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                     REGULATORY  RELEASE        11  May  2015  

2015  Interim  Results    Lonmin  Plc,  (“Lonmin”  or  “the  Company”),  the  world’s  third  largest  primary  platinum  producer,  today  publishes  its  Interim  Results  for  the  period  ended  31  March  2015  and  an  update  on  events  to  today’s  date.    KEY  FEATURES    Highlights:  

o Safety  is  our  number  one  priority  and  we  are  encouraged  to  have  been  fatality  free  for  18  months  o Mining  production  up  72.0%  on  the  strike  impacted  prior  year  period  o Saffy  shaft  production  up  57.9%  on  H1  2013  -­‐  pleasing  performance  in  line  with  ramp  up  programme  o Highest  H1  saleable  metals-­‐in-­‐concentrate  production  since  2007  o PGM  unit  cost  contained  to  R10,516  per  PGM  ounce  against  maintained  full  year  guidance  of  R10,800  o Underlying  EBITDA  of  $8  million  compared  to  $103  million  in  the  prior  year  period  which  excluded  strike  related  

costs  of  $165  million  o Persistently   low  PGM  prices  and   lower  volumes  sold  due  to  the  smelter  outages  have  resulted   in  much  reduced  

revenue,  partially  offset  by  a  weaker  Rand  /  US  Dollar  exchange  rate.  In  order  to  protect  the  long  term  value  of  the  business  we  have  started  the  process  of  reorganising  our  business.  We  are  aiming  for  a  10%  saving  in  labour  cost  through  voluntary  separation  packages  and  early  retirements.  This  may  result  in  a  headcount  reduction  of  around  3,500  people  

 Results:  

o Lonmin   achieved   ten  million   fatality   free   shifts   on   22   April   2015:   a   first   for   the   South   African   Platinum  mining  industry  

o Increase  in  the  rolling  12  month  LTIFR  to  31  March  2015  to  4.51  incidents  per  million  man  hours  compared  to  3.23  at  31  March  2014  –  A  safety  improvement  plan  has  been  developed  to  curb  the  increase  in  injuries  and  potential  accidents  

o Production  momentum  sustained  with  5.7  million  tonnes  produced,  up  72.0%  on  the  prior  year  period  which  was  impacted  by  the  strike  and  broadly  in-­‐line  on  H1  2013  despite  an  increase  in  Section  54  safety  stoppages  

o Continued   flexibility   preserved   with   the   immediately   available   ore   reserve   position   maintained   at   3.9   million  centares,  or  20.5  months  average  production  

o Hossy  turnaround  review  complete.  Production  results  are  encouraging;  8.7%  higher  than  H1  2013  o Saleable   metal   in   concentrate   of   381,984   Platinum   ounces.   Q1   and   Q2   have   been   the   best   two   quarters   in  

succession  since  2007.  This  was  up  77.6%  on  prior  year  period  and  up  4.4%  on  H1  2013  o Smelter  complex  now  fully  operational  -­‐  build-­‐up  of  concentrate  stock  ahead  of  the  smelters  to  be  processed  in  the  

second  half  of  the  year  o Refined  production  of  262,303  Platinum  ounces,  only  2.0%  up  on  the  prior  year  period  due  to  the   impact  of  the  

furnace  shutdowns  during  H1  2015.  Build-­‐up  of  in  process  stock  of  around  200,000  PGM  ounces    o Platinum  sales  of  265,940  ounces  –  up  0.9%  on  the  prior  year  period  

Lonmin Plc 4 Grosvenor Place London SW1X 7YL United Kingdom T: +44 (0)20 7201 6000 F: +44 (0)20 7201 6100 www.lonmin.com

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o Persistently   lower  Dollar  PGM  pricing  environment.  Dollar  basket  price   including  base  metal   revenue  was  down  6.5%  to  $988  per  PGM  ounce  whilst  the  equivalent  Rand  basket  price  of  R11,263  was  1.9%  higher  on  the  back  of  Rand  weakness    

o By  comparison,  unit  costs  have  risen  8.3%  per  annum  since  H1  2013.  Labour   increases  of  12.9%  and  8.8%  in  the  last  two  years  have  been  offset  by  cost  saving  initiatives  (R376  million  to  date  of  the  R600  million  target  over  three  years).  Rand  unit  costs  were  R10,516  per  PGM  ounce  

o Underlying   LBIT   $70  million,   down   from  underlying   EBIT  of   $34  million   in   the  prior   year  period  driven  by   lower  volumes  sold  due  to  smelter  outages  and  the  lower  Platinum  price  

o Capital   expenditure   was   limited   to   $65   million   due   to   proactive   cashflow   management   and   in   reaction   to  persistently  lower  prices  

o Net   debt   of   $282  million,   due   to   disruption   caused   by   the   smelter   shutdowns,  well  within   available   committed  debt   facilities   of   $563   million.   Had   we   had   not   experienced   the   200,000   PGM   ounces   stock   lock   up,   the   net  revenue  from  the  sales  would  have  resulted  in  net  debt  being  around  $170  million  lower.    

 Market  outlook:    

o Long  term  fundamentals  remain  strong  but  we  are  planning  on  the  basis  that  these  low  PGM  prices  will  persist  for  at  least  two  years  

o Improving  automotive  demand  of  3.7%  growth  in  Platinum  is  expected  in  2015  and  jewellery  demand  is  expected  to  remain  at  38%  of  total  platinum  demand  as  its  growth  is  sustained    

Guidance:  o As  a  result  of  the  review  of  our  operating  model  Lonmin  has  entered  into  a  consultation  process  with  stakeholders  

to   reorganise   the  business.  As  well  as  driving  ownership,  empowerment  and  accountability,   the  objective  of   the  resultant   reorganisation   of   the   business   is   to   optimise   efficiencies,   reduce   costs   and   improve   profitability   and  cashflows   at   current  metal   prices.  We   are   consulting   on   a   reduction   in   labour   costs   of   10%   through   voluntary  separation  packages  and  early  retirements,  with  no  short-­‐term  expected  impact  on  production,  which  may  result  in  a  headcount  reduction  of  3,500  people.  We  expect  to  incur  costs  of  around  R400  million  in  the  current  year  and  subsequent  ongoing  annual  value  benefits  of  around  R840  million.  Since  30  September  2014  labour  numbers  have  reduced   by   432   as   at   31   March   2015   and   were   1,128   down   compared   to   31   March   2014.   We   are   in   close  consultation  with  our   unions,   including  our  majority   union  AMCU,   over   this   issue.  We  are   concerned   about   job  losses   but   we   are   encouraged   by   interactions   so   far   that   our   improving   relationships   should   help   all   parties  navigate  this  difficult  issue.  

o We   maintain   guidance   for   saleable   metal-­‐in-­‐concentrate   at   around   750,000   Platinum   ounces   and   for   sales   of  around  730,000  Platinum  ounces  

o We   are   pleased   with   the   cost   savings   achieved   during   this   period.  We   will   maintain   our   unit   cost   guidance   of  R10,800  per  PGM  ounce  for  the  full  year  

o We  are  planning  on  the  basis  that  the  ongoing  low  Dollar  PGM  prices  persist  for  around  two  years  and  as  a  result  we  are  again  reducing  our  expected  capital  expenditure  for  2015  from  $185  million  to  $160  million    

o We  expect  to  continue  to  limit  our  capital  expenditure  over  the  next  two  financial  years  to  around  $150  million  per  annum  whilst  maintaining  sales  of  around  750,000  Platinum  ounces  per  annum  

o Our  level  of  borrowings  was  higher  at  31  March  2015  as  a  direct  result  of  the  lower  sales  volumes  in  H1  which  will  unwind   in   H2.   We   are   confident   of   managing   our   working   capital   requirements   through   cash   conservation  measures  and  capital  discipline  to  keep  borrowings  and  debt  covenants  well  within  our  committed  debt  facilities.  

 Ben   Magara,   Chief   Executive   Officer,   said:   “We   have   continued   to   make   good   progress   in   a   tough   PGM   pricing  environment.   I   am   encouraged   by   our   ongoing   efforts   to  manage   the   controllables   including   the   constructive   dialogue  through  engagement  with  the  unions  to  reduce  costs  including  labour  costs.  We  are  working  well  within  our  debt  facilities  and  this  position  will  improve  further  during  H2  as  stockpiles  unwind.  We  are  doing  all  this  against  a  background  of  fatality-­‐free  operations  although  the  LTIFR  has  increased.  Lonmin’s  operations  and  capital  expenditure  are  scalable.  Consequently  we  have  been,  and  will  continue  to  use  the  operational  and  capital  expenditure  levers  within  our  control  to  reduce  costs  and  preserve  cash  to  navigate  the  effects  of  a  low  PGM  price  environment.”    

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 FINANCIAL  HIGHLIGHTS      

 6  months  to  

31  March  2015  

 6  months  to  

31  March  2014  

       Revenue   $508m     $578m  Underlying  i  EBITDA  ii   $8m     $103m  Underlying  i  operating  (loss)  /  profitiii   $(70)m     $34m  Operating  loss  iii   $(84)m     $(131)m  Underlying  i  (loss)  /profit  before  taxation   $(77)m     $26m  Loss  before  taxation   $(118)m     $(278)m  Underlying  i  (loss)  /  earnings  per  share   (10.5  )c     3.5c  Loss  per  share   (13.6)c     (35.5)c                  Trading  cash  outflow  per  share  iv   (29.3)c     (12.5)c  Unit  cost  of  production  per  PGM  ounce   R10,516/oz     R13,058/oz  Capital  expenditure   $65m     $46m  Free  cash  outflow  per  share  v   (43.8)c     (23.4)c                  Net  (debt)  /  cash  as  defined  by  the  Group  vi   $(282)m     $71m                  Interest  cover  (times)  vii   -­‐     21.0x  Gearing  viii   8%     -­‐            Footnotes:  

i   Underlying  results  and  (loss)  /  earnings  per  share  are  based  on  reported  results  and  (loss)  /  earnings  per  share  excluding  the  effect  of  special  items  as  disclosed  in  note  3  to  the  interim  statements.  

ii   Underlying   EBITDA   is   operating   profit   before   depreciation,   amortisation   and   impairment   of   goodwill,   intangibles   and   property,  plant  and  equipment  excluding  the  effect  of  special  items  as  disclosed  in  note  3  to  the  interim  statements.  

iii   Operating   (loss)   /   profit   is   defined   as   revenue   less   operating   expenses  before   impairment  of   available   for   sale   financial   assets,  finance  income  and  expenses  and  before  share  of  (loss)  /  profit  of  equity  accounted  investments.  

iv   Trading  cash  flow  is  defined  as  cash  flow  from  operating  activities.  

v   Free  cash  flow  is  defined  as  trading  cash  flow  less  capital  expenditure  on  property,  plant  and  equipment  and  intangibles,  proceeds  from  disposal  of  assets  and  dividends  paid  to  non-­‐controlling  interests.  

vi   Net  (debt)  /  cash  as  defined  by  the  Group  comprises  cash  and  cash  equivalents,  bank  overdrafts  repayable  on  demand  and  interest  bearing  loans  and  borrowings  less  unamortised  bank  fees,  unless  the  unamortised  bank  fees  relate  to  undrawn  facilities  in  which  case  they  are  treated  as  other  receivables.  

vii   Interest  cover  is  calculated  for  the  twelve  month  periods  to  31  March  2015  and  31  March  2014  on  the  underlying  operating  profit  divided  by  the  underlying  net  bank  interest  payable  excluding  exchange  differences.  

viii   Gearing  is  calculated  as  the  net  debt  attributable  to  the  Group  divided  by  the  total  of  the  net  debt  attributable  to  the  Group  and  equity  shareholders’  funds.  

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ENQUIRIES    Investors  /  Analysts:  Lonmin  Tanya  Chikanza  (Head  of  Investor  Relations)   +44  207  201  6007/+27  83  391  2859      Media:  Cardew  Group  Anthony  Cardew  /  James  Clark   +44  207  930  0777  Sue  Vey   +27  72  644  9777    Notes  to  editors    Lonmin,  which   is   listed  on  both  the  London  Stock  Exchange  and  the  Johannesburg  Stock  Exchange,   is  one  of  the  world's  largest   primary   producers   of   PGMs.   These   metals   are   essential   for   many   industrial   applications,   especially   catalytic  converters  for  internal  combustion  engine  emissions,  as  well  as  their  widespread  use  in  jewellery.    Lonmin's  operations  are  situated  in  the  Bushveld  Igneous  Complex  in  South  Africa,  where  nearly  80%  of  known  global  PGM  resources  are  located.    The  Company  creates  value  for  shareholders  through  mining,  refining  and  marketing  PGMs  and  has  a  vertically  integrated  operational  structure  -­‐  from  mine  to  market.  Lonmin's  mining  operations  extract  ore  from  which  the  Process  Operations  produces   refined   PGMs   for   delivery   to   customers.   Underpinning   the   operations   is   the   Shared   Services   function   which  provides  high  quality  levels  of  support  and  infrastructure  across  the  operations.    For  further  information  please  visit  our  website:  http://www.lonmin.com    

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 CHIEF  EXECUTIVE  OFFICER’S  REVIEW    1. Introduction    The  six  month  period  to  31  March  2015  was  fatality  free  and  demonstrated  a  strong  performance  from  all  our  operations.  However,   it  was   impacted  by  continued  downward  pressure  on  Dollar  PGM  prices  and   increased  safety  stoppages   in  Q2  (Section   54s).   Saleable   metals-­‐in-­‐concentrate   production   was   the   highest   since   H1   2007.   However,   profitability   was  reduced  as  the  PGM  prices  remained  low  although  this  was  mitigated  by  the  weaker  Rand  and  our  strong  cost  reduction  programme.    Immediate  management  actions:    We  have  a  comprehensive  cost  management  strategy  in  place  designed  to  preserve  cash  and  a  flexible  capital  expenditure  deferral  programme,  based  on  our  capital  allocation  philosophy.  This  enables  us  to  optimise  spend  on  the  most  profitable  ounces  of  production  whilst  preserving  the  long  term  value  of  the  business  through  the  cycle  as  our  operations  and  capital  expenditure  are  scalable.  Consequently  we  have  been,  and  will   continue   to  use   the  operational  and  capital  expenditure  levers  within  our  control  to  reduce  costs  and  preserve  cash  to  navigate  the  effects  of  a  lower  PGM  price  environment  and  we  are  planning  on  the  basis  that  this  lasts  for  at  least  two  years.    We  have   taken   the  necessary  decision,   in   reviewing  our  operating  model,   to   implement  an  efficient  operating  structure  that  will  better  drive  ownership  and  accountability  whilst  empowering  operational  management.  This  has  resulted  in  the  amalgamation   of   layers   of   management   and   reduced   costs   and   may   impact   up   to   3,500   people   through   voluntary  separation  packages  and  early  retirements.  We  are  aware  and  concerned  about  the  socio-­‐economic  effects  of   job   losses  and  we  are   encouraged  by   the   interaction  we  are  having  with   the   relevant   stakeholders.  We  have   to   spend  within  our  means  in  this  low  PGM  price  environment.    In   terms   of   capital   expenditure,  we   reduced   our   capital   expenditure   forecast   for   this   financial   year   in   early   January,   in  response  to  the  suppressed  pricing  environment,  to  $185  million  compared  to  original  guidance  of  $250  million.  We  have  further  scaled  back  our  forecast  expenditure  for  the  current  financial  year  from  $185  million  to  $160  million  in  light  of  the  persisting   low  PGM  prices  whilst  maintaining  platinum   sales   guidance  of   730,000  ounces.  We  have  also   reduced   capital  expenditure   guidance   for   2016   and   2017   financial   years   and  we   expect   to   limit   this   to   around   $150  million   per   annum  whilst  maintaining  annual  sales  of  around  750,000  Platinum  ounces,  optimising  the  use  of  our  healthy  ore  reserve  position.  This  will   result   in  a  delay   in  K4  shaft  and   its  eventual  production  of   replacement  ounces.  We  will   continue  to  assess   the  timing  around  bringing  the  bulk  tailings  project  online.      The   Number   One   and   Two   furnaces   were   shut   down   during   the   period   for   three  months   and   21   days   respectively   for  repairs   and  maintenance.  The  downtime  of   the   furnaces  has   resulted   in  a  build-­‐up   in   concentrate  ahead  of   the   smelter  complex  and  a  delay  in  refined  metal  production  which  impacted  our  short  term  liquidity.  Net  debt  at  31  March  2015  was  $282  million  and  was  well  within  our  bank  debt  facilities.  Had  we  had  not  experienced  the  200,000  PGM  ounces  stock  lock  up,  the  net  revenue  from  the  sales  would  have  resulted   in  net  debt  being  around  $170  million   lower.  Sales  for  2015  are  anticipated  to  be  back-­‐end  loaded  and  the  debt  position  is  expected  to  unwind  in  the  second  half  of  the  financial  year  as  our  stock  levels  reduce.  This  combined  with  our  cash  conservation  measures  and  capital  discipline,  gives  us  confidence  that  we  continue  to  manage  the  business  within  our  debt  covenants  and  within  our  committed  debt  facilities.    Key  achievements:  

• Lonmin  has  been  fatality  free  for  eighteen  months.  

• Our  mining  operations  achieved  ten  million  fatality  free  shifts  on  22  April  2015,  making  us  the  first  South  African  mining  company  to  achieve  this.  

• We  mined  5.7  million  tonnes  during  the  period,  up  72.0%  from  the  prior  year  period  which  was  impacted  by  the  strike.  This  was  2.7%  lower  than  H1  2013  due  to  the  depletion  of  the  old  shafts  and  opencast  mining.  

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• Pleasing  progress  with  the  Saffy  ramp  up  where  production  was  up  57.9%  on  H1  2013  and  we  are  on  track  to  reach  full  production  by  the  end  of  the  financial  year.  

• We  have   completed   the   review  of  Hossy.   The  production  output   and  efficiencies   identified   at  Hossy  have  been  encouraging   and   we   are   pleased   with   its   progress.   We   will   continue   to   operate   Hossy,   and   integrate   the  management  team  of  this  shaft  with  that  of  Newman  in  order  to  maximise  on  economies  of  scale  and  reduce  the  overall  costs.  

• We  delivered  381,984  ounces  of  Platinum-­‐in-­‐concentrate,  up  77.6%  from  the  prior  year  period.    

• We  achieved  a  unit   cost  of  production  of  R10,516  per  PGM  ounce,  2.6%  below  our  annual  guidance  of  R10,800  demonstrating   the   progress   we   are   making   with   our   review   of   the   operating   model   and   continued   cost  conservation  drive  despite  production  bottlenecks  due  to  the  smelter  downtime.  Our  unit  cost  is  19.5%  lower  than  R13,058  in  the  prior  year  period  which  was  impacted  by  the  strike  and  a  compound  annual  increase  rate  of  8.34%  since  H1  2013  despite  two  years  of  labour  increases  of  12.9%  and  8.8%.  

 Challenges:  

• The  depressed  PGM  pricing  environment  continued.  

• We  need  to  continue  to  keep  costs  in  check.  

• Both   the   Number   One   and   Number   Two   Furnaces   were   shut   down   during   the   period   creating   a   build-­‐up   of  concentrate  ahead  of  the  smelters  which  is  anticipated  to  be  processed  in  the  second  half  of  the  year.  As  a  result  Platinum  sales  were  265,940  ounces,  only  0.9%  higher  than  the  strike  impacted  prior  year  period.    

