VIL - Village - Response to Section 189 process announced by Drdgold Limited

VIL - Village - Response to Section 189 process announced by Drdgold Limited    
VILLAGE MAIN REEF LIMITED                                                       
(Incorporated in the Republic of South Africa)                                  
(formerly known as Village Main Reef Gold Mining Company (1934) Limited)        
(Registration number 1934/005703/06)                                            
JSE Share Code: VIL   ISIN: ZAE000154761                                        
("Village" or the "company")                                                    
RESPONSE TO SECTION 189 PROCESS ANNOUNCED BY DRDGOLD LIMITED ("DRD")            
Village shareholders are referred to the joint announcement released on the     
Stock Exchange News Service of the JSE Limited ("SENS") by Village and DRD on 8 
November 2011 and cautionary announcements released on SENS dated 21 December   
2011 and 2 February 2012 respectively regarding Village`s non-binding expression
of interest in acquiring DRD`s entire 74% interest in Blyvooruitzicht Gold      
Mining Company Limited ("Blyvoor") ("the Blyvoor transaction").                 
Village shareholders are referred to the announcement issued by DRD on SENS     
today regarding the decision of the board of directors of Blyvoor to suspend all
further mining at Blyvoor`s low-grade Numbers 4 and 6 Shafts with immediate     
effect.                                                                         
Blyvoor`s management has given notice in terms of Section 189(3) of the Labour  
Relations Act to the National Union of Mineworkers and UASA of a 60-day process 
to seek consensus on the possible cutbacks.                                     
DRD has also notified Village of its decision to suspend mining as indicated    
above and each of DRD and Village is of the view that the Blyvoor transaction   
will not be negatively affected by such suspension.                             
Shareholders are advised that negotiations regarding the Blyvoor transaction are
still in progress and accordingly they should continue to exercise caution when 
dealing in the company`s securities, until a full announcement detailing the    
financial effects of the Blyvoor transaction is released.                       
6 February 2012                                                                 
Sponsor                                                                         
Java Capital                                                                    
Investor relations                                                              
Vestor                                                                          
Date: 06/02/2012 09:42:03 Supplied by www.sharenet.co.za                     
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