Yep, that's right, 3 shiny new Chrome Washing Plants ("CWPs") at...

Yep, that's right, 3 shiny new Chrome Washing Plants ("CWPs") at Millsell, Steelpoort and Elandsdrift by the end of March (Millsell ALREADY constructed), and 3 PGM Recovery Plants ("PRPs") by June - the first to be completed in April!

This in addition to SLVs share of PGM recoveries at the existing Kroondal RK1 plant, which has proved such a successful testbed.

Remember, there are to be 13 plants, eventually.

While other companies do a lot of talking, SLV is quietly actually doing the job.


9 January 2007

SYLVANIA CONCLUDES ADDENDUM TO THE SERVICES AND SUPPLY CONTRACT WITH SAMANCOR

The Directors of Sylvania Resources Limited ("Sylvania") are pleased to announce that they have signed an Addendum to the Services and Supply Agreement with Samancor Limited ("Samancor"). The Addendum refines the Services and Supply Agreement with Samancor, the terms of which were previously outlined in an announcement dated 1 May 2006 and the AIM Admission Document dated 20 July 2006. The amendments contained in the Addendum are considered to be significant to Sylvania as they streamline a number of operational issues.

The key aspects of the Addendum include:

• The duration of the agreement has been extended to incorporate current arisings for the duration of the Samancor rights in respect of the specified mining areas;

• Sylvania may now construct its PGM Recovery Plants ("PRP") within the Samancor Mining Area;

• Sylvania is no longer obliged to remove tailings created after the PGM recovery process from the Samancor Mining Area and can now utilize the existing Samancor tailings facilities as directed by Samancor. The final rehabilitation responsibility rests with Sylvania;

• A number of amendments to and clarification of, clauses that will address operational and functional issues that have been identified between the parties since the original Agreement was signed.

The major significance of these amendments will be the removal of the time delays associated with negotiating and acquiring land, and the negotiating of the necessary environmental and other approvals for the establishment of the plant and tailings storage facilities at a new site.

Sylvania has established a Chrome Washing Plant ("CWP") at Millsell and plans to complete construction of additional CWP's at Steelpoort and Elandsdrift by March 2007. Significantly, the Addendum has enabled Sylvania to amend its Business plan to bring forward the establishment of three of its PRP plants to be constructed at Millsell, Steelpoort and Elandsdrift.

Construction of the Millsell PRP is now scheduled for completion by April 2007 as opposed to June 2007 originally. The Steelpoort PRP is currently scheduled to be completed by May 2007 as opposed to October 2008 originally, and construction of the Elandsdrift PRP is scheduled to be completed by July 2007 as opposed to March 2008 as originally planned.

The Board of Directors believe that the Addendum is a significant step in establishing and implementing the Company's strategy of developing new PRP's earlier than the previously defined time frames.

For further information please contact:

In South Africa

Terence McConnachie
CEO
Sylvania Resources Limited
(+27 11) 803 7214

In Australia

Grant Button
Executive Director
Sylvania Resources Limited
(+618) 9481 8711

In United Kingdom

Richard Brown
Ambrian Partners Limited
(+44) 20 7776 6417

Laurence Read/Leesa Peters
Conduit PR
(+44) 20 7429 6605/(+44) 20 7429 6600