SIM - Simmer & Jack Mines, Limited - Apportionment ratio for tax purposes

SIM - Simmer & Jack Mines, Limited - Apportionment ratio for tax purposes       
Simmer & Jack Mines, Limited                                                    
(Registration number 1924/007778/06)                                            
Share Code: SIM                                                                 
ISIN: ZAE0000067220                                                             
("Simmers" or the "company")                                                    
APPORTIONMENT RATIO FOR TAX PURPOSES                                            
Simmers shareholders are referred to the circular dated 2 March 2011 (the       
"circular") and the subsequent announcements released on the Securities         
Exchange News Service relating to:                                              
the disposal by Simmers of the majority of its assets to Village Main Reef      
Limited ("Village") in consideration of the issue by Village of Village         
shares to Simmers (the "Village consideration shares") and the assumption by    
Village of certain liabilities of Simmers; and                                  
the subsequent unbundling of the Village consideration shares to Simmers        
shareholders.                                                                   
The purpose of this announcement is to notify Simmers shareholders of the       
apportionment ratio in which the expenditure incurred and/or the valuation of   
their Simmers shares ("Tax Expenditure") must be allocated between their        
unbundled Village consideration shares and their retained Simmers shares for    
purposes of section 46 of the Income Tax Act (the "apportionment ratio").       
The apportionment ratio for a Simmers shareholder is 5.2176% in respect of      
its retained Simmers shares and 94.7824% in respect of its unbundled Village    
consideration shares, based on the closing share prices of Simmers and          
Village on Monday, 27 June 2011 (being the date of the unbundling of the        
Village consideration shares) of R0.03 and R1.15, respectively.  The            
apportionment ratio is to be used, after the unbundling, to apportion the Tax   
Expenditure between the Simmers shares held after the unbundling and the        
Village consideration shares received in terms of the unbundling. The           
potential South African taxation considerations for Simmers shareholders are    
set out in Annexure 5 of the circular.  Simmers shareholders are, however,      
advised in all circumstances to seek their own advice regarding taxation.       
Johannesburg                                                                    
29 June 2011                                                                    
Legal advisor                                                                   
Bowman Gilfillan Inc                                                            
Transaction sponsor                                                             
Java Capital                                                                    
Sponsor to Simmers                                                              
RAND MERCHANT BANK (a division of FirstRand Bank Limited)                       
Date: 29/06/2011 17:44:01 Supplied by www.sharenet.co.za                     
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