PETMIN - ANNOUNCEMENT

PETRA MINING LIMITED
(INCORPORATED IN THE REPUBLIC OF SOUTH AFRICA)
(REGISTRATION NUMBER 72/01062/06)
("PETMIN")
ANNOUNCEMENT TO SHAREHOLDERS

1. NIGEL GOLD MINING COMPANY (PROPRIETARY) LIMITED ("NIGEL")
1.1 REFRACTORY GOLD (PROPRIETARY) LIMITED

FURTHER TO THE CAUTIONARY ANNOUNCEMENT PUBLISHED 1 SEPTEMBER 1998 SHAREHOLDERS
ARE ADVISED THAT NIGEL, A WHOLLY OWNED SUBSIDIARY OF PETMIN, HAS WITH EFFECT
FROM 1 OCTOBER 1998 ("EFFECTIVE DATE"), PURCHASED THE REDUCTION AND GOLD
EXTRACTION BUSINESS COMPRISING CIRCUITS NUMBERS 1 AND 2 ("BUSINESS") FROM
REFRACTORY GOLD (PROPRIETARY) LIMITED ("REFGOLD"), (REGISTRATION NUMBER:
94/04147/07).
PURCHASE CONSIDERATION

THE NET PURCHASE CONSIDERATION PAYABLE TO REFGOLD FOR THE BUSINESS IS THE SUM
OF R16 150 000.00 (SIXTEEN MILLION ONE HUNDRED AND FIFTY THOUSAND RAND) PLUS
THE COST PRICE OF THE STOCK AS AT THE EFFECTIVE DATE. THE PURCHASE
CONSIDERATION IS PAYABLE IN CASH TO REFGOLD.
RATIONALE FOR THE PURCHASE

THE PURCHASE OF THE REDUCTION AND GOLD EXTRACTION BUSINESS GIVES NIGEL THE
OPPORTUNITY TO TREAT ITS OWN GOLD PRODUCTION AND TO FORWARD SELL A PORTION OF
ITS FUTURE PRODUCTION THEREBY ACHIEVING A STABLE GOLD PRICE. A FORWARD PRICING
COMMITMENT HAS BEEN NEGOTIATED AND CONCLUDED. THE DIRECTORS OF PETMIN ARE
CONFIDENT THAT WITH A STABLE GOLD PRICE AND THE DEVELOPMENT OF THE MINERAL
RESOURCES, NIGEL CAN CONTRIBUTE SUBSTANTIAL PROFITS.
SUSPENSIVE CONDITIONS

ALL SUSPENSIVE CONDITIONS IN THE PURCHASE AGREEMENT HAVE BEEN FULFILLED.
1.2 VOGELSTRUISBULT METAL HOLDINGS LIMITED

NIGEL BOUGHT CERTAIN MINING TITLES AND SURFACE RIGHT PERMITS FROM

VOGELSTRUISBULT METAL HOLDINGS LIMITED ON 1 SEPTEMBER 1998. THE PURCHASE PRICE
OF R550 000 WAS PAID IN CASH.
2. OVER ACHIEVEMENT OF PROFIT WARRANTIES

FURTHER TO THE PRESS ANNOUNCEMENT ON 24 OCTOBER 1997, THE CIRCULAR DATED 8
DECEMBER 1997 AND PETMIN'S 1998 ANNUAL REPORT THE DIRECTORS OF PETMIN WISH TO
ANNOUNCE THAT THE PROFIT WARRANTIES GIVEN IN TERMS OF THE DISPOSALS BY PETREX
(PROPRIETARY) LIMITED ("PETREX"), (A WHOLLY OWNED SUBSIDIARY OF PETMIN), OF JIC
MINING AND CONSTRUCTION (PROPRIETARY) LIMITED AND PETRA BLACK GRANITE

(PROPRIETARY) LIMITED TO MOLOPE GROUP LIMITED ("MOLOPE") HAVE BEEN EXCEEDED. AS
A RESULT PETREX WILL RECEIVE AN ADDITIONAL 13 216 144 MOLOPE "N" ORDINARY
SHARES AS CONSIDERATION FOR THE EXCEEDED PROFITS IN TERMS OF THE DISPOSAL
AGREEMENTS.
3. FINANCIAL EFFECTS OF TRANSACTIONS
3.1 NET ASSET VALUE

THE NET ASSET VALUE OF THE COMPANY INCREASES BY 56,7% FROM 426 CENTS TO 667
CENTS PER SHARE AS A RESULT OF THE ABOVEMENTIONED TRANSACTIONS.
3.2 EARNINGS PER SHARE

THE ABOVEMENTIONED TRANSACTIONS HAVE NO MATERIAL EFFECT ON EARNINGS PER SHARE.
4. CANCELLATION OF CAUTIONARY ANNOUNCEMENT

SHAREHOLDERS ARE ADVISED THAT CAUTION IS NO LONGER REQUIRED WHEN DEALING IN
PETMIN'S SHARES ON THE JOHANNESBURG STOCK EXCHANGE.
PRETORIA
8 SEPTEMBER 1998
REGISTERED OFFICE:
5TH FLOOR, GUARANTEE HOUSE
28 VISAGIE STREET
PRETORIA, 0002