Lonmin Regulatory News (LMI)

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

18 January 2018

Lonmin update on covenant waiver, non-cash impairment of assets and expected date for publication of full year accounts

Following the announcement of the recommended all-share offer pursuant to which Sibanye Gold Limited ("Sibanye-Stillwater") and/or a wholly owned subsidiary of Sibanye-Stillwater, will acquire the entire issued and to be issued ordinary share capital of Lonmin Plc, ("Lonmin" or "the Company" or "the Group") the ("Offer"), the Company announces that it has obtained in-principle agreement from its lenders, subject to credit approval and execution of the necessary legal agreements, for a further waiver of compliance with its consolidated tangible net worth debt covenants until the earlier of the Offer closing, lapsing or being withdrawn and the current transaction long-stop date of 28 February 2019.

As part of the Company's finalisation of its full year accounts, the determination of the non-cash impairment to the carrying value of the Group's assets for the year ended 30 September 2017 is substantially complete, the effect of which is anticipated to reduce the Group's consolidated tangible net worth significantly below the $1,100 million minimum required under the debt covenants. The abovementioned waiver will ensure that this shortfall is not regarded as an event of default during the waiver period.

The announcement and publication of the Company's financial results for the year ended 30 September 2017 is now scheduled to take place on 22 January 2018. The Quarter 1 Production Report for the 2018 financial year will be published on the same day.

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ENQUIRIES

Investors / Analysts:

Tanya Chikanza (Group Head: Corporate Strategy and Investor Relations) +44 203 908 1073 / +27 11 218 8300

Andrew Mari (Investor Relations Manager) +44 20 3908 1070

Media:

Wendy Tlou (Head of Corporate Communications) +27 11 218 8300 / +27 83 358 0049

Anthony Cardew / David Roach, Cardew Group +44 207 930 0777

Additional Information

The release, publication or distribution of this announcement in certain jurisdictions may be restricted by law. Persons who are not resident in the United Kingdom or who are subject to the laws of other jurisdictions should inform themselves of, and observe, any applicable requirements. Any failure to comply with applicable requirements may constitute a violation of the securities law of any such jurisdiction.

This announcement is not intended to, and does not, constitute or form part of any offer, invitation or the solicitation of an offer to purchase, otherwise acquire, subscribe for, sell or otherwise dispose of, any securities whether pursuant to this announcement or otherwise.

Notes to editors

Lonmin, which is listed on both the London Stock Exchange and the Johannesburg Stock Exchange, is one of the world's largest primary producers of PGMs. These metals are essential for many industrial applications, especially catalytic converters for internal combustion engine emissions, as well as their widespread use in jewellery.

Lonmin's operations are situated in the Bushveld Igneous Complex in South Africa, where more than 70% of known global PGM resources are located.

The Company creates value through mining, refining and marketing PGMs and has a vertically integrated operational structure - from mine to market. Underpinning the operations is the Shared Services function which provides high quality levels of support and infrastructure across the operations.

For further information please visit our website: http://www.lonmin.com