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GOLD ONE INTERNATIONAL LIMITED - Completion of the Ezulwini Acquisition

Release Date: 23/07/2012 08:45
Code(s): GDO
Wrap Text
Completion of the Ezulwini Acquisition

Gold One International Limited
Registered in Western Australia under the Corporations Act, 2001 (Cth)
Registration number ACN: 094 265 746
Registered as an external company in the Republic of South Africa
Registration number: 2009/000032/10
Share code on the ASX/JSE: GDO
ISIN: AU000000GDO5
OTCQX International: GLDZY
("Gold One" or the “company”)

Completion of the Ezulwini Acquisition

Gold One International Limited is pleased to announce that all conditions
precedent to the Sale of Shares and Claims Agreement (the “Acquisition
Agreement”) pertaining to the acquisition of 100% of the shares in the
capital of and shareholder claims against First Uranium Limited, the
holding company of Ezulwini Mining Company (Pty) Limited, for a purchase
price of US$ 70 million have been fulfilled. The acquisition was declared
unconditional on 20 July 2012 and is expected to be implemented on 1
August 2012 (“the Implementation Date”).

The purchase price of US$ 70 million will be settled by Gold One in cash
and US$ 5 million of the purchase price (“the deferred payment”) will be
held in Escrow in an interest bearing trust account in accordance with
the provisions of the Acquisition Agreement. The deferred payment is to
be held for a period of six months (“the Escrow period”) commencing on
the Implementation Date. Should there be no breach of a material warranty
during the Escrow period, then the deferred payment will be released to
First Uranium Corporation at the end of the Escrow period.

Gold One President and CEO Neal Froneman comments:
“I am delighted to announce that the acquisition of the Ezulwini mine
from First Uranium is unconditional. This acquisition is aligned to our
business strategy of value-accretive growth and is a key component in the
realization of synergies across the Cooke Underground and Randfontein
Surface Operations. With immediate access to Ezulwini’s uranium
processing facility, we can now look towards unlocking the value of our
joint underground resources and begin capitalising on our gold and
uranium co-product strategy in the near term. The Cooke Operations’
management team with their extensive knowledge of the Ezulwini ore body,
people and processes are well prepared for the integration of Ezulwini
into the Cooke Underground Operations.”

ENDS
Johannesburg
23 July 2012

Transaction Sponsor and JSE Sponsor
Macquarie First South Capital (Pty) Limited

Issued by Gold One International Limited
www.gold1.co.za

For and on behalf of Gold One:

Corporate Advisor:
Qinisele Resources (Pty) Limited
Australian Corporate Advisor:
Hartleys Limited


South African Legal Advisor:
Edward Nathan Sonnenbergs Incorporated

Australian Legal Counsel:
Ashurst LLP

Canadian Legal Counsel:
Stikeman Elliot LLP


Neal Froneman
President and CEO
+27 11 726 1047 (office)
+27 83 628 0226 (mobile)
neal.froneman@gold1.co.za

Grant Stuart
Investor Relations
+27 10 591 5219 (office)
+27 82 602 5992 (mobile)
grant.stuart@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 dual listed mid-tier mining group with gold operations and
gold and uranium prospects across Southern Africa. Gold One remains
focused on developing and mining low technical risk, high margin precious
metal resources in diversified jurisdictions. The company’s flagship
Modder East gold mine, commissioned in 2009, distinguishes itself from
most other gold mines in South Africa owing to its shallow nature (300 to
500 metres below surface) and continues to ramp up production, having
produced 123,179 ounces in 2011.

At the beginning of 2012, the group expanded further with the acquisition
of Rand Uranium (Pty) Limited consisting of the Cooke Underground
Operations and the Randfontein Surface Operations located in the West
Rand, 30 kilometres from Johannesburg. The Cooke Underground Operations
continue to deliver in line with expectations and are currently the
subject of a turnaround intervention. Through Gold One’s purchase of
Rand Uranium (Pty) Limited, the group has also acquired one of the
world’s most advanced uranium projects, which envisages recovering
uranium, gold and sulphur from the Cooke Tailings Dam and underground
ores.
The Gold One group is majority-owned by a consortium comprising Baiyin
Non-Ferrous Group Co. Limited, the China-Africa Development Fund, and
Long March Capital Limited and has an issued share capital of
1,416,527,115 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.

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