RNS Number:0928M
Lonmin PLC
15 November 2006


Pre-conditional offer to acquire AfriOre

Lonmin Plc (''Lonmin'') is pleased to announce that it has entered into a
binding agreement ("Agreement") with AfriOre Ltd ("AfriOre") under which AfriOre
agrees to support and recommend an offer from Lonmin to acquire AfriOre by means
of a cash offer to shareholders at C$8.75 (US$7.74) per AfriOre share. Such an
offer, which would be undertaken according to Canadian securities market
regulations, would value AfriOre at around US$441 million (C$500 million).

AfriOre is a BVI domiciled company that trades on the TSX in Toronto and AIM in
London. AfriOre's primary asset is a 74% stake in the Akanani PGM deposit
located on the northern limb of the South African Bushveld complex. The
remaining 26% interest in Akanani is held by a number of Black Economic
Empowerment investors. As at 28 February 2006 AfriOre had total assets of
C$42.6m and reported a net loss of C$3.5m for the previous 12 months.

The Akanani deposit has a strike length of around 9 km and the Platreef ore body
lies at a depth of between 800 metres and 2,000 metres. The average true width
of the targeted P2 horizon is 19 metres. Akanani has reported total inferred P2
resources of 249.1 million tonnes containing 33.7 million ounces of PGMs at a
grade of 4.2 g/t - details below. Akanani was awarded a new order exploration
licence in June 2006. Lonmin's preliminary evaluation suggests that the current
resource could support an initial mine development producing around 500,000
ounces of PGMs per annum including around 250,000 ounces of Platinum.
Attributable capital expenditure for mine, concentrator and infrastructure
development is estimated at US$600-700 million.

The obligation for Lonmin to make an offer for AfriOre is subject to a number of
pre-conditions, including the completion of documentation and satisfactory
geological, financial and legal due diligence by Lonmin. It is currently
anticipated that due diligence will be completed in December 2006 following
which the parties intend to implement the offer. Regulatory approval and
completion of the transaction, if it proceeds, is currently expected by the end
of January 2007.

Completion of the offer would be subject to the customary conditions including
South African competition approval and that a minimum of 66 2/3 % of AfriOre
shares on a fully diluted basis are tendered to the offer. In today's agreement,
AfriOre has granted Lonmin the right to match any unsolicited superior offer and
has agreed to pay a compensation fee of C$15m to Lonmin in the event that the
offer is not completed in certain circumstances.

Lonmin will fund the acquisition from existing banking facilities. Initial cash
expenditure before interest is estimated at around US$25m a year for the first
two years of ownership. Lonmin is advised by BMO Capital Markets.

Commenting on the agreement with AfriOre, Brad Mills Chief Executive said:

"I am pleased that we have been able to reach this binding agreement with
AfriOre. We are excited by the potential of the Akanani deposit which our
preliminary evaluation suggests can be developed into a low cost, fully
mechanised mine. The deposit fits into our portfolio of high quality growth
projects and will be another step in our strategy to build growth into Lonmin to
take advantage of our confidence in the continued strength of the Platinum
market."

Enquiries:
Alex Shorland-Ball +44 (0) 20 7201 6060
Vice President, Investor Relations & Communications



Summary of Akanani P2 unit Mineral Resources, 12 September 2006

+---------+-----------+--------------+--------+-------+-------+-------+-------+--------+
|Category | Tonnes m  | 3PGE+Au g/t  | Pt g/t |Pd g/t |Rh g/t |Au g/t | Ni %  |  Cu %  |
+---------+-----------+--------------+--------+-------+-------+-------+-------+--------+
|Inferred |   249.1   |     4.2      |  1.8   |  2.0  |  0.2  |  0.2  | 0.24  |  0.14  |
+---------+-----------+--------------+--------+-------+-------+-------+-------+--------+


Source - AfriOre / Akanani Platinum Project NI 43-101 Technical Report, 02
November 2006






Forward Looking Statements:

This announcement includes forward-looking statements. Information contained in
this announcement relating to AfriOre has been compiled from public sources. All
statements other than statements of historical fact included in this
announcement, including without limitation those regarding Lonmin's plans,
objectives and expected performance, are forward-looking statements. Lonmin has
based these forward-looking statements on its current expectations and
projections about future events, including numerous assumptions regarding its
present and future business strategies, operations, and the environment in which
it will operate in the future. Forward-looking statements generally can be
identified by the use of forward-looking terminology such as 'ambition', 'may',
'will', 'could', 'would', 'expect', 'intend', 'estimate', 'anticipate',
'believe', 'plan', 'seek' or 'continue', or negative forms or variations of
similar terminology. Such forward-looking statements involve known and unknown
risks, uncertainties, assumptions and other factors related to Lonmin,
including, among other factors: (1) the risk that the businesses of Lonmin and
AfriOre will not be integrated successfully; (2) material adverse changes in
economic conditions generally or in relevant markets or industries in
particular; (3) fluctuations in demand and pricing in the mineral resource
industry and fluctuations in exchange rates; (4) future regulatory and
legislative actions and conditions affecting Lonmin's and AfriOre's operating
areas; (5) obtaining and retaining skilled workers and key executives; and (6)
acts of war and terrorism. By their nature, forward-looking statements involve
risks, uncertainties and assumptions and many relate to factors which are beyond
Lonmin's control, such as future market conditions and the behaviour of other
market participants. Actual results may differ materially from those expressed
in forward-looking statements. Given these risks, uncertainties, and
assumptions, you are cautioned not to put undue reliance on any forward-looking
statements. In addition, the inclusion of such forward-looking statements should
under no circumstances be regarded as a representation by Lonmin that Lonmin
will achieve any results set out in such statements or that the underlying
assumptions used will in fact be the case. Other than as required by applicable
law or the applicable rules of any exchange on which Lonmin's securities may be
listed, Lonmin has no intention or obligation to update or revise any
forward-looking statements included in this announcement after the release of
this announcement.







                      This information is provided by RNS
            The company news service from the London Stock Exchange

END
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