Highlights                                                                     
-    ConRoast development programme successfully concluded;                    
-    ConRoast established as the solution for platinum industry:  smelts 50 000 tons of PGM concentrates during its development programme;                 
-    ConRoast outperforms the traditional smelting process on treatment of – chrome rich PGM concentrates; and                                          
-    Jubilee now focussed on construction of new commercial-scale ConRoast facility.
                                                                  
Abiel Mgomuzulu (CEO of Mintek) said “The successful conclusion of the research and development phase for the ConRoast smelting solution, affirms Mintek`s   successful track record of forming partnerships with Industry for the development of technologies that provides solutions to the challenges faced by  the Mining and Minerals Industry. Mintek remains committed to this process and will continue with technical support to Jubilee as they commercialise the ConRoast process.”

Colin Bird (CEO of Jubilee) said “Jubilee is delighted that the research and development phase has been successfully concluded.  The ConRoast process has throughout its development phase demonstrated that it is an environmentally friendlier, safer and more efficient processing solution than the traditional matte-collection furnaces for the recovery of platinum group metals from chrome rich concentrates.  To date the demonstration facility at Mintek has achieved  
the necessary results confirming that the ConRoast smelting route is the industry solution for chrome rich concentrates.  We thank Mintek for the support as our technical partner and look forward to our ongoing relationship during and after the commercialisation phase.”

At the end of March, Mintek and Jubilee concluded that the technology development necessary for the first commercial ConRoast smelter has been completed. Consequently, treatment of material in the Mintek facility for      
demonstration purposes ceased at the end of March, so that Jubilee could focus on the commercialisation of ConRoast. Jubilee is well advanced in the establishment of a commercial ConRoast facility. Mintek continues to support the process, and looks forward to seeing the first commercial project being implemented soon.

As part of the conclusion of the research and development programme, Mintek and Jubilee have agreed that ownership of the Braemore-installed demonstration plant at Mintek will pass to Mintek.                                                 

The furnace has been in operation for the past six years, primarily acting as a large-scale demonstration unit for Mintek`s patented ConRoast process, to which Braemore Platinum (Pty) Ltd (“Braemore”), a wholly owned subsidiary of Jubilee,  holds the exclusive worldwide rights. ConRoast is now widely recognised as an  environmentally friendly and safe way of smelting PGM concentrates, especially  for the troublesome high-chromium concentrates emanating from the UG2 Reef that have resulted in a number of furnace failures in the PGM industry over the past few years.

Since October 2007, the enlarged demonstration furnace at Mintek has been treating a wide range of PGM-bearing feed materials on behalf of Braemore. These final trials marked the conclusion of a very successful development period during which ConRoast established itself as the new, safe and environmentally  friendly smelting solution for PGM containing concentrates. Braemore has funded the further development of ConRoast through pilot plant testwork at Mintek and overseas as well as the expansion of the smelting facilities at Mintek. 

Consequently Braemore holds the exclusive rights to ConRoast for the roasting,  smelting and downstream refining of PGM-containing feed materials.Mintek will continue to investigate opportunities to use the facility for a    
combination of further development work, process demonstration, for revenue-generating and training purposes. 

This work will assist in establishing further opportunities for the use of DC-arc furnace technology, especially with regard to facilitating opportunities related to junior and black-economic-empowered entities.

Retail commodity warrants allow investors to access the global commodity market from South Africa. Warrant holders will have the opportunity to make a rand profit from the upward or downward movement in the rand price of platinum. 

Brett Duncan, Director Equity Derivatives at Standard Bank says: “Investor interest in commodities as an asset class is growing steadily. Commodities provide local investors with the opportunity to build wealth on top of physical demand for metals, while also providing for a rand hedge instrument. The newly launched platinum commodity warrants give investors access to reasonably priced assets at higher than average yields.”

To invest in warrants investors pay a small price for the warrant but are exposed to the full value of the underlying asset. A small change in the price of the underlying commodity or exchange rate will therefore result in a greater change in the value of the warrant. The advantage of warrants for retail investors is that losses are limited to the initial purchase price of the warrant. Standard Bank is the only flat rate warrants broker in South Africa.

