In terms of the joint venture agreement, KPM will contribute the existing Kroondal Mine and certain mineral rights to the joint venture, while RPM will contribute certain of its UG2 mineral rights adjacent to the mine.

The parties intend to expand the existing Kroondal Mine from a capacity of approximately 100 000 ounces of platinum per annum to approximately 300 000 ounces of platinum per annum. This will be achieved by expanding the existing KPM concentrator to a production level of 150 000 ounces of platinum per annum and constructing an additional concentrator on site with the same capacity. The capital required for the establishment of the joint venture mine is expected to be R514 million in 2000 terms. Construction will begin almost immediately although the commencement date of the joint venture will be 1 July 2001.

The mining methods employed by KPM will continue to be used and both mining and concentrating operations will be performed by contractors, as is the current practice at KPM. KPM will manage the operations under the general direction of a management committee to be formed by the joint venture partners. The in situ resource of nearly 60 million tonnes of UG2 ore will result in the expected life of the mine being 13 years. This may be extended for a further period of 3 years.

The parties will share in the joint venture on a 50:50 basis. KPM will honour its existing contract with Impala Refining Services Ltd. while smelting, refining and marketing of the additional output of material associated with the extra 200 000 ounces of platinum is to be performed by Amplats.

The joint venture agreement is subject to certain suspensive conditions, including:

a) the obtaining of all regulatory and statutory consents and authorisations, and

b) the approval of Boards of Directors of the parties and of the KPM shareholders.

Issued by Group Public Affairs