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Clarification of Media Coverage Pertaining to Modder East and Grootvlei
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")
Clarification of Media Coverage Pertaining to Modder East and Grootvlei
In light of statements published recently by the media concerning
Gold One International Limited (ASX and JSE: GDO), the company’s Modder East Operation, and a mass
meeting held on 30 August 2012 at the Grootvlei Mine, the company wishes to place on record the following
facts.
Modder East
The unlawful industrial action that occurred at Modder East from 3 June 2012 was initially motivated by a
demand from the Professional Allied Workers and Transport Union (“PTAWU”), which had minority
membership at the operation, to be granted organisational rights by Gold One. The demand for
organisational rights later expanded to include a number of demands on conditions of employment, inter
alia, basic wages. Gold One has an existing three year wage agreement with its employees that only
terminates in December 2012.
With regard to the media allegations that the dismissal of the workers was unfair, the company places on
record that on 4 June 2012 it obtained a South African Labour Court ruling that declared the industrial action
unprotected and which interdicted PTAWU from inciting workers to participate in the unlawful action. On 26
July 2012, the interim Labour Court interdict was discharged by reason of the fact that the unlawful action
had already ceased on 11 June 2012 when the workers were dismissed, and therefore could no longer be
confirmed. As such the statements in the media that the discharge of the interdict had the effect of
declaring the industrial action protected are without any substance in law and do not have any effect on the
unlawful nature of the June strike, nor on the dismissal of the workers who participated in the strike action.
A case of unfair dismissal was referred to the Commission for Conciliation, Mediation and Arbitration
(“CCMA”) by PTAWU on 26 June 2012. A certificate of non-resolution was issued on 17th July 2012, and
notwithstanding the fact that more than six weeks have elapsed, the company is not aware of any further
referrals having been made.
A High Court order was obtained by the company on 13 June 2012 interdicting violent protest at Modder
East, which order was made final on 27 June 2012. PTAWU, under whose auspices the violent protest action
took place, was directed to pay the costs of the High Court application. Gold One is in the process of
pursuing a compensation claim against PTAWU for production losses and for damages to company property.
Following the dismissal of the 1,044 employees and prior to engaging contract mining services at Modder
East to facilitate production build up, the company provided dismissed workers with an opportunity to
undergo a re-interview process allowing them to be potentially re-hired. To date, of the 1,044 workers that
were dismissed, approximately 500 have attended the interview process and subsequently nearly 300
employees have been re-hired at the operation.
The remaining dismissed employees have on several occasions been informed that the offer to attend an
interview remains open. Production at Modder East will continue to be normalised through existing contract
mining.
Regarding allegations of police brutality suffered by dismissed workers, Gold One is not aware of any such
brutality having occurred. The company has previously reported that the South African Police Service was
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required at Modder East on 12 June 2012 to disperse dismissed workers who perpetrated violence and
blocked the entrance to the mine. Since the June unlawful industrial action Gold One’s own security
personnel have remained stationed at Modder East, as the company has received numerous reports of on-
going intimidation and violence against its current employees. In recent weeks the Company has been made
aware of at least four attacks on its employees, two of which were fatal and a third which resulted in the
hospitalisation of an employee. Gold One has offered a large monetary reward for the arrest of the
perpetrators and is continuing to work closely together with the South African Police Service to investigate
these incidents.
At the time of this media release being published the company had not received any formal notification from
any recognised organisation that workers at Modder East will embark on industrial action on Monday 3
September 2012, as was alleged by the media this week. As such production at Modder East will continue as
normal and any such protest or work stoppage will be unlawful. The safety of employees remains a priority
and the company is working closely with the South African Police Service to ensure that contingencies to
protect employees are in place.
In addition the company has met with the Department of Mineral Resources and has addressed a letter to
the relevant government authorities responsible for maintaining law and order and ensuring appropriate
working environments for normal business activities, outlining the circumstances and threats that the
company has received.
