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PET - Petmin - Investment in Hummingbird Resources Plc ("Hummingbird") PETMIN LIMITED Incorporated in the Republic of South Africa Registration Number 1972/001062/06 Share Code JSE: PET & ISIN: ZAE000076014 Share Code AIM: PTMN ("Petmin" or "the Company") INVESTMENT IN HUMMINGBIRD RESOURCES PLC ("Hummingbird") Petmin is pleased to announce that on 24 January 2011 the Company entered into an agreement with Hummingbird and its wholly owned subsidiary Iron Bird Resources Inc ("Iron Bird"), relating to Hummingbird`s Mount Ginka licence for exploration of iron ore in Liberia. Hummingbird Resources Plc.(AIM:HUM) is the largest holder of mineral exploration licences in the eastern part of Liberia, a hitherto unexplored region of Birimian age geology - a province that is known to be highly prospective for the discovery of large scale gold and other mineral deposits. Hummingbird has sought to capitalise on this prospect through systematic and extensive exploration over the last four years. Under this agreement Petmin will provide up to a total sum of US$2m for the exploration of the Mount Ginka licence area in a two stage plan to ascertain the commercial viability of the project. The key terms of the agreement are: - Iron Bird will issue new shares equivalent to 15% of its issued share capital to Petmin for a consideration of US$500,000 ("First Phase Investment"). This investment is conditional on the transfer of the Mount Ginka licence to Iron Bird. - The First Phase Investment will be used for the purpose of demonstrating whether a commercially saleable magnetite concentrate can be produced ("Phase 1 of the Work Programme"). - On successful completion of Phase 1 of the Work Programme, Petmin will invest a further US$1,500,000 in Iron Bird, to increase its shareholding to 50% ("Second Phase Investment"). - The Second Phase Investment will be utilised to demonstrate the scale of the resource within the licence area. Phase 1 of the Work Programme will commence with an aeromagnetic survey which has been contracted to be flown shortly. Following this, Phase 1 of the Work Programme is expected to progress with grab sampling, trenching, pitting and scout drilling with the aim of obtaining a representative sample for metallurgical test work. Mount Ginka - Geology and Location The itabirite ridge in the Company`s Mount Ginka licence area is east west trending with a 30 kilometer long strike length and reaches elevations of up to 500 MASL, with an average elevation of approximately 400 MASL. The ridge is dissected halfway through by a structural break. The itabirite ridge has a near vertical dip and measures up to 400 meters in thickness. The Mount Ginka licence area covers approximately 155 square kilometers and is situated in Nimba County in north central Liberia. It is located approximately 15 kilometers south of Yekepa, a major iron ore deposit located at Mt Nimba, which is currently being developed by Accelor-Mittal. In addition BHP Billiton is undertaking iron ore exploration approximately 30 kilometers northwest of Mount Ginka at the Mount Kitoma licence area. The Mount Ginka licence area is approximately 200 kilometers from Monrovia and can be easily reached via road access. The licence area is located in Nimba County, which has an extensive history of iron ore production. The project area is favorably situated 15 kilometers from a railway line, which connects Mount Nimba to the deep water port at Buchanan on the coast. The railroad is currently undergoing reconstruction to service BHP Billiton`s and Arcelor-Mittal`s projects located nearby and once completed the Group will be entitled to use this railroad in accordance with the terms of Arcelor-Mittal`s license. Furthermore, the surrounding area to Mount Ginka has numerous small roads and tracks making local access relatively simple. Dan Betts, CEO of Hummingbird, commented: "We are delighted to have finalised the terms of this agreement and look forward to working with a team we know well to progress the Mount Ginka project. This deal allows us to understand the commercial viability of the project at no cash cost to our shareholders, and we look forward to the results of the contracted aeromagnetic survey." Jan du Preez, CEO of Petmin, commented: "The Mount Ginka JV with HUM represents an early stage, cost effective entry into a potentially prospective venture. It is further progress on our stated intention of diversifying both our product mix and expanding our global footprint." Conditions Precedent Where applicable this transaction is subject to the approval of the SARB, JSE Limited, the Securities Regulation Panel and the Competition Commission; Categorisation, JSE Listings Requirements This transaction does not fall within any of the categorisation definitions of the JSE listings requirements and this announcement has been made in the interest of keeping shareholders updated with the activities of the company. Johannesburg 25 January 2011 Corporate Advisor and Sponsor River Group Enquiries: Petmin Bradley Doig (COO) +27 824 597 818 Nominated Advisor (AIM) Numis Securities Limited John Harrison +44 207 260 1000 Sponsor and Corporate Advisor (JSE) River Group Andrew Lianos +27 834 408 365 Date: 25/01/2011 07:45:01 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.