 2. Safety    Lonmin  has  been  fatality  free  for  eighteen  months.    Our  rolling  twelve  month  average  Lost  Time  Injury  Frequency  Rate  (LTIFR)  to  31  March  2015,  worsened  to  4.51  incidents  per  million  man  hours,  compared  to  3.23  at  31  March  2014  which  reflected  the  reduced  hours  of  work  as  a  result  of  the  strike.  Additionally  the  physical  health  of  our  employees  seems  to  be  deteriorating  and  managing  fatigue  since  the  ramp  up  has  been  challenging.  To  curb  the   increase   in   lost  time  injuries  and  high  potential   incidents  an  updated  and  focussed  Safety  Improvement  Plan  has  been  developed.    3. Production  Performance      Our  mining   and  milling   performance   in   the   first   half   of   the   2015   financial   year   increased   significantly   on   the  prior   year  period  which  was   impacted  by  the  strike.  Refined  production  was  negatively   impacted  by  the  shutdowns  of  the  Number  One  and  Number  Two   furnaces  during  Q2.  Both   furnaces  were  back  online  before   the  end  of   the  period  and  producing  steadily  by  mid-­‐March.  The  build-­‐up  of  concentrate  stock  is  expected  to  unwind  by  the  financial  year  end.    Mining  Operations    Total   tonnes  mined  during   the  half   year   of   5.7  million,   showed  an   increase  of   72.0%  when   compared   to   the  prior   year  period  of  3.3  million  tonnes  which  was  impacted  by  the  strike.   In  comparison  to  H1  2013,  tonnes  mined  were  only  2.7%  lower  despite  the  lower  production  from  our  four  shafts  in  end  of  lifecycle  management  including  the  depleting  opencast  operations.  The  Marikana  underground  mining  operations  produced  5.3  million  tonnes  during  the  half  year,  an  increase  of  2.3  million  tonnes,  or  76.4%  on  the  prior  year  period  as  the  strike  impacted  all  underground  shafts  in  the  prior  year  period.  This  was   in-­‐line  with  H1   2013  Marikana   underground   production   of   5.3  million   tonnes   in   spite   of   increased   Section   54  safety  stoppages  in  2015.    Saffy  shaft  produced  830,000   tonnes   in   the  period  compared  with  387,000  tonnes   in  H1  2014   (up  114.4%)  and  526,000  tonnes  in  H1  2013  (up  57.9%).  The  ramp  up  has  resulted  in  the  cost  per  PGM  ounce  in  H1  2015  of  R7,077.  Reassuringly  this  was  16.7%  lower  than  H1  2013  despite  increases  in  labour  costs  and  CPI  of  19.2%  across  the  same  period.  We  are  pleased  that  Saffy   is  ramping  up  as  expected.  The  ramp  up   is  on  schedule  to  reach  full  production  by  the  end  of  the  year  with  a  

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further   two   crews   in   place   for   the   second   half   of   the   year.   An   additional   production   manager   has   been   deployed   to  strengthen  the  operational  team.    The  review  of  Hossy  shaft  has  been  completed.  Hossy  shaft  produced  533,000  tonnes  in  the  period  compared  with  295,000  tonnes   in   H1   2014   (up   81.1%)   and   491,000   tonnes   in   H1   2013   (up   8.7%)   as   a   direct   result   of   reducing   the   number   of  mechanised  fleets  and  moving  over  to  hybrid  mining.  The  cost  per  PGM  ounce  for  H1  2015  at  R7,643  was  12.8%  higher  than  H1  2013  which  is  pleasing  given  the  17.2%  increase  in  labour  costs  and  CPI  across  the  same  period.  Given  the  steady  improvement  we  will   continue   to  operate  Hossy  and   integrate   the  management   infrastructure  of   this   shaft  with   that  of  Newman   in   order   to   maximise   on   economies   of   scale   and   reduce   the   overall   costs.   We   are   now   replacing   the   last  mechanised   fleets  with  hybrid  crews  which  will   result   in   further  production   improvements  and  reduced  operating  costs.  Cost  containment  initiatives  at  Hossy  are  part  of  our  Total  Cost  of  Ownership  project  that  are  tracked  monthly  and  we  are  pleased  with  the  progress  made.    Production  from  our  Merensky  opencast  operations  of  108,000  tonnes  was  30.3%  lower  than  the  prior  year  period  as  this  operation   is   nearing   the   end   of   its   life.   Production   in   the   prior   period   continued   during   the   strike   as   this   operation   is  operated  by  contractors.    Pandora  (100%)  production  of  310,000  increased  by  154,000  tonnes,  or  98.8%  on  the  prior  year  period  due  to  the  impact  of  the  strike  in  the  prior  year.  This  was  an  increase  of  18.0%  on  H1  2013  as  the  mining  footprint  of  this  shaft  was  extended  by  another  two  levels.    Ore  reserve  development  The   reserve   position   remains   healthy   such   that   our   immediately   available   ore   reserves   at  Marikana   at   the   end   of   the  period,  were  3.9  million  centares  comprising  2.6  million  centares  of  UG2  and  1.3  million  centares  of  Merensky.  This  level  of  ore  reserves  represents  20.5  months  at  average  production  and  provides  operational  flexibility,  18.4  months  of  UG2  and  25.9  months  of  Merensky.    Tonnes  lost  due  to  management  induced  safety  stoppages,  increased  Section  54  safety  stoppages  and  industrial  action  at  0.3  million  tonnes  were  lower  than  the  prior  year  period  but  were  0.1  million  tonnes  higher  than  H1  2013.  We  continue  to  focus  on  safety  training  and  rebuilding  relationships.  In  total,  301,000  tonnes  of  underground  production  were  lost  during  the   half   year,   of  which   229,000   tonnes   related   to   Section   54   safety   stoppages,   56,000   tonnes   to  management   induced  safety  stoppages  (MISS)  and  16,000  tonnes  were  lost  due  to  industrial  action.  This  compared  to  a  total  of  2,806,000  tonnes  lost  in  the  prior  year  period  of  which  2,592,000  were  lost  due  to  industrial  action,  191,000  tonnes  were  due  to  Section  54  safety  stoppages  and  23,000  tonnes  were  due  to  MISS.       H1  2015   H1  2014   H1  2013  Section  54s   229,000   191,000   101,000  Management  Induced  Safety  Stoppages   56,000   23,000   40,000  Industrial  action   16,000   2,592,000   79,000  Total  tonnes  lost   301,000   2,806,000   220,000      Process  Operations    Concentrators  We  continued  to  operate  six  out  of  our  seven  Marikana  concentrators  demonstrating  our  ability  to  scale  our  operations  as  required.  Total   tonnes  milled   in   the  half  year  period  at  6.0  million   tonnes  were   the  highest   since  H1  2008.  This  was  2.7  million   tonnes,   or   78.7%   higher   than   the   prior   year   period   as   the   concentrating   operations  were   also   impacted   by   the  strike  Action  and   shut  down   from  23   January  2014.  Compared   to  H1  2013   tonnes  milled  were  up  5.3%   in-­‐line  with  our  continuous  improvement  efforts.  The  impact  on  tonnes  milled  due  to  load  shedding  was  a  reduction  of  33,000  tonnes.    Underground  milled  head  grade  decreased  slightly  by  0.6%  to  4.57  grammes  per  tonne  compared  to  the  prior  year  period  due  to  the  mix  of  ore  milled.  Overall  the  milled  head  grade  was  4.52  grammes  per  tonne,  up  0.3%  on  the  prior  year  period  at  4.50  grammes  per  tonne  due  the  decrease  in  lower  grade  opencast  ore  in  the  mix.  

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 Underground  and  overall  concentrator  recoveries  for  the  half  year  at  87.0%  continue  to  be  industry  leading.    Total  Platinum-­‐in-­‐concentrate  for  the  period  under  review  at  381,984  saleable  ounces  was  the  highest  since  H1  2007.  This  was  77.6%  higher  than  the  prior  year  period  as  a  result  of  the  strike  related  shut  down  in  the  prior  year.    Smelters  and  Refineries  The  Number  One  furnace  was  safely  stopped  in  early  December  following  the  detection  of  a  leak.  Repairs  to  this  furnace  and  the  additional  maintenance  work  that  was  brought   forward  was  completed  within  the  scheduled  three  months  and  first  matte  was   successfully   tapped   on   9  March   2015.   The  Number   Two   furnace  was   also   safely   stopped   at   the   end   of  December   following   the  detection  of  electrode  breaks.   The   repairs   to   this   furnace  were  made   successfully   and   the   first  matte   tap  was   in   January.   The   three   smaller   Pyromet   furnaces  were   restarted   in   early   December   to   increase   smelting  capacity  during  this  time  and  will  continue  to  provide  smelting  capacity  throughout  the  year  as  the  Number  Two  furnace  is  planned  to  be  taken  down  later  this  year  to  replace  the  refractory  bricks  and  to   implement  design  upgrades  on  the  roof  and  off-­‐gas  system.  We  expect  to  process  the  current  build-­‐up  of  concentrate  by  the  end  of  the  year.      As   a   result,   total   refined   production   for   the   period   at   262,303   ounces   of   saleable   Platinum   was   up   only   2.0%   when  compared  against  the  prior  year  period.  PGMs  produced  in  the  half  year  were  501,456  ounces,  representing  a  decrease  of  7.7%  on  the  prior  year  period  as  toll  returns  of  other  precious  metals  were  not  significantly  impacted  by  the  strike  in  the  prior  year  period.      Platinum  sales   for   the  half  year  at  265,940  ounces  were  slightly  up  on  the  prior  year  period   (up  0.9%),  and  the  514,747  PGM  ounces  achieved  during  the  period,  were  6.0%  lower  than  the  prior  year  period.    Production   statistics   for   Quarter   Two   of   the   year   can   be   found   in   a   separate   announcement   published   today   or   on   the  Company’s  website:  www.lonmin.com.    4. Value  Benefits  –  Update  on  progress  with  >R2  billion  over  three  years    We  are  making  good  progress  towards  delivering  greater  than  R2  billion  sustainable  value  benefits  over  three  years  (2015-­‐2017).      Operating  Model  Cost  Savings  As  part  of  our  cost  reduction  strategy,  we  are  reorganising  our  operating  structure  in  addition  to  enhancing  responsibility  and  direct  line  of  sight  by  enabling  quick  decision  making  and  driving  accountability  in  both  the  operational  and  functional  areas.  This  will  result  in  the  amalgamation  of  management  layers  across  the  operations.  We  are  in  close  consultation  with  our  unions,  including  our  majority  union  AMCU,  and  other  stakeholders.    The   review   of   our   contractor   model;   redeployment   of   employees   and   contractors;   freezing   general   recruitment;   and  natural  attrition  has  resulted   in   identified  cost  savings  of  R292  million.  Total  cost  of  ownership   initiatives  has  resulted   in  cost  savings  of  R84  million  to  date.  This  is  ahead  of  schedule  and  is  driving  lower  unit  costs  in  2015  than  anticipated.  The  target  for  this  is  R600  million  over  three  years.      Lonmin   has   achieved   a   headcount   reduction   of   1,128   since   March   2014   of   which   914   were   contractors.   Contractor  headcount   has   reduced   by   618   since   September   2014   whilst   employee   numbers   have   only   increased   by   186,   a   net  reduction  in  headcount  of  432  in  the  half  year  period.  A  total  of  1,430  employees  have  been  redeployed  from  general  to  non-­‐production  crews  and  398  to  K4  without  recruitment.    Productivity  and  Efficiencies  Productivity  at  our  Generation  Two  shafts  (K3,  Rowland,  4B/1B,  Saffy,  Hossy  and  Newman)  in  H1  2015  is  not  comparable  to  the  prior  year  period  due  to  the  strike  in  2014  but  was  in  line  with  H1  2013  at  5.6  square  metres  per  man.  Productivity  at  Saffy   increased   by   18%   compared   to  H1   2013   as  we   progress   in   our   ramp   up   at   this   shaft.   Section   54s   have   adversely  affected  our  productivity  efforts  especially  at  K3  shaft.  Our  Generation  Two  shafts  contribute  90%  of  production.  

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 Productivity  at  our  Generation  One  shafts  (E1,  E2,  E3  and  W1)  at  4.4  metres  squared  per  man  was  14%  lower  than  H1  2013  driven  by  a  52%  decline  at  E1  as  this  shaft   is  at  the  end  of   its   lifecycle.  Our  E1  and  E2  shafts  are  being  converted  to  ore  purchase  agreements  with  contract  mining  to  extract  further  value.  This  has  largely  been  completed  at  our  W1  shaft.  We  will  maintain  management  oversight  to  ensure  compliance  to  safety  and  other  relevant  standards.      We  are  pleased   to  have   largely  maintained   the  production  momentum  achieved  after   the   five  month   strike.   In   spite  of  Lonmin’s  health  and  wellness  programme,  the  health  of  our  employees  has  deteriorated  and  managing  the  physical  and  mental  fatigue  of  our  employees  is  an  increasing  challenge.      Process  Operations    As  part  of  our  strategy,  we  identified  benefits  from  reducing  metals  in  pipeline.  The  reduction  in  metals  in  process  pipeline  was  anticipated  to  be  phased  over  2016  and  2017  financials  years.  It  has  not  been  possible  to  bring  this  forward  due  to  the  impact  of  the  smelter  downtime  in  H1.    5. Profitability    The  Rand  basket  price  including  base  metal  revenue  in  the  first  half  of  the  year  averaged  R11,263  per  PGM  ounce.  This  was  1.9%  higher  than  the  prior  year  period  but  6.5%  lower  in  Dollar  terms.  The  cost  of  production  for  the  period  was  a  pleasing  R10,516  per  PGM  ounce,  19.5%  lower  than  the  prior  year  period.  The  low  metal  prices  and  constraints  around  our  smelting  operations  have  negatively  impacted  profitability  although  the  weaker  Rand  has  partially  off-­‐set  the  lower  Dollar  prices  as  our  cost  base  is  predominately  Rand  based.  As  a  result  underlying  EBITDA  was  $8  million  compared  to  $103  million  in  the  prior  year  period  when  idle  costs  of  production  during  the  strike  amounting  to  $165  million  were  treated  as  special  costs  and  excluded  from  underlying  EBITDA.    Unit  costs  in  our  smelting  and  refining  operations  are  expected  to  reduce  in  the  second  half  of  the  year  as  we  process  the  build-­‐up   of   stock.   However,   should   the   rise   in   Section   54   safety   stoppages   that   we   have   seen   in   the   last   few  months  continue,  the  resultant  lower  mining  volumes  would  negatively  impact  unit  costs.      6. Balance  Sheet  Management    Net  Debt  The  impact  of  the  smelter  shut  downs  and  low  PGM  prices  has  resulted  in  net  debt  of  $282  at  31  March  2015  compared  to  $29  million  at  30  September  2014.  This   is  well  within  the  $563  million  debt  facilities  of  the  Group  and  would  have  been  some  $170  million  lower  had  the  stock  build-­‐up  not  occurred.  We  have  sufficient  furnace  capacity  with  our  Number  One,  Number  Two  and   three  Pyromet   furnaces   to  process   the  build-­‐up   in   concentrate   in   the   second  half  of   the  year  and  we  anticipate  that  our  stock  levels  will  unwind  from  $496  million  at  31  March  2015.      Capital  Expenditure  During  Q1  as  low  prices  persisted,  we  scaled  back  our  2015  capital  expenditure  guidance  from  $250  million  to  $185  million  using  our  capital  ranking  process.  This  is  in  line  with  our  strategy  to  fund  capital  expenditure  from  cash  flows  generated  by  the  business.  At  the  concentrators  the  bulk  tailings  treatment  project  was  consequently  deferred  as  were  non-­‐critical  path  items  at   some  shafts.  We  continue   to  monitor  our  capital  expenditure  and  are   further   reducing  our  capital  expenditure  guidance   to  $160  million.  At  K4  we  are  utilising  excess   labour   from  capital  areas  at  other   shafts   to   support   the  start-­‐up  plan.      Capital  spend  in  the  half  year  was  $65  million  compared  to  $46  million  in  the  prior  year  period.  Capital  expenditure  in  the  first  six  months  was  mainly  on  stay  in  business  capital  across  the  various  shafts  and  processing  facilities,  development  of  ore  reserves  at  K3,  Rowland  and  Saffy  shafts  as  well  as  critical  ore  pass  rehabilitation  work  on  K4  and  the  furnace  rebuilds  which  cost  $8  million.  The  hostel  conversion  programme  was  completed   in  Q1  and  the  hostel   infill  project   is  planned  to  commence   in   the   second   half   of   the   year   as   these   are   an   important   part   of   improving   the   living   conditions   of   our  employees.    

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Summary  of  Capital  Expenditure:         6  months  to  

31  Mar  2014  6  months  to  31  Mar  2015  

  12  months  to  30  Sep  2015  

12  months  to    30  Sep  2015  

        Original  Guidance   Revised  Guidance              

K3   10   11     28   22  Rowland   5   10     30   20  K4   5   9     14   25  Hossy   5   6     11   9  Saffy   6   5     15   9  Other  Mining   5   4     38   13              

Total  Mining   36   45     136   98              

Concentrators   5   4     62   22  Smelting  &  Refining   3   12     33   29              

Total  Process   8   16     95   51              

Hostel  Conversion  /  Infill  Apartments   2   3     12   8  Other   0   1     7   3              

Total   46   65     250   160      7. Eskom    The   impact   of   load   shedding   by   Eskom   during   the   period   did   not   have   a   significant   impact   on   Lonmin’s   operations   as,  unlike   others,   our   mines   are   not   deep   enough   to   require   air   refrigeration   or   significant   water   pumping   from   mining  operations.  Lonmin  is  part  of  the  Energy  Intensive  User  Group  (EIUG)  having  constant  communication  with  Eskom.  When  Eskom   requires   its   large   industrial   customers   to   reduce   power   the   constraints   are   well  managed   by   Lonmin   to   ensure  minimal  impact  on  production.  Our  strategy  is  to  preserve  mining  production  and  also  keep  smelter  power  stable.  To  effect  the  required  reduction  in  power  consumption  a  concentrator  stream  or  two  are  shut  down  and  the  downtime  can  be  used  for   opportunistic   maintenance.   In   H1   2015   the   reduction   in   tonnes   milled   due   to   load   shedding   was   33,000   tonnes.  Electricity  represents  around  6%  of  the  total  Lonmin  cost  base.  Multi-­‐year  price   increases  are  controlled  by  the  National  Energy   Regulator   South   Africa   which   granted   8%   increases   for   2014-­‐2018   although   recently   uplifted   the   2015   price  increase   to   13%.   The   Medupi   coal   fired   power   station   coming   online   has   the   potential   to   ease   problems   as   the   six  individual   units   are   brought   on-­‐line.   Eskom   has   reported   that   it   anticipates   the   first   600   MW   unit   to   be   online   from  October-­‐November  2015.    8. Our  People  and  Corporate  Citizenship  Agenda    The  Way  We  Work    Lonmin   has   embarked   on   a   journey   to   make   a   step   change   in   our   work   place   environment   in   which   employees   and  communities  are  empowered  to  create  the  shared  value  that  is  so  vital  to  our  collective  future.  This  is  especially  critical  in  the  current  operating  environment  and   in  an   industry  which   is  already  experiencing  enormous  structural  pressures.  The  challenge   is   to  be   able   to  perform  effectively   in   the  prevailing  market   and  workplace   conditions,   but   also   to  be  nimble  enough  to  take  advantage  of  opportunities  when  the  cycle  turns.      Completion  of  Black  Economic  Empowerment  Transaction  and  Achieving  26%  Effective  BEE  Equity  As  announced  on  26  November  2014,  we  successfully  completed  the  three  BEE  transactions  in  the  period  thus  achieving  the  target  of  26%  BEE  ownership  in  line  with  the  requirements  of  the  Mining  Charter.  Through  an  Employee  Profit  Share  Scheme  our  employees  hold  3.8%  which  was  launched  in  October  2014  after  consultation  with  the  majority  union  AMCU  on   the   structure   of   the   Scheme.   The   local   communities   on   the  western   portion   of   our  Marikana   operations   hold   0.9%  

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through   a   Community   Share   Ownership   Trust.   The   Bapo   ba   Mogale   traditional   Community   holds   3.3%.   Achieving   this  target   is  also  aligned  to  the  commitment  and  values   to  support   the   improvement  and  development  of   the  communities  where  we  operate  and  align  the  interests  of  employees  and  host  communities  with  those  of  shareholders.    Once  Empowered  Always  Empowered  (OEAE)  Principle  The  historical  “Once  Empowered  Always  Empowered”  principle  is  a  subject  of  legal  clarity  involving  the  Chamber  of  Mines  on  behalf  of  the  industry  and  the  South  African  Government’s  Department  of  Minerals  and  Resources.  Lonmin  replaced  its  original  BEE  partners  for  value  with  another  BEE  partner  and  our  BEE  equity  ownership  is  at  26%.    Relationship  Building  -­‐  Unions  and  Employees    Relationship  building  programme    Much  progress  has  been  made  with  our  relationship  building  programme  which  we  actively  work  together  with  AMCU  as  the  majority  union  and  other  minority  unions.  All  shafts  have  successfully  completed  the  first  phase  of  the  programme.  We  are  also  tracking  the  work  done  by  all  the  union  engagement  structures.    AMCU  remains  the  majority  union  with  an  overall  membership  of  75%  and  with  86%  in  respect  of  category  4-­‐9  employees.  NUM  membership  has  declined  from  8%  to  7%.  The  non-­‐unionised  employee  population  has  increased  by  one  percent  to  11%  after  being  steady  for  the  past  3  months  at  10%  and  the  balance  is  held  by  UASA  and  Solidarity.    Completion  of  2014  wage  agreement  process  and  preparations  2016  wage  negotiations  The  third  year  wage  increase,  as  agreed  in  2014,  will  take  effect  on  1  July  2015  and  result  in  labour  cost  increase  of  8.2%.  During  the  2014  wage  negotiations  we  agreed  to  establish  joint  task  teams  comprising  of  Lonmin  management  and  unions  to  address  core   focus  areas  outlined   in   the  wage  agreement  signed,   in  preparation   for   the  2016  wage  negotiations.  We  have  signed  the  terms  of  reference  for  the  task  teams  with  the  majority  union  (AMCU).  The  remit  of  the  joint  task  teams  include  broader   stakeholder  engagement   in-­‐line  with   the   generic  processes  of   consultation  and   social   dialogue  and  will  cover   amongst   others,   productivity   improvements,   housing   and   living   conditions,   employee   indebtedness,   skills  development  and  shareholding  and  profit  sharing.    Bapo  ba  Mogale  Community  -­‐  Procurement  Benefits  and  Skills  Upliftment  The  Bapo  ba  Mogale  Traditional  Community  is  a  key  shareholder  in  Lonmin.  The  BEE  deal  described  above  is  designed  to  share  the  value  created  by  this  Company  and  to  assist  in  building  our  host  Community.  The  value  that  accrues  to  the  Bapo  community  should  make  a  real  difference  to  their   lives  and  help  to   improve  living  conditions  and  provide  Lonmin  with  a  stable  and  peaceful  operating  environment  which  is  key  to  running  the  business.    As  an  integral  part  of  the  transaction,  Lonmin  committed  to  provide  preferential  procurement  opportunities  to  members  of   the  Bapo  community  of  at   least  R200  million  over  an   initial  18-­‐month  period.  The   first   such  contract  was   finalised   in  March  2015  involving  the  supply  of  equipment  to  move  ore  between  shafts.  Some  200  Bapo  community  members  received  training   to   fulfil   this   contract.   In   anticipation   of   further   contracts   being   awarded,   Lonmin   is   working   with   the   Bapo  community  to  assist  with  their  financial  planning  and  business  management  skills,  so  that  they  are  able  to  compete  for  the  tenders.      Building  a  Shared  Future  with  Communities  We  engage  in  a  range  of  activities  and  initiatives  aimed  at  improving  the  quality  of  life  of  our  employees,  their  families  and  our   communities.   These   projects   are   being   driven   through   a   structured   stakeholder   management   process.   Monthly  meetings  are  held  with  ward  counsellors  who  represent  the  community  and  information  is  shared  with  them  which  in  turn  is   shared  with   community  members.   There   is   ongoing   engagement   between   Lonmin   and   community   leaders   to   ensure  alignment  on  the  safety  and  sustainability  issues  that  affect  Lonmin  and  the  community.      Lonmin  views  education  and  skills  development  as  a  long-­‐term  investment  which  benefits,  supports  and  carries  the  learner  through  the  whole  education  value  chain  to  create  employable  and  skilled  individuals.  We  are  proud  that  four  out  of  our  seven  schools  in  our  greater  Lonmin  community  achieved  matric  pass  rates  of  greater  than  92  per  cent.  Education  is  key  and  to  that  end  we  have  22,500  learners  enrolled  in  our  GLC  schools  compared  to  18,500  in  2013.  Additional  classrooms  have  been  built  and  educator  training  projects  are  underway.  

