Update on Arbitration Process

Lonmin Plc ("the Company") agreed this morning (Wednesday 26 June 2013) to postpone scheduled arbitration with the Association of Mineworkers and Construction Union (AMCU) over the ongoing union recognition dispute at AMCU's request.

The Company agreed to an AMCU request to delay the talks in order to allow the process of engagement, led by The Deputy President of The Republic of South Africa (which involves business, government and labour), to take its course. Lonmin welcomes and supports this initiative.

At this morning's meeting, the presiding Commissioner joined the National Union of Mineworkers, United Association of South Africa and Solidarity as interested parties to the arbitration proceedings, which will re-commence on 29 July 2013, again under the auspices of The Commission for Conciliation, Mediation and Arbitration (CCMA).

Lonmin remains fully committed to concluding a new union recognition agreement with AMCU as the majority union. The Company is striving to reach an agreement which is in the best interests of all of its employees and has made reasonable offers in discussions with AMCU in an attempt to achieve this. Lonmin believes that an agreement can be reached through continued negotiations.

Full details on Lonmin's labour relations position are available on a fact sheet on the Company's website. Lonmin will update the market again when appropriate.

Statement issued by Lonmin through the JSE SENS Service, June 26 2013

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