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MVL/NHM - Mvelaphanda Resources Limited/Northam Platinum Limited - SA Tax Considerations regarding the distribution of Northam shares Mvelaphanda Resources Limited (Incorporated in the Republic of South Africa) (Registration number: 1980/001395/06) Share Code: MVL ISIN: ZAE000050266 ("Mvela Resources") Northam Platinum Limited (Incorporated in the Republic of South Africa) (Registration number: 1977/003282/06) Share Code: NHM ISIN: ZAE000030912 ("Northam") SOUTH AFRICAN TAX CONSIDERATIONS REGARDING THE DISTRIBUTION OF 181 980 981 NORTHAM ORDINARY SHARES TO MVELA RESOURCES ORDINARY SHAREHOLDERS ("NORTHAM DISTRIBUTION") Allocation of the "tax cost" of the ordinary shares in the capital of Mvela Resources ("Mvela Resources ordinary shares") on the distribution of the Northam shares The purpose of this announcement is to advise Mvela Resources ordinary shareholders of the closing prices of the Northam shares and the Mvela Resources ordinary shares on 26 April 2011, and of the ratio in which the expenditure incurred in connection with the acquisition of the Mvela Resources ordinary shares, or their valuation date values, as the case may be, must be allocated to the Northam shares and the Mvela Resources ordinary shares (the "allocation ratio"). The distribution of the Northam shares by Mvela Resources on Tuesday, 26 April 2011 was an unbundling transaction as contemplated in section 46 of the Income Tax Act, No. 58 of 1962, as amended. Accordingly all Mvela Resources ordinary shareholders must determine the portion of the expenditure incurred in respect of the Mvela Resources ordinary shares that must be attributed to the Northam distribution shares as follows: A = B x (C/(C +D)) where: "A` is the expenditure determined which must be allocated to the Northam distribution shares; "B" is the expenditure incurred in relation to the Mvela Resources ordinary shares; "C" is the market value of the Northam distribution shares determined at the close of business after the Northam distribution; and "D" is the market value of Mvela Resources ordinary shares, determined at the close of business after the Northam distribution. Mvela Resources shareholders are advised that the allocation ratio, based on the relative market values of the Northam shares and the Mvela Resources ordinary shares at the close of business on 26 April 2011, was as follows: Closing price Market value Ratio 26/04/2011
R R % Northam shares 42.00 7,643,201,202 89.70% distributed Mvela Resources 4.03 878,060,837 10.30% ordinary shares Total 100% Johannesburg Date: 6 May 2011 Financial adviser and sponsor to Mvela Resources J.P. Morgan Attorneys and tax advisers to Mvela Resources Bowman Gilfillan Date: 06/05/2011 16:34:01 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.
