Sylvania Platinum Limited (“Sylvania”, “the Company” or “the Group”) aim (slp) First Quarter Report to 30 September 2015

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• 
  Sylvania Dump Operations (“SDO”) PGM ounce production increased 2% to 13,729 ounces for the quarter (Q4 FY2015: 13,468 ounces).
  
• 
  SDO cash cost down 17% from $638/oz to $532/oz.
  
• 
  Group EBITDA improved 135% from $0.53 million to $1.25 million,
  
  • 
    SDO EBITDA improved 29% to $1.49 million from $1.15 million.
    
• 
  Gross basket price dropped 15% from $1,032 to $879.
  
• 
  No Lost-Time Injuries (“LTI’s”) during the quarter.
  

“Despite the lower metal prices, electrical substation fire and subsequent one week downtime at the Mooinooi operation during August 2015, as well as two weeks of violent community protests regarding demands for improved infrastructure and jobs at the Eastern operations, all of which impacted negatively on plant availability and tons treated during the quarter, the higher ounce production in the quarter and lower unit costs have resulted in the Group EBITDA improving significantly quarter-on-quarter (135%) from $0.53 million to $1.25 million.

There were no LTI’s or significant health or environmental incidents during the quarter. The Millsell operation reached one year LTI-free during the quarter, while Tweefontein and Steelpoort operations remain LTI-free for more than three and seven years respectively.

The combined production for all the SDO was 13,729 PGM ounces in the first quarter of the 2016 financial year, a 2% improvement on the previous quarter (Q4 FY2015: 13,468 ounces). In the light of declining PGM basket prices, improved operational cost control assisted to reduce the SDO cash cost of production to $532/oz (R6,900/oz), which was 17% lower in dollar terms compared to the previous quarter (Q4 FY2015: $638/oz (R7,714/oz)) and down 21% compared to $674/oz in the same period during the previous year.

1. 
   The gross basket price reported is the total estimated price for deliveries made in the quarter and does not include any penalties or smelting costs. The actual net basket price received is only determined in the invoicing month which is three months after the delivery month, prior quarter adjusted for actual prices received if necessary.
   
2. 
   The functional currency for SDO is SA Rand and the exchange rate shown is the average over the period indicated.
   
3. 
   Cash costs include plant operating costs such as mining, processing, administration, royalties and production taxes, but are exclusive of depreciation, amortisation, reclamation, capital, project development and exploration costs.
   

2. 
   EXPLORATION AND OPENCAST MINING PROJECTS
   

The biodiversity and wetland offset strategies as requested by the Limpopo Department of Economic Development, Environment and Tourism (“LEDET”) and reported on in the previous quarter were released for public review with a significant time allowed for the provision of comments and responses by Interested and Affected Parties. Following a review of all comments received and completion of the Comments and Responses report, the Addendum and report was delivered to LEDET and the Department of Mineral Resources (“DMR”) on 14 September 2015. In terms of legislation, LEDET has 120 days from submission in which to consider the Addendum and, if the Addendum and EIA is accepted, another 30 days to grant the EIA.

The Grasvally mining right application (“MRA”) for chrome was submitted in September 2015 and has been accepted by the DMR.

The Company received the decision from the DMR to reduce the amount of financial provision for rehabilitation on 6 August 2015. Arrangements have been made to issue the financial guarantees in order to provide for this reduced financial security for rehabilitation. It is anticipated that this will be received shortly, thereafter arrangements will be made with the DMR for the notarial execution of the Mining Rights.