Johannesburg, 15 November, 2012 – Kalahari Resources can confirm the contents of a stock exchange announcement issued by ArcelorMittal through the London Stock Exchange on November 15, 2012, regarding proposed shareholding changes in Kalagadi Manganese (Pty) Ltd, which has extensive manganese exploration and production interests in the Northern Cape province.

In terms of the announcement, ArcelorMittal and Mrs Daphne Mashile-Nkosi have entered into a definitive agreement whereby Mrs Mashile-Nkosi, or her nominee (which may be a consortium consisting of some of the existing Kalahari Resources shareholders), will acquire ArcelorMittal’s 50% interest in Kalagadi Manganese (Pty) Ltd.

ArcelorMittal will receive a cash consideration of not less than R3.9 billion on the closing of a sale and purchase agreement between the two parties. The sale and purchase agreement was executed on November 14, 2012.

On completion of the transaction, Kalahari Resources will hold a 40% interest in Kalagadi Manganese (the same as its current shareholding,) the Industrial Development Corporation will hold 10% (the same as its current shareholding) and Mrs Daphne-Nkosi, or her nominee will hold a 50% interest.

On completion of the transaction, Kalahari Resources will hold a 40% interest in Kalagadi Manganese (the same as its current shareholding,) the Industrial Development Corporation will hold 10% (the same as its current shareholding) and Mrs Daphne-Nkosi, or her nominee will hold a 50% interest.

The completion of the proposed transaction will be subject to the waiver of preemptive rights of the other shareholders, customary corporate approvals, as well as various regulatory approvals and financing arrangements.

Further details will not be available until the sale and purchase agreement has been finalised.