Mvela Group - Disposal Of The Business Of Jic Mining Services (2000)

Mvela Group - Disposal Of The Business Of Jic Mining Services (2000)            
              (Proprietary) Limited                                             
Mvelaphanda Group Limited                                                       
(Formerly Rebserve Holdings Limited)                                            
(Incorporated in the Republic of South Africa)                                  
(Registration number 1995/004153/06)                                            
Share code: MVG                                                                 
ISIN: ZAE000060737                                                              
("Mvela Group" or "the company")                                                
PRESS ANNOUNCEMENT                                                              
DISPOSAL OF THE BUSINESS OF JIC MINING SERVICES (2000) (PROPRIETARY) LIMITED    
Mvela Group announces that its wholly-owned subsidiary, JIC Mining Services     
(2000) (Proprietary) Limited ("JIC"), has concluded an agreement to dispose of  
the business of JIC ("the JIC business") to a consortium comprising certain     
members of the senior management of JIC and a trust ("the BEE trust") to be     
formed, the beneficiaries of which BEE trust will be the previously             
disadvantaged employees of JIC ("the JIC disposal"). The BEE trust will own a   
minimum 25% effective interest in the JIC business. The JIC disposal remains    
subject to the fulfillment of certain suspensive conditions, primarily the      
granting of Competition Authorities approval.                                   
At the time of announcing its interim results for the six months ended 31       
December 2004, Mvela Group indicated that its strategy would entail the         
transformation of the company from a group focused purely on operations, to a   
diversified holding company which includes cash generative operating businesses.
In pursuit of this strategy, Mvela Group will identify ways to realise the      
inherent value of certain of its investments and operations, which might include
disposing of certain of its operating businesses and/or investments, where      
appropriate, over time. In line with this strategy, Mvela Group has also        
recently disposed of its effective interests in Apex Hi Manco Trust and Storage 
Technology Services (Proprietary) Limited, and is at an advanced stage of       
negotiations to dispose of its effective interests in Rewards Company           
(Proprietary) Limited and Arcus Gibb Holdings (Proprietary) Limited.            
Trading conditions in the mining industry over the past few years have          
deteriorated significantly, especially for businesses in the outsourced mining  
services sector, and in an environment of a strong Rand versus US Dollar        
exchange rate, prospects for a recovery in this sector in the foreseeable future
are remote. Mvela Group has a material exposure to quality assets in the mining 
and resources sector through its investment in Mvelaphanda Resources Limited,   
which remains a key strategic investment for Mvela Group. The board of Mvela    
Group believes however that it would be prudent for Mvela Group to reduce its   
exposure to the outsourced mining services sector by disposing of certain of it 
assets in this sector, where such opportunities exist and where the inherent    
value which can be realised from such a disposal is likely to exceed the future 
profit potential of the particular asset and/or increase shareholder value. It  
is considered that the JIC disposal will achieve these objectives.              
While the JIC business will be disposed of as a going concern, JIC will retain  
certain of the assets of the JIC business, primarily the trade receivables, and 
certain of the trade creditors, and will realise these in the ordinary course.  
Mvela Group will continue to provide working capital finance to the JIC business
under its new owners, within agreed parameters.                                 
Sandton                                                                         
24 June 2005                                                                    
Executive Directors: TMG Sexwale (Chairman), MSM Xayiya (Deputy Chairman), SM   
Levenberg (Chief Executive), YZ Cuba, V Mavimbela, PJA Mphafudi, BC Till, MJ    
Willcox                                                                         
Non-Executive Directors: KD Dlamini, BD Hopkins, OA Mabandla, D Moshapalo, JRT  
Moxon, MZ Nxumalo, RM Patel, CD Stein                                           
Registered Office: Hunts End, 36 Wierda Road West, Wierda Valley, Sandton, 2196 
Telephone 27 11 290-4200   Telefax 27 11 783-0027                               
Sponsor:           Deutsche Securities SA (Pty) Ltd                             
Date: 24/06/2005 03:54:00 PM Supplied by www.sharenet.co.za                     
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