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ASSORE LIMITED - PRESS RELEASE: BLACK EMPOWERMENT BRINGS NEW LIFE TO THE MANKWE AREA, NORTH WEST PROVINCE Assore Limited ("Assore") Registration number: 1950/037394/06 JSE Share code: ASR ISIN: ZAE000017117 BLACK EMPOWERMENT BRINGS NEW LIFE TO THE MANKWE AREA, NORTH WEST PROVINCE Johannesburg, 26 May 2004 - Mining holding company, Assore Limited, through its wholly-owned subsidiary, African Mining and Trust Company Limited ("African Mining") and MAMPA Investment Holdings Limited ("MAMPA") have announced that they have agreed to structure a mining project in a unique deal ("Joint Venture"), which will bring new life to Rustenburg Minerals Development Limited ("Rustenburg Minerals"), an operating subsidiary within the Assore Group; and which will simultaneously introduce a broadly based socio-economic empowerment group into the mining industry in line with the requirements of the Mining Charter. The value of the transaction has not been disclosed but it is anticipated that the turnover of the empowered company, Rustenburg Minerals will be approximately R56 million per year going forward. The company operates opencast chrome mines in the North West Province and the production is supplied mainly to the local market. Black empowerment group MAMPA is the chromite mining arm of the Mankwe Development Foundation and is 100% owned by historically disadvantaged groups. The Foundation has crafted a vibrant economic development programme under the able leadership of Kgosi M.J. Pilane and a group of Dikgosi in the Mankwe area. Together with the private sector, this programme will be implemented to bring about sustainable economic development to the region. Chairman of MAMPA, Gabriel Mokgoko, says: "We are determined to harness the resourcefulness of our partners to nurture and grow the business so that we may be able to meet our obligations and at the same time address some of the glaring challenges before us in the region. We should not leave the development of rural areas to the communities in those areas only - it will take years for effective and desirable changes to take place. We have confidence that our partners are committed to the same goal and that we shall together realise this dream in the second decade of robust development and transformation in South Africa." African Mining at present holds the entire issued share capital of Rustenburg Minerals and will provide technical assistance, management, procurement, financial and resource management to the Joint Venture for a contracted fee. The terms of the new agreement include: 1. the sale by Samancor to MAMPA of the chromite rights on the farm Zandspruit; and 2. the issue to MAMPA of shares in the share capital of Rustenburg Minerals, which will result in MAMPA holding 44% and African Mining holding 56% of the entire issued share capital of Rustenburg Minerals in return for MAMPA ceding the Zandspruit rights to the Joint Venture. Rustenburg Minerals owns the chromite rights on portions 1 and 2 of the farm Groenfontein and the existing opencast and underground chromite mines thereon, as well as the chromite rights and surface rights on portion 3 of the farm, Vogelstruisnek and the chromite rights over a portion of Bakhoutrandje. The Joint Venture area therefore refers to the farms Groenfontein, Vogelstruisnek, Bakhoutrandje and Zandspruit, North West of the Pilanesberg. The parties have agreed to enter into an agreement to regulate the issues surrounding the share capital of Rustenburg Minerals, the Zandspruit rights and the proposed development of the Mankwe area. MAMPA will be represented at management and board level of Rustenburg Minerals and will jointly manage the ongoing process for the transfer of skills. Assore Technical Director, Phil Crous, says: "A due diligence of the mine has been completed by African Mining to the satisfaction of the Joint Venture partners. The capital expenditure associated with the development and expansion of the mine has been estimated and a bulk sample of the Zandspruit chromite is underway." Crous adds: "This transaction will bring considerable benefits to the Mankwe area in terms of economic and social development of the community, including stabilisation and sustainable employment, skills and education. We also intend to rehabilitate the land once mining operations have been completed, making it suitable for sustainable agriculture." Rustenberg Minerals has a proud record of achievement for environmental excellence, having been awarded the Excellence in Mining Environmental Management award for the North West Province by the Department of Minerals and Energy ("DME") in 2001 for rehabilitation and sustainable development of large opencast mines. Crous concludes: "Assore supports the DME"s Mining Charter and we believe that this transaction with MAMPA is entirely appropriate for our business. It is a significant move towards fulfilling our empowerment strategy. Essentially, Rustenburg Minerals was an under utilized mineral resource and as a result of this empowerment transaction, the company will be able to continue as a going concern with attractive prospects going forward." ENDS Notes to Editors: 1. Assore Limited is a listed mining holding company incorporated in 1950, engaged principally in ventures involving base metals and minerals. 2. Assore Limited"s primary business is its 45,7% stake in Assmang Limited, a manganese ore and alloy, chrome ore and alloy and iron ore producer, which it manages jointly with African Rainbow Minerals Limited. For further information, please contact: Barbara Bester (on behalf of Assore Limited) Communications Services Tel: (011) 463 1011 or Cell: 082 448 5625 or Phil Crous, Group Director: Technical Operations Assore Limited Tel: (011) 770 6800 (switchboard) Or Tel: (011) 770 6909 (direct) or Gabriel Mokgoko, Chairman, MAMPA Tel: (012) 543 9054 or Cell: 072 243 0995 Date: 26/05/2004 12:00:07 PM Supplied by www.sharenet.co.za Produced by the JSE SENS Department
