Pallighurst Rights Offering 2012

THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION.
The denitions contained on pages 19 to 27 of this Circular apply mutatis mutandis throughout this document.
1. If you are in any doubt as to what action you should take in relation to this Circular, please consult your broker, banker, CSDP, accountant, attorney,
or other professional advisor immediately.
2. If you have disposed of all your Shares, please forward this Circular to the acquirer of such Shares or to the broker, banker, CSDP or agent through
whom such disposal was effected.
3. The Company has issued all the Letters of Allocation in dematerialised form, which will be listed and tradable on the JSE. The electronic record
for BSX Shareholders and Certicated JSE Shareholders is being maintained by Computershare Nominees (Proprietary) Limited, a wholly-owned
subsidiary of Computershare Custodial Services Limited. This arrangement has ensured that BSX Shareholders and Certicated JSE Shareholders,
as the case may be, are afforded the same rights and opportunities as those afforded to Dematerialised JSE Shareholders. In order to take up or
dispose of all or part of the Rights Offer Shares to which you are entitled as a BSX Shareholder or Certicated JSE Shareholder, as the case may be,
you must complete the relevant Form of Instruction and return it to the South African Transfer Secretaries at the address and per the instructions
contained herein. Dematerialised JSE Shareholders will have their safe custody accounts at their broker or CSDP credited with their Letters of
Allocation.
4. The Rights that are represented by the Forms of Instruction could have value and may be sold on the JSE.
5. Rights Offer Shares in excess of a Shareholders Rights Offer Entitlement may be applied for by Shareholders.
6. The Rights Offer does not constitute an offer in any jurisdiction in which it is illegal to make such an offer and, in such circumstances, this Circular
and any Forms of Instruction are sent for information purposes only.
7. All times referred to in this Circular are South African times, using a 24 hour format (00h 00).
Action required by Shareholders
8. Shareholders are referred to page 6 of this Circular, which sets out the action required in relation to the Rights Offer.
PALLINGHURST RESOURCES LIMITED
(Previously Pallinghurst Resources (Guernsey) Limited)
(Incorporated in Guernsey)
(Guernsey registration number 47656)
(South African external company registration number 2009/012636/10)
Share code on the BSX: PALLRES ISIN: GG00B27Y8Z93 Share code on the JSE: PGL

CIRCULAR TO SHAREHOLDERS
relating to:
a renounceable Rights Offer that seeks to raise ZAR800 million through the issue of 357,142,857 Shares at an issue price of ZAR2.24 per Share in
the ratio of 75.06094 Rights Offer Shares for every 100 Shares held;
and incorporating:
the Revised Listing Particulars after the implementation of the Rights Offer;
and enclosing:
in the case of Certicated JSE Shareholders only, an applicable Form of Instruction; and
in the case of BSX Shareholders only, an applicable Form of Instruction.

Date of issue: 2 July 2012
Copies of this Circular, the Forms of Instruction and other documents referred to in paragraph 26 on page 51 of this Circular are only available in English
and may be obtained during normal business hours from the registered ofce of the Company, the ofces of the Investment Bank and JSE Sponsor and
the Transfer Secretaries, whose addresses are set out in the Corporate Information section of this Circular on pages 2 and 3.
Investment Bank JSE Sponsor Investment Manager
Legal advisors in South Africa Legal advisors in Guernsey Independent reporting accountant
2
CORPORATE INFORMATION
Directors Administrator
Brian Gilbertson Chairman
1
Arne H. Frandsen Chief Executive
Andrew Willis Finance Director
Stuart Platt-Ransom
2 3 4
Clive Harris
2
Martin Tolcher
2
Patricia White
2 4
Brian OMahoney
4
1
Executive Chairman.
2
Independent Non-Executive Director.
3
On 29 February 2012, Mr Platt-Ransom was appointed as the
Companys Lead Independent Non-Executive Director.
4
On 29 February 2012, Ms White was appointed as a Director,
and Mr OMahoney was appointed as Permanent Alternate to
Mr Platt-Ransom and Ms White.
