requisition of general meeting, page-19

PRESS RELEASE

Molopo Shareholders Call for Board Renewal and Strategic Refocus


Molopo shareholders have today lodged a request for Molopo to call an extraordinary general meeting of shareholders (EGM) to elect two new Board members, former Shell executive, Greg Lewin and Melbourne businessman, Mr Max Beck.

Should they be elected, the new Board members intend to execute targeted strategies to build shareholder value and to arrest the stagnation of the company and its share price. These strategies will see the company focus on the rapid development of its most valuable assets, including those in Canada, and maximizing value. In order to achieve these strategies, the company will apply its energies to accelerating production and minimizing costs, thereby extracting value from its existing asset base.

The shareholder group has been moved to take this action following a prolonged period of share price underperformance. It also reflects feedback from a broader group of shareholders who have expressed a lack of confidence in the existing Board.

Shareholders need the Board to develop and implement a credible plan to realize the value of the company?s assets within in a reasonable timeframe and without significant dilution in value for existing shareholders.

Molopo shareholder, Mr Max Beck, commented, ?This is not a step we have taken lightly. We made a friendly approach to the Board through the Chairman, Donald Beard on Wednesday 15 December but we did not receive a response within the agreed timeframe. We have called for an EGM because there is a strong desire for change and shareholders should be given the chance to decide for themselves.


?The market?s reaction to the company?s most recent major announcements reflects it?s skepticism about the Board and its ability to deliver.?

?Shareholders have heard enough excuses and Molopo needs a Board with a sense of urgency. It is time to generate value from the existing asset base by injecting new experience and bringing some hard nosed, commercial common sense to the Board?.

The EGM will consider a motion for board renewal to be effected by electing Mr Greg Lewin and Mr Max Beck to the Board of Molopo in place of existing directors, Chairman Donald Beard, and non executive director, Dr Bruce Hobday.

Mr Lewin, previously President of Shell Global Solutions has had over 30 years experience in the oil and gas industry. He is a non-executive director of Sasol Limited.

Mr Max Beck is a successful business man and major shareholder in Molopo. He has offered to join the Board to bring a strong commercial perspective and to act as a direct voice for shareholders. It is intended that his tenure on the Board would continue while the change in corporate focus is underway.




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Nerida Mossop
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