MINE RESTORATION INVESTMENTS LTD - Update on funding of anthracite briquetting project T

Update on funding of anthracite briquetting project T

MINE RESTORATION INVESTMENTS LIMITED
(formerly Capricorn Investments Holdings Limited)
Incorporated in the Republic of South Africa
Registration number 1987/004821/06
Share Code: MRI
ISIN Code: ZAE000164562
("MRI" or "the Company")


UPDATE   ON   FUNDING     OF   ANTHRACITE   BRIQUETTING   PROJECT
(“Briquetting Project”)


Shareholders are referred to the update announcement, dated
23 January 2013, wherein they were advised, inter alia, that
due to a number of factors, full production of the Briquetting
Project was delayed until June 2013, which delay would impact
on the costs of the completion of the Briquetting Project.


In terms of the existing funding agreement dated 14 June 2012
(“Funding Agreement”), Watermark Global Plc (“Watermark”) and
Trinity Asset Management Proprietary Limited (“Trinity”), MRI’s
two major shareholders, agreed to underwrite a shortfall to the
maximum value of R4 000 000.00 in the working capital of MRI
for the period ending 30 June 2013.


In accordance with the Funding Agreement, MRI and Watermark
have entered into a loan agreement on 8 March 2013 (“Loan
Agreement”) in terms of which Watermark shall lend the amount
of R1 037 496 together with interest thereon (“Loan”) to MRI
until 15 December 2013 (“Maturity Date”).    In terms of the Loan
Agreement Watermark has the right, at any time prior to the
Maturity Date, to convert the Loan into new MRI ordinary shares
(“MRI shares”) at a conversion price equal to the weighted
average traded    price of MRI’s   shares measured   over the   30
business days prior to the date on which Watermark elects to
effect the conversion (“Election”) (“Conversion”). As the
Election by Watermark may, in terms of the Listings
Requirements of the JSE Limited (“JSE”), result in an issue of
MRI shares to a related party, the Conversion will be subject
to all regulatory approvals, including approval by the JSE and
shareholders of MRI, to the extent that it may be required at
the time of the Election.


Johannesburg
15 March 2013


Corporate  Advisor: AfrAsia Corporate Finance Proprietary
Limited


Designated Advisor:  Sasfin Capital (a division of Sasfin Bank
Limited)

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