VILLAGE MAIN REEF LIMITED - Annual Results for the year ended 30 June 2013 (media release)

Annual Results for the year ended 30 June 2013 (media release)

Village Main Reef Limited
(formerly Village Main Reef Gold Mining Company (1934) Limited)
(Incorporated in the Republic of South Africa)
(Registration number 1934/005703/06)
JSE code: VIL     ISIN: ZAE000154761
("Village" or "the Company" or "the Group")

ANNUAL RESULTS FOR THE YEAR ENDED 30 JUNE 2013

Village Main Reef reports headline profit of 37.83 cents per share from continuing operations,
initiates transformation into diversified resources investment company

30 September 2013. village Main Reef (Village) today reported a headline profit of 37.83 cents per share from continuing operations for the period 
ended 30 June 2013. The headline profit from continuing operations reflects the results of the Lekoa and Cons Murch operations for the financial year. 
Losses from Buffels, including the impairment of assets disclosed as discontinued operations, resulted in a loss of 64.2 cents per share. The Buffels 
operations were placed on care and maintenance towards the end of the current financial year. The Blyvoor operations were placed in provisional 
liquidation post financial year-end and this required Village to impair the assets, with this impairment resulting in a loss of 48.87 cents per share.
 
Other highlights of FY2013 include embarking on a strategic redirection in which the Company has initiated its transformation into a diversified 
resources investment company. As part of this transformation, Village has acquired a 16.34% interest in the Australian-listed Continental Coal Limited 
(Conti). Says CEO Ferdi Dippenaar, Village believes in the fundamentals of thermal coal and in South Africas role in that international market.
 
Commenting on the Companys policy towards shareholders, Ferdi says, We remain of the opinion that regular dividends are just reward to capital 
providers  as far as operations allow. When we create value for our shareholders, we plan to return it to them. And we did just that by declaring a 
special dividend of 30c and buying back 6% of shares during the year under review. We firmly believe that Villages current share price does not reflect 
the Companys true value and were disappointed that these steps did not create positive momentum in our share price. It needs to be remembered that over 
the past year most junior mining companies have experienced large devaluations of their share prices.

Says Ferdi, Village has shown its mettle in what has been a trying year for the Company, and for the mining industry as a whole, and we have constructed 
a framework for a sound future.

During the period under review, Village has had to take many hard decisions and restructure the Company for profitability. These have included the 
closure of Buffels and, post year-end, the closure of Blyvoor. Production at Buffels reached levels where the remaining ore body was not sufficient 
to justify the costs of developing and opening up new mining areas, and the Company had no choice but to place the underground operations on care and 
maintenance in preparation for closure. In the case of Blyvoor, circumstances left Village with little option but to stem a growing cash haemorrhage.

Tau Lekoa continues to generate positive cash flows and the strategy remains to harvest the mines remaining gold resource. Given that losses at both 
Buffels and Blyvoor have been addressed, Village expects Tau Lekoa and Cons Murch to generate healthy earnings over the next 12 months at current rand 
gold prices. 

Ferdi emphasises, Our experiences at Buffels and Blyvoor underscore the merits of converting Village into a resources and investment company with a 
diversified portfolio  and a move away from purely gold exposure. And this is precisely what we have done. We believe a diversified portfolio in the 
form of a resources investment company can deliver everything we have been advocating. We begin the new financial year with renewed vigour and conviction 
that our rejuvenated strategy will bear fruit for all stakeholders.

The full Village Integrated Annual Report 2013 is available on the Companys website: www.villagemainreef.co.za

Contacts:
Ferdi Dippenaar
CEO 
Email: ferdi@villagemainreef.co.za
Mobile: 082 807 3684

Marius Saaiman
Interim CFO 
Email: msaaiman@villagemainreef.co.za
Mobile: 082 458 3420

Issued by:
Russell and Associates
Email: charmane@rair.co.za/jan@rair.co.za
Tel: 011 880 3924




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