BRE - Braemore Resources Plc - Operational Update

| Tue, 19 May 2009 11:49

BRE BRE - Braemore Resources Plc - Operational Update BRAEMORE RESOURCES PLC (A company incorporated in England and Wales with Registration Number 5350550) (South African registration number: 2008/013973/10) Share code on the JSE Limited: BRE Share code on AIM: BRR & ISIN: GB00B06GJQ01 ("Braemore" or "the Company") OPERATIONAL UPDATE Braemore Resources (AIM: BRR; JSE: BRE), together with its technology partner Mintek, has achieved the stated research and development programme objective of developing a proven, industry-leading technology for the smelting of high chrome Platinum Group Metals (`PGM') concentrates. Braemore is now at the point in its business strategy, which will allow the company to transform from a technology development company into a commercially viable entity on the back of its technology. The conclusion of the research into the PGM refining process, to complement the ConRoast smelting process, will enhance the commercial strength of the smelting process and is the final stage required to complete the research and development phase of the company. The company has also undertaken to restructure the demonstration smelting facility in response to current metal prices and a strengthening South African Rand ("Rand".). The company has experienced working cost increases in US Dollar ("Dollar") terms of some 12.5% within an eight week period whilst Dollar metal prices have remained static. This has put significant pressure on the company's working capital as it accelerated the conclusion of its research and development programme. The restructuring of the demonstration facility is targeted towards significant reductions in operating costs and reviewing the process units to better align with the proposed refining process. The process restructuring will be undertaken as swiftly as possible to minimise interruption to production at the demonstration unit. The refining process, once implemented, will increase the margins of the process to ensure strong commercial viability even at times of a strong Rand and low metal prices. The company has entered into discussions with various parties to support the financing of the commercialisation strategy both for the development capital to build a next stage ConRoast facility with refining capability as well as addressing the Company's short term working capital needs . In addition the company is well advanced in forming joint ventures with existing and near-term producers of PGMs to secure feed material for a fully commercial smelting and refining facility. Leon Coetzer, Chief Executive Officer, stated that Braemore is fulfilling its potential. "We have steadily met our targets and we are poised for expansion. Funding the commercialisation of ConRoast and refining process is key, and we believe that the success of the development work done to date with the demonstration smelter showcases our ability to address the financing, smelting and refining challenges within the platinum industry." Johannesburg 19 May 2009 Sponsor Sasfin Capital (a division of Sasfin Bank Limited) Date: 19/05/2009 10:15:01 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.