Summary and High Level Reconciliation

Notable Revisions in 2011

• Mineral Resource definition work in South Africa during the year was confined to the Marikana and Pandora properties. The Limpopo, Akanani and Loskop Mineral Resources were unchanged during 2011.
  • The Mineral Resources at Marikana reduced by 5.7 Moz (3%) of 3PGE+Au in 2011. Exploration drilling at Marikana in FY11 was focussed on infill drilling rather than Mineral Resource extension and additional data collected during the year resulted in a 2% increase in resource thickness and a 3% decrease in the resource grade. Depletion through mining and higher geological losses assigned to the deeper and Inferred Resource areas accounted for the remainder of the decrease in the 3PGE+Au Mineral Resource.
• The West Kenya Earn-in and Joint Venture Agreement between Aviva and AfriOre International (Barbados) Limited, a wholly owned subsidiary of Lonmin Plc, declared a maiden Inferred Mineral Resource on the Bumbo deposit. The portion attributable to Lonmin (49%) is 0.82 Mt at a copper equivalent grade of 4%. Details of this copper-zinc-gold-silver resource can be found under the Non-Platinum Group Elements section of this report.
• Revisions to the Mineral Reserve at Marikana in 2011:
  • The Marikana Mineral Reserve grade decreased by 3% (0.13 g/t). This was largely due to the lower resource grade.
  • The 3PGE+Au content of the Marikana Mineral Reserve was 6% lower (2.5 Moz) as a result of the lower resource grade, depletion by mining and changes to the mine design in certain areas resulting in higher pillar and mining loss.
• Other areas of Lonmin’s Mineral Reserve were largely unchanged.

A summary of the changes in the Lonmin Mineral Resources and Mineral Reserves are shown in the following tables and should be read in conjunction with the Key Assumptions section of this report. Detailed breakdowns of these Mineral Resources and Mineral Reserves into their respective confidence categories can be found in the sections specific to the individual areas.

PGE Mineral Resources (Total Measured, Indicated & Inferred)^1,4

Footnotes:

1)

All figures are reported on a Lonmin Plc attributable basis, the relative proportions of ownership per project being shown in the Key Assumptions section of this report.

2)

Limpopo excludes Baobab shaft.

3)

Loskop and Denison JV exclude Rh, due to insufficient assays, and therefore 2PGE+Au is reported.

4)

Resources are reported Inclusive of Reserves.

5)

Quantities and grades have been rounded to one or two decimal places, therefore minor computational errors may occur.

PGE Mineral Reserves (Total Proved & Probable)¹

Footnotes:

1)

All figures are reported on a Lonmin Plc attributable basis, the relative proportions of ownership per project being shown in the Key Assumptions section of this report.

2)

Limpopo excludes Baobab shaft.

3)

Quantities have been rounded to one decimal place and grades have been rounded to two decimal places, therefore minor computational errors may occur.

Key assumptions pertaining to the 2011 Lonmin Mineral Resource and Reserve Statement

• Mineral Resources are reported inclusive of Mineral Reserves. Resources that are converted to Reserves are also included in the Mineral Resource statement.
• All quoted Resources and Reserves includes Lonmin’s attributable portion only. There have been no changes in the percentage attributable to Lonmin during the year. The following percentages were applied to the total Mineral Resource and Reserve for each property:

  	Marikana	Limpopo Dwaalkop JV	Limpopo – Baobab Doornvlei, Zebediela	Akanani	Pandora	Loskop	Sudbury PGM
  Lonmin Attributable	82%	41%	82%	74%	34.85%	41%	50%

  • Incwala, Lonmin’s BEE partner, owns 18% of both WPL and EPL, and 26% of Akanani.
  • Limpopo includes Dwaalkop JV which is a Lonmin managed JV between Mvelaphanda Resources Limited (50%) and Western Platinum (50%).
  • Pandora JV: EPL has an attributable interest of 42.5% in the Pandora Joint Venture together with Anglo Platinum (42.5%), Mvelaphanda Resources Limited (7.5%) and the Bapo Ba Mogale Mining Company (7.5%).
  • Loskop JV: WPL has an attributable interest of 50% in the Loskop Joint Venture with Boynton Investments.
  • Sudbury PGM JV – PGE grades are stated as Pt+Pd+Au (3E). Through the JV, Lonmin acquires its pro rata share, currently a nominal 50%, of the product from any PGE deposit developed on the participating properties. The agreement is that Lonmin will be allocated its pro-rata share in PGE’s and Vale will be allocated its pro-rata share in Nickel, Copper, Cobalt, Gold and Silver. The exchange of metals will be governed by prevailing metal prices at the time of the refined metal production.
  • Lonmin has a 49% attributable portion of the Bumbo mineral resource in terms of The West Kenya Earn-in and Joint Venture Agreement between Aviva Corporation Limited and AfriOre International (Barbados) Limited a wholly owned subsidiary of Lonmin Plc.
• Where grades are reported as 3PGE+Au these are a summation of the Platinum, Palladium, Rhodium and Gold grades. Modelling of available assay information, obtained from drillhole core, indicates that the proportion of 3PGE+Au contained in 5PGE+Au, which includes Ruthenium and Iridium, is approximately as follows:

• Where Nickel (Ni) and Copper (Cu) grade estimates are derived from sufficient reliable information for the various Mineral Resources, they are reported as average grades in percent. These grades represent acid soluble proportions. Acid soluble percentages of Ni and Cu are closely correlated to the metals present as sulphide minerals.
• Mineral Resources are reported as “in-situ” tonnes and grade and allow for geological losses such as faults, dykes, potholes and Iron Rich Ultramafic Pegmatite (IRUP).
• Mineral Resources are estimated using a minimum true width of at least 90 cm and therefore may include some diluting material.
• Proved and Probable Mineral Reserves are reported as tonnes and grade expected to be delivered to the mill, are inclusive of diluting materials and allow for losses that may occur when the material is mined.
• Mine tailings dams are excluded from the above Mineral Resource summary. Lonmin is currently evaluating the viability of a retreatment project in respect of its tailings dams and currently intends to exploit these tailings at a future date.
• For economic studies and the determination of pay limits, consideration was made of both short and long term revenue drivers. The following long term global assumptions were used:
  • Precious Metals (per Troy Ounce): Pt USD1,900, Pd USD850, Rh USD2,500, Ru USD200, Ir USD600, Au USD1,500.
  • Base Metals (per metric tonne): Ni USD20,000, Cu USD7,000.
  • Average exchange rate of US$1 to ZAR8.0.
• Dilutions are quoted as waste tonnes / waste + ore tonnes in percent.
• Bumbo Mineral Resources are reported using a cut off grade of 0.7% copper equivalent.
• The copper equivalent formula for Bumbo was based upon commodity prices at the close of the market on 25th July 2011, namely:
  • Copper: USD9633/tonne ($Cu)
  • Zinc: USD2441/tonne ($Zn)
  • Gold: USD1614/ounce ($Au)
  • Silver: USD40/ounce ($Ag)
  • The copper equivalent (CuEq) is as follows:
    CuEq (%) = Cu% + (Zn%*($Zn/100)/($Cu/100)) + (Au g/t*($Au/31.1034768)/($Cu/100)) +(Ag g/t*($Ag/31.1034768)/($Cu/100))
• Unless otherwise stated, the Lonmin Mineral Resources and Reserves estimates were prepared or supervised by various persons employed by Lonmin.

Click here to view Lonmin's Mineral Resources and Reserves statement, as at 30 September 2011.