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Exx - Exxaro - Exxaro Confirms No Increase In Offer For Territory

Release Date: 23/06/2011 07:30:01      Code(s): EXX
EXX - Exxaro - Exxaro confirms no increase in offer for Territory               
EXXARO RESOURCES LIMITED                                                        
Incorporated in the Republic of South Africa                                    
(Registration Number:  2000/011076/06)                                          
JSE share code:  EXX                                                            
ISIN code:  ZAE000084992                                                        
ADR code:  EXXAY                                                                
("Exxaro")                                                                      
EXXARO CONFIRMS NO INCREASE IN OFFER FOR TERRITORY                              
Exxaro Resources Limited (JSE: EXX, "Exxaro") confirms that the $0.46 per share 
offered under the takeover bid for Territory Resources Limited (ASX:TTY,        
"Territory") by its wholly-owned Australian subsidiary, Exxaro Australia Iron   
Investments Pty Ltd, will not be increased and the offer period will not be     
extended beyond the current closing date of midnight (Australian Western        
Standard Time) on 4 July 2011.                                                  
Exxaro`s Executive General Manager of Business Growth, Ernst Venter, said that  
after carefully considering all options, Exxaro had decided not to increase its 
bid following an on market offer for Territory by Noble Group.                  
"Territory holds assets that have not been able to realise their full potential 
under current debt and ownership arrangements. We felt that the addition of our 
balance sheet, bulk commodity experience and in house iron ore beneficiation    
expertise to the assets would have resulted in a significant uplift in the      
operating value of the assets," said Mr Venter.                                 
"However, Exxaro has a disciplined approach to growth and acquisitions, and the 
company will not bid above what we see as fair value for the assets.            
"Exxaro is focused on further diversifying and will continue to review a number 
of other potential opportunities in both iron ore and Australia," said Mr       
Venter.                                                                         
As the Exxaro offer is still subject to a number of conditions that Exxaro does 
not intend to waive at this stage, it is likely that the Exxaro offer will lapse
on 4 July 2011. Following the lapsing of the Exxaro offer, any acceptances      
lodged in the Exxaro offer, including the acceptances relating to DCM           
DECOmetal`s holding in Territory (pursuant to the pre-bid acceptance agreement  
between the parties), will lapse and those Territory shareholders will then be  
free to deal with their Territory shares as they see fit.                       
Following the Territory Board`s recommendation of the Noble offer, Exxaro has   
formally requested payment from Territory of the agreed break fee of            
approximately $1,56 million, pursuant to the bid implementation agreement       
between the parties.                                                            
-ENDS-                                                                          
For further information contact:                                                
Ernst Venter                                                                    
Executive GM: Business Growth                                                   
Exxaro Resources                                                                
T:+27 12 307 4322 M:+27 83 6091313                                              
Riaan Koppeschaar                                                               
GM: Corporate Finance and Treasury                                              
Exxaro Resources                                                                
T:+ 27 12 307 4145 M :+27 836091047                                             
Australian Media                                                                
Shane Murphy                                                                    
FD                                                                              
T: +61 8 9386 1233 M: +61 420 945 291                                           
shane.murphy@fd.com                                                             
Richard Phillips / Jonathan Farrer                                              
Greenhill Caliburn Pty Ltd                                                      
T: +61 3 9935 6806 / +61 3 9935 6809                                            
Pretoria                                                                        
23 June 2011                                                                    
Sponsor to Exxaro                                                               
Deutsche Securities (SA) (Pty) Limited                                          
Date: 23/06/2011 07:30:01 Supplied by www.sharenet.co.za                     
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