Ben Magara – Chief Executive Officer

Tuesday 10 February 2015

"Collaboration and Purposeful

Action are Key to Our

Success"

2

Delivering on our promises

On the Road to returns

No compromise on safety

1

2

3

Going beyond the rhetoric and creating shared value for all stakeholders

5

Key Messages

Great team and robust strategy in action 4

3

Focus on Operational Excellence and Value Optimisation

Actions

Raising the bar on employee engagement

Relationship charter in place and union agreements signed

More direct engagement in place: Future Forum’s & Lekgotla’s

Culture change program underway

Improving employee living conditions

Integrated human settlements strategy

Hostel conversion complete, Infill apartment program commenced

Partnered with government to deliver on housing requirements

Safe value creation not just mining for volumes

One year fatality free (first time in Lonmin history) – we are not

complacent

Active membership and participation in industry forums

Relentless focus on cost management Proven ability to preserve cash

Collaboration and partnerships Government, Labour and Communities

COM, ICMM, WPIC & MHSC

Maintaining balancesheet integrity

Embedded flexibility and resilience

Sustained capital discipline

Sufficient bank facilities

Community participation and empowerment

ESOP and Community trusts in place

Identified R200m procurement opportunities & 50% local recruitment

Job creation, economic participation, roads and access to portable water

Building bridges of trust, success and development

Improving education (92% Matric pass rate) & health in our communities

Contributing to greater safety and security

Investing in labour sending communities

2014 Mining Indaba Recap –

What we promised, we delivered

4

The Lonmin Investment Case… Creating a business

that is Sustainable through all Cycles

Operational Excellence Our People Corporate Strategy Corporate Citizenship

Safety – Zero Harm A place where people are energised Review to optimise business

processes and systems Contribute and improve lives

Improved productivity Attracting, developing and retaining

the best talent

Financing strategy to support the

business Shareholder engagement

Significant cost reduction Collaborative and flat structures Diversifying the source of profit

generation Community value proposition

Optimised operating model Leadership Maximise profitability and

shareholder returns Beyond compliance

Asset Management,

Innovation and technology

Strengthen labour and union

relationships Corporate activity opportunities Corporate communication

“WE DIG TO IMPROVE LIVES”

The PGM supplier, investment, partner and employer of choice

Creating shared value for all stakeholders

A superior PGM producer

Reduction in total cost per PGM

Focused on returns

Target 15% IRR

And cash-generating business

Positive FCF post capital expenditures

Ramp-up Saffy

Hossy Review

K4

Crew efficiency

Overheads

reduction

Recoveries

Meet the needs of our employees

Union relationships

Review HR policies

ESOP

Optimised business plan

Value creation opportunities

Education

Health

Infrastructure

BAPO shareholders

High quality Mineral Resource,

BIC mining methods and process

technology

The power of shared purpose – I

am because you are Robust medium- to Long-term

PGM industry fundamentals Zero Harm is achievable

Employee Self Worth

ZERO HARM to SAFETY HEALTH and ENVIRONMENT

Integrity, Honesty and Trust Respect for others High Performance Transparency

Our

Investment

Case

PILLARS

Our

BELIEFS

Our

VALUES

OUR

VISION

Immediate

ACTIONS

What Success

Looks Like

STRATEGY IN ACTION

Maintaining the Strong Operational Momentum

Built up in Q4 2014...

6

• Q1 2015 production demonstrates some early wins from our focused approach, despite the smelter disappointment

• Fatality free for fourth quarter in succession

• Highest Q1 underground production since

Q1 2011

• Saleable MIC highest Q1 production in 8 years

• We reiterate our production and sales guidance whilst we scale back on capex to $185 million

• We are focused on delivering on the strategy we articulated in November 2014

Tonnes Mined from Underground

100,000

120,000

140,000

160,000

180,000

200,000

Q1 2011 Q1 2012 Q1 2013 Q1 2014 Q1 2015

Saleable Platinum MIC (ounces)

2,500

2,550

2,600

2,650

2,700

2,750

2,800

2,850

2,900

Q1 2011 Q1 2012 Q1 2013 Q1 2014 Q1 2015

“Zero Harm” is achievable even in the midst of the

Complexities of Rebuilding Relationships and Ramping up

7

• ONE YEAR FATALITY FREE! (First time in Lonmin’s history) – we are not complacent

• Achieved 8 million fatality free shifts

• Smelting and Refining achieved a Lost Time Injury free year for the first time in history

• Consistent safety performance maintained during the start-up after the strike and Christmas break

• Active participation in industry forums eg. CEO’s elimination of fatalities, COM, MHSC, ICMM

• JSE SRI, FTSE4GOOD

• … and industry safety leadership maintained!

