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GDO - Gold One International Limited - Operational Update

Release Date: 29/11/2011 07:06
Code(s): GDO
Wrap Text

GDO - Gold One International Limited - Operational Update Gold One International Limited Registered in Western Australia under the Corporations Act, 2001 (Cth) with registration number ACN: 094 265 746 (Registered in South Africa as an external company with registration number 2009/000032/10) ISIN: AU000000GDO5 Share Code on the ASX/JSE: GDO OTCQX International: GLDZY ("Gold One" or the "company") OPERATIONAL UPDATE Gold One International Limited is pleased to provide the following operational update to shareholders. This information update is provided to ensure that the market is fully informed of operational developments given the recent announcement dated 28 November, 2011, that the A$ 0.55 cash offer per share is now free of conditions and has been declared unconditional ("Unconditional Announcement"). The company is pleased to announce that production for the December 2011 quarter up to 25 November, 2011, stands at 23,742 ounces of gold. Production for the year to date therefore now stands at 113,569 ounces, and places the company well on track to exceed its production target of 120,000 ounces for 2011. The continued build up at Modder East is progressing well and a solid foundation has been set for further build up in production during 2012. This operational update is specifically relevant given the Unconditional Announcement released yesterday. Under the offer terms announced on 16 May, 2011, should Gold One not achieve its 2011 production target for any reason other than those matters outside of its control, BCX Gold Investment Holdings Limited ("BCX Gold"), the Consortium`s special purpose vehicle, will be entitled to be issued with a number of adjustment subscription shares. The precise number of shares is to be calculated in accordance with schedule 5 to the transaction implementation agreement which governs the offer and the minimum A$ 150 million capital injection into Gold One ("the Transaction"). Gold One remains confident that the adjustment subscription clause will not become effective given that annual production for 2011 is anticipated to exceed 120,000 ounces. As was announced in the September 2011 Quarterly Report, Gold One took over daily management of the Cooke Underground Operations and Randfontein Surface Operations during September 2011. A complete replanning exercise for the Cooke Underground Operations, incorporating Gold One`s turnaround strategy, is being undertaken. The company is currently also completing its annual budgeting cycle for the Modder East Operations. As a result, Gold One will provide a comprehensive production update and guidance for 2012 during the beginning of the new year. The company`s exploration projects are progressing as anticipated. Most notably, the drilling of the extension of the eastern payshoot at Ventersburg (refer to the September 2011 Quarterly Report for further details) was completed during the December 2011 quarter and these results have been considered in an updated mineral resource estimate for the project, which is currently being audited by an independent consulting firm and will be released during the March 2012 quarter. These resources will also underpin an updated pre-feasibility study, due for completion during December 2011. Gold One President and Chief Executive Officer Neal Froneman comments: "Our production output to date reflects the commitment and excellence of Gold One`s operational team. The Modder East team has ensured the operation has sufficient mining flexibility to attain our 2011 production forecast and also to provide us with a solid base on which to begin the new year. I look forward to the incorporation of the Cooke Underground and Randfontein Surface operations into our future production forecasts." Offer Now Unconditional Gold One would also like to refer shareholders to the Unconditional Announcement released yesterday, which outlines the following: Gold One is pleased to announce that BCX Gold has informed the company that: - It has obtained the requisite approvals to proceed with the Transaction from the National Development and Reform Commission, the Ministry of Commerce and the State Administration for Foreign Exchange of the People`s Republic of China. - Accordingly, it has freed the offer from all defeating conditions that had not been fulfilled, including a waiver of the condition that the Consortium obtain a minimum 60% interest in Gold One on a fully diluted basis. This now clears the way for the Consortium to complete the Transaction in a timely manner. The offer is scheduled to close at 7:00 pm AEDT/10:00 am CAT on Thursday, 15 December, 2011, unless it is extended. However, shareholders who intend to tender into the offer are encouraged to do so on or before Wednesday, 7 December 2011. A full timetable outlining the major dates is available on the Gold One website, www.gold1.co.za Gold One President and Chief Executive Officer Neal Froneman comments: "I am very pleased that the requisite Chinese approvals have been obtained and that all remaining conditions to the offer have been waived. We look forward to concluding the Transaction as soon as possible. To assist the company in expediting the Transaction, and so that Gold One can receive the subscription proceeds before the end of the year, I encourage those shareholders who wish to accept into the offer to do so on or before Wednesday, 7 December, 2011, to ensure that they receive their offer consideration before the end of the year." The Board of Gold One reaffirms its recommendation that shareholders who wish to realise, in whole or in part, their investment in Gold One for cash accept the offer in the absence of a superior proposal. Johannesburg 29 November 2011 JSE Sponsor Macquarie First South Capital (Pty) Limited Issued by Gold One International Limited www.gold1.co.za On behalf of Gold One: 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`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 809,326,610 shares This news release does not constitute investment advice. Neither this news release nor the information contained in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of securities in any jurisdiction. Date: 29/11/2011 07:06:55 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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