Operations update (8770X)

TIDMPTMN

RNS Number : 8770X

Petmin Limited

22 February 2012

PETMIN LIMITED

Incorporated in the Republic of South Africa

Registration Number 1972/001062/06

Share Code JSE: PET & ISIN: ZAE000076014

Share Code AIM: PTMN

("Petmin" or "the Company")

Operations update: Petmin signs renewable 600,000 tonne anthracite export capacity agreement with Grindrod

Petmin has signed a renewable five year agreement which will enable it to export up to 600,000 tonnes of metallurgical anthracite a year from Grindrod Terminals Kusasa dry bulk facility in Richards Bay, located in the KwaZulu Natal province of South Africa.

The agreement, effective from 1 February 2012, gives Petmin the capacity to ship its expanded anthracite production from the Somkhele mine 85km north of Richards Bay.

Under the terms of the agreement, Petmin has been allocated 45,000 tonnes of exclusive stockpile and an indicated vessel loading rate of 12,000 tonnes per day.

The Grindrod facility replaces Petmin's previous throughput arrangements at Richards Bay.

Somkhele is increasing production from its current 535,000 sales tonnes per annum to in excess of 1.2m tonnes annually. Long term sales contracts are

already in place with domestic and international customers.

The mine produces anthracite with low phosphorous and sulphur, and high vitrinite content, for export via Richards Bay (55% of production in 2010/11) to iron ore pelletizing and sintering markets mostly in Brazil, and for the South African ferro alloy industry (45% of production in 2010/11).

Anthracite produced by Somkhele is transported by road from Somkhele to Richards Bay, and to domestic customers.

This operational update is not related to the Cautionary announcement issued by Petmin on 9 January 2012 and renewed on 20 February 2012.

Notes

- Petmin is a cash producing dividend paying high growth junior miner listed on AIM (PTMN) and JSE (PET)

- The Grindrod Terminals Kusasa facility at Richards Bay has a 60,000m(3) warehouse, silo capacity and an open area of approximately 15,000 tonnes. It is connected by conveyor to the port and is mostly used for coal and heavy minerals.

Media enquiries

Jonathon Rees

[phone]

[e-mail]

Petmin

Bradley Doig (Director of Business Development)

[phone]

Nominated Adviser and Broker (AIM)

Macquarie Capital (Europe) Limited

Steve Baldwin

[phone]

Nicholas Harland

[phone]

Sponsor and Corporate Adviser (JSE)

River Group

Andrew Lianos

[phone]

Johannesburg

22 February 2012

This information is provided by RNS

The company news service from the London Stock Exchange

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