Industry Safety Leader

Lost time injury frequency rate

0.000.020.040.060.080.100.120.140.160.180.20

Ja

n-1

0

Mar-

10

May-1

0

Ju

l-10

Se

p-1

0

Nov-1

0

Ja

n-1

1

Mar-

11

May-1

1

Ju

l-11

Se

p-1

1

Nov-1

1

Ja

n-1

2

Mar-

12

May-1

2

Ju

l-12

Se

p-1

2

Nov-1

2

Ja

n-1

3

Mar-

13

May-1

3

Ju

l-13

Se

p-1

3

Nov-1

3

Ja

n-1

4

Mar-

14

May-1

4

Ju

l-14

Se

p-1

4

Comparison of Platinum Industry – Fatality Rate 12 Month Rolling

Peer 1 Peer 2 Lonmin Pt Industry

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

2010 2011 2012 2013 2014

LT

IFR

40%

26 November 2014

THE ROAD TO RETURNS

8

Our Asset Review has enhanced our focus on Capital

Discipline, Productivity and Cost Reduction

9

Operating model cost savings

• Procurement TCO

• Contractor model

• Overheads and redeployment

Productivity and efficiencies

• Stoping crew productivity

• Half level optimisation

• Shaft head efficiencies

• K4 self funding preparation

Process Operations

• OPM project

• Process recoveries

Long life, large scale, low cost & cash generative

Long life, large scale but high cost

1

2

Old depleting shafts but cash generative

Manage for closure

3

4

Shafts

Saffy

K3 Rowland 4B/1B

E1 E2

E3 W1 Newman

Open cast

Shaf

ts o

f th

e

futu

re

Old

sh

afts

Hossy

K4

Our targeted return for projects is 15%

R600m

5% Improvement

15% Improvement

Targeted value > R2 bn in 3 years

Enviable Immediately Available Ore Reserve position

10

Continued investment in ore reserve development

over the past five years has resulted in a healthy,

industry-leading ore reserve position

Healthy ore reserve position is being maintained at

around 20 months through adequate development

Maintains a competitive advantage versus other

PGM producers

Need to capture and liberate the value that we

have created:

• Increasing days worked

• Shift patterns

• Sundays production

= months

Marikana Production Profile (Saleable Platinum Ounces)

11 Prior to Capex Reduction

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Sale

ab

le P

t o

un

ces

K3 Rowland Saffy Hossy 1B/4B K4 Pandora Newman E1/E2/E3 Bulk Tailings

Strike

Impacted

750 Koz

K3

Rowland

Saffy

Hossy

1B/4B

K4

SHE & Sustainability – Integrated

12

Focused Strategy Execution and Clear Direction of Travel

13

We have put together a great team and a robust strategy…

…with a clear focus on cash generation, value and returns

…our solid Q1 results have reinforced our operational credibility

…With an active Business Support Office supporting operational excellence and

ensuring strategy execution

We have the balance sheet flexibility as a result of thorough cash management and capital

discipline…

…and we are rebuilding bridges with our people and stakeholders to build a sustainable, stable

and profitable Lonmin through all cycles

MAKING THE DIFFERENCE

15

Three year wage deal provides for stability and

embedding relationships

Relationship charter in place

Step change in “the way we work”

Finalised the remaining 8% BEE credits to achieve

26% HDSA ownership

BEE deal with Bapo ba Mogale community

ESOP - Employee profit-sharing scheme

Community share ownership trust

Accommodation: Hostel conversion programme

completed

Bapo relationship

R200 million procurement – opportunities

for jobs and local entrepreneurs beyond

compliance

Significant Progress on our Corporate Citizenship Agenda

Shared Commitment to

Improve Lives

Conclusion – Creating Shared Value & Purpose

17

Employees

Host Communities

Suppliers

Providers

of

Capital

Governments

Customers

SHE & Sustainability

Given that we have symbiotic

relationships we must:

Have a plan to grow the pie together

Respond to growing frustration with

tangible action & results

Decisively address unemployment,

inequality and poverty – “winner take

all” is an unsustainable approach

A thriving and profitable business

should improve all stakeholders

Lonmin is rebuilding

bridges through

collaboration & purposeful

action.