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PTMN (MKT Cap £142M, sp 27p) Petmin announces 145% increase in after tax profit 32/08-skb10 March 2008 PETMIN LIMITED today (10 March 2008) announced a 145% increase in profit after tax to R93 million (2006: R39 million) for the six months ended 31 December 2007. Headline earnings per share (HEPS) rose by 120% to 6.52 cents (2006: 2.96 cents), while diluted earnings per share (EPS) went up by 127% to 18.89 cents (2006: 8.32 cents). Net asset value (NAV) per share was 46% higher at 124.57 cents. Revenue for the six months increased by 92% to R306 million (2006: R160 million) and gross profit rose by 134% to R56 million (2006: R24 million). This was the result of: Improved performance from the anthracite division following the ramp-up in production and sales at Somkhele Colliery, which was commissioned in June 2007; and improved performance from the group’s Springlake Colliery (both operations are in KwaZulu-Natal Province). Silica mine SamQuarz (near Delmas in Mpumalanga Province) delivered a consistently strong performance during the period under review. Capital expenditure of R55 million was incurred in the six months to 31 December 2007. Of this, R34 million was spent at Somkhele to accelerate the exploration and expansion programmes; R10 million at SamQuarz on its project to expand production to meet the increased demand from customers in the glass industry and R2 million on maintenance; and R9 million at Springlake, mostly on improving the performance of the coal processing plant and on maintaining underground production levels. Anthracite division. Somkhele produced 250 302 tonnes and sold 261 272 tonnes of anthracite in the period under review. Management focused on the delivery of lower quality coal to the export markets in the first months of production at the mine to de-risk the start-up. Some 550 000 sales tonnes were contracted during Somkhele’s construction phase at an average rate of $63 per tonne, 223 000 tonnes of these contracted tonnes were delivered by 31 December 2007. Development of the colliery’s Area 1 is progressing well and first production from this section of the mine is expected in the second half of calendar 2008. The Board has approved additional capital of approximately R30 million to install a de-stoning plant that will increase production capacity at Somkhele from early 2009. The plant will provide the mine with the capacity to produce an additional 16 000 saleable tonnes per month and an additional 15 000 tonnes per month of raw coal which has a current market price of approximately $65 per tonne. Springlake produced 365 058 tonnes (2006: 313 363 tonnes) and sold 335 812 tonnes (2006: 334 391 tonnes) of anthracite in the period under review. The increased production was sourced from the opencast sections of the colliery (up by 24%) with production from the underground sections increasing by 2%. Silica division. SamQuarz produced 615 887 tonnes (2006: 694 580 tonnes) and sold 630 089 (2006: 710 806 tonnes) of silica and chert in the period under review. The reduction in tonnages sold was mainly because of a decrease in the sales of the by-product crusher run material. The profit before tax for the six months ended 31 December 2006 included a once-off recognition of additional profits of approximately R4 million on the sale of certain chert stocks that were previously ascribed a zero value. Impact of power shortages in South Africa The full impact of the electricity supply cuts that occurred in South Africa after 31 December 2007 on the demand for Petmin’s products from customers in the country is not yet known. Currently there is no evidence of a reduction in demand from these customers. The impact on sales of anthracite will be limited as these operations export the majority of their production. Should there be any reduction in demand in South Africa, this surplus product will be diverted to the export market. Orders have been placed for diesel generators to provide power to SamQuarz and Somkhele, and an alternative power source is being investigated for Springlake. The capital allocated for the supply and installation of the generators, which are expected to be operational by the end of the second quarter of calendar 2008, is approximately R19 million. Once the generators are installed, all operations will be able to operate at full production. Assuming a 10% reduction in power supply, no material impact on operating costs is anticipated. Investment in Veremo iron ore project:- At 31 December 2007, Petmin held an effective 16.2% of Veremo Holdings Limited. As announced on 6 November 2007 Petmin will hold 25% and the Kermas Group 75% when the transaction is completed during 2008. The Veremo project is a substantial iron ore deposit on the Eastern Bushveld at Stoffberg in Mpumalanga. In terms of the agreement, the Kermas Group will fund and manage the construction and commissioning of an integrated plant which will initially produce 700 000 tonnes a year of ductile iron and in addition, titanium-bearing slag which may be commercially exploited in the future. Production is expected to start within four years of 30 April 2008. There are plans to expand the production rate over time. PROSPECTS Looking ahead, Petmin expects: completion of an updated SAMREC-compliant report of reserves and resources at SamQuarz during the second half of calendar 2008. Proven reserves should increase from the current 10 million tonnes of quartzite to approximately 45 million tonnes which at current mining rates represents a 36-year life of mine; Springlake will take advantage of the improved export prices for anthracite by placing spot cargoes at improved US dollar prices; and the proven and probable reserves at Somkhele to increase by a minimum of 15 million run-of-mine tonnes (currently 24 million). At 120 000 run-of-mine tonnes per month, this equates to a life of mine of 27 years. Given the unprecedented demand for metallurgical coals, the operation is investigating the possibility of expanding plant capacity.

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