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Mintails owns the rights to process and extract gold, uranium and sulphuric acid from extensive tailings resources located on the West and East Rand regions of South Africa's historic Witwatersrand Basin.  Mintails controls these rights in respect of over 330 million tonnes of slimes, sands and rock tailings materials, mainly located on South Africa's historic West Rand and from its 50% joint venture share in over 1.5 billion tonnes of slime tailing materials located on the East Rand.

EAST RAND OPERATIONS

The Company's East Rand Operations comprise:

• 50% interest in ERGO Mines Joint Venture
• 100% interest in Far East Rand Operations

ERGO Mining Joint Venture ("ERGO JV")

The Company holds a 50% interest in the ERGO Mines Joint Venture which includes the Brakpan Plant and infrastructure, approximately 1.5 billion tonnes of East Rand tailings, mining rights, servitudes, piping and deposition capacity.  Feasibility studies currently being undertaken are fully funded and recommendations and cost estimates are expected by the end of 2009.  The Company is undertaking work to further delineate its resource estimates in the ERGO JV and conceptual targets for the East Rand tailings assets.  The first update on this process is scheduled for September 2009.

Mintails's partner in the ERGO Mining Joint Ventrue is DRDGold Limited. 

In December 2008 Mintails announced that it had reached agreement with DRDGold to complete the sale of the entire 50% stake in the Elsburg JV.  The sales consideration received was R333 million AUD 51.3m (ZAR 6.49 - 1 AUD) cash.  The proceeds of the sale was used to complete outstanding commitments to the Elsburg JV, ERGO JV and the balance was applied to fund the Company for its strategic objectives of 2009. The Elsburg Gold Joint Venture comprised approximately 171 million tonnes of JORC classified tailings and the use of one refurbished CIL (Carbon In Leach) circuit for the processing and extraction of gold. These tailings also contain JORC Classified Uranium of some 14.9 million lbs and 1.76m tonnes of Sulphur. Mintails, through its 50% stake in the ERGO Mining JV retains the benefit of these resources.

The settlement of the sale is anticipated to finalise in April and enables the Company to complete its recapitalisation objectives, providing a strong and stable financial base going forward.  The surplus allows for a net cash surplus of AUD 17 million at the end of May 2009.

The completion of the Elsburg Gold Joint Venture sale leaves the Company's substantial East Rand asset base intact with the sale of Elsburg representing approximately 10% of the existing ERGO JV tailings base.