THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION If you are in any doubt as to what action you should take, you should consult your stockbroker, attorney, accountant or other professional adviser immediately. The value of shares and the income from them can fall as well as rise and you may not recover the amount of money you invest. You should not regard any of the information provided in this circular as a recommendation to buy shares or hold shares in Lonmin Plc. LONMIN Plc (Registered in England Number 103002) (Registered in the Republic of South Africa as an external company – Reg. No. 1969/000015/10) Registered Office: 4 Grosvenor Place, London SW1X 7YL, England Terms and conditions of the Dividend Reinvestment Plan 1. Outline of the Plan Lonmin Plc (‘‘Lonmin’’) offers a Dividend Reinvestment Plan (‘‘the Plan’’) which is administered by Computershare Investor Services 2004 (Pty) Limited (‘‘Computershare’’). The Plan offers you the opportunity to invest the cash dividends you receive on your Lonmin Ordinary Shares (‘‘Shares’’) by purchasing further Shares. These Shares will be purchased in the market and competitive dealing terms have been arranged. Computershare will arrange the purchase of Shares under the Plan on your behalf through the agency of Cazenove South Africa (Pty) Limited or other suitably authorised stockbroking business chosen by Computershare, as soon as reasonably practicable on or after any dividend payment date, at the then prevailing share price. Please see clause 7 for information about the purchasing of Shares and the setting of the average price. This document constitutes the terms and conditions of the Plan. Please keep it for future reference if you wish to participate in the Plan. Please also note that the market price of Shares may alter between the day on which you apply to join the Plan and the day on which the Shares are bought under the Plan. 2. Who is eligible to join the Plan You may join the Plan unless you are resident in: (a) Canada or the USA; or (b) any other jurisdiction where either the Plan would be illegal or your participation in the Plan would require Lonmin to comply with governmental or regulatory procedures. If you are resident outside the UK, you are responsible for ensuring that you may validly join the Plan and for observing all relevant formalities. If in doubt, you should consult your professional adviser on this. However, Lonmin reserves the right to permit participation pursuant to separate written agreements with such institutional shareholders who satisfy Lonmin, in its sole discretion, that they are entitled to receive Shares pursuant to an exemption under the US Securities Act of 1933, as amended, or other applicable United States legislation. 3. How to participate in the Plan To participate in the Plan you must complete the Application Form (‘‘Form’’) that accompanies these terms and conditions and return it to Computershare. No acknowledgement will be issued. You should note that to participate in the Plan for a particular dividend, your shareholding must appear on the Lonmin register on the record date for the payment of that dividend. 1 Provided that your completed Form is received by Computershare no later than the last day for election, which will be 10 working days prior to the dividend payment date, you will be able to participate in the Plan for that dividend and for subsequent dividends. Applications to join the Plan which are received after that date will only be applied to subsequent dividends. Facsimile, electronic or oral applications will not be accepted. Once you have applied to participate in the Plan, your future dividends will continue to be invested automatically in the purchase of Shares until such time as Computershare receive your notification in writing that you wish to withdraw (please see clause 8) or the Plan is terminated (please see clause 7). Normally you may only participate in the Plan for your entire holding of Shares. However, Lonmin may, at its discretion, permit a shareholder to reinvest the cash dividend payment on a lesser number of Shares than the full holding where that shareholder is acting on behalf of more than one beneficial owner. Any application in respect of part of a holding will apply to the dividend in respect of the number of Shares specified until it is altered or cancelled. The remaining cash dividend will automatically be paid on the Shares which are not included in the Plan. 4. Costs of the Plan To participate in the Plan you will be charged a fee corresponding to 0,5% of the actual consideration paid for the Shares purchased with your cash dividend payment. You will also be required to pay marketable securities tax at the prevailing rate, currently 0,25% of the value of the Shares purchased. The total of these charges will be deducted automatically from your cash dividend prior to the reinvestment. If your dividend less dealing costs is insufficient to purchase one Share, no costs will be charged and the dividend will be forwarded to you. 5. Surplus cash You will receive the maximum number of Shares that it is possible to purchase on your behalf using your cash dividend less the associated dealing costs described above. A cheque in respect of any cash dividend remaining after the purchase of Shares and the deduction of dealing costs, and which was insufficient to purchase one Share, will be sent to you by registered post, together with a share certificate in respect of the Shares purchased and a purchase advice, at your risk to the address set out on the application form or, if no address is given, to your registered address. 