CMO - CHROMETCO LIMITED - Chrometco unveils new directi

Chrometco unveils new directions to add value

Chrometco Limited
(Incorporated in the Republic of South Africa)
(Registration number 2002/026265/06)
Share code: CMO ISIN: ZAE00007020249


Johannesburg, South Africa. 17 October 2012. Chrometco Limited (Chrometco; JSE
AltX: CMO) – until now a chrome explorer/miner with a single asset, the Rooderand
(Rooderand) chrome mine – is repositioning itself to move additionally into platinum group
metals (PGMs) and other bulk commodities in South Africa, with the objective to add value
for investors.

Undaunted – indeed, motivated – by the current global downturn in the chrome and PGM
markets, Chrometco is poised to acquire from Nkwe Platinum Limited (Nkwe), in an all-share
transaction, the PGM rights to the Rooderand asset – complete with exploration data. It
expects this to give it a solid foothold in the PGMs space.

Chrometco shareholders vote on the proposed acquisition next month.

Chrometco Managing Director Petrus Cilliers describes Rooderand’s location – on the
Western Limb of the Bushveld Igneous Complex, with the likes of Platmin Limited and
Platinum Australia Limited as neighbours – as a “prime chrome/PGM neighbourhood”.

He points out that, once Chrometco has access to additional chrome exploration data on
Rooderand – a “happy consequence” of the failure of the planned disposal of Rooderand
under previous management – it will be well placed to move 13Mt of the property’s current
chrome resource from the exploration target category into the inferred category. This, with
the addition of PGMs from the proposed Nkwe acquisition, has the potential to increase
Rooderand’s current valuation of R186 million to R370 million. Chrometco envisages “limited
exploration” being necessary to augment the chrome and PGMs exploration data.

Cilliers says Chrometco is not wedded solely tovalue-add through acquisition, mine
development and operation although he hastens to point out that the company’s current
“comfortable position” – cash in the bank, no debt and low costs – positions it well to avail
itself of attractive, well-priced assets coming to the market in distressed state because of the
global economic downturn.

“We would certainly not rule out mergers and joint ventures, or disposal for that matter;
everything is for sale at the right price.”

While the company has taken a strategic decision to wind down chrome production at
Rooderand until there is “an acceptable level of recovery” in the commodity’s price, Cilliers
says it is currently looking at various cash-generating projects, with its 70 000t stockpile a
prime – but not exclusive – consideration.

“In a South African exploration context, we believe we are uniquely and attractively well
placed,” Cilliers says.

“We have some leeway to weather the current economic downturn – no heroics, no drama –
all the while keeping our eye open for attractive opportunities and preparing ourselves for the


James Duncan

Russell and Associates

+27 11 880 3924 (office)

+27 82 892 8052 (mobile)



Opinions expressed herein are, by nature, subject to known and unknown risks and
uncertainties. Changing information or circumstances may cause the actual results,
plans and objectives of Chrometco Limited (the “Company”) to differ materially from
those expressed or implied in the forward-looking statements. Financial forecasts and
data given herein are estimates based on the reports prepared by experts who, in
turn, relied on management estimates. Undue reliance should not be placed on such
opinions, forecasts or data. No representation is made as to the completeness or
correctness of the opinions, forecasts or data contained herein. Neither the Company,
nor any of its affiliates, advisors or representatives accepts any responsibility for any
loss arising from the use of any opinion expressed or forecast or data herein.
Forward-looking statements apply only as of the date on which they are made and the
Company does not undertake any obligation to publicly update or revise any of its
opinions or forward-looking statements whether to reflect new data or future events
or circumstances

17 October 2012

Designated Advisor
Sasfin Capital (a division of Sasfin Bank Limited)

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CMO - CHROMETCO LIMITED - Chrometco unveils new directi
JSE Securities Exchange - SENS
17/10/2012 - 12:00