Randgold & Exploration Company Limited (“R&E”) issues update to shareholders

  1. R&E chairman, David Nurek, and CEO, Peter Gray, announced their resignation on 10 July and 11 July 2008 respectively.
  2. 2. In his capacity as acting chairman of R&E, independent non-executive director, David Kovarsky, today made the following announcement:
    1. As a consequence of the mediation process, R&E and JCI Limited (“JCI”) have been endeavouring to effect a merger of the companies since 23 April 2007.
    2. Regulatory approvals necessary for the proposed merger have not yet been secured.
    3. In the interim, the boards of R&E and JCI have been engaged in negotiations regarding a possible settlement between the companies however agreement has not yet been reached.
    4. The board of R&E will continue to pursue all options open to it, but cautions that the less attractive option of arbitration remains a distinct possibility, despite the costs and delays associated therewith.
  3. The R&E board has noted the website published by anonymous parties claiming to be R&E shareholders. The board disclaims the information contained on the website (other than where it records statements issued in the name of R&E) and in particular cautions shareholders not to be influenced by the speculative Net Asset Values contained on the website and refer shareholders to the Net Asset Value Statement (“NAV”) for the year ended 31 March 2007 published by R&E on 13 December 2007.
  4. R&E is currently preparing an information circular for shareholders which will contain an updated NAV statement and will inform shareholders of the actions being taken by it to recover shareholder funds from various third parties on the basis of ongoing forensic investigations.

Media Statement issued on 14 July 2008 by Brian Gibson Issue Management on behalf of Randgold & Exploration Company Limited.

Contact: Brian Gibson (011 880 1510 or 083 253 5988)

Posted in Company Announcements.