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 Lonmin  continues  to  invest  in  socio-­‐economic  development  projects  that  are  aligned  to  enterprise  and  skills  development,  education   development,   community   health   and   social   infrastructure,   including   housing.   Expenditure   on   socio-­‐economic  development   for   2015   is   expected   to   be   R88   million,   compared   to   R57   million   in   2014   excluding   housing.   Lonmin   is  encouraged   by   the   growing   collaboration   with   all   stakeholders   as   part   of   the   Presidential   package   in   addressing   the  Marikana  model  development.  Lonmin  is  committed  to  contribute  and  play  its  part.    9. Shanduka    In  2010,  Shanduka  acquired  50.03%  of   the   shares   in   Incwala  Resources  Proprietary  Limited  which  was  part   funded  by  a  loan  provided  by  Lonmin  and  which  was  subsequently  restructured  into  a  preference  share  structure  comprising  A  and  B  class  preference  shares  with  the  key  terms  of  the  preference  shares  including  repayment  provisions,  mirroring  the  loan.  At  31  March   2015,   the   carrying   value   of   the   Shanduka   receivable   in   our   balance   sheet   was   $310  million.   The   preference  shares  are  redeemable  at  any  time  on  or  after  8  July  2015  at  Lonmin's  request.  If  the  preference  shares  are  not  redeemed  at   this   time   the   interest   rate   increases  by  2.5%.   It   is  not  our  current   intention   to   request   redemption  of   the  preference  shares  on  8  July  2015.   10. Limpopo    In  2011,  Lonmin  and  Shanduka  entered  into  a  conditional  share  subscription  agreement  with  a  view  to  Shanduka  carrying  out   a   feasibility   study   to   assess   the   viability   of   it   operating   and   developing   Lonmin’s   Limpopo   operations.   Assuming   a  successful   outcome   of   the   feasibility   study,   the   agreement   contemplated   Shanduka   raising   the   necessary   funds   to  subscribe  for  50%  plus  one  share  in  the  issued  share  capital  of  Messina  Platinum  Mines  Limited  (MPML),  thereby  acquiring  control  of  Lonmin’s  Limpopo  operations.    Various  conditions  precedent  were  required  to  be  fulfilled  prior  to  Shanduka  subscribing  for  a  majority  of  shares  in  MPML,  including  completion  of  due  diligence  exercises,  a  feasibility  study,  Shanduka  raising  the  necessary  capital  and  the  parties  obtaining  necessary   regulatory   approvals.  Given  market   conditions   the   two  parties  have  mutually   agreed   to  extend   the  date  for  the  completion  of  this  proposed  transaction  to  30  April  2016.    11. PGM  Market  Overview    Platinum   Group   Metals   (PGMs)   enjoy   strength   in   the   diversity   of   their   markets,   both   by   end-­‐use   and   by   region.  Autocatalysts   remained   the   leading   market   overall   for   the   PGMs   during   the   period   under   review,   supported   by   the  imperative   for   ever-­‐cleaner   air   in   both   developed   and   emerging  markets   and   the   desire   for   personal   transport.  While  alternative   powertrains   (which   do   not   need   autocatalysts)   are   developing,   the   internal   combustion   engine   looks   set   to  dominate   the   foreseeable   future.   Platinum   jewellery   demand  has   grown   to   almost   equal   that   of   autocatalysts,   and  our  marketing   initiatives   continue   to   grow  demand   in   new   regions.   This   year   has   seen   the  use   for   platinum,  palladium  and  rhodium   in   the   manufacture   of   bulk   chemicals   continue   to   grow.   Despite   the   prevailing   economic   uncertainty,   we  anticipate   slow   platinum  demand   growth   over   the   next   few   years.   As   the   level   of   above-­‐ground   stocks   falls  we   expect  metal   prices   to   appreciate.  Many  mining  projects   in   South  Africa,   the  main   source  of   global   primary   supply,   have  been  delayed  or  mothballed  since  2008/2009  and  given  the  number  of  old  high  cost  mines  with  “for  sale”  signs,  it  is  unlikely  that  supply  from  SA  will  grow  in  the  next  five  years.      Automotive  Production  –  global  growth  trajectory  supports  PGM  demand    Total  global  vehicle  production  rose  by  2.0%  (1.8  million  units)  in  2014  to  87  million  compared  to  2013.  Output  was  up  by  3.5%   in  Western  Europe,   4.1%   in   the  US  and  6.5%   in  China.  Global   light   vehicle  manufacture   in   2014  has   recovered  by  some  27  million  units  from  the  low  in  2009  and  was  some  16  million  units  up  on  the  previous  high  of  2007.  Going  forward,  annual  light  vehicle  production  is  expected  to  grow  from  90  million  units  a  year  in  2015  to  122  million  units  a  year  in  2025.    Autocatalyst  PGM  Demand  –  driven  by  auto  sales  and  emissions  legislation    Platinum  demand  is  driven  by  Europe  and  India,  whilst  palladium  is  reliant  on  demand  from  China  and  the  US.  The  use  of  rhodium  is  more  globally  diversified.  Diesel  cars  in  India,  light  commercial  vehicles  in  the  Rest  of  World  (RoW),  and  heavy-­‐

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duty  diesel  (HDD)  in  the  RoW  and  Western  Europe  stand  out  as  the  growth  markets  for  platinum.  Cars  in  Western  Europe,  with  its  high  diesel  share  and  stringent  emissions  standards,  are  the  main  contributor  to  demand,  albeit  with  little  growth.  The  anticipated  rise  in  diesel  share  and  expedition  in  adoption  of  emissions  legislation  in  India,  as  well  as  growth  in  vehicle  production  should  support  meaningful  demand  growth  from  this  region.  For  palladium,  the  largest  market,  China,  though  slowing   is  also  predicted   to   remain  one  of   the  growth  markets.  Legislative   tightening   in  Europe,  higher  vehicle  numbers  and  expansion  of  legislation  sustain  Europe  and  China  as  the  largest  markets  for  rhodium.    Mobilisation  for  Balanced  Approach  to  Diesel  Vehicle  Use  Diesel  vehicles  have  recently  received  negative  press  in  Europe  and  are  labelled  by  some  as  the  main  contributors  to  bad  air  quality  in  European  cities.  It  should  be  noted,  however,  that  newer  diesel  vehicles  that  adhere  to  the  Euro  6  emission  standard   drastically   reduce   Nitrogen   Oxide   (NOx)   pollutants.   Lonmin   is   collaborating   with   the   catalyst   fabricators,   car  companies   and   other   interest   groups   through   the   International   Platinum  Group  Association   (IPA)   to   educate   and   lobby  with   national   and   local   European   governments   to   abandon   misguided   communications   and   strategies   to   reduce   or  eradicate  diesel  powered  vehicles  and  rather  incentivise  the  accelerated  disposal  of  older  diesels  and  acquisition  of  Euro  6  compliant  diesel  vehicles.    Fuel  Cell  Vehicles  –  long-­‐term  growth  market  Platinum   catalysts   are   key   to   the   largest   volume   fuel   cell   technology   such   as   Proton   Exchange   Membrane   Fuel   Cells  (PEMFC)  and  more  companies  are  actively  seeking  the  optimal  solution  to  mass  market  deployment.  It  is  anticipated  that  both   stationary   and   vehicle   fuel   cells   will   see   increasing   adoption   over   the   next   decade   and   will   be   an   increasingly  significant  feature  of  the  platinum  demand  profile.  The  transport  sector  is  expected  to  be  the  largest  user  of  platinum  in  fuel  cells,  followed  by  the  stationary  sector.  Fuel  cell  vehicles  are  estimated  to  make  up  just  0.015%  of  global  light  vehicle  production  in  2025  but  the  impact  on  platinum  consumption  will  be  considerable.  In  addition,  adoption  of  stationary  fuel  cell  as  base  load  and  backup  power  is  expected  to  grow  significantly  both  in  Asia  and  Africa.    Jewellery  –  sales  strongly  influenced  by  marketing  effort  Platinum   jewellery   sales  were  essentially   stable   in  2014  and  gross  platinum   jewellery  demand   is   set   to   increase  by  over  500,000   ounces   from   2014   to   2025,   with   faster   growth   expected   in   the   near   term.   The   single   greatest   contributor   to  demand  is  China,  though  growth  was  flat   in  2014.  India  and  the  US  are  reporting  healthy  growth  rates  and  India  has  the  potential  to  overtake  Japan  as  the  second  biggest  jewellery  market  over  the  next  five  years.  The  importance  of  jewellery  to  overall   platinum  demand   is   clear,   remaining   at   around   36%  of   total   consumption   during   the   period   2014   to   2025,   and  contributing  20%  of  the  total  growth  over  this  period.    Investment  –  ETFs  remain  sticky  Global  platinum  ETF  holdings  added  217,000  ounces  in  2014,  an  increase  of  9%,  as  robust  purchases  in  South  Africa  were  partially  offset  by  outflows  from  US,  UK  and  Swiss  funds.  2014  was  a  year  of  two  halves,  with  accumulation  of  platinum  held  in  ETFs  through  to  July  resulting  in  holdings  reaching  a  record  level  of  2.9  million  ounces.  August  saw  across-­‐the-­‐board  selling   from   ETFs   and   global   holdings   did   not   fully   recover,   as,   although   South   African   investors   returned   to   being   net  purchasers   in   the   fourth   quarter,   selling   from   European   and  US   funds   continued.   Platinum   ETFs   ended   2014  with   2.75  million  ounces  of  metal.  Palladium  investment  demand  received  a  boost  in  2014  with  the  launch  of  two  new  ETFs  in  South  Africa.  Over  the  course  of  the  year  they  gained  1.22  million  ounces,  making  them  slightly   larger  in  ounce  terms  than  the  equivalent  platinum  ETFs.  Total  palladium  holdings  jumped  47%,  or  940,000  ounces,  during  2014.  Investors  outside  South  Africa  were  much   less  keen  on  palladium  and  there  were  significant  sales   from  the  US  and  Swiss   funds  and  only  a  small  increase  in  UK  funds’  holdings.  Platinum  as  an  investment  asset  class  is  a  net  consumer  of  metal  as  it  continues  to  grow.  In  addition,  through  our  collaborative  effort  and  the  work  of  the  World  Platinum  Investment  Council  we  believe  the  benefits  of  investing  in  platinum  will  improve  and  attract  more  long  term  investors  in  future.      Recycling  –  growing  part  of  the  mix    SFA  forecast  platinum  recycling  to  grow  by  4%  a  year  from  2.0  million  ounces  in  2014  to  3.0  million  ounces  by  2025.  Much  of  this  growth  is  expected  to  come  from  autocatalyst  recycling,  making  up  around  two-­‐thirds  of  the  metal.  In  China,  most  of   the  scrap  comes   from  the  manufacturing  process  and  unsold  dated   jewellery  designs,   so   recycling  expands  as  overall  demand   grows.   SFA   estimates   that   recycling   is   expected   to   meet   32%   of   total   platinum   demand   in   2020   while   other  commentators  are   less  optimistic  about   the  growth.  We  believe   that  given   the   slower  primary  growth   rate  and  healthy  growth  in  demand,  a  share  of  between  25-­‐30%  of  supply  can  be  expected  and  will  help  maintain  the  balance.    

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 PGMs  remain  at  the  hub  of  current  and  evolving  technologies    There  is  significant  upside  ahead  for  PGM  use  in  autocatalysts  if  emerging  markets  such  as  China  and  India  address  urban  air  quality  issues  with  a  swifter  move  to  Euro  6  level  emissions  legislation.  This  does  rely  on  the  availability  of  sufficiently  clean   fuel,  coupled  with  autocatalyst  and  vehicle  manufacturing  capacity.  The  current  pricing  environment  may  provoke  some   substitution   within   the   PGM   triangle   favouring   rhodium   and   platinum   and   the   price   relative   to   gold   may   affect  jewellery  demand  for  platinum.  While  the  quest  for  PGM  replacement  technology  will  always  remain  on  the  agenda  there  has  been  no  meaningful  alternative  that  can  compete  with  the   inherent  properties  of  these  unique  metals  making  them  indispensable  in  the  use  of  environmental  protection,  manufacture  of  chemical  feedstocks  and  pharmaceutical  ingredients  and  medical  treatments.      Outlook  Demand  for  platinum  is  expected  to  increase  over  the  next  five  to  ten  years.  Market  commentators  are  aligned  that  demand  will  recover  and  outstrip  supply  as  the  implied  above  ground  stock  which  is  currently  dampening  the  price  performance  of  the  metals,  continuously  diminish.    Platinum  Demand  &  Supply  Outlook  –  Market  Commentator  Snapshot   Other  Commentators   Analyst  A    

(10  Year  Outlook)  Analyst  B    (10  Year  Outlook)  

SFA  (10  Year  Outlook)  

Demand        Automotive   2.76%   4.80%   2.23%  Jewellery   2.00%   0.80%   1.30%  Other  Industrial   3.18%   13.50%   4.05%  Supply        Primary   1.93%   0.32%   1.16%  Recycling   3.27%   5.10%   4.12%  Source:  External  Sources  and  SFA  (Oxford)    While  we  agree  with  commentators  that  the  average  growth  rate  in  automotive  demand  for  platinum  will  range  between  2.25%  and  5.00%  over   the  next   decade   and   through   Lonmin’s   collaborative   efforts   jewellery  will   grow  well   in   line  with  economic  average  growth  forecasted  in  developing  economies  over  this  same  period  (>2.50%),  we  foresee  primary  supply  from  Southern  Africa   struggling   to  maintain   current  quantities  over   the  next   five   to   ten   years   and  expect   growth   to  be  below  1.00%  over  this  period.  As  palladium  and  rhodium  supply  are  driven  by  platinum  supply  and  as  growth  in  demand  for  these  metals  is  anticipated  to  surpass  that  of  platinum,  it  is  clear  that  the  overall  demand  for  PGMs  will  remain  robust.      Mineral  and  Petroleum  Resource  Development  Act  (MPRDA)  Update    On  16  January  2015,  President  Zuma  notified  the  Speaker  of  the  National  Assembly  that  the  Bill  in  its  current  form  would  not   pass   Constitutional  muster   and  was   therefore   to   be   returned   to   the   National   Assembly   for   reconsideration.   Issues  specifically  identified  by  the  President  for  reconsideration  were:      • The  definition  of  “Act”  which  elevated  the  Mining  Codes,  the  Housing  Standards  and  the  Amended  Mining  Charter  to  

the  status  of  national  legislation  and  permitted  the  Minister  of  Mineral  Resources  to  amend  these  documents;    • The  Bill  was  in  conflict  with  South  Africa’s  trade  obligations  as  it  imposes  quantitative  restrictions  on  exports;    • The  National  Council  of  Provinces  and  the  Provincial   legislature  did  not  consult  sufficiently  widely  with  the  public  as  

regard  the  contents  of  the  Bill;  and    • The  National  House  of  Traditional  Leaders  should  be  given  an  opportunity  to  provide  comments  on  the  Bill  as  it  has  a  

significant  impact  upon  communities.      It  is  unlikely  that  the  Bill  will  be  finalised  in  the  near  term  as  initially  anticipated.  

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12. Update  on  the  Farlam  Commission  of  Inquiry    Lonmin   fully   cooperated   with   the   Farlam   Commission   and   is   committed   to   learn   from   the   findings.   All   the   deceased  miners’  widows   or   relatives   are   already  working   at   Lonmin   and  we   have   fulfilled   our   promise   to   employ   them.   All   the  widows  have  received  all   statutory  payments   that  were  due   to   them.  Lonmin  will   continue   to   find  ways  of  assisting   the  families   of   the   victims   including   funding   and   supporting   the  Marikana  Memorial   Education   Trust  we   founded   in  August  2012.  The  Farlam  Commission  of  Inquiry  submitted  its  findings  and  recommendations  to  the  President  of  South  Africa  on  31  March  2015  as  expected.    13. Management  and  Board  Update    As  reported   in  the  2014  Annual  Report,  Karen  de  Segundo  retired  from  the  Board  at  the  2015  AGM  on  29  January  2015  having   served   as   a   Non-­‐executive   director   for   almost   ten   years   and   having  made   a   very   significant   contribution   to   the  Company.    On  16  February  Varda  Shine  joined  the  Board  as  an  independent  Non-­‐executive  director  having  served  eight  years  as  the  CEO  of  De  Beers  Trading  Company.  She  brings  with  her  considerable  experience  at  a  strategic  and  commercial  level  within  the  mining  industry,  particularly  in  the  Southern  African  region.    Glencore  has  confirmed  its  intention  to  divest  its  non-­‐core  23.9%  shareholding  in  Lonmin  as  a  distribution  in  specie  after  Glencore   shareholders   approved   the   distribution   at   their   Annual   General  Meeting   on   7  May   2015.   As   a   result   its   two  representatives,  Gary  Nagle  and  Paul  Smith,  who  have  been  on  the  Lonmin  Board  since  September  2013,  stepped  down  on  8  May  2015.    As  announced  on  23  February,  Phuti  Mahanyele  intends  to  resign  from  the  Board  as  a  Non-­‐executive  director  from  30  June  2015  as   a   result  of  her   resignation   from  Shanduka.  We  will   notify   the  market   in  due   course  once  details   of   Shanduka’s  proposed  nominee  director  have  been  confirmed.    Barnard  Mokwena   resigned   as   EVP   Strategic   Business   Transformation   in  December   2014   and   Johan  Viljoen   resigned   as  COO  on  24  February  for  personal  reasons.  Ben  Moolman  has  been  appointed  COO  having  returned  to  Lonmin   in  August  2014  to  head  the  Business  Support  Office.  He  has  30  years  of  experience   in  Platinum  mining.   In  his  previous  role  at   the  Company   he   served   in   a   variety   of   operational   management   positions,   including   Vice   President   Mining   and   is   ideally  positioned  to  take  on  the  COO  role.  Before  re-­‐joining  Lonmin,  Ben  worked  at  Glencore  Xstrata  where  he  headed  up  the  Platinum  Division.    14. Outlook  and  Guidance    The   strong   performance   of   our   operations   enables   us   to  maintain   our   guidance   for   the   full   year   of   saleable  metal-­‐in-­‐concentrate  of  around  750,000  Platinum  ounces.  The  smelter  complex  is  operating  at  normal  production  levels  following  the  furnace  incidents  experienced  in  Q1  and  we  are  utilising  our  surplus  furnace  capacity  to  maintain  our  sales  guidance  of  around  730,000  Platinum  ounces.    We  are  pleased  with  our  progress  with  the  cost  savings  programme.  We  maintain  our  unit  cost  guidance  of  R10,800  per  PGM  ounce  for  the  full  year.    As  a  consequence  of  the  persisting  low  Dollar  PGM  prices  and  short  to  medium-­‐term  uncertainty  around  Platinum  prices  we  are  reducing  our  expected  2015  capital  expenditure  from  $185  million  to  $160  million.      Our   level  of  borrowings  was  higher  at   the  31  March  2015  as  a  direct   result  of   the   lower  sales  volumes   in  H1  which  will  unwind  in  H2.  The  second  half  outcome  in  terms  of  debt  reduction  and  earnings  will,  as  always,  be  highly  dependent  on  the  prevailing  PGM  prices  and  exchange   rates.  At   current  prices,   the   sales   falling   into   the  second  half  as  a   result  of   the  stock  build-­‐up  at  the  end  of  March  are  expected  to  reduce  debt  by  some  $170  million  but  are  only  expected  to  contribute  

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to  earnings  in  a  small  way  as  those  stocks  are  held  at  close  to  current  net  realisable  value.  We  are  confident  of  managing  our  working  capital  requirements  through  cost  conservation  measures  and  capital  discipline  to  keep  borrowings  and  debt  covenants  well  within  our  committed  debt  facilities.    We  are  planning  on  the  basis  that  the  current  depressed  pricing  environment  will  persist  for  at   least  two  years  and  as  a  result  we  expect  our  capital  expenditure  over  the  next  two  financial  years  to  reduce  to  $150  million  per  annum,  from  our  previous  guidance  of  $250-­‐$350  million  per  annum  whilst  maintaining  sales  of  750,000  Platinum  ounces  for  each  year.    15. Employee  Contribution    Finally,   I  would   like  to  express  my  sincere  gratitude  to  all  our  employees,  contractors,  community  members,  the  Lonmin  Board  and  all  stakeholders  for  their  support  and  commitments  to  delivering  a  solid  performance  in  the  first  half  of  2015.      Ben  Magara  Chief  Executive  Officer    8  May  2015      

