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PGL - Pallinghurst Resources - POSCO joins Pallinghurst as co-investor in

Release Date: 01/07/2009 12:24
Code(s): PGL
Wrap Text

PGL - Pallinghurst Resources - POSCO joins Pallinghurst as co-investor in Jupiter Mines Limited Pallinghurst Resources Limited (Formerly Pallinghurst Resources (Guernsey) Limited) Registration Number: 47656 (Incorporated in Guernsey) ISIN: GG00B27Y8Z93 BSX share code: PALLRES JSE share code: PGL ("Pallinghurst" or the "Company") POSCO JOINS PALLINGHURST AS CO-INVESTOR IN JUPITER MINES LIMITED POSCO to invest in Jupiter Pallinghurst shareholders are asked to note an announcement issued on 1 July 2009 by Jupiter Mines Limited ("Jupiter") to the Australian Stock Exchange that, subject to approval by the shareholders of Jupiter, POSCO Australia Pty Ltd (POSCO) will become a strategic investor in Jupiter with the placement of 48 million ordinary shares to POSCO for US$6.25 million at 16.266 Australian cents per share. Jupiter will hold a General Meeting to seek shareholder approval for the proposed transaction with POSCO. POSCO has also agreed an arms-length off-take agreement with Jupiter for up to 50% of Jupiter`s DSO-grade (direct shipping ore) iron ore production. Background On 9 March 2009, Pallinghurst and its joint venture partner Red Rock Resources ("RRR") acquired a joint 43.6% interest in Jupiter (27.48% and 16.12% respectively), as part of Pallinghurst`s stated strategy of creating a supplier of the key raw materials to the steel industry. Subject to approval by Jupiter shareholders, Pallinghurst, RRR and POSCO will jointly hold 52.98% of Jupiter. POSCO made a commitment of US$200 million as a Pallinghurst co-investor to pursue steel feed projects with Pallinghurst on 21 April 2008. POSCO`s first indirect investment as a Pallinghurst co-investor into the Tshipi manganese project in the Kalahari Basin of South Africa was announced on the JSE and BSX on 4 June 2009. Impact on the Company There is no direct impact on the headline earnings, net assets or net tangible assets per share of the Company as a result of the transaction, or the anticipated implementation, assuming Jupiter shareholders approve the terms. For further information please contact: Arne Frandsen +44 7881916047 Johannes van Niekerk +27 82 921 9110 Guernsey 1 July 2009 Investment Bank and Sponsor: Investec Bank Limited Date: 01/07/2009 12:24:11 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.

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