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African Rainbow Min. (ARB)

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Monday 20 February, 2006

African Rainbow Min.

Reviewed Interim Results for 6 months ended 31....


AFRICAN RAINBOW MINERALS LIMITED

(Incorporated in the Republic of South Africa)

(Reg. No. 1933/004580/06)

(ISIN code: ZAE 000054045)

REVIEWED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2005

HIGHLIGHTS

* Headline earnings increased from R19 million to R131 million

* Excellent progress on Two Rivers Platinum Project

* Assmang shareholders' agreement and delisting approved

* Release of the 8.4 million ton per annum export BKM iron ore mine

* Exploration assets outside South Africa listed through TEAL on the Toronto
Stock Exchange

* Nkomati approved expansion from a 30 000 tpm to 100 000 tpm mine with a new
concentrator

COMMENTARY

The board of ARM is pleased to announce its interim results for the six months
ended 31 December 2005 which have been prepared in accordance with
International Financial Reporting Standards.

Headline earnings increased from R19 million for the six months to 31 December
2004 to R131 million for the current reporting period. Earnings were positively
affected by improved results from Modikwa and not including our share of
Harmony Gold Mining Company Limited's ('Harmony') results (now accounted for as
an investment), but negatively affected both by the participation in only 50%
of Nkomati's earnings following the disposal of 50% to LionOre and lower
earnings from Assmang.

ARM Platinum benefited from strong PGM prices with Modikwa Platinum Mine
reporting a significant increase in cash operating profits to R70 million (at
50% ownership)(2004: R8 million). Nkomati Nickel Mine has continued with its
consistent strong performance.

Assmang Limited ('Assmang') reported a 22% decrease in headline earnings to
R275 million, mainly driven by lower sales volumes and prices achieved at the
manganese and chrome operations as explained below in more detail.

Harmony improved its gold production by 6% to 20 316kg and reported an increase
in operating profit to R389.4 million from R118.8 million for the quarter ended
31 December 2005. A significant increase in the Harmony share price resulted in
a stronger ARM balance sheet with investments having increased by R1.7 billion
since June 2005.

Total consolidated short and long term borrowings increased from R1.6 billion
on 30 June 2005 to R2.0 billion on 31 December 2005, mainly as a result of
borrowings to fund the Two Rivers Platinum Project. ARM's net debt to equity
ratio remains, however, at a comfortable 16%.

We continued with our organic growth programme through the release, in
conjunction with our partners, of two significant projects. The Two Rivers
Platinum Project in the Mpumalanga Province was released in June 2005 and the
8.4 million ton per annum export iron ore mine on our Bruce, King and Mokaning
properties ('the BKM Mine'), situated in the Northern Cape Province, was
released during January 2006.

Furthermore, we have successfully completed the Dwarsrivier underground chrome
mine situated in Mpumalanga, ahead of schedule and below budget. In addition,
the Nchwaning 3 manganese mine was completed and became fully operational
during the period under review.

The restructuring of the Assmang shareholders' agreement has been completed and
the delisting of the company has received all the necessary approvals.

We have also today announced that Nkomati Nickel will increase monthly
production from 30 000 tons per month to 100 000 tons per month, maintaining
current nickel production levels.

OPERATIONAL REVIEW

ARM Ferrous

The ARM Ferrous operations which are held through its investment in Assmang
consists of three divisions namely, iron ore, manganese and chrome.

Assmang reported turnover for the six months to 31 December 2005 of R1,87
billion (2004: R1,89 billion). Earnings decreased by 24% to R275 million (2004:
R362 million) and headline earnings decreased by 22% to R275 million (2004:
R354 million).

The decrease in earnings and headline earnings can be primarily attributed to
decreases in sales volumes of manganese ore and charge chrome and a substantial
price decrease for manganese alloys as a result of negative market conditions
over the reporting period.

                              Six months ended   Six months ended             
                                                                              
                                          2005               2004             
                                                                              
100% basis                                `000               '000   Percentage
                                                                              
Assmang product volumes            metric tons        metric tons       change
sales                                                                         
                                                                              
Manganese ore*                             573                766         (25)
                                                                              
Iron ore                                 2 600              2 541            2
                                                                              
Manganese alloys                           130                105           24
                                                                              
Charge chrome                               89                104         (14)
                                                                              
Chrome ore*                                 56                 23          144

*Excluding intra-group sales

Major capital projects

The ARM Ferrous division through Assmang continued its capital expenditure
programme, spending R313 million (2004: R286 million) during the period under
review. Of this, R43 million was spent on the completion of the Dwarsrivier
underground chrome mine, which commenced production well ahead of schedule and
under budget, at a total capital cost of R187 million. The Nchwaning 3
manganese mine has been completed and is fully operational.

During the period under review the Board of Assmang approved the first phase
construction of a new export iron ore mine on its Bruce, King and Mokaning
properties, ('the BKM Mine'), adjacent to Kumba's Sishen mine, near Kathu in
the Northern Cape Province. Construction of the BKM Mine will commence during
the early part of calendar year 2006 with the first phase resulting in a new
8.4 million ton per annum export iron ore mine at an estimated total capital
cost of R3.2 billion, excluding capitalised interest. First production is
expected during the first half of calendar year 2008. A second phase expansion
of the BKM Mine to increase production volumes from the initial 8.4 million
tons per annum to 16.0 million tons per annum export capacity forms part of the
current design and incorporates some of the capital required for the first
phase. The second phase expansion, which would need further Board approval,
will require a further estimated R1.8 billion to increase the capacity to 16.0
million tons per annum export capacity. This second phase expansion is,
however, dependant on further increases in the capacity of Transnet's Sishen/
Saldanha export channel. The capital expenditure for the BKM Mine referred to
above will be funded by Assmang from internally generated cash and funding
facilities available to Assmang.

Delisting of Assmang

On 30 January 2006 minority shareholders of Assmang approved a scheme of
arrangement, in terms of Section 311 of the Companies Act No. 61 of 1973, as
amended, in terms of which Assore Limited ('Assore') will acquire all the
shares in the issued ordinary share capital of Assmang, other than those
already held by ARM and Assore. The High Court of South Africa ( Witwatersrand
Local Division) sanctioned the abovementioned scheme on 7 February 2006.

The effect of this transaction will be that ARM and Assore will each hold a 50%
interest in Assmang and will control the company jointly. Assmang's listing on
the JSE Limited is expected to be terminated on or about 28 February 2006.

