Press announcement 3 December 2010
Village receives improved upward valuation on Consolidated Murchison (Cons Murch) from Minxcon
- Valuation range now R207 million - R628 million from original R207 million - R438 million
Village today posted a circular to shareholders containing full details of the acquisition of the Cons Murch Mine, announced to the media on 7 November together with an executive summary of the independent Competent Persons Report of the mine, prepared by Minxcon (Proprietary) Limited.


The circular relates to Village entering into binding agreements with To The Point Growth Specialists and its affiliates in terms of which Village will: - indirectly acquire a 74% interest in Cons Murch Mine from To The Point for a total consideration of R30 million; - acquire certain rights under a mine management agreement with Cons Murch from To The Point for a total consideration of ZAR10 million; and - inject R20 million into Cons Murch,
The Competent Persons Report on Cons Murch, confirmed a 1.3 million ounce equivalent gold deposit.

The average grade over the life of mine of 11 years for antimony was confirmed at 2% and 2.45 g/t for gold.

Following further review the original upper end estimate of the valuation range of Cons Murch of R207 million - R438 million was valued higher at R207 million - R628 million.


The higher upper valuation estimate represents a total value for the Cons Murch project including the Residual Resource, which is the remaining resource or balance outside of the current life of mine plan of 11 years. Minxcon further estimated the middle range of Cons Murch at a value of R464 million.


The general meeting of Village shareholders will be held at 10:00 on Monday, 20 December 2010 at the offices of Macquarie First South Advisers, The Place, 1 Sandton Drive, Southwing, Sandown
A copy of the circular and the full independent Competent Persons Report in respect of the Cons Murch Mine is available on the Companys website hosted at www.villagemainreef.co.za
ENDS
Contacts: Village CEO, Bernard Swanepoel, ; 083 303 9922
Village COO, Dorian Wrigley, ; 011 484 5005, 082 493 2278 Vestor, Media and Investor Relations, Louise Brugman, ; 011 787 3015; 083 504 1186
Logo_sharper02 media & investor relations
louise brugman managing director T: +27 (0) 11 787 3015 C: +27 (0) 83 504 1186 E: www.vestor.co.za