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GDO - Gold One International Limited - Price and volume query received from ASX

Release Date: 31/03/2011 07:39
Code(s): GDO
Wrap Text

GDO - Gold One International Limited - Price and volume query received from ASX Limited Gold One International Limited (Previously BMA Gold Limited) Registered in Western Australia under the Corporations Act, 2001 (Cth) Registration number ACN: 094 265 746 Registered as an external company in the Republic of South Africa Registration number: 2009/000032/10 Share code on the ASX/JSE: GDO ISIN: AU000000GDO5 OTCQX International: GLDZY ("Gold One" or the "company") PRICE AND VOLUME QUERY RECEIVED FROM ASX LIMITED Shareholders are advised that Gold One has received a query from the ASX Limited in respect of the recent price and trading volume increase in the company`s securities. The query together with the company`s response thereto is set out below. QUOTE PRICE AND VOLUME QUERY We have noted a change in the price of the Company`s securities from a closing price of $0.32 on 16 March 2011 to an intra day high today, Wednesday 30 March 2011 of $0.43 We have also noted an increase in the volume of trading in the securities over this period. In light of the price and volume change, please respond to each of the following questions. 1. Is the Company aware of any information concerning it that has not been announced which, if known, could be an explanation for recent trading in the securities of the Company' Please note that as recent trading in the Company`s securities could indicate that information has ceased to be confidential, the Company is unable to rely on the exceptions to listing rule 3.1 contained in listing rule 3.1A when answering this question. 2. If the answer to question 1 is yes, can an announcement be made immediately' If not, why not and when is it expected that an announcement will be made' Please note, if the answer to question 1 is yes and an announcement cannot be made immediately, you need to contact us to discuss this and you need to consider a trading halt (see below). 3. Is there any other explanation that the Company may have for the price and volume change in the securities of the Company' 4. Please confirm that the Company is in compliance with the listing rules and, in particular, listing rule 3.1. Your response should be sent to me by email to Elizabeth.Harris@asx.com.au or by facsimile number on (08) 9221 2020. It should not be sent to the Company Announcements Office. Unless the information is required immediately under listing rule 3.1, a response is requested as soon as possible and, in any event, not later than 4:00 pm (W.S.T.) today Wednesday, 30 March 2011. Under listing rule 18.7A, a copy of this query and your response will be released to the market, so your response should be in a suitable form and separately address each of the questions asked. If you have any queries or concerns, please contact me immediately. Listing rule 3.1 Listing rule 3.1 requires an entity to give ASX immediately any information concerning it that a reasonable person would expect to have a material effect on the price or value of the entity`s securities. The exceptions to this requirement are set out in listing rule 3.1A. In responding to this letter you should consult listing rule 3.1 and Guidance Note 8 - Continuous Disclosure: listing rule 3.1. If the information requested by this letter is information required to be given to ASX under listing rule 3.1 your obligation is to disclose the information immediately. Your responsibility under listing rule 3.1 is not confined to, or necessarily satisfied by, answering the questions set out in this letter. Trading halt If you are unable to respond by the time requested, or if the answer to question 1 is yes and an announcement cannot be made immediately, you should consider a request for a trading halt in the Company`s securities. As set out in listing rule 17.1 and Guidance Note 16 - Trading Halts we may grant a trading halt at your request. We may require the request to be in writing. We are not required to act on your request. You must tell us each of the following. - The reasons for the trading halt. - How long you want the trading halt to last. - The event you expect to happen that will end the trading halt. - That you are not aware of any reason why the trading halt should not be granted. - Any other information necessary to inform the market about the trading halt, or that we ask for. The trading halt cannot extend past the commencement of normal trading on the second day after the day on which it is granted. If a trading halt is requested and granted and you are still unable to reply to this letter before the commencement of trading, suspension from quotation would normally be imposed by us from the commencement of trading if not previously requested by you. The same applies if you have requested a trading halt because you are unable to release information to the market, and are still unable to do so before the commencement