SOURCE: African Platinum PLC

September 15, 2006 03:00 ET

African Platinum PLC - Offtake agreement with Impala

London -- (MARKET WIRE) -- September 15, 2006 --

African Platinum plc
Ticker: APP
Index:  AIM
Sector:  Platinum and precious metals

London, 15 September 2006 - London-listed platinum exploration and development company African Platinum (Afplats) today announced that it has reached an agreement with Impala Refining Services (IRS) in terms of which IRS will purchase all the concentrate produced by the Leeuwkop project for a 10-year period from the start of production. The contract is renewable thereafter for a further five years.

The first phase of the 92-million ounce Leeuwkop project, on the Western Limb of South Africa's Bushveld Complex, is scheduled to produce 300 000 ounces of 4E (the three platinum group metals plus gold) concentrate per year for more than 20 years. The definitive feasibility study on the project was completed by Afplats earlier this year and fundraising arrangements are currently being finalised.

The agreement with IRS allows Afplats to undertake its own smelter testwork on a portion of the concentrate for three years in order to develop a full understanding of its metallurgical response. This information will be essential in the future expansion studies and allow Afplats to consider the possibility of commissioning its own smelting facilities as part of the Greater Leeuwkop Project.

Afplats chief executive Roy Pitchford said the company was very pleased to have concluded the agreement with IRS, the world's largest purchaser of platinum concentrate, on what it considered to be favourable terms.

"By providing certainty of offtake, it ticks a key box in the fundraising requirements list and therefore represents another major advance in the development of this project," he said.

Pitchford also noted that preparatory work for the start of construction of Leeuwkop's Phase 1 was progressing well.

"Shaft Sinkers have completed 80% of the detailed design for the shaft and associated infrastructure with final completion due later this year. Agreements have been signed with Eskom on both construction power and the main power supply with construction of temporary power due to start in October. A final design for the water supply has been issued to contractors to allow construction to start in November. The relevant agreements with the water provider, Madibeng Municipality, have been concluded. A contractor will start building the construction access road next week in order to complete it by November before the onset of the wet season."

"All of these activities highlight the momentum that Afplats is gaining as it moves rapidly toward the development of the Leeuwkop Project," Pitchford said.

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, 
+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