Anooraq and Anglo Platinum Report Results of Lebowa Technical Review

    -   Lebowa Technical Review completed
    -   Revised Production Scheduling and Cost Estimates
    -   Revised Lebowa Life of Mine plan (100%) Indicates Positive Net
        Present Value

    VANCOUVER, May 14 /CNW/ - Anooraq Resources Corporation ("Anooraq" or the
"Company") (TSXV: ARQ; NYSE Amex:   ANO; JSE: ARQ) announces that, together with
Anglo Platinum Limited ("Anglo Platinum") (referred to collectively as "the
parties"), it has completed the technical review of Lebowa Platinum Mine
("Lebowa") reported in the November 14, 2008 news release. The technical
review was undertaken as a joint initiative between the parties resulting from
the material decline in global economic conditions and commodity markets
during the second half of 2008.
    The primary purpose of the joint technical review was to determine and
adopt an optimal mine plan, production schedule and capital expenditure
program at Lebowa in terms of current and estimated future market conditions
("the revised plan").
    Pursuant to definitive transaction agreements entered into between the
parties in March 2008, Anglo Platinum will sell to Anooraq an effective 51% of
Lebowa (currently 100% owned by Anglo Platinum), and an additional 1% interest
in each of the Ga-Phasha Platinum Group Metals ("PGM") Project ("Ga-Phasha"),
Boikgantsho PGM Project ("Boikgantsho") and Kwanda PGM Project ("Kwanda").
Anooraq currently holds interests in Ga-Phasha, Boikgantsho, and Kwanda by way
of 50/50 joint ventures with Anglo Platinum and will increase its interests in
each of these projects from 50% to 51% on completion of the transaction
("Lebowa transaction"). All of these projects are located in the Bushveld
Complex of South Africa. Upon completion of the Lebowa transaction, Anooraq
will control the third largest PGM resource base in South Africa.

    Revised Lebowa Operations & Growth Plan

    -   Lebowa is an operating mine located on the North-Eastern limb of the
        Bushveld Complex, north of and adjacent to the Ga-Phasha property.

    -   Lebowa consists of a vertical shaft and a number of decline shaft
        systems to access the underground development on the Merensky and UG2
        Reefs, as well as two concentrator plants.

    -   Production at Lebowa in 2008(1) was approximately 147,600 refined
        ounces of platinum, palladium, rhodium and gold ("4E") from
        1.1 million tonnes ("Mt") of ore milled.

    -   In terms of the revised plan, the parties have determined to
        implement an initial plan at Lebowa by:

        -  extending current Merensky production at the Vertical shaft and
           UM2 incline shaft. At the same time the Merensky production
           profile at the new Brakfontein decline shaft system will ramp up
           to steady state production of approximately 120,000 tonnes per
           month ("tpm"). Once Brakfontein Merensky production is at steady
           state, production from the Vertical and UM2 shafts will be phased
           out; and

        -  retaining the existing UG2 production levels at Middelpunt Hill
           (approximately 45,000 tpm) and deferring the Middelpunt Hill Delta
           80 expansion project ("MPH Delta 80 project").

    -   Once the initial plan has been executed, the parties intend to
        increase the existing UG2 production profile to approximately
        125,000 tpm at steady state through commissioning of the MPH Delta 80
        project commencing in 2016, and thereby increasing Lebowa production
        to approximately 245,000 tpm at steady state by 2019.

    -   The revised plan will be reviewed by the parties on a regular basis
        in terms of current and estimated future market conditions.

    (1) Anglo Platinum Annual Report, 31 December 2008

    Pursuant to the completion of the revised plan, Anooraq engaged Deloitte
Mining Advisory Services ("Deloitte") to update the technical review of Lebowa
completed in 2008 (see April 14, 2008 news release).
    The technical review confirmed the following Mineral Reserves and
Resources, published by Anglo Platinum in their 2008 annual report, subject to
certain qualifications as detailed in the TR.

