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SIM - Simmer and Jack Mines, Limited - Conclusion of a second forward gold sale agreement and the repurchase and cancellation of notes issued under Simmers` ABSA high yield note programme Simmer and Jack Mines, Limited (Incorporated in the Republic of South Africa) (Registration number 1924/007778/06) Share code: SIM ISIN Code: ZAE000006722 ("Simmers") CONCLUSION OF A SECOND FORWARD GOLD SALE AGREEMENT AND THE REPURCHASE AND CANCELLATION OF NOTES ISSUED UNDER SIMMERS` ABSA HIGH YIELD NOTE PROGRAMME Simmers is pleased to announce that its subsidiary, Buffelsfontein Gold Mines Limited ("Buffels"), has raised USD25 million pursuant to a forward gold sale agreement with Deutsche Bank AG ("DB"). This is the second such agreement entered into between DB and Buffels. In terms of the agreement between Buffels and DB, Buffels will deliver 3,600 ounces of physical gold a month to DB for an 18 month period, starting November 2011. Simmers` physical gold deliveries benefit from a gold floor price of USD1,100 per ounce. In addition, Simmers will participate in any additional upside from the spot price on the day of delivery up to a maximum agreed price per ounce, which price is above the current spot price of gold. Buffels has also made an intra-group loan to Simmers of R159 million, which Simmers has used to repurchase and cancel all of the notes, with a capital value of R155 million, issued to investors under the ABSA high yield medium term note programme. Finally, Simmers and Village Main Reef Limited ("Village") have entered into an agreement for the cession and assignment by Simmers of, among other things, all its rights and obligations under the intra-group loan referred to above to Village with effect from the disposal by Simmers of the majority of its assets to Village pursuant to the proposed transaction concluded by Simmers and Village. Simmers and Village have entered into the cession and assignment agreement so that Simmers will be able to fully implement the proposed transaction concluded by Simmers and Village. Johannesburg 08 June 2011 Sponsor RAND MERCHANT BANK (A division of FirstRand Bank Limited) For further information, please contact: Marius Saaiman Mobile +27 82 45 83 420 E-mail Saaiman@simmers.co.za Date: 08/06/2011 14:30:01 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.
