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The sale of Petmin’s 100% interest in Baobab to GVM

14 December 2006

With reference to an announcement by GVM Metals Limited ("GVM") Petmin is pleased to advise that an agreement has been reached with GVM to acquire 100% of the issued share capital of Baobab Mining & Exploration (Proprietary) Limited("Boabab"), a subsidiary company of Petmin. Baobab was acquired as part of the acquisition of Springlake Holdings, previously announced on 01 December 2005. This disposal is in line with Petmin’s strategy of focussing on cash or near cash producing assets.

Baobab has an effective 50% interest in the Baobab Joint Venture. The Baobab Joint Venture holds greenfield’s exploration tenements over soft coking and steam coal deposits located near Musina in Limpopo Province. Petmin did not attribute any value to Baobab on acquisition. The purchase consideration is GBP2,5 million (approximately ZAR 35 million)and will, subject to the fulfilment of the conditions precedent referred to below, be settled in cash.

Conditions precedent At the date of this announcement, the remaining conditions precedent are as follows:

• the obtaining of the requisite approvals at a general meeting of shareholders of GVM to be convened and to be held on or before 31 March 2007 for the Acquisition;
• the requisite approvals of the South African Reserve Bank as are applicable; and
• the necessary approvals in terms of section 11 of the Mineral and Petroleum Resources Development ("MPRD") Bill of South Africa by 30 April 2007.

Sponsor
River Group