ARM Platinum

The ARM Platinum division consists of an effective interest of 41.5% in Modikwa
Platinum Mine, 50% in the Nkomati Nickel Mine, 55% in the Two Rivers Platinum
Project, 50% in the Nkomati Nickel Expansion Project and 90% in Kalplats
Exploration.

Modikwa Platinum Mine

Modikwa, which remains in a build-up phase, has made significant progress in
changing the mining method from down dip mining with reef drives to breast
(strike) mining with footwall drives . Production capacity has been increased
through the improved development rate and the mine is expected to reach design
capacity during the next reporting period.

The improved metals basket price has resulted in a cash operating profit of R70
Million (at 50% ownership) (2004: R8 million) for the six months under review.

                                Six months ended   Six months ended            
                                                                               
Modikwa ­ 100% basis                                                           
                                                                               
                                     31 December        31 December  Percentage
                                                                               
                                            2005               2004      change
                                                                               
Tons milled million tons                    1.29               1.14          13
                                                                               
Head grade (4E) g/t                         4.15               4.35         (5)
                                                                               
Platinum in concentrate                   65 445             60 000           9
ounces                                                                         
                                                                               
Cash cost R/ton                              373                373           ­
                                                                               
Cash cost R/Pt oz                          7 349              7 067         (4)
                                                                               
Capex R million                               60                 54          11

Nkomati Nickel Mine

The Nkomati Nickel Mine again reported consistent, high earnings. Nkomati
continues to mine from various ore bodies and during the past period 23% of the
run of mine tons comprised of MMZ, the ore body targeted for the Expansion
Project. Following the sale of 50% of Nkomati Nickel Mine ('Nkomati') to
LionOre, effective 31 May 2005, results for this reporting period will reflect
50% of the profits from this operation whereas in the comparative six month
period the Nkomati profits were accounted for on a 100% basis.

The mine has again had an excellent performance over the last six months, with
contribution to earnings of R52 million at 50% ownership (R103 million at 100%
ownership).

                                           Six months ended    Six months ended
                                                                               
Nkomati ­ 100% basis                            31 December         31 December
                                                                               
                                                       2005                2004
                                                                               
Cash operating profit R million                         195                 178
                                                                               
Tons milled (`000)                                      182                 184
                                                                               
Nickel head grade (% nickel)                           1.97                1.94
                                                                               
On-mine cash cost per tons treated (R/                  508                 426
ton)                                                                           
                                                                               
Cash cost (net of by-products) US$/lb.                 0.87                1.32
                                                                               
Market sales                                                                   
                                                                               
Nickel tons                                           2 534               2 585
                                                                               
Copper tons                                           1 485               1 693
                                                                               
Cobalt tons                                              42                  49
                                                                               
PGMs ounces                                          16 431              21 502

Nkomati Nickel Expansion Project

The current MSB orebody will be depleted during 2008. The Joint Venture
partners have approved the construction of a new 100 000 tons per month
(increasing from the current 30 000 tons per month) concentrator plant and
relevant infrastructure to mine the MMZ ore body and maintain the current metal
production of 5 000 tons nickel per annum in concentrate. Mining will take
place from the current underground infrastructure as well as from two open pits
over a 10-year period. The estimated capital cost is R384 million and
construction will span 18 months to full production. The above forms part of
the expansion project currently under review.

Two Rivers Platinum Project

The 220 000 oz PGMs per annum Two Rivers Platinum Project was officially
released for construction on 1 June 2005. Of the R1,3 billion estimated capital
expenditure, project finance of R700 million has been secured with the balance
of the funding being contributed by the two partners (ARM 55% and Implats 45%).
The overall project progress to completion remains on plan at 60% complete and
capital expenditure is forecasted to be within budget. The mining stockpile now
exceeds 600 000 tons as mining ramp up progresses. The concentrator plant will
be commissioned during the second half of this calendar year.

Kalplats PGM Exploration Project

ARM and joint venture partner, Platinum Australia Limited, are progressing with
exploration and feasibility work to determine the viability of Kalplats, the
results of which are expected during the next six months.

TEAL Exploration & Mining Incorporated ('TEAL')

TEAL is a mineral development and exploration company that is currently focused
on development projects with properties located in Zambia, Namibia and the
Democratic Republic of Congo. TEAL completed its listing on the Toronto Stock
Exchange on 15 November 2005, raising US$33,3 million in order to further
progress its projects and properties. At listing, ARM diluted its holding to
65% resulting in an exceptional profit of R133 million.

The progress being made at the Mwambashi Copper Project remains encouraging. It
is expected that by the end of the 2006 calendar year, TEAL will have completed
the necessary permitting requirements , finalised marketing and off-take
arrangements; mine site establishment will be concluded and open-pit mining
will have commenced. This is expected to enable the build-up to full production
during the first-half of the 2007 calendar year.

As disclosed at the time of the Initial Public Offering a secondary listing of
TEAL's Common Shares on the JSE Limited is expected to be completed within the
next two months.

SAFETY AND HEALTH

Safety

Our continued focus on safety at all levels within the company is yielding
positive results. Our quarter-on-quarter safety performance also showed
significant improvement, with the LDIFR dropping from 7.5 in the first quarter
to 6.1 in the second quarter. During December 2005, our Beeshoek and
Dwarsrivier mines completed 3 000 and 1 308 fatality free production shifts,
respectively.

Environment

We are pleased to announce that, during January 2006, the Cato Ridge Works
operation received ISO 14001 certification. Presently, most operations are
accredited for either ISO 14001, 9001 and/or 18001.

Outlook

The results as reported further demonstrate the continued benefit to ARM
through its diversified commodity portfolio. Most commodity prices are expected
to remain at similar, or slightly lower, levels in US$ terms for the remainder
of the year. We do not expect the United States Dollar : South African Rand
exchange rate to be materially different from current levels. As a result our
operations continue to strive for increased efficiencies and lower costs in
order to retain competitiveness.

Having made good progress in the release and development of our projects, ARM
is well- positioned to meet its growth strategy of doubling production in key
commodities by year 2010.

Dividends

The company is currently involved in a high expansion phase with a significant
and exciting project pipeline as well as a number of other growth
opportunities. As a result the Board of Directors has decided to conserve
resources and not to declare a dividend for the six months ended 31 December
2005.

