MRF - Merafe Resources Limited - First quarter 2012 ferrochrome production Merafe Resources Limited (Incorporated in the Republic of South Africa) (Registration number: 1987/003452/06) JSE share code: MRF ISIN: ZAE000060000 ("Merafe" or "the Company") First quarter 2012 ferrochrome production Shareholders of the Company are advised that ferrochrome production volumes in the first quarter of 2012 were 21% lower than the 2011 comparative period, mainly due to the re-scheduling of maintenance programmes and power buy-back deals with Eskom, the South African national electricity supplier, in a rather soft market. As per SENS announcement dated 30 March 2012, a total of seven furnaces were impacted by Eskom`s requirements for consumption reductions to support their maintenance programmes. Ferrochrome producers achieved a 17% increase in the European benchmark ferrochrome price from $1.15 per pound in the first quarter of 2012 to $1.35 per pound in the second quarter of 2012, driven by reduced supply in the market. Margins, however, remain under pressure as a result of continued higher mining inflation, increased standing charges and a relatively strong Rand compared to the US Dollar. Three months Three months Year ended 31 ended ended December 2011 31 March 2012 31 March 2011
Attributable production (kt) 65 82 263 Indicative average published 115.0 125.0 125.0 ferrochrome price (USc/lb) (Metal Bulletin) Sandton 2 May 2012 Sponsor: Merrill Lynch South Africa Proprietary Limited Date: 02/05/2012 08:30:01 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.