9 November 2009

Sephaku Cement launches Sephaku Ash to corner Eastern Gauteng market with cement extender product Sephaku Cement (Pty) Limited (“Sephaku Cement”), an 80.2% held subsidiary of Sephaku Holdings, recently received approval for an Environmental Impact Assessment from the Mpumalanga Department of Agriculture and Land Administration
by way of a Record of Decision (“ROD”) for the Delmas milling plant.

The ROD provides Sephaku Cement with the final go ahead to commence with construction on its proposed cement milling plant in Delmas, subject to raising the necessary funding.

Sephaku Ash, a division of Sephaku Cement, has concurrently commissioned phase 2 of the Fly Ash Facility at Eskom`s Kendal power station. Raw ash received from the power station can now be reclassified into finer particles known as unclassified Hard Ash and classified Smart Ash. The Hard Ash will be supplied to Sephaku Cement`s Delmas milling plant, where it will be added to the milling process producing extended cement. Sephaku Ash will also supply fly ash directly to the construction and ready mix markets, where a healthy initial interest for the product has been received.

Pieter Fourie, CEO of Sephaku Cement, commented, “The benefits from the Delmas milling plant, combined with the commissioning of the Fly Ash Facility, are two-fold. The cement product produced at the plant will have the extender element to it which improves the cost and quality of the cement and, secondly, the Fly Ash Facility becomes the second supplier of fly ash into the market. This should improve service and quality levels to the clients.”

At the Delmas plant, preliminary geotechnical studies have been completed to ascertain whether ground conditions are suitable for the construction of a milling plant. Additional geotechnical drilling and analysis are underway to determine the optimal positioning for the major structures of the plant. The site establishment is anticipated to begin in early 2010, subject to the conclusion of final funding agreements.

Management expects the plant to come into production within two years and to produce 1.2 million tons a year. Labour for the plant will sourced locally. It is anticipated that 150 temporary jobs will be created during the construction phase and 80 permanent jobs thereafter.

The increased supply of cement into the market in two years is in line with Sephaku Holdings` expectations of growth in the South African market, where Government is expected to continue the building of low cost housing as well as investing in increased infrastructure in areas such as power and water.

“We are well positioned to supply the eastern side of Gauteng, where currently we have a substantial logistics advantage over our competitors. Supplying on our door step will reduce our transport costs of the product,” Fourie concluded.

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Notes to Editors

About Sephaku Holdings

Sephaku Holdings is an HDSA-controlled, industrial mineral exploration, development and investment company, with a range of exploration projects including limestone, fluorspar, coal, tin, gold and nickel.

The business is primarily focused on the identification and acquisition of economically viable mineral projects and development of these prospects into full-scale mining projects.

The goal is to maintain an HDSA shareholding in excess of 50% in the long term. The company is therefore well placed to apply directly for new order mining rights and to partner with entities that do not have the requisite HDSA participation.

Sephaku Holdings` most advanced project, the `cement project`, is held by Sephaku Cement, an 80.2% subsidiary of Sephaku Holdings.