Sylvania Platinum Regulatory News (SLP)

SYLVANIA PLATINUM LIMITED

 ("Sylvania Platinum", "Sylvania" or the "Company"

(ASX: SLP, AIM: SLP)

Quarterly Report to 30 June 2011

HIGHLIGHTS

·; Another record quarter for the Sylvania dump operations ("SDO")

o 11,715 ounces PGM 3E and Au produced by the five SDO plants in the quarter;

o 11,886 ounces attributable to Sylvania including CTRP, 7% improvement on last quarter;

o Costs reduced by 6%

·; Sylvania and Aquarius Platinum (SA) (Pty) Ltd ("AQPSA") sign agreement to further explore the ore deposits at Everest North;

·; On market Share buy-back implemented;

·; Commissioning of the Mooinooi Heavy Media Separation ("HMS") and Lannex tailings dam.

OVERVIEW

The quarter to 30 June 2011 has been another record breaking quarter for Sylvania, producing 11,715 ounces at its five SDO plants. In the financial year to 30 June 2011 the Company produced a total of 41,013 ounces, exceeding its targeted 40,000 ounces. Although SDO ounces increased by 9%, revenue decreased by 5% from R91 million to R87 million due to the drop in the commodity price and strengthening of the Rand against the US Dollar. Operating cost per ounce for the quarter decreased by 6% from R4,045/oz (US$585/oz) to R3,740/oz (US$551/oz) in US Dollar terms. The current quarter also saw the commissioning of a number of capital projects and improvements including the Lannex tailings dam and the HMS at Mooinooi. The Company had R162 million (A$22 million) cash available at 30 June 2011.

On 20 June 2011 Sylvania announced that it would implement an on-market share buy-back of up to 10% of the issued share capital of the Company. The share buy-back commenced on 21 June 2011 and has a maximum duration of 12 months. At 30 June 2011 the Company had bought back a total of 10,000 fully paid up common shares ("Shares") and 700,000 depositary interests representing beneficial interests in Shares ("DIs") with a market value of A$405,031.

Subsequent to the Quarter end, on 8 July 2011 Sylvania announced its decision to dispose of its magnetite iron ore assets, subject to shareholder and regulatory approvals. SA Metals Proprietary Limited ("SA Metals"), a wholly owned subsidiary of Sylvania currently owns the iron assets which are located on the Northern Limb of the Igneous Bushveld Complex. The decision by the Sylvania Board to divest the iron ore assets will allow the Company to concentrate on the expansion of its existing SDO operations as well as development of the Volspruit project and Northern Limb exploration.

Summary Group Performance

A. SYLVANIA DUMP OPERATIONS

Health, safety and environment

Sylvania had one lost time injury ("LTI") during the quarter ended 30 June 2011 at its Lannex operation, the first since October 2009. The Company remains committed to reducing the incident frequency rate to zero through continued education, improving safety procedures and working to the highest possible standards.

Millsell

The Millsell operation produced 2,014 ounces for the quarter ended 30 June 2011, compared to 2,087 ounces in the previous quarter. Although plant recoveries were slightly higher than the previous quarter at 48%, the head grade dropped to 2g/t as expected from 2.28g/t in the previous quarter. Following the planned completion of the Millsell dump during the quarter, the majority of the material treated was trucked from the nearby Waterkloof dump. Cost of production was R117/oz higher than in the previous quarter at R3,025/oz (US$469/oz).

Steelpoort

The Steelpoort operation produced a total of 2,834 ounces for the quarter to 30 June 2011, a 210 ounce decrease on the previous quarter. The reduction in ounces is due to the lower grade of the current arisings received from the Steelpoort mine. The operating costs for the current quarter improved from R2,759/oz (US$399/oz) in the previous quarter to R2,654/oz (US$391/oz).

Installation of the de-sliming cyclone on the spiral plant has been completed and this is expected to improve recoveries in the future.

Lannex

The Lannex operation produced a record of 2,727 ounces for the quarter ended 30 June 2011 compared to the previous quarter's 2,277 ounces. Despite the LTI in April 2011 which resulted in plant downtime as a remedial and preventative action, the plant produced 450 ounces more than the previous quarter.

Commissioning of the new tailings facility at the Lannex plant was completed during the quarter and is now fully operational.

