SOURCE: African Platinum PLC

November 15, 2006 02:02 ET

African Platinum - 1Moz pa potential at Leeuwkop

London -- (MARKET WIRE) -- November 15, 2006 --African Platinum plc Ticker: APP Index: AIM Sector: Platinum and precious metals

SCOPING STUDY SEES POTENTIAL FOR 1 MILLION OUNCE PER YEAR PRODUCTION AT LEEUWKOP BY AFPLATS

Johannesburg, 15 November 2006 - An independent scoping study on the expansion potential of African Platinum's Leeuwkop project, announced today, concludes that the construction of two further mines in the lease area and a total production peaking at approximately 1 million 4E (three platinum group metals plus gold) ounces per year may be achievable.

Development of the first phase of the project - a forecast 300 000 ounce per year mining and concentrating operation with an estimated life of 20 years - is due to start in the first quarter of 2007 and preparatory work at the site on the Western Limb of the Bushveld Complex is already underway. However, Afplats and its black economic empowerment partners have a resource base of 92 million ounces in the Greater Leeuwkop project area and the company's eventual aim is to treble the size of the Phase 1 operation.

The scoping study, undertaken by Turgis Consulting, anticipates two more mines, operating at similar depths to the proposed Phase 1 mine, each with its own concentrator, with similar production rates and similar returns. Low-cost mechanised mining methods, similar to those intended for Phase 1, would also be used. This is expected to be made possible due to the width and shallow dip of the orebody.

If realised, the estimated production would result in Afplats becoming the fourth largest producer of platinum in the world. In addition, it is envisaged that the synergies offered by shared infrastructure associated with developing the contiguous resources would result in both capital and operating savings at the company level, potentially enabling Afplats to further consolidate its anticipated position in the lowest quartile of production cash costs for the industry.

Afplats CEO Roy Pitchford said the findings of the review would now be tested and upgraded to feasibility study level through further drilling, a 3D seismic survey and detailed mining and beneficiation design. It is anticipated that it will take two to three years to complete this work, which will also cover the possibility of Afplats developing its own smelting facilities at Leeuwkop.

The company recently concluded an agreement with Impala Refining Services (IRS) in terms of which IRS will purchase all the concentrate produced by Leeuwkop Phase 1 for a 10-year period. The agreement allows Afplats to undertake its own smelter testwork on a portion of the concentrate for three years as part of the follow-up expansion studies.


AFRICAN PLATINUM PLC ENQUIRIES:

Chief Executive                                      Investor & Media Relations
Roy Pitchford                                        Kathy du Plessis
+27 (0)82 419 2581                                   +27 (0)11 728 4701
+44 (0)77 9390 9985                                  +27 (0)83 266 5847 (Mobile)
                                                     info@afplats.com

Website: www.afplats.com

DISCLAIMER: Investing in all equities, including natural resources-related equities, carries risks which should be taken into consideration when making an investment. This announcement contains forward-looking statements regarding African Platinum plc, including the development of its mining development projects. Actual results relating to any and all of these subjects may differ materially from those presented.


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