of trading. RE: PRICE AND VOLUME QUERY In reply please see the following responses to your questions: 1. Is the Company aware of any information concerning it that has not been announced which, if known, could be an explanation for recent trading in the securities of the Company' Please note that as recent trading in the Company`s securities could indicate that information has ceased to be confidential, the Company is unable to rely on the exceptions to listing rule 3.1 contained in listing rule 3.1A when answering this question. The Company notes the increase in the price and trading volume of its securities on ASX over the period referred to in your letter. The Company considers that the increase in price and trading volume are the result of a combination of factors, including: (a) the recent announcement of strong operational performance, evidenced by the fact that the Company is on target to exceed its first quarter production target (announced 14 March 2011); (b) the positive response to recent international roadshows and presentations by the Company (presentation slides released on 16 March and 30 March 2011); (c) the shareholder approval of the Goliath Gold transaction, and confirmation of the creation of Goliath Gold Mining limited, a new gold exploration and development company controlled by the Company (announced 22 March 2011); and (d) a recognition that the value currently ascribed to Gold One by the market may be considered low in comparison with that of peer group companies. In addition to its operational activities, the Company has under contemplation from time to time various initiatives to enhance shareholder returns, including corporate transactions. In the Company`s view, all such transactions currently under contemplation are both confidential and not at a stage to warrant disclosure because of their incomplete nature. For example, Gold One is currently assessing a potential acquisition transaction, and also a potential change of control transaction for the Company which, if it were to proceed, could involve an offer to Gold One shareholders to acquire all of their shares, on terms and conditions yet to be determined. At this stage, no binding arrangements have been entered into in relation to the potential transactions referred to above, and the Company can give no assurance that any transaction will eventuate from those currently under contemplation. The Company will continue to keep shareholders and the market informed. The Company has appointed advisers in relation to the potential transactions referred to above. 2. If the answer to question 1 is yes, can an announcement be made immediately' If not, why not and when is it expected that an announcement will be made' Please note, if the answer to question 1 is yes and an announcement cannot be made immediately, you need to contact us to discuss this and you need to consider a trading halt. See answer to 1 above. 3. Is there any other explanation that the Company may have for the price and volume change in the securities of the Company' No, the Company does not have any explanation other than as set out in 1 above. 4. Please confirm that the Company is in compliance with the listing rules and, in particular, listing rule 3.1. The Company confirms that it is compliant with the listing rules, and in particular, listing rule 3.1. UNQUOTE Issued by Gold One International Limited Website: www.gold1.co.za Parktown, Johannesburg 31 March 2011 JSE SPONSOR Macquarie First South Advisers (Pty) Limited Neal Froneman President and CEO +27 11 726 1047 (office) +27 83 628 0226 (mobile) neal.froneman@gold1.co.za Ilja Graulich Investor Relations +27 11 726 1047 (office) +27 83 604 0820 (mobile) ilja.graulich@gold1.co.za Carol Smith Investor Relations +27 11 726 1047 (office) +27 82 338 2228 (mobile) carol.smith@gold1.co.za Derek Besier Farrington National Sydney +61 2 9332 4448 (office) +61 421 768 224 (mobile) derek.besier@farrington.com.au About Gold One Gold One is a gold producer listed on the financial markets operated by the ASX Limited and the JSE Limited, issuer code GDO. Its flagship operation is the newly built shallow Modder East mine on the East Rand, some 30 kilometres from Johannesburg. Modder East is the first new mine to be built in the region in 28 years and distinguishes itself from most of the other gold mines in South Africa owing to its shallow nature (300 metres to 500 metres below surface). To date Modder East has provided direct employment opportunities for over 1,100 people. Gold One also owns the nearby existing Sub Nigel mine, which is used primarily as a training centre in the buildup of Modder East to full production. Gold One`s other projects and targets include Ventersburg in the Free State Goldfields, the Tulo concession in Mozambique and the Etendeka greenfield project in Namibia. Gold One has an issued share capital of 807,080,905 shares. Date: 31/03/2011 07:39:33 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.

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