Mooinooi

The Mooinooi operation produced 1,943 ounces for the quarter to 30 June 2011. This is a 402 ounce increase on the previous quarter's 1,541 ounces. Plant operating cost remains high at R5,449/oz (US$802/oz) compared to R4, 532/oz (US$660/oz) in the previous quarter as a result of costs attributable to the newly commissioned HMS plant at Mooinooi. The HMS plant was successfully commissioned in May 2011.

The expansion of the floatation plant has commenced and is intended to upgrade the existing float plant from a 14,000 ton per month to a 28,000 ton per month throughput from a combination of run of mine fines, dump material and current arisings feed sources. A new spiral section will also be installed to treat the dump material and current arisings. The total capital cost of the expansion is estimated to be R54.4 million.

Doornbosch

The Doornbosch plant produced a record of 2,196 ounces in the current quarter, a 21% increase on the previous quarter's record of 1,819 ounces. Less current arisings were received from the host mine which necessitated more reclamation from the nearby Montrose/Onverwagt tailings dam. Although this material has higher grades, it is also more costly as it must be transported to the plant. Operating costs were reduced to R2,996/oz (US$441/oz) in the current quarter compared to R3,037/oz (US$439/oz) in the previous quarter.

Tweefontein

During the quarter, the board approved the construction of a sixth SDO plant at the Tweefontein mine. The planning process remains on track to commission the Tweefontein plant in May 2012.

B. CTRP (Sylvania 25% attributable, managed by Aquarius Platinum)

CTRP production decreased from 318 ounces to 172 ounces. The low ounce production is as a result of low feed density and numerous line chokes.

For a graph showing the Sylvania Resources Quarterly production please click on the following web link (Graph 1):

http://www.rns-pdf.londonstockexchange.com/rns/3423L_-2011-7-29.pdf

C. NORTHERN LIMB OPERATIONS

Volspruit Project

The Volspruit Project is located at the Southern end of the Northern Limb of the Bushveld Igneous Complex in South Africa.

The Volspruit project is characterised by a number of projects which are in the process of being aligned to deliver a single definitive feasibility study ("DFS") which incorporates the approach to design, build and commission the open cast mine, PGM concentrator, DC Arc smelter and base metal refinery using the Chemical Vapour Metal Refining ("CVMR®")process. During the quarter, SRK Consulting has delivered the DFS study tender document based on a gap analysis performed on all historic work done for the project. In addition, the consultants responsible for the Smelter/Refinery project delivered the conceptual study document. Legal aid has been engaged to assist with the Mining Right Application, due at the end of July 2011 because the Department of Mineral Resources ("DMR") has recently changed the format in which they require the documents to be submitted.

The Environmental Scoping Report was completed during the quarter and issued to the Limpopo provincial department on 1 July 2011.

The smelter and CVMR have been included in the report referred to above.

Northern Platreef Project

As previously announced, a JORC compliant Inferred Resource with four elevated grade prospecting target areas/hot spots has been identified.

A four phase drill program is planned to commence during August 2011 aimed at upgrading components of the current declared Inferred Resource to Indicated category. Drilling will be conducted on two of the four identified higher grade areas/hot spots.

D. SYLVANIA GROUP

Vygenhoek project (Everest North)

Sylvania and Aquarius Platinum (SA) (Pty) Ltd ("AQPSA") announced on 3 June 2011 that they have entered into an agreement on the PGM bearing ore on the Vygenhoek farm. A feasibility committee ("Committee") has been formed to examine and update the existing data available for the processing of the PGM bearing ore from Everest North. This information will enable the Committee to determine the viability of mining for PGMs and producing a saleable concentrate. Sylvania shall bear all costs related and incidental to the engagement of independent third party experts appointed by the Committee to assist with achieving the objectives of the Committee. In the event that AQPSA determines that additional third party experts are necessary to independently verify the feasibility study, AQPSA shall bear the costs of all such experts employed by AQPSA to achieve those objectives.

An unincorporated joint venture ("JV") will be formed in which Sylvania and AQPSA will each hold a 50% share and both parties will have equal representation on the management committee that will manage and oversee the implementation of the project. Upon receipt of the mining right by the DMR to AQPSA and AQPSA contributing the right to the JV, Sylvania will pay R6 million to AQPSA.

