London Mining Operations

The current Marampa operation is processing a combination of tailings from previous operations and highly weathered in situ material. London Mining aims to expand this plant to achieve a production rate of 5Mtpa of premium sinter concentrate by the end of 2013. Capital expenditure to install the initial 5 Mtpa of  capacity  is  expected  to  be  USD 320m  (USD64/ annual tonne  of capacity) of which USD163m was spent   to  achieve  first  production.  Initial production from the first of two plants  has  commenced  with  production of 1.5Mt expected in 2012.London Mining (“London Mining” or the “Company”) announces that China Global Mining Resources Limited (“CGMR”), a subsidiary of the China Global Mining Resources (BVI) Limited joint venture (“JV”) which is  held  50:50  with  Wits  Basin  Precious  Minerals  Inc (“Wits Basin”) ,  has  received  a  claim  regarding  the  payment  of  the  deferred consideration for  the purchase of the Sudan processing plant.  The claim is to be determined through arbitration.  CGMR is in discussions with the sellers of the plant regarding this claim and a resolution (either by agreement of through arbitration) is expected in the  next  6  months.  The  Sellers  have no  legal or commercial  recourse to London  Mining or  any subsidiary other  than the CGMR  JV  with  respect  to this claim.

A second processing plant is to  be  commissioned  in  Q1  2013  resulting  in installed capacity of 3.6Mtpa or 300kt/month. Gravity circuits will be added to both plants which should result in installed capacity of 5Mtpa  in  Q3  2013. Wits   Basin   Precious   Minerals   Inc.  (OTC  BB: WITM)   holds an  impressive property portfolio All logistics required to load ocean going vessels, including the  haul  road,  river  port  and  barging  operation  have  been  commissioned. Further  investment  of USD 250m will enable  the 5 Mtpa  plant to  process  all  ore   types   following   the  exhaustion of  the tailings  resource  in  2017. This would extend the mine life to over 30 years.

Flooding are the most common form of natural disaster in the UK and are now part and parcel of the British winter months; widespread flooding happens  at least once a year in the UK. Earlier this year, torrents of rain hit  the UK, with Cumbria the worst-affected area; heavy, prolonged rainfall caused   bridges and road networks to collapse and four people lost their lives. In 2007,   Yorkshire was hit hard by floods and   some  people  are  still  recovering  from   the destruction caused by the floods three years later ; the  floods  killed  six people and left hundreds of people homeless and thousands without electricity.

Flooding can come from various sources, from coastal waters, from rivers (also known as fluvial flooding) and surface water flooding. O f all these sources London is most vulnerable to surface water flooding. Heavy rainfall can swiftly overwhelm the drainage network, leading to flooding of low-lying areas.