Woodbois Regulatory News (WBI)

Obtala Resources Plc ("OBT" or "the Company")

Establishment of the Obtala Resources Employee Share Trust

Obtala Resources Plc (AIM: ORA), the mining, exploration and development company announces that it has executed a trust deed constituting the Obtala Resources Employee Share Trust ("the Trust") with Marlborough Trust Company Limited appointed as trustee ("the Trustee"). The establishment of the Trust enables the Trustee to acquire shares in the Company and to make interests in those shares available for the benefit of current and future employees of the Company and its subsidiaries ("the Group") as part of the Group's employee incentivisation strategy.

On 24 May 2010, the Trustee agreed to purchase by way of subscription 2,250,000 new ordinary shares of 1p each in the Company (representing 1.01% of the Company's enlarged issued share capital) at a market price of 33p per share. Accordingly, application has been made for these new ordinary shares to be admitted to trading on AIM and it is expected that admission will take place on 28 May 2010.

All of these shares will be acquired jointly with a number of employees of the Group ("the Employees") pursuant to certain conditions set out in Joint Ownership Agreements ("JOA's"). Purchase of all of the shares will initially be funded in full by way of a loan contribution from the Company to the Trustee and the Employees will subsequently repay to the Company the purchase cost attributable to their initial interest 1% in the jointly-owned shares ("the Shares") amounting to £7,425. Subject to remaining in employment with the Group for the time period conditions until the Earliest Realisation Dates set out in the JOA's, any future increase in the value of the Shares will accrue to the Employees. The Employees are also, under certain circumstances, able to benefit from an increase in the value of the Shares on a takeover, change of control, scheme of arrangement or a voluntary winding-up of the Company. Where these conditions are not met, the Trustee has an option to acquire the Employee interests in the Shares at a price equal to the original purchase cost paid by the Employee so that none of any increase in the value of the Shares will accrue to the Employee.

Notification of Director's Interest in shares in the Company

The following directors of the Company will acquire an interest in 1,750,000 ordinary shares of 1p each in the Company (representing 0.79% of the Company's enlarged issued share capital) which will be purchased by the Trustee as part of the arrangements set out above. These shares will be acquired jointly by the Trustee and the Directors pursuant to certain conditions set out in a JOA. Purchase of the jointly-owned shares ("the Shares") will initially be funded in full by way of a loan contribution from the Company to the Trustee and the Directors will subsequently repay to the Company the purchase cost attributable to their initial interest 1% interest in the Shares amounting to £5,775.

The Shares in which the Directors will purchase a joint interest together with the Earliest Realisation Date on which they can benefit from an increase in the value relating to each Shares Tranche is set out below:

In addition Michael Bretherton has a direct interest in 300,000 ordinary shares of 1p each in the Company representing 0.14% of the enlarged issued share capital of the Company and Simon Rollason has a direct interest in 160,000 ordinary shares of 1p each in the Company representing 0.07% of the enlarged issued share capital of the Company.

On 24 May 2010, Simon Rollason entered in to a Deed of Cancellation of Option in respect of options over 500,000 ordinary shares in the Company granted to him on 24 October 2008 but he continues to hold options over another 500,000 ordinary shares also granted to him on 24 October 2008 and which have an exercise price of 37.6p each. Nicholas Clarke also holds options over 150,000 ordinary shares in the Company granted to him on 24 October 2008 and which have an exercise price of 37.6p each.

The Company's Executive Chairman, Francesco Scolaro, does not have any interests in jointly-owned shares to be purchased by the Trust and holds no options over ordinary shares in the Company. Both Michael Bretherton and Lord St John, likewise hold no options over ordinary shares in the Company.  

Following this subscription for new ordinary shares by the Trustee, the enlarged total issued share capital of the Company will increase to 222,153,252 ordinary shares.

27 May 2010

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