Press Release 11 March 2010
Village Main Reef increases attributable inferred resources at Lesego to the total 21.3million ounces
- Acquires remaining minority interests in project - Acquires 77% economic participation in Lesegos Phosiri project
Village today announced that it has concluded the remaining binding agreements with certain additional shareholders and certain affiliated parties which will contribute an additional inferred resource of 3.8m ounces of platinum group metals (3PGMs plus gold) to the existing 17.5m ounces. The additional resource will be purchased for some R95 million to be settled through an issue of an additional 47 million ordinary shares in Village at a share price of 200 South African cents per share.

Together with the purchase of respective interests in the project announced earlier this year, Village now has binding agreements, subject to the fulfillment of certain conditions precedent to acquire a controlling interest in Lesego for a total purchase consideration of some R507 million. The entire consideration will be settled through the issue of some 253 million shares in Village at a share price of 200 South African cents per share.

In February 2010, Lesego commenced work on the bankable feasibility study for the Project which is expected to be completed within three years, before the end of 2012.

Village will leverage the benefits of R142 million of existing capital already raised from the Industrial Development Corporation (IDC) making the project fully funded for the BFS stage. Todays proposed transaction removes the pre-emptive rights previously held by minorities and will result in Village controlling and operating the entire resource of 21.3 million ounces, representing 72% of the total inferred resource of Lesego Platinum with the remaining 28% held by the IDC. Village will also hold 55% of Sweet Sensation, which holds the adjacent Eerste Regt prospecting right.

With Lesegos 45% holding in Sweet Sensation, the company will effectively hold 87.4% of the Eerste Regt Prospecting Right. In terms of the proposed transaction, Umbono, the broad-based BEE investment group will become the major shareholder with 46.2% in Village, contributing the majority BEE component to the 60% black owned company.

To The Point Growth Specialists (Pty) Ltd will dilute down from 41.7% to hold 2.1 % interest in the Company.

It will become entitled to a success fee equal to 1% of the total value of the proposed transaction which will be paid in ordinary shares in Village, at a share price of 200 South African cents per share.

The remainder of the share register will constitute Minex Projects, Sun Platinum Holdings, Jay and Jayendra, Sekoko and the Ncholo Family Trust.
Bernard Swanepoel, Director of Village commented, This transaction will give us a 77% economic control over the entire 21.3 million inferred resource at Lesegos Phosiri platinum project.

With the conclusion of the outstanding pre - emptive rights, the next step for shareholders is to approve what we believe to be a value enhancing deal at an upcoming general meeting.


Village will continue with its stated strategy to leverage off our anchor investment in Lesego and develop into a fully fledged precious metals company targeting early cash flow generative acquisitions.
ENDS See SENS announcement for further details on conditions precedent, change of control and future documentation
Notes to editors PGM ounces and grades referred to in this release are 3PGMs plus gold - Platinum (Pt), Palladium (Pd), Rhodium (Rh) and Gold (Au)
About Umbono
Umbono is broad-based BEE investment group focused on the natural resources sector in Southern Africa and North America.

Since 2005, Umbono has developed a "principal" portfolio of mining and exploration assets worth over $150m and has assembled a strong team of investment and mining sector professionals with offices in Johannesburg and Vancouver office.

Umbonos shareholders include two broad-based BEE trusts, the Inhlakanipho Trust which provides equity participation in mining projects for local communities with a focus on educational development schemes, and the Umholi trust that provides financial support for black youth.
About Lesego Situated approximately 300km north east of Johannesburg between the Anooraq Bokoni mine (ex Anglo Platinum Atok mine) and the Lonmin Limpopo mine, the Phosiri Platinum Project is potentially a world class platinum asset with a total inferred resource of 27.8m platinum group metal ounces (3PGMs plus gold).

The project boasts: .

- a high grade averaging of 6.43g/t 3PGMs plus gold .

- relatively wide Merensky and UG2 reefs at 1.47 meters and 1.18 meters respectively, and .

- a reasonably shallow dipping ore body of with a low dip of less than 12 degrees An independent SAMREC-compliant CPR prepared by Andy Clay on behalf of Venmyn dated 26 March 2008 is available for review on www.lesego.com together with additional information regarding the Project and Lesego.
Contacts: Investor and single largest shareholder in Village Main Reef Gold Company, Bernard Swanepoel, bernard@2tp.co.za; 0833039922 Vestor, Media and Investor Relations Louise Brugman, ; 083 504 1186
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louise brugman managing director T: +27 (0) 11 787 3015 C: +27 (0) 83 504 1186 E: