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First cash distribution by the ARM Broad-based Economic Empowerment Trust

18 February 2008

Contributing to the upliftment of the poor and the rural communities, says Patrice Motsepe

Johannesburg, 18 February 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 first cash distribution of approximately R8 million to its beneficiaries.

The beneficiaries of the ARM BBEE Trust are the five ARM Provincial Rural Upliftment Trusts representing seven provinces in South Africa, the ARM National Women's Upliftment Trust, various Church Trusts, two trade union companies representing 400 000 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 facilities.

The current value of the ARM BBEE Trust is approximately R4 billion, based on ARM’s market capitalisation as at 15 February 2008. The net value of the ARM BBEE Trust, after deduction of outstanding loans of R1 billion is approximately R3 billion.

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 a briefing on the working and strategies of the ARM Broad-based Economic Empowerment Structure. This Structure is a unique vehicle for empowerment and upliftment of the poor and rural communities in South Africa.

Although some of the 10% shareholding of ARM shares will have to be sold to repay the loans, the long-term plan is that the ARM BBEE Trust should function and survive in perpetuity as a source of funding for rural and community upliftment.

A donation of R1.5 million was also made by ARM to the Nelson Mandela Foundation to enable the Foundation to continue with its important work of helping the poor and destitute.

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 marginalised, participate and benefit from the growth and development of our economy.

“We are today continuing to make our humble contribution to improve the living conditions of the poor and those living in the rural areas of our country,” said Mr Motsepe.

The briefing was attended by King Zwelithini and approximately 40 other prominent Kings and traditional leaders from the nine provinces in South Africa.

The Minster of Minerals and Energy, Me. Buyelwa Sonjica and the President of the ANC, Mr. Jacob Zuma and other prominent political, business and trade union leaders were also present.

“As our company continues to grow, so will the value held by the Trust and the benefits that the beneficiaries receive. This is a partnership that will be sustainable for the long term,” concluded Mr. Motsepe.

Investor Relations

Jongisa Magagula
Head of Investor Relations and Corporate Development

Tel: +27 (0) 11 779 1300

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