Duncan says: “The introduction of gold, platinum and oil warrants is aimed at providing for increased demand in commodity instruments. The introduction of these commodity warrants builds on other offerings which will provide investors with further exposure to commodities.”

Leanne Parsons, JSE Chief Operating Officer says: “We are delighted to welcome Standard Bank’s platinum warrant to the exchange. In listing this product, Standard Bank has expanded the number of ways that individuals can gain access to platinum investments. We look forward to working with the bank’s team to welcome more commodity reference warrants to the market in the foreseeable future.” 

For more information on platinum and gold commodity warrants and for educational information on warrants visit www.warrants.co.za

“In addition,” said Lewis, “the transaction provides an opportunity for the diversification of Northam`s shareholder base.   And, after Mvela Resources completes its proposed unbundling, Northam`s free float will increase significantly, improving the liquidity and ease of investing in Northam shares in the market.”

Northam`s current assets comprise the long-life Zondereinde platinum mine near Thabazimbi, which produces some 300,000  ounces of PGMs per annum and as well as the 103 million ounce Booysendal PGM project on the eastern limb of the Bushveld complex.  As a fully integrated producer, Northam is extremely well placed for growth and industry consolidation in the future the firm said.

Work has recently started at the wholly-owned Booysendal project.

The first module of this project is likely to be in full production by August 2014, with output of 130,000 ounces annually, thereby lifting the company`s total PGM production by almost 40% to 430,000 ounces annually.  The project is expected to create more than 1,000 jobs and will have a significant positive impact on a particularly impoverished region of South Africa through employment, skills development, local economic development and corporate social investment.

“Platinum group metals are once again demonstrating their strong fundamentals; less than two years after the massive price slump in mid 2008 platinum is trading at extremely healthy levels well above US$1 600/oz, and palladium at over US$500, further bolstering the Zondereinde mine`s ability to continue to generate cash as it has done over the years in market conditions considerably less robust than we are seeing now.

Lewis concluded: “We will, in due course, be giving shareholders further updates on the Booysendal project.  In the meantime we continue to evaluate various project funding mechanisms which include a number of debt funding options.”

Shares in Northam were up 63c (1.2%) by midday on Monday.

New analysis from Frost & Sullivan, A Strategic Review of South Africa’s Platinum Group Metals Mining Industry, finds that the country’s platinum production declined sharply from the 5,22 million ounces produced in 2007 to 4,53 million ounces in 2008. Output is however expected to climb to an estimated 5,70 million ounces in 2014.

If you are interested in a virtual brochure, which provides a brief synopsis of the research and a table of contents, then send an e-mail to Patrick Cairns, Corporate Communications, at patrick.cairns@frost.com, with your full name, company name, title, telephone number, company e-mail address, company website, city, state and country. Upon receipt of the above information, a brief brochure will be sent to you by e-mail.

“The country’s platinum production will face more declines in the short term due to operational, resource and other constraints,” says Frost & Sullivan Research Analyst Wonder Nyanjowa. “However, the industry is set to experience exceptional growth once the global economy recovers.”

Despite the limited upside potential for platinum prices in the short to medium term, South Africa’s platinum mining industry is poised to enjoy phenomenal growth once the effects of the global economic slow down start lifting.

“South Africa’s platinum mining companies need to position themselves to be able to respond swiftly to changes in the global economy,” advises Nyanjowa. “Although the immediate concern for most executives is securing the future of their companies, it is also important that platinum mining companies are able to respond swiftly to an upturn.”

Frost & Sullivan believes that small and medium-sized platinum mining companies will contribute significantly to South Africa’s platinum production output over the next five years. They will achieve this by entering into strategic alliances with major companies to exploit the resources in their ownership.

One of the most significant challenges facing South Africa’s platinum mining companies is to contribute to government’s efforts towards ensuring sustainable development amongst communities that are affected by mining activities.

“Platinum mining companies in South Africa are facing the need to balance production and cost control targets with managing sophisticated relationships involving the environment, safety, community and stakeholder involvement,” explains Nyanjowa.

