Anpario Regulatory News (ANP)

3 Nov 2006 14:00

Anglo Platinum Limited03 November 2006 ANOORAQ-ANGLO PLATINUM: GA-PHASHA PGM PROJECT UPDATE November 3, 2006 - Anglo Platinum Limited ("Anglo Platinum") and AnooraqResources Corporation ("Anooraq") ("the Parties") announce an update on theGa-Phasha Platinum Group Metals ("PGM") Project ("Ga-Phasha"). The programme review announced on 26 April 2006 ("the Review") was completedduring October 2006. An increased number of approaches were considered tooptimize mining of the deposits at Ga-Phasha. As a result of the findings, theParties have now agreed to continue with studies to advance the project and haveappointed an independent project manager to conduct a Pre-Feasibility Study("PFS") on Ga-Phasha. A detailed timetable of further studies as well as aproject timetable toward a Bankable Feasibility Study will be released after thePFS, which is scheduled for completion by the end of the first quarter of 2007. The Review confirmed that the UG2 reef deposit remains the primary focus fordevelopment and the Merensky reef warrants further study through additionaldrilling programmes. Therefore, the Parties have agreed that the PFS willconsist of a Phase 1 study to exploit the UG2 reef to a depth of some 650 metersbelow surface, and will also seek to identify a single preferred option by whichto proceed to the bankable feasibility phase. The PFS will also contemplateoptimising economies of scale between the Parties' operations on the NorthernEastern Limb of the Bushveld Complex, and in that regard, will evaluate thepossible usage of joint infrastructure and processing facilities between AngloPlatinum's Twickenham Platinum Mine and Ga-Phasha. Read, Swatman & Voigt (Pty) Ltd ("RSV") has been appointed as the independentproject manager to conduct the PFS. RSV is a highly reputable South Africanengineering and project management company that serves the mining,metallurgical, and industrial sectors in South Africa and the rest of the world.With a staff complement of 300 people from the mining, engineering, projectmanagement and administration discipline RSV has conducted assessments ofnumerous PGM Projects on the Western and Eastern Limbs of the Bushveld IgneousComplex in South Africa. Some of its key projects include the Lonmin Platinum K4Shaft Project, the Impala Platinum 16 Shaft project and the Anglo PlatinumRustenburg Platinum Mine UG2 expansion. Also announced on 26 April 2006 was Anglo Platinum's agreement in principle toundertake a US$10 million funding into Anooraq. The Parties announce that thefinancing has been concluded. Pursuant to the current agreement, Anglo Platinum,through its wholly owned subsidiary Rustenburg Platinum Mines, will loan anamount of R70 million to Plateau Resources (Pty) Ltd ("Plateau"), a wholly ownedSouth African subsidiary of Anooraq. Plateau will utilise the majority of thefunding to advance the Ga-Phasha project to bankable feasibility study, as partof Anooraq's objective of becoming a substantial PGM production company.Pursuant to security agreements entered into in connection with the loan,Plateau has ceded as security, its interest in Micawber 277 (Pty) Ltd(Micawber). Micawber, a South African company equally owned by RustenburgPlatinum Mine and Plateau Resources, owns the Parties' interests in theGa-Phasha PGM Project. The final repayment date for the loan will be 30 September 2010, however theagreement does allow for early repayment thereof. The first interest paymentwill become due and payable fourteen months after the date of the advancement ofthe funds, with other subsequent interest payments due and payable in 6-monthintervals thereafter. In commenting on the update:- Tumelo Motsisi, Deputy CEO and Managing Director of Anooraq, said:- "The conclusion of the funding arrangement with Anglo Platinum and theappointment of RSV as the independent project manager tasked with moving theGa-Phasha PGM Project forward through to finalization of the pre-feasibility areimportant milestones. It demonstrates that the parties of this joint venture arecommitted to advancing this project toward the bankable feasibility stage." ISSUED BY: ANGLO PLATINUM AND ANOORAQ For further information please contact Trevor Raymond at Anglo Platinum Phumzile Langeni at Anooraq Resources+2711 373 6462 +2711 883 0831+2782 6548467 +2783 745 5834 ISSUED ON BEHALF OF THE BOARD OF DIRECTORS OF ANOORAQ BY Tumelo MotsisiManaging Director and Deputy CEOAnooraq Resources Corporation Note regarding the Ga-Phasha Project: The Ga-Phasha Project, a 50:50 joint venture between Anglo Platinum and Anooraq,is located on the North Eastern Limb of the Bushveld Complex, 250 kilometresnortheast of Johannesburg in South Africa. Note regarding Anooraq: The TSX Venture Exchange and the American Stock Exchange have neither approvednor disapproved the contents of this press release. This release includes certain statements that may be deemed "forward-lookingstatements". All statements in this release, other than statements of historicalfacts, that address future production, reserve potential, exploration drilling,exploitation activities and events or developments that Anooraq ("the Company")expects are forward-looking statements. Although the Company believes theexpectations expressed in such forward-looking statements are based onreasonable assumptions, such statements are not guarantees of future performanceand actual results or developments may differ materially from those in theforward-looking statements. Factors that could cause actual results to differmaterially from those in forward-looking statements include market prices,exploitation and exploration successes, changes in and the effect of governmentpolicies with respect to mining and natural resource exploration andexploitation and continued availability of capital and financing, and generaleconomic, market or business conditions. Investors are cautioned that any suchstatements are not guarantees of future performance and those actual results ordevelopments may differ materially from those projected in the forward-lookingstatements. For more information on the Company, Investors should review theCompany's annual Form 20-F filing with the United States Securities and ExchangeCommission and its home jurisdiction filings that are available at www.sedar.com. This information is provided by RNS The company news service from the London Stock Exchange