Financial effects and withdrawal of cautionary 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”) FINANCIAL EFFECTS AND WITHDRAWAL OF CAUTIONARY INTRODUCTION Shareholders are referred to the announcement released on SENS on 18 March 2013, as well as the announcement released on SENS on 02 May 2013, whereby shareholders were advised that Village has entered into a binding funding agreement (the “transaction”) with Continental Coal Limited (“Continental”). Village is happy to inform shareholders that it has received the necessary approval from the South African Reserve Bank, which was the only outstanding condition to the transaction. FINANCIAL EFFECTS The unaudited pro forma financial effects (the “financial effects”) of the transaction on Village’s earnings per share, headline earning per share, diluted earnings per share and diluted headline earnings per share for the six months ended 31 December 2012 are set out below. The financial effects of the transaction on Village’s net asset value and net tangible asset value per share are not significant (less than 3%) and therefore have not been disclosed. The financial effects are the responsibility of the directors of Village and have been prepared for illustrative purposes only, to provide information on how the transaction may have impacted on the historical financial results of Village for the six months ended 31 December 2012. These financial effects have not been reviewed by the company’s auditors. Due to its nature, the financial effects may not give a fair reflection of Village’s financial position, changes in equity, results of operations and cash flows subsequent to the transaction. The table below reflects the financial effects of the transaction on a Village shareholder: Before the transaction After the transaction % (cents) (cents) change Earnings per share 5.92 5.73 -3.15% Headline earnings per share 5.90 5.72 -3.16% Diluted earnings per share 5.79 5.60 -3.15% Diluted headline earnings per share 5.77 5.59 -3.16% Notes and assumptions: - The figures set out in the “Before the transaction” column above have been extracted from reviewed interim results for the 6 months ended 31 December 2012 (“the interim results”). - The figures set out in the "After the transaction" column above reflect the pro forma effects on the interim results resulting from the acquisition of 19.9% of the equity of Continental. - The acquisition is assumed to have been implemented on 1 July 2012 for earnings and headline earnings per share purposes and on 31 December 2012 for net asset and net tangible 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% per annum. - Where applicable an exchange rate of R9.69 to the Australian Dollar has been used, being the rate as at 28 March 2013. WITHDRAWAL OF CAUTIONARY Following the publication of the terms and financial effects of the transaction caution is no longer required to be exercised by shareholders when dealing in their securities in the company. Johannesburg 3 May 2013 Sponsor Java Capital Date: 03/05/2013 08:00:00 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 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 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.