6. Purchase statements and share certificates Following each dividend payment date, a purchase statement will be sent to you which will show the number of Shares purchased, the price at which those Shares were purchased and the associated costs. Attached to the purchase statement will be a tax voucher covering the whole amount of your dividend. If the amount of your dividend is insufficient, after taking into account dealing costs, to buy at least one Share, you will receive a statement explaining that no new Shares have been bought. The Shares purchased on your behalf will be registered in your name and you will receive a share certificate. It is anticipated that the purchase statement, dividend tax voucher and, where applicable, a share certificate will be sent to you within 15 working days of the dividend payment date. 7. Other terms and conditions of the Plan All purchases of Shares under the Plan will be arranged on your behalf by Computershare through the agency of Cazenove South Africa (Pty) Limited or other suitably authorised stockbroking business chosen by Computershare. Cazenove South Africa (Pty) Limited is a member of The JSE Securities Exchange South Africa. All dealings will comply with the rules and regulations of The JSE Securities Exchange South Africa. The purchase of Shares for you may be aggregated with other purchases under the Plan, which may result in a more or less favourable price than might have been obtained if your purchase had been effected separately. The stockbroker may also buy Shares for the Plan members in separate transactions and, if need be, on separate days. If it is necessary to purchase Shares at different prices, an average price will be calculated for all the Shares purchased. 2 Computershare may effect transactions for you notwithstanding that it has or they have directly or indirectly a material interest or relationship of any description with another party which may involve a conflict with their duty to you. Computershare is authorised to disclose or arrange for the disclosure of any information relating to the Plan to any relevant public or regulatory authority or as required by such authority, whether by compulsion of law or not. Computershare shall not be liable for any disclosure made in good faith provided that it believes that such disclosure has been made in accordance with the foregoing requirements. All documents sent by post will be sent at your risk and neither Lonmin nor Computershare or its agents will be liable for any failure to receive any document. The operation of the Plan is subject always to the discretion of Lonmin. If Lonmin decides the Plan cannot be applied to a dividend, your cash dividend will not be used to buy Shares on your behalf but will be paid in full as soon as it is reasonably practicable. Any existing mandate to pay your cash dividend to a bank, building society or third party, will remain in force. None of Lonmin, Computershare or Cazenove South Africa (Pty) Limited (or other suitably authorised stockbroking business chosen by Computershare), except for any regulatory obligation owed to you by Computershare, shall have any liability for any loss or damage arising from any price at which Shares are purchased in the market under the Plan, or the terms or timing of any such purchases, or any decision not to make such purchases. Neither Lonmin nor Computershare or their agents will be liable for any losses, costs, damages or expenses sustained or incurred by you by reason of industrial action or any cause beyond their control. Lonmin may amend, suspend or terminate the Plan at any time and if that happens notice will be given to all participants. If the Plan is amended, notice will be given in sufficient time to enable participants to leave the Plan, if they wish, before the next dividend payment date. The Plan may in particular be suspended if Lonmin is advised by Computershare that it will be unable to arrange for the purchase of Shares (either at all, or in the numbers required, or in an orderly and expeditious manner without market distortions) due to events beyond its control. If the Plan is suspended you will receive the cash dividend on, or as soon as practicable after, the dividend payment date. Future dividend record dates and the final dates of lodging Forms for each particular dividend will be published by Lonmin. If you have more than one holding of shares, you will need to complete a separate Form for each holding, unless you ask Computershare to combine your holdings. If the Form has been incorrectly completed or has been altered, the Form will be returned to you without being actioned. The Plan terms and conditions must be accepted in full without deletion or amendment. The information provided in these terms and conditions should not be taken as a recommendation by Lonmin or Computershare or any member of their respective groups to buy or hold Shares. It is your decision whether or not to participate in the Plan and if you have any doubts you should ask for advice from your independent adviser. Computershare will carry out your instructions to buy Shares but will have no duty to advise on the merits of the purchase. 