Merafe - Ferrochrome production for the twelve months ended 31 December 2009

Shareholders of the Company are advised that ferrochrome production for the Xstrata-Merafe Chrome Venture for the year ended 31 December 2009 decreased by 30% compared to the previous comparative period.

This arose as a result of the suspension of up to 80% of production capacity in late 2008 and early 2009 in response to the rapid decline in market conditions.

Production was progressively increased during the year from 20% of annual capacity in early January to approximately 85% by year end, in line with improving demand.

The strengthening of the Rand against the US Dollar during 2009 continued to exert pressure on margins and together with improving demand, enabled ferrochrome producers to achieve a 30% increase in the ferrochrome price from $0.79 per pound in the first quarter of 2009 to $1.03 per pound in the fourth quarter of 2009.

Ferrochrome production attributable to Merafe for 2009 was as follows:

Year ended Year ended

Ferrochrome production 31.12.2009 31.12.2008

Attributable production (kt) 203 290
Indicative average published price (USCents 85.0 175.8 (USD)/lb)