PAMODZI GOLD LIMITED - Gold One and Goliath Gold Receive East Rand Prospecting Licenses and Acquisition of Selected Pamodzi Surface Assets

Release Date: 08/08/2013 15:37
Code(s): PZG
 
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Gold One and Goliath Gold Receive East Rand Prospecting Licenses and Acquisition of Selected Pamodzi Surface Assets

PAMODZI GOLD LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2002/013039/06)
Share code: PZG
ISIN: ZAE000088563
("Pamodzi Gold" or "the Company")




GOLD ONE INTERNATIONAL LIMITED                         GOLIATH GOLD MINING LIMITED
Registered in Western Australia under the              Incorporated in the Republic of South Africa
Corporations Act 2001 (Cth)                            (Registration number 1933/004523/06)
Registration number ACN: 094 265 746                   Share code: GGM
Registered as an external company in the Republic of   ISIN: ZAE000154753
South Africa                                           ("Goliath Gold")
Registration number: 2009/000032/10
Share code on the ASX/JSE: GDO
ISIN: AU000000GDO5
OTCQX International: GLDZY
("Gold One")

Media Release

Pamodzi Gold shareholders are referred to the below announcement, which was released by Gold One and
Goliath Gold on 7 August 2013.

 Gold One and Goliath Gold Receive East Rand Prospecting Licenses
    and Acquisition of Selected Pamodzi Surface Assets is Made
                           Unconditional

JOHANNESBURG – 7 August 2013. Gold One International Limited (ASX and JSE: GDO) and Goliath Gold
Mining Limited (JSE: GGM) are pleased to advise that two of three prospecting applications pertaining to the
acquisition agreement to purchase the underground deposits and selected surface assets of Pamodzi Gold
East Rand (Pty) Limited (“Pamodzi”) have been granted. Furthermore, the acquisition of the selected surface
assets has been made unconditional.

On 17 April 2012 Gold One announced that the company, together with Goliath Gold (in which Gold One
holds a 72% controlling interest), had entered into an ZAR 70 million Acquisition Agreement with the joint
provisional liquidators representing Pamodzi and its subsidiaries (“the Sellers”) to acquire the Grootvlei
Proprietary Mines Limited (“Grootvlei”) treatment plant, selected Grootvlei surface assets (including
primarily the Grootvlei office complex), historical geological data, and the right to apply for three
prospecting rights. Gold One was to acquire the treatment plant and surface assets together with the right
to apply for a prospecting right over the down-dip extensions to Gold One’s Modder East Operations for ZAR
65 million. Goliath Gold was to obtain prospecting rights and acquire historical mining and geological data


                                                                                                  
from Consolidated Modderfontein Mines 1979 Limited, Consolidation Modderfontein Mines Limited, Nigel
Gold Mining Company (Pty) Limited and Grootvlei for ZAR 5 million.

The original transaction has been made unconditional through an amendment to the Acquisition Agreement
to comprise:
    -   An initial payment of ZAR 35 million for the selected surface assets and historical mining and
        geological data, which is now unconditional. The balance of the purchase price relating to selected
        surface assets and historical mining and geological data is ZAR 28 million – a deposit of ZAR 7 million
        having already been paid – and is payable on transfer of the immovable property.
    -   A ZAR 35 million payment for the prospecting rights, which will only be payable in the event that the
        third prospecting right is granted within 30 days of the fulfillment of the last condition precedent,
        which must be fulfilled on or before 31 August 2013. Should the final prospecting right not be
        granted, then Gold One and Goliath Gold will be exempt from payment of the ZAR 35 million.

Gold One CFO and Acting CEO Christopher Chadwick comments: “I am pleased that we have been able to
progress the agreement and outstanding conditions with the joint provisional liquidators and bring some
conclusion to a transaction that was announced over a year ago. The closure of the transaction with respect
to the sale assets will enable the company to take ownership of the surface assets and commence with
prospecting activities on the down dip extensions to our Modder East Mining Right.”

Goliath Gold CEO Richard Stewart comments: “This is a substantial step for Goliath Gold in terms of further
consolidating the East Rand Basin. We are looking forward to applying our geological and exploration
experience together with the knowledge developed over the past years in the East Rand to the historical
Pamodzi assets, and continuing the journey of ultimately restoring gold mining in the greater East Rand. We
remain confident that the final prospecting application will be granted to Goliath Gold in the near term.”

