Aflease - Withdrawal of cautionary announcement
Aflease Gold and Uranium Resources Limited
(Formerly The Afrikander Lease Limited)
(Incorporated in the Republic of South Africa)
AFL (JSE) AFKDY (NASDAQ)
(Registration number 1921/006955/06)
Share Code: AFL ISIN: ZAE000061461
(`Aflease`)
WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT
Shareholders are referred to the cautionary announcements dated 3 February 2005,
17 March 2005 and 12 May 2005, and are advised that Aflease today announced that
it had decided to terminate its agreement with Harmony Gold Mining Company
Limited (`Harmony`) relating to the potential acquisition of Harmony`s uranium
assets.
The decision follows the due diligence conducted by Aflease pursuant to that
agreement, consisting of a detailed drilling analysis of several of the tailings
dams on Harmony`s properties. The due diligence established that the uranium
resource fell short of expectations. The agreement has accordingly been
terminated, with the result that no further monies are due and payable by
Aflease thereunder.
Neal Froneman, chief executive officer of Aflease, said: `We were disappointed
to have to terminate our agreement with Harmony; in view of the results of our
due diligence, however, we had no alternative. We continue,` he said,` to
actively look for other virgin sources of uranium and uranium exploration
properties in South Africa.` Froneman noted that Aflease remained firmly on
track to deliver the first consignment of uranium to market from its Klerksdorp
operations early 2007.
Accordingly, caution is no longer required to be exercised by shareholders when
dealing in their Aflease shares.
Johannesburg
26 May 2005
Investment bank and sponsor
Nedbank Capital
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