interesting announcement

The second last paragraph about RIO tinto, very very interesting. The was is not over me thinks

Kalahari Minerals plc / Ticker: KAH / Index: AIM / Sector: Mining & Exploration

11 May 2011

Kalahari Minerals plc (`Kalahari' or `the Company')

Annual General Meeting Statement

Kalahari Minerals plc, the AIM listed resource company, held its Annual General
Meeting earlier today, at which all of the resolutions proposed were duly
passed. Kalahari's Executive Chairman, Mark Hohnen, made the following
statement at the meeting:

"Following the announcement yesterday by the Hearings Committee of the Panel
that our appeal has been dismissed, CGNPC Uranium Resources Co., Ltd
(`CGNPC-URC') is not permitted to reduce the price of its possible offer to
270p per share and has withdrawn its Possible Offer. However, Kalahari
understands that CGNPC-URC recognises the inherent value of the world class
Husab Uranium Project (`Husab') and we are looking at establishing a strong
commercial relationship with CGNPC-URC, which is one of the world's largest
consumers of uranium, with six nuclear power stations currently operating and a
further 19 under construction or in development. We may, going forwards, review
alternatives for co-operation in the absence of an offer by CGNPC-URC for
Kalahari. In this vein, while Kalahari considers its position in regard to
building a commercial relationship, Kalahari has decided that it will not
demand payment of the ?7.5 million Break Fee at this time, although it has
reserved its rights in relation to this.

"It is widely recognised that the nuclear industry remains critical to the long
term global energy market and that projects such as Husab have significant
roles to play, in spite of the tragic events seen in Japan. It is disappointing
that CGNPC-URC's revised possible offer was unable to proceed, as the Board of
Kalahari believes it represented an attractive opportunity to crystallise the
inherent value of our interest in Husab. Nevertheless, our focus as directors
of Kalahari remains centred on realising the value of Husab, and we remain
committed to the onward stewardship and cultivation of commercial discussions
through which to achieve this.

"Extract is now at a crucial and delicate stage of its development, and we
remain fully committed to the onward support of Extract and its expansion and
advancement initiatives for Husab. Central to this is the Mine Optimisation and
Resources Extension (M.O.R.E.) programme which Extract has commenced at Husab.
The objective of the M.O.R.E. programme is to increase the mine life, to
investigate opportunities to add additional value through optimisation of the
mine plan and process modifications, and to enhance the project's operating and
financial performance. This will be advanced in tandem with further exploration
on the wider Husab area, increasing the current resource through additional
drilling on new zones of mineralisation, including Zones 3, 4 and 5 of Husab,
Middle Dome, Pizzaro and Salem. With regards to licences, we also welcome
clarification from the Hon. Isak Katali, Minister of Mines and Energy that the
proposed changes to the Namibian Minerals Policy will not apply to existing
exploration and mining licences. Kalahari, together with the board of Extract,
recognises the importance of maintaining an open dialogue with the appropriate
ministers and officials in Namibia, in order to expedite the development of
Husab.

"We are highly supportive of the above plans to realise the value and potential
of Husab. Accordingly, it is imperative that Kalahari remains unrestricted to
maintain and, wherever possible, increases its current 42.79% interest in
Extract, as it delivers on the various capital requirements of developing Husab
towards production. We are therefore disappointed that Rio Tinto, which holds
an 11.5% interest in the Company, again voted against the resolution to
increase the Company's headroom to allot additional shares. This is the third
attempt by Rio Tinto to limit or disallow our ability to exercise our right to
maintain or increase our interest in Extract; an action which we believe would
directly affect our powers to accrue value for our shareholders.

"Kalahari remains fully committed to the development of Husab for the benefit
of all stakeholders. In line with this, the Board of Kalahari will continue to
proactively evaluate the various commercial opportunities open to the Company,
in order to maximise the full potential of Husab as the most exciting new
uranium project in the world. I look forward to updating shareholders in this
regard in due course, and would like to take this opportunity to thank them for
their continued support."

**ENDS**