Lonrho Regulatory News (LONR)

18 August 2010

Lonrho Plc

('Lonrho' or 'The Company')

Lonrho's West African oil service port attracts TENARIS as major new tenant

Lonrho Plc (AIM : LONR) is pleased to announce that TENARIS and Luba Freeport Ltd ("Luba Freeport"), a Lonrho subsidiary, have agreed to establish a logistics facility for TENARIS at Lonrho's Luba Freeport in Equatorial Guinea following the formation of a strategic joint venture between TENARIS and GE Petrol, the National Oil Company of Equatorial Guinea, to be known as 'GEPnaris'.

TENARIS is a world leader in the supply of tubular products and related services for the world's energy industry and will provide products and services to the oil companies operating from Luba Freeport and in the Gulf of Guinea. TENARIS will operate from a temporary facility within Luba Freeport whilst a bespoke 10,000m2 storage and wash bay facility are completed by December 2010. The new facility has been designed to easily permit TENARIS operations to expand up to a 60,000m2 facility at Luba to meet further contracts as the new facility at Luba develops into a West African regional hub. Personnel accommodation and office facilities will also be provided to TENARIS by Luba Freeport.

This additional new facility emphasises Luba Freeport as the port of choice for the Equatorial Guinean oil industry. Focused on Luba Freeport's ideal geographical location and unique large deep water bay, the new service for the supply of tubular products enhances Luba Freeport's status as the 'one stop shop' for West African oil operations and underlines its advantages in providing comprehensive oil services to the West African region.

Luba Freeport is a joint venture between Lonrho plc and GEPetrol, the National Oil Company of Equatorial Guinea and benefits from naturally occurring deep water conditions able to handle both oil field supply vessels and ocean-going ships. Luba has some 350 metres of usable quay and existing clients at Luba include: Hess, Exxon Mobil, Noble Energy, MI Swaco, Baker Hughes, Schlumberger, CNOOC, Nalco and Marathon.

David Lenigas, Executive Chairman of Lonrho commented :

' We are delighted that TENARIS is yet another world class company that has chosen Luba Freeport as a base to establish operations. Luba Freeport continues to build on the range of services based at the port, and the arrival of a leading tubular pipe supplier means that all the major services required for the industry are now available from the one location, making Luba Freeport a highly efficient port from which oil companies can operate.'

LONRHO ENQUIRIES