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Tjate Project Scoping Study – Optimisation Review

Friday, September 21st, 2007

Jubilee is pleased to announce the results of a joint review with Tjate Platinum Corporation (Pty) Ltd of Tjate’s independent scoping study (announced 6 June 2007) to optimise the projected economic return on the Tjate project, which is located in the eastern Bushveld of South Africa. The review suggests a base case production (ore feed to mill) of 200 000 tonnes (t) per month as the most practical and manageable. Jubilee, as project manager, will shortly be inviting expressions of interest from outside engineering consultants to manage a bankable feasibility study for the project and final selection will be subject to Tjate board approval. Tjate will launch an accelerated drilling programme and proceed to bankable feasibility study.
The Company and Tjate are also pleased to announce the appointment of Chris Molefe, a nonexecutive director of Jubilee, as chairman of Tjate effective 27 August 2007.
Project Economics
Base Case
Production (ore feed to mill): 200 000 t per month
Ore grade: 5.0 g/t 4E (platinum, palladium, rhodium and gold) 0.22% nickel and 0.13% copper
Capital cost: US$470 million
IRR (Internal rate of return): 22%
NPV@5% discount US$800 million
Production Rate Sensitivities
Production 75% of base case, Production
120% of base case
Production 150 000 t/month 240 000 t/month
Capital cost: US$430 million US$510 million
IRR 18% 24%
NPV@5% discount US$560 million US$1 000 million
Colin Bird, CEO of both Jubilee and Tjate said “We are delighted to announce this optimisation result, following drilling and scoping study results, which to date have shown the proposed initial Merensky reef mine to be an attractive proposition. The appointment of Chris Molefe as chairman of Tjate brings to the board a wealth of corporate and South African mining industry experience. Tjate will now accelerate the drilling and other data capture programmes with a view to completing our bankable feasibility study as soon as possible.”

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