    December 2008 Mineral Reserves

                                                       4E              4E
                                    Tonnage          grade         contained
                      Category        (Mt)           (g/t)        metal (Moz)
    Merensky Reef      Proven        21.71            4.34            3.03
                      Probable        5.43            4.16            0.73
                   Total Reserve     27.14            4.31            3.76

    UG2 Reef           Proven        32.10            5.43            5.60
                      Probable        9.10            5.17            1.50
                   Total Reserve     41.20            5.37            7.10

    Notes: The Mineral Reserves stated are for 100% of Lebowa. Anooraq's
           interest would be 51% of the above Mineral Reserves once the
           transaction is completed.
           Mineral Reserves are exclusive of Mineral Resources. Tonnes and
           ounces have been rounded and this may have resulted in minor
           The 4E elements are the sum of platinum (Pt), palladium (Pd),
           rhodium (Rh) and gold (Au).
           Only Measured and Indicated Resources have been converted to
           Mineral Reserves.
           Mineral Reserve grade is based on the hoisted ore grade.
           The Mine Call Factors used in the estimations of Proven and
           Probable Reserves are 97% and 98%, respectively.

    December 2008 Mineral Resources
                           Ton-    4E    tained    Pt     Pd     Rh     Au
               Category    nage   grade   metal   grade  grade  grade  grade
                           (Mt)   (g/t)   (Moz)   (g/t)  (g/t)  (g/t)  (g/t)
               Measured   25.92   5.64    4.71    3.63    1.5   0.21   0.30
              Indicated   27.39   5.51    4.85    3.46   1.52   0.20   0.33
    Merensky   Measured
              Indicated   53.31   5.58    9.56    3.54   1.51   0.20   0.32
               Inferred   102.9   5.30   17.53    3.34   1.45   0.20   0.31

               Measured   108.5   6.60   23.03    2.70   3.23   0.55   0.12
              Indicated   71.91   6.56   15.18    2.70   3.20   0.53   0.13
       UG2     Measured
              Indicated  180.38   6.58   38.21    2.70   3.22   0.54   0.12
               Inferred  145.00   6.61   30.82    2.72   3.23   0.53   0.13
    Notes: The Mineral Resources stated are for 100% of Lebowa. Anooraq's
           interest would be 51% of the above Mineral Resources once the
           transaction is completed.
           Mineral Resources are exclusive of Mineral Reserves.
           Tonnes and ounces have been rounded and this may have resulted in
           minor discrepancies.
           The 4E elements are platinum (Pt), palladium (Pd), rhodium (Rh)
           and gold (Au).
           The UG2 Resources include areas of bifurcated UG2 reef.

    Approach to the technical review and report

    The technical report ("TR"), written in compliance with National
Instrument 43-101 and the Canadian Institute and Mining and Metallurgy ("CIM")
Definition Standards, describes the Lebowa mineral exploration, development
and mining production. The TR is based on Deloitte's detailed technical review
of work performed by others. The TR was completed by the following independent
qualified persons, who have reviewed the contents of this release: J.
Schweitzer, Pr.Sci.Nat., FSAIMM and S. de Waal, Pr.Sci.Nat., (geology,
mineralization and mineral resources), G. Guler, PrEng, FSAIMM, MAusIMM
(mineral reserves and mine planning), T. Naidoo, Pr.Sci.Nat. (exploration,
drilling, sampling and data verification), and P. Kramers, PrEng., FSAIMM
(mineral processing and metallurgical testing).
    Both the 2007 and 2008 Mineral Resource and Reserve estimates were
compiled by Anglo Platinum personnel, who have stated that the estimates are
in accordance with the Australasian Code for the Reporting of Mineral
Resources and Mineral Reserves ("JORC 2004") and with the South African Code
for Reporting of Mineral Resources and Mineral Reserves ("SAMREC 2007"). In
the opinion of Deloitte, there would not be a material difference in the
estimations if done under CIM 2005.
    Deloitte has accepted Anglo Platinum's Mineral Resource and Reserve
estimates, subject to certain qualifications as detailed in the TR. In the
qualified persons' opinions, these qualifications will not have a material
effect on future mineral resource estimates, as indicated in the TR.

