VILLAGE MAIN REEF LIMITED - Operational Update for the Quarter Ended 30 June 2014

Operational Update for the Quarter Ended 30 June 2014

VILLAGE MAIN REEF LIMITED                                                     
(formerly known as Village Main Reef Gold Mining Company (1934) Limited)        
(Registration number 1934/0057034/06)                                           
Share Code: VIL                                                                 
ISIN:  ZAE000154761                                                             
("Village" or "the Company" or "the group")                                                                     


OPERATIONAL UPDATE FOR THE QUARTER ENDED 30 JUNE 2014


Village reported a much improved set of operational results for the period ending 30 June 2014, with total cash operating profit
from continuing operations increasing from R49.5 million to R111.9 million mainly as a result of increased production at Tau
Lekoa and progress made with the mine closure and rehabilitation activities at Buffels.

Profit from continuing operations before interest and tax was higher at R76.6 million compared to a loss of R14.8 million in the
previous quarter. Combined losses from discontinued operations, Buffels and Cons Murch, were lower at R37.8 million
compared to R47.4 million reported previously.

A full set of audited quarterly and financial year end results will be made available prior to the August, 2014 quarterly results
presentation.


Tau Lekoa
Quarterly production increased by 34% from 647kgs (20,801oz) to 869kgs (27,938oz). Although underground tonnage was
47% higher at 237,253 tonnes the recovered grade decreased from 4.0g/t to 3.7g/t. Despite slightly lower gold prices,
revenue increased by 30% from R291 million to R378 million. Tau achieved its annual target with 3,437 kg (110,499oz)
produced for the 2014 financial year.

Cash costs were higher by R29 million quarter on quarter (R286.1 million vs R257.1 million), mainly due to higher electricity
costs as a result of winter tariffs and increased hoisted tonnes, increased royalty and bonus payments and additional
consumables as a direct result of an increase in production. On a per unit cost basis, cash cost decreased by 17% from
R397,400/kg ($1140/oz) to R329,212/kg ($968/oz) and on an all in cost per unit basis decreased by 18% from R424,893/kg
($1,219) to R346,412/kg ($1,019 /oz).

Buffels

Buffels generated approximately R46 million in revenue, up from R8 million in the previous quarter. Buffels realised a cash
operating profit of R10 million compared to a cash loss of R14 million reported previously, mainly due to higher revenue from
gold sales from the treatment of surface sources and a reversal of a provision for underground pumping costs. A final
settlement agreement was reached between Buffels and Harmony on the repayment of previously incurred pumping costs on
behalf of Harmony, and an amount of approximately R24 million, recoverable from Harmony, was accrued for in the quarter.
This amount was received by Buffels in July, 2014.

Cons Murch

Total revenue at Cons Murch decreased from R43 million to R31 million, mainly due to lower prices and volumes as the mine
continues to struggle to recover to previous operating levels. Antimony production decreased 38% from 671 tonnes to 419
tonnes and gold production decreased 30% from 49 kgs to 34 kgs. It is anticipated that the mine will see an improvement in
operational performance in the September 2014 quarter following the delivery of new mechanised equipment during the
June 2014 quarter. Good progress is being made in dealing with the Conditions Precedent with regard to the disposal of
Cons Murch.

The above information has not been reviewed or reported on by the company's auditors.
Contacts

Village CEO: Ferdi Dippenaar; ferdi@villagemainreef.co.za
Village CFO: Clinton Halsey; chalsey@villagemainreef.co.za
Village Media and Investor Relations: Russell and Associates; charmane@rair.co.za

22 July 2013

Sponsor
Bravura Capital (Pty) Ltd




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