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FINANCIAL  REVIEW    Overview    The  financial   impact  of  the  solid  operational  performance  achieved  from  a  mining  perspective  was  somewhat  diluted  by  the   downtime   in   our   smelter   complex   as  well   as   the   continued   downward   pressure   on   the   Platinum  price   experienced  during   the   period   under   review.  We   continued   to   demonstrate   balance   sheet   flexibility   through   our   ability   to   fund   the  working  capital  build  up  resulting  from  the  furnace  shutdowns  while  maintaining  headroom  in  available  debt  facilities.    Revenue  generated  was  impacted  by  the  lower  Platinum  price  and  the  reduction  in  volumes  sold.  As  a  result,  we  continued  to  focus  on  cost  savings.      Labour   rate   increases   since   H1   2013   which   were   offset   by   cost   saving   initiatives   have   seen   an   increase   in   the   cost   of  production  per  PGM  ounce   from  R8,960   for   the  2013  period   to  R10,516   for   the   six  months  ended  31  March  2015.   The  second   half   of   the   year   will   see   a   continued   focus   on   cost   containment   to   counter   PGM   price   weakness,   maintaining  momentum  in  operational  performance  and  the  release  of  built  up  inventory  as  the  key  drivers  of  financial  performance.    The  low  metal  prices  and  constraints  around  our  smelting  operations  have  negatively  impacted  profitability  although  the  weaker  Rand  has  partially  off-­‐set  the  lower  Dollar  prices  as  our  cost  base  is  predominately  Rand  based.  As  a  result  underlying  EBITDA  was  $8  million  compared  to  $103  million  in  the  prior  year  period  when  idle  costs  of  production  during  the  strike  amounting  to  $165  million  were  treated  as  special  costs  and  excluded  from  underlying  EBITDA.    From  a  balance  sheet  perspective,   the  build-­‐up  of   inventory  has  seen  debt   levels   rise  to  end  the  period  at  $282  million.  This  remains  well  within  our  debt  facility  limits,  reflecting  the  balance  sheet  flexibility  we  have  built  up  since  2012.  Had  we  had  not  experienced  the  stock  lock  up,  the  net  revenue  from  the  sales  would  have  resulted  in  net  debt  being  in  the  region  of   $170  million   lower.  With   the   smelter   complex   back   at   full   capacity   and   the   resultant   unwinding   of   the   accumulated  pipeline  stock  in  the  second  half  of  the  financial  year,  debt  levels  are  also  expected  to  decrease  by  year-­‐end.    Income  Statement    The  $104  million  movement  between  the  underlying  operating  loss  of  $70  million  for  the  six  months  ended  31  March  2015  and  the  underlying  operating  profit  of  $34  million  for  the  six  months  ended  31  March  2014  is  analysed  below.           $m     Period  to  31  March  2014  reported  operating  loss   (131)     Period  to  31  March  2014  special  items   165     Period  to  31  March  2014  underlying  operating  profit    

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  PGM  price    PGM  volume  PGM  mix  Base  metals  

(45)  (33)  2  6  

  Revenue  changes   (70)     Cost  changes  (net  of  positive  foreign  exchange  impact  of  $82m)   (34)      Period  to  31  March  2015  underlying  operating  loss  

 (70)  

  Period  to  31  March  2015  special  items     (14)     Period  to  31  March  2015  reported  operating  loss   (84)    

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Revenue    Total  revenue  for  the  six  months  ended  31  March  2015  of  $508  million  decreased  on  the  prior  year  period  by  $70  million.    As  noted   in   the  Overview  the  Platinum  price  was  under  continued  downward  pressure  over   the  period  and  the  average  prices  achieved  on  the  key  metals  sold  are  shown  below:       Six  months  

ended  31.03.15  

Six  months  ended  

31.03.14     $/oz   $/oz  Platinum   1,187   1,400  Palladium   784   735  Rhodium   1,182   1,003  PGM  basket  (excluding  by-­‐product  revenue)   916   999  PGM  basket  (including  by-­‐product  revenue)   988   1,056    The   US   Dollar   PGM   basket   price   (excluding   by-­‐products)   decreased   by   8%,   resulting   in   a   reduction   in   revenue   of   $45  million.  It  should  be  noted  that  whilst  the  US  Dollar  basket  price  decreased  by  8%  compared  to  the  2014  period,  in  Rand  terms  the  basket  price  (excluding  by-­‐products)  remained  flat  supported  by  the  weaker  Rand.      The  PGM  sales  volume  for  the  six  months  to  31  March  2015  was  6%  down  compared  to  the  six  months  to  31  March  2014  as  the  period  under  review  was  impacted  by  production  disruptions  as  a  result  of  the  two  furnaces  which  were  shut  down  for  part  of  the  period.  The  reduction  in  PGM  volumes  sold  contributed  $33  million  to  the  overall  decrease  in  revenue.      Base  metal  revenue  increased  by  $6  million  as  a  result  of  higher  Nickel  prices  and  an  increase  in  the  volumes  of  Nickel  and  Chrome  sold  compared  to  the  2014  period.    Operating  Costs    Total  underlying  costs  in  US  Dollar  terms  increased  by  $34  million  compared  to  the  prior  year.  The  increase  in  costs  on  the  back   of   increased   production   following   the   2014   strike   and   annual   escalations   was   partially   offset   by   positive   foreign  exchange  impacts  as  the  Rand  weakened  during  the  period  under  review.  A  track  of  the  movements  in  operating  costs  is  shown  in  the  table  below.       $m  Six  months  ended  31  March  2014  –  underlying  costs   544    Increase  /  (decrease):    

 

Marikana  underground  mining  Marikana  opencast  mining  Concentrating,  smelting  and  refining  Overheads  

127  (8)  26  7  

Idle  fixed  production  overheads  excluded  from  underlying  costs  in  2014   169  Operating  costs   321  Ore,  concentrate  and  other  purchases  Metal  stock  movement  Foreign  exchange  Depreciation  and  amortisation  

16  (230)  (82)  

9  Cost  changes  (net  of  foreign  exchange  impact)   34  

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Six  months  ended  31  March  2015  –  underlying  costs   578    

 Marikana  underground  mining  costs  increased  by  $127  million  or  39%,  largely  driven  by  an  increase  in  production  volumes  when   compared   to   the   strike   affected   prior   year   period.  Wage   and   utility   escalations   also   contributed   to   the   increase.  Marikana  opencast  mining  costs  decreased  by  $8  million  due  to  lower  production  as  the  operation  is  reaching  the  end  of  its  life  cycle.        Concentrating,  smelting  and  refining  costs  increased  by  $26  million  or  21%  compared  to  the  prior  year  period  as  a  result  of  increased  volumes  of  ore  milled  compared  to  the  prior  period  as  well  as  cost  escalations.  This  was  partially  offset  by  the  reduction  in  volumes  of  refined  production  which  was  impacted  by  the  smelter  incidents.        Overheads  increased  by  $7  million  largely  due  to  cost  escalations.    Ore  and  concentrate  purchases  increased  by  $16  million  due  to  higher  volumes  produced  by  the  suppliers  compared  to  the  strike  impacted  prior  year  period.      Due  to  the  stoppages  experienced  at  our  Number  One  and  Number  Two  furnaces  for  part  of  the  six  months  under  review,  there  was   a   build-­‐up   of   concentrate   stock   ahead   of   the   furnaces  which   resulted   in   an   overall   increase   in   closing   stock  compared  to  the  prior  year  period.  The  movement  in  metal  stock  of  $230  million  comprises  an  increase  of  $125  million  in  the  six  months  ended  31  March  2015  and  a  decrease  in  the  prior  year  period  of  $105  million.      The   Rand   weakened   considerably   against   the   US   Dollar   during   the   period   under   review   averaging   ZAR11.48   to   USD1  compared  to  an  average  of  ZAR10.46  to  USD1  in  the  2014  period  resulting   in  a  $82  million  positive   impact  on  operating  costs.    Depreciation  and  amortisation  increased  by  $9  million  over  the  2014  period  as  a  result  of  the  increase  in  production  during  the  period.  Depreciation   is  calculated  on  a  units-­‐of-­‐production  basis,   spreading  costs   in   relation  to  proven  and  probable  reserves.    Cost  of  production  per  PGM  Ounce    The  cost  of  production  per  PGM  ounce  for  the  six  months  to  31  March  2015  was  contained  to  R10,516  despite  production  delays   as   a   result   of   Furnaces  One   and   Two   being   offline   for   part   of   the   period   under   review   as  well   salary   and  wage  increases  of  12.9%  and  8.8%  for  the  two  years  since  H1  2013.  Compared  to  the  prior  year  period,  the  cost  of  production  per  PGM  ounce  was  19.5%  lower  as  the  prior  year  period  was  largely  influenced  by  production  disruptions  as  a  result  of  the  strike  and  included  idle  fixed  production  costs.    Further  details  of  unit  costs  can  be  found  in  the  Operating  Statistics.  

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Special  Operating  Costs      Special  operating  costs  for  the  six  months  ended  31  March  2015  are  made  up  as  follows:      

6  months  ended  31  March     2015  

$m  2014  $m  

BEE  transaction  costs   15   -­‐  -  Lock-­‐in  premium  -  Legal  and  consulting  costs  

13  2  

-­‐  -­‐  

Strike  related  costs   (1)   164  - Idle  fixed  production  costs   -­‐   157  - Contractors’  claims   -­‐   3  - Security  costs   -­‐   4  - Other  costs   (1)   -­‐  

• Other   -­‐   1  •   14   165  

 Special  costs  decreased  significantly   from  $165  million  for  the  six  months  ended  31  March  2014  as  there  were  no  strike  related  costs   incurred  during  the  six  months  ended  31  March  2015  (31  March  2014:  $164  million).  BEE  transaction  costs  amounted  to  $15  million  with  $13  being  the  lock-­‐in  premium  paid  to  the  Bapo.  Legal  and  consulting  costs  incurred  on  this  transaction  amounted  to  $2  million.  Refer  to  note  11  in  the  Financial  Statements  for  further  details  on  the  BEE  transaction.    Net  Finance  Costs       6  months  to  31  March     2015  

$m     2014  

$m  Net  bank  interest  and  fees   (11)     (8)  Capitalised  interest  payable  and  fees   6     4  Exchange     4     2  Other   (4)     (4)  Underlying  net  finance  costs   (5)     (6)  HDSA  receivable   (27)     (139)  Net  finance  costs     (32)     (145)    The   total  net   finance  costs  of  $32  million   for   the  six  months  ended  31  March  2015  represent  a  $113  million  movement  compared  to  total  net  finance  costs  of  $145  million  for  the  six  months  ended  31  March  2014.      Net  bank  interest  and  fees  increased  from  $8  million  to  $11  million  for  the  six  months  ended  31  March  2015  largely  as  a  result  of  an  increase  in  average  drawn  facilities  during  the  period  under  review.  Interest  totalling  $6  million  was  capitalised  to  assets  (2014  -­‐  $4  million).    The   Historically   Disadvantaged   South   Africans   (HDSA)   receivable,   being   the   Sterling   loan   to   Shanduka   Resources  (Proprietary)  Limited  (Shanduka)  was  impacted  by  interest  accruals,  exchange  movements  and  movements  in  the  value  of  the  underlying  security.  Net  finance  costs  of  $27  million  during  the  period  to  31  March  2015  consist  of  adverse  exchange  movements  of  $36  million  which  were  partially  offset  by  accrued   interest  of  $9  million.  The  Shanduka   loan  balance  was  assessed   for   impairment  at  31  March  2015  by   comparing   the   carrying  amount  of   this   loan   to   the   value  of   the   security,  being  the  value  of  Shanduka’s  shareholding  in  Incwala  calculated  based  on  discounted  cash  flows  of  Incwala’s  underlying  investments   in  WPL,  EPL  and  Akanani.  There  was  no  adjustment  to  the   impairment  of   the  receivable  at  31  March  2015.  Refer   to   note   10   in   the   Financial   Statements   for   further   details.  

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 Taxation    Reported  tax  for  the  six  months  ended  31  March  2015  was  a  credit  of  $33  million  compared  to  $67  million  for  the  period  ended  31  March  2014.  The  underlying  tax  credit  of  $9  million  in  the  2015  period  increases  to  $33  million  after  taking  into  account  exchange  gains  on  the  retranslation  of  Rand  denominated  deferred  tax  liabilities  ($21  million)  and  the  tax  impact  of  special  items  ($3  million).  These  gains  are  treated  as  special.  In  the  prior  year  period  exchange  gains  had  an  effect  of  $23  million  on  the  tax  charge  while  special  items  had  an  effect  of  $46  million.      Our  philosophy  on  taxation  is  to  comply  with  the  tax  legislation  of  all  the  countries  in  which  we  operate  by  paying  all  taxes  due   and   payable   in   those   countries   in   terms   of   the   applicable   tax   laws.   Transactions   entered   into   by   the   Group   are  structured   to   follow  bona   fide  business   rationale  and   tax  principles.  We  recognise   that   in  order   to  be  a   sustainable  and  responsible  business,  the  Group  must  have  appropriate  tax  policies  that  are  adhered  to  and  managed  properly.  We  seek  to  maintain  a  proactive  and  cooperative   relationship  with   local   tax  authorities   in  all  our  business  and   tax   transactions  and  conduct  all  such  transactions  in  a  transparent  manner.    With  the  Group’s  primary  operations  being  in  South  Africa,  the  tax  liability  follows  such  activity  which  has  the  effect  that  the  majority  of   the  Group’s   taxes  are  paid   in   that   country.   Following   the   financial   crisis  of  2008  and  other  more   recent  events   including   the  events  at  Marikana  of  2012,   sluggish  global  growth  which  has   impacted  PGM  markets  and   the   five  month   industry-­‐wide   strike  which   impacted   profitability   in   2014,   the   level   of   corporate   tax   has   reduced.   However,   the  Group  continues  to  pay  significant  amounts  in  respect  of  other  forms  of  tax  including:    

• Employee  taxes  • Customs  and  excise  duties    • Value  Added  Tax  • State  royalties  

 Our   philosophy  on   transfer   pricing   is   that   related  party   transactions   should   be   charged   at   arm’s   length   prices.   Transfer  pricing  studies  were  performed  by  transfer  pricing  specialists  on  all  our  related  party  transactions  and  such  transactions  were  found  to  be  within  acceptable  norms  compared  to  comparable  transactions  in  similar  companies.  Lonmin  inherited  a  number  of  companies  in  tax  haven  jurisdictions  from  previous  unbundling  and  acquisition  transactions.  These  companies  are  dormant  entities  and  therefore  do  not  receive  any  income.  Furthermore,  Lonmin  does  not  pay  any  of  its  income  to  any  of  the  dormant  tax  haven  companies  in  these  inherited  structures.    

22  

 

Cash  Generation  and  Net  Cash    The  following  table  summarises  the  main  components  of  the  cash  flow  during  the  period:           Six  months  ended  31  March         2015     2014         $m     $m  Operating  loss         (84)     (131)  Depreciation,  amortisation  and  impairment       78     69  Changes  in  working  capital       (164)     (10)  Other       8     8  Cash  flow  utilised  in  operations         (162)     (64)  Interest  and  finance  costs       (8)     (8)  Tax  paid       -­‐     1  Trading  cash  outflow       (170)     (71)  Capital  expenditure       (65)     (46)  Dividends  paid  to  minority  shareholders       (19)     (16)  Free  cash  outflow       (254)     (133)  Investment  in  joint  venture       (2)     -­‐  Cash  outflow       (256)     (133)  Opening  net  (debt)/cash       (29)     201  Foreign  exchange       3     3  Closing  net  (debt)/cash       (282)     71              Trading  cash  outflow  (cents  per  share)              (29.3)c            (12.5)c  Free  cash  outflow  (cents  per  share)              (43.8)c            (23.4)c    Cash  flow  utilised  in  operations  in  the  six  months  ended  31  March  2015  at  $162  million  reflects  a  $98  million  increase  from  the   same  period   in   2014.   This   is   largely   the   result   of   the  build-­‐up  of   concentrate   stock   following   the  disruptions   in  our  smelter  complex.  The  repairs  to  the  furnaces  were  completed  and  both  the  Number  One  and  Number  Two  furnaces  are  back  in  operation.  The  build-­‐up  of  stock  is  expected  to  unwind  in  the  second  half  of  the  year.      Trading  cash  outflow  for  the  six  months  to  31  March  2015  amounted  to  $170  million  (2014  –  $71  million).  The  trading  cash  outflow  per  share  was  29.3  cents  for  the  six  months  ended  31  March  2015  (2014  –  12.5  cents).    Capital  expenditure  at  $65  million  was  $19  million  more  than  the  prior  period  as  projects  were  deferred  during  the  2014  strike.  However,   capital   expenditure   in   the   2015   period  was   below   the   planned   spend   due   to   the   reductions   across   all  areas   of   the   business   due   to   the   depressed  pricing   environment.   At   our  Mining   operations,   the  majority   of   the   project  capital  funds  were  allocated  to  the  K3  UG2  sub-­‐decline,  Saffy  ore  reserve  development,  Rowland  shaft  as  well  as  K4  shaft.    The  majority   of   the   amount   spent   on   the   Smelting   and   Refining   operations   related   to   the   rebuild   of   the   Number   One  furnace  as  well  as  the  Other  Precious  Metals  (OPM)  upgrade  project  for  the  PMR.        The  build-­‐up  of   inventory  has  seen  debt   levels   rise   to  end  the  period  at  $282  million.  This   remains  well  within  our  debt  facility   limits   outlined   below   reflecting   the   balance   sheet   flexibility   we   have   built   up   since   2012.   Had   we   had   not  experienced  the  stock  lock  up,  the  net  revenue  from  the  sales  would  have  resulted  in  net  debt  being  in  the  region  of  $170  million  lower.  With  both  major  furnaces  in  operation  and  the  expected  unwinding  of  the  accumulated  stock  in  the  second  half  of  the  financial  year,  debt  levels  are  also  expected  to  decrease  by  year-­‐end.    Principal  Risks  and  Uncertainties  

23  

 The  Group  faces  many  risks  in  the  operation  of  its  business.  The  Group’s  strategy  takes  into  account  known  risks,  but  risks  will  exist  of  which  we  are  currently  unaware.  The  principal  risks  and  uncertainties  highlighted   in  our  2014  annual  report  have   largely   remained   unchanged.

24  

 Financial  Risk  Management    The  main  financial  risks  faced  by  the  Group  relate  to  the  availability  of  funds  to  meet  business  needs  (liquidity  risk),  the  risk  of  default  by  counterparties  to  financial  transactions  (credit  risk)  and  fluctuations  in  interest,  foreign  exchange  rates  and  commodity  prices  (market  risk).  Factors  which  are  outside  the  control  of  management  which  can  have  a  significant  impact  on  the  business  remain,  specifically,  volatility  in  the  Rand  /  US  Dollar  exchange  rate  and  PGM  commodity  prices.    These  are  the  critical  factors  to  consider  when  addressing  the  issue  of  whether  the  Group  is  a  Going  Concern.      Liquidity  Risk    The  Group  funds  its  operations  through  a  mixture  of  equity  funding  and  borrowings.  The  Group’s  philosophy  is  to  maintain  an  appropriately  low  level  of  financial  gearing  given  the  exposure  of  the  business  to  fluctuations  in  PGM  commodity  prices  and  the  Rand  /  US  Dollar  exchange  rate.  We  ordinarily  seek  to  fund  capital  requirements  from  equity.    As  part  of  the  annual  budgeting  and  long-­‐term  planning  process,  the  Group's  cash  flow  forecast  is  reviewed  and  approved  by  the  Board.  The  cash  flow  forecast  is  amended  for  any  material  changes  identified  during  the  year,  for  example  material  acquisitions  and  disposals  or  changes   in  production   forecasts.  Where   funding   requirements  are   identified   from  the  cash  flow   forecast,   appropriate   measures   are   taken   to   ensure   these   requirements   can   be   satisfied.   Factors   taken   into  consideration  are:    

• the  size  and  nature  of  the  requirement;  • preferred  sources  of  finance  applying  key  criteria  of  cost,  commitment,  availability,  security  /  covenant  conditions;  • recommended  counterparties,  fees  and  market  conditions;  and  • covenants,  guarantees  and  other  financial  commitments.    

The  Group’s  current  debt  facilities  are  summarised  as  follows:    

• Revolving  Credit  Facility  of  $400  million  at  a  Lonmin  Plc  level  which  matures  in  May  2016;  and  • Three  bilateral  facilities  of  R660  million  each  at  Western  Platinum  Limited  (WPL)   level,  each  consisting  of  a  R330  

million   five   year   committed   component   which   matures   in   June   2016   and   a   R330   million   one   year   committed  component  that  can  be  rolled  annually.  

 The  following  financial  covenants  apply  to  these  facilities:    

• consolidated  tangible  net  worth  will  not  be  less  than  $2,250  million;  • consolidated  net  debt  will  not  exceed  25  per  cent  of  consolidated  tangible  net  worth;  and  • if:  

o in   respect   of   the   amended   US   Dollar   Facilities   Agreement,   the   aggregate   amount   of   outstanding   loans  exceeds  $75  million  at  any  time  during  the  last  six  months  of  any  test  period;  or  

o in   respect   of   both   the   amended   US   Dollar   Facilities   Agreement   and   the   amended   Rand   Facilities  Agreements,  consolidated  net  debt  exceeds  $300  million  as  of  the  last  day  of  any  test  period,  

 the  capital  expenditure  of  the  Group  must  not  exceed  the  limits  set  out  in  the  table  below,  provided  that,  if  110  per  cent  of  budgeted   capital   expenditure   for   any   test   period   ending   on   or   after   30   September   2013   is   lower   than   the   capital  expenditure  limit  set  out  in  the  table  below  for  that  test  period,  then  the  capital  expenditure  limit  for  that  test  period  shall  be  equal  to  110  per  cent  of  such  budgeted  capital  expenditure.  

