Two Rivers Platinum Project7 Jun 2005
African Rainbow Minerals Limited/ Impala Platinum Holdings Limited - Arm And    
Implats To Proceed With Two Rivers Platinum Project                             
African Rainbow Minerals Limited                                                
(Incorporated in the Republic of South Africa)                                  
(Registration number 1933/004580/06)                                            
JSE Share code: ARI                                                             
LSE Share code: AGM                                                             
ISIN: ZAE000054045                                                              
(`ARM` or the `Company`)                                                        
Impala Platinum Holdings Limited                                                
(Incorporated in the Republic of South Africa)                                  
(Registration number 1957/001979/06)                                            
JSE Share code : IMP                                                            
LSE Share code:  IPLA                                                           
ADR code:        IMPUY                                                          
ISIN: ZAE 000003554                                                             
(`Implats` or `the company`)                                                    
7 June 2005 - African Rainbow Minerals Limited (ARM) and Impala Platinum        
Holdings Limited (Implats) today announced that the companies will proceed with 
the 220 000 oz per year platinum group metals (PGM) project, Two Rivers Platinum
(Pty) Limited (Two Rivers) on the Eastern Limb of the Bushveld Complex. The     
joint venture between the companies is held 55% by ARM and 45% by Implats. The  
JV has contracted ARM to manage the project, while Implats will undertake the   
processing and refining through its subsidiary Impala Refining Services (IRS).  
Two Rivers` capital expenditure is estimated to be in the region of R1.2 billion
to commissioning. R600 million project finance has been secured through ABSA and
Nedbank, with the balance of the funding being contributed by the two partners  
in their respective shareholding ratios (ARM R330 million and Implats R270      
million). The mine willemploy about 1,000 people, including contractors,        
The decision to proceed follows a successful trial mining phase to test all     
critical project assumptions. The mining and stockpiling of nearly 240 000 tons 
of UG2 ore, as well as extensive access development has substantively validated 
geological and mining feasibility parameters.                                   
Two Rivers is located in the southern, central part of the eastern limb of the  
Bushveld Complex in the Mpumalanga province of South Africa.  Both the Merensky 
and the UG2 reefs are found on the property, but the initial focus of the new   
Two Rivers mine will be the UG2 Reef.  The UG2 reserve totals 40 million tons at
a 6E mill grade of 4.18g/t. A platinum to palladium ratio of 5:3 adds to the    
attractiveness of this project.                                                 
ARM`s Chief Executive Officer, Andre Wilkens said: `The decision to proceed with
Two Rivers is aligned with the company`s growth strategy. The PGM sector is one 
of ARM`s key commodity focus areas, the project has an exciting return which    
comfortably meets the company`s required return rates, and the successful trial 
mining phase has reduced risk considerably.`                                    
Keith Rumble, Chief Executive Officer of Implats said: `The coming on stream of 
Two Rivers is an integral part of Implats growth strategy and is a building     
block in our plans to reach 2.3 million platinum ounces by 2010. The current    
expansions at the our refinery complex are proceeding well, and the necessary   
capacity will be available well ahead of the planned commissioning date.`       
The life of mine is forecast at 20 years at an underground production rate of   
2,2 million run-of-mine tons a year.  The underground mine will be accessed via 
a decline shaft system comprising a footwall conveyor decline and two on-reef   
declines: one for vehicle access and the other a chairlift installation for the 
transportation of employees.  The underground mining operations will be fully   
Following test-work conducted at Mintek in 2002, with independent laboratory    
verification, the concentrator plant will be a standard MF2 design as generally 
used in this industry. Design work for this concentrator advanced significantly 
during the trial mining phase.                                                  
Main metal annual sales from the new mine are planned at an average annual      
production over the life of the mine of 120 000oz of platinum, 68 000oz of      
palladium and about 20 000oz of rhodium. Full production is forecast during the 
second half of 2006.                                                            
The necessary environmental and mining authorizations for project release have  
been approved by the Department of Minerals and Energy.                         
Andre Wilkens continued: `We intend to implement ARM`s `We Do It Better`        
management style at Two Rivers to ensure world-class operating efficiencies. All
project assumptions indicate that Two Rivers will be one of the lowest cost PGM 
producers at less than R200 a ton. We are also optimistic about the upside      
potential that exists at Two Rivers as additional resources exist in the        
Merensky Reef that will be mineable in the future.`                             
Keith Rumble concluded that the decision to proceed confirmed Implats` focus on 
platinum. He also noted that the combination of ARM and Implats was a good one, 
with ARM bringing to the party operating expertise and Implats the considerable 
processing and refining infrastructure which would normally prove a barrier to  
entry to smaller producers. The operation will, at the outset, be compliant with
the BEE equity component of the Mining Charter and all other aspects of the     
Charter are being dealt with at an operational level.                           
African Rainbow Minerals is a South African-based diversified mining company    
with ferrous metals, nickel and platinum operations.  The company also has an   
exploration portfolio in Zambia, the DRC and Namibia.  ARM has a significant    
interest in gold, with a 16.2% shareholding in Harmony. ARM is listed on the JSE
Securities Exchange, South Africa with a secondary listing on the London Stock  
Impala Platinum Holdings Limited (Implats) is one of the world`s largest        
producers of PGMs, producing about 2 million ounces of platinum per annum. The  
company has operations in South Africa and Zimbabwe and exploration projects in 
South Africa, Zimbabwe, North America and Madagascar. Implats employs close on  
30,000 people. The company is listed on the JSE Securities Exchange South Africa
(JSE), the LSE and trades as a sponsored level 1 ADR in the United States.      
Issued by African Rainbow Minerals Limited and Impala Platinum Holdings Limited 
For further details contact:                                                    
ARM                                Implats                                      
Pieter RGBPrich                      Les Paton                                    
Executive: Corporate Development   Director                                     
on +27(0)82 570 5064               on +27(0)82 448-7102                                                                       
Sponsor to ARM and Implats                                                      
Deutsche Securities (SA) (Proprietary) Limited                                  
Date: 07/06/2005 03:30:11 PM                     
Produced by the JSE SENS Department