Zarara Energy Limited -
ZARARA ENERGY LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1895/001078/06)
Share code: ZRR ISIN: ZAE000033080
("Zarara")
CAUTIONARY ANNOUNCEMENT
Shareholders are referred to Zarara"s 2002 Annual Report wherein details of a
contingent liability of US$350 000, emanating from a letter of demand received
from American Custom Components Incorporated ("ACCI"), were included.
Shareholders are now advised that subsequent to the Annual General Meeting held
on Wednesday, 28 May 2003, at which the passing of a resolution to reduce
Zarara"s share premium and to make payment to shareholders of an amount of R57
236 248 was passed, Zarara has received a summons in which ACCI claims payment
of the sum of R7 420 850 plus interest and costs.
The directors of Zarara remain of the opinion that the claim will be
successfully defended and have instructed their attorneys to oppose the claim
and apply for security of costs. The directors are investigating the
possibility of registering a counterclaim for damages.
Accordingly, shareholders are advised to exercise caution when dealing in
Zarara"s securities until a further announcement is made.
Johannesburg
19 June 2003
Sponsor
PricewaterhouseCoopers Corporate Finance (Pty) Ltd
Date: 19/06/2003 01:43:07 PM Supplied by www.sharenet.co.za
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