PGL - Pallinghurst - Update on the proposed OM Holdings Limited Tshipi

PGL - Pallinghurst - Update on the proposed OM Holdings Limited Tshipi          
Transaction announced on 28 September 2009                                      
PALLINGHURST RESOURCES LIMITED                                                  
(Previously Pallinghurst Resources (Guernsey) Limited)                          
(Incorporated in Guernsey)                                                      
(Guernsey registration Number: 47656)                                           
(South African external company registration number 2009/012636/10)             
Share code on the BSX: PALLRES      ISIN: GG00B27Y8Z93                          
Share code on the JSE: PGL                                                      
("Pallinghurst" or the "Company")                                               
Update on the proposed OM Holdings Limited ("OMH") Tshipi Transaction           
announced on 28 September 2009                                                  
 The following updates the Company`s SENS announcement of 28 September 2009:    
 * The acquisition by OMH of a 20% stake in Ntsimbintle Mining (Pty)            
    Limited ("Ntsimbintle"), the owners of 50.1% of Tshipi e Ntle Manganese     
Mining (Pty) Limited ("Tshipi"), is now likely to proceed on the basis      
    that OMH will acquire a 26% stake in Ntsimbintle for approximately AUD      
    64 million (the "OMH Ntsimbintle Transaction") and not the initially        
    proposed 20% stake;                                                         
* The Company welcomes the potential investment by OMH into Ntsimbintle,       
    which will allow Ntsimbintle to fully meet its share of the Tshipi          
    development costs;                                                          
 * OMH and the Pallinghurst Co-Investors have not been able to reach            
agreement on the acquisition by OMH of a 49.9% stake in Tshipi from the     
    Pallinghurst Co-Investors for the issue of 139,906,729 shares;              
 * The Pallinghurst Co-Investors, Ntsimbintle and OMH will continue to          
    discuss ways in which OMH may increase its effective interest in Tshipi     
over time.                                                                  
 Background to the Company`s existing investment in Tshipi                      
 Tshipi is 50.1% owned by Ntsimbintle and 49.9% by the Pallinghurst Co-         
 Investors. The Company currently owns a 9.98% indirect interest in Tshipi,     
which is part of the 49.9% Pallinghurst Co-Investor stake.                     
 Guernsey                                                                       
 26 November 2009                                                               
 Investment bank and Sponsor                                                    
Investec Bank Limited                                                          
Date: 26/11/2009 07:38:01 Supplied by www.sharenet.co.za                     
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