07 February 2006LETTER OF INTENT RECEIVED FROM SAMANCORThe...

07 February 2006

LETTER OF INTENT RECEIVED FROM SAMANCOR

The Directors of Sylvania Resources Limited (“Sylvania” or “the Company”) are pleased to announce they have received a Letter of Intent (“the Letter”) from Samancor Limited in relation to the recovery of chrome and Platinum Group Metals (“PGMs”) from a number of its tailings dams, including at its Eastern Chrome Mines (Tweefontein, Lannex, Steelport, Boornbush, Montrose, Groothoek, Onverwacht, Mooihoek) and its Western Chrome Mines (Buffelsfontein, Elandsdrift, Mooinooi).

The Letter relates to both Samancor’s past and current mining activities and is subject to final negotiations on the terms and conditions of the agreements for each project.

It is envisaged that the final contracts will largely reflect the technical and pricing arrangements that currently exist between Samancor and Sylvania for the Millsell and Waterkloof projects, which are already at plant construction stage.

The directors of Sylvania consider this to be a significant opportunity to increase the chrome and PGM production profile of the Company.