Trans Hex acts to resolve joint-venture dispute

Trans Hex acts to resolve joint-venture dispute                                 
Trans Hex Group Limited                                                         
News release                                                                    
termination 1 of 1                                                              
Trans Hex acts to resolve joint-venture dispute                                 
Following an on-going unresolved material dispute with its joint-venture        
partner, Trans Hex has withdrawn the services of its deep-water mining vessel,  
the Mv Namakwa, from the Marshall Fork area off the Namibian coast.             
The joint venture with Canadian-based Diamond Fields International (DFI) had    
been operational since May 2001, commencing five months ahead of schedule and   
recovering almost 27 000 carats in the first eleven months of operations.       
According to Andr Louw, Trans Hex`s executive director in charge of marine     
operations, the dispute arose from differences in the interpretation of certain 
aspects of the joint-venture agreement relating to mining recovery rates in the 
joint-venture area.                                                             
"Geological and mining conditions experienced in the joint-venture areas proved 
to be more difficult than DFI`s exploration work had identified.  We registered 
our dissatisfaction to our partners in November 2001 in accordance with         
prescribed procedures," said Louw.                                              
"Although some compromises were agreed in December 2001, more than seven months 
have passed without a solution to the fundamental differences.  This has        
resulted in the automatic termination of the joint venture."                    
The return of Mv Namakwa to South African waters has effectively stopped all    
mining activities in the joint-venture area of Namibian Mining Licence 111.     
Ends.                                                                           
For further information  :    Andr Louw                                        
                         Trans Hex Group                                        
Tel: 021 937 2000                                      

Issued by           :    Cullum Johnston                                        
                         BHA Communications                                     
                         Tel: 021 683 2685 / 083 212 2455                       
Date                :    8 July 2002                                            
Date: 08/07/2002 08:30:00 AM Supplied by www.sharenet.co.za                     
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