Update Disposal of Bushveld Magnetite Iron Ore

Sylvania Platinum Limited

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

(AIM: SLP)

Update on conditional agreement for disposal

of Bushveld Magnetite Iron Ore Assets

Further to the Company's announcement on 7 March 2012 in relation to the conditional agreement between the Company and Mercury Recycling Group Plc for the disposal of the Company's iron ore assets located on the Bushveld complex, South Africa ("Transaction") the Directors wish to advise that the parties have agreed to extend the time for completion of the Transaction to 31 July 2012.

As noted in the announcement of 7 March 2012, Mercury is undertaking a placement of shares, the proceeds of which will be used to fund the development of the iron ore assets and for general working capital requirements ("Placement"). Sylvania has been advised by Mercury that the Placement is currently anticipated to be completed shortly, subject to market conditions. Following completion of the Placement the Admission Document will be posted to Mercury shareholders, which is anticipated to take place before the end of June 2012.

In accordance with the terms of the extension agreement and subject to satisfaction of all conditions, completion of the Transaction will occur no later than 31 July 2012.

CORPORATE INFORMATION

Registered office: Sylvania Platinum Limited

Clarendon House

2 Church Street

Hamilton HM 11

Bermuda

Postal address: PO Box 524

Wembley WA 6913

Australia

CONTACT DETAILS

South Africa: Terry McConnachie Nigel Trevarthen

(CEO) (Deputy CEO)

Sylvania Platinum Limited Sylvania Platinum Limited

+27 (11) 673 1171 +27 (11) 673 1171

Louis Carroll

(Director/Assistant Company Secretary)

Sylvania Platinum

+44 (0) 7969 170 622

Australia: Richard Rossiter Grant Button

(Chairman) (Director/Assistant Company Secretary)

Sylvania Platinum Limited Sylvania Platinum Limited

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

United Kingdom: Samantha Harrison Martin Eales/James Kelly

RFC Ambrian Limited RBC Capital Markets

Nominated Advisor Joint Broker

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

Graham Herring/Beth Harris

Newgate Threadneedle Communications

+44 (0) 20 7653 9855

Sylvania Website: www.sylvaniaplatinum.com