PGL - Pallinghurst Raises R800 Million Of New Equity By Way Of A Fully Pre-

PGL - Pallinghurst Raises R800 Million Of New Equity By Way Of A Fully Pre-     
         Placed And Underwritten Rights Offer                                   
PALLINGHURST RESOURCES LIMITED                                                  
(Previously Pallinghurst Resources (Guernsey) Limited)                          
(Incorporated in Guernsey)                                                      
(Registration number 47656)                                                     
Share code on the BSX: PALLRES        ISIN: GG00B27Y8Z93                        
Share code on the JSE: PGL                                                      
("Pallinghurst" or "the Company")                                               
PRESS RELEASE: PALLINGHURST RAISES R800 MILLION OF NEW EQUITY                   
BY WAY OF A FULLY PRE-PLACED AND UNDERWRITTEN RIGHTS OFFER                      
The directors of Pallinghurst are pleased to announce that the Company has      
secured R800 million of incremental equity capital which will enable it to      
commit further capital to its four unique growth platforms.                     
The R800 million will be raised via a rights offer of 228,571,376 new shares in 
the ratio of 92.452 rights for every 100 shares held by existing shareholders.  
The rights offer price of R3.50/share represents a 12% discount to the 30-day   
volume weighted average price of a Pallinghurst share on the JSE (as of the     
start of today`s trading).                                                      
The rights offer will first commence in early September, but at the date of this
announcement, Pallinghurst has pre-placed and received irrevocable underwriting 
commitments for all shares available, for a total amount of R800 million. Of    
this, R447 million has been subscribed for by existing shareholders, while Oasis
Asset Management Limited, Oasis Crescent Capital (Proprietary) Limited and      
Trinity Asset Management (Proprietary) Limited have irrevocably agreed to       
underwrite the remaining R353 million.                                          
Pallinghurst`s Chairman Brian Gilbertson said: "Three of our four investment    
platforms are now approaching operating status and some additional funding is   
required to realise the full potential of all four. This capital raising enables
Pallinghurst to participate, along with our strategic equity partners, in our   
pro rata funding entitlements, so avoiding dilution. I thank our major          
shareholders who have committed to take up their full entitlement for this vote 
of confidence in our prospects, and warmly welcome our new underwriters. "      
Under the terms of the rights offer, all existing shareholders who have not     
participated in the pre-placement will be entitled to take-up, dispose, or      
renounce all or part of their rights. Only thereafter will any unexercised      
rights be allocated to the underwriters.                                        
Pallinghurst CEO Arne H. Frandsen said: "Conditions in the international capital
markets remain volatile, and so we are delighted to have raised the full amount 
sought, even before the actual launch of the rights offer, and hence securing   
absolute funding certainty. The year 2009 has already produced a number of      
milestones for Pallinghurst, and with this additional capital we will be able to
focus on the completion of our projects, and the associated value creation for  
all our shareholders"                                                           
Pallinghurst intends to release a finalisation date announcement on SENS on or  
about Friday, 21 August 2009.  A circular setting out the full terms of the     
Rights Offer will be posted to shareholders on or about Monday, 7 September     
2009.                                                                           
Further details about the Company`s four investment platforms:                  
Platinum Group Metals - PGM                                                     
Pallinghurst has investments in - and rights over - various PGM properties      
situated in the Bushveld Igneous Complex of South Africa, an area which is      
estimated to hold in excess of 80% of the world`s platinum resources. Inter     
alia, Pallinghurst and certain co-investors are jointly the controlling         
shareholder of Platmin Ltd, which is a PGM producer listed on TSX, AIM and the  
JSE. The PGM strategy is being pursued through a unique partnership between     
Pallinghurst, its co-investors and the Bakgatla-Ba-Kgafela Tribe, a traditional 
community and tribe established according to indigenous custom, who own land and
mineral rights in the Pilanesberg area.                                         
Steel Feed Corporation                                                          
Competition for raw material supplies (particularly iron ore and manganese) to  
the global steel industry is intensifying and the major steel producers are     
seeking to secure their raw material supplies through equity ownership of mining
companies. Pallinghurst is developing a Steel Feed Materials Investment Platform
through two vehicles, Tshipi Manganese Mining (Proprietary) Limited. and Jupiter
Mines Limited (ASX listed), for the supply of mainly manganese and also iron    
ore. This strategy is at an early stage of development. Regardless, Posco, a    
Pallinghurst co-investor and one of the world`s largest steel companies, has    
recently invested in each of these vehicles.                                    
Coloured Gemstones                                                              
Pallinghurst has identified the coloured gemstone industry as having attractive 
dynamics and prospects. It has historically been overlooked, and is fragmented  
and undercapitalised. This presents a unique opportunity to create an integrated
coloured gemstone producer, simplifying the coloured gemstone value chain and   
thereby enhancing investment returns. Pallinghurst and certain co-investors are 
jointly the controlling shareholder of AIM-listed Gemfields plc - one of the    
world`s largest emerald producers. Gemfields is committed to bringing ethically 
produced, conflict-free coloured gemstones of certified provenance directly from
the mine to the market.                                                         
Faberge                                                                         
The Faberge name is one of the most revered names in history and to this day    
remains synonymous with artistry and craftsmanship of the highest order.        
Pallinghurst and certain co-investors acquired the global portfolio of          
trademarks, licences and associated rights relating to the Faberge name from    
Unilever in 2007. Pallinghurst has reunited the brand name with the Faberge     
family, which had lost the rights in a legal settlement more than 50 years ago. 
In September this year, Faberge will celebrate its renaissance by unveiling to  
the world its first high jewellery collection since 1917.                       
This press release should be read in conjunction with the Company`s SENS        
announcement released earlier today, which provides the details of the rights   
offer.                                                                          
For further information please contact:                                         
Arne H. Frandsen         +44 778 752 1871                                       
Guernsey                                                                        
11 August 2009                                                                  
Investment Bank and Sponsor: Investec Bank Limited                              
Date: 11/08/2009 14:53:01 Supplied by www.sharenet.co.za                     
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