Review by independent auditors

The financial information has been reviewed by Ernst & Young whose unqualified
review opinion is available for inspection at the company's registered office.

Signed on behalf of the board:

P T Motsepe                             A J Wilkens                            
                                                                               
Executive Chairman                      Chief Executive Officer                

Johannesburg

17 February 2006

GROUP BALANCE SHEETS

at 31 December 2005                                                            
                                                                               
                                            Reviewed     Unaudited      Audited
                                                                               
                                                  at   31 December   at 30 June
                                                                               
                                                2005          2004         2005
                                                                               
                                                          Restated     Restated
                                                                               
                                   Notes          Rm            Rm           Rm
                                                                               
ASSETS                                                                         
                                                                               
Non-current assets                                                             
                                                                               
Property, plant and equipment                  5 529         4 903        5 025
                                                                               
Intangible assets                                  4             6            5
                                                                               
Deferred tax assets                               69             7           68
                                                                               
Environmental rehabilitation                      29            29           29
trust funds                                                                    
                                                                               
Loans and long-term receivables                    8             ­            ­
                                                                               
Investments                            4       5 404         3 261        3 708
                                                                               
                                              11 043         8 206        8 835
                                                                               
Current assets                                                                 
                                                                               
Inventories                                    1 317         1 210        1 144
                                                                               
Trade and other receivables                    1 166         1 073        1 528
                                                                               
Cash and cash equivalents                        494           225          259
                                                                               
                                               2 977         2 508        2 931
                                                                               
Total assets                                  14 020        10 714       11 766
                                                                               
EQUITY AND LIABILITIES                                                         
                                                                               
Capital and reserves                                                           
                                                                               
Ordinary share capital                            10            10           10
                                                                               
Share premium                                  3 511         3 496        3 497
                                                                               
Other reserves                                   686       (1 168)        (772)
                                                                               
Retained earnings                              4 020         3 552        3 776
                                                                               
Shareholders' interest in                      8 227         5 890        6 511
capital and reserves                                                           
                                                                               
Minority interest                              1 604         1 494        1 461
                                                                               
Total shareholders' interest                   9 831         7 384        7 972
                                                                               
Non-current liabilities                                                        
                                                                               
Long-term borrowings                   5       1 342           787          962
                                                                               
Deferred tax liabilities                       1 106           758          814
                                                                               
Long-term provisions                             208           159          190
                                                                               
                                               2 656         1 704        1 966
                                                                               
Current liabilities                                                            
                                                                               
Trade and other payables                         637           583          861
                                                                               
Provisions                                        35            36           51
                                                                               
Taxation                                         170           174          304
                                                                               
Overdrafts and short-term              5         691           833          612
borrowings                                                                     
                                                                               
                                               1 533         1 626        1 828
                                                                               
Total equity and liabilities                  14 020        10 714       11 766

GROUP INCOME STATEMENTS

for the six months ended 31 December 2005

                                            Reviewed     Unaudited      Audited
                                                                               
                                          Six months    Six months   Year ended
                                               ended         ended             
                                                                               
                                         31 December   31 December      30 June
                                                                               
                                                2005          2004         2005
                                                                               
                                                          Restated     Restated
                                                                               
                                   Note           Rm            Rm           Rm
                                                                               
Revenue                                        2 348         2 391        5 485
                                                                               
Cost of sales                                (1 702)       (1 618)      (3 743)
                                                                               
Gross profit                                     646           773        1 742
                                                                               
Other operating income                           115            27          273
                                                                               
Other operating expenses                       (263)         (168)        (419)
                                                                               
Retrenchment cost                                  ­           (7)          (8)
                                                                               
Profit from operations before                    498           625        1 588
exceptional items                                                              
                                                                               
Income from investments                           10            12           22
                                                                               
Finance costs                                   (81)          (98)        (172)
                                                                               
Loss from associate                                ­         (138)        (150)
                                                                               
Profit before taxation and                       427           401        1 288
exceptional items                                                              
                                                                               
Exceptional items                     6          116           284          155
                                                                               
Profit before taxation                           543           685        1 443
                                                                               
Taxation                                       (166)         (285)        (530)
                                                                               
Profit for period                                377           400          913
                                                                               
Attributable to:                                                               
                                                                               
Minority interest                                130           161          451
                                                                               
Equity holders of the parent                     247           239          462
                                                                               
                                                 377           400          913
                                                                               
Additional information                                                         
                                                                               
Headline earnings (R million)                    131            19          339
                                                                               
Headline earnings per share                       64             9          166
(cents)                                                                        
                                                                               
Basic attributable earnings per                  121           117          226
share (cents)                                                                  
                                                                               
Fully diluted attributable                       120           117          226
earnings per share (cents)                                                     
                                                                               
Fully diluted headline earnings                   64             9          166
per share (cents)                                                              
                                                                               
Number of shares in issue at end             204 864       204 391      204 437
of period (thousands)                                                          
                                                                               
Weighted average number of                   204 724       204 313      204 370
shares in issue (thousands)                                                    
                                                                               
Weighted average number of                                                     
shares                                                                         
                                                                               
used in calculating fully                    205 810       204 619      204 794
diluted earnings per share                                                     
(thousands)                                                                    
                                                                               
Net asset value per share                      4 016         2 882        3 185
(cents)                                                                        

STATEMENTS OF CHANGES IN EQUITY

for the six months ended 31 December 2005

                                              Share                 Revaluation
                                                                               
                                        capital and     Minority      of listed
                                                                               
                                            premium     interest    investments
                                                                               
                                                 Rm           Rm             Rm
                                                                               
Six months ended                                                               
                                                                               
31 December 2005 (Reviewed)                                                    
                                                                               
Balance at 30 June 2005                                                        
                                                                               
as previously reported                        3 507        1 461          (821)
                                                                               
Basic earnings                                    ­            ­              ­
                                                                               
Share options exercised                          14            ­              ­
                                                                               
Revaluation of listed investments                 ­            ­          1 696
                                                                               
Deferred tax on revaluation of                    ­            ­          (247)
listed investments                                                             
                                                                               
Translation reserve on translation                ­            ­              ­
of subsidiary                                                                  
                                                                               
Share-based payments (IFRS 2                      ­            ­              ­
adjustment)                                                                    
                                                                               
