Trans Hex Group - Trans Hex diamond deal enhances Mvela

Share code: TSX
ISIN: ZAE000018552
Trans Hex diamond deal enhances Mvela

Mvela  Resources takes a further 16% stake in Trans Hex for R152  m.   Total
empowerment stake approaches 25%

Empowerment representation on the JSE was further enhanced today  after  the
completion  of  an  innovative  transaction in which  Mvelaphanda  Resources
increased  its  holding  in JSE-listed Trans Hex Group  by  a  further  16%,
bringing the empowerment group's stake in the niche diamond miner to 19,4%.
In an unrelated transaction, Mvela Resources has the option to increase this
holding  to  24,5% with the purchase of a further 5 million ordinary  shares
from Remgro Limited.

Mvela Resources is the new name proposed for East Daggafontein Mines Limited
following  its  merger  with  the diamond and platinum  interests  of  Tokyo
Sexwale's  Mvela Holdings.  In terms of that deal, finalised on  5  February
2002,  the  black  empowerment  mining  consortium  spearheaded  by  Sexwale
acquired a 70% interest in East Dagga.

Sexwale  said:   "This  deal entrenches Mvela's involvement  in  the  mining
sector which is good news for our broad shareholder base.  The future growth
of  South  Africa's mining industry hinges on the involvement of  meaningful
empowerment  groups  and Mvela is a leader in this regard.  The  transaction
could  not  have  happened without the goodwill of  all  parties,  including
Remgro, Trans Hex's controlling shareholder, and their sincere commitment to
empowerment  in the mining industry." Sexwale further indicated  that  Trans
Hex  will  be one of the key focuses of Mvela Resources' energies  over  the
next few years.

Rand Merchant Bank structured and financed a portion of the transaction, the
proceeds  of  R152  million  will be used  by  Trans  Hex  to  fund  capital
expenditure requirements.

Trans  Hex  chairman Bernard van Rooyen said : "Mvela has  added  tremendous
value  to  Trans Hex since their involvement less than two years  ago.   The
acquisition  of  Benguela Concessions and the merger with Gem  Diamonds  has
added  significantly to our resource base.  In fact, the Middle Orange River
operation  at  Saxendrift, a Gem Diamonds property,  was  the  site  of  the
largest diamond ever recovered by Trans Hex; a 216-carat gem."

Rand  Merchant Bank CEO Michael Pfaff said: "RMB Resources are proud to have
been  associated with this transaction and continue to explore other related
investment opportunities for Mvela Resources."

Trans  Hex  has  established a global reputation for producing  sought-after
high  quality diamonds at the upper end of the price spectrum.  The  Company
presently  has  land operations along the southern banks of the  Middle  and
Lower Orange River, in the shallow-water concessions along the South African
West Coast and in deep-water activities off the Namibian Coast.
Ends.
28 February 2002
Contacts
George Zacharias. Tel (021) 937 2000
Trans Hex Group Limited
Mark Willcox. Tel (011) 327 5430
Mvela Resources
Justin Pitt. Tel (011) 282 8218
Rand Merchant Bank