25  

 

Test  Period                 Capital  expenditure  limit  (ZAR)    1  October  2012  to  31  March  2013  (inclusive)  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .            800,000,000  1  October  2012  to  30  September  2013  (inclusive)  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .     1,600,000,000  1  April  2013  to  31  March  2014  (inclusive)  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .       1,800,000,000  1  October  2013  to  30  September  2014  (inclusive)  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .       2,000,000,000  1  April  2014  to  31  March  2015  (inclusive)  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .       3,000,000,000  1  October  2014  to  30  September  2015  (inclusive)  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .       4,000,000,000  1  April  2015  to  31  March  2016  (inclusive)  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .     4,000,000,000  1  October  2015  to  30  September  2016  (inclusive)  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .       4,000,000,000    Credit  Risk    Banking  Counterparties    Banking  counterparty  credit  risk  is  managed  by  spreading  financial  transactions  across  an  approved  list  of  counterparties  of  high   credit   quality.   Banking   counterparties   are   approved   by   the   Board   and   consist   of   the   ten   banks   that   participate   in  Lonmin’s   bank   debt   facilities.   These   counter-­‐parties   comprise:   BNP   Paribas   S.A.,   Citigroup   Global   Markets   Limited,  FirstRand  Bank  Limited,  HSBC  Bank  Plc,  Investec  Bank  Limited,  J.P.  Morgan  Limited,  Lloyds  TSB  Bank  Plc,  The  Royal  Bank  of  Scotland  N.V.,  The  Standard  Bank  of  South  Africa  Limited  and  Standard  Chartered  Bank.    Trade  Receivables    The  Group  is  exposed  to  significant  trade  receivable  credit  risk  through  the  sale  of  PGMs  to  a  limited  group  of  customers.    This  risk  is  managed  as  follows:    • aged  analysis  is  performed  on  trade  receivable  balances  and  reviewed  on  a  monthly  basis;  • credit  ratings  are  obtained  on  any  new  customers  and  the  credit  ratings  of  existing  customers  are  monitored  on  an  on-­‐

going  basis;  • credit  limits  are  set  for  customers;  and  • trigger  points  and  escalation  procedures  are  clearly  defined.    It   should   be   noted   that   a   significant   portion   of   Lonmin’s   revenue   is   from   two   key   customers.   However,   both   of   these  customers   have   strong   investment   grade   ratings   and   their   payment   terms   are   very   short,   thereby   reducing   trade  receivable  credit  risk  significantly.    HDSA  Receivables    HDSA   receivables   are   secured   on   the   HDSA’s   shareholding   in   Incwala   Resources   (Pty)   Limited.   Refer   to   note   8   in   the  financial  statements  for  details  on  the  valuation  of  this  security  and  the  impairment  assessment.    Interest  Rate  Risk    Although  the  Group  is  in  a  net  debt  position,  this  risk  is  not  considered  to  be  high  at  this  point  in  time.  The  interest  position  is  kept  under  constant  review  in  conjunction  with  the  liquidity  policy  outlined  above  and  the  future  funding  requirements  of  the  business.    Foreign  Currency  Risk    

26  

The  Group’s  operations  are  predominantly  based  in  South  Africa  and  the  majority  of  the  revenue  stream  is  in  US  Dollars.  However,  the  bulk  of  the  Group’s  operating  costs  and  taxes  are  paid  in  Rand.  Most  of  the  cash  received  in  South  Africa  is  in  US  Dollars.  Most  of  the  Group’s  funding  sources  are  in  US  Dollars.    The  Group’s  reporting  currency  is  the  US  Dollar  and  the  share  capital  of  the  Company  is  based  in  US  Dollars.    During  the  period  under  review  Lonmin  did  not  undertake  any  foreign  currency  hedging.      Commodity  Price  Risk    Our  policy   is  not   to  hedge   commodity  price  exposure  on  PGMs,  excluding  gold,   and   therefore  any   change   in  prices  will  have  a  direct  effect  on  the  Group’s  trading  results.        For  base  metals  and  gold,  hedging  is  undertaken  where  the  Board  determines  that  it  is  in  the  Group’s  interest  to  hedge  a  proportion  of  future  cash  flows.  The  policy  allows  Lonmin  to  hedge  up  to  a  maximum  of  75%  of  the  future  cash  flows  from  the  sale  of  these  products   looking  forward  over  the  next  12  to  24  months.  The  Group  did  not  undertake  any  hedging  of  base  metals  under   this   authority   in   the  period  under   review  and  no   forward   contracts  were   in  place   in   respect  of  base  metals  at  the  end  of  the  period.    In   respect  of   gold,   Lonmin  entered   into   a  prepaid   sale  of   75%  of   its   current   gold  production   for   the  next   54  months   in  March   2012.   In   terms   of   this   contract   Lonmin   will   deliver   70,700   ounces   of   gold   over   the   period   with   delivery   on   a  quarterly   basis   and   in   return   received   an   upfront   payment   of   $107  million.   The   upfront   receipt   was   accounted   for   as  deferred  revenue  on  our  balance  sheet  and  is  being  released  to  profit  and  loss  as  deliveries  take  place  at  an  average  price  of  $1,510/oz  delivered.    Contingent  Liabilities    The   Group   provided   third   party   guarantees   to   Eskom   as   security   to   cover   estimated   electricity   consumption   for   three  months.  At  31  March  2015  these  guarantees  amounted  to  $9  million  (2014  -­‐  $10  million).    Simon  Scott  Chief  Financial  Officer  8   May   2015  

27  

 Operating Statistics for the 6 months to 31 March 2015

Units

6 months to

31 March 2015

6 months to

31 March 2014

6 months to

31 March 2013

Marikana K3 shaft kt 1,336 771 1,521 K4 shaft kt 23 - 4 1B/4B shaft kt 821 480 898 Karee kt 2,180 1,251 2,423 Rowland shaft kt 926 553 867 Newman shaft kt 399 239 476 Hossy shaft kt 533 295 491 W1 shaft kt 90 54 73 East 1 shaft 1 kt 74 57 199 Westerns kt 2,023 1,197 2,106 Saffy shaft kt 830 387 526 East 2 shaft kt 193 135 182 East 3 shaft kt 32 12 46 Easterns kt 1,056 534 754 Underground kt 5,259 2,982 5,284 Opencast kt 108 155 288 Total kt 5,367 3,136 5,571 Pandora (100%) 2 Underground kt 310 156 263 Limpopo 3 Underground kt - 9 - Lonmin (100%) Total tonnes mined (100%) kt 5,677 3,301 5,834

Tonnes mined

% tonnes mined from UG2 reef (100%)

%

76.1%

74.4%

73.3%

Lonmin (attributable) Underground & Opencast kt 5,512 3,211 5,683 Ounces Mined 4 Lonmin excluding Pandora Pt ounces oz 338,545 198,884 350,493 Pandora (100%) Pt ounces oz 21,115 11,372 18,865 Limpopo Pt ounces oz - 359 - Lonmin Pt ounces oz 359,660 210,616 369,358 Lonmin excluding Pandora PGM ounces oz 648,818 380,556 650,883 Pandora (100%) PGM ounces oz 41,612 22,366 35,936 Limpopo PGM ounces oz - 804 - Lonmin PGM ounces oz 690,430 403,726 686,819 Tonnes milled 5 Marikana Underground kt 5,485 2,982 5,238 Opencast kt 206 208 213 Total kt 5,691 3,190 5,450 Pandora 6 Underground kt 328 151 266 Limpopo 7 Underground kt - 27 - Lonmin Platinum Underground kt 5,813 3,161 5,503 Opencast kt 206 208 213 Total kt 6,020 3,368 5,716 Milled head Lonmin Platinum Underground g/t 4.57 4.60 4.63 grade 8 Opencast g/t 3.07 3.09 2.93 Total g/t 4.52 4.50 4.56 Concentrator Lonmin Platinum Underground % 87.0 87.9 86.8 recovery rate 9 Opencast % 85.2 84.3 85.4 Total % 87.0 87.7 86.8

28  

Operating Statistics for the 6 months to 31 March 2015 (continued)

Units

6 months to

31 March 2015

6 months to

31 March 2014

6 months to

31 March 2013

Metals-in- Marikana Platinum oz 356,525 201,366 345,083 concentrate 10 Palladium oz 164,187 93,436 156,088 Gold oz 8,414 4,894 8,820 Rhodium oz 52,867 29,035 45,508 Ruthenium oz 85,390 47,033 70,132 Iridium oz 16,527 9,671 16,124 Total PGMs oz 683,909 385,434 641,754 Limpopo Platinum oz - 1,121 - Palladium oz - 974 - Gold oz - 93 - Rhodium oz - 114 - Ruthenium oz - 161 - Iridium oz - 44 - Total PGMs oz - 2,508 - Pandora Platinum oz 22,210 10,988 19,095 Palladium oz 10,298 5,203 8,756 Gold oz 81 74 143 Rhodium oz 3,819 1,867 2,992 Ruthenium oz 6,188 2,974 4,537 Iridium oz 1,174 488 837 Total PGMs oz 43,770 21,595 36,360 Lonmin Platinum before Platinum oz 378,736 213,475 364,178 concentrate purchases Palladium oz 174,485 99,613 164,844 Gold oz 8,494 5,060 8,962 Rhodium oz 56,685 31,016 48,500 Ruthenium oz 91,578 50,168 74,669 Iridium oz 17,700 10,203 16,960 Total PGMs oz 727,679 409,536 678,115 Concentrate purchases Platinum oz 3,249 1,642 1,880 Palladium oz 996 482 548 Gold oz 11 9 5 Rhodium oz 413 198 185 Ruthenium oz 545 212 197 Iridium oz 169 91 79 Total PGMs oz 5,383 2,634 2,896 Lonmin Platinum Platinum oz 381,984 215,117 366,059 Palladium oz 175,481 100,095 165,392 Gold oz 8,505 5,069 8,968 Rhodium oz 57,099 31,214 48,686 Ruthenium oz 92,123 50,380 74,866 Iridium oz 17,870 10,295 17,039 Total PGMs oz 733,062 412,170 681,010 Nickel 11 MT 1,838 1,087 1,789 Copper 11 MT 1,127 699 1,147

29  

Operating Statistics for the 6 months to 31 March 2015 (continued)

Units

6 months to

31 March 2015

6 months to

31 March 2014

6 months to

31 March 2013

Refined Lonmin refined metal Platinum oz 261,807 256,665 324,720 production production Palladium oz 120,080 128,283 145,964 Gold oz 6,670 6,360 9,049 Rhodium oz 36,898 62,953 35,746 Ruthenium oz 60,922 61,986 82,187 Iridium oz 11,903 18,817 12,853 Total PGMs oz 498,280 535,065 610,519 Toll refined metal Platinum oz 496 551 1,364 production Palladium oz 186 1,010 312 Gold oz 9 73 271 Rhodium oz 26 896 1,717 Ruthenium oz 1,946 4,482 5,185 Iridium oz 513 1,102 913 Total PGMs oz 3,176 8,114 9,762 Total refined PGMs Platinum oz 262,303 257,217 326,084 Palladium oz 120,267 129,293 146,276 Gold oz 6,679 6,433 9,321 Rhodium oz 36,924 63,848 37,463 Ruthenium oz 62,868 66,469 87,372 Iridium oz 12,416 19,919 13,766 Total PGMs oz 501,456 543,179 620,282 Base metals Nickel 12 MT 1,357 1,312 1,650 Copper 12 MT 786 764 1,030 Sales Lonmin Platinum Platinum oz 265,940 263,675 326,142 Palladium oz 124,248 136,573 140,775 Gold oz 7,050 6,500 8,337 Rhodium oz 31,189 53,993 33,469 Ruthenium oz 73,600 66,830 66,417 Iridium oz 12,720 19,843 11,614 Total PGMs oz 514,747 547,413 586,753 Nickel 12 MT 1,501 1,338 1,687 Copper 12 MT 784 804 1,024 Chrome 12 MT 767,413 505,101 651,010

Average prices Platinum $/oz 1,187 1,400 1,598 Palladium $/oz 784 735 713 Gold $/oz 1,510 1,510 1,529 Rhodium $/oz 1,182 1,003 1,196 Ruthenium $/oz 52 54 76 Iridium $/oz 544 490 1,005 Basket price of PGMs 13 $/oz 916 999 1,178 Basket price of PGMs 14 $/oz 988 1,056 1,252 Basket price of PGMs 13 R/oz 10,449 10,457 10,410 Basket price of PGMs 14 R/oz 11,263 11,049 11,056 Nickel 12 $/MT 12,263 11,572 14,184 Copper 12 $/MT 6,084 6,890 7,472 Chrome 12 $/MT 18 19 18

30  

Operating Statistics for the 6 months to 31 March 2015 (continued) Footnotes: 1 East 1 shaft is reported under Westerns in-line with changes in management structure. Prior years have been adjusted accordingly. 2 Pandora underground tonnes mined represents 100% of the total tonnes mined on the Pandora joint venture of which 42.5% for October and November 2014 and 50%

thereafter is attributable to Lonmin. 3 Limpopo underground tonnes mined represent low grade development tonnes mined whilst on care and maintenance. 4 Ounces mined have been calculated at achieved concentrator recoveries and with Lonmin standard downstream processing recoveries to present produced saleable ounces. 5 Tonnes milled exclude slag milling. 6 Lonmin purchases 100% of the ore produced by the Pandora joint venture for onward processing which is included in downstream operating statistics. 7 Limpopo tonnes milled represent low grade development tonnes milled. 8 Head Grade is the grammes per tonne (5PGE + Au) value contained in the tonnes milled and fed into the concentrator from the mines (excludes slag milled). 9 Recovery rate in the concentrators is the total content produced divided by the total content milled (excluding slag).

10 Metals-in-concentrate have been calculated at Lonmin standard downstream processing recoveries to present produced saleable ounces. 11 Corresponds to contained base metals in concentrate. 12 Nickel is produced and sold as nickel sulphate crystals or solution and the volumes shown correspond to contained metal. Copper is produced as refined product but

typically at LME grade C. Chrome is produced in the form of chromite concentrate and volumes shown are in the form of chromite. 13 Basket price of PGMs is based on the revenue generated in Rand and Dollar from the actual PGMs (5PGE + Au) sold in the period based on the appropriate Rand / Dollar

exchange rate applicable for each sales transaction. 14 As per note 13 but including revenue from base metals.

Units

6 months to

31 March 2015

6 months to

31 March 2014

6 months to

31 March 2013

Capital Rm 745 491 656 expenditure 1 $m 65 46 73 Employees and as at 31 March Employees # 28,462 28,676 27,694 contractors as at 31 March Contractors # 9,398 10,312 6,981 Exchange rates Average rate for period 2 R/$ 11.48 10.46 8.79 £/$ 1.55 1.64 1.58 Closing rate R/$ 12.13 10.54 9.22 £/$ 1.48 1.67 1.52 Underlying cost PGM operations Mining $m (406) (334) (467) of sales segment Concentrating $m (75) (61) (75) Smelting and refining 3 $m (57) (60) (68) Shared services $m (42) (36) (39)

Management and marketing services

$m

(15)

(14)

(13)

Ore and concentrate purchases

$m

(30)

(17)

(31)

Limpopo mining $m (1) (2) (4) Special item adjustment $m - 157 - Royalties $m (5) (3) (4) Share based payments $m (5) (13) (11) Inventory movement $m 124 (105) 129 FX and Group charges $m 19 15 28 Total PGM Operations (492) (473) (555) Evaluation – excluding FX $m - - - Exploration – excluding FX $m (4) (2) (1) Corporate – excluding FX $m - - (6) FX $m (4) - (2)

Total underlying cost of sales $m

(500)

(475)

(564)

PGM operations Mining Rm (4,662) (3,462) (4,136) segment Concentrating Rm (855) (626) (656) Smelting and refining 3 Rm (653) (619) (599) Shared services Rm (468) (381) (346)

31  

32  

Operating Statistics for the 6 months to 31 March 2015 (continued)

Units

6 months to

31 March 2015

6 months to

31 March 2014

6 months to

31 March 2013

Underlying cost PGM operations Management and marketing of sales Segment services Rm (159) (144) (122) (continued) Ore and concentrate

purchases

Rm

(343)

(181)

(278) Limpopo mining Rm (12) (17) (32) Special item adjustment Rm - 1,726 - Royalties Rm (47) (31) (33) Share based payments Rm (56) (134) (100) Inventory movement Rm 2,152 (923) 1,286 FX and group charges Rm (871) (481) (693) Rm (5,974) (5,272) (5,699) Cost of Cost Mining Rm (4,662) (3,462) (4,136) production Concentrating Rm (855) (626) (656) (PGM operations Smelting and refining 3 Rm (653) (619) (599) segment) 4 Shared services Rm (468) (381) (346)

Management and marketing services

Rm

(159)

(144)

(112)

Rm (6,796) (5,233) (5,849)

PGM saleable ounces Mined ounces excluding ore purchases

oz

648,818

380,556

650,883

Metals in concentrate before concentrate purchases

oz

727,679

407,029

678,115

Refined ounces oz 501,456 543,179 620,282

Metals in concentrate including concentrate purchases

oz

733,062

409,663

681,010

Cost of production Mining R/oz (7,186) (9,097) (6,355) Concentrating R/oz (1,175) (1,538) (968) Smelting and refining 3 R/oz (1,302) (1,140) (965) Shared services R/oz (638) (929) (508)

Management and marketing services R/oz

(216)

(352)

(165)

R/oz (10,516) (13,058) (8,960) % change in cost of Mining % (21.0)% 43.2% n/a production Concentrating % (23.6)% 58.9% n/a Smelting and refining 3 % 14.2% 18.1% n/a Shared services % (31.3)% 83.1% n/a Management and marketing

services

%

(38.6)%

114.0%

n/a % (19.5)% 45.7% n/a Footnotes: 1 Capital expenditure is the aggregate of the purchase of property, plant and equipment and intangible assets (includes capital accruals and excludes capitalised interest).

2 Exchange rates are calculated using the market average daily closing rate over the course of the period.

3 Comprises of smelting and refining costs as well as direct process operations shared costs.

4 It should be noted that with the implementation of the revised operating model in 2014 and 2015 the cost allocation between business units has been changed and, therefore, whilst the total is on a like-for-like basis, individual line items are not totally comparable.

33  

Responsibility  statement  of  the  directors  in  respect  of  the  interim  financial  report    We  confirm  that  to  the  best  of  our  knowledge:    

• the  condensed  set  of  financial  statements  has  been  prepared  in  accordance  with  IAS  34  Interim  Financial  Reporting  as  adopted  by  the  EU,  and    

• the  interim  management  report  includes  a  fair  review  of  the  information  required  by:    (a) DTR4.2.7R   of   the   Disclosure   and   Transparency   Rules,   being   an   indication   of   important   events   that   have  

occurred  during   the   first   six  months  of   the   financial  year  and  their   impact  on  the  condensed  set  of   financial  statements;  and  a  description  of  the  principal  risks  and  uncertainties  for  the  remaining  six  months  of  the  year;  and      

(b) DTR4.2.8R  of  the  Disclosure  and  Transparency  Rules,  being  related  party  transactions  that  have  taken  place  in  the   first   six  months   of   the   current   financial   year   and   that   have  materially   affected   the   financial   position   or  performance  of  the  enterprise  during  that  period;  and  any  changes  in  the  related  party  transactions  described  in  the  last  annual  report  that  could  do  so.      

   Brian  Beamish               Simon  Scott  Chairman               Chief  Financial  Officer    8  May  2015    

34  

INDEPENDENT  REVIEW  REPORT  TO  LONMIN  PLC      

Introduction      

We  have  been  engaged  by   the  company  to   review  the  condensed  set  of   financial   statements   in   the  half-­‐yearly   financial  report   for   the   six   months   ended   31   March   2015   which   comprises   the   consolidated   income   statement,   consolidated  statement  of  comprehensive   income,  consolidated  statement  of  financial  position,  consolidated  statement  of  changes   in  equity,   consolidated   statement   of   cash   flows   and   the   related   explanatory   notes.    We   have   read   the   other   information  contained   in  the  half-­‐yearly  financial  report  and  considered  whether   it  contains  any  apparent  misstatements  or  material  inconsistencies  with  the  information  in  the  condensed  set  of  financial  statements.      

This   report   is  made   solely   to   the   company   in   accordance  with   the   terms   of   our   engagement   to   assist   the   company   in  meeting  the  requirements  of  the  Disclosure  and  Transparency  Rules  (“the  DTR”)  of  the  UK’s  Financial  Conduct  Authority  (“the  UK  FCA”).    Our  review  has  been  undertaken  so  that  we  might  state  to  the  company  those  matters  we  are  required  to  state  to   it   in   this   report  and  for  no  other  purpose.    To  the   fullest  extent  permitted  by   law,  we  do  not  accept  or  assume  responsibility   to   anyone   other   than   the   company   for   our   review  work,   for   this   report,   or   for   the   conclusions   we   have  reached.      

Directors’  Responsibilities      

The   half-­‐yearly   financial   report   is   the   responsibility   of,   and   has   been   approved   by,   the   directors.     The   directors   are  responsible  for  preparing  the  half-­‐yearly  financial  report  in  accordance  with  the  DTR  of  the  UK  FCA.      

As  disclosed  in  note  1,  the  annual  financial  statements  of  the  group  are  prepared  in  accordance  with  IFRSs  as  adopted  by  the   EU.     The   condensed   set   of   financial   statements   included   in   this   half-­‐yearly   financial   report   has   been   prepared   in  accordance  with  IAS  34  Interim  Financial  Reporting  as  adopted  by  the  EU.      

Our  Responsibility      

Our  responsibility  is  to  express  to  the  company  a  conclusion  on  the  condensed  set  of  financial  statements  in  the  half-­‐yearly  financial  report  based  on  our  review.      

