BAUBA PLATINUM LIMITED - Mineral Rights in the Sekhukhune Area / Factually Incorrect and Biased Negative Reporting by the Mail & Guardian

Mineral Rights in the Sekhukhune Area / Factually Incorrect and Biased Negative Reporting by the Mail & Guardian

Bauba Platinum Limited
Incorporated in the Republic of South Africa
(Registration number 1986/004649/06)
Share code: BAU ISIN: ZAE000145686
(“Bauba Platinum”)


VOLUNTARY ANNOUNCEMENT – MINERAL RIGHTS IN THE SEKHUKHUNE AREA / FACTUALLY
INCORRECT AND BIASED NEGATIVE REPORTING BY THE MAIL & GUARDIAN


Bauba Platinum is publishing this announcement as a result of:

1) the Mail & Guardian’s online article published on 28 September 2016, which was subsequently removed
   on 29 September 2016 following a complaint made about the factual inaccuracies of its content;
2) the Mail & Guardian’s printed article published on 30 September 2016; and
3) (a) video(s) posted by the Mail & Guardian.

The facts (communicated to the Mail & Guardian but largely disregarded) are as follows:

-   The Government of South Africa, through the Presidency, recognised by succession Thulare Victor
    (“Thulare”), as King of the Bapedi Nation and consequently his father, the late Thulare Rhyne Sekhukhune
    (“Rhyne”). Their Kingship included an area in Limpopo known as the Sekhukhune District (“the Area”).

-   In 2005, Rhyne, on behalf of the Bapedi Nation, lodged an application for prospecting rights on certain
    farms in the Area. These prospecting right applications were granted in 2006 (the “Prospecting Rights”).

-   After the Prospecting Rights were granted, the Bapedi Nation ceded same to Bauba A Hlabirwa Mining
    Investments Proprietary Limited (“Bauba A Hlabirwa”) in exchange for funding and expertise in the mining
    sector and a material shareholding in Bauba A Hlabirwa, which was created for this very purpose.

-   In 2010, Absolute Holdings Limited (which subsequently changed its name to Bauba Platinum Limited)
    listed on the JSE and acquired 60% of Bauba A Hlabirwa, with 40% being retained by the Bapedi Nation.
    Bauba Platinum is responsible for the funding and administration of Bauba A Hlabirwa.

-   Illegal chrome mining has been present in the Area for a considerable period of time with the increase in
    the presence of criminal enterprises in 2015 and 2016, resulting in the depletion (and destruction) of the
    chrome resources in the Area.

-   Bauba A Hlabirwa erected warning signs on the boundaries and within the property of one of the farms
    over which it holds a granted mining right in order to prevent and deter any illegal mining from encroaching
    on the farm.

-   Absolute Group Management Proprietary Limited (a wholly-owned subsidiary of Bauba Platinum) and a
    third party, VDH Holdings Proprietary Limited (“VDH Holdings”) (both with interests in the integrity and
    sustainability of the chrome reserves in the Area), jointly applied for and obtained various court orders to
    compel the Minister of Police to take the necessary steps to halt the illegal mining in the Area.

-   The reports and video(s) produced by the Mail & Guardian are factually incorrect and are subjectively
    negative, whilst inferring untoward or illegal behaviour by Bauba A Hlabirwa, Bauba Platinum, the early
    shareholders and some directors. Neither Bauba A Hlabirwa, Bauba Platinum nor VDH Holdings were or
    are involved in any illegal mining and in fact expended substantial funds obtaining court orders to stop the
    illegal mining in the Area.

-   Bauba Platinum and Bauba A Hlabirwa strongly deny the unfounded and distorted allegations and the
    incorrect reporting and video(s) published by the Mail & Guardian.

Bauba Platinum and Bauba A Hlabirwa will continue their lawful operations in the Area in accordance with their
respective mineral rights.


Johannesburg
5 October 2016

Sponsor
Merchantec Capital

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