Pamodzi East Rand Assets
Gold One’s acquisition of selected Pamodzi East Rand surface assets, first announced on 17 April 2012, has
not yet been concluded and several conditions precedent to the transaction are still outstanding. According
to the transaction agreement, the company, in the interim, is legally responsible to occupy and protect the
surface assets, being the Grootvlei Four Shaft and the metallurgical plant complex, which includes the
general offices.
As part of the transaction, the company provided its commitment to both Solidarity and NUM that, although
it will not be able to offer employment opportunities to ex-Pamodzi employees in the near-term, Gold One
will give employment preference to former Pamodzi Gold employees upon the future commencement of
any production within the historical Pamodzi Gold assets.
Due to the legal process associated with the provisional liquidation, the company is unable to influence the
outcome of any such proceedings as they pertain to ex-Pamodzi Gold employees. Despite the outstanding
conditions precedent associated with the transaction, however, Gold One is continuing to engage with
various stakeholders relating to possible employment initiatives. To date the company has provided
temporary employment for 10 employees at Grootvlei, and has interviewed all ex-Pamodzi Gold employees
with a view to ensuring preferential employment relating to future employment opportunities at either
Grootvlei or, where appropriate, at Gold One’s existing operations. With regards to the latter, the company
is aware that so far at least 50 ex-Pamodzi Gold employees have been hired either directly or indirectly by
Gold One.
Gold One CEO and President Neal Froneman comments: “While it is unfortunate that there has been much
misinformation regarding Gold One in the press recently, we remain committed to the long term
sustainability of our business and continued growth in South Africa. This includes the protection of our
employees and the fostering of sustainable relationships with stakeholder bases. Where others seek to
unlawfully disrupt our operations and harm our employees, we will continue to seek the appropriate
recourse by law, as we’ve done in the past.”
ENDS
Johannesburg
3 September 2012
Sponsor
Macquarie First South Capital (Pty) Limited
Issued by Gold One International Limited
www.gold1.co.za
Neal Froneman President and CEO +27 11 726 1047 (office) +27 83 628 0226 (mobile) neal.froneman@gold1.co.za
Grant Stuart VP Investor Relations +27 11 726 1047 (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) andcontinues 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.
Forward-Looking Statement
This release includes certain forward-looking statements and forward-looking information. All statements other than statements of
historical fact included in this release including, without limitation, statements regarding future plans and objectives of Gold One
International Limited are forward-looking statements (or forward-looking information) that involve various risks, assumptions and
uncertainties. There can be no assurance that such statements will prove to be accurate and actual values, results and future events
could differ materially from those anticipated in such statements. Important factors could cause actual results to differ materially
from Gold One’s expectations. Such factors include, among others: the actual results of exploration activities; actual results of
reclamation activities; the estimation or realisation of mineral reserves and resources; the timing and amount of estimated future
production; costs of production; capital expenditures; costs and timing of the development of Modder East and new deposits;
availability of capital required to place Gold One’s properties into production; the ability to obtain or maintain a listing in South
Africa, Australia, Europe or North America; conclusions of economic evaluations; changes in project parameters as plans continue to
be refined; future prices of gold and other commodities; possible variations in ore grade or recovery rates; failure of plant,
equipment or processes to operate as anticipated; accidents; labour disputes and other risks of the mining industry; delays in
obtaining governmental approvals, permits or financing or in the completion of development or construction activities, economic
and financial market conditions; political risks; Gold One’s hedging practices; currency fluctuations; title disputes or claims
limitations on insurance coverage. Although Gold One has attempted to identify important factors that could cause actual results to
differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended.
Any forward-looking statements in this release speak only at the time of issue. There can be no assurance that such statements will
prove to be accurate as actual values, results and future events could differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on forward-looking statements. Gold One does not undertake to update any
forward-looking statements that are included herein, or revise any changes in events, conditions or circumstances on which any such
statement is based, except in accordance with applicable securities laws and stock exchange listing requirements.
Date: 03/09/2012 07:10:00 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
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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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