    Results of the technical review - Economic analysis

    The economic analysis undertaken for the technical review used South
African Rand ("ZAR") as the base currency and takes into consideration
relevant taxes and royalties. The technical review used projected metal prices
based on analyst consensus estimates to 2012 resulting in the following
average price forecast over the next five years:

      Metal Prices                  2009    2010    2011    2012  (Real 2008)
    Platinum (US$/oz)    Nominal    1052    1237    1369    1398     1339
    Palladium (US$/oz)   Nominal     235     293     349     363      378
    Rhodium (US$/oz)     Nominal    2831    3421    4049    4436     3700
    Nickel (US$/lb)      Nominal     5.6     6.7     7.5     7.9      7.2
    Copper (US$/lb)      Nominal     1.9     2.3     2.7     2.6      1.9

    Following is the weighted unit revenue for the 4E basket of metals for the
first four years of production.

                                2009     2010     2011     2012    (34 years)
    basket   US$/oz   nominal   753      888      999      1035
                      real      753      868      950      956      967
    change   ZAR/US$  nominal   9.67     9.42     9.43     9.81
    rate              real      9.67     9.21     9.02     9.17     9.60
    basket   ZAR/kg   nominal   234,238  268,718  302,764  326,336
                      real      234,238  256,901  275,404  281,904  297,371
    SA CPI                      0.0%     4.6%     5.1%     5.3%
    US CPI                      0.0%     2.3%     2.8%     2.9%


    The current South African Income Tax regime for companies applies to
Lebowa and the Discounted Cash Flow ("DCF") model therefore includes the
following tax regime:

    -   Company income tax rate of 28 % on taxable income.
    -   Secondary tax on companies, a tax on dividends declared, of 10 %.
    -   A withholding tax of 10 % for dividends payable to non-residents.

    The South African mining sector enjoys immediate tax relief on capital
expenditure i.e. capital expenditure can be off-set against gross profit in
the year it is incurred (or can be carried forward to create a tax shield)
i.e. capital expenditure is not depreciated or amortised for tax purposes.


    The South Africa Royalty Act, which has been deferred for a year, was
used as a basis for calculating estimated Royalties.
    The DCF uses the third and final draft average rate to calculate
royalties payable to the State, which is based on gross sales less allowable
beneficiation related expenses and transport expenses between the seller and
buyer of the final product. The effective royalty rate over the Lebowa Life of
Mine ("LOM") is 5.6%.

    Financial indicators

    The table below shows the real term financial indicators of the revised
plan over the expected first 34 years of the LOM at Lebowa.

                          Units          Total        Units          Total
    Material Treated   Tonnes         92,740,000   Tonnes         92,740,000
     (4E head grade)   4E g/t         5.06         4E g/t               5.06
    PGM produced       4E oz          13,684,167   4E oz          13,684,167
    Revenue            ZAR millions   126,749      CAD millions       17,507
    Gross revenue      ZAR millions   134,226      CAD millions       18,540
    Royalties          ZAR millions   -7,477       CAD millions       -1,033
    Operating cost     ZAR millions   64,067       CAD millions        8,849
     operating cost    ZAR/t          703.34       CAD/t               97.15
    Gross profit       ZAR millions   62,682       CAD millions        8,658
    Capital Cost
     (CAPEX)           ZAR millions   12,468       CAD millions        1,722
    Real term tax      ZAR millions   14,937       CAD millions        2,063
     tax rate          %              22.00        %                   22.00
    Working CAPEX      ZAR millions   1,303        CAD millions          180
    Net profit (after
     working CAPEX)    ZAR millions   33,974       CAD millions        4,693
    Margin             %              24.70        %                   24.70

     Certain additional mineral resources, that had been the subject of
     prefeasibility-level studies and hence could be considered mineral
     reserves but not included in "approved mine plans" by Anglo Platinum,
     have been used for the economic analysis. This includes 25.7 million
     tonnes at an average 4E grade of 5.39 g/t from the Brakfontein UG2

