Sharenet Sites 
Sharenet Sites
LAB - Labat - Update on the SAMES Disposal, Cancellation of the Primrose Acquisition, Withdrawal of Prior Cautionary Announcements and New Cautionary Announcement LABAT AFRICA LIMITED Incorporated in the Republic of South Africa) (Registration number: 1986/001616/06) Share Code: LAB & ISIN: ZAE000018354 ("Labat" or "the company") UPDATE ON THE SAMES DISPOSAL, CANCELLATION OF THE PRIMROSE ACQUISITION, WITHDRAWAL OF PRIOR CAUTIONARY ANNOUNCEMENTS AND NEW CAUTIONARY ANNOUNCEMENT Further to the announcements dated 20 July 2010, 23 July 2010, 16 August 2010, 31 August 2010 and 27 September 2010, shareholders are advised of the following: SAMES DISPOSAL We hereby advise that the Conditions Precedent for the SAMES disposal were not met timeously and thus Link Private Equity and Investments (Pty) Limited, Aurora Empowerment Systems (Pty) Limited and Labat are entering into a restructure agreement which will include the disposal of SAMES, details of which will be announced in due course. CANCELLATION OF THE PRIMROSE ACQUISITION Shareholders are advised that, in relation to the 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, 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 Primrose Acquisition"), the acquisition between Aurora and the vendors of Primrose has lapsed. Thus the acquisition by Labat from Aurora cannot proceed. Accordingly, Labat has entered into negotiations with the Primrose vendors for the acquisition of Primrose directly by Labat. The terms of this acquisition will be announced in due course. In addition, the announcement dated 31 August 2010 set out the pro forma financial effects of the Primrose Acquisition which were based on the reviewed condensed consolidated results of Labat for the year ended 28 February 2010, as adjusted by the annualised results for the Primrose Acquisition. These pro forma effects should have been adjusted for the 6 months of operations only. Once the new agreement for the direct acquisition of Primrose has been finalised, new pro forma effects will be published. WITHDRAWAL OF PREVIOUS CAUTIONARY ANNOUNCEMENTS AND NEW CAUTIONARY ANNOUNCEMENT As a result of the lapsing of agreements in relation to the Primrose acquisition and the SAMES disposal, shareholders are advised that negotiations are ongoing and that they should continue to exercise caution when dealing in their securities until a further announcement is made. Accordingly, all prior cautionary announcements are withdrawn and a new cautionary announcement is hereby issued. Johannesburg 09 November 2010 Transaction Sponsor Arcay Moela Sponsors (Proprietary) Limited Date: 09/11/2010 17:16:01 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.
