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Yomhlaba Resources Limited - Press Release Press Release YOMHLABA RESOURCES LIMITED (formerly Zenith Concessions Limited) (Registration Number 1994/009012/06) Share Code: YBA ISIN: ZAE000060281 (`Yomhlaba`) SENS STATEMENT - 4 March 2004 YOMHLABA RESOURCES LTD - YBA (an update) Ingwe Collieries Ltd (Ingwe), a subsidiary of the Energy Coal Division of BHP Billiton, terminated its contract with Yomhlaba Coal (Pty) Ltd (Yomhlaba), the wholly owned subsidiary of Yomhlaba Resources on 2 March 2004. In the cancellation letter, Ingwe states that: `An investigation by group audit services of BHP Billiton SA has revealed a number of illegal and/or unethical practices carried out by your company in its activities in relation to the contract. `These practices included manipulation and falsifying the mass and qualities of the product delivered. You are required to cease all activities forthwith and vacate the sites.` Yomhlaba was verbally informed of these allegations on 1 March 2005. Despite numerous requests for Ingwe to provide the company with affidavits containing the allegations, Ingwe has refused to supply the affidavits. Yomhlaba management strongly deny the allegations. Yomhlaba`s lawyers have placed Ingwe on terms to deliver evidence of the allegations by 4 March 2005, failing which, Yomhlaba will make an urgent application to court to secure an order compelling Ingwe to provide these affidavits. Arthur Mashiatshidi, chairman of Yomhlaba says `The allegations that have been made against Yomhlaba are very serious. We are very anxious to have sight of the evidence of allegations made against the company. At present, we have no basis to act; all we have is allegations of `illegal/unethical` conduct by the company. But we do not know by who or when these alleged acts were committed. As directors of the company, we cannot risk taking action without the benefit of information. `We would like to assure Yomhlaba investors that the directors have decided to commission an independent and thorough investigation of the allegations by Ingwe. We further undertake to protect the interests of the investors by acting decisively on the basis of the outcome of the investigations. We commit to prosecute any wrong doing that is uncovered by the investigation. Equally, if the investigation reveals no wrong doing by the company, Yomhlaba will seek redress from Ingwe`. Yomhlaba developed a unique technology which enables the recovery of coal from discard dumps. The company has been operating and has produced coal from this technology since January 2002. Yomhlaba spent R37m to erect plants on the basis of its contract with Ingwe. Under the contract with Ingwe, Yomhlaba has produced and delivered 2.8m tons of coal recovered from discarded dump material, per contract specifications. The contract with Ingwe, together with written attestation from Ingwe management on the efficacy of the technology, provided investors evidence that Yomhlaba had a solid business footing through its unique technology and Yomhlaba was therefore ready for the next phase of expansion. Yomhlaba was actively negotiating opportunities to acquire other coal dumps with a view to beneficiating these dumps for its own account. The COO of Yomhlaba, Dan Steyn says `It is difficult to respond to allegations without having had an opportunity to see the evidence. We look forward to an independent investigation into the matter so that we can clear our name and return to business.` The CEO of Yomhlaba, Johan Jonck says `The manner in which Ingwe handled this issue is of major concern. Since the start of the contract, there have been seven amendments to the contract at the instance of Ingwe whereby these amendments have led to an expansion of Yomhlaba`s business. The last amendment was in August 2004 whereby the contract was extended to December 2006 Ingwe`s termination the contract with Yomhlaba casts a negative shadow over Yomhlaba`s ability to pursue other opportunities. It is therefore important that an independent investigation be conducted expeditiously to enable the company to continue to pursue available opportunities without the threat of negative allegations. Designated Advisor River Group
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