ASR - Assore Limited - Announcement by Assore in respect of Assmang Limited`s

ASR - Assore Limited - Announcement by Assore in respect of Assmang Limited`s   
Khumani Iron Ore Mine and planned expansion project                             
Assore Limited                                                                  
(Incorporated in the Republic of South Africa)                                  
Registration number: 1950/037394/06                                             
Share code: ASR                                                                 
ISIN: ZAE000017117                                                              
("Assore")                                                                      
ANNOUNCEMENT BY ASSORE IN RESPECT OF ASSMANG LIMITED`S KHUMANI IRON ORE MINE AND
PLANNED EXPANSION PROJECT                                                       
Assmang Limited ("Assmang"), which is jointly controlled by African Rainbow     
Minerals ("ARM") and Assore Limited ("Assore"), is pleased to announce that:    
*    The 10 million tonne per annum ("mtpa") Khumani Iron Ore Mine ("Khumani")  
    has been completed on time and within budget; and                           
*    The Assmang Board of Directors has approved additional capital expenditure 
("capex") of R5.5 billion for the completion of the Khumani Expansion       
    Project, to increase Khumani`s capacity from the current level of 10 mtpa   
    to 16 mtpa.                                                                 
The estimated total capex for the proposed Khumani Expansion Project is R6.7    
billion based on the feasibility study completed in June 2009, which compares   
favourably to the previous estimate in September 2008 of R7.2 billion.          
Expenditure of R1.2 billion has already been approved in September 2008 for     
early works and long lead items, hence the outstanding capital requirement for  
the completion of the Khumani Expansion Project comes to R5.5 billion.          
Of the 6 mtpa expansion, 4 mtpa is intended for the export market and 2 mtpa for
the domestic market. Assmang has received a commitment from Transnet to extend  
the current Iron Ore Export allocation on the Sishen/Saldanha export channel    
from 10 mtpa to 14 mtpa, increasing Assmang`s export capacity accordingly. This 
dovetails with the Iron Ore channel expansion from 47 mtpa to 60 mtpa.          
Assmang will fund the completion of the Khumani Expansion Project utilising     
existing cash resources, operational cashflows and existing borrowing           
facilities. The Khumani Expansion Project has robust returns and the high grade 
iron ore resource, with an excellent stripping ratio of 1.7 over the life of    
mining operations, ensures competitive mining costs.                            
Illovo Boulevard                                                                
Johannesburg                                                                    
12 August 2009                                                                  
Sponsor to Assore                                                               
Standard Bank                                                                   
For further information please contact                                          
Phil Crous                                                                      
EXECUTIVE DIRECTOR : ASSORE                                                     
Office: (011) 770 6909                                                          
Mobile: 083 250 9994                                                            
E-mail: philcrous@assore.com                                                    
Chris Cory                                                                      
CHIEF EXECUTIVE : ASSORE                                                        
Office: (011) 770 6888                                                          
Date: 12/08/2009 14:12:28 Supplied by www.sharenet.co.za                     
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