Legis Fund Services Limited
(Registration number 19606)
11 New Street
St Peter Port
Guernsey
GY1 2PF
Registered Ofce Registered Ofce in South Africa
Pallinghurst Resources Limited
11 New Street
St Peter Port
Guernsey
GY1 2PF
Nexia SAB&T
119 Witch-Hazel Avenue
Highveld Technopark
Centurion
0046
South Africa
Investment Manager Investment Bank and JSE Sponsor
Pallinghurst (Cayman) GP L.P.
(Registration number WK19200)
Walker House, 87 Mary Street
George Town
Grand Cayman
KY1-9002
Cayman Islands
Investec Bank Limited
(Registration number 1969/004763/06)
100 Grayston Drive
Sandown
Sandton
2196
South Africa
Investment Advisor (London) Investment Advisor (South Africa)
Pallinghurst Advisors LLP
(Registration number OC315855)
54 Jermyn Street
London
SW1Y 6LX
United Kingdom
Pallinghurst Advisors (Pty) Limited
PO Box 12160
Die Boord
Western Cape, 7613
South Africa
3
Legal Advisor (Guernsey) Legal Advisor (South Africa)
Mourant Ozannes
1 Le Marchant Street
St Peter Port
Guernsey
GY1 4HP
Channel Islands
Edward Nathan Sonnenbergs
150 West Street
Sandown
Sandton
2196
South Africa
South African Transfer Secretaries Independent reporting accountant
Computershare Investor Services (Proprietary)
Limited
Ground Floor
70 Marshall Street
Johannesburg
2001
South Africa
Nexia SAB&T Incorporated
Highveld Technopark
Centurion
0046
South Africa
BSX Sponsor Auditor
Capital G BSX Services Limited
25 Reid Street
4
th
Floor
Hamilton
HM11
Bermuda
Saffery Champness Chartered Accountants
PO Box 141
St Peter Port
Guernsey
GY1 3HS
Channel Islands
Bankers in Guernsey
Investec Bank (Channel Islands) Limited
(Registration number 5845)
PO Box 188
Glategny Court
Glategny Esplanade
St Peter Port
Guernsey
GY1 3LP
Place of incorporation Date of incorporation
Guernsey 4 September 2007
Date of registration as an external company in South Africa
26 June 2009
4
FORWARD-LOOKING STATEMENTS
Excluding the statements of historical fact relating to the Group and the Company, certain information
contained in this document constitutes forward-looking statements. Forward-looking statements are frequently
characterised by words such as plan, expect, project, intend, believe, anticipate and other similar
words or statements that certain events or conditions may or will occur. Forward-looking statements
are based on opinions and estimates on the Last Practicable Date and are subject to a variety of risks and
uncertainties and other factors detailed elsewhere in this Circular that could cause actual events or results to
differ materially from those projected in the forward-looking statements. These factors include the inherent
risks involved in investing in unlisted entities, the uncertainties surrounding political, environmental and other
factors beyond the control of the Group, the uncertain nature of the Groups investments, the possibility of
project cost overruns or unanticipated costs and expenses, uncertainties relating to the availability and costs
of nancing needed in the future and other factors described herein. Although the Company believes that
the expectations reected in such forward-looking statements are reasonable, no assurance can be given
that such expectations will prove to be accurate. The Company undertakes no obligation to update forward-
looking statements if circumstances, estimates or opinions change. The reader is cautioned not to place
undue reliance on forward-looking statements.
