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Tue 18 Jan 2005, 16:27 FURTHER CAUTIONARY ANNOUNCEMENT
MERAFE RESOURCES LIMITED - FURTHER CAUTIONARY ANNOUNCEMENT                      
MERAFE RESOURCES LIMITED                                                        
(formerly South African Chrome and Alloys Limited)                              
(Incorporated in the Republic of South Africa)                                  
(Registration number 1987/003452/06)                                            
(`the Company`)                                                                 
Share Code: MRF                                                                 
ISIN number: ZAE000060000                                                       
FURTHER CAUTIONARY ANNOUNCEMENT                                                 
Further to the cautionary announcements dated 16 November 2004 and 6 December   
2004, shareholders are advised that negotiations are still in progress which, if
successfully concluded, may have a material effect on the price at which the    
Company`s shares trade on the JSE Securities Exchange South Africa. Acordingly, 
shareholders are advised to continue exercising caution when dealing in their   
shares until a further announcement is made.                                    
18 January 2005                                                                 
Johannesburg                                                                    
Sponsor                                                                         
Absa                                                                            
Absa Corporate & Merchant Bank                                                  
Corporate Finance                                                               
ABSA Bank Limited.                                                              
Reg No 1986/004794/06                                                           
Transactional Sponsor                                                           
Investec                                                                        
Corporate Finance                                                               
Investec Bank Limited                                                           
(Registration number 1969/004763/06                                             
Date: 18/01/2005 04:27:58 PM                    
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