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TAW - Tawana Resources NL - Innovative funding secures Kareevlei trial mining commencement Tawana Resources NL (Incorporated in Australia) (Registration number ACN 085 166 721) Share code on the JSE Limited: TAW ISIN: AU000000TAW7 Share code on the Australian Stock Exchange Limited: TAW ISIN: AU000000TAW7 ("Tawana" or "the Company") Innovative funding secures Kareevlei trial mining commencement The Directors of Tawana are pleased to announce the conclusion of an agreement on 25 October 2008 with Risk Free Investments 2 (Proprietary) Limited t/a Agio Diamond Investments ("Agio") for the sale of a 26% interest in Tawana`s Kareevlei Project for Rand 12 Million (Approximately A$1.7 million at current exchange rates). The Agreement requires Agio to effect payment of the purchase price within 30 days of signature. Agio is an unlisted South African investment company, headed by Johannesburg businessman Jack Feldman, which is currently building a portfolio of resource holdings. In terms of the agreement Tawana and Agio will commence trial mining on a joint venture basis with the companies funding costs and sharing profits on a 74% / 26% basis respectively. Kareevlei is a kimberlite cluster situated some 160 km North West of Kimberley, South Africa. On completion of trial mining, Agio will have the option of converting its interest in the project into equity in Tawana at A$0.10 (approximately Rand 0.70 at current average rates) per Tawana share, which would result in Agio holding approximately 12% of the current issued capital of Tawana. Tawana`s recent restructure of its Black Economic Empowerment relationship with Seven Falls, whereby Seven Falls exchanged its 26% holding in Tawana`s South African Projects for an 8% holding in Tawana, has enabled Tawana to sell 26% of the Kareevlei project to Agio, without diluting its own historic interest of 74% in the project. Commenting on the transaction Tawana`s Executive Chairman, Neil Barrie said: "I am delighted to welcome Agio as partners in our Kareevlei Wes project, a diamond from which recently attracted a bid as high as US$ 2800 per carat on a public tender. The transaction is representative of Tawana`s entrepreneurial ability to produce innovative funding solutions. We have an outstanding management team and first class assets which over the near term will transcribe into wealth creation for our shareholders and business partners. This deal clearly shows that in any market situation asset quality and management focus can be rewarded." Contact: Wolf Marx Managing Director Phone: +61 (0)3 98635222 Mobile: +61 (0)428398446 Email: wolf.marx@tawana.com.au Sponsor PricewaterhouseCoopers Corporate Finance (Pty) Ltd Date: 27/10/2008 09:40:01 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.
