Proposed Firm Placing -2-

Apart from the responsibilities and liabilities, if any, which may be imposed on Panmure Gordon by the Financial Services and Markets Act 2000, Panmure Gordon does not accept any responsibility whatsoever for the contents of this Announcement, and makes no representation or warranty, express or implied, for the contents of this Announcement, including its accuracy, completeness or verification, or for any other statement made or purported to be made by it, or on its behalf, in connection with Lonrho or the New Ordinary Shares or the Capital Raising, and nothing in this Announcement is or shall be relied upon as, a promise or representation in this respect whether as to the past or future. Panmure Gordon accordingly disclaims to the fullest extent permitted by law all and any liability whether arising in tort, contract or otherwise (save as referred to above) which it might otherwise have in respect of this Announcement or any such statement.

No statement in this Announcement is intended to be a profit forecast and no statement in this Announcement should be interpreted to mean that earnings per share of Lonrho for the current or future financial years would necessarily match or exceed the historical published earnings per share of Lonrho.

This Announcement includes statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements can be identified by the use of forward-looking terminology, including the terms such as "anticipates", "believes", "estimates", "expects", "intends", "may", "plans", "projects", "should" or "will", or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. These forward-looking statements include all matters that are not historical facts. They appear in a number of places throughout this Announcement and include, but are not limited to, statements regarding the intentions, beliefs or current expectations of the Group or any of its Directors, concerning, amongst other things, the Group's results of operations, financial position, prospects, growth, strategies and expectations for the markets within which the Group operates.

Any forward-looking statements in this document reflect Lonrho's current view with respect to future events and are subject to risks relating to future events and other risks, uncertainties and assumptions relating to the Group's operations, results of operations and growth strategy. Forward-looking statements are not guarantees of future performance. Investors should specifically consider the factors identified in this Announcement, and in the Prospectus, which could cause actual results to differ before making an investment decision. Subject to the requirements of the Prospectus Rules, the Disclosure and Transparency Rules and the Listing Rules, none of Lonrho, the Directors or Panmure Gordon undertakes any obligation publicly to release the result of any revisions to any forward-looking statements in this Announcement, or the Prospectus, that may occur due to any change in Lonrho's expectations or to reflect events or circumstances after the date of this Announcement. A number of factors could cause results and developments of the Group to differ materially from those expressed or implied by the forward-looking statements including, without limitation, general economic and business conditions, industry trends, competition, changes in regulation, currency fluctuations, changes in business strategy, political and economic uncertainty and other factors discussed in the section of the Prospectus headed "Risk Factors".

The forward looking statements contained in this document speak only as of the date of this Announcement. Other than in accordance with their legal or regulatory obligations (including under the Listing Rules and/or the Prospectus Rules and/or the Disclosure and Transparency Rules) and as required by the FSA, the London Stock Exchange or the City Code, neither of the Company or Panmure Gordon undertakes any obligation to update or revise publicly any forward looking statement, whether as a result of new information, future events or otherwise. All subsequent written and oral forward looking statements attributable to the Group or individuals acting on behalf of the Group are expressly qualified in their entirety by this paragraph. Prospective investors should specifically consider the risk factors set out in the Prospectus which could cause actual results to differ before making an investment decision.

This document should not be considered a recommendation by the Company, Panmure Gordon or any of their respective directors, officers, employees, advisers or any of their respective affiliates, parent undertakings, subsidiary undertakings or subsidiaries of their parent undertakings in relation to any purchase of or subscription for the New Ordinary Shares. Price and volumes of, and income from, securities may go down as well as up and an investor may not get back the amount invested. It should be noted that past performance is no guide to future performance. You are advised to read this document and, once available, the Prospectus and the information incorporated by reference therein, in their entirety for a further discussion of the factors that could affect the Group's future performance and the industry in which it operates. Persons needing advice should consult an independent financial adviser.

THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED IN IT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES, Australia, Canada, Japan AND THE REPUBLIC OF South Africa and SHOULD NOT BE DISTRIBUTED IN, FORWARDED TO OR TRANSMITTED INTO ANY JURISDICTION WHERE TO DO SO MIGHT CONSTITUTE A VIOLATION OF LOCAL APPLICABLE SECURITIES LAWS OR REGULATIONS.

This Announcement is an advertisement. It is not a prospectus. Investors should not subscribe for or purchase any shares referred to in this Announcement except SOLELY on the basis of information in the prospectus to be published by LONRHO plc in connection with the proposed Capital Raising. Copies of the prospectus will, following publication, be available from the company's registered office and, OTHER THAN IN respect of CERTAIN JURISDICTIONS, on its CORPORATE website at www.LONRHO.coM.

THE SECURITIES MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES UNLESS REGISTERED UNDER THE US SECURITIES ACT OR PURSUANT TO AN EXEMPTION FROM SUCH REGISTRATION. NO PUBLIC OFFERING OF THE SECURITIES DISCUSSED HEREIN IS BEING MADE IN THE UNITED STATES. THE INFORMATION CONTAINED HEREIN DOES NOT CONSTITUTE AN OFFERING OF SECURITIES FOR SALE IN THE UNITED STATES AND THE COMPANY DOES NOT CURRENTLY INTEND TO REGISTER ANY SECURITIES UNDER THE US SECURITIES ACT.

13 December 2011

Lonrho Plc

Proposed Firm Placing and Placing and Open Offer to raise approximately GBP26.9million gross proceeds

1. Introduction

The Board of Directors of Lonrho has today announced that it is proposing to raise approximately GBP25.4 million, net of expenses, through the issue of 269,498,795 New Ordinary Shares at an issue price of 10 pence per New Ordinary Share, a discount of zero per cent. to the Closing Price on 12 December 2011. 161,280,925 New Ordinary Shares will be issued through the Firm Placing and 108,217,870 New Ordinary Shares will be issued through the Placing and Open Offer.

2. Background to and reasons for the Capital Raising

The Group's strategy is to continue to grow the business by concentrating on each of its five strategic business divisions whilst diversifying risk through presence in a number of African countries and industries. The Board believes that the geographical spread of Lonrho's operations across 18 countries in Sub-Saharan Africa significantly reduces political risk as compared to businesses operating in a single country. To date the Group has put in place a solid foundation for each of its business divisions. The Board believes future growth on these foundations will be generated through the development and expansion of existing businesses together with the acquisition of new businesses synergistic to existing operations. Strategically, the Directors believe that new growth opportunities currently exist in each of its business divisions for further expansion of their operations both organically and through appropriate acquisitions to meet the increasing demand for the Group's services. As such, the Directors believe that access to additional capital will enable the Group to fund targeted synergistic acquisitions and to provide the working capital required to exploit new and incremental growth opportunities within the Group's divisions, helping to deliver on the Group's growth strategy.

3. Use of proceeds

Following the completion of the Capital Raising the net proceeds will be held by the Company in cash or cash equivalents and then used in line with the Group's strategy to fund the development of new business opportunities for the Group to complement its current operations. Although the Company currently has no specific identified use for the GBP25.4 million estimated net proceeds of the Capital Raising, these new business opportunities are expected to be realised via acquisitions of businesses or companies or via the development of new and incremental opportunities in the existing businesses. The Group often has to react rapidly to evaluate, agree appropriate terms and identify funding so that it can secure suitable opportunities. The availability of the net proceeds of the Capital Raising will assist in achieving this objective.

4. Key terms and conditions of the Capital Raising

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