the 'real' story so far and plan of action

I have sat back silently this last week reading with much interest what has been said on this forum. Much of what I have read is subjective, misleading and demonstrates a complete lack of understanding of the complex nature of the Nkwe Platinum's corporate relationships and project history.

It is now time to provide this forum a clear accurate summary of the recent events and more importantly provide some insight into the actions currently being taken by Nkwe Platinum and its BEE partner Genorah to ensure the market is properly informed prior to returning from their voluntary trading suspension.

The following information has been sourced both independently and by receiving feedback from the main stakeholders of Nkwe Platinums Garatau and Tubaste Projects. This includes but is not limited to executive management of Nkwe, Genorah, Anglo PLC, Anglo Platinum, the SA Dept. of Minerals & Resources (DMR) and the related corporate advisers.

Following a complete review of all the facts that have been presented to me I am now very confident that NKP will emerge from this with the prospecting rights to all five farms maintained (De Kom, Garatouw in the north and Eerste Geluk, Nooitverwacht, Hoepakrantz in the south) and move towards signing a JV partner (most likely Anglo/African Rainbow) for the development of the flagship Garatau Project in the very near term.


Summary of what has happened these last two weeks.

1. It all began on 30 November when the Constitutional Court (Highest Court of South Africa) set aside the prospecting rights of Genorah on two farms on the southern Tubatse project, the Eerste Geluk and Nooitverwacht farms.

2. This occurred because the applicant in the case claimed to represent the local community and alleged that the DMR did not follow administrative procedures in the granting of prospecting rights to Genorah. More specifically they alleged that the local community were not properly consulted and the correct section 104 application which provides preferential review was not completed.

3. As a result of the Con Court's decision a number of media articles and internet forums incorrectly reported that the prospecting rights had in fact been granted to alternative groups. As stated above this is incorrect as the Con Court simply set aside Genorah's rights and returned them to the DMR for re-submission of application in accordance with the specified administrative procedures.

4. Subsequent to the Con Court's decision, according to Anglo Platinum Media Affairs, Anglo Platinum initiated a legal process by applying to the DMR for review of the rights to nine farms, five which were granted to Genorah, three to Bauba and one to the Sekhukhuni community.

5. At this point, after receiving an email response to this effect from the Media Affairs Dept. of Anglo Platinum (Johannesburg) Alex Cowie from Diggers and Drillers wrote an aftermarket update which appeared to be written out of sheer frustration that access to corroborative information on the current status of Nkwes rights were was near impossible to find. He then made the sell recommendation on NKP without consulting either Nkwe, Genorah and most importantly Anglo PLC (the parent and controlling entity of Anglo Platinum).

6. As stated on numerous occasions on this forum, its important to note that in February 2008 Anglo Platinum, African Rainbow, Genorah, Nkwe Platinum and the DMR released a joint announcement that an amicable decision was made to accept the Dept. Minerals and Energy (DME) granting of rights to Genorah and Nkwe. The announcement also stated that all parties would be entering into commercial negotiations to consider joint exploitation of their respective mineral resources.

7. The current legal process is to ensure that Anglo reserve their shareholders rights and aims to potentially look at remedies available outside of challenging the original award of the five farms to Genorah. It should in no way be misinterpreted as Anglo suing Nkwe or Genorah in a vain attempt to get back the five farms which make up the Garatau & Tubatse Projects.

8. In order to ensure that all shareholders are fully informed before making important investment decisions, NKP requested a trading halt then subsequent voluntary suspension pending clarification of all the issues and misinformation about the security of their tenure.

9. Peter Landau flew to Johannesburg on Wednesday last week to assist Maredi Mphahlele, Sharif Pandor and the other board members in expediting the following.


The current plan of action to be taken by Nkwe and Genorah.

1. The applicants in the Constitutional Court decision have allegedly falsely claimed to represent the local community. The real local community are in the process of seeking a High Court declaratory order that they are the rightful and proper community and that no other authority can claim total representation.

2. The real local community for the key Eerste Geluk farm (Roka Phasha-Phokwane Community) will release early next week a press release letter that states they are the acknowledged holder of surface rights. It will state that Genorah did in fact consult with the community extensively prior to the original application. The letter will also confirm their commitment to Nkwe and Genorah as their partner. It will also confirm that they have already re-submitted their section 104 application (preferential application) for prospecting rights in accordance with the Constitutional Courts directions.

3. The real local community for the Nooitverwacht farm will also prepare a similar press release.

4. At this point a press release from Anglo PLC (controlling parent of Anglo Platinum) should be released. This release will reconfirm Anglo's previously stated commitment to proactively work towards a commercial solution that would see an effective and timely development of the five farms. It will clarify to NKP shareholders the purpose of the 'legal process' initiated through Promotion of Administrative Justice Act (PAJA) and reassure them that it's not their intention to challenge NKP/Genorah's rights to the five farms.

5. Most importantly this release should alleviate any of the markets concerns as expressed by Alex Cowie in his Diggers and Drillers midweek update and reassure subscribers and shareholders that NKP and Genorah's tenure is and always has been secure.

6. The DMR and government remain extremely supportive of Genorah and Nkwe. The South African government is very aware that a timely resolution to this issue is paramount to maintaining stability to their mining industry.

7. I have been informed that the optimised Bankable Feasibility Study (BFS) for the Garatau Project is virtually complete and could be released when the stock recommences trading. The optimised numbers will further demonstrate the enormous value that is still to be realised in the Nkwe share price.

8. The stock will most likely remain suspended while the aforementioned releases are made. This will provide all shareholders the opportunity to digest the FACTS about their company before trading recommences.

9. The rumoured Joint Venture deal between Nkwe, Genorah, Anglo PLC/Platinum and African Rainbow is then the most likely outcome post the BFS release. The terms of this deal should prove far more attractive to NKP shareholders than a JV with Xstrata.

I know this has been a long post but as stated upfront, I had become tired of the volumes of misinformation in the market and felt a need for a concise summary for those shareholders who had become lost and confused in recent weeks. I hope this will restore some clarity for you. The issues will be resolved very soon and the significant value potential of your investment subsequently realised.