VIL - Village - Welcomes the announcement by First Uranium Corporation

VIL - Village - Welcomes the announcement by First Uranium Corporation          
concerning its shareholders` approval for the disposal of Mine Waste            
Solutions (Pty) Ltd and Ezulwini Mining Company (Proprietary) 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")                                                    
VILLAGE WELCOMES THE ANNOUNCEMENT BY FIRST URANIUM CORPORATION ("FIU")          
CONCERNING ITS SHAREHOLDERS` APPROVAL FOR THE DISPOSAL OF MINE WASTE            
SOLUTIONS (PTY) LTD ("MWS") AND EZULWINI MINING COMPANY (PROPRIETARY) LIMITED   
("EZULWINI")                                                                    
Village refers its shareholders to the announcement made by FIU in relation     
to the approval of all the required resolutions to dispose of its interest in   
MWS and Ezulwini (the "transactions") at its shareholders meeting held          
yesterday in Toronto. As a result of the FIU shareholders approving the         
transactions, Village will receive the full face value of approximately R392m   
due to it under the Secured Convertible Rand Denominated Rand Notes in MWS      
("MWS Notes"), within the next few weeks. Village also expects a first pay      
out of about R20m in lieu of its remaining 5.7% investment in the ordinary      
shares held in FIU during the same time period.                                 
Joint CEO Marius Saaiman commented, "Village welcomes this decision. The        
outcome releases the locked up value in the FIU investments for Village         
shareholders, strengthens our balance sheet and further enhances our            
investment case."                                                               
The board of Village will meet in due course to consider the most efficient     
way in which to return surplus cash to Village shareholders. This is in line    
with Village`s stated strategy. The board intends to strike a balance between   
internal funding needs, the expectations of shareholders for a special cash     
dividend and the option of doing a share buy back as and when appropriate       
circumstances arise. The company currently has a general authority from         
shareholders to buy-back up to 20% of its own shares, subject to the            
Companies Act and the JSE Listing Requirements.                                 
Any formal decision by the board will be communicated to shareholders.          
14 June 2012                                                                    
Contacts:                                                                       
Village Joint CEO : Marius Saaiman : msaaiman@villagemainreef.co.za :           
011 274 4603                                                                    
Vestor : Media and Investor Relations : Louise Brugman :                        
louise@vestor.co.za : 011 787 3015 : 083 504 1186                               
Sponsor                                                                         
Java Capital                                                                    
Date: 14/06/2012 07:35:22 Supplied by www.sharenet.co.za                     
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