A Strategic Review of South Africa’s Platinum Group Metals Mining Industry is part of the Industrial Automation & Process Control Growth Partnership Services programme, which also includes research in the following markets: South Africa’s Gold Mining Industry, South Africa’s Coal Mining Industry and,  Diamond Mining Industry in Central and Southern Africa. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best in class positions in growth, innovation and leadership. The company’s Growth Partnership Service provides the CEO and the CEO’s Growth Team with disciplined research and best practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 35 offices on six continents. To join our Growth Partnership, please visit http://www.frost.com.

The Company has made significant positive progress on its projects and continued production from its newly-expanded ConRoast smelter in South Africa totalled 6,892 platinum group metal (PGM) ounces for the period.

Whilst the unaudited financial results for the six months ended 31 December 2008 have not yet been finalised, the Company anticipates an after-tax loss for this period of £4.40 million (loss per share: 0.56p). This compares with an after-tax loss of £1.015 million for the six months ended 31 December 2007 (loss per share: 0.15p).

Specific events that contributed to the increased expenditure and losses include:

• About 50% of the anticipated after-tax loss can be attributed to the recent settlement of a single old-order contract that may have exposed the Company to market volatility around PGM prices and unfavourable processing terms. This contract has been concluded and replaced by new contracts from both Anglo Platinum Limited (“Anglo Platinum”) and Northam Platinum Limited (“Northam”). The new contracts in place are cash positive, with significantly reduced price exposure.
• The JSE listing completed in July 2008 and the associated legal and compliance expense.
• The decommissioning of the 1.5MW smelter and the subsequent construction and commissioning of the larger 3.2MW ConRoast smelter expansion, as part of the commercialisation of the technology. During this period there was reduced production as the previous smelter was taken offline to replace it with the new smelter. Consequently no production resulted in September 2008 although overheads were still incurred.
• The commitments for the Leinster Nickel Project testwork and reports required by BHP Billiton (BHPB) to conclude the scoping study.
• The acceleration of the research programme to conclude the process flow sheet for the hydrometallurgical refining of the PGM iron alloy.

During this period the Company completed smelting the initial contracted low-grade concentrate through the original 1.5MW furnace. As mentioned above, this old contract has been replaced with newly-contracted material from Anglo Platinum and Northam. Current contracts with Anglo Platinum and Northam are cash positive.

Braemore has also advanced the restructuring of the Company to realise a significant reduction in overhead costs which will flow through into the next reporting period. The cash position of the Company as at the end of the period was £2.54 million. At the end of February the Company’s cash balances were approximately £1.6 million with PGM alloy in-stock valued at £4.1 million.

The Company’s unaudited results for the six months ended 31 December 2008 will be released on SENS and published in the press by 31 March 2009.

Key features

• Improved safety performance
• Significant falls in platinum group metal prices partially offset by a weaker exchange rate
• Lower production at Impala Rustenburg
• Cost increases exacerbated by lower volumes
• Capital expenditure at R3.9 billion
• Cash preservation paramount
• Interim dividend of R1.20 per share

Implats CEO David Brown says “Headline earnings rose 14% to R8.77 per share for the first half of FY2009 despite the extremely challenging market conditions and the enormous change in the pricing environment particularly in the second quarter. However, both production and cost performance were disappointing. Gross platinum production declined by 15% to 878 000 ounces. The lower throughput when combined with ongoing inflationary pressures resulted in unit costs increasing by 37% to R8 681 per platinum ounce excluding share based payments. Including share based payments unit costs increased by 4% to R6 986. In order to preserve cash we have cut our capital expenditure programme by R10 billion to R13 billion in total for the next four years up to 2013. Both the Marula Merensky and the Leeuwkop projects have been deferred until further notice. An interim dividend of R1.20 has been declared, however this was based on the quantum of cash payable rather than on a cover basis. The final dividend will be reviewed in August 2009 and will be reflective of the then market conditions and our view of the short term outlook.”

Market
In the platinum market CY2008 can only be described as a year of two halves, with the first half dominated by supply concerns, driven in part by the Eskom crisis, whilst the second half was victim of the credit crisis. Demand shrank on the back of lower vehicle sales but was offset by lower supplies despite an increase in recycled metal from the Japanese jewellery industry. Palladium demand was also down on a fundamental basis and only purchases by the ETF’s kept the market from further falls. Rhodium was perhaps the biggest victim of its own high price levels and saw significant thrifting and subsequent destocking by the car companies in a move to generate cash, leaving the metal some 90% below its all time high.

