VILLAGE MAIN REEF LIMITED - General Repurchase of Shares

General Repurchase of Shares

VILLAGE MAIN REEF LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1934/005703/06)
Share Code: VIL ISIN: ZAE000154761
(“Village” or “the company”)

GENERAL REPURCHASE OF SHARES

Shareholders are advised that Village has cumulatively repurchased 30 937 210 of its own ordinary shares
(“shares”) through its wholly owned subsidiary Buffelsfontein Mines Limited (“Buffels”), in terms of a general
authority granted by Village shareholders on 30 November 2012 which repurchases have been funded from the
company’s available cash resources. These repurchases comprise 3.06705% of the company’s issued share
capital since the granting of the general authority.

The repurchases were effected through the order book operated by the JSE trading system without any prior
understanding or arrangement between the company and the counter parties. The 30 937 210 shares are to be
held as treasury shares after the repurchase.

DETAILS OF THE REPURCHASES

The shares were repurchased for an aggregate price of R36 942 453.27 in the following tranches:

-   722 178 on 6 December 2012 at 113.89 cents per share;
-   417 054 on 7 December 2012 at 114.82 cents per share;
-   200 000 on 11 December 2012 at 118.85 cents per share;
-   23 748 837 on 27 December 2012 at 118.00 cents per share;
-   249 672 on 27 December 2012 at 116.48 cents per share;
-   204 625 on 3 January 2013 at 121.00 cents per share;
-   235 000 on 8 January 2013 at 121.00 cents per share;
-   30 417 on 9 January 2013 at 121.00 cents per share;
-   563 450 on 10 January 2013 at 121.00 cents per share;
-   658 342 on 11 January 2013 at 120.99 cents per share;
-   200 093 on 14 January 2013 at 120.00 cents per share;
-   480 108 on 15 January 2013 at 118.19 cents per share; and
-   3 227 434 on 16 January 2013 at 118.59 cents per share.

The company may repurchase a further 170 801 685 shares (that is a further 16.93295% of the number of shares
in issue as at the date the general authority was granted) in terms of that general authority, which is valid until
the company’s next annual general meeting.

OPINION OF THE BOARD

The board of Village has considered the effect of the repurchases and is of the opinion that, for a period of
12 months following the date of this announcement:

-     the company and the group will be able, in the ordinary course of business, to repay their debts;
-     the assets of the company and the group, will be in excess of the liabilities of the company and the group;
-     the company's and the group’s ordinary capital and reserves will be adequate for ordinary business
      purposes; and
-     the company and the group will have sufficient working capital for ordinary business purposes.
FINANCIAL EFFECTS OF THE REPURCHASES

The unaudited pro forma financial effects as set out below have been prepared to assist Village shareholders in
assessing the cumulative impact of the repurchases on an earnings per share, headline earnings per share, net
asset value per share and net tangible asset value per share of the company as at and for the twelve months
ended 30 June 2012.

These unaudited pro forma financial effects have been prepared for illustrative purposes and because of their
nature, may not fairly present Villages’s financial position after the repurchases.

The directors of Village are responsible for the preparation of the financial effects, which have not been
reviewed by the company’s auditors.

                                               Before the         After the
                                               repurchases        repurchases        %
                                               (cents)            (cents)            change
Earnings per share                             34.73              35.74              2.9%
Headline earnings per share                    26.80              27.52              2.7%
Diluted earnings per share                     34.48              35.48              2.9%
Diluted headline earnings per share            26.60              27.32              2.7%
Net asset value per share                      178.89             180.77             1.1%
Tangible net asset value per share             175.89             177.67             1.0%


NOTES AND ASSUMPTIONS
-   The figures set out in the “Before the repurchases” column above have been extracted from audited
    annual results for the 12 months ended 30 June 2012 (“the annual results”).
-   The figures set out in the "After the repurchases" column above reflect the pro forma effects on the
    annual results resulting from the general repurchases of shares effected through the open market between
    and including 6 December 2012 and 16 January 2013.
-   The repurchases are assumed to have been implemented on 1 July 2011 for earnings and headline
    earnings per share purposes and on 30 June 2012 for net asset and tangible net asset value per share
    purposes.
-   It is assumed that the repurchases were funded out of the available cash resources of the company with an
    after tax interest cost of 5.2% per annum.

18 January 2013


Sponsor

Java Capital

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