5
TABLE OF CONTENTS
Corporate information Inside front cover
Forward-looking statements 4
Action required by Shareholders 6
Salient features of the Rights Offer 9
Questions and answers regarding the Rights Offer 16
Salient dates and times 18
Denitions 19
Circular to Shareholders 28
1 Introduction 28
2 Successfully completed Pre-Placement 30
3 Rights Offer 30
4 Rationale for the Rights Offer 31
5 Particulars of the Pre-placement 32
6 Particulars of the Rights Offer 34
7 JSE listings 42
8 Financial effects of the Rights Offer 42
9 Information on the Company 42
10 Directors interests 43
11 Share capital 45
12 Details of major Shareholders 46
13 Pro forma Income Statement and Balance Sheet 46
14 Historical nancial information 47
15 Trading history of Shares on the JSE 47
16 Material contracts 47
17 Investment Manager's Benet 47
18 Statement of indebtedness and loans receivable 47
19 Litigation 48
20 Contingent liabilities and contingent assets 48
21 Commitments 48
22 Material changes 49
23 Directors' responsibility statement 50
24 Costs 50
25 Consents 50
26 Documents available for inspection 50
ANNEXURE I HISTORICAL FINANCIAL INFORMATION 52
ANNEXURE II PRO FORMA BALANCE SHEET AND INCOME STATEMENT 100
ANNEXURE III INDEPENDENT REPORTING ACCOUNTANTS ASSURANCE
REPORT ON THE UNAUDITED PRO FORMA FINANCIAL
EFFECTS 103
ANNEXURE IV THE COMPANYS TRADING HISTORY ON THE JSE 106
ANNEXURE V TABLE OF ENTITLEMENTS 108
ANNEXURE VI REVISED LISTING PARTICULARS 109
APPENDIX I EXTRACT FROM THE ARTICLES OF INCORPORATION 152
APPENDIX II MATERIAL CONTRACTS OF THE COMPANY 158
APPENDIX III DIRECTORS INTERESTS 161
IN THE CASE OF BSX SHAREHOLDERS, A FORM OF INSTRUCTION (ENCLOSED)
IN THE CASE OF CERTIFICATED JSE SHAREHOLDERS, A FORM OF INSTRUCTION (ENCLOSED)
6
ACTION REQUIRED BY SHAREHOLDERS
Please take careful note of the following provisions regarding the action required by Shareholders:
1. if you are in any doubt as to what action you should take in connection with this Circular, please consult
your broker, banker, CSDP, accountant, attorney or other professional advisor immediately;
2. if you have disposed of all your Shares, please forward this Circular to the acquirer of these Shares or to
the broker, banker, CSDP or agent through whom the disposal was effected; and
3. shares in companies listed on the JSE can no longer be traded on the JSE unless they have been
Dematerialised through the Strate System. It is therefore recommended that Certicated Shareholders
on the South African Register dematerialise their Documents of Title and replace them with electronic
records of ownership. In this regard, Certicated Shareholders may contact any broker or CSDP,
details of which are available from Strate at [email protected] or telephone +27 11 759 5300 or facsimile
+27117595500.
DEMATERIALISED JSE SHAREHOLDERS
will NOT receive a printed Form of Instruction, however will have their account credited by their broker
or CSDP with the number of Rights to which they are entitled;
should timeously instruct their broker or CSDP as to whether they wish to take up, dispose of, or renounce,
as the case may be, all or part of the Rights allocated to them; or to apply for Excess Rights Offer Shares, in
accordance with the terms of the custody agreement entered into between them and their broker orCSDP;
who do not issue instructions to their broker or CSDP, will result in the broker or CSDP acting in
accordance with the original mandate granted in the custody agreement entered into between them and
their broker or CSDP;
should note that CSDPs effect payment on a delivery versus payment basis; and
should note that the Company assumes no responsibility and will not be held liable for any failure on
the part of their broker or CSDP to notify Shareholders of the Rights Offer and to receive instructions in
regard thereto.
