UPDATE TO SHAREHOLDERS

Shareholders are referred to the SENS announcement dated 31 August 2012 referring to the Judgement against Messrs Peter Mosebo and Neels Engelbrecht with costs and they have to provide security for costs for an amount of R250 000 in Case Number CIV/APN/664/2010 (“the Case”).

After the Judgement the Honourable Judge recused herself in writing from the Case and all other cases related to Thabex and others in the High Court of Lesotho. The reason for recusing herself was a complaint to the Executive by Reskol Diamond Mining (Pty) Ltd (“Reskol”) as an investor and a subsidiary of French Listed, Batla Minerals SA (“Batla”), that the date for the Judgement in the second provisional liquidation application (Case Number CIV/PET/2011) of Angel Diamonds (Pty) Ltd (in liquidation) (“Angel Diamonds”) and heard on 31 March 2012 was too far in the future, being 1 November 2012.

The consequence of this complaint is that both the hearing in the Case, scheduled for 10 and 11 December 2012, and the hearing in the second provisional liquidation of Angel Diamonds will have to be heard again by another judge, respectively.

Thabex and other interest parties have brought a Review Application in the High Court of Lesotho to direct the Master of the High Court to, inter alia, make a ruling as follows;

• To remove the liquidators in the first and second provisional liquidation cases of Angel Diamonds on the grounds that these provisional liquidators are not independent.
  
  
• To dismiss the liquidators’ account in the first provisional liquidation as it has not been taxed by the Deputy Master of the High Court in Lesotho.
  
  
• To declare the invoice to Angel Diamonds from Webber Newdigate, the attorneys of record for Messrs Mosebo and Engelbrecht, dated 12 April 2011, for and amount of R483 896.49, a voidable transaction in terms of the Companies Act of Lesotho. Angel Diamonds has not instructed Webber Newdigate to act on its behalf in the Main Application (Case number CIV/APN/333/2010), which instruction was received from Messrs Mosebo and Engelbrecht as per Webber Newdigate’s confirmation letter dated 9 June 2010.

The Company and other interested parties are also preparing a Review Application to be brought in the High Court of Lesotho, subject to the outcome of the Case and the second provisional liquidation judgements, to direct that the previous Minister of Natural Resources had acted incorrectly in granting Reskol a Mining Lease (“ML”) within a period of three months when Reskol did no prospecting and it was never granted a Prospecting Lease. Angel Diamonds has already negotiated the terms of the ML, over the same area, with the Mining Board on 10 June 2010. Angel Diamonds has been waiting in good faith for more than three years for its ML application to be considered by the Mining Board after it had completed the prospecting program for an amount in excess of R10 million over the area as defined in its Prospecting Lease No 002 dated 15 June 2006.

Sponsor