PTMN Petmin

TIDMPTMN

RNS Number : 4593P

Petmin Limited

24 October 2012

PETMIN LIMITED

Incorporated in the Republic of South Africa

Registration Number 1972/001062/06

Share Code JSE: PET & ISIN: ZAE000076014

Share Code AIM: PTMN

("Petmin" or "the Company")

24 October 2012

PETMIN SIGNS OFF FIVE-YEAR SOMKHELE TAKE-OFF AGREEMENT

Petmin is pleased to announce it has entered into a five-year take-or-pay sale agreement for 300,000 tonnes per annum of production from the third wash plant under development at its Somkhele anthracite mine in KwaZulu-Natal, South Africa.

The Somkhele mine produces metallurgical anthracite for domestic and export markets. Following the commissioning of a second wash plant in March 2012, the mine has a production capacity of 1.2 million saleable tonnes of anthracite per annum.

A third wash plant is under construction for a cost of R62 million (GBP4.4* million) and is scheduled for completion in January 2013. The third plant is designed to process discard arising from the two existing anthracite wash plants and will have capacity to produce up to 500,000 tonnes of energy product annually for the energy market.

"For no additional mining costs, the third Somkhele plant will enable Petmin to produce 500,000 tonnes of energy product," said Petmin's director of business development, Bradley Doig. "More than half of that product has now been sold forward, prior to the plant being commissioned. In line with our strategy, this provides Petmin with good visibility of earnings into the future."

The third plant is expected to increase Somkhele's overall plant yield from 42% to 50% and enables greater operational flexibility at the mine. The third plant will be able to process 330 tonnes per hour of discard from the two existing anthracite wash plants.

* Exchange rate applied: ZAR13.9061:GBP1

Enquiries:

Petmin

Bradley Doig

+27 11 706 1644

Media

Jonathon Rees

+27 76 185 1827

Sponsor and Corporate Advisor (JSE)

River Group

Andrew Lianos

+27 834 408 365

Nominated Adviser and Broker (AIM)

Macquarie Capital (Europe) Limited

Steve Baldwin

+44 20 3037 2362

Nicholas Harland

+44 20 3037 2369

River Group

Johannesburg

24 October 2012

This information is provided by RNS

The company news service from the London Stock Exchange

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