VUN - Vunani - Subscription for new shares in black wattle colliery

VUN - Vunani - Subscription for new shares in black wattle colliery             
              (Proprietary) Limited ("Black Wattle")                            
VUNANI LIMITED                                                                  
(Incorporated in the Republic of South Africa)                                  
(Registration number 1997/020641/06)                                            
JSE code: VUN                                                                   
ISIN: ZAE000110359                                                              
("Vunani")                                                                      
SUBSCRIPTION FOR NEW SHARES IN BLACK WATTLE COLLIERY (PROPRIETARY) LIMITED      
("Black Wattle")                                                                
1.   INTRODUCTION                                                               
Vunani Capital (Pty) Limited ("Vunani Capital"), a subsidiary of Vunani,    
    has entered into a Subscription and Shareholders` Agreement with Bisichi    
    Mining (Exploration) Limited and Black Wattle to subscribe for 20 ordinary  
    shares and 355 "A" ordinary shares in Black Wattle at par value of R1 each, 
to be settled in cash ("the agreement"), resulting in an effective          
    shareholding of 37.5% in Black Wattle ("the subscription").                 
2.   BACKGROUND INFORMATION                                                     
    Black Wattle is an underground and opencast coal mine located in the        
Witbank Coalfields, near Middelburg, Mpumalanga which produces              
    approximately 130 000 tonnes per month of high quality export steam coal,   
    low phosphorous metallurgical coal and Eskom coal.  Black Wattle has been   
    owned and managed by Bisichi Mining PLC since 1994.                         
3.   RATIONALE FOR THE SUBSCRIPTION                                             
    The subscription provides a platform for Vunani to expand its investment    
    activities into coal mining opportunities and to potentially receive        
    dividends on its Black Wattle ordinary shareholding.  The "A" ordinary      
shareholders will only be entitled to receive dividends once the agreed     
    amount of dividends to ordinary shareholders have been distributed as       
    specified in the agreement.                                                 
4.   EFFECTIVE DATE                                                             
The effective date of the subscription will be the second business day      
    after the date of fulfilment of the last of the conditions precedent.       
5.   CONDITIONS PRECEDENT                                                       
    The subscription is conditional, inter alia, on:                            
-    relevant regulatory approvals, including approvals from the Department 
         of Minerals and Energy and the South African Reserve Bank, being       
         obtained; and                                                          
    -    various special resolutions relating to Black Wattle statutory matters 
being registered by CIPRO.                                             
6.   FINANCIAL EFFECTS                                                          
    The subscription price is immaterial in relation to Vunani`s current market 
    capitalisation.  It is difficult to estimate the potential future dividends 
that will accrue to Vunani in terms of the agreement and it would be        
    misleading to make any assumptions in regard thereto.                       
Sandton                                                                         
14 July 2009                                                                    
Lead Designated Adviser:                                                        
Grindrod Bank Limited                                                           
Corporate Adviser and Joint Designated Adviser:                                 
Vunani Corporate Finance                                                        
Date: 14/07/2009 07:56:01 Supplied by www.sharenet.co.za                     
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