LAB - Labat Africa Limited - Further announcement relating to the acquisition of

LAB - Labat Africa Limited - Further announcement relating to the acquisition of
Primrose Gold Metallurgical Operation and ERPM Gold Metallurgical Operation     
LABAT AFRICA LIMITED                                                            
Incorporated in the Republic of South Africa                                    
(Registration number 1986/001616/06)                                            
JSE code: LAB                                                                   
ISIN: ZAE000018354                                                              
("Labat" or the "company")                                                      
FURTHER ANNOUNCEMENT RELATING TO THE ACQUISITION OF PRIMROSE GOLD METALLURGICAL 
OPERATION AND ERPM GOLD METALLURGICAL OPERATION                                 
Labat notified in an announcement, dated 20 July 2010, that it had entered into 
an agreement to acquire the gold processing and smelting operations known as    
Primrose Gold Metallurgical as well as ERPM Gold Metallurgical from Primrose    
Gold Mines (Pty) Limited ("seller"), a wholly owned subsidiary of Aurora        
Empowerment Systems (Pty) Limited, for a purchase consideration of R38 000 000  
through the issue of 38 000 000 Labat ordinary shares at R1.00 per share ("the  
acquisition").                                                                  
Shareholders are notified that the transaction is, in terms of the Listings     
Requirements of the JSE Limited, classified as a category 1 related party       
transaction and also a "reverse take-over" (due to the fact that the acquisition
will result in a fundamental change in the business) and will therefore require 
a fairness opinion, and shareholders` approval as well as the inclusion of      
listing particulars in the relevant circular to shareholders.                   
Shareholders are also notified that the continued listing of Labat will be      
dependent on the JSE`s approval of the suitability of the businesses acquired   
through the acquisition (or any other assets/business that Labat may acquire in 
the interim).                                                                   
Sandton                                                                         
16 August 2010                                                                  
Corporate adviser and sponsor to Labat                                          
Vunani Corporate Finance                                                        
Legal adviser to Labat                                                          
Eversheds                                                                       
Corporate adviser to Aurora Empowerment Systems (Pty) Limited                   
Arcay Moela Sponsors (Pty) Ltd                                                  
Date: 16/08/2010 11:17:01 Supplied by www.sharenet.co.za                     
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