Sale of magnetite iron ore assets

On 8 July 2011 Sylvania announced its decision to dispose of a significant portion of its magnetite iron ore assets, subject to shareholder and regulatory approvals. SA Metals, a wholly owned subsidiary of Sylvania currently owns the iron assets which are located on the Northern Limb of the Igneous Bushveld Complex.

A review of the Northern Limb assets has shown that magnetite layers are present across the entire northern limb properties held by Sylvania. In those areas where Sylvania does not hold prospecting rights for the iron ore, it has submitted applications which have since been accepted. This gives Sylvania a potential +20 kilometre strike of the magnetite layers as indicated by an airborne magnetic survey undertaken by SA Metals.

Subsequent to the current quarter a decision was taken by the Sylvania Board to separate the iron ore assets from the existing SDO operations as well as development of the Volspruit open cast mine. The Directors believe that the decision to divest its iron assets will allow the Company to fully focus on reaching its 2012 financial year production targets which will include successful optimisation of two existing plants, Lannex and Mooinooi, and the development of the Company's sixth plant, Tweefontein. Sylvania also expects to make significant progress at its Northern Limb near surface PGM and base metal operations.

Joint Broker

On 4 July 2011 Sylvania announced the appointment of RBC Capital Markets as joint broker. Ambrian Partners Limited will continue to act as Nominated Advisor and joint broker to the Group.

Share buy-back

On 20 June 2011 Sylvania announced that it would implement an on-market share buy-back of up to 10% of the issued share capital of the Company. The share buy-back commenced on 21 June 2011 and has a maximum duration of 12 months. The buy-back is limited to 10% of the Company's issued share capital and will consist of fully paid up common shares ("Shares") on ASX and depositary interests representing beneficial interests in Shares ("DIs") on AIM. The price will be limited to a maximum of 5% above the average market price paid for Shares or DIs over the preceding five days on which sales were recorded.

Existing cash reserves will fund the share buy-back and will cost the Company approximately A$16.76 million (based on the market value of Shares and DIs on 17 June 2011) should the full 10% be acquired. The buy-back will benefit shareholders through enhanced liquidity and forms part of the Board's on-going capital management strategy.

At 30 June 2011 the Company had bought back a total of 10,000 Shares and 700,000 DIs with a market value of A$405,031.

CORPORATE INFORMATION

Registered office: Sylvania Platinum Limited

Claredon House

2 Church Street

Hamilton HM 11

Bermuda

Postal address: PO Box 524

Wembley WA 6913

Australia

CONTACT DETAILS

South Africa: Terry McConnachie Louis Carroll

(CEO) (Finance Director/Joint Company Secretary)

Sylvania Platinum Limited Sylvania Platinum Limited

(+27 11) 673 1171 +44 (0) 7969 170 622

Australia: Richard Rossiter Grant Button

(Chairman) (Joint Company Secretary)

Sylvania Platinum Limited Sylvania Platinum Limited

(+61 8) 9226 4777 (+61 8) 9226 4777

United Kingdom: Anthony Rowland / Ben Wright Martin Eales

Ambrian Partners Limited RBC Capital Markets

Nominated Advisor and Joint Broker

Joint Broker

+44 (0) 20 7634 4700 +44 (0) 20 7653 4000

Laurence Read/ Beth Harris

Threadneedle Communications

+44 (0) 20 7653 9855

Sylvania Website: www.sylvaniaplatinum.com

Rule 5.3

Appendix 5B

Mining exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001, 01/06/10.

Consolidated statement of cash flows

Payments to directors of the entity and associates of the directors

Payments to related entities of the entity and associates of the related entities

Non-cash financing and investing activities

Financing facilities available

Add notes as necessary for an understanding of the position.

Estimated cash outflows for next quarter

Reconciliation of cash

Changes in interests in mining tenements

Issued and quoted securities at end of current quarter

Description includes rate of interest and any redemption or conversion rights together with prices and dates.

Compliance statement

1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4).

2 This statement does give a true and fair view of the matters disclosed.

Sign here: Date: 29 July 2011

Louis Carroll

Finance Director

Notes

1 The quarterly report provides a basis for informing the market how the entity's activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

2 The "Nature of interest" (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.

3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities.

4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.

5 Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

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