) of approximately £2,850,000.

If at the end of the 12 month period commencing on Admission any Subscription Shares are still held by Darwin such that any Redeemable Subscription Notes remain outstanding, there will be a further period of up to 100 business days (the "Additional Period") to redeem the remaining Subscription Notes and pay any remainingproceeds to Bushveld. If at the end of the Additional Period Darwin still holds any Subscription Shares, Darwin shall make a payment to Bushveld equal to the number of such Subscription Shares at the average price at which it has sold Subscription Shares during the Additional Period.

Darwin is entitled to a fee of of 5% of all amounts due to Bushveld following the sale of shares and, if applicable, at the end of the Additional Period (and such fees may be deducted from such payments).

Bushveld has also issued 3,000,000 warrants to Darwin with an exercise price of 8 pence. The warrants are exercisable at any time during their 5 years and one week term.

Notes to the editor

Bushveld Minerals Limited is a mineral development company with a a portfolio of vanadium-and titanium bearing iron ore and tin 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 54.39% interest in Lemur Resources (ASX: LMR), that owns the Imaloto coal project in Madagascar.

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