Safety
Safety improved across the group both from a fatality and injury perspective. Ensuring a safe and healthy working environment is a key strategic objective for Implats and we are happy to report that the LTIFR improved to 2.85 per million man hours which is an excellent performance within the industry and an all time low for the company. Sadly six of our colleagues lost their lives during the course of work in the first half of this financial year. On behalf of the board and management we extend our sincere condolences to their family and friends.

Operating performance
Platinum production at Impala Platinum was down 10% while unit costs rose by 36% to R8 078 excluding share based payments on the back of the lower volumes and high inflation. Including share based payments unit costs decreased by 4% to R6 118. The poor production performance was due to a lack of focus on on-reef development at third generation shafts and slower than anticipated delivery of our decline projects. A new management structure has been put in place and they have been tasked to increase on-reef development which in turn will flow through to increased face availability and improved grade.

Marula experienced a slower than anticipated ramp up to conventional mining, however full production will still be achieved in FY2011. Despite an extremely challenging operating environment Zimplats continued to deliver outstanding performances in all areas of operation with output increasing by 15% to 47 000 ounces of platinum in matte. Portal 1 is now operational and the development of Portal 4 is on track for completion later this year along with the commissioning of the concentrator. Full production of 180 000 ounces of platinum per annum remains on schedule for FY2010. Mimosa also delivered another sterling performance and production increased by 11%. The plant optimisation project has been completed and steady state production of 100 000 ounces of platinum will be achieved this year. At Two Rivers the ramp up to full mining production has been completed and full production of 120 000 ounces of platinum will be attained this year. Production at IRS declined by 20% on the back of reduced deliveries from Aquarius and autocatalyst recycling activities.

Prospects
CEO David Brown comments that, “The key going forward is to ensure all ounces are profitable, production targets are met and costs are right-sized according to the output. In the current difficult economic environment cash preservation has become our top priority. In the short term the disconnect between customer requirements and market conditions which was felt in the first half of this financial year, has disappeared and together with the weaker pricing environment, will fully impact in the second half. This will be a tough year for Implats, however we are confident that the markets will recover in the medium term and that strong growth will once again reassert itself. We are currently repositioning the group to ensure that we are well placed to take advantage of this upturn.”

This drilling programme forms part of Phase two of the feasibility study that commenced in early 2008.

Highlights
• The drilling programme for Phase two of the feasibility study has now been completed;

• All 13 boreholes intersected the Merensky Reef (MR), (of which 2 intersected pothole facies), at
expected projected depths (from plain elevation), with grades and thicknesses generally in line with
the variability expected for this reef;

• Borehole DT35 intersected high assays in the motherhole MR (10.43 g/t 3PGE + Au) (combined
platinum, palladium, rhodium and gold), 0.35% nickel (Ni) and 0.21% copper (Cu) over 0.99

metres – further results awaited from additional deflection drilling;

• Borehole DT40 intersected MR averaging 3.04 metres thick and assaying 6.71 g/t 3PGE+Au with
0.16% Ni and 0.10% Cu – further deflection results awaited;

• Boreholes DT30 and DT33, intersected specifically targeted UG2 chromitite (UG2) reef at projected
depths with higher than expected grades of up to 7.8g/t 3PGE+Au; and

• Borehole FF01, which tested continuity of MR in the adjacent down dip farm Fernkloof, intersected
MR at approximate target depth (1,597m down hole from collar).

Colin Bird, CEO of Jubilee and Tjate Project Manager said: “These new results continue to confirm the
continuity at depth of the Merensky and UG2 reefs. The lower grades seen in some of the new borehole
results correlate generally with a regional pothole within a lower grade area confined to the northwest of the farm Dsjate. The effect of this area will be considered in the options when delineating the resource and
defining a resource estimate. The drilling programme for the second phase of the feasibility study was
completed this month and the project is now rapidly advancing towards a definitive compliant mineral
resource estimate.”