    Cashflow & NPV

    Based on the assumptions stipulated above, the DCF analysis at Lebowa for
the first 34 years of mine plan, yields Net Present Values ("NPV") at
different discount rates as follows:

                     Discount Rate         ZAR millions
                          5.0%                14,001
                          7.5%                 9,290
                         10.0%                 6,440

    DCF sensitivity analysis

    Sensitivities have been calculated in the DCF model for revenue,
operating costs and working costs.
    The valuation is most sensitive to a change in revenue. A 10.0% decrease
in revenue results in a 28% decrease in value in the case of NPV at a discount
rate of 7.5%.
    The valuation is not particularly sensitive to capital expenditure. An
increase in capital of 10 % decreases the value by just 4.0% in the case of
NPV at a discount rate of 7.5%.
    The valuation is sensitive to a variance in operating costs. An increase
of 10.0 % decreases the NPV by 14.1% in the case of NPV at a discount rate of
    A series of sensitivities for various changes in combined operating costs
and revenue, have been calculated for a NPV at a discount rate of 7.5% and are
included in the table below.

                                             NPV7.5 (ZARm)
                                    LOM Real Average Basket Price
                                            ZAR 297,371 kg

                           -20%     -15%     -10%      -5%       0%       5%
                 -20%     6,710    8,008    9,299   10,598   11,908   13,215
                 -15%     6,056    7,355    8,652    9,942   11,240   12,550
    LOM Real     -10%     5,399    6,702    8,000    9,294   10,584   11,882
    Average       -5%     4,740    6,047    7,347    8,645    9,937   11,227
    Operating      0%     4,076    5,388    6,694    7,992    9,290   10,579
    Cost           5%     3,399    4,728    6,036    7,339    8,637    9,935
    ZAR 690.83    10%     2,714    4,058    5,376    6,684    7,984    9,282
    per tone      15%     2,012    3,381    4,715    6,024    7,331    8,629
                  20%     1,288    2,694    4,040    5,365    6,672    7,976

                               NPV7.5 (ZARm)
                       LOM Real Average Basket Price
                              ZAR 297,371 kg

                            10%      15%      20%
                 -20%    14,523   15,837   17,154
                 -15%    13,857   15,164   16,478
    LOM Real     -10%    13,192   14,498   15,805
    Average       -5%    12,525   13,833   15,139
    Operating      0%    11,869   13,167   14,474
    Cost           5%    11,221   12,512   13,809
    ZAR 690.83    10%    10,577   11,863   13,154
    per tonne     15%     9,927   11,220   12,505
                  20%     9,274   10,573   11,862

    Anooraq's President and CEO Philip Kotze commented:

    "This technical review confirms Anooraq's view of the high quality of the
Lebowa ore body, together with its potential for effective depletion through a
phased approach to operations. Management will be required to adopt a focused
and determined effort to ensure delivery of optimum production based on the
revised plan from the updated technical review. Anooraq now looks forward to
moving ahead with the final steps for completion of the Lebowa transaction,
which will transform Anooraq into a PGM producer with significant growth

    On behalf of the Board of Directors
    Philip Kotze
    President and CEO

    The TSX Venture Exchange does not accept responsibility for the adequacy
                         or accuracy of this release.