CERTIFICATED JSE SHAREHOLDERS
In order to afford Certicated JSE Shareholders the same rights and opportunities as those afforded to
Dematerialised JSE Shareholders, Certicated JSE Shareholders:
will have a Letter of Allocation created in electronic form with Computershare Nominees (Proprietary)
Limited;
will receive a printed Form of Instruction (which states that such Form of Instruction will apply only to
Certicated JSE Shareholders), providing for the take up, disposal or the renunciation, as the case may
be, of all or part of the Rights embodied in the Letter of Allocation and the application for Excess Rights
Offer Shares, and must act timeously in accordance with the instructions contained therein;
7
who wish to take up all or part of the Rights allocated to them, and/or apply for Excess Rights Offer
Shares, must complete blocks 5 to 7 of the Form of Instruction, attach their cheque or bankers draft for
the appropriate amount and lodge same with the South African Transfer Secretaries as follows:
Hand deliveries to: Postal deliveries (at the risk of the holder) to:
Computershare Investor Services Computershare Investor Services
(Proprietary) Limited (Proprietary) Limited
Ground Floor PO Box 61763
70 Marshall Street Marshalltown
Johannesburg 2107
2001
so as to reach the South African Transfer Secretaries by no later than 12h00 on Friday, 20 July 2012;
will receive share certicates pertaining to the Rights Offer Shares taken up unless they elect in the section
Share issue instruction of the Form of Instruction to receive the Rights Offer Shares in Dematerialised
form and stipulate a CSDP account for such purpose;
will only be able to trade their Rights Offer Shares on the JSE once they have been Dematerialised;
in order to allow the South African Transfer Secretaries sufcient time to dispose or procure the sale of the
Rights on the JSE, Certicated Shareholders need to send such instruction to the Transfer Secretaries
by no later than 12h00 on Friday, 13 July, 2012;
who wish to renounce all or part of the Rights allocated to them in terms of the Rights Offer should
complete the relevant section of the Form of Instruction and return it timeously to the South African
Transfer Secretaries in accordance with the instructions contained therein so as to reach the South
African Transfer Secretaries by no later than 12h00 on Friday, 20 July, 2012;
Subject to the Exchange Control Regulations outlined in paragraph 6.9 on page 40 hereafter, proceeds,
net of costs, from the sale of Rights will be remitted to such Certicated JSE Shareholders as soon as
practicable, provided that if the net proceeds from the sale of Rights in relation to any such Certicated
JSE Shareholder are less than ZAR20.00, they will be retained for the benet of the Company;
should note that none of the Company, Computershare Nominees (Proprietary) Limited, the South African
Transfer Secretaries or any broker appointed by them will have any obligation or be responsible for any
loss or damage whatsoever in relation to the receipt of Forms of Instruction by post or arising out of the
timing of such disposals, the price obtained or any failure to dispose of such Rights; and
the surrender of share certicates will apply only to Certicated Shareholders.
BSX SHAREHOLDERS
The Rights Offer will NOT be undertaken on the BSX. Accordingly, in order to afford BSX Shareholders the
same rights and opportunities as those afforded to JSE Shareholders, the Rights Offer will be made on the
same terms and conditions to BSX Shareholders, who:
will have a Letter of Allocation created in electronic form with Computershare Nominees (Proprietary)
Limited;
8
will receive a printed Form of Instruction providing for the take-up, disposal or the renunciation, as
the case may be, of all or part of the Rights embodied in the Letter of Allocation and the application
for Excess Rights Offer Shares, and (subject to Exchange Control Regulations) must act timeously in
accordance with the instructions contained therein;
wish to take up all or part of the Rights allocated to them and/or subscribe for Excess Rights Offer
Shares, must complete blocks 5 to 7 of the Form of Instruction and attach their cheque, bankers draft
or EFT swift reference number for the appropriate Rand amount and lodge same with the South African
Transfer Secretaries as follows:
Johannesburg 2107
2001
so as to reach the South African Transfer Secretaries by no later than 12h00 on Friday 20 July 2012.