Teal Limited minorities                           ­           73              ­
                                                                               
Minority interest in earnings                     ­          130              ­
                                                                               
Dividend paid to minorities                       ­         (60)              ­
                                                                               
Other                                             ­            ­              ­
                                                                               
Balance at 31 December 2005                   3 521        1 604            628
                                                                               
Six months ended                                                               
                                                                               
31 December 2004 (Unaudited)                                                   
                                                                               
Restated                                                                       
                                                                               
Balance at 30 June 2004                                                        
                                                                               
as previously reported                        3 505        1 326              ­
                                                                               
Basic earnings                                    ­            ­              ­
                                                                               
Revaluation of listed investments                 ­            ­        (1 423)
                                                                               
Deferred tax of revaluation of                    ­            ­            216
listed investments                                                             
                                                                               
Share of associate other reserves                 ­            ­              ­
                                                                               
Share-based payments (IFRS 2                      ­            ­              ­
adjustment)                                                                    
                                                                               
Share options exercised                           1            ­              ­
                                                                               
Minority interest in earnings                     ­          161              ­
                                                                               
Dividend paid to minorities                       ­         (13)              ­
                                                                               
Re-allocation risk funding: Two                                                
                                                                               
Rivers                                            ­           20              ­
                                                                               
Other                                             ­            ­              ­
                                                                               
Balance at 31 December 2004                   3 506        1 494        (1 207)
                                                                               
Year ended 30 June 2005 (Audited)                                              
                                                                               
Restated                                                                       
                                                                               
Balance at 30 June 2004                                                        
                                                                               
as previously reported                        3 505        1 326              ­
                                                                               
Basic earnings as previously stated               ­            ­              ­
                                                                               
Revaluation of listed investments                 ­            ­          (962)
                                                                               
Deferred tax on revaluation of                    ­            ­            141
listed investments                                                             
                                                                               
Reversal of associate's other                     ­            ­              ­
reserves                                                                       
                                                                               
Share options exercised                           2            ­              ­
                                                                               
Share-based payments (IFRS 2                      ­            ­              ­
adjustment)                                                                    
                                                                               
Realisation of land and buildings                 ­            ­              ­
                                                                               
Minority interest in earnings                     ­          451              ­
                                                                               
Dividend paid to minorities                       ­         (45)              ­
                                                                               
Re-allocation risk funding: Two                   ­        (271)              ­
Rivers                                                                         
                                                                               
Other                                             ­            ­              ­
                                                                               
Balance at 30 June 2005                       3 507        1 461          (821)
                                                                               
                                           Retained                            
                                                                               
                                              Other     earnings          Total
                                                                               
                                                 Rm           Rm             Rm
                                                                               
Six months ended                                                               
                                                                               
31 December 2005 (Reviewed)                                                    
                                                                               
Balance at 30 June 2005                                                        
                                                                               
as previously reported                           49        3 776          7 972
                                                                               
Basic earnings                                    ­          247            247
                                                                               
Share options exercised                           ­            ­             14
                                                                               
Revaluation of listed investments                 ­            ­          1 696
                                                                               
Deferred tax on revaluation of                    ­            ­          (247)
listed investments                                                             
                                                                               
Translation reserve on translation              (6)            ­            (6)
of subsidiary                                                                  
                                                                               
Share-based payments (IFRS 2                     14            ­             14
adjustment)                                                                    
                                                                               
Teal Limited minorities                           ­            ­             73
                                                                               
Minority interest in earnings                     ­            ­            130
                                                                               
Dividend paid to minorities                       ­            ­           (60)
                                                                               
Other                                             1          (3)            (2)
                                                                               
Balance at 31 December 2005                      58        4 020          9 831
                                                                               
Six months ended                                                               
                                                                               
31 December 2004 (Unaudited)                                                   
                                                                               
Restated                                                                       
                                                                               
Balance at 30 June 2004                                                        
                                                                               
as previously reported                        (193)        3 316          7 954
                                                                               
Basic earnings                                    ­          239            239
                                                                               
Revaluation of listed investments                 ­            ­        (1 423)
                                                                               
Deferred tax of revaluation of                    ­            ­            216
listed investments                                                             
                                                                               
Share of associate other reserves               235            ­            235
                                                                               
Share-based payments (IFRS 2                      1            ­              1
adjustment)                                                                    
                                                                               
Share options exercised                           ­            ­              1
                                                                               
Minority interest in earnings                     ­            ­            161
                                                                               
Dividend paid to minorities                       ­            ­           (13)
                                                                               
Re-allocation risk funding: Two                   ­            ­             20
Rivers                                                                         
                                                                               
Other                                           (4)          (3)            (7)
                                                                               
Balance at 31 December 2004                      39        3 552          7 384
                                                                               
Year ended 30 June 2005 (Audited)                                              
                                                                               
Restated                                                                       
                                                                               
Balance at 30 June 2004                                                        
                                                                               
as previously reported                        (193)        3 316          7 954
                                                                               
Basic earnings as previously stated               ­          462            462
                                                                               
Revaluation of listed investments                 ­            ­          (962)
                                                                               
Deferred tax on revaluation of                    ­            ­            141
listed investments                                                             
                                                                               
Reversal of associate's other                   235            ­            235
reserves                                                                       
                                                                               
Share options exercised                           ­            ­              2
                                                                               
Share-based payments (IFRS 2                     11            ­             11
adjustment)                                                                    
                                                                               
Realisation of land and buildings               (6)            ­            (6)
                                                                               
Minority interest in earnings                     ­            ­            451
                                                                               
Dividend paid to minorities                       ­            ­           (45)
                                                                               
Re-allocation risk funding: Two                   ­            ­          (271)
Rivers                                                                         
                                                                               
Other                                             2          (2)              ­
                                                                               
Balance at 30 June 2005                          49        3 776          7 972

GROUP CASH FLOW STATEMENTS

for the six months ended 31 December 2005

                                           Reviewed      Unaudited      Audited
                                                                               
                                         Six months     Six months   Year ended
                                              ended          ended             
                                                                               
                                        31 December    31 December      30 June
                                                                               
                                               2005           2004         2005
                                                                               
                                                 Rm             Rm           Rm
                                                                               
CASH FLOW FROM OPERATING ACTIVITIES                                            
                                                                               
Cash receipts from customers                  2 799          2 574        5 297
                                                                               
Cash paid to suppliers and                  (2 133)        (1 966)      (3 636)
employees                                                                      
                                                                               
