On 10 May 2011 CGNPC Uranium Resources Co., Ltd. ("CGNPC-URC") announced the withdrawal of its possible offer for Kalahari (that was announced on 7 March 2011). As a consequence of the announcement of 10 May 2011 CGNPC-URC was bound by both the restrictions of Rule 2.8, save for certain reservations detailed in that announcement, and of Note 2 on Rule 2.5 of the City Code on Takeovers and Mergers (the “Code”).

As a result of CGNPC-URC’s announcement on 10 May 2011, under Rule 2.8 of the Code CGNPC-URC is only permitted to announce an offer for the Company before 11 November 2011 with the agreement or recommendation of the Board of Kalahari, unless any of the other reservations contained in that announcement release CGNPC-URC from the restrictions of Rule 2.8 before 11 November 2011.

Following recent press speculation, Kalahari confirms it re-commenced discussions with CGNPC-URC and agreed to release CGNPC-URC from the restrictions of Rule 2.8 while these discussions are ongoing, with the intention of reaching agreement on a recommended offer for the entire issued share capital of the Company. 

However, these discussions may or may not lead to an offer being made.

Since more than 3 months have elapsed since the announcement by CGNPC-URC of the withdrawal of its possible offer, CGNPC-URC is no longer restricted by Note 2 on Rule 2.5 of the Code, to make an offer on the same or better terms as those in the announcement of 7 March 2011, and therefore there can be no certainty as to the terms of any offer should an offer be made.

In view of the fact that CGNPC-URC remains subject to Rule 2.8 of the Code until 11 November 2011, the Panel Executive has agreed that the 28 day deadline normally imposed by Rule 2.6(a) of the Code shall not apply at this stage.

In accordance with Rule 2.10 of the Code, the Company confirms that it has 250,765,894 ordinary shares of 1 pence each in issue.  The ISIN reference for these securities is GB00B117S132.

Enquiries:

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F: +44 (0) 20 7236 1188