Lonrho Regulatory News (LONR)

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO AUSTRALIA, CANADA, JAPAN OR THE UNITED STATES OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION

20 May 2011

Lonrho Plc ("Lonrho" or the "Company")

Placing of up to 118,000,000 new ordinary shares of the Company

Lonrho Plc is pleased to announce a placing of new ordinary shares in the capital of the Company ("Placing") at 16.5 pence per share to raise gross proceeds of £19.5 million. The Placing is limited to 118,000,000 new shares in the capital of Lonrho ("Placing Shares") representing approximately 9.99per cent. of the current issued share capital of Lonrho.

Background to the Placing

Lonrho Plc is exclusively focused on the growth of sub-Saharan Africa. The Group operates in seventeen countries in sub-Saharan Africa, concentrating on providing the infrastructure and services required for the growing oil, mineral and agricultural sectors in Africa.

The Group's strategy is to continue to grow the business by further developing each of its five strategic business divisions namely: agriculture, infrastructure, transport, hotels and support services.

The local markets within which Lonrho operates are growing strongly and Lonrho is well-positioned to win some significant new contracts, particularly in its Agribusiness division. Such growth will require additional capital and also provides the opportunity for complementary acquisitions consistent with Lonrho's strategy of further developing each of its divisions across sub-Saharan Africa.

Placing

The Placing is of up to 118,000,000 Placing Shares in the capital of Lonrho, representing approximately 9.99 per cent. of the current issued share capital, at a price of 16.5 pence per share to raise gross proceeds of £19.5 million.The placing price is the middle-market closing price of a Lonrho share on 19 May 2011 and represents a premium of 0.4 per cent. to the five day average VWAP price of 16.4 pence per Lonrho share. The placing is not underwritten.

The Placing Shares will, when issued, be credited as fully paid and will rank pari passu in all respects with the existing ordinary shares of 1 pence each in the share capital of Lonrho. Application has been made to the UK Listing Authority and the London Stock Exchange for the Placing Shares respectively to be admitted to the Official List and to be admitted to trading on the London Stock Exchange's main market for listed securities ("Admission"). It is expected that Admission will take place and that dealings in the Placing Shares will begin on 26 May 2011.

Members of the public are not eligible to take part in the Placing, which has been made to (a) persons in member states of the European Economic Area (other than the United Kingdom) who are "qualified investors" within the meaning of article 2(1)(e) of the prospectus directive (directive 2003/71/EC) ("Qualified Investors"), (b) in the United Kingdom, Qualified Investors who are (i) "investment professionals" falling within Article 19(5) of the Financial Services And Markets Act 2000 (Financial Promotion) Order 2005 (the "FPO"), or (ii) "high net worth companies, unincorporated associations etc" falling within article 49(2)(a) to (d) of the FPO, and (c) to persons to whom it may otherwise lawfully be communicated (all such persons together being referred to as "relevant persons").

The issue of the Placing Shares is to be effected by way of a cashbox placing.

The Placing is conditional upon, inter alia, Admission becoming effective and on the Agreement becoming unconditional and not being terminated in accordance with its terms. The Placing will be capable of being terminated by the Company prior to Admission at its absolute discretion if there has occurred any event or any circumstance arises which, in the reasonable opinion of the Company, is or will or is likely to be materially prejudicial to the outcome of the Placing.

No offering document or prospectus has been or will be prepared in relation to the Placing and Placees' commitments will be made solely on the basis of the information contained in this Announcement and any information previously published by or on behalf of the Company by notification to a Regulatory Information Service (as defined in the Listing Rules).

Enquiries

Important Information

Panmure Gordon (UK) Limited, which is authorised and regulated in the United Kingdom by the Financial Services Authority, is acting exclusively for Lonrho Plc and for no one else in connection with the Placing and will not be responsible to anyone other than Lonrho for providing the protections afforded to clients of Panmure Gordon (UK) Limited or for affording advice in relation to the Placing, or any other matters referred to herein.

The Placing Shares have not been and will not be registered under the United States Securities Act of 1933, as amended (the "Securities Act") or under the securities laws of any state or other jurisdiction of the United States and may not be offered, sold, resold or delivered, directly or indirectly, in or into the United States absent registration except pursuant to an exemption from, or in a transaction not subject to the registration requirements of the Securities Act. The Placing Shares are being offered and sold outside the United States only in offshore transactions in accordance with Regulation S under the Securities Act. No public offering of the Placing Shares is being made in the United States. Persons receiving this announcement (including custodians, nominees and trustees) must not forward, distribute, mail or otherwise transmit it in or into the United States or use the United States mails, directly or indirectly, in connection with the Placing.

Certain statements made in this announcement are forward-looking statements. These forward-looking statements are not historical facts but rather are based on Lonrho's current expectations, estimates and projections about its industry, its beliefs and assumptions. Words such as "anticipates," "expects," "intends," "plans," "believes," "seeks," "estimates," and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors, some of which are beyond Lonrho's control, are difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. Lonrho cautions investors not to place undue reliance on these forward-looking statements, which reflect the view of Lonrho only as of the date of this announcement. The forward-looking statements made in this announcement relate only to events as of the date on which the statements are made. Lonrho will not undertake any obligation to release publicly any revisions or updates to these forward-looking statements to reflect events, circumstances or unanticipated events occurring after the date of this announcement except as required by law or by any appropriate regulatory authority.

Risk Factors

Investors and prospective investors should consider carefully whether an investment in Lonrho is suitable for them in light of the information set out in this announcement. The risks and uncertainties facing the Group are set out in the prospectus dated 31 March 2011. Additional risks and uncertainties not currently known to the Group or that the Group deems immaterial may also impair its business operations. The Group's business, prospects, financial condition and results of operations could be materially and adversely affected by any of these risks.