Cash generated from operations                  666            608        1 661
                                                                               
Interest received                                10             12           22
                                                                               
Interest paid                                  (81)          (105)        (183)
                                                                               
                                                  ­                            
                                                                               
Dividends received                               19             19             
                                                                               
Dividends paid to minorities                   (60)           (13)         (45)
                                                                               
Taxation paid                                 (256)           (55)        (168)
                                                                               
Net cash inflow from operating                  279            466        1 306
activities                                                                     
                                                                               
CASH FLOW FROM INVESTING ACTIVITIES                                            
                                                                               
Additions to fixed assets to                  (391)          (349)        (705)
maintain operations                                                            
                                                                               
Additions to fixed assets to expand           (303)           (92)        (297)
operations                                                                     
                                                                               
Proceeds on disposal of property                  2             50           39
plant and equipment                                                            
                                                                               
Proceeds on disposal of investments               ­              9             
                                                                               
Increase in loans and long-term                 (8)              ­            ­
receivable                                                                     
                                                                               
Net cash effect on disposal of 50%                ­            136            ­
of Nkomati mine                                                                
                                                                               
Investments acquired                              ­            (8)             
                                                                               
Net cash outflow from investing               (700)          (391)        (826)
activities                                                                     
                                                                               
CASH FLOW FROM FINANCING ACTIVITIES                                            
                                                                               
Proceeds on exercise of share                    14              1            2
options                                                                        
                                                                               
Funding received from minority                   47             21            ­
shareholders                                                                   
                                                                               
Investment by minority shareholders             215              ­            ­
                                                                               
Long-term borrowings raised                     391             30          110
                                                                               
Long-term borrowings repaid                   (135)           (94)        (215)
                                                                               
Increase/(Decrease) in short-term               129          (136)        (446)
borrowings                                                                     
                                                                               
Net cash inflow/(outflow) from                  661          (178)        (549)
financing activities                                                           
                                                                               
Net increase/(decrease) in cash and             240          (103)         (69)
cash equivalents                                                               
                                                                               
Effects of exchange rate changes                (5)              ­            ­
                                                                               
Cash and cash equivalents at                    259            328          328
beginning of period                                                            
                                                                               
Cash and cash equivalents at end of             494            225          259
period                                                                         
                                                                               
Cash generated from operations per              325            298          813
share (cents)                                                                  

NOTES TO THE FINANCIAL STATEMENTS

for the six months ended 31 December 2005

1. BASIS OF PREPARATION

The reviewed results for the half-year have been prepared in accordance with
International Financial Reporting Standards ('IFRS') on a historical cost basis
except for certain derivative financial instruments that have been measured at
fair value.

The financial information for the half-year ended 31 December 2005 has been
prepared adopting the same accounting policies used in the most recent annual
financial statements, except for the adoption of the new statement IFRS 2 ­
share- based payments.

As a result the previously reported results for the half-year ended 31 December
2004 and the year ended 30 June 2005 have been restated as is more fully
explained below.

These consolidated financial statements are prepared in accordance with IAS 34
­ interim financial reporting.

2. IMPLICATIONS OF ADOPTING IFRS 2 ­ SHARE-BASED PAYMENTS

The group grants share options to employees under employee share incentive
schemes. In accordance with the requirements of IFRS 2, the group now
recognises an expense in the income statement with a corresponding credit to
equity. The fair value at the date of granting the options is charged to income
on a straight-line basis over the relevant option vesting periods, adjusted to
reflect actual and expected levels of vesting.

This new statement has been applied retrospectively by the group and results in
a restatement of prior year financial information.

This statement becomes effective for the ARM group for the financial year
ending 30 June 2006.

The prior and current reporting period adjustments are:

­ Half-year ended 31 December 2005: R14 million ­ charge to income statement.

­ Financial year ended 30 June 2005: R11 million ­ charge to income statement
and restatement of comparatives.

- Half-year ended 31 December 2004: R1 million ­ charge to income statement and
restatement of comparatives.

NOTES TO THE FINANCIAL STATEMENTS

for the six months ended 31 December 2005

                                           Reviewed       Unaudited     Audited
                                                                               
                                   Six months ended      Six months  Year ended
                                                              ended            
                                                                               
                                        31 December     31 December     30 June
                                                                               
                                               2005            2004        2005
                                                                               
                                           Restated        Restated            
                                                                               
                                                 Rm              Rm          Rm
                                                                               
3. INVESTMENT IN ASSOCIATE                                                     
                                                                               
Opening balance                                   -           4 338       4 338
                                                                               
Movement for period                               -           (138)         329
                                                                               
Transfer to investments                           -         (4 200)     (4 667)
                                                                               
Closing balance                                   ­               ­           ­
                                                                               
The investment in Harmony has been                                             
accounted for as an associate from                                             
the date of acquisition to 30                                                  
November 2004 which was the date                                               
when the ARM interest diluted to                                               
16.19% following the new share                                                 
issue by Harmony to certain Gold                                               
Fields shareholders.                                                           
                                                                               
4. INVESTMENTS                                                                 
                                                                               
Listed                                                                         
                                                                               
Opening balance                               3 708               3           3
                                                                               
Transfer from associates                          -           4 200       4 667
                                                                               
Unrealised fair value adjustment              1 696         (1 207)       (962)
                                                                               
Realisation of unrealised profit                                               
on sale of                                                                     
                                                                               
Avgold                                            -             265           ­
                                                                               
Total carrying amount of                      5 404           3 261       3 708
investments                                                                    
                                                                               
5. BORROWINGS                                                                  
                                                                               
Long-term borrowings are held as                                               
follows:                                                                       
                                                                               
­ African Rainbow Minerals Limited              225             212         130
                                                                               
­ Assmang Limited                                13              14          13
                                                                               
­ ARM Platinum (Proprietary)                    459             561         465
Limited                                                                        
                                                                               
­ Two Rivers Platinum                           645               ­         354
(Proprietary) Limited                                                          
                                                                               
                                              1 342             787         962
                                                                               
Overdrafts and short-term                                                      
borrowings are held as follows:                                                
                                                                               
­ African Rainbow Minerals Limited              309             109         249
                                                                               
­ Assmang Limited                               225             567         161
                                                                               
­ ARM Platinum (Proprietary)                    148             157         202
Limited                                                                        
                                                                               
­ Two Rivers Platinum                             9               ­           ­
(Proprietary) Limited                                                          
                                                                               
                                                691             833         612
                                                                               
Total borrowings                              2 033           1 620       1 574

Interest of R14 million was capitalised for the half-year ended 31 December
2005 (31 December 2004: R1 million, 30 June 2005: R7 million).