Scope  of  review      

We   conducted   our   review   in   accordance   with   International   Standard   on   Review   Engagements   (UK   and   Ireland)   2410  Review   of   Interim   Financial   Information   Performed   by   the   Independent   Auditor   of   the   Entity   issued   by   the   Auditing  Practices   Board   for   use   in   the   UK.     A   review   of   interim   financial   information   consists   of  making   enquiries,   primarily   of  persons  responsible  for  financial  and  accounting  matters,  and  applying  analytical  and  other  review  procedures.    A  review  is  substantially   less   in   scope   than   an   audit   conducted   in   accordance   with   International   Standards   on   Auditing   (UK   and  Ireland)  and  consequently  does  not  enable  us  to  obtain  assurance  that  we  would  become  aware  of  all  significant  matters  that  might  be  identified  in  an  audit.    Accordingly,  we  do  not  express  an  audit  opinion.      

Conclusion      

Based   on   our   review,   nothing   has   come   to   our   attention   that   causes   us   to   believe   that   the   condensed   set   of   financial  statements   in   the   half-­‐yearly   financial   report   for   the   six  months   ended   31  March   2015   is   not   prepared,   in   all  material  respects,  in  accordance  with  IAS  34  as  adopted  by  the  EU  and  the  DTR  of  the  UK  FCA.      

 

Robert  Seale    for  and  on  behalf  of  KPMG  LLP      Chartered  Accountants      15  Canada  Square  London  E14  5GL        8  May  2015  

35  

Consolidated income statement for the 6 months to 31 March 2015

6 months to 31 March

2015 Special

items

6 months to 31 March

2015

6 months to 31 March

2014 Special

items

6 months to 31 March

2014

Year ended 30 Sep

2014 Special

items

Year ended 30 Sep

2014

Underlying i (note 3) Total Underlying i (note 3) Total Underlying i (note 3) Total

Note $m $m $m $m $m $m $m $m $m

Revenue 2 508 - 508 578 - 578 965 - 965

EBITDA / (LBITDA) ii 2 8 (14) (6) 103 (165) (62) 194 307 (113) Depreciation, amortisation and impairment (78) - (78) (69) - (69) (142) - (142)

Operating (loss) / profit iii 2 (70) (14) (84) 34 (165) (131) 52 (307) (255) Impairment of available for sale financial assets - - - - - - - (1) (1) Finance income 4 7 9 16 4 21 25 26 18 44 Finance expenses 4 (12) (36) (48) (10) (160) (170) (28) (80) (108) Share of loss of equity accounted investments (2) - (2) (2) - (2) (4) (2) (6)

(Loss) / profit before taxation (77) (41) (118) 26 (304) (278) 46 (372) (326) Income tax credit / (charge) iv 5 9 24 33 (2) 69 67 (5) 128 123

(Loss) / profit for the period (68) (17) (85) 24 (235) (211) 41 (244) (203)

Attributable to: - Equity shareholders of Lonmin Plc (61) (18) (79) 20 (222) (202) 31 (219) (188) - Non-controlling interests (7) 1 (6) 4 (13) (9) 10 (25) (15) Loss per share 6 (13.6)c (35.5)c (33.0)c Diluted loss per share v 6 (13.6)c (35.5)c (33.0)c Footnotes:

i Underlying results and earnings / (loss) per share are based on reported results and earnings / (loss) per share excluding the effect of special items as defined in note 3.

ii EBITDA / (LBITDA) is operating (loss) / profit before depreciation, amortisation and impairment of goodwill, intangibles and property, plant and equipment.

iii Operating (loss) / profit is defined as revenue less operating expenses before impairment of available for sale financial assets, finance income and expenses and share of loss of equity accounted investments.

iv The income tax credit / (charge) substantially relates to overseas taxation and includes exchange gains of $21 million (6 months to 31 March 2014 - exchange gains of $23 million and year ended 30 September 2014 - exchange gains of $42 million) as disclosed in note 5.

v Diluted (loss) / earnings per share is based on the weighted average number of ordinary shares in issue adjusted by dilutive outstanding share options.

36  

Consolidated statement of comprehensive income for the 6 months to 31 March 2015

6 months to

31 March 2015

6 months to 31 March

2014

Year ended 30 September

2014 Note $m $m $m Loss for the period (85) (211) (203) Items that may be reclassified subsequently to the income statement

- Changes in fair value of available for sale financial assets 8 (1) (1) (1) - Foreign exchange loss on retranslation of equity accounted investments (4) (2) (3) - Deferred tax on items taken directly to the statement of comprehensive income - 1 - Total other comprehensive expenses for the period (5) (2) (4) Total comprehensive loss for the period (90) (213) (207) Attributable to: - Equity shareholders of Lonmin Plc (84) (204) (192) - Non-controlling interests (6) (9) (15) (90) (213) (207)

37  

Consolidated statement of financial position as at 31 March 2015

As at

31 March 2015

As at 31 March

2014

As at 30 September

2014 Note $m $m $m Non-current assets Goodwill 40 40 40 Intangible assets 455 460 457 Property, plant and equipment 2,874 2,891 2,882 Equity accounted investments 28 32 28 Royalty prepayment 11 39 - - Other financial assets 8 25 289 27 3,461 3,712 3,434 Current assets Inventories 496 351 373 Trade and other receivables 11 75 55 76 Tax recoverable 2 1 2 Other financial assets 8 310 - 337 Cash and cash equivalents 9 60 660 143 943 1,067 931 Current liabilities Trade and other payables 11 (215) (166) (244) Interest bearing loans and borrowings 9 (80) (277) (86) Deferred revenue (26) (23) (27) (321) (466) (357) Net current assets 622 601 574 Non-current liabilities Interest bearing loans and borrowings 9 (262) (312) (86) Deferred tax liabilities (342) (431) (376) Deferred royalty payment 11 (4) - - Deferred revenue (14) (37) (23) Provisions (131) (138) (141) (753) (918) (626) Net assets 3,330 3,395 3,382 Capital and reserves Share capital 583 569 570 Share premium 1,448 1,411 1,411 Other reserves 88 88 88 Retained earnings 1,087 1,151 1,164 Attributable to equity shareholders of Lonmin Plc 3,206 3,219 3,233 Attributable to non-controlling interests 124 176 149 Total equity 3,330 3,395 3,382

38  

Consolidated statement of changes in equity for the 6 months to 31 March 2015

Equity shareholders' funds

Called up

share capital

$m

Share premium account

$m

Other reserves i

$m

Retained earnings

ii $m

Total $m

Non- controlling interests iii

$m

Total equity

$m At 1 October 2013 569 1,411 88 1,341 3,409 201 3,610 Loss for the period - - - (202) (202) (9) (211) Total other comprehensive expense: - - - (2) (2) - (2) - Change in fair value of available for sale financial assets - - - (1) (1) - (1)

- Foreign exchange loss on retranslation of equity accounted investments - - - (2) (2) - (2)

- Deferred tax on items taken directly to the statement of comprehensive income - - - 1 1 - 1

Transactions with owners, recognised directly in equity: - - - 14 14 (16) (2)

- Share-based payments - - - 14 14 - 14 - Dividends - - - - - (16) (16) At 31 March 2014 569 1,411 88 1,151 3,219 176 3,395 At 1 April 2014 569 1,411 88 1,151 3,219 176 3,395 Profit for the period - - - 14 14 (6) 8 Total other comprehensive expense: - - - (2) (2) - (2) - Foreign exchange loss on retranslation of equity accounted investments - - - (1) (1) - (1)

- Deferred tax on items taken directly to the statement of comprehensive income - - - (1) (1) - (1)

Transactions with owners, recognised directly in equity: 1 - - 1 2 (21) (19)

- Share-based payments - - - 1 1 - 1 - Shares issued on exercise of share options 1 - - - 1 - 1 - Dividends - - - - - (21) (21) At 30 September 2014 570 1,411 88 1,164 3,233 149 3,382

39  

Consolidated statement of changes in equity (continued) for the 6 months to 31 March 2015

Equity shareholders' funds

Called up share

capital $m

Share premium account

$m

Other reserves i

$m

Retained earnings

ii $m

Total $m

Non- controlling interests iii

$m

Total equity

$m

At 1 October 2014 570 1,411 88 1,164 3,233 149 3,382 Loss for the period - - - (79) (79) (6) (85) Total other comprehensive expense: - - - (5) (5) - (5) - Change in fair value of available for sale financial assets - - - (1) (1) - (1)

- Foreign exchange loss on retranslation of equity accounted investments - - - (4) (4) - (4)

Transactions with owners, recognised directly in equity: 13 37 - 7 57 (19) 38

- Share-based payments - - - 7 7 - 7 - Share capital and share premium recognised on the BEE transactions iv 13 37 - - 50 - 50

- Dividends - - - - - (19) (19) At 31 March 2015 583 1,448 88 1,087 3,206 124 3,330 Footnotes:

i Other reserves at 31 March 2015 represent the capital redemption reserve of $88 million (31 March 2014 and 30 September 2014 - $88 million).

ii Retained earnings include $3 million of accumulated credits in respect of fair value movements on available for sale financial assets (31 March 2014 - $4 million and 30 September 2014 - $4 million) and a $13 million debit of accumulated exchange on retranslation of equity accounted investments (31 March 2014 - $8 million debit and 30 September 2014 - $9 million debit).

iii Non-controlling interests represent a 13.76% effective shareholding in Eastern Platinum Limited, Western Platinum Limited and Messina Limited and a 19.87% effective shareholding in Akanani Mining (Proprietary) Limited.

iv In December 2014, Lonmin concluded a series of shareholding agreements with the Bapo baMogale Traditional Community (the Bapo) which enabled Lonmin to meet its BEE equity ownership target as required under the Mining Charter. Refer to note 11 for more detail.

40  

Consolidated statement of cash flows for the 6 months to 31 March 2015

6 months to

31 March 2015

6 months to 31 March

2014

Year ended 30 September

2014 Note $m $m $m Loss for the period (85) (211) (203) Taxation 5 (33) (67) (123) Share of loss after tax of equity accounted investments 2 2 6 Finance income 4 (16) (25) (44) Finance expenses 4 48 170 108 Impairment of available for sale financial assets 3 - - 1 Non-cash movement on deferred revenue (10) (10) (20) Depreciation, amortisation and impairment 78 69 142 Change in inventories (124) 98 76 Change in trade and other receivables 1 31 7 Change in trade and other payables (31) (129) (51) Change in provisions (15) (6) (14) Share-based payments 7 14 15 Loss on scrapping of property, plant and equipment 3 - - BEE charge 3 13 - - Cash outflow from operations (162) (64) (100) Interest received 3 2 15 Interest and bank fees paid (11) (10) (31) Tax recovered - 1 - Cash outflow from operating activities (170) (71) (116) Cash flow from investing activities Contribution to joint venture (2) - (1) Purchase of property, plant and equipment (64) (45) (91) Purchase of intangible assets (1) (1) (2) Cash outflow from investing activities (67) (46) (94) Cash flow from financing activities Dividends paid to non-controlling interests (19) (16) (37) Proceeds from current borrowings 9 - 395 605 Repayment of current borrowings 9 - (118) (518) Proceeds from non-current borrowings 9 180 312 88 Issue of ordinary share capital - - 1 Cash inflow from financing activities 161 573 139 (Decrease) / increase in cash and cash equivalents 9 (76) 456 (71) Opening cash and cash equivalents 9 143 201 201 Effect of exchange rate changes 9 (7) 3 13 Closing cash and cash equivalents 9 60 660 143

41  

Notes  to  the  accounts      1   Statement  on  accounting  policies    Basis  of  preparation    Lonmin  Plc  (the  Company)   is  a  Company  domiciled  in  the  United  Kingdom.  The  condensed  consolidated  interim  financial  statements  of   the  Company  as   at   and   for   the   six  months   to  31  March  2015   comprise   the  Company  and   its   subsidiaries  (together  referred  to  as  the  Group)  and  the  Group's  interests  in  equity  accounted  investments.    These   condensed   consolidated   interim   financial   statements   have   been   prepared   in   accordance   with   IAS   34   -­‐   Interim  Financial  Reporting,  as  adopted  by  the  EU.  The  annual  financial  statements  of  the  Group  are  prepared  in  accordance  with  International  Financial  Reporting  Standards  (IFRSs),  as  adopted  by  the  EU.  As  required  by  the  Disclosure  and  Transparency  Rules   of   the   Financial   Conduct   Authority,   the   condensed   set   of   financial   statements   have   been   prepared   applying   the  accounting   policies   and   presentation   that   were   applied   in   the   preparation   of   the   Company’s   published   consolidated  financial   statements   for   the   year   ended   30   September   2014,   except   as   noted   below.   They   do   not   include   all   of   the  information  required  for  full  annual  financial  statements  and  should  be  read  in  conjunction  with  the  consolidated  financial  statements  of  the  Group  for  the  year  ended  30  September  2014.    The  comparative   figures   for   the   financial  year  ended  30  September  2014  are  not   the  Group's   full   statutory  accounts   for  that   financial   year.   Those   accounts   have   been   reported   on   by   the   Group's   auditors   and   delivered   to   the   registrar   of  companies.   The   report   of   the   auditors  was   (i)   unqualified,   (ii)   did   not   include   a   reference   to   any  matters   to  which   the  auditors  drew  attention  by  way  of  emphasis  without  qualifying   their   report,  and   (iii)  did  not   contain  a   statement  under  section  498  (2)  or  (3)  of  the  Companies  Act  2006.    The  consolidated  financial  statements  of  the  Group  as  at  and  for  the  year  ended  30  September  2014  are  available  upon  request  from  the  Company's  registered  office  at  4  Grosvenor  Place,  London,  SW1X  7YL.    These  condensed  consolidated  interim  financial  statements  were  approved  by  the  Board  of  Directors  on  8  May  2015.    These   condensed   consolidated   interim   financial   statements   apply   the   accounting   policies   and   presentation   that  will   be  applied   in  the  preparation  of  the  Group's  published  consolidated  financial  statements  for  the  year  ending  30  September  2015.    Going  concern    In   determining   the   appropriate   basis   of   preparation   of   the   financial   statements,   the  Directors   are   required   to   consider  whether  the  Group  can  continue  in  operational  existence  for  the  foreseeable  future.    The  debt  facilities  currently  available  to  the  Group  are  summarised  as  follows:    - Revolving  Credit  Facility  of  $400  million  at  a  Lonmin  Plc  level  maturing  in  May  2016;  and  - Three   bilateral   facilities   of   R660   million   each   at   Western   Platinum   Limited   (WPL)   level   each   comprising   R330  million   maturing   in   June   2016   and   R330   million   one   year   committed   component   that   can   be   rolled   annually   at   the  discretion  of  the  bank.      The   capital   structure   places   the  Group   in   a   strong   position   to   ride   the   normal  working   capital   cycles  while   providing   a  buffer  to  withstand  the  effects  of  operational  shocks  that  the  business  may  face.  The   financial   performance   of   the   Group   is   also   dependent   upon   the  wider   economic   environment   in  which   the   Group  operates.  Factors  exist  which  are  outside  the  control  of  management  which  can  have  a  significant  impact  on  the  business,  specifically,  volatility  in  the  Rand  /  US  Dollar  exchange  rate  and  PGM  commodity  prices.    

 

42  

Notes  to  the  accounts  (continued)    1   Statement  on  accounting  policies  (continued)    Going  concern  (continued)  

In  assessing  the  Group’s  ability  to  continue  as  a  going  concern,  the  Directors  have  prepared  cash  flow  forecasts  for  a  period  in   excess  of   12  months.  Various   scenarios  have  been   considered   to   test   the  Group’s   resilience  against  operational   risks  including:  

- Adverse  movements  in  the  Rand  /  US  Dollar  exchange  rate  and  PGM  commodity  prices  or  a  combination  thereof.  - Failure  to  meet  forecast  production  targets.      The  Directors  have  concluded  that  the  Group’s  capital  structure  provides  sufficient  head  room  to  cushion  against  downside  operational  risks  and  minimises  the  risk  of  breaching  debt  covenants.  As  a  result,  the  Directors  believe  that  the  Group  will  continue   to  meet   its  obligations  as   they   fall  due  and  comply  with   its   financial  covenants  and  accordingly  have   formed  a  judgement  that  it  is  appropriate  to  prepare  the  financial  statements  on  a  going  concern  basis.    Therefore,  these  financial  statements  do  not  include  any  adjustments  that  would  result  if  the  going  concern  basis  on  preparation  is  inappropriate.    New  standards  and  amendments  in  the  period    The   following   IFRS’s  have  been  adopted   in   these  condensed  consolidated   financial   statements.  The  application  of   these  IFRS’s  have  not  had  any  material  impact  on  the  amounts  reported  for  the  current  and  prior  periods.    - IFRS  10,  IFRS  11,  IFRS  12  and  amendments  to  IAS  28  regarding  Consolidated  Financial  Statements,  Joint  Arrangements,  

Disclosure   of   Interests   in   Other   Entities   and   Investments   in   Associates   and   Joint   Ventures   did   not   have   a  material  impact  on  the  amounts  reported  for  the  current  and  prior  years.      

- IAS  32  –  Offsetting  financial  assets  and  financial  liabilities.    The  amendments  clarify  when  an  entity  can  offset  financial  assets  and  financial  liabilities.    

- IAS   36   –   Recoverable   amount   disclosures   on   non   -­‐   financial   assets.     The   amendments   reverse   the   unintended  requirement  in  IFRS  13  Fair  Value  Measurement  to  disclose  the  recoverable  amount  of  every  cash-­‐generating  unit  to  which   significant   goodwill   or   indefinite-­‐lived   intangible   assets   have   been   allocated.     Under   the   amendments,   the  recoverable  amount  is  required  to  be  disclosed  only  when  an  impairment  loss  has  been  recognised  or  reversed.    

- IAS  39  Financial  Instruments:    Recognition  and  Measurement  requires  an  entity  to  discontinue  hedge  accounting  if  the  derivative  hedging  instrument  is  novated  to  a  clearing  counterparty,  unless  the  hedging  instrument  is  being  replaced  as  part  of  the  entity’s  original  documented  hedging  strategy.    

- IFRC  21  –  Levies.    Levies  have  become  more  common  in  recent  years,  with  governments  in  a  number  of  jurisdictions  introducing  levies  to  raise  additional  income.    IFRIC  21  provides  guidance  on  accounting  for  levies  in  accordance  with  IAS  37  Provisions,  Contingent  Liabilities  and  Assets.  

 There  were  no  other  new  standards,  interpretations  or  amendments  to  standards  issued  and  effective  for  the  period  which  materially  impacted  the  Group.    

43  

 

Notes  to  the  accounts  (continued)    1   Statement  on  accounting  policies  (continued)    New  standards  that  are  relevant  to  the  Group  but  not  yet  effective      The  following  new  standards,  interpretations  or  amendments  to  standards  were  issued,  but  not  yet  effective  for  the  period  which  are  not  expected  to  materially  impact  the  Group’s  financial  statements.    

- Investment   Entities:     Applying   the   Consolidation   Exception   (Amendments   to   IFRS   10,   IFRS   12   and   IAS   28).     The  amendment   to   IFRS   10   Consolidated   Financial   Statements   clarifies   which   subsidiaries   of   an   investment   entity   are  consolidated  instead  of  being  measured  at  fair  value  through  profit  and  loss.  - Disclosure  Initiative  (Amendments  to  IAS  1).    The  amendments  provide  additional  guidance  on  the  application  of  materiality  and  aggregation  when  preparing  financial  statements.  

 2   Segmental  analysis    The   Group   distinguishes   between   three   reportable   operating   segments   being   the   Platinum   Group   Metals   (PGM)  Operations  segment,  the  Evaluation  segment  and  the  Exploration  segment.      The   PGM   Operations   segment   comprises   the   activities   involved   in   the   mining   and   processing   of   PGMs,   together   with  associated  base  metals,  which  are  carried  out  entirely   in  South  Africa.  These  operations  are   integrated  and  designed   to  support  the  process  for  extracting  and  refining  PGMs  from  underground.  PGMs  move  through  each  stage  of  the  process  and  undergo  successive  levels  of  refinement  which  result  in  fully  refined  metals.  The  Chief  Executive  Officer,  who  performs  the  role  of  Chief  Operating  Decision  Maker  (CODM),  views  the  PGM  Operations  segment  as  a  single  whole  for  the  purposes  of   financial  performance  monitoring  and  assessment  and  does  not  make   resource  allocations  based  on  margin,   costs  or  cash   flows   incurred   at   each   separate   stage   of   the   process.   In   addition,   the   CODM  makes   his   decisions   for   running   the  business  on  a  day   to  day  basis  using  the  physical  operating  statistics  generated  by  the  business  as   these  summarise   the  operating  performance  of  the  entire  segment.    The  Evaluation  segment  covers  the  evaluation  through  pre-­‐feasibility  of  the  economic  viability  of  newly  discovered  PGM  deposits.  Currently  all  of  the  evaluation  projects  are  based  in  South  Africa.    The  Exploration  segment  covers  the  activities  involved  in  the  discovery  or  identification  of  new  PGM  deposits.  This  activity  occurs  on  a  worldwide  basis.    No  operating  segments  have  been  aggregated.  Operating  segments  have  consistently  adopted   the  consolidated  basis  of  accounting  and  there  are  no  differences  in  measurement  applied.  Other  covers  mainly  the  results  and  investment  activities  of  the  corporate  Head  Office.  The  only  intersegment  transactions  involve  the  provision  of  funding  between  segments  and  any  associated  interest.  

