VIL - Village Main Reef Limited - Production disruption at Consolidated

VIL - Village Main Reef Limited - Production disruption at Consolidated         
Murchison Mine ("Cons Murch")                                                   
Village Main Reef Limited                                                       
(formerly known as Village Main Reef Gold Mining Company (1934) Limited)        
(Registration number 1934/0057034/06)                                           
Share Code: VIL                                                                 
ISIN: ZAE000154761                                                              
("Village")                                                                     
PRODUCTION DISRUPTION AT CONSOLIDATED MURCHISON MINE ("Cons Murch")             
Village has started a process to dismiss employees, who are members of          
the National Union of Mineworkers ("NUM"), that have been participating         
in unprotected strike action in the form of a go-slow campaign at its           
Cons Murch mine in Limpopo. The go-slow action over the last two weeks          
has negatively impacted production from the underground operations at           
Cons Murch with daily production achieved at around a third of normal           
production levels. The dispute arose in relation to certain historic            
overtime payments claimed by the employees resulting from their                 
employment at Cons Murch, pre Village ownership and involvement.                
In an attempt to normalise the labour situation and to avoid drastic            
action, a further and final ultimatum was issued to our employees to            
normalise production levels by Wednesday 21st September 2011. It is             
anticipated that there will be no production from Cons Murch for at least       
a two week period and that antimony and gold production for the December        
2011 quarter could be some 500tons and 25kg respectively, lower than that       
forecast for the September quarter. The lower production will not               
significantly impact on the forecast production for the September               
quarter. Although the lower production will have a materially negative          
impact on the Cons Murch results for the December quarter, it will not          
materially impact the results of Village for the December quarter.              
22 September 2011                                                               
Sponsor                                                                         
Java Capital                                                                    
Date: 22/09/2011 07:54:01 Supplied by www.sharenet.co.za                     
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