PNG - Pinnacle Point Group Limited - Clarification announcement

PNG - Pinnacle Point Group Limited - Clarification announcement                 
PINNACLE POINT GROUP LIMITED                                                    
(Registration Number: 2000/000059/06)                                           
ISIN code:  ZAE000127122        Share code: PNG                                 
("Pinnacle Point" or "the Company")                                             
CLARIFICATION ANNOUNCEMENT                                                      
Shareholders are advised that Investec Bank Limited ("Investec") has applied    
for the liquidation of certain of Pinnacle Point`s subsidiaries, including      
inter alia Festival Bay Trading (Proprietary) Limited, Pinnacle Point Resorts   
(Proprietary) Limited (together "PPR") and Clarens Golf and Trout Estate        
(Proprietary) Limited ("Clarens"), which subsidiaries had project development   
funding facilities with Investec.  Investec has also applied for the            
liquidation of one other subsidiary which signed as co-principal debtor and     
surety for the three facilities.  This action is not against the Company.       
Shareholders are reminded that the Company signed an agreement for the sale of  
the business and assets of PPR, subject to conditions precedent being met, as   
mentioned in the detailed cautionary announcement published on 24 December      
2010, which sale provides for the full repayment of Investec`s debt in the      
relevant subsidiaries.                                                          
In addition, the Company is in the process of finalizing an agreement to        
provide additional project funding and working capital for the group.           
Accordingly, the Company is in the process of negotiating with Investec to      
withdraw the applications and to continue supporting the Company by way of      
reinstatement of the related secured property development facilities due to     
the Group`s improved prospects.  It should be noted that no further funding is  
required from Investec for these developments as they are substantially         
complete and it is expected that Investec will be repaid in full in due         
course, either from sale proceeds of stands or through the intended sale of     
PPR noted above.                                                                
Shareholders will be informed of any further developments in due course.        
JOHANNESBURG                                                                    
17 February 2011                                                                
Designated Advisor                                                              
Arcay Moela Sponsors (Proprietary) Limited                                      
Date: 17/02/2011 16:41:00 Supplied by www.sharenet.co.za                     
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