44  

Notes  to  the  accounts  (continued)    2   Segmental  analysis  (continued)   6 months to 31 March 2015

PGM Operations

Segment $m

Evaluation Segment

$m

Exploration Segment

$m Other

$m

Intersegment Adjustments

$m Total

$m Revenue (external sales by product):

Platinum 316 - - - - 316 Palladium 97 - - - - 97 Gold 11 - - - - 11 Rhodium 37 - - - - 37 Ruthenium 4 - - - - 4 Iridium 7 - - - - 7 PGMs 472 - - - - 472 Nickel 18 - - - - 18 Copper 5 - - - - 5 Chrome 13 - - - - 13

508 - - - - 508 Underlying i : EBITDA / (LBITDA) ii 16 3 (3) (8) - 8 Depreciation, amortisation and impairment (78) - - - - (78)

Operating (loss) / profit ii (62) 3 (3) (8) - (70) Finance income 6 - - 10 (9) 7 Finance expenses (15) - - (6) 9 (12) Share of loss of equity accounted investments (2) - - - - (2)

(Loss) / profit before taxation (73) 3 (3) (4) - (77) Income tax credit 9 - - - - 9 Underlying (loss) / profit after taxation (64) 3 (3) (4) - (68) Special items (note 3) 11 - - (28) - (17) (Loss) / profit after taxation (53) 3 (3) (32) - (85) Total assets iii 3,864 275 2 1,656 (1,393) 4,404 Total liabilities (2,029) (183) (52) (203) 1,393 (1,074) Net assets / (liabilities) 1,835 92 (50) 1,453 - 3,330 Share of net assets of equity accounted investments 28 - - - -

28

Additions to property, plant, equipment and intangibles 71 - - - -

71

Material non-cash items – share-based payments 7 - - - -

7

45  

Notes  to  the  accounts  (continued)    2   Segmental  analysis  (continued)   6 months to 31 March 2014 PGM

Operations Segment

$m

Evaluation Segment

$m

Exploration Segment

$m Other

$m

Intersegment Adjustments

$m Total

$m Revenue (external sales by product):

Platinum 369 - - - - 369 Palladium 100 - - - - 100 Gold 10 - - - - 10 Rhodium 54 - - - - 54 Ruthenium 4 - - - - 4 Iridium 10 - - - - 10 PGMs 547 - - - - 547 Nickel 15 - - - - 15 Copper 6 - - - - 6 Chrome 10 - - - - 10

578 - - - - 578 Underlying i : EBITDA / (LBITDA) ii 105 2 (2) (2) - 103 Depreciation, amortisation and impairment (69) - - - - (69) Operating profit / (loss) ii 36 2 (2) (2) - 34 Finance income 4 - - 10 (10) 4 Finance expenses (14) - - (6) 10 (10) Share of loss of equity accounted investments (2) - - - - (2)

Profit / (loss) before taxation 24 2 (2) 2 - 26 Income tax expense (2) - - - - (2) Underlying profit / (loss) after taxation 22 2 (2) 2 - 24 Special items (note 3) (96) - - (139) - (235) (Loss) / profit after taxation (74) 2 (2) (137) - (211)

Total assets iii 3,792 273 3 1,791 (1,080) 4,779 Total liabilities (1,807) (186) (46) (425) 1,080 (1,384) Net assets / (liabilities) 1,985 87 (43) 1,366 - 3,395

Share of net assets of equity accounted investments 32 - - - -

32

Additions to property, plant, equipment and intangibles 50 - - - -

50

Material non-cash items – share-based payments 14 - - - -

14

46  

Notes  to  the  accounts  (continued)    2   Segmental  analysis  (continued)   Year ended 30 September 2014 PGM

Operations Segment

$m

Evaluation Segment

$m

Exploration Segment

$m Other

$m

Intersegment Adjustments

$m Total

$m Revenue (external sales by product):

Platinum 620 - - - - 620 Palladium 165 - - - - 165 Gold 21 - - - - 21 Rhodium 85 - - - - 85 Ruthenium 7 - - - - 7 Iridium 15 - - - - 15 PGMs 913 - - - - 913 Nickel 29 - - - - 29 Copper 10 - - - - 10 Chrome 13 - - - - 13

965 - - - - 965 Underlying i : EBITDA / (LBITDA) ii 204 5 (6) (9) - 194 Depreciation, amortisation and impairment (142) - - - - (142) Operating profit / (loss) ii 62 5 (6) (9) - 52 Finance income 15 - - 21 (10) 26 Finance expenses (19) - - (19) 10 (28) Share of loss of equity accounted investments (4) - - - - (4) Profit / (loss) before taxation 54 5 (6) (7) - 46 Income tax expense (5) - - - - (5) Underlying profit / (loss) after taxation 49 5 (6) (7) - 41 Special items (note 3) (181) - - (63) - (244) (Loss) / profit after taxation (132) 5 (6) (70) - (203) Total assets iii 3,767 277 1 1,546 (1,226) 4,365 Total liabilities (1,940) (185) (48) (36) 1,226 (983) Net assets 1,827 92 (47) 1,510 - 3,382 Share of net assets of equity accounted investments 28 - - - - 28 Additions to property, plant, equipment and intangibles 109 2 - - - 111 Material non-cash items – share-based payments 14 - - 1 - 15

47  

Notes  to  the  accounts  (continued)    2   Segmental  analysis  (continued)    Revenue  by  destination  is  analysed  by  geographical  area  below:   6 months to

31 March 2015 $m

6 months to 31 March 2014

$m

Year ended 30 September 2014

$m The Americas 128 91 118 Asia 109 167 247 Europe 166 252 426 South Africa 105 68 174 508 578 965 The   Group's   revenues   are   all   derived   from   the   PGM  Operations   segment.   This   segment   has   two  major   customers   who  contributed  55%  ($279  million)  and  21%  ($107  million)  of  revenue  in  the  six  months  to  31  March  2015,  59%  ($341  million)  and   26%   ($150  million)   in   the   six  months   to   31  March   2014   and   60%   ($580  million)   and   25%   ($241  million)   in   the   year  ended  30  September  2014.    Metal  sales  prices  are  based  on  market  prices  which  are  denominated  in  US  Dollars.  The  majority  of  sales  are  also  invoiced  in  US  Dollars  with  the  exception  of  certain  sales  in  South  Africa  which  are  invoiced  in  South  African  Rand  based  on  exchange  rates  determined  in  accordance  with  the  contractual  arrangement.    Non-­‐current  assets  (excluding  financial   instruments)  of  $3,436  million  (31  March  2014  -­‐  $3,423  million  and  30  September  2014  -­‐  $3,407  million)  are  all  situated  in  South  Africa.   Footnotes:

i Underlying results are based on reported results excluding the effect of special items as defined in note 3.

ii (LBITDA) / EBITDA and operating (loss) / profit are the key profit measures used by management.

iii The assets under the “Other” segment include the HDSA receivable of $310 million (31 March 2014 - $260 million, 30 September 2014 - $337 million) and intercompany receivables of $1,323 million (31 March 2014 - $1,008 million, 30 September 2014 - $1,226 million).

48  

Notes to the accounts (continued) 3 Special items “Special items” are those items of financial performance that the Group believes should be separately disclosed on the face of the consolidated income statement to assist in the understanding of the financial performance achieved by the Group and for consistency with prior periods.

6 months to 31 March

2015

6 months to 31 March

2014

Year ended 30 September

2014

$m $m $m Operating loss: (14) (165) (307) - Strike related costs Idle fixed production costs - (157) (287) Contractors’ costs - (3) (3) Security costs - (4) (10) Other costs 1 - (7) - BEE transaction i BEE charge (13) - - Consulting fees (2) - - - Restructuring and reorganisation costs - (1) - Impairment of available for sale financial assets - - (1) Share of loss of equity accounted investments - - (2) Net finance expenses: (27) (139) (62) - Interest accrued from HDSA receivable ii 9 9 18 - Foreign exchange (loss) / gain on HDSA receivable ii (36) 12 - - Impairment of HDSA receivable ii - (160) (80) Loss on special items before taxation (41) (304) (372) Taxation related to special items (note 5) 24 69 128 Loss before non-controlling interests (17) (235) (244) Non-controlling interests (1) 13 25 Special loss for the period attributable to equity shareholders of Lonmin Plc (18) (222) (219) Footnotes:

i In December 2014, Lonmin concluded a series of shareholding agreements with the Bapo beMogale Traditional Community (the Bapo) which enabled Lonmin to meet its BEE equity ownership target as required under the Mining Charter. This gave rise to a BEE charge of $13 million relating to the premium paid for the Bapo to maintain their shareholding for a period of 10 years. Consulting fees to the amount of $2 million were also incurred in relation to the transaction. Refer to note 11.

ii During the year ended 30 September 2010 the Group provided financing to assist Lexshell 806 Investments (Proprietary) Limited, a subsidiary of Shanduka Resources (Proprietary) Limited (Shanduka) to acquire a majority shareholding in Incwala, Lonmin's Black Economic Empowerment partner. This financing gave rise to foreign exchange movements and the accrual of interest. Refer to note 8 for details regarding the impairment review for the HDSA receivable.

49  

Notes to the accounts (continued) 4 Net finance expenses

6 months to 31 March

2015

6 months to 31 March

2014

Year ended 30 September

2014

$m $m $m Finance income: 7 4 26 - Interest receivable on cash and cash equivalents 2 2 6 - Dividend received from investment i 1 - 10 - Foreign exchange gains on (debt) / net cash ii 4 2 10 Finance expenses: (12) (10) (28) - Interest payable on bank loans and overdrafts (9) (5) (19) - Bank fees (4) (5) (12) - Capitalised interest iii 6 4 13 - Unwind of discounting on provisions (5) (4) (10) Special items (note 3): (27) (139) (62) - Interest on HDSA receivable 9 9 18 - Foreign exchange (loss) / gain on HDSA receivable (36) 12 - - Impairment of HDSA receivable iv - (160) (80) Net finance expenses (32) (145) (64) Footnotes:

i Dividends received relate to arrear dividends accruing from our investment in Petrozim Line (Private) Limited which were remitted during the year. The investment in Petrozim Line (Private) Limited has a $nil carrying value.

ii Net (debt) / cash as defined by the Group comprises cash and cash equivalents, bank overdrafts repayable on demand and interest bearing loans and borrowings less unamortised bank fees, unless the unamortised bank fees relate to undrawn facilities in which case they are treated as other receivables.

iii Interest expenses incurred have been capitalised on a Group basis to the extent that there is an appropriate qualifying asset. The weighted average interest rate used by the Group for capitalisation in the period was 3.8% (6 months to 31 March 2014 – 5.0%, year ended 30 September 2014 – 3.0%).

iv The impairment of the HDSA loan amounted to $nil for the six months ended 31 March 2015 (31 March 2014 – impairment of $160 million and 30 September 2014 –impairment of $80 million). Refer to note 8 for more detail.

50  

Notes to the accounts (continued) 5 Taxation

6 months to 31 March

2015 $m

6 months to 31 March

2014 $m

Year ended 30 September

2014 $m

Current tax charge (excluding special items): United Kingdom tax expense - Current tax expense at 21% (March 2014 - 23%, September 2014 – 22%) i - - - Overseas current tax expense at 28% (2014 – 28%) - 2 2 - Corporate tax expense – current year - 2 1 - Adjustment in respect of prior years - - 1 Deferred tax (credit) / charge (excluding special items): Deferred tax (credit) / expense – UK and overseas (9) - 3 - Origination and reversal of temporary differences (9) 4 3 - Adjustment in respect of prior years - (4) - Tax credit on special items - UK and overseas (note 3): (24) (69) (128) - Foreign exchange on deferred taxation ii (21) (23) (42) - Tax on special items impacting profit before tax (3) (46) (86) Actual tax credit (33) (67) (123) Tax (credit) / charge excluding special items (note 3) (9) 2 5 Effective tax rate (28%) (24%) (38%) Effective tax rate excluding special items (note 3) (12%) 8% 11%

51  

Notes  to  the  accounts  (continued)    5   Taxation  (continued)    A  reconciliation  of  the  standard  tax  credit  to  the  actual  tax  credit  was  as  follows:  

6 months

to 31 March

2015

6 months to

31 March 2015

6 months to 31 March

2014

6 months to 31 March

2014

Year ended 30 September

2014

Year ended 30 September

2014

% $m % $m % $m

Tax credit on loss at standard tax rate (28) (33) (28) (78) (28) (91) Tax effect of: - Unutilised losses iii 14 17 13 38 2 7 - Foreign exchange impacts on taxable profits (16) (19) (3) (9) (7) (21) - Adjustment in respect of prior years - - (1) (4) - - - Disallowed expenditure 18 21 2 7 6 19 - Expenses not subject to tax 2 2 1 2 2 5 - Special items as defined above (18) (21) (8) (23) (13) (42)

Actual tax credit (28) (33) (24) (67) (38) (123)

The  Group's  primary  operations  are  based  in  South  Africa.  The  South  African  statutory  tax  rate  is  28%  (2014  -­‐  28%).    Lonmin  Plc  operates  a  branch  in  South  Africa  which  is  subject  to  a  tax  rate  of  28%  on  branch  profits  (2014  –  28%).    The  aggregated  standard  tax  rate  for  the  Group   is  28%  (2014  –  28%).    The  dividend  withholding  tax  rate   is  15%  (2014  –  15%).    Dividends  payable  by  the  South  African  companies  to  Lonmin  Plc  are  subject  to  a  5%  withholding  tax  benefitting  from  double  taxation  agreements.       Footnotes:

i Effective from 1 April 2015 the United Kingdom tax rate will changed from 21% to 20%. This does not materially impact the Group's recognised deferred tax liabilities.

ii Overseas tax charges are predominantly calculated in Rand as required by the local authorities. As these subsidiaries’ functional currency is US Dollar this leads to a variety of foreign exchange impacts being the retranslation of current and deferred tax balances and monetary assets, as well as other translation differences. The Rand denominated deferred tax balance in US Dollars at 31 March 2015 is $250 million (31 March 2014 - $366 million, 30 September 2014 - $268 million).

iii Unutilised losses reflect losses generated in entities for which no deferred tax is provided as it is not thought probable that future profits can be generated against which a deferred tax asset could be offset or previously unrecognised losses utilised.

52  

Notes  to  the  Accounts  (continued)    6   Loss  per  share    Loss  per  share  (LPS)  has  been  calculated  on  the   loss   for   the  period  attributable  to  equity  shareholders  amounting  to  $79  million  (6  months  to  31  March  2014  -­‐   loss  of  $202  million,  year  ended  30  September  2014  -­‐   loss  of  $188  million)  using  a  weighted  average  number  of  579.3  million  ordinary   shares   in   issue   for   the  6  months   to  31  March  2015   (6  months   to  31  March  2014  –  569.5  million  ordinary  shares,  year  ended  30  September  2014  –  569.6  million  ordinary  shares).    Diluted  loss  per  share  is  based  on  the  weighted  average  number  of  ordinary  shares  in  issue  adjusted  by  dilutive  outstanding  share  options  in  accordance  with  IAS  33  -­‐  Earnings  Per  Share.    In  the  6  months  to  31  March  2015  outstanding  share  options  were  anti-­‐dilutive  and  so  were  excluded  from  diluted  loss  per  share  in  accordance  with  IAS  33  –  Earnings  Per  Share.   6 months to 31 March 2015 6 months to 31 March 2014 Year ended 30 September 2014

Loss for the period

Number of shares

Per share amount

Loss for the period

Number of shares

Per share

amount

Loss for the

year Number

of shares

Per share

amount $m millions cents $m millions cents $m millions cents Basic LPS (79) 579.3 (13.6) (202) 569.5 (35.5) (188) 569.6 (33.0) Share option schemes - - - - - - - - - Diluted LPS (79) 579.3 (13.6) (202) 569.5 (35.5) (188) 569.6 (33.0) 6 months to 31 March 2015 6 months to 31 March 2014 Year ended 30 September 2014

Loss for the period

Number of shares

Per share amount

Profit for the period

Number of shares

Per share

amount

Profit for the

year Number

of shares

Per share

amount

$m millions cents $m millions cents $m millions cents Underlying (LPS) / EPS (61) 579.3 (10.5) 20 569.5 3.5 31 569.6 5.4 Share option schemes - - - - - - - 5.9 - Diluted underlying (LPS) / EPS (61) 579.3 (10.5) 20 569.5 3.5 31 575.5 5.4  Underlying  (loss)  /  earnings  per  share  have  been  presented  as  the  Directors  consider  it  important  to  present  the  underlying  results   of   the   business.   Underlying   (loss)   /   earnings   per   share   are   based   on   the   (loss)   /   earnings   attributable   to   equity  shareholders  adjusted  to  exclude  special  items  (as  defined  in  note  3)  as  follows:   6 months to 31 March 2015 6 months to 31 March 2014 Year ended 30 September 2014

Loss for the period

Number of shares

Per share amount

(Loss)/ profit for

the period Number

of shares

Per share

amount

(Loss)/ profit for the year

Number of

shares

Per share

amount $m millions cents $m millions cents $m millions cents Basic LPS (79) 579.3 (13.6) (202) 569.5 (35.5) (188) 569.6 (33.0) Special items (note 3) 18 - 3.1 222 - 39.0 219 - 38.4 Underlying (LPS) / EPS (61) 579.3 (10.5) 20 569.5 3.5 31 569.6 5.4

53  

Notes  to  the  Accounts  (continued)    6   Loss  per  share  (continued)    Headline  loss  and  the  resultant  headline  loss  per  share  are  specific  disclosures  defined  and  required  by  the  Johannesburg  Stock  Exchange.    These  are  calculated  as  follows:  

6 months to 31 March

2015

6 months to 31 March

2014

Year ended 30 September

2014

$m $m $m Loss attributable to ordinary shareholders (under IAS 33) (79) (202) (188) Add back loss on scrapping of property, plant and equipment 3 - - Add back impairment of assets (note 3) - - 1 Tax related to the above items (1) - - Non-controlling interests - - - Headline loss (77) (202) (187)

6 months to 31 March 2015 6 months to 31 March 2014 Year ended 30 September

2014

Loss for the period

Number of shares

Per share

amount

Loss for the period

Number of shares

Per share

amount

Loss for the

year

Number of

shares

Per share

amount $m millions cents $m millions cents $m millions cents Headline LPS (77) 579.3 (13.3) (202) 569.5 (35.5) (187) 569.6 (32.8) Share option schemes - - - - - - - - - Diluted headline LPS (77) 579.3 (13.3) (202) 569.5 (35.5) (187) 569.6 (32.8) 7   Dividends    No  dividends  were  declared  during  the  period  (6  months  to  31  March  2014  and  year  ended  30  September  2014  -­‐  $nil).    A  subsidiary   to  Lonmin  Plc,  WPL,  made  advance  dividend  payments  of  $19  million   (R228  million)   (6  months   to  31  March  2014  -­‐  $16  million  (R166  million)  and  for  the  year  to  30  September  2014  -­‐  $37  million  (R408  million))  to  Incwala  Platinum  (Proprietary)  Limited  (IP).    IP  is  a  substantial  shareholder  in  the  Company’s  principal  operating  subsidiaries.    Total  advance  dividends  made  between  2009  and  2015  amount  to  R1,129  million.     IP  has  authorised  WPL  to  recover  these  amounts  by  reducing  future  dividends  that  would  otherwise  be  payable  to  all  shareholders.  

54  

Notes  to  the  Accounts  (continued)    8   Other  financial  assets  

Restricted

cash Available for

sale HDSA

receivable Total $m $m $m $m

At 1 October 2014 12 15 337 364 Interest accrued - - 9 9 Movement in fair value - (1) - (1) Foreign exchange differences (1) - (36) (37) At 31 March 2015 11 14 310 335

Restricted

cash Available

for sale HDSA

receivable Total $m $m $m $m

At 1 April 2014 13 16 260 289 Interest accrued 1 - 9 10 Foreign exchange differences (2) - (12) (14) Impairment (loss) / reversal - (1) 80 79 At 30 September 2014 12 15 337 364

Restricted

cash Available

for sale HDSA

receivable Total $m $m $m $m

At 1 October 2013 14 17 399 430 Interest accrued - - 9 9 Movement in fair value - (1) - (1) Foreign exchange differences (1) - 12 11 Impairment loss - - (160) (160) At 31 March 2014 13 16 260 289

6 months to 31 March

2015

6 months to 31 March

2014

Year ended 30 September

2014 Current assets Other financial assets 310 - 337 Non-current assets Other financial assets 25 289 27

55  

Notes  to  the  Accounts  (continued)

 8   Other  financial  assets  (continued)      Restricted  cash  deposits  are  in  respect  of  rehabilitation  obligations.    Available  for  sale  financial  assets  include  listed  investments  of  $10  million  (31  March  2014  -­‐  $12  million  and  30  September  2014  -­‐  $11  million)  held  at  fair  value  using  the  market  price  on  31  March  2015.    On  8   July   2010,   Lonmin  Plc   entered   into   an   agreement   to  provide   financing  of   £200  million   to   Lexshell   806   Investments  (Proprietary)  Limited,  a  subsidiary  of  Shanduka  Resources  (Proprietary)  Limited,  to  facilitate  the  acquisition,  at  fair  value,  of  50.03%   of   shares   in   Incwala   Resources   (Proprietary)   Limited   from   the   original   HDSA   shareholders.     The   terms   of   the  financing  provided  by  Lonmin  Plc  to  the  Shanduka  subsidiary  include  the  accrual  of  interest  on  the  HDSA  receivable  at  fixed  rates  based  on  a  principal  value  of  £200  million  which  is  repayable  after  5  years  including  accrued  interest,  or  earlier  at  the  Shanduka  subsidiary’s  discretion.    The  HDSA  receivable  is  repayable  on  8  July  2015.    The   HDSA   receivable   is   secured   on   shares   in   the   HDSA   borrower,   Lexshell   806   Investments   (Proprietary)   Limited,   a  subsidiary   of   Shanduka   Resources   (Proprietary)   Limited.     The   HDSA   borrower’s   only   asset   of   value   is   its   ultimate  shareholding  in  Incwala.    As  Incwala’s  principal  assets  are  investments  in  WPL,  EPL  and  Akanani,  all  subsidiaries  of  Lonmin  Plc,  the  value  in  use  models  for  the  Marikana  and  Akanani  CGU’s  are  applied  to  determine  the  value  of  Incwala  and  in  turn,  the  value  of  the  HDSA  borrower  (the  security).    The  value  of  the  security  is  $310  million  at  31  March  2015  which  is  in  line  with  the  carrying  amount  of  the  HDSA  receivable.    Key  assumptions  to  the  value  in  use  models  are  described  in  note  10.    

