TBX - Thabex Limited - Update To Shareholders - Monastery Kimberlite Project

TBX - Thabex Limited - Update To Shareholders - Monastery Kimberlite Project    
Thabex Limited                                                                  
Incorporated in the Republic of South Africa                                    
(Registration number 1988/000763/06)                                            
Share code: TBX ISIN:ZAE000013686                                               
("Thabex" or "the Company")                                                     
Young Lions Exploring Africa                                                    
UPDATE TO SHAREHOLDERS - MONASTERY KIMBERLITE PROJECT                           
Shareholders are referred to the update to shareholders announcements relating  
to the progress at the Company`s Monastery Kimberlite project in the district of
Marquard of the Free State Province, the last of which was released on SENS on  
30 July 2010.                                                                   
Thabex is pleased to announce that Monastery Mine (Proprietary) Limited         
("Monastery Mine") has entered into a processing contract agreement with Dry    
Harts Diamonds cc ("Dry Harts"), a close corporation based in Kimberley, to     
process an oxidised kimberlite dump located on the southern side of the main    
Monastery Kimberlite pipe. The agreed minimum rate of processing is 10 000 tons 
per month. The contractor agreement provides for a gross turnover split of      
20/80. Monastery Mine would receive 20% and Dry Harts 80% of gross turnover. Dry
Harts will however supply all processing equipment and be responsible for all   
operating costs of the dump processing operation.                               
The approximate size of the oxidised kimberlite dump is estimated at 200 000    
tons at an estimated grade of 25 ctph ("carats per hundred ton").               
At present Monastery Mine is processing various kimberlitic dumps around its 100
tph ("tons per hour") DMS ("Dense Medium Separator") plant. Having consulted    
various metallurgical consultants, Monastery Mine is planning to refurbish its  
100 tph DMS plant and utilise newer recovery technologies in conjunction with   
its 100 tph DMS plant, such as the CommodasUltrasort ROM XRT and GEM series     
sorting machines, for both primary sorting and final recovery.                  
The processing of the oxidised kimberlite dump by Dry Harts is expected to      
provide Monastery Mine with sufficient cash flow to enable it to test and       
introduce these technologies to compile a bankable feasibility study on the     
project.                                                                        
Johannesburg                                                                    
21 February 2011                                                                
Sponsor                                                                         
Merchantec Capital                                                              
Date: 21/02/2011 14:58:01 Supplied by www.sharenet.co.za                     
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