CLR - Clover board approves additional R277 million capital expenditure

CLR - Clover board approves additional R277 million capital expenditure         
programmes; R627 million total approved capex programme underway                
CLOVER INDUSTRIES LIMITED                                                       
(Incorporated in the Republic of South Africa)                                  
(Registration number 2003/030429/06)                                            
JSE ordinary share code: CLR    ISIN: ZAE000152377                              
("Clover" or "the Company" or "the Group")                                      
CLOVER BOARD APPROVES ADDITIONAL R277 MILLION CAPITAL EXPENDITURE PROGRAMMES;   
R627 MILLION TOTAL APPROVED CAPEX PROGRAMME UNDERWAY                            
Clover`s shareholders are advised that the Board of Directors (the "Board") has 
approved capital expenditure programmes to the value of R277 million in addition
to Project Cielo Blu, bringing the total amount of capex programmes to R627     
million. Business cases were presented and approved for projects including the  
relocation of Clover`s cheese manufacturing facilities to the coast, increased  
collection capacity in certain regions and various value added packaging        
initiatives.                                                                    
The various new projects will be funded from internal resources, including      
listing proceeds not earmarked for Project Cielo Blu. Some of the projects will 
commence immediately, whilst others will only start after the completion of     
certain phases of Project Cielo Blu.                                            
Johann Vorster, CEO for Clover commented:                                       
"The Board`s approval of R627 million in capex programmes (including Project    
Cielo Blu) is a major milestone following our listing and is indicative of      
Clover`s commitment to the South African economy in general and the dairy       
industry specifically.                                                          
Our low gearing and strong cash generation enables us to take advantage of      
opportunities to continuously address historical inefficiencies. It also allows 
us to act on innovative value-added initiatives to maintain our market          
leadership position. We expect to see the benefits of these improvements to come
through over the next thirty sixth months."                                     
14 June 2011                                                                    
Sponsor: RAND MERCHANT BANK (a division of FirstRand Bank Limited)              
Enquiries:                                                                      
College Hill        011 447 3030                                                
Frederic Cornet     083 307 8286                                                
Morne Reinders      082 815 1844                                                
Date: 14/06/2011 14:15:01 Supplied by www.sharenet.co.za                     
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