PGL - Pallinghurst Resources Limited - Pallinghurst completes Tshipi/ Jupiter

PGL - Pallinghurst Resources Limited - Pallinghurst completes Tshipi/ Jupiter   
transaction                                                                     
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")                                               
Pallinghurst completes Tshipi/ Jupiter transaction                              
1    Introduction                                                               
    Further to the announcements dated 1 March 2010 and 16 August 2010, the     
    Directors are now pleased to announce that as the conditions precedent have 
    been satisfied and all contractual obligations have been met, the Company   
has completed the transaction exchanging its indirect interest in Tshipi e  
    Ntle Manganese Mining (Pty) Ltd ("Tshipi") for new shares in Jupiter Mines  
    Limited ("Jupiter") (the "Transaction").                                    
    Estimated fair value gain on completion of the Transaction                  
Number of   Closing   US$/AUD  Amount US$         

                              Jupiter     Jupiter   exchange                    
                              shares      share     rate on                     
                              acquired    price in  8                           
AUD on 8  November                    

                                          November  2010                        
                                          2010                                  
                                                                                
Fair value of 7.71%                                         (27,156,456)       
 equity interest in                                                             
 Tshipi, loans and                                                              
 cash vended into                                                               
Jupiter                                                                        
 Fair value of Jupiter        200,264,526 0.390     1.015    79,302,830         
 shares received                                                                
                                                                                
Total fair value gain                                       52,146,374         
 on the Transaction                                                             
                                                                                
 Estimated transaction                                       (300,000)          
costs                                                                          
                                                                                
 Total fair value gain on the                                                   
 Transaction less estimated                                                     
transaction costs                                                              
                                                             51,846,374         
                                                                                
    The estimated transaction costs are likely to change, as the amount of      
these costs has not yet been finalised.  Any variation in transaction costs 
    will not be material to Pallinghurst.                                       
    The key differences between the financial effects of the Transaction as     
    disclosed on 16 August 2010 and the impact as disclosed above are the       
variance in the Jupiter share price (AUD0.270 per share on 12 August 2010), 
    and the variance in the US$/AUD exchange rate (from US$0.902/AUD1 on 12     
    August 2010 to US$1.015/AUD1 on 8 November 2010).                           
2    Completion of POSCO transaction                                            
In terms of the POSCO transaction which was announced on 4 June 2009, the   
    Company received US$6,867,477 which was previously being held in escrow in  
    return for part of its interest in Tshipi on 4 November 2010.  Accordingly  
    the POSCO transaction is now complete. The transaction has had no impact on 
the Company`s net asset value or earnings.                                  
Guernsey                                                                        
9 November 2010                                                                 
Investment bank and sponsor                                                     
Investec Bank Limited                                                           
Date: 09/11/2010 16:00:05 Supplied by www.sharenet.co.za                     
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