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 a further 29 585 327 of its own ordinary shares
(“shares”) through its wholly owned subsidiary Buffelsfontein Gold Mines Limited, 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 a further 2.93303% of the company’s issued share capital since
the repurchase announcement released on SENS on 18 January 2013 (comprising a total of 6.000086% of the
company’s issued share capital).

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 29 585 327 shares will be held as
treasury shares after the repurchases.

DETAILS OF THE FURTHER REPURCHASES

The further 29 585 327 shares were repurchased for an aggregate price of R35 972 703.59 in the following tranches:

-   3 976 382 on 17 January 2013 at 122.55 cents per share;
-   4 216 924 on 18 January 2013 at 123.03 cents per share;
-   332 104 on 21 January 2013 at 123.98 cents per share;
-   618 338 on 22 January 2013 at 125.19 cents per share;
-   2 009 078 on 23 January 2013 at 128.00 cents per share;
-   7 000 000 on 24 January 2013 at 128.00 cents per share;
-   2 950 279 on 28 January 2013 at 126.41 cents per share;
-   1 603 291 on 28 February 2013 at 105.42 cents per share;
-   1 236 617 on 1 March 2013 at 106.89 cents per share;
-   2 587 243 on 4 March 2013 at 111.10 cents per share;
-   866 071 on 5 March 2013 at 114.91 cents per share; and
-   2 189 000 on 6 March 2013 at 118.00 cents per share.

The company may repurchase a further 141 216 358 shares (that is a further 13.99991% 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 the earnings per share, headline earnings per share, net asset
value per share and tangible net 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 Village’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 cumulative
                                                    repurchases          repurchases          %
                                                    (cents)              (cents)              change
Earnings per share                                  34.73                36.77                5.9%
Headline earnings per share                         26.80                28.26                5.4%
Diluted earnings per share                          34.48                36.49                5.9%
Diluted headline earnings per share                 26.60                28.05                5.4%
Net asset value per share                           178.89               182.68               2.1%
Tangible net asset value per share                  175.89               179.49               2.0%


NOTES AND ASSUMPTIONS
-   The figures set out in the “Before the repurchases” column above have been extracted from the company’s
    audited annual results for the 12 months ended 30 June 2012 (“the annual results”).
-   The figures set out in the "After cumulative 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 17 January 2013 and 6 March 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.

8 March 2013


Sponsor

Java Capital

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