Relevant banking details for any EFT payments are provided on the Form of Instruction. All payments,
whether by EFT, cheque or bankers draft MUST be in Rand otherwise the Form of Instruction, will not be
valid and no action will be taken by the South African Transfer Secretaries in respect of the accompanying
Form of Instruction. All non-Rand amounts received by the South African Transfer Secretaries will be
refunded to the relevant BSX Shareholder net of any applicable costs, following the Closing Date;
will only be able to trade their Letters of Allocation on the JSE;
wish to dispose of or renounce all or part of the Rights allocated to them in terms of the Rights Offer,
should complete the relevant section of the Form of Instruction and return it timeously to the South
African Transfer Secretaries in accordance with the instructions contained therein so as to reach the
South African Transfer Secretaries by no later than 12h00 on Friday 13 July 2012 in order to allow
the South African Transfer Secretaries sufcient time to procure the sale of those Rights on the JSE
before the Closing Date. Proceeds, net of costs, from the sale of Rights will be remitted to such BSX
Shareholders as soon as practicable, subject to Exchange Control Regulations, provided that if the net
proceeds from the sale of Rights in relation to any such BSX Shareholder are less than ZAR20.00, they
will be retained for the benet of the Company;
should note that none of the Company, Computershare Nominees (Proprietary) Limited, the South African
Transfer Secretaries or any broker appointed by them will have any obligation or be responsible for any
loss or damage whatsoever in relation to the receipt of Forms of Instruction by post or arising out of the
timing of such disposals, the price obtained or any failure to dispose of such Rights; and
will receive Shares on the JSE, to the extent they follow their Rights, which they may, at their own
election, transfer to the BSX Register, subject to Exchange Control Regulations.
9
SALIENT FEATURES OF THE RIGHTS OFFER
This section provides an overview of the Rights Offer and should be read in conjunction with the Circular.
1. INTRODUCTION
Since the Companys successful Initial Public Offering in September 2007, the Investment Manager
has targeted so-called unloved assets; those with signicant unrealised value and growth potential.
Such investments are typically overlooked and undervalued for a number of different reasons such
as the particular sector losing favour with investors, lack of strategic direction, nancial hardship or
poor performance of the management team or board of directors. Upon acquisition, the Investment
Manager actively manages the investment, setting a new vision, focus and strategic direction for these
investments, as well as providing managerial, nancial and operational support. Through this active
and hands-on approach, the Investment Manager aims to transform the investments into attractive and
valuable assets, with the aim of realising the assets at the appropriate time to deliver superior returns.
Since the IPO, the Investment Manager has consistently underlined that it allows for a ten year
investment horizon for each investment, which provides the necessary time to implement fundamental
transformations of the investments and to unlock their full value potential. Typically, the rst ve years are
used to establish and implement the revised strategic plans, and the second ve year period is used to
optimise the exit value. In order to maximise returns, it is important that sufcient exibility be built into
the timing of the exit.
Although the Companys four Investment Platforms are currently at different stages of development, they
are all well positioned and on track to achieve the strategic objectives set by the Investment Manager
at the time of the initial investment. The Coloured Gemstones and Platinum Group Metals are the two
platforms most advanced in their development, with many of their original strategic goals already met.
Each has become increasingly attractive as an investment proposition, evidenced by the more than ten-
fold increase in the Gemelds share price over the past few years, as well as the impending consolidation
of the Platinum Group Metals interests and the ZAR3.24 billion investment therein by the Industrial
Development Corporation of South Africa. Even as these two Investment Platforms are poised to enter
the harvesting period, the Investment Manager believes that there remains further valuation upside to
be achieved and suitable market conditions to be prevailing, before an exit should be contemplated.
In the interim, the next phase of development for these Investment Platforms will likely be made from
their existing cash reserves and accordingly it is not expected that they will require further funding from
theCompany.
Faberg has built on its successful relaunch in September 2009, unveiling a number of ne jewellery
collections and expanding its retail presence across the globe to include Geneva, London, New York
and Hong Kong. In order to fund this expansion phase and enable further implementation of its value-
creating strategy, Faberg is undertaking a capital raising, which may take the form of equity or debt.
The Company has allocated US$25-30 million (ZAR202-243 million)
1
of the Rights Offer proceeds as to
the Companys participation in the Faberg capital raising.
10
The Companys Steel Making Materials platform is also to be expanded further, both within the existing
Jupiter investment and potentially into a coal opportunity. A further US$25-35 million (ZAR202-283million)
1

has been allocated to the Companys participation in the ongoing support of the Steel Making Materials
Investment Platform.
As the original portfolio enters the mature stage, the management time commitment to those platforms
is likely to be reduced. This will free up management resources allowing focus on new areas of growth
and shareholder value creation. The Investment Manager therefore intends to actively pursue a number
of attractive new investment opportunities it has identied. This is likely to include a copper investment,
which if successfully completed will form the base for a fth Investment Platform. For this purpose, the
Company has allocated US$40-50 million (ZAR324-404 million)
1
of the Rights Offer proceeds.