Gold One and Goliath Gold’s rationale for the acquisition can be referenced in the joint media release titled
‘Gold One and Goliath Gold to Acquire the Pamodzi East Rand Underground Deposits and Selected Assets for
ZAR 70 million’, released on 17 April 2012 on both companies’ websites (www.gold1.co.za and
www.goliathgold.co.za) and the respective news services of the JSE Limited and the ASX Limited.

Jointly issued by Gold One and Goliath Gold

For and on behalf of Gold One:                                               For and on behalf of Goliath Gold:

JSE Sponsor:                                                                 JSE Sponsor:
Macquarie First South Capital                                                Merchantec Capital

South African Legal Advisor:                                                 South African Legal Advisor:
Edward Nathan Sonnenbergs                                                    Edward Nathan Sonnenbergs

Australian Legal Counsel:
Ashurst Australia

ENDS

Christopher Chadwick   Gold One CFO and Acting CEO   +27 11 726 1047 (office) +27 71 681 6450 (mobile)   chris.chadwick@gold1.co.za

Richard Stewart        Goliath Gold CEO              +27 11 726 1047 (office) +27 82 857 2173 (mobile)   richard.stewart@gold1.co.za

Grant Stuart           VP Investor Relations         +27 11 726 1047 (office) +27 82 602 5992 (mobile)   grant.stuart@gold1.co.za




                                                                                                                                      
About Gold One
Gold One is a dual listed (ASX/JSE: GDO) mid-tier mining group with gold operations and gold and uranium prospects across Southern
Africa, and is 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.)

The Modder East Operations have continued to ramp up in production and produced 97,958 ounces of gold at an average cash cost
of US$ 686/oz during 2012. This was derived from 474,754 Black Reef milled tonnes at an average recovered grade of 6.00 grams per
tonne as well as the milling of 139,887 tonnes of low grade development ore and waste with an average recovered grade of 1.43
grams per tonne. The Modder East Metallurgical Plant maintained recoveries of 95% for 2012.

At the beginning of 2012, the Gold One Group expanded with the acquisition of Rand Uranium (Pty) Limited, which comprised the
Cooke 1, 2 and 3 Underground Operations and the Cooke surface assets (now known as the Randfontein Surface Operations) located
in the West Rand, 30 kilometres from Johannesburg. Through Gold One’s purchase of Rand Uranium (Pty) Limited, the company has
also acquired one of the world’s most advanced uranium projects, which envisages recovering uranium, gold and sulphur from the
above surface Cooke Tailings Dam. The Cooke Tailings Facility has a code compliant resource of 0.8 million ounces of gold and 34
million pounds of uranium. This exciting opportunity is being further explored with Sibanye Gold Limited as part of a larger surface
retreatment strategy on the West Rand.

During mid-2012 Gold One also completed its transaction with the First Uranium Corporation and acquired 100% of the Ezulwini
Mining Company (Pty) Limited, giving the company access to gold and uranium processing plants with nameplate capacities of
200,000 and 100,000 tonnes per month respectively. Ezulwini (now known as Cooke 4) is contiguous to the company’s Cooke
Underground and Randfontein Surface operations and forms part of the Cooke Underground Operations. Access to the uranium
production facility allows for near term production of uranium from underground ore mined at Cooke. In addition, the sharing of
services between Cooke 4 and Cooke 1-3 facilitates a reduction in operating costs.

About Goliath Gold
Goliath Gold is a South African incorporated mining exploration company listed on the main board of the JSE in the ‘Mining: General
Mining’ sector, issuer code GGM. The company holds gold prospecting rights over several contiguous areas in South Africa’s
Witwatersrand Basin in the Gauteng Province as well as a prospecting right for heavy mineral sands over an area within South
Africa’s Western Cape Province. Currently the company is awaiting the granting of two additional gold prospecting rights over areas
contiguous to its existing Witwatersrand Basin assets, as well as a prospecting licence over a greenfield area in Etendeka, Namibia.

The majority of the company’s existing Witwatersrand Basin assets were acquired from Gold One by way of the issue of Goliath Gold
ordinary shares, resulting in Gold One International, through its wholly owned subsidiary Gold One Africa, acquiring a 72%
controlling interest in the company.

Goliath Gold has an established mineral gold resource base of over approximately 12 million ounces, compliant with the South
African Code for Reporting of Exploration Results, Mineral Resources and Mineral Reserves (SAMREC Code). Potential diversified
commodities are also being considered.

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.




                                                                                                                      

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