Jubilee Platinum and Sylvania Resources have entered into a Framework Agreement to form a smelting company and a separate tailings processing company. The companies intend to process and treat low grade and high chrome concentrate PGM resources on South Africa’s Bushveld Complex, which have previously been deemed uneconomic. Smelting and refining activities will be carried out using Jubilee’s ConRoast technology, with ownership split 70/30 in favour of Jubilee. The tailings company’s ownership will be split equally between both companies.

Sylvania’s current tailings and Northern limb operations in South Africa will not form part of the tailings company arrangement. Metallurgical testing of Sylvania’s tailings and in-situ PGM resources by Jubilee and Braemore Resources has already been completed and deemed that recovery through ConRoast is economic. Sylvania is currently undertaking an exploration program at its Northern Limb licences acquired in 2009. A Measured resource is expected within the first half of 2010 and the results will form the final component to the decision as to develop the smelting facility. Following a positive development agreement it is expected that the smelting operation will be commissioned within three years.

It is anticipated that the collaboration process will be concluded within three months such that both companies will be operational at that point. It is intended that Jubilee will conclude a licensing agreement with the smelting company in terms of which it will provide an irrevocable licence of the ConRoast technology to the smelting company.

It is intended that Sylvania will conclude a technology transfer agreement with the tailings company in which Sylvania will provide its know how and other technology in relation to tailings treatment. When the future operations of Sylvania require, the smelting company will fund and procure the construction of three ConRoast technology supporting furnaces, specifically designed for the roasting and smelting of Sylvania procured PGM concentrate. Each furnace is intended to have a capacity of nominal 10 MW rating and shall have associated roasting, infrastructure and refining equipment.

Sylvania will conclude an offtake agreement with the smelting company in terms of which Sylvania will make available to the smelting company all of its uncommitted PGM concentrate. The tailings company will also enter into an offtake agreement with the smelting company for all of its PGM concentrate.

Colin Bird CEO of Jubilee: “These new companies combine the joint operating capability of Jubilee and Sylvania to take PGM containing dump material into metal. The ongoing arrangement provides the platinum industry with a formidable total capability solution for the processing of PGM tailings and high chrome concentrates.”

Terry McConnachie Managing Director of Sylvania: “The formation of the joint venture companies offer Jubilee and Sylvania the benefit of fully exploiting the synergies offered by a mine to metal strategy free of the traditional constraints imposed on high chrome, or relatively low grade concentrates. This, in turn, is a significant step in unlocking the value of the assets acquired under the takeovers of Great Australian Resources and SA Metals last year.

“Any future platinum tailings processing opportunities will be jointly exploited combining Sylvania’s significant tailings treatment experience and Jubilee’s smelter technology and experience. This allows the combined entities to tackle new tailings projects that are not currently exploitable by either Sylvania or Jubilee individually.”