56  

Notes  to  the  Accounts  (continued)    9   Analysis  of  net  debt  i  

As at 1 October

2014 Cash flow

Foreign exchange and

non-cash movements

Transfer of unmortised

bank fees to other

receivables

As at 31 March

2015 $m $m $m $m $m

Cash and cash equivalents 143 (76) (7) - 60 Current borrowings (87) - 6 - (81) Non-current borrowings (88) (180) 5 - (263) Unamortised bank fees ii 3 - (1) - 2 Net debt as defined by the Group i (29) (256) 3 - (282)

As at 1 April

2014 Cash flow

Foreign exchange and non-cash

movements

Transfer of unmortised bank

fees to other receivables

As at 30 September

2014 $m $m $m $m $m

Cash and cash equivalents 660 (527) 10 - 143 Current borrowings (277) 190 - - (87) Non-current borrowings (312) 224 - - (88) Unamortised bank fees ii - - - 3 3 Net cash / (debt) as defined by the Group i 71 (113) 10 3 (29)

As at 1 October

2013 Cash flow

Foreign exchange and non-cash

movements

Transfer of unmortised bank

fees to other receivables

As at 31 March

2014 $m $m $m $m $m

Cash and cash equivalents 201 456 3 - 660 Current borrowings - (277) - - (277) Non-current borrowings - (312) - - (312) Net cash as defined by the Groupi 201 (133) 3 - 71 Footnotes:

i Net (debt) / cash as defined by the Group comprises cash and cash equivalents, bank overdrafts repayable on demand and interest bearing loans and borrowings less unamortised bank fees, unless the unamortised bank fees relate to undrawn facilities in which case they are treated as other receivables.

ii As at 31 March 2015 unamortised bank fees of $2 million relating to drawn facilities were offset against net debt (31 March 2014 - $4 million of unamortised bank fees relating to undrawn facilities were included in other receivables, 30 September 2014 - $3 million of unamortised bank fees relating to drawn facilities were offset against net debt).

Bank  debt  facilities  consists  of  a  $400  million  syndicated  revolving  credit  US  Dollar  facility  and  three  South  African  Rand  bilateral  facilities  of  R660  million  each.    The  main  features  of  the  $400  million  syndicated  facility  which  is  supported  by  BNP  Paribas  S.A.,  Citigroup  Global  Markets  Limited,  HSBC  Bank  Plc,  J.P.  Morgan  Limited,  Lloyds  TSB  Bank  Plc,  The  Royal  Bank  of  Scotland  N.V.  and  Standard  Chartered  Bank  are  as  follows:    • a  $400  million  five-­‐year  committed  revolving  credit  facility  that  matures  in  May  2016;  and  • the  margin  on  the  facility  is  in  the  range  300bps  to  375bps.  

57  

Notes  to  the  Accounts  (continued)    9   Analysis  of  net  debt  (continued)    The  three  R660  million  bilateral  facilities  are  at  Western  Platinum  Limited  level,  an  operating  company.  These  facilities  are  supported  by  FirstRand  Bank  Limited,  Investec  Bank  Limited  and  The  Standard  Bank  of  South  Africa  Limited.  The  main  features  of  these  facilities  are  as  follows:    • each  facility  is  of  a  revolving  credit  nature  and  consists  of  a  R330  million  five  year  committed  component  that  matures  

in   June  2016  and  a  R330  million  one  year  committed  component   that  can  be   rolled  annually  at   the  discretion  of   the  bank;  and  

• the  margins  on  these  facilities  vary  from  facility  to  facility  and  bank  to  bank.    The  following  financial  covenants  apply  to  these  facilities:    • consolidated  tangible  net  worth  will  not  be  less  than  $2,250  million;  • consolidated  net  debt  will  not  exceed  25%  of  consolidated  tangible  net  worth;  and  if:  

- in  respect  of  the  US  Dollar  Facilities  Agreement,  the  aggregate  amount  of  outstanding  loans  exceeds  $75  million  at  any  time  during  the  last  six  months  of  any  test  period;  or  

- in   respect   of   both   the  US  Dollar   Facilities  Agreement   and   the  Rand   Facilities  Agreements,   consolidated  net   debt  exceeds  $300  million  as  of  the  last  day  of  any  test  period,  

 the  capital  expenditure  of  the  Group  must  not  exceed  the  limits  set  out  in  the  table  below,  provided  that,  if  110%  of  budgeted   capital   expenditure   for   any   test   period   ending   on   or   after   30   September   2013   is   lower   than   the   capital  expenditure  limit  set  out  in  the  table  below  for  that  test  period,  then  the  capital  expenditure  limit  for  that  test  period  shall  be  equal  to  110%  of  such  budgeted  capital  expenditure.  

 Test  Period   Capital  expenditure     limit  (ZAR)  1  October  2012  to  31  March  2013  (inclusive)   800  000  000  1  October  2012  to  30  September  2013  (inclusive)   1  600  000  000  1  April  2013  to  31  March  2014  (inclusive)   1  800  000  000  1  October  2013  to  30  September  2014  (inclusive)   2  000  000  000  1  April  2014  to  31  March  2015  (inclusive)   3  000  000  000  1  October  2014  to  30  September  2015  (inclusive)   4  000  000  000  1  April  2015  to  31  March  2016  (inclusive)   4  000  000  000  1  October  2015  to  30  September  2016  (inclusive)   4  000  000  000    As  at  31  March  2015,  Lonmin  had  net  debt  of  $282  million,  comprising  of  cash  and  cash  equivalents  of  $60  million  and  borrowings  of  $342  million  (31  March  2014  -­‐  net  cash  of  $71  million  and  30  September  2014   -­‐  net  debt  of  $29  million).  Undrawn  facilities  amounted  to  $219  million  at  31  March  2015   (facilities  at  31  March  2014  were   fully  drawn  and  on  30  September  2014  undrawn  facilities  amounted  to  $400  million).  

58  

Notes  to  the  Accounts  (continued)    10   Impairment  of  Non-­‐financial  assets  (excluding  Inventories  and  deferred  tax)    The   Group’s   principal   non-­‐financial   assets   (excluding   inventories   and   deferred   tax   assets)   are   property,   plant   and  equipment,   intangibles   and   goodwill   associated   with   mining   and   processing   activities.     For   the   purpose   of   assessing  recoverable  amount,  these  assets  are  grouped  into  cash  generating  units  (CGUs).    The  Group’s  two  key  CGU’s  are:    - Marikana,   which   includes  Western   Platinum   Limited   (WPL)   and   Eastern   Platinum   Limited   (EPL).     The  Marikana   CGU  

mines  and  processes  substantially  all  of  the  ore  produced  by  the  Group;    and  - Akanani   Mining   (Proprietary)   Limited,   an   exploration   and   evaluation   asset   located   on   the   Northern   Limb   of   the  

Bushveld  Complex  in  South  Africa.    Recoverable  amount  is  the  higher  of  fair  value  less  costs  to  sell  and  value  in  use.    At  each  financial  reporting  date,  the  Group  assesses   whether   there   is   any   indication   that   those   assets   are   impaired.     If   any   such   indication   exists,   the   recoverable  amount  of  the  assets  is  estimated  in  order  to  determine  the  extent  of  the  impairment  (if  any).    Goodwill  and   intangible  assets  with  an   indefinite  useful   life  are   tested   for   impairment  annually   regardless  of  whether  an  indication  of  impairment  exists.    Items  of  property,  plant  and  equipment  that  are  not  in  use  are  reviewed  annually  for  impairment  on  a  fair  value  less  costs  to  sell  basis.    If  the  recoverable  amount  of  an  asset  (or  CGU)  is  estimated  to  be  less  than  its  carrying  amount,  the  carrying  amount  of  the  asset  (or  CGU)  is  reduced  to  its  recoverable  amount.    Any  impairment  is  recognised  immediately  as  an  expense.    Value  in  use    In  assessing  value  in  use,  the  estimated  future  cash  flows,  based  on  the  most  up  to  date  business  forecasts  or  studies  for  exploration  and  evaluation  assets,  are  discounted  to  their  present  value  using  a  pre-­‐tax  discount  rate  that  reflects  current  market  assessments  of  the  time  value  of  money  and  the  risks  specific  to  the  assets  for  which  estimates  of  future  cash  flows  have  not  been  adjusted.  The  key  assumptions  contained  within  the  business  forecasts  and  management’s  approach  to  determine  appropriate  values  are  set  out  below:  Key Assumption Management Approach PGM prices Projections are determined through a combination of the views of the Directors,

market estimates and forecasts and other sector information. The Platinum price is projected to be in the range of $1,268 to $2,011 (2014: $1,545 to $2,035) per ounce in real terms over the life of the mine. Palladium and Rhodium prices are expected to range between $822 and $1,269 (2014: $859 to $1,290) and $1,207 and $3,679 (2014: $1,372 to $2,531) respectively per ounce in real terms over the same period.

Production volume Projections are based on the capacity and expected operational capabilities of the mines, the grade of the ore, and the efficiencies of processing and refining operations.

Production costs Projections are based on current cost adjusted for expected cost changes as well as giving consideration to specific issues such as the difficulty in mining particular sections of the reef and the mining method employed.

Capital expenditure requirements Projections are based on the operational plan, which sets out the long-term plan of the business and is approved by the Board.

Foreign currency exchange rates Spot rates as at the end of the reporting period are applied. Reserves and resources of the CGU Projections are determined through surveys performed by Competent Persons and

the views of the Directors of the Company. Management  uses  past  experience  and  assessment  of  future  conditions,  together  with  external  sources  of  information  in  order  to  assign  values  to  the  key  assumptions.  

59  

Notes  to  the  Accounts  (continued)    10   Impairment  of  Non-­‐financial  assets  (excluding  Inventories  and  deferred  tax)  (continued)    Management  has  projected  cash  flows  over  the   life  of   the  relevant  mining  operation  which   is  significantly  greater  than  5  years.    For  the  Marikana  CGU  a  life  of  mine  spanning  until  2058  was  applied.    For  the  Akanani  CGU  the  life  of  mine  spans  until  2049.    Projecting  cash  flows  over  a  period  longer  than  5  years  is  in  line  with  industry  practice  and  is  supported  by  the  Group’s  history  of  the  resources  expected  to  be  found  being  proven  to  exist.    Management  does  not  apply  a  growth  rate  because  a  detailed  life  of  mine  plan  is  used  to  forecast  future  production  volumes.    For   each   CGU   a   risk-­‐adjusted   pre-­‐tax   discount   rate   is   used   for   impairment   testing.     The   key   factors   affecting   the   risk  premium   applied   are   the   relevant   stage   of   the   development   of   the   asset   in   the   CGU   (extensions   to   existing   operations  having  significantly  lower  risk  than  evaluation  projects  for  example),  the  level  of  knowledge  and  consistency  of  the  ore  body  and  sovereign  risk.    The  rate  applied  in  the  Marikana  CGU  for  2015  was  11.8%  real  (31  March  2014  and  September  2014  –  11.8%  real).    The  rate  applied  for  the  exploration  and  evaluation  asset  in  the  Akanani  CGU  for  2015  was  16.5%  nominal  (31  March  2014  –  15.4%  and  30  September  2014  –  16.5%  nominal).    In   preparing   the   financial   statements,   management   has   considered   whether   a   reasonably   possible   change   in   the   key  assumptions  on  which  management  has  based  its  determination  of  the  recoverable  amounts  of  the  CGUs  would  cause  the  units’  carrying  amounts  to  exceed  their   recoverable  amounts.    For   the  Marikana  CGU  management  do  not  believe  that  a  reasonably  possible  change   in  any  of   the  key  assumptions  would   lead  to   impairment.    The  Akanani  CGU  was   impaired   in  2012,  and  as   such  a  change   to  any  of   the  key  assumptions  would   lead   to   further   impairment  or   reversal  of   the  previous  impairment.     The   approximate   effects   on   impairment   of   the   Akanani   CGU   of  movements   in   the   three   key   assumptions  would  be  as  follows:    

Assumption   Movement  in  assumption  Approximate  impact  on  

carrying  amount        

Metal  prices   +/-­‐5%   $26m  /  ($39m)  ZAR:USD  exchange  rate   -­‐/+5%   $18m  /  ($34m)  Discount  rates   +100  basis  points   $57m  /  ($58m)    Fair  value  less  costs  to  sell    Fair  value  less  costs  to  sell  has  been  determined  by  reference  to  the  best  information  available  to  reflect  the  amount  that  the  Group  could  receive  for  the  CGU  in  an  arm’s  length  transaction.    When  comparable  market  transactions  or  public  valuations  of  similar  assets  exist  these  are  used  as  a  source  of  evidence.    However,  the  Group  believes  that  mining  CGUs  tend  to  be  unique  and  have  their  value  determined  largely  by  the  nature  of  the   underlying   ore   body.     The   fair   value   therefore   is   typically   determined   by   calculating   the   value   of   the   CGU   using   an  appropriate  valuation  methodology  such  as  calculating  the  post-­‐tax  net  present  value  using  a  discounted  cash  flow  forecast  (as  described  in  value  in  use).    Exploration  and  evaluation  assets    Under  IFRS  6  exploration  and  evaluation  assets  are  assessed  for  impairment  when  facts  and  circumstances  suggest  that  the  carrying  amount  of  the  assets  may  exceed  their  recoverable  amount.    When  this  occurs,  any  impairment  loss  is  immediately  charged  to  the  income  statement.    

60  

Notes  to  the  Accounts  (continued)    10   Impairment  of  Non-­‐financial  assets  (excluding  Inventories  and  deferred  tax)  (continued)    Akanani  exploration  and  evaluation  asset    The  Akanani  CGU  is  currently  at  prefeasibility  study  level  and  value  in  use  calculations  for  the  CGU  are  calculated  using  cash  flows  derived  from  the  results  of  the   latest  study.    Given  the  Akanani  CGU  is  at  the  exploration  and  evaluation  stage   it   is  reasonably   possible   that   the   completion   of   that   stage   will   result   in   changes   to   indicated   and   inferred   reserves   of   PGM  ounces  and  a  further  refinement  of  capital  and  operating  expenses.    In  addition  the  quantity  of  resources  is  also  sensitive  to  the   long-­‐term  metal   prices.     Adverse   changes   in   reserves   and   resources,   capital   and   operating   expenses,   and   long-­‐term  metal  prices  might  cause  the  recoverable  amount  to  fall  below  the  carrying  amount  of  the  CGU.    As  mentioned  above,  the  Akanani  CGU  was  impaired  in  2012,  and  given  any  reasonable  possible  change  in  assumptions  could  have  an  impact  on  the  carrying  amount,  a  formal  impairment  assessment  was  performed  again  at  31  March  2015.    Goodwill    The  recoverable  amount  of  goodwill,  as  allocated  to  relevant  CGU’s,  has  been  tested  for  impairment  annually,  or  when  such  events  or  changes  in  circumstances  indicate  that  it  may  be  impaired.    Any  impairment  is  recognised  immediately  in  the  income  statement.    Impairment  losses  within  a  CGU  are  allocated  first  to  goodwill  and  then  to  reduce  the  carrying  amounts  of  the  other  assets  in  the  unit  on  a  pro-­‐rata  basis.    

61  

 

Notes  to  the  Accounts  (continued)    11   BEE  transactions    In  December  2014,  Lonmin  concluded  a  series  of  shareholding  agreements  with  the  Bapo  baMogale  Traditional  Community  (the  Bapo).  Lonmin  also  implemented  and  Employee  Share  Ownership  Plan  (ESOP)  and  a  Community  Share  Ownership  Trust  (CSOT)  for  the  benefit  of  the  local  communities  on  the  western  portion  of  our  Marikana  operations.    All  three  transactions  collectively  provided  the  additional  equity  empowerment  which  Lonmin  required  to  achieve  the  26%  effective  BEE  equity  ownership  target  as  required  under  the  Mining  Charter.    The  transactions  have  been  accounted  for  as  follows:    Details of the transaction Accounting treatment Bapo transactions Under the arrangement: (a) The Bapo waived their statutory right to receive royalties from EPL and WPL (together referred to as “Lonplats”) for:

The total of R620 million included:

(i) a lump sum cash royalty payment for R520 million settled in shares (refer to (c) below);

The fair value of the prepayment for the future royalties has been calculated at R450 million ($40 million). This has been accounted for as a prepayment for royalties which will be amortised over a period of 40 years. The balance at 31 March 2015 is R447 million ($40 million) of which R436 million ($39 million) is a non-current asset and R11 million ($1 million) is current. The current portion is included under trade and other receivables.

(ii) a deferred royalty payment of R100 million, payable in five instalments of R20 million per annum in each of the five years following completion of the transaction. This amount will be used by the Bapo to pay the administrative costs of running, controlling and directing the affairs of Bapo.

The deferred payment of R100 million which is payable in annual instalments of R20 million over 5 years and was discounted to R79 million ($7 million). The discounted liability will be unwound over the 5 year period. The outstanding balance at 31 March 2015 is R63 million ($5 million), of which R47 million ($4 million) is non-current and R16 million ($1 million) is current. The current portion is included in Trade and other payables whilst the non-current portion is in Deferred royalty payment.

The shares include a lock in period (see c below). As the lock in period represents a post vesting condition the difference between the fair value of the shares and the fair value of the consideration received has been expensed to the income statement representing a cost of entering into the BEE arrangement. This totals R149 million ($13 million). This premium is included as a special cost in the income statement. Refer to note 3.

 

62  

Notes  to  the  Accounts  (continued)  

 11   BEE  transactions  (continued)   Details of the transaction Accounting treatment Bapo Transactions Under the arrangement: (b) Lonplats acquired 100% of the Bapo’s shares in Bapo ba Mogale Mining Company (Proprietary) Limited, whose only asset of value was the 7.5% participation interest in the Pandora JV, for its fair value of R44 million.

The equity accounted investments increased by R44 million ($4 million). Lonmin will continue to equity account for the joint venture.

(c) Lonmin settled the lump sum cash royalty payment of R520 million ($46 million) (under (a)(i) above) and the consideration of R44 million ($4 million) (under (b) above) through the issue of 13.1 million new ordinary shares (2.25%) in Lonmin Plc to the Bapo to the value of R564 million ($50 million) (the “Placing Shares”). To preserve the BEE credentials that this transaction confers on the relevant Lonmin companies, the Placing Shares are subject to a lock-in period of ten years from the effective date of this transaction. During the lock-in period, the Placing Shares may not be sold or encumbered by the Bapo. The total amount paid to the Bapo under (a) and (b) above includes a premium of R149 million ($13 million), in recognition of the benefit to Lonmin of the ten year lock-in period.

Share capital and share premium increased by R564 million ($50 million) as a result of the issue of 13.1 million Lonmin Plc shares at a premium.

In addition to the above, Lonmin and the Bapo jointly formed a community developmental trust for the benefit of the members of the Bapo community (The Bapo Community Local Economic Development Trust (the “Bapo Trust”).

Refer to the Community Trusts below.

Employee Shareholding Ownership Plan (ESOP) Lonmin formed an ESOP, called Lonplats Siyakhula Employee Profit Share Scheme, for the benefit of all Lonmin employees who were not participating in any of the share option schemes which existed when the transaction was concluded. LSA (U.K.) Limited (“LSA”) (a Lonmin subsidiary) transferred 3.8% of its shareholding in Lonplats (being Western Platinum Limited and Eastern Platinum Limited) to the ESOP, and the ESOP is entitled to the higher of 3.8% of Lonplats’ net profit after tax or dividend declared, with effect from the 2015 financial year. The annual distributions made to the ESOP will be distributed to the beneficiaries of the ESOP.

The ESOP has been consolidated into the Group accounts. The annual distributions from the ESOP to its beneficiaries will be treated as an expense for services rendered to Lonmin by the employees who are the scheme’s beneficiaries.

Community Trusts Two separate Community Trust were established – one for the Bapo Community, as explained above, and the other for the Marikana community on the western side of our Marikana operations. Each of the Community Trusts was issued with 0.9% of the issued share capital of Lonplats which was transferred from Lonmin’s subsidiary, LSA (U.K.) Limited (“LSA”). In addition, the Trusts will receive annual distributions which will equal their share of dividends declared by Lonplats, with a minimum of R5 million payable to the Trust. If dividends declared are less than R5 million, Lonplats will make a top-up payment to bring the total distribution for the year to R5 million. The Trusts will distribute the annual distribution to the communities to fund community projects.

The Community Trusts have been consolidated into the Group accounts. The distributions from the Community Trusts to the community projects will be treated as an expense when the payment is made.

63  

Notes  to  the  Accounts  (continued)    11   BEE  transactions  (continued)    Impact  on  the  Statement  of  Financial  Position:   Excluding BEE

transaction BEE

transaction Reference

Including BEE transaction

$m $m $m Non-current assets Equity accounted investments 24 4 b) 28 Royalty prepayment - 39 a)i) 39 Current assets Trade and other receivables 74 1 a)i) 75 Cash and cash equivalents 62 (2) a)i) 60 Current liabilities Trade and other payables (214) (1) a)ii) (215) Non-current liabilities Deferred royalty payment - (4) a)ii) (4) Capital and reserves Share capital 570 13 c) 583 Share premium 1,411 37 c) 1,448 Retained earnings 1,100 (13) a)iii) 1,087