ARM and Vale hosts the Konkola North Copper Project groundbreaking ceremony

Johannesburg, South Africa. African Rainbow Minerals Limited (“ARM”) together with its 50:50 joint venture partner Vale S.A. (“Vale”) today hosted the official groundbreaking ceremony for the Konkola North Copper Project in Zambia (“the Project”).

Construction of the Project was officially opened by His Excellency the President of Zambia, Rupiah Bwezani Banda. Other dignitaries present included ARM Executive Chairman; Patrice Motsepe, the President and CEO of Vale; Roger Agnelli, the Zambian Minister of Mines and Mineral Development; Maxwell Mwale as well as the Chairman of ZCCM; Alfred J. Lungu.

The Project, which is located in the Chililabombwe District in the Copperbelt Province, was released for approval by ARM and Vale in August 2010. Capital expenditure for the development of the Project will be US$400 million with construction already under way. The Konkola North Copper Mine is expected to produce 45 000 tonnes of copper in concentrate per annum with the first copper extraction expected in 2013 and full production in 2015. On completion, the mine is expected to provide ongoing employment for approximately 1 500 people.

The life of the mine is estimated at 28 years. A further three year exploration programme to evaluate area A which has the potential to increase output to 100 000 tonnes per annum is already in progress. Initially the South East Limb will be developed after which the deeper higher grade and wider reef areas will be mined.

ARM Executive Chairman Patrice Motsepe said today at the event: “We would like the African Rainbow Minerals, Vale and ZCCM-IH partnership to be a role model investor whose track record reflects genuine and significant commitment to the communities who live near the mine, the workers, entrepreneurs and other stakeholders”

The development of the Konkola North Copper Mine adds a new commodity to ARM’s portfolio of commodities and is ARM’s first operational interest outside of South Africa. ARM sees the Project as early development for a copper growth strategy in Sub-Saharan Africa.

For more information contact:

African Rainbow Minerals
Dan Simelane
Chief Executive: ARM Copper
Office: +27(0)11 779 1518
E-mail: dan.simelane@arm.co.za

Corne Dippenaar
Corporate Development
Office: +27(0)11 779 1478
E-mail: corne.dippenaar@arm.co.za

Disclaimer

This presentation contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and 21E of the Securities Exchange Act of 1934, as amended, that are intended to be covered by the safe harbour created by such sections. All statements other than those of historical facts included in this presentation are forward-looking statements including, without limitation, (i) estimates of future earnings, and the sensitivity of earnings to commodity prices; (ii) estimates of future commodity production and sales, (iii) estimates of future cash costs; (iv) estimates of future cash flows, and the sensitivity of cash flows to commodity prices; (v) statements regarding future debt repayments; (vi) estimates of future capital expenditures; (vii) estimates of reserves, and statements regarding future exploration results and the replacement of reserves. Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Such risks include, but are not limited to, commodity price volatility, currency fluctuations, increased production costs and variances in ore grade or recovery rates from those assumed in mining plans, as well as political and operational risks in the countries in which we operate and governmental regulation and judicial outcomes. The Company does not undertake any obligation to release publicly any revisions to any “forward-looking statement” to reflect events or circumstances after the date of this presentation, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.