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GOLD ONE INTERNATIONAL LIMITED - Industrial Action at Cooke 1-3 Underground and Randfontein Surface Operations

Release Date: 30/08/2013 16:19
Code(s): GDO     PDF:  
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Industrial Action at Cooke 1-3 Underground and Randfontein Surface Operations

Gold One International Limited
Registered in Western Australia under the Corporations Act, 2001 (Cth) with registration number ACN: 094 265 746
(Registered in South Africa as an external company with registration number 2009/000032/10)
ISIN: AU000000GDO5
Share Code on the ASX/JSE: GDO
OTCQX International: GLDZY
("Gold One" or the “company”) 



                                                                                                                          Media Release
                             Industrial Action at Cooke 1-3 Underground and
                                     Randfontein Surface Operations

JOHANNESBURG – 30 August 2013. Gold One International Limited (ASX and JSE: GDO) advises that on
Friday 30 August 2013 the company received notice from the National Union of Mineworkers (“NUM”) of
industrial action planned to commence on Tuesday 3 September 2013 at the Cooke 1, 2 and 3 Shafts and the
Randfontein Surface Operations, owned by the company’s subsidiary Rand Uranium Proprietary Limited
(“Rand Uranium”). Should the planned industrial action go ahead, a policy of ‘no work – no pay’ will be
implemented.

This planned industrial action follows the dispute declared by NUM on Tuesday 27 August 2013 at The
Commission for Conciliation, Mediation and Arbitration (“CCMA”), after the parties were not able to reach
agreement at the Chamber of Mines of South Africa’s gold sector wage negotiations.

In terms of the recognition agreement concluded between NUM and Rand Uranium, the Cooke 1, 2 and 3
employees and Randfontein Surface employees who fulfill Essential Services are not permitted to participate
in any industrial action. The planned industrial action does not extend to Cooke 4 (Ezulwini) employees as
Ezulwini Mining Company Proprietary Limited is not a member of the Chamber of Mines and as such not a
party to the current wage negotiations. A two year wage agreement valid until March 2014 is currently in
place at Cooke 4.

Management has contingency plans in place to mitigate the impact of the industrial action and will continue
to keep the market informed of further developments.

Johannesburg
30 August 2013

JSE Sponsor
Macquarie First South Capital

ENDS

                                               Issued by Gold One International Limited
                                                          www.gold1.co.za

Christopher Chadwick   CFO and Acting CEO         +27 11 726 1047 (office) +27 71 681 6450 (mobile)   chris.chadwick@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 Proprietary Limited (“Rand
Uranium”), 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, 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
(“Sibanye Gold”) 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 Proprietary Limited (“Ezulwini”), 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.

For the 2012 year, the Cooke 1-3 Underground Operations produced 98,451 ounces at an average cash cost of US$ 1,558/oz. This
production was derived from the treatment of 961,802 milled tonnes at an average recovered grade of 3.17 grams per tonne as well
as the treatment of 39,650 milled tonnes of low grade development and waste material at an average recovered grade of 0.34 grams
per tonne. Plant recoveries for the operation were 95% for 2012.

Since Gold One assumed managerial control, Cooke 4 produced gold in the months of August, September and December only due to
illegal industrial action that temporarily halted the operation during October and November. For the three months 8,493 ounces
were produced. Total production for 2012 comprised 82,951 milled tonnes at an average recovered grade of 3.18 grams per tonne.
Due to the fact that the metallurgical plant was stopped for two months during the illegal industrial action, plant recoveries averaged
82% over the reporting period.

For the 2012 year the Randfontein Surface Operations produced 36,853 ounces from 3,286,633 milled tonnes at an average cash
cost of US$ 1,137/oz. Recovered grades during the year averaged 0.349 grams per tonne, with a gold recovery rate of 72%.

On the 21 August 2013 the company announced that it had entered into an agreement with Sibanye Gold Limited to merge its 74%
shareholding in and claims against Newshelf 1114 Proprietary Limited, which holds a 100% shareholding in Rand Uranium and will
also hold 100% of Ezulwini after an internal restructure, in exchange for a 17% interest in the fully diluted share capital of Sibanye
Gold through the issue of new ordinary shares.

The Gold One Group is majority-owned by a consortium comprising Baiyin Non-Ferrous Group Company Limited, the China-Africa
Development Fund, and Long March Capital Limited, and has an issued share capital of 1,421,538,989 shares.

This news release does not constitute investment advice. Neither this news release nor the information contained in it constitutes an
offer, invitation, solicitation or recommendation in relation to the purchase or sale of securities in any jurisdiction.

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.

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained
herein.

Date: 30/08/2013 04:19:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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