NOTES TO THE FINANCIAL STATEMENTS

for the six months ended 31 December 2005

                                           Reviewed       Unaudited     Audited
                                                                               
                                   Six months ended      Six months  Year ended
                                                              ended            
                                                                               
                                        31 December     31 December     30 June
                                                                               
                                               2005            2004        2005
                                                                               
                                           Restated        Restated            
                                                                               
                                                 Rm              Rm          Rm
                                                                               
6. EXCEPTIONAL ITEMS                                                           
                                                                               
Profit on disposal of Avgold                      -             265         265
(associate)                                                                    
                                                                               
Profit on sale of property plant                 13               ­            
and equipment                                                                  
                                                                               
Impairment of property, plant and              (12)               ­        (35)
equipment                                                                      
                                                                               
Loss on disposal of 50 per cent of                ­               ­        (82)
Nkomati mine                                                                   
                                                                               
Profit on dilution in subsidiary                133               ­           ­
                                                                               
Other                                           (5)               6           7
                                                                               
Exceptional items per income                    116             284         155
statement                                                                      
                                                                               
Taxation                                          ­            (66)        (41)
                                                                               
Minority interest                                 ­             (4)           5
                                                                               
Profit on sale of property, plant                 ­                            
and equipment in associates                                                    
                                                                               
                                                  6               4            
                                                                               
Net exceptional items                           116             220         123
                                                                               
7. HEADLINE EARNINGS                                                           
                                                                               
Basic earnings per income                       247             239         462
statement                                                                      
                                                                               
Loss on sale of Chambishi                         ­               ­         (7)
(subsidiary)                                                                   
                                                                               
Impairment of property, plant and                12               ­          35
equipment                                                                      
                                                                               
(Profit)/Loss on sale of property                 -            (13)           6
plant and equipment                                                            
                                                                               
Profit on sale of property, plant               (6)             (4)            
and equipment in associate                                                     
                                                                               
Loss on disposal of 50 per cent of                ­               ­          82
Nkomati mine                                                                   
                                                                               
Profit on disposal of Avgold                  (265)           (265)            
(associate)                                                                    
                                                                               
Profit on dilution in subsidiary              (133)               ­           ­
                                                                               
Loss on dilution of associate                     -               ­           2
                                                                               
Other                                             5             (6)         (8)
                                                                               
                                                131            (51)         303
                                                                               
Taxation                                          ­              66          41
                                                                               
Minority interest                                 ­               4         (5)
                                                                               
Headline earnings                               131              19         339
                                                                               
8. COMMITMENTS AND CONTINGENT                                                  
LIABILITIES                                                                    
                                                                               
Commitments in respect of future                                               
capital expenditure which will be                                              
funded from cash generated and                                                 
available borrowing resources are                                              
summarised below:                                                              
                                                                               
Approved by directors                                                          
                                                                               
­ contracted for                                689             160         251
                                                                               
­ not contracted for                            801             326         272
                                                                               
Total commitments                             1 490             486         523

Contingent liabilities

Shareholders are advised that there have been no significant changes to the

contingent liabilities of the group as disclosed in the June 2005 annual

report.

NOTES TO THE FINANCIAL STATEMENTS

for the six months ended 31 December 2005

                                                             ARM               
                                                                               
                                               Platinum Division        Ferrous
                                                                               
                                        Gold    Platinum     Nickel      metals
                                                                               
                                          Rm          Rm         Rm          Rm
                                                                               
9. SEGMENTAL INFORMATION                                                       
                                                                               
Primary segmental                                                              
                                                                               
information                                                                    
                                                                               
Six months ended                                                               
                                                                               
31 December 2005 (Reviewed)                                                    
                                                                               
Revenue                                                                        
                                                                               
External revenue                           ­         309        169       1 870
                                                                               
Cost of sales                              ­       (292)       (95)     (1 315)
                                                                               
Other operating income per income          ­           ­         21          16
statement                                                                      
                                                                               
Insurance premiums written                 ­           ­          ­           ­
non-Group companies                                                            
                                                                               
Other operating income                     ­           ­         21          16
                                                                               
Reinsurance premiums non-Group             ­           ­          ­           ­
companies                                                                      
                                                                               
Other operating expenses                   ­         (1)       (22)       (126)
                                                                               
Segment result                             ­          16         73         445
                                                                               
Income from investments                    ­           1          1           1
                                                                               
Finance cost                               ­        (45)          ­        (16)
                                                                               
Exceptional items                          ­           ­          ­           ­
                                                                               
Taxation                                   ­           8       (22)       (155)
                                                                               
Minority interest                          ­           3          ­       (137)
                                                                               
Contribution to earnings                   ­        (17)         52         138
                                                                               
Contribution to headline earnings          ­        (17)         52         138
                                                                               
Other information                                                              
                                                                               
Segment assets                         5 401       2 707        272       5 089
                                                                               
Taxation                                   ­           ­          ­           ­
                                                                               
Consolidated total assets                  ­           ­          ­           ­
                                                                               
Segment liabilities                        ­       1 390         17         738
                                                                               
Taxation                                   ­           ­          ­           ­
                                                                               
Consolidated total liabilities             ­         ­ ­          ­            
                                                                               
Cash in /(out) flow from                   ­        (10)         22         214
operating activities                                                           
                                                                               
Cash in/(out) flow from investing          ­       (368)       (12)       (318)
activities                                                                     
                                                                               
Cash inflow from financing                 ­         213          ­          65
activities                                                                     
                                                                               
Capital expenditure                        ­         395         14         313
                                                                               
Amortisation and depreciation              ­          50         22         148

                                                         Corpo-                
                                                                               
                                           Explo-      rate and                
                                                                               
                                           ration         other           Total
                                                                               
                                               Rm            Rm              Rm
                                                                               
9. SEGMENTAL INFORMATION                                                       
                                                                               
Primary segmental                                                              
                                                                               
information                                                                    
                                                                               
Six months ended                                                               
                                                                               
31 December 2005 (Reviewed)                                                    
                                                                               
Revenue                                                                        
                                                                               
External revenue                                ­             ­           2 348
                                                                               
Cost of sales                                   ­             ­         (1 702)
                                                                               
