financial reporting relief , page-7

Rest of the announcement. If it comes to pass it certainly advances the merger past the biggest hurdle, securing the funds to underpin the merger. Announcement follows..


Processing of Dilokong Chrome Tailings ready to commence with secured funding

28 October 2013

Jubilee, the AIM and JSE Limited (“JSE”) quoted Mine-to-Metals specialist, is pleased to announce that it has reached a key milestone in the commencement of processing of the platinum-bearing Dilokong Chrome Mine (“DCM”) tailings by concluding a funding arrangement to meet the working capital requirement. Jubilee is targeting to commence processing within the next three months based on expected time lines to re-commission the processing plant.

The funding arrangement includes both debt and equity. The debt component was secured following due diligence by the investor on the earnings potential of the processing of the DCM tailings, which allowed Jubilee to reduce the equity funding requirement.

The funding arrangement includes a debt offering of US$10 million, of which Jubilee will initially only access US$750,000 (“Loan”), the amount required to commence processing of the DCM tailings.

As part of the funding arrangements, Jubilee has entered into a subscription agreement with YA Global Master SPV Ltd ("YAGM"), whereby YAGM will subscribe for 14,204,544 new ordinary shares in the Company ("Shares") at a price of £0.044 per share raising £625,000 ("the Placement”).

Pursuant to the terms of the Loan, Jubilee is obliged to pay YAGM a facility fee of US$50,000, which Jubilee has elected to satisfy by the issue of 700,322 ordinary shares in the company to YAGM.

The Placement is subject to the listing of the Shares on the JSE and the admission of the Shares to trading on the AIM market of the London Stock Exchange, which is expected to occur on 5 November 2013.

The Company‘s total issued shares will be 385,264,813 after the Placement and satisfaction of the facility fee. The Shares will rank pari passu with the existing shares in issue of Jubilee.

Leon Coetzer CEO of Jubilee said: “The funding arrangement secured by Jubilee is a key step towards the commencement of the processing of the Dilokong Chrome Mine tailings. Jubilee has targeted an initial processing rate of 10,000 tonnes per month ramping up to a targeted 25,000 tonnes per month within 4 months of operation. Jubilee is currently in discussions with the community to access a second road link to allow the targeted processing capacity to increase to 35,000 tonnes per month.

“The processing of the Dilokong Chrome tailings significantly enhances Jubilee's earnings capability and brings the Company a step closer to concluding the proposed Platinum Australia transaction. We have a strong asset base from which to grow and remain fully focused on becoming an integrated and operational platinum company.”

Corporate Video

The Company is also pleased to provide shareholders with the opportunity to watch a recent interview with Jubilee’s CEO Leon Coetzer, discussing the Company’s development strategy.

It can be viewed through the following link:

www.brrmedia.co.uk/event/117216/

The video is also available on the Company's website

Editor’s Note

Jubilee’s subsidiary Pollux Investment Holdings Pty Ltd (Pollux) was awarded the processing right to recover the platinum group metals (PGM) contained in the 800,000 tonnes Dilokong Chrome Mine surface tailings (DCM Tailings or Tailings). Jubilee concluded a toll processing agreement in November 2012 (Toll Agreement) with PhokaThaba Platinum Pty Ltd (PhokaThaba or Smokey Hills), a subsidiary of Platinum Australia Limited (PLA) (under administration), for the processing of the Tailings at the Smokey Hills concentrator. The Toll Agreement enables Jubilee to commence processing of the Tailings starting at a rate of 10,000 tonnes per month and ramping up to a targeted 25,000 tonnes per month over a 4 month period.