***slv fantastic news*** I thought the news was great.Just think...

***slv fantastic news*** I thought the news was great.

Just think R1 will give SLV approx 2.4 million for 15 years
R2 the same as R1
and they are in disscussions about R3

all based on conservative resource calculations.
If the resouce calc is increased well could be over
10 million revenue per year for 15 years.

Now this is no chicken feed and once the market realises this it will be a different iture then presently!

Sylvania Resources Limited
Level 4, HPPL House
28 – 42 Ventnor Avenue
West Perth WA 6005
Tel: (61 8) 9481 8711
ACN 091 415 968
Postal Address
PO Box 368
West Perth WA 6872
Fax: (61 8) 9324 2977
9 March 2004
The Manager
Company Announcement Office
Australian Stock Exchange Limited
Exchange Centre
20 Bond Street
Sydney NSW 2000
Dear Sir,
Re: Sylvania participates in Consortium with Aquarius Platinum to extract Platinum
Group Metals (“PGM’s”) from Chromite tailing retreatment
Sylvania Resources Limited (“Sylvania”) announced today that it has entered into an
agreement to acquire a 25% interest in a Consortium (known as RK1) led by Aquarius
Platinum Limited which will undertake a project to treat chromite tailings through a purpose
built plant at its Kroondal Mine in order to extract the platinum group metals (platinum,
palladium, rhodium and gold). Sylvania’s 25% interest in the Consortium will be held
through its 100% owned South African subsidiary, Sylvania South Africa (Pty) Ltd.
The initial year of the project is expected to yield in excess of 20 000 ozs of platinum group
metals (PGMs), growing to 28 000 ozs per year from the second year, with 25% of the
production attributable to Sylvania.
The capital cost of the project, which is to be managed by Aquarius Platinum (South Africa)
(Pty) Ltd, is estimated to be R28.5m (including working capital) with plant construction
commencing this month and a rapid ramp-up to full production being achieved by
December 2004. At R7/US$1 operating costs are expected to be US$170 per PGM oz in year
one reducing to US$145 per PGM oz thereafter.
The project economics have been conservatively modelled and are very robust over a wide
range of metal prices and exchange rate assumptions. An after-tax internal rate of return of
72% is generated at the current basket price of US$ 521 per PGM oz with an exchange rate of
R 7/ US$ 1.
During the construction of the RK1 plant, the consortium will commence work on RK2,
which will be a similar style chromite retreatment project centred on Aquarius’ Marikana
Mine. Discussions relating to a proposed RK3 project are also underway.
The Directors of Sylvania see participation in this consortium as a rare opportunity to gain
access to PGM cashflow, with low risk, and immediate potential for growth of the earnings
stream via the development of further chromite retreatment projects.
Sylvania has entered into a Deed of Novation with Victoria Global Holdings (“Victoria”),
which outlines the terms of Sylvania’s entry into the Consortium. Under the terms of the
Deed of Novation, Sylvania will acquire its 25% interest in the Consortium by funding
£625,000 towards the capital costs of the project, and issuing 6 million fully paid shares in the
Company to Victoria.
Sylvania proposes to raise approximately £2.22m from institutional investors in London,
through a placement of up to 18.5 million fully paid ordinary shares in the Company at a
minimum issue price of £0.12 per Share, to fund its commitment to the RK1 Project, and
provide Sylvania with additional funds to assess a number of other PGM projects in South
Africa.
The completion of this transaction is dependant upon the approval of Sylvania shareholders
being obtained for the placement of shares and the issue of shares to Victoria. Shareholder
approval for this issue will be sought at a General Meeting of shareholders, details of which
will be released shortly.
For full details of the technical aspects of the project please refer to the announcement
released by Aquarius Platinum today.
Yours faithfully
Sylvania Resources Limited
________________________
Grant Button
Company Secretary