Emperor Gold is up 15% on small volume today following...

Emperor Gold is up 15% on small volume today following announcement and there are some solid bids starting to appear any thoughts on this one,cheers.


EMPEROR FINALISES FINANCIAL AND OPERATIONAL RESTRUCTURING PACKAGE
Emperor Mines Limited (ASX: EMP) today announced the finalisation of a financial and
operational restructuring package aimed at returning the Company to positive cash flow and
creating a sustainable, long term future for the company and its operations in Fiji.

As announced previously, Emperor has finalised a plan designed to restore the Emperor Gold
Mine to positive cash flow conditional on completing arrangements for short term financing
of A$10 million. This plan envisages production of approximately 650,000 tonnes of ore at
an average grade of 8.00 g/t delivering 145,000 oz of gold for the current financial year at the
Emperor Gold Mine.

This plan was announced following the earlier announcement that the Company expects to
report a loss from ordinary activities before income tax and exceptional items in the order of
A$18 million for the year ended 30 June 2005.

The Company is therefore pleased to announce the finalisation of an A$10 million
Convertible Loan Facility with the Company's major shareholder, DRDGOLD Limited
(ASX: DRD), which owns 45.3% of Emperor. The financing package also includes an
agreement with ANZ Bank, subject to a number of conditions, to a restructuring of the
Company's debt servicing obligations to assist the Company with its restructuring plan. The
ANZ Bank has also consented to the Convertible Loan Facility and the related security.

The $A10 million Convertible Loan Facility, which was negotiated on behalf of the Company
by its independent directors, carries an interest rate of 9% per annum and is repayable upon
receipt of the proceeds of sale expected from the sale of Emperor's interest in the Tuvatu
Gold Prospect or by 31 December 2007.

Emperor has previously announced a conditional sale agreement in relation to the Tuvatu
Gold Prospect and expects to receive consideration worth approximately $10 million on
completion of that transaction. The Convertible Loan Facility is secured by a first ranking
charge over Emperor's 100% interest in the Tuvatu Gold Prospect in Fiji, the rights under the
sale agreement and the proceeds from the sale. The Australian Stock Exchange has also
granted a waiver of Listing Rule 10.1 to permit Emperor to grant security to DRDGOLD on
terms which have also been incorporated in the Convertible Loan Facility.

The Convertible Loan Facility is convertible at DRDGOLD's election into ordinary fully paid
shares of Emperor. The Conversion Price will be equal to the lower of $A0.30 or the 45 day
volume weighted average price of Emperor shares on ASX prior to the date of conversion.

The Convertible Loan Facility requires approval from the shareholders of Emperor (other
than DRDGOLD) and a Notice of Meeting and Explanatory Statement (including full details
of the Convertible Loan Facility) will be despatched to all shareholders at the earliest
opportunity. In the event that shareholder approval is not obtained an event of default will be
deemed to have occurred 60 days after the date of such shareholders meeting. In this event
DRDGOLD will not be obliged to make further advances and any advances that have been
made must then be repaid within a period of 270 days after the event of default.

As part of the restructuring package, the Company has also entered into an Operational
Support Agreement with DRDGOLD to provide management and technical services to the
Company.

Under the Operational Support Agreement, DRDGOLD will provide management and
technical services to the Company. This agreement was also negotiated on behalf of the
Company by its independent directors.

As previously announced, the services of Mr Mike Marriott and Mr Sean O'Connor have
been made available to the Company and are provided under the terms of the Operational
Support Agreement.

Following the appointment of Mr Marriot as Chief Operating Officer and Mr Sean O'Connor
as General Manager, Emperor has commenced introducing new working practices at
Vatukoula. Some of these new practices have already been implemented and initial reactions
have been positive.

To minimise the head office costs of the Company, Emperor's head office in Sydney will be
closed and certain Emperor staff will work out of DRDGOLD's operational base in Brisbane.

Commenting on the announcement, Emperor Chairman Mr Jim Wall said:
"The Board of Emperor is totally committed to restoring Emperor to positive cash flow
and we are delighted that this package has been agreed."

"While the record high oil prices continue to present challenges for Emperor, the
willingness of all stakeholders to make a success of the Emperor Gold Mine is most
encouraging." Jim Wall
Chairman
11 July 2005