GVM shareholders approve JV acquisitons

Perth-based coal miner GVM Metals Ltd has won shareholder approval to complete the 100 per cent acquisition of its Baobab joint venture and Holfontein project, the company announced today.

The company also announced the appointment of Nonkqubela Mazwai as an executive director and Nchakha Moloi as a non-executive director, after they won the support of shareholders at the meeting.

The full text of the shareholders meeting announcement is pasted below

The Directors of GVM (AIM/ASX/JSE) are pleased to advise that all resolutions considered at the General Meeting held 5 June 2007 were passed by shareholders.

The outcome of the meeting resulted interalia in the Company satisfying all the conditions precedent necessary to complete the acquisition of a 100% interest in the Baobab JV. and the Holfontein Project. This is a critical step forward in the Company's progress to becoming a significant coal producer.

The Company has placed 34,868,283 new ordinary shares in GVM ("Shares") to acquire the remaining a 51% interest in Holfontein, the remaining 50% interest in the Baobab Joint venture and 100% interest in additional Limpopo prospecting rights, with the respective vendors.

Application will be made for the 34,868,283 Shares to be admitted to trading on AIM.

Following the admission of the Shares the number of Ordinary Shares on issue will be 196,518,703.

In addition, a resolution was passed to issue 2,000,000 options exercisable at $1.25 each on or before 30 September 2012 to Richard Linnell and 5,000,000 options exercisable at $1.25 each on or before 30 September 2012 to Simon Farrell.

The current status of the Company's coal projects is set out below:

Mooiplaats

• An infill drilling program is underway to convert a portion of the current inferred resources to a minimum of 60 million tonnes in the measured and indicated category
• The inferred resource drilling program at Mooiplaats to date has covered approximately 7,000 Ha of the 20,000 Ha of the total property. Completion of this program has been suspended to conduct the above infill drilling as detailed above
• Indicative quotes from potential contractors have been received on the basis of supplying an initial six million tonnes per annum of domestic thermal coal to Camden power station
• The planned second phase of development is to produce approximately two million tonnes of anthracitic and export thermal coal per annum
• Production expected to commence Q3 2008

Limpopo Coal Project (Tuli Coalfield)

• Work set to commence Q3 2007 to upgrade and expand the inferred resource of 352 million tonnes to indicated and/or measured
• Bankable feasibility study to commence before the end of Q4 2007

Baobab Coal Project (Soutpansberg Coal Field)

• Work set to revalidate the previous drilling by Iscor/Kumba and bring theresources into JORC standard

Holfontein

• The measured resource statement and geological model is expected to be completed by the end of June 2007
• Production expected to commence Q3 2008

NiMag

• EBIT for the year to 30 June 2007 is expected to be in the range of Zar 42/45 million ($A7-8 million)

Simon Farrell, Managing Director, GVM Metals commented, "I am pleased to provide this positive update from the meeting. It is clear from the progress made at our projects that GVM is rapidly progressing towards our goal of becoming a major coal producer in South Africa."

The full text of the announcement of Nonkqubela Mazwai's appointment is pasted below

GVM Metals Ltd (GVM), a company with a primary listing on the Australian Stock Exchange and secondary listings on London's Alternative Investment Market and the Johannesburg Stock Exchange, today announced that it had appointed Nonkqubela Mazwai as an executive director and deputy managing director with immediate effect.

Nonkqubela has considerable experience in the mining and related industries having been a director of the following South African organizations:

• Lafarge Mining and Industries
• Central Energy Fund (Pty) Ltd
• Strategic Fuel Fund
• South African Mining Development Association (SAMDA)
• CIDA Empowerment Trust - Chairperson

Additionally, Nonkqubela has provided advisory services to blue chip companies such as Richards Bay Coal Terminal, Anglo American and De Beers as well as parastatals including Spoornet and Eskom. Nonkqubela has worked with the South African government's Department of Minerals and Energy on implementing mining legislation and the mining charter promoting the participation by previously disadvantaged South Africans in the mining industry.

Nonkqubela was CEO of Motjoli Resources (Pty) Ltd (Motjoli), a South African diversified mining company that is a significant shareholder in GVM. Motjoli entered into a transaction with GVM that has resulted in Motjoli reversing it's 51% interest in the Holfontein coal project and its interest in the Baobab coal joint venture for shares in GVM.

Simon Farrell, GVM's managing director said that Nonkqubela's appointment brings business expertise that will strengthen the company's ties to all South African stakeholders. He added that the company's asset base and future is centred in South Africa and, as such it was important to have Nonkqubela's insight and experience to help guide the strategic direction of GVM Metals into the future. He looked forward to a long and fruitful relationship between GVM and Nonkqubela.

The full text of the announcement of Nchakha Moloi's appointment is pasted below

GVM Metals Ltd (GVM), a company with a primary listing on the Australian Stock Exchange and secondary listings on London's Alternative Investment Market and the Johannesburg Stock Exchange, today announced that it had appointed Nchakha Moloi as a non-executive director with immediate effect. Nchakha has over 15 years
experience in the mining industry. He is currently the executive Chairman of Motjoli Resources, former Director General ­ Department of Minerals and Energy, and Director of the Minerals Development Board. Nchakha's appointment brings invaluable experience to the GVM board.