SOURCE: African Platinum PLC

June 13, 2005 02:33 ET

African Platinum PLC Announces Leeuwkop platinum project progresses to next level after positive pre-feasibility study

London -- (MARKET WIRE) -- June 13, 2005 --

African Platinum plc (formerly Southern African Resources Plc)
Ticker: APP (formerly SFU)
Index: AIM
Sector: Exploration

Leeuwkop platinum project progresses to next level after positive
pre-feasibility study

* Study confirms proven techniques will generate robust returns

* Leeuwkop ranked as one of most attractive development opportunities in
  Bushveld Complex

* Project to proceed to bankable feasibility study, expected completion in H106

* Projected full production of 300,000 ounces per annum

* Fully mechanised room and pillar mine design

London, 13 June 2005 - The board of Aim-listed exploration and development
company African Platinum (formerly Southern African Resources) has given the
go-ahead to a bankable feasibility study on the company's flagship Leeuwkop
project following the publication of a favourable pre-feasibility report.  The
technical study was undertaken by independent leading industry consultants.

The company said today the pre-feasibility results were largely in line with the
scoping study and confirmed that the size, grade and location of the Leeuwkop
deposit made it one of the most attractive development opportunities on the
entire South African Bushveld Complex, the world's premier platinum region.

Chief executive Roy Pitchford said the pre-feasibility study had shown that
proven techniques would generate robust returns at Leeuwkop.

"The project returns a 15% IRR at long-term metal prices and exchange rates,
which compares very favourably with a large number of currently proposed
projects that can only achieve break-even.  (At current metal prices and
exchange rates, the IRR is 19%.)  The pre-feasibility found no fatal flaws and
we don't anticipate that any will be encountered by the bankable study either,
we expect the final bankable document to be released during the first half of
2006" he said.

The pre-feasibility confirms the recently published resource estimate of some 50
million ounces (8 million indicated plus 42 million inferred) of 4E (the three
platinum group metals plus gold) but says it is expected that continued
exploration by Afplats in the greater Leeuwkop area will double this over time.
In addition the study has provided sufficient confidence to announce 5.4 million
ounces of probable reserves.

"Even at its present size, the resource is a very substantial one, which
underlines Leeuwkop's long-term stand-alone ability as a PGM producer,"
Pitchford noted.

The report says that of the mining scenarios outlined in the optimisation
analysis, a fully mechanised 250 000 tonnes per month operation on the UG2
orebody alone would provide the highest returns.  The UG2 chromite reef was
chosen on the basis of its higher and more consistent grade and reef width.
Primary access to the orebody will be via a twin vertical shaft system and as
the mining will be supported by an on-reef decline system, there will be only
one production level, sited at the reef intersection.  Mining over the life of
mine will be between 1 000 and 1 500 metres below surface.  The mine design is
based on a fully mechanised room and pillar mining method.

The mine is scheduled to produce approximately 300 000 ounces of 4E concentrate
each year.  The beneficiation plant proposed is a standard mill-float-mill
plant, widely used in the South African platinum industry.  The estimated
concentrator recovery rate is an initial 75%, rising to 78% over the first three
years of operation.  Full production will be 250 000 tonnes per month at an
average head grade of 4.17g/t.  Operating costs to concentrate are estimated at
R177 or USD25 per tonne milled.

Capital required to develop the project to the end of year six  -  when it will
have achieved steady-state production  -  totals ZAR1.9 billion. Peak funding
net of revenues is ZAR1.7 billion.  At steady-state production the operation is
expected to produce operating margins in excess of 40% at current metal prices.
The estimated pay-back period is 4.5 years from start of milling and 9.5 years
from the start of the project.  A summary of the pre-feasibility study can be
downloaded from the Afplats website at

Afplats was listed on the AIM market of the London Stock Exchange in 2002 and is
currently filing for a secondary listing on the American Stock Exchange.  It
changed its name from Southern African Resources last month to reflect its
exclusive focus on platinum group metals.

Chief Executive - Roy Pitchford
+27 (0)82 419 2581 or +44 (0)77 9390 9985

Investor & Media Relations - Kathy du Plessis
+27 (0)11 728 4701 or +27 (0)83 266 5847 (Mobile)  or


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.

                      This information is provided by RNS
            The company news service from the London Stock Exchange