Other operating income per income               ­            78             115
statement                                                                      
                                                                               
Insurance premiums written                      ­            59              59
non-Group companies                                                            
                                                                               
Other operating income                          ­            19              56
                                                                               
Reinsurance premiums non-Group                  ­          (57)            (57)
companies                                                                      
                                                                               
Other operating expenses                     (10)          (47)           (206)
                                                                               
Segment result                               (10)          (26)             498
                                                                               
Income from investments                         1             6              10
                                                                               
Finance cost                                    ­          (20)            (81)
                                                                               
Exceptional items                               ­           116             116
                                                                               
Taxation                                        ­             3           (166)
                                                                               
Minority interest                               4             ­           (130)
                                                                               
Contribution to earnings                      (5)            79             247
                                                                               
Contribution to headline earnings             (5)          (37)             131
                                                                               
Other information                                                              
                                                                               
Segment assets                                214           268          13 951
                                                                               
Taxation                                        ­             ­              69
                                                                               
Consolidated total assets                       ­             ­          14 020
                                                                               
Segment liabilities                            10           758           2 913
                                                                               
Taxation                                        ­             ­           1 276
                                                                               
Consolidated total liabilities                  ­             ­           4 189
                                                                               
Cash in /(out) flow from operating              2            51             279
activities                                                                     
                                                                               
Cash in/(out) flow from investing             (3)             1           (700)
activities                                                                     
                                                                               
Cash inflow from financing                    216           167             661
activities                                                                     
                                                                               
Capital expenditure                             ­             ­             722
                                                                               
Amortisation and depreciation                   ­             ­             220

NOTES TO THE FINANCIAL STATEMENTS

for the six months ended 31 December 2005

                                                              ARM              
                                                                               
                                                Platinum Division       Ferrous
                                                                               
                                        Gold     Platinum     Nickel     metals
                                                                               
                                          Rm           Rm         Rm         Rm
                                                                               
9. SEGMENTAL INFORMATION                                                       
                                                                               
(continued)                                                                    
                                                                               
Six months ended                                                               
                                                                               
31 December 2004                                                               
                                                                               
(Unaudited)                                                                    
                                                                               
Restated*                                                                      
                                                                               
Revenue                                                                        
                                                                               
External revenue                           ­          195        309      1 887
                                                                               
Cost of sales                              ­        (246)      (145)    (1 227)
                                                                               
Other operating income                     ­            ­          9          8
                                                                               
Other operating expenses                   ­          (2)       (32)      (100)
                                                                               
Segment result                             ­         (53)        141        568
                                                                               
Income from investments                    ­            1          1          1
                                                                               
Finance cost                               ­         (52)          ­       (33)
                                                                               
Loss from associate                    (138)            ­          ­          ­
                                                                               
Exceptional items                          ­            ­          ­          8
                                                                               
Taxation                                   ­           25       (39)      (182)
                                                                               
Minority interest                          ­           18          ­      (179)
                                                                               
Contribution to earnings               (138)         (61)        103        183
                                                                               
Contribution to headline earnings      (144)         (61)        103        179
                                                                               
Other information                                                              
                                                                               
Consolidated total assets              3 258        2 085        535      4 520
                                                                               
Consolidated total liabilities             ­          862        173      1 705
                                                                               
Cash in/(out) flow from operating          ­        (106)        140        485
activities                                                                     
                                                                               
Cash outflow from investing                ­        (107)       (12)      (267)
activities                                                                     
                                                                               
Cash in/(out) flow from financing          ­         (43)          ­      (170)
activities                                                                     
                                                                               
Capital expenditure                        ­          107         12        286
                                                                               
Amortisation and depreciation              ­           31         13        121

                                            Corpo-                             
                                                                               
                                            Explo-        rate and             
                                                                               
                                            ration           other        Total
                                                                               
                                                Rm              Rm           Rm
                                                                               
9. SEGMENTAL INFORMATION                                                       
                                                                               
(continued)                                                                    
                                                                               
Six months ended                                                               
                                                                               
31 December 2004                                                               
                                                                               
(Unaudited)                                                                    
                                                                               
Restated*                                                                      
                                                                               
Revenue                                                                        
                                                                               
External revenue                                 ­               ­        2 391
                                                                               
Cost of sales                                    ­               ­      (1 618)
                                                                               
Other operating income                           ­              10           27
                                                                               
Other operating expenses                         ­            (41)        (175)
                                                                               
Segment result                                   ­            (31)          625
                                                                               
Income from investments                          ­               9           12
                                                                               
Finance cost                                     ­            (13)         (98)
                                                                               
Loss from associate                              ­               ­        (138)
                                                                               
Exceptional items                                ­             276          284
                                                                               
Taxation                                         ­            (89)        (285)
                                                                               
Minority interest                                ­               ­        (161)
                                                                               
Contribution to earnings                         ­             152          239
                                                                               
Contribution to headline earnings                ­            (58)           19
                                                                               
Other information                                                              
                                                                               
Consolidated total assets                        ­             316       10 714
                                                                               
Consolidated total liabilities                   ­             590        3 330
                                                                               
Cash in/(out) flow from operating                ­            (53)          466
activities                                                                     
                                                                               
Cash outflow from investing                      ­             (5)        (391)
activities                                                                     
                                                                               
Cash in/(out) flow from financing                ­              35        (178)
activities                                                                     
                                                                               
Capital expenditure                              ­              36          441
                                                                               
Amortisation and depreciation                    ­               1          166

NOTES TO THE FINANCIAL STATEMENTS

for the six months ended 31 December 2005

                                                            ARM                
                                                                               
                                              Platinum Division         Ferrous
                                                                               
                                        Gold   Platinum      Nickel      metals
                                                                               
                                          Rm         Rm          Rm          Rm
                                                                               
9. SEGMENTAL INFORMATION                                                       
                                                                               
(continued)                                                                    
                                                                               
Year ended 30 June 2005                                                        
                                                                               
(Audited)                                                                      
                                                                               
Restated*                                                                      
                                                                               
Revenue                                                                        
                                                                               
External revenue                           ­        456         623       4 406
                                                                               
Cost of sales                              ­      (532)       (295)     (2 916)
                                                                               
