SNU - Sentula Mining Limited - Raising of new senior debt facility

SNU - Sentula Mining Limited - Raising of new senior debt facility              
SENTULA MINING LIMITED                                                          
Incorporated in the Republic of South Africa                                    
(Registration number: 1992/001973/06)                                           
Share code: SNU     ISIN: ZAE000107223                                          
("Sentula" or "the Group")                                                      
RAISING OF NEW SENIOR DEBT FACILITY                                             
Shareholders are hereby advised that Sentula has received final credit approval 
for a facility in the amount of R740m from a consortium of financial            
institutions, comprising Standard Bank of South Africa Limited ("SBSA"), The    
Hong Kong and Shanghai Banking Corporation Limited (Johannesburg Branch) and    
Sanlam Capital Markets Limited, to refinance the Group`s existing senior debt   
facility and provide liquidity to the Group (the "Facility").                   
SBSA has been mandated to advise and arrange the refinance. This refinance will 
provide the Group with immediate capacity of R140m for new capital equipment. It
will provide the Group with refurbishment funding for the existing fleet and    
idle equipment of R120m over a six month period via a capital moratorium. The   
structure will also allow for further drawdown`s to finance new capital         
equipment over a four year period provided the aggregate debt within Sentula    
does not exceed R800m.                                                          
Sentula intends to have the Facility implemented by early February 2011. The    
Facility`s availability is subject to conclusion of final documentation and     
fulfillment of conditions applicable to a facility of this nature.              
The salient features of the Facility are as follows:                            
 1.   a reduced funding rate;                                                   
2.   a capital moratorium for two quarters; and                                 
3.   a four year fully amortising repayment profile.                            
Robin Berry, Chief Executive Officer of Sentula comments: "We are encouraged by 
the support from this consortium of credible financial institutions who have    
clearly demonstrated their commitment to Sentula. The refinancing structure     
creates more cash flow headroom, enables management to focus on operational     
issues and provides the Group with the requisite capital to reinvest in its     
fleet for sustainable growth into the future.                                   
Whilst we are cognisant of consequences of over-gearing given the Group`s peak  
debt level of R1.9bn in 2008 financial year, we believe that the peak debt level
of R800m under the new facility is conservative and appropriate in current      
trading conditions."                                                            
Sponsor to Sentula               Mandated Lead Arranger and Debt Advisor        
Merchantec Capital               Standard Bank of South Africa Limited          
(Registration number 1962/000738/06)            

Johannesburg                                                                    
17 January 2011                                                                 
Date: 17/01/2011 11:34:01 Supplied by www.sharenet.co.za                     
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