IMPALA PLATINUM : Trading statement for the year ended 30 June 2019

IMPALA PLATINUM HOLDINGS LIMITED (Incorporated in the Republic of South Africa) (Registration number 1957/001979/06)

JSE share code: IMP

ISIN: ZAE000083648

ADR code: IMPUY

JSE Convertible Bond Stock Code: IMCB22

JSE Convertible Bond ISIN: ZAE000247458 ("IMPL CB22")

("Implats" or "the Group")

TRADING STATEMENT FOR THE YEAR ENDED 30 JUNE 2019

Implats will release results for the year ended 30 June 2019 ("the period") on the Johannesburg Stock Exchange News Service ("SENS") on or about 5 September 2019.

Implats issued a trading statement on SENS on 8 July 2019 indicating that it was expecting to report both positive basic and headline earnings per share for the period. At that time, there was insufficient certainty to provide guidance ranges, as required by the JSE Listings Requirements. Implats now has reasonable certainty on its earnings and therefore advises shareholders of the following:

Implats' headline earnings and headline earnings per share ("HEPS") for the period are expected to be between R2 915 million and R3 160 million and between 406 cents and 440 cents per share, respectively. The headline loss and headline loss per share for the year ended 30 June 2018 ("comparative period") were R1 228 million and 171 cents per share, respectively.

Expected earnings increased due to:

• a higher realised rand PGM basket price, due to a weaker rand and stronger dollar pricing for rhodium and palladium, partially offset by a weaker dollar platinum price;
• improved operational performance, particularly at the Impala Rustenburg operations; and
• higher sales volumes which have increased by 12% to 1 515koz platinum and by 21% to 929koz palladium compared to the comparative period.

As a result, gross profit for the period is expected to increase from R1.1 billion in the comparative period to R6.8 billion in the current period. The gross profit for the comparative period was restated from R1.6 billion to R1.1 billion, a reduction of R440 million, due to a reclassification of certain expenses to cost of sales.

The increase in earnings was partially offset by a non-cash expense of R1 560 million, or 217 cents per share (no tax impact), relating to the mark to market of the conversion option on the US$ convertible bonds at year end. The valuation of the conversion option was impacted by the significant increase in the Implats share price, which exceeded the conversion price of the US$ convertible bonds. As announced on 24 July 2019, 99.9% of the US$ convertible bondholders elected to exercise their option to convert their bonds to Implats ordinary shares following the payment of a cash consideration of $37.6 million (R524 million). As a result, 64.2 million Implats ordinary shares were issued on 1 August 2019.

Basic earnings and basic earnings per share ("EPS") for the period are expected to be between R1 300 million and R1 650 million and between 181 cents and 230 cents per share, respectively. This includes the adverse impact of R1 656 million, or 230 cents per share (post-tax), relating to the impairment of the remaining carrying value of the Group's investment in Afplats.

The basic loss and a basic loss per share for the comparative period were R10 679 million and 1 486 cents, respectively. This loss was impacted by impairments of R9 699 million, or 1 350 cents per share (post-tax). Impairments are non-cash and have been excluded from headline earnings.

The financial information on which this trading statement is based has not been reviewed and reported on by the external auditors of Implats.

Queries:

Johan Theron

E-mail: [e-mail]

1. [phone]/43

1. [phone]

Emma Townshend

E-mail : [e-mail]

T : [phone]

M : [phone]

Alice Lourens

E-mail: [e-mail]

1. [phone]/43

1. [phone]

15 August 2019

Johannesburg

Sponsor to Implats

Nedbank Corporate and Investment Banking