    NYSE Amex has neither approved nor disapproved the contents of this press

                 Cautionary and Forward Looking Information
    This release includes certain statements that may be deemed "forward
looking statements". All statements in this release, other than statements of
historical facts, that address, future production, reserve potential,
exploration drilling, exploitation activities and events or developments that
Anooraq expects are forward looking statements. Anooraq believes that such
forward looking statements are based on reasonable assumptions, including the
assumptions that: the Lebowa acquisition will complete; Lebowa will continue
to have production levels similar to previous years; the planned Lebowa
expansions will be completed and successful; Anooraq will be able to obtain
future debt and equity financing on favourable terms. Forward-looking
statements, however, are not guarantees of future performance and actual
results or developments may differ materially from those in forward looking
statements. Factors that could cause actual results to differ materially from
those in forward looking statements include market prices, exploitation and
exploration successes, changes in and the effect of government policies with
respect to mining and natural resource exploration and exploitation and
continued availability of capital and financing, and general economic, market
or business conditions. Investors are cautioned that any such statements are
not guarantees of future performance and those actual results or developments
may differ materially from those projected in the forward looking statements.
For further information on Anooraq, investors should review the Company's
annual Form on 20-F with the United States Securities and Exchange Commission
and its home jurisdiction filings that are available at
    The following are the principal risk factors and uncertainties which, in
management's opinion, are likely to most directly affect the conclusions of
the study. Some of the mineralized material at the classified as a measured
and indicated resource has been used in the cash flow analysis. For US mining
standards, a full feasibility study would be required, which would require
more detailed studies. Additionally all necessary mining permits would be
required in order to classify the project's mineralized material as an
economically exploitable reserve. There can be no assurance that this
mineralized material will become classifiable as a reserve and there is no
assurance as to the amount, if any, that might ultimately qualify as a reserve
or what the grade of such reserve amounts would be. Data is not complete and
cost estimates have been developed, in part, based on the expertise of the
individuals participating in the preparation of the study and on costs at
projects believed to be comparable, and not based on firm price quotes. Costs,
including design, procurement, construction and on-going operating costs and
metal recoveries could be materially different from those contained in the
study. There can be no assurance that mining can be conducted at the rates and
grades assumed in the study. There can be no assurance that these
infrastructure facilities can be developed on a timely and cost-effective
basis. Energy risks include the potential for significant increases in the
cost of fuel and electricity, and fluctuation in the availability of
electricity. Projected metal prices have been used for the study. The prices
of these metals are historically volatile, and the Company has no control of
or influence on the prices, which are determined in international markets.
There can be no assurance that the prices of platinum, palladium, rhodium,
gold, copper and nickel will continue at current levels or that they will not
decline below the prices assumed in the pre-feasibility study. Prices for
these commodities have been below the price ranges assumed in study at times
during the past ten years, and for extended periods of time. The project will
require major financing, probably a combination of debt and equity financing.
Interest rates are at historically low levels. There can be no assurance that
debt and/or equity financing will be available on acceptable terms. A
significant increase in costs of capital could materially adversely affect the
value and feasibility of constructing the expansions. Other general risks
include those ordinary to large construction projects, including the general
uncertainties inherent in engineering and construction cost, the need to
comply with generally increasing environmental obligations, and accommodation
of local and community concerns. The economics are sensitive to the currency
exchange rates, which have been subject to large fluctuations in the last
several years.

    Information Concerning Estimates of Measured, Indicated and Inferred
    This news release also uses the terms "measured resources", "indicated
resources" and ""inferred resources". Anglo Platinum and Anooraq advise
investors that although these terms are recognized and required by Canadian
regulations (under National Instrument 43-101 Standards of Disclosure for
Mineral Projects), the U.S. Securities and Exchange Commission does not
recognize them. Investors are cautioned not to assume that any part or all of
the mineral deposits in these categories will ever be converted into reserves.
In addition, "inferred resources" have a greater amount of uncertainty as to
their existence, and economic and legal feasibility. It cannot be assumed that
all or any part of an Inferred Mineral Resource will ever be upgraded to a
higher category. Under Canadian rules, estimates of Inferred Mineral Resources
may not form the basis of feasibility or pre-feasibility studies, or economic
studies except for a Preliminary Assessment as defined under National
Instrument 43-101. Investors are cautioned not to assume that part or all of
an inferred resource exists, or is economically or legally mineable.

For further information:

For further information: Anooraq (South Africa), +27 11 779 6800, Philip
Kotze, CEO, Joel Kesler, Corporate & Business Development; Anooraq (North
America), Investor Relations, (604) 684-6365, Toll free 1-800-667-2114

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