VIL - Village Main Reef Limited - Lesego successfully completes positive

VIL - Village Main Reef Limited - Lesego successfully completes positive        
pre-feasibility study - project progresses to Definitive Feasibility Study      
Village Main Reef Limited                                                       
(formerly known as Village Main Reef Gold Mining Company (1934) Limited)        
(Registration number 1934/0057034/06)                                           
Share Code: VIL                                                                 
ISIN: ZAE000154761                                                              
("Village" or "the company")                                                    
LESEGO SUCCESSFULLY COMPLETES POSITIVE PRE-FEASIBILITY STUDY - PROJECT          
PROGRESSES TO DEFINITIVE FEASIBILITY STUDY                                      
Village is pleased to announce the successful conclusion of the pre-            
feasibility study ("PFS") of the company`s majority owned Lesego Platinum       
Project ("Lesego") situated near Burgersfort in the Limpopo province.           
In consultation with independent consultants DRA, the PFS confirms that the     
extraction of the high grade Merensky and UG2 is economically viable at         
shallower depths from between 700m to 2300m below surface.  Previously          
reported grades have been confirmed at 6.75g/t 3 PGE`s plus gold over           
widths of 1.08m for Merensky and 6.52g/t 3PGE`s plus gold over widths of        
1.26m for UG2.                                                                  
The PFS has met all the criteria set by the Industrial Development              
Corporation ("IDC") enabling Lesego to issue a drawdown notice to the IDC       
for an amount of R54 million, which will fully fund the proposed Definitive     
Feasibility Study ("DFS"). This final drawdown brings the IDC`s total           
investment in Lesego to R150 million and is its 3rd and final payment for       
its 23% effective stake in the project.                                         
On the strength of the results of this PFS, the Lesego board has resolved       
to embark on the completion of the DFS. The DFS phase will include an           
updated resource from 700m to 350m below surface and increase the indicated     
and measured resources of the project.                                          
Chief Financial Officer Marius Saaiman said, "We are excited to have            
reached another important milestone on the Lesego Project which continues       
to show remarkable consistency in grade, width and recoveries. Progressing      
with the DFS is the next step in unlocking shareholder value from this          
promising project."                                                             
10 January 2012                                                                 
Sponsor                                                                         
Java Capital                                                                    
Investor relations                                                              
Vestor                                                                          
Date: 10/01/2012 13:18:01 Supplied by www.sharenet.co.za                     
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