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

Update regarding CGNPC-URC Possible Offer Discussions

THIS ANNOUNCEMENT DOES NOT CONSTITUTE AN ANNOUNCEMENT OF A FIRM INTENTION TO
MAKE AN OFFER UNDER RULE 2.7 OF THE CITY CODE.
THERE CAN BE NO CERTAINTY THAT ANY OFFER WILL BE MADE.

Further to the announcement on 10 October 2011, Kalahari confirms that it
remains in discussions with CGNPC Uranium Resources Co., Ltd ("CGNPC-URC") in
relation to a possible offer for the entire issued share capital of the
Company. The possible offer is a cash offer at a price of 243.55 pence per
share, but there can be no certainty that an offer will be made for the
Company.

Kalahari's key asset is a 42.74% interest in Extract Resources Limited, owners
of the world class Husab Uranium Project in Namibia. The Board of Kalahari
believes that CGNPC-URC's leading position in the uranium sector makes it a
suitable partner for the realisation of the full potential of the Husab Uranium
Project to the benefit of all stakeholders.

Since 6 months have now elapsed since the announcement on 10 May 2011 by
CGNPC-URC under Rule 2.8 of the City Code on Takeovers and Mergers (the
"Code"), CGNPC-URC is no longer restricted by Rule 2.8 of the Code.
Notwithstanding the lifting of these restrictions on CGNPC-URC, the two parties
are in discussions with the intention of reaching agreement on a recommended
offer for the Company.

In view of the fact that CGNPC-URC is now no longer subject to the restrictions
of Rule 2.8 of the Code, CGNPC-URC is now subject to Rule 2.6(a) of the Code.
As required by Rule 2.6(a) of the Code, CGNPC-URC must, by no later than 5.00pm
on 8 December 2011, either announce a firm intention to make an offer in
accordance with Rule 2.7 of the Code, or that it does not intend to make an
offer for the Company in which case the announcement will be treated as a
statement to which Rule 2.8 of the Code applies. This deadline will only be
extended with the consent of the Takeover Panel in accordance with Rule 2.6(c)
of the Code.

However, these discussions may or may not lead to an offer being made and a
further announcement will be made in due course.