8. Withdrawal from the Plan You may withdraw from the Plan at any time by sending to Computershare either a letter to that effect or the notice of revocation sent with the Plan purchase statements. You must give notice of withdrawal from the Plan to Computershare in writing to be received by the last day for election for a dividend if you do not wish the Plan to apply to that dividend. Otherwise your notice will be applicable only to subsequent dividends. Oral notice will not be effective. Any existing mandate to pay your cash dividend to a bank, building society or third party, will remain in force. If you sell some of your Shares, or you acquire more Shares, your participation in the Plan will continue to apply. 3 If Computershare receive notification of your death, bankruptcy, liquidation (in the case of a company) or mental incapacity your participation in the Plan will cease for all dividends for which the payment date is more than 10 days after the notification is received. However, if your shares are held jointly, the Plan will be continued for the remaining joint shareholders. 9. Taxation , In deciding whether to participate in the DRIP shareholders should consider their tax position. If you are not sure how you will be affected if you participate, you should consult your professional adviser immediately. 10. Enquiries about the Plan Any enquiries about the DRIP should be addressed to Computershare Investor Services 2004 (Pty) Limited, PO Box 61763, Marshalltown 2107 (Call Centre 0861 100 634). Further queries concerning investment advice or the taxation implications of the Plan should be directed to a professional adviser. August 2005 Lonmin Plc is registered as an external company in The Republic of South Africa under Registration Number 1969/000015/10. The person authorised to accept service of notice is Peter McElligott. Registered and London Office: Johannesburg Office: 4 Grosvenor Place Northdowns London 17 Georgian Crescent SW1X 7YL Bryanston East England 2152 Shesha 10065M Registrars Serial number Computershare Investor Services 2004 (Pty) Limited 70 Marshall Street, Johannesburg 2001 .O. (P Box 61763, Marshalltown 2107) Name and address of registered member Enquiries in connection with this form should be addressed to: Computershare Investor Services 2004 (Pty) Limited To participate in the Dividend Reinvestment Plan you should complete this application form and send it to Computershare Investor Services 2004 (Pty) Limited so as to arrive no later than 10 work- ing days prior to the dividend payment date. LONMIN Plc (‘‘Lonmin’’) (Registered in England Number 103002) (Registered in the Republic of South Africa as an external company – Reg. No. 1969/000015/10) Registered Office: 4 Grosvenor Place, London SW1X 7YL, England Telephone: +44 (0) 20 7201 6000 Facsimile: +44 (0) 20 7201 6100 DIVIDEND REINVESTMENT PLAN To: Computershare Investor Services 2004 (Pty) Limited c/o: 70 Marshall Street, Johannesburg 2001 .O. (P Box 61763, Marshalltown 2107) Dear Sirs, I/We, the undersigned, confirm that I/we wish to participate in the Dividend Reinvestment Plan for each future dividend. I/We understand that this mandate will commence from the interim dividend payable on and continue until I/we give notice of withdrawal. I/We hereby appoint Computershare Investor Services 2004 (Pty) Limited as my/our agent to purchase Lonmin ordinary shares of US $1 each subject to the terms and conditions of the Dividend Reinvestment Plan. I/We hereby irrevocably authorise Computershare Investor Services 2004 (Pty) Limited to send the share certificate in respect of the shares so purchased, together with a purchase advice and dividend balance cheque (if any), to me/us at my/our risk by registered post to the address set out below or, if no address is given, to my/our registered address. I/We declare that I am/we are not resident in the United States or Canada, or in any other jurisdiction that requires Lonmin Plc to comply with any governmental or regulatory procedures arising out of this request, nor do I/we hold the ordinary shares to which this request relates as nominee or trustee for any beneficial owner who is so resident. This mandate will remain in force until revoked in writing by me/us. Shares cannot be purchased other than in your name. Dated 20 Telephone number ( ) Signature Assisted by (where applicable) Surname of individual or name of corporate body Mr. / Mrs. / Miss / Other title First names in full (if an individual) Postal address Postal code Shesha 5529M If your address has changed please attach a separate signed letter, with your application form, quoting your old address and advising us of your new address, including the postcode. Your completed application form should be sent to: .O. Computershare Investor Services 2004 (Pty) Limited, P Box 61763, Marshalltown 2107.