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Investing in the poor and our rural communities, says Patrice Motsepe

5 December 2008

The ARM Broad-based Economic Empowerment Trust (“The ARM BBEE Trust”), which holds about 10% of the share capital of African Rainbow Minerals Limited (“ARM”) today made its second cash distribution of approximately R25 million to its beneficiaries. This means that over the past two years the total distribution to beneficiaries amounts to R32 million.

The beneficiaries of the ARM BBEE Trust are the five ARM Provincial Rural Upliftment Trusts benefiting the poor and the rural communities in the seven provinces in South Africa, the ARM Women's Upliftment Trust, various Church Trusts, two trade union companies representing approximately 500 000 workers, entrepreneurs, community leaders, women and youth owned SMME’s.

The cash distribution will be used to build schools, laboratories, crèches, clinics, hospitals and other community upliftment projects.

The current value of the ARM BBEE Trust, based on ARM’s market capitalisation as at 24 November 2008 is approximately R1.7 billion. The net value of the ARM BBEE Trust, after deduction of outstanding loans of R1 billion, is approximately R700 million.

The hand-over of the cash distributions took place at a briefing session in Johannesburg today when the beneficiaries of the ARM BBEE Trust gathered for an update on the working and strategies of the ARM Broad-based Economic Empowerment Structure. This Structure is a unique vehicle for the empowerment and upliftment of the poor and the rural communities in South Africa.

Although some of the shareholding of the ARM shares will have to be sold to repay the loans, the long-term plan is that the ARM BBEE Trust should function as a source of funding for rural and community upliftment.

Patrice Motsepe, the Executive Chairman of ARM said at the briefing: “The long-term political and economic stability of South Africa requires that as many South Africans as possible, particularly the poor and unemployed, participate in and benefit from the growth and development of our economy.”

This second cash distribution is particularly significant, given the turbulent global financial markets and weak commodity prices. Although our company is currently experiencing challenging times, our long term growth plans remain intact and we are confident that ARM will continue to grow and be competitive”, said Mr Motsepe.

The briefing was attended by King Zwelithini, other prominent Kings and traditional leaders from each of the nine provinces of South Africa; His Grace, Bishop B.E. Lekganyane of the ZCC Church, representatives of other major churches in South Africa; political, trade union, business and community leaders.

The Minster of Minerals and Energy, Me. Buyelwa Sonjica was also present.

For further details, contact:

Monique Swartz
Corporate Development and Head of Investor Relations
Office: +27 11 779 1507
Mobile: +27 83 411 2881
Fax: +27 11 779 1312

Investor Relations

Jongisa Magagula
Head of Investor Relations and Corporate Development

Tel: +27 (0) 11 779 1300

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