SOURCE: African Platinum PLC

December 06, 2006 04:15 ET

African Platinum PLC - Agreement with Bakwena

London -- (MARKET WIRE) -- December 6, 2006 --African Platinum plc / Ticker: APP / Index: AIM / Sector: Platinum and precious metals

6 December 2006


                  AFRICAN PLATINUM SIGNS DEFINITIVE AGREEMENTS
                        WITH BAKWENA BA-MOGOPA COMMUNITY

Overview


-  Agreement signed with Bakwena Ba-Mogopa - final regulatory requirement for 
   developing the Leeuwkop Platinum Mine

-  Major resource base - 92 million ounces 4E - exceeded only by the three major 
   platinum group metal producers

-  Phase 1 - to develop a 300,000 ounce 4E per year mining and concentrating 
   operation with a life of more than 20 years - longer term aim to treble 
   production

African Platinum plc ('Afplats'), the AIM-listed platinum exploration and development company, announced today it had signed the definitive agreement on its flagship Leeuwkop project with the Bakwena Ba-Mogopa (Bakwena) traditional community, whereby the community will hold a 26% unencumbered shareholding in the Leeuwkop project area.

In terms of the agreement Afplats will hold 74% of Afplats (Pty) Ltd (APL), the entity holding the New Order Prospecting Right, and the Bakwena 26%. In return for increasing its shareholding from 50% to 74%, Afplats will provide the first ZAR1 billion of development capital for the Leeuwkop project and will also pay the Bakwena an amount of R7.5 million per year for eight years from the granting of the mining right.

Commenting on the agreement, CEO Roy Pitchford said that the structure of the transaction enables the local community to be fully empowered from signature date due to the initial capital provided for by Afplats. "We believe that this agreement represents one of the largest community based transactions to have been concluded in South Africa and provides for true broad based economic empowerment for our partners the Bakwena" said Pitchford.

Pitchford also stated that the signed shareholders agreement would be submitted immediately to the Department of Minerals and Energy. This document represents the last submission that is required to be made with respect to both the Mining Right for Leeuwkop and the Kareepoort and Wolvekraal Prospecting Right. "With the submission of this document, we believe that we are very close to securing the mining right that will enable Afplats to commence the development of the Leeuwkop Project".

In the company's 2006 annual report, published last month, Afplats said Phase 1 will be a 300 000 ounce 4E (platinum group elements, plus gold) per year mining and concentrating operation with a life of more than 20 years. However, Afplats and its black economic empowerment partners have a resource base of 92 million ounces 4E in the Greater Leeuwkop Project area - exceeded only by the three major platinum group metal producers - and its eventual aim is to treble the size of the Phase 1 operation through the development of two additional shaft systems.


AFRICAN PLATINUM PLC ENQUIRIES:

Roy Pitchford   - +27 (0)82 419 2581 or +44 (0)11 467 1858

Russell Lamming - +27 (0)83 556 8352 or +27 (0)11 467 1858

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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