APP Appreciate Group Plc

RNS Number:5825N
African Platinum Plc
11 December 2006

African Platinum plc / Ticker: APP / Index: AIM / Sector: Platinum and precious
                                     metals

11 December 2006

                               JOINT NEWS RELEASE

                 IMPLATS SIGNS STRATEGIC PARTNERSHIP AGREEMENT
          WITH AFPLATS TO PARTICIPATE IN THE GREATER LEEUWKOP PROJECT


Impala Platinum Holdings Limited (Implats) and African Platinum plc (Afplats)
have signed a binding Transaction Framework Agreement (TFA), in terms of which
Implats will acquire 29.9% of Afplats' South African assets.

The TFA details the basis on which Implats will subscribe for this equity and
assist Afplats in developing these assets.  Implats will be granted certain
rights / protections commensurate with its investment.  A definitive agreement
is currently being drafted with the aim to have concluded the transaction in the
first quarter of 2007, subject to all required regulatory approvals being
granted, thereby allowing immediate development of the Leeuwkop Project to
commence.

Under the terms of the TFA, Afplats will transfer its South African
subsidiaries, Afplats (SA), Imbasa Platinum and Inkosi Platinum into Newco, a
newly formed South African incorporated company held 100% by Afplats.  Implats
will subscribe for an effective 29.9% of Newco for a consideration of ZAR 1.068
billion and will have an option, subject to Afplats shareholder approval which
will be sought in early 2007, to convert its shareholding in Newco into Afplats
equity in the future should Implats so wish.

The subscription money acquired from this transaction will be used to fund
Afplats' ZAR 1 billion commitment to the Leeuwkop Project in terms of the
recently signed agreement with their Black Economic Empowerment partners, the
Bakwena Ba-Mogopa Traditional Community.

The cash injected from the proposed transaction will provide funding for the
first two and a half years of the project's development. This will allow the
remaining project funding to be secured at a lower cost once the project has
been significantly de-risked and mining has commenced.

Implats' technical expertise at the operational level will ensure that the
project is successfully and timeously developed in accordance with the Bankable
Feasibility Study parameters.

David Brown, the CEO of Implats stated, "This transaction is an excellent
opportunity for Implats to participate in the development of one of the largest
remaining resources in the Western Limb of the Bushveld Igneous Complex and
builds on our relationship with Afplats.  This project is an integral part of
Implats' on-going growth strategy and is the first building block in our plans
for the next phase of growth to 2.8 million ounces of platinum per annum."

Afplats CEO Roy Pitchford welcomed Implats as a strategic partner.  "The choice
of Implats followed an extensive evaluation process.  We believe that this
investment validates the technical and commercial viability of the Leeuwkop
project and the proposed along strike expansions. In addition, this investment
means that Afplats will not be required to seek funding from either its
shareholders or financiers in the short term."

Leeuwkop is located on the western limb of the Bushveld Complex in the North
West province of South Africa near the town of Brits. Both the Merensky and the
UG2 Reefs are found on the property, but the initial focus of the new mine will
be the UG2 Reef.  In respect of the UG2 Reef only, resources total 60.2 million
ounces (4E).  The initial project, which focuses on the Leeuwkop property
contains reserves of 6.9 million ounces (4E), which are included in the above
resources.

The initial life of mine is forecast at 20 years at an underground production
rate of 3 million run-of-mine tonnes a year at a head grade of 3.95 g/t.  The
underground mine will be accessed via a twin vertical shaft system and mining
operations will be fully mechanised.  At full production, which is forecast to
be achieved during 2010, the mine will produce in the region of 300,000 ounces
(4E) in concentrate per annum.  Concentrate will be transported to Impala
Platinum's Mineral Processes in Rustenburg in terms of the previously signed 10
year offtake agreement with Impala Refining Services (IRS).

Total development capital expenditure is estimated, in today's money, to be ZAR
2.3 billion of which R1 billion is sourced from the Implats capital injection.

Implats is one of the world's largest producers of PGMs, and expects to produce
in excess of 2 million ounces of platinum this year. The company has operations
in South Africa and Zimbabwe and exploration projects in South Africa, Zimbabwe,
North America and Madagascar. Implats employs close on 31,500 people. The
company is listed on the JSE and the LSE and trades as a sponsored level 1 ADR
in the United States.

Afplats is an exploration and development business focused on the platinum group
metals trading on the Alternative Investment Market of the London Stock Exchange
(ticker symbol APP).  Afplats has three South African subsidiary companies,
Afplats (Pty) Ltd, Imbasa Platinum (Pty) Ltd and Inkosi Platinum (Pty) Ltd.  The
company's primary asset is Afplats (Pty) Ltd, the entity which holds the
prospecting permit to the Leeuwkop Project on the western limb of South Africa's
Bushveld Complex.


                                      Ends



For further information, please contact



Implats                                        Afplats
David Brown                                    Roy Pitchford
+27 11 731 9042                                +27 11 467 1858
investor@implats.co.za                         info@afplats.com

Brenda Berlin                                  Russell Lamming
+27 11 731 9023                                +27 (11) 467 1858





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