VUN - Vunani completes 37.5% acquisition of Black Wattle - Platform for growth in coal mining industry. VUNANI LIMITED (Incorporated in the Republic of South Africa) (Registration number 1997/020641/06) JSE code: VUN ISIN: ZAE000110359 ("Vunani") VUNANI COMPLETES 37.5% ACQUISITION OF BLACK WATTLE - PLATFORM FOR GROWTH IN COAL MINING INDUSTRY. Shareholders are referred to the announcement made on 14 July 2009 on the Stock Exchange News Service (SENS), that Vunani Capital (Proprietary) Limited ("Vunani Capital"), a subsidiary of Vunani, has entered into a Subscription and Shareholders` Agreement ("the agreement") with Bisichi Mining (Exploration) Limited ("Bisichi") and Black Wattle Colliery (Proprietary) Limited ("Black Wattle"). Vunani Capital is pleased to announce that all the conditions precedent to the above transaction have now been fulfilled and that the transaction has been implemented with effect from 14 October 2010. Vunani`s effective shareholding in Black Wattle is 37.5% with the balance held by Bisichi. Black Wattle is a leading opencast colliery situated in the Witbank coalfields close to Middelburg. The colliery produces high quality export steam coal, low phosphorous metallurgical coal, and Eskom coal with total sales in excess of 1.40 million metric tonnes per annum. Speaking about the transaction, Ethan Dube, Chief Executive Officer for Vunani remarked: "We are very excited about this coal mining investment. It provides a platform from which to build both organically and by acquisition our interests in the coal mining sector. Black Wattle is a leading independent opencast colliery in South Africa with access to both the export and domestic markets. Announcing the acquisition of the minority stake, Andrew Heller, Managing Director, Bisichi Mining PLC stated "Vunani is a leading publicly-listed black-owned and managed company and we are very pleased that they have joined us as a partner in Black Wattle. We are proud of our longstanding commitment to Black Economic Empowerment and we see this transaction with Vunani as the first of many we will do together in South Africa." In terms of the transaction, Vunani Capital acquired 110 ordinary shares and 265 "A" ordinary shares in Black Wattle at par value, resulting in an effective shareholding of 37.5% in Black Wattle. The "A" ordinary shares will rank pari passu with ordinary shares save for a restriction on the dividend right. "A" ordinary shareholders will be entitled to dividends once the agreed amount of dividends to ordinary shareholders have been distributed as specified in the agreement. Sandton 20 October 2010 Lead Designated Adviser: Grindrod Bank Limited Joint Designated Adviser: Vunani Corporate Finance Date: 20/10/2010 08:00:10 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.