Other operating income per income          ­          ­          46         166
statement                                                                      
                                                                               
Insurance premiums written                 ­          ­           ­           ­
non-Group companies                                                            
                                                                               
Other operating income                     ­          ­          46         166
                                                                               
Reinsurance premiums non-Group             ­          ­           ­           ­
companies                                                                      
                                                                               
Exploration                                ­          ­           ­           ­
                                                                               
Other operating expenses                   ­        (7)        (63)       (193)
                                                                               
Segment result                             ­       (83)         311       1 463
                                                                               
Income from investments                    ­          2           2           2
                                                                               
Finance cost                               ­      (104)           ­        (41)
                                                                               
Loss from associate                    (150)          ­           ­           ­
                                                                               
Exceptional items                        (2)          ­           ­        (10)
                                                                               
Taxation                                   ­         66        (94)       (465)
                                                                               
Minority interest                          ­         20           ­       (471)
                                                                               
Contribution to earnings               (152)       (99)         219         478
                                                                               
Contribution to headline earnings      (155)       (99)         219         480
                                                                               
Other information                                                              
                                                                               
Segment assets                         3 706      2 295         269       5 069
                                                                               
Taxation                                   ­          ­           ­           ­
                                                                               
Consolidated total assets              3 706      2 295         269       5 069
                                                                               
Segment liabilities                        ­      1 138          17         790
                                                                               
Taxation                                   ­          ­           ­           ­
                                                                               
Consolidated total liabilities             ­          ­           ­           ­
                                                                               
Cash in/(out) flow from operating          ­      (179)         304       1 307
activities                                                                     
                                                                               
Cash in/(out) flow from investing          ­      (265)        (20)       (655)
activities                                                                     
                                                                               
Cash in/(out) flow from financing          ­       (30)           ­       (577)
activities                                                                     
                                                                               
Capital expenditure                        ­        280          20         699
                                                                               
Amortisation and depreciation              ­         85          54         285

                                                          Corpo-               
                                                                               
                                             Explo-     rate and               
                                                                               
                                             ration        other          Total
                                                                               
                                                 Rm           Rm             Rm
                                                                               
9. SEGMENTAL INFORMATION                                                       
                                                                               
(continued)                                                                    
                                                                               
Year ended 30 June 2005                                                        
                                                                               
(Audited)                                                                      
                                                                               
Restated*                                                                      
                                                                               
Revenue                                                                        
                                                                               
External revenue                                  ­            ­          5 485
                                                                               
Cost of sales                                     ­            ­        (3 743)
                                                                               
Other operating income per income                 ­           61            273
statement                                                                      
                                                                               
Insurance premiums written non-Group              ­           55             55
companies                                                                      
                                                                               
Other operating income                            ­            6            218
                                                                               
Reinsurance premiums non-Group                    ­         (59)           (59)
companies                                                                      
                                                                               
Exploration                                       ­         (25)           (25)
                                                                               
Other operating expenses                          ­         (80)          (343)
                                                                               
Segment result                                    ­        (103)          1 588
                                                                               
Income from investments                           ­           16             22
                                                                               
Finance cost                                      ­         (27)          (172)
                                                                               
Loss from associate                               ­            ­          (150)
                                                                               
Exceptional items                                 ­          167            155
                                                                               
Taxation                                          ­         (37)          (530)
                                                                               
Minority interest                                 ­            ­          (451)
                                                                               
Contribution to earnings                          ­           16            462
                                                                               
Contribution to headline earnings                 ­        (106)            339
                                                                               
Other information                                                              
                                                                               
Segment assets                                    ­          359         11 698
                                                                               
Taxation                                          ­           68             68
                                                                               
Consolidated total assets                         ­          427         11 766
                                                                               
Segment liabilities                               ­          731          2 676
                                                                               
Taxation                                          ­            ­          1 118
                                                                               
Consolidated total liabilities                    ­            ­          3 794
                                                                               
Cash in/(out) flow from operating                 ­        (126)          1 306
activities                                                                     
                                                                               
Cash in/(out) flow from investing                 ­          114          (826)
activities                                                                     
                                                                               
Cash in/(out) flow from financing                 ­           58          (549)
activities                                                                     
                                                                               
Capital expenditure                               ­           38          1 037
                                                                               
Amortisation and depreciation                     ­            2            426

CONTACT DETAILS AND ADMINISTRATION

Registered office

ARM House

29 Impala Road

Chislehurston

Sandton 2146

PO Box 786136

Sandton, 2146

Telephone: +27 11 779 1300

Telefax: +27 11 779 1312

E-mail: [email protected]

Website: http://www.arm.co.za

Investor relations

Pieter Rorich

Executive: Corporate Development

Telephone: +27 11 779 1476

[email protected]

Corne Bobbert

Corporate Development

Telephone: +27 11 779 1478

[email protected]

Portia Sebulela

Investor Relations Officer

Telephone: +27 11 779 1300

[email protected]

Company secretary

Annamarie van der Merwe

Telephone: +27 11 779 1480

[email protected]

United Kingdom Secretaries

St James's Corporate Services Limited

6 St James's Place

London SW1A 1NP

Telephone: +44 20 7499 3916

Telefax: +44 20 7491 1989

Transfer secretaries

South Africa

Computershare Investor Services

Ground Floor, 70 Marshall Street

Johannesburg 2001

PO Box 61051

Marshalltown, 2107

Telephone: +27 11 370 5000

Telefax: +27 11 688 5222

United Kingdom

Capita Registrars

The Registry

34 Beckenham Road

Beckenham

Kent BR34TU

Telephone: +44 870 162 3100

Telefax: +44 20 8658 3430

African Rainbow Minerals Limited

(Incorporated in the Republic of South Africa)

(Reg. No. 1933/004580/06)

(ISIN code: ZAE 000054045)

Directors

P T Motsepe (Executive Chairman)

R P Menell (Deputy Chairman)

A J Wilkens (Chief Executive Officer)

F Abbott

Dr M M M Bakane-Tuoane**

J A Chissano (Mozambican)**

W M Gule

M W King**

A K Maditsi**

J R McAlpine**

Dr P S Sibisi**

Dr R V Simelane**

M V Sisulu**

J C Steenkamp

Z B Swanepoel*

(*Non-executive

**Independent non-executive)


                                                                                                                                                                                           

a d v e r t i s e m e n t