Press announcement 10th October 2011
Village reaches settlement with Aberdeen International Inc, ("Aberdeen") in relation to the loan payable to Aberdeen
As previously reported to the shareholders of each of Village and Simmer and Jack, Mines Limited ("Simmers") in the circulars distributed to them on 2 March 2011, Simmers entered into an agreement with Aberdeen (the "Aberdeen Loan Agreement") during the latter part of 2005, whereby Aberdeen provided a loan facility of US$ 10 million to enable Simmers to acquire Buffelsfontein Gold Mines Limited ("BGM").

On 18 October 2008, Aberdeen delivered a notice to convert the amount outstanding under the Aberdeen Loan Agreement into Simmers shares.

This conversion, which required the approval of Simmers shareholders, was rejected by an 87.1% majority of the voteable shares present at the meeting of Simmers shareholders held on 16 February 2009.


Aberdeen maintained (which Simmers at the time contested) that pursuant to the terms of the Aberdeen Loan Agreement it remained entitled to the repayment of the loan amount of US$10 million and all interest payable on that loan amount, in addition to a 1% Net Smelter Royalty payable on all gold produced during the life of BGM (the "Aberdeen dispute").

As part of the acquisition of the majority of the Simmers assets by Village, Village assumed all liabilities that may arise under the Aberdeen Loan Agreement.

The Aberdeen dispute was referred to arbitration and was due to be heard on 10 October 2011.

The parties have however agreed to settle the Aberdeen dispute.

The parties to the Aberdeen dispute have agreed that Village will in full and final settlement pay to Aberdeen an amount of US$ 9 million as follows: .

US$ 4 million in cash on or before Monday 10 October 2011; and .

the balance of US$ 5 million plus interest thereon at the rate of 10% per annum from 10 October 2011 to date of payment, in five equal monthly instalments in cash, the first of which shall be payable on 25 October 2011. The remaining four instalments will be payable on the twenty-fifth day of each succeeding month; and .

the 1% Net Smelter Royalty to remain in effect Village will pay Aberdeen the amount due out of available cash reserves. ENDS About Aberdeen
Aberdeen International is a global resource investment corporation and merchant bank and is incorporated in terms of the laws of Ontario, Canada.


Contacts:
Village CFO | Marius Saaiman | |011 274 4603 |082 458 3420 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
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