Afplats

Afplats’ Leeuwkop project and adjacent prospecting right areas are situated about 10km west of Brits on the western limb of the Bushveld Complex. An extensive exploration programme conducted by Afplats intersected both the Merensky and UG2 Reefs. The Merensky Reef occurs about 850m below surface at the southern boundary of Leeuwkop, with the vertical separation between the Merensky and UG2 Reefs averaging 200m. Both reefs dip generally to the north at roughly 9°.

The UG2 Reef comprises a package that is made up of two chromitite layers. The upper chromitite layer is separated from the main chromitite layer by a thin pyroxenite parting. It will be mined as a single package. The Merensky Reef, which is not deemed to be economically viable at present, is the upper portion of a pyroxenite layer, with a chromitite stringer close to the contact with the hanging wall and with the mineralisation decreasing from the chromitite stringer into the hanging wall and footwall.

Afplats holds a mining right which is contiguous to prospecting rights, for a total area of some 9 931ha across the farms Leeuwkop and portions of Hartebeestpoort B, Kareepoortand Wolwekraal west of Brits. In terms of Implats’ acquisition of Afplats announced in February 2007, Implats acquired 100% of Afplats and, by implication, an effective 74% stake in the Leeuwkop project and varying proportions in the associated subsidiaries. The mining right for the Leeuwkop area was awarded in April 2008. The final structure for the so-called Imbasa and Inkosi areas, which comprise several portions of the farm Hartebeestpoort B, had not been finalised at year-end. These are held in subsidiaries with varying BEE partnership shareholdings. The Inkosi prospecting area was amended in February 2009 with the addition of the so-called “Gap area” on the farm Hartebeestpoort B that had previously been excluded.

Given current prevailing market conditions, all work on the Leeuwkop Project has been suspended. The resulting uncertainty led to the downgrade of the Mineral Reserve estimate to the Mineral Resource category.

Notes:

• The figures in the statement above reflect total Mineral Resource and Mineral Reserve estimates for Afplats and related subsidiaries as at 30 June 2009. The corresponding estimated attributable Mineral Resources and Mineral Reserves attributable to Implats are summarised elsewhere in the report.
• Mineral Resources are quoted inclusive of Mineral Reserves
• Implats has chosen not to publish Merensky Reef Mineral Resource estimates as their eventual economic extraction is in doubt at present.
• No Mineral Reserves are quoted given the suspension of the Leeuwkop Project.
• The UG2 grade estimates are based on borehole assay data, which has been expanded through recent prospecting programmes.
• Some 29 boreholes were added and used to re-interpret the geological model. The changes involved an increase in the estimated geological losses for the Inferred Mineral Resources.
• The updated estimate is based on in-house mineral resource modelling using ordinary kriging.
• Given the additional work, selected Mineral Resource areas with a higher level of confidence have been upgraded in terms of their classification.
• The Mineral Resource estimate increased due to the larger Inkosi area included as at 30 June 2009.
• Mineral Resource and Mineral Reserve grades are now also reflected in both 3PGE+Au and 5PGE+Au formats.
• The additional data impacted the estimated individual metal ratios; the updated splits are illustrated in the accompanying graph.
• Rounding-off of numbers may result in minor computational discrepancies.

Note: Mineral Resources are inclusive of Mineral Reserves.

UG2 Mineral Resources and Mineral Reserves

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