Mvela Group - Lapse of the agreement relating to the proposed disposal

Mvela Group - Lapse of the agreement relating to the proposed disposal          
MVELAPHANDA GROUP LIMITED                                                       
(Incorporated in the Republic of South Africa)                                  
(Registration number 1995/004153/06)                                            
Ordinary share code: MVG                                                        
Preference share code: MVGP                                                     
Ordinary share ISIN: ZAE000060737                                               
Preference share ISIN: ZAE000073540                                             
("Mvela Group")                                                                 
Lapse of the agreement relating to the proposed disposal ("the proposed         
disposal") of Mvela Group"s 22,9% interest in Mvelaphanda Resources             
Limited ("Mvela Resources") to Incwala Resources (Proprietary) Limited          
("Incwala")                                                                     
Shareholders are referred to:                                                   
*  the announcement dated 22 December 2005 relating to                          
the proposed disposal by Mvela Group, in terms of a                          
   written agreement ("the Incwala disposal agreement")                         
   concluded between Mvela Group and Incwala, of the 38                         
   147 209 ordinary shares in Mvela Resources held by                           
Mvela Group, representing 22,9% of the issued share                          
   capital of Mvela Resources, and;                                             
*  the interim results for Mvela Group for the six months                       
   ended 31 December 2005 which were released on SENS on                        
7 March 2006, in which it was noted that the proposed                        
   disposal remained subject to the fulfilment of certain                       
   material suspensive conditions by 31 March 2006, which                       
   suspensive conditions remained unfulfilled at that                           
date.                                                                        
Shareholders are advised that certain of the suspensive conditions which        
were, in terms of the Incwala disposal agreement, required to be                
fulfilled by 31 March 2006, have not been timeously fulfilled.                  
Accordingly, the Incwala disposal agreement has lapsed and is of no             
further force or effect, and the proposed disposal will not be                  
implemented.                                                                    
Sandton                                                                         
3 April 2006                                                                    
Sponsor to Mvela Group                                                          
Deutsche Securities (SA) (Pty) Ltd                                              
Attorneys                                                                       
Werksmans                                                                       
Date: 03/04/2006 10:12:06 AM Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department