Simmers - Simmers to acquire four shaft assets from Harmony

Simmers - Simmers to acquire four shaft assets from Harmony                     
SIMMER AND JACK MINES LIMITED                                                   
(Incorporated in the Republic of South Africa)                                  
(Registration number 1924/007778/06)                                            
("Simmers" or "the company")                                                    
Share code: SIM                                                                 
ISIN: ZAE000006722                                                              
PRESS RELEASE                                                                   
Issued by Simmer & Jack Mines, Limited                                          
October 23 2006                                                                 
SIMMERS TO ACQUIRE FOUR SHAFT ASSETS FROM HARMONY                               
Simmer & Jack Mines, Limited (Simmers) has concluded an agreement with Harmony  
Gold Mining Company Limited (Harmony) to acquire the entire infrastructure      
relative to Ezulwini Mine, formerly Randfontein Estates Number Four Shaft, for a
sum of R55-million. The transaction also includes the sale of sufficient land to
construct new processing facilities, operate the mine and dispose of tailings   
onto an existing tailings dam.                                                  
In 2005, Simmers entered into an agreement with Harmony, the previous holder of 
the mining right at Ezulwini Mine, to continue the pumping obligations after    
Harmony was given permission by the Department of Minerals and Energy (DME) to  
commence its closure plan which included the controlled flooding of Four Shaft. 
Simmers received a conditional approval for new order mining rights from the DME
in May this year.                                                               
"On conclusion of the conditions precedent to this agreement, Simmers will own  
the equipment and infrastructure required to make the mine operational again.   
The agreement with Harmony also provides for the transfer of the environmental  
liabilities related to the Four Shaft Assets and funds to be used for the       
establishment of the new Environmental Trust Fund required by the DME," said    
Gordon Miller, CEO of Simmers.                                                  
Miller added, "By continuing the pumping obligations, Simmers has managed to    
keep the infrastructure dry in order to access the shaft pillar and our         
feasibility study confirmed that we have substantial, viable gold and uranium   
resources at Ezulwini, which can be mined either separately or as co-products of
each other."                                                                    
Resource statements compiled by independent consulting firms for the Ezulwini   
project are available on the company"s website at www.simmers.co.za.            
"These statements are now being independently audited by international experts  
ahead of our capital raising exercise to realize the value of the measured and  
indicated uranium and gold resources at Ezulwini. In the meantime,              
rehabilitation and support of underground shaft stations and pump chambers has  
commenced and the contract for shaft support and rehabilitation is being        
finalised between Simmers and the preferred bidder for the shaft rehabilitation 
project," said Miller.                                                          
Simmers expects to begin gold production as soon as the shaft pillar de-stress  
stoping commences, currently scheduled for the second quarter of 2007.          
For further information, please contact Gail Strauss on 084 777 4060            
For more information, please visit www.simmers.co.za                            
Date: 23/10/2006 12:19:04 PM Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department