As a principle, the Company only raises capital when there is specic use for the funds, such as
participating in identied new investment opportunities, or in order to support its existing Investment
Platforms, such as Faberg and Steel Making Materials. It is of particular importance that the Company
continue to follow its rights in its four existing Investment Platforms in order to protect its investment
value, avoid value destructive dilution and support the development of its strategic plan. Accordingly, the
Directors believe that it is the right time, and in the best interests of the Company and its shareholders,
to raise additional funds for the Company.
Whilst the merits of debt and equity funding have been evaluated, given the current volatile market
conditions as well as the developing nature of the Companys investment portfolio, the Directors do
not consider the introduction of debt funding a viable or appropriate option for the Company at this
time. Accordingly, the Directors believe that the best course of action to meet the Companys current
needs and strategic objectives is to raise incremental equity capital, and therefore have approved the
RightsOffer.
The Rights Offer seeks to raise ZAR800 million through the issue of up to 357,142,857 Rights Offer
Shares at the Rights Offer Price of ZAR2.24 per Rights Offer Share in the Rights Offer Ratio of 75.06094
Rights Offer Shares for every 100 Shares held on the Record Date.
This Circular and the accompanying Forms of Instruction (if applicable) serve to:
provide Shareholders with information pertaining to the Rights Offer; and
enable Shareholders to take up, dispose of and/or renounce all or part of their Rights as well as
apply for Excess Rights Offer Shares under the terms of the Rights Offer in accordance with the Act
(to the extent applicable), Guernsey Law, the Companys Articles of Incorporation and the Listings
Requirements.
The Forms of Instruction contain details of the Rights to which Certicated JSE Shareholders and BSX
Shareholders, as the case may be, are entitled, as well as the procedures for the take-up, disposal or
renunciation of such Rights and/or the application for Excess Rights Offer Shares. Dematerialised JSE
Shareholders will be advised by their broker or CSDP of their Rights Offer Entitlement as well as the
procedure for the take-up, disposal or renunciation of such Rights and/or the application for Excess
Rights Offer Shares.

1
The ZAR amounts indicated may uctuate as a result of the exchange rate used. The ZAR amounts above have been calculated using an
exchange rate of US$1:ZAR8.09, the rate at 31 December 2011.
11
2. SUCCESSFULLY COMPLETED PRE-PLACEMENT
In order to ensure the success of the Rights Offer and to enable participation in the current Faberg capital
raising, the Company has concluded the Pre-placement with existing shareholders in advance of the
Rights Offer, whereby the Pre-placement Participants, under the terms of the Subscription Agreements
subscribed for 187,647,650 Rights Offer Shares at the Rights Offer Price, for an aggregate consideration
of approximately ZAR420.33 million, representing 52.54% of the total Rights Offer Shares available in
the Rights Offer. The proceeds of the Pre-placement have been received by the Company and the Firm
Placed Rights Offer Shares shall be issued to Pre-placement Participants on Monday, 23 July 2012. In
consideration for the Pre-placement Participants subscribing for the Firm Placed Rights Offer Shares,
each Pre-placement Participant was paid the Pre-placement Fee. Please refer to paragraph 5.2 of the
Circular for furtherdetails.
Accordingly, over half of the ZAR800 million sought to be raised in the Rights Offer has already been
received by the Company from existing shareholders, indicating a rm support for the strategic direction
of the Company as well as the Rights Issue. The Pre-placement will enable the Group to participate in
the Faberg capital raising. In addition, the Directors of the Company and Partners of the Investment
Manager have indicated that they will subscribe for their collective 4.71% pro rata entitlement of the
Rights Issue, increasing the rm commitments to the Rights Issue to 57.25%.
3. RIGHTS OFFER
In accordance with the Articles of Incorporation, the Company will implement the Rights Offer to each
Shareholder, on the same terms and conditions. Furthermore, whilst no rights of pre-emption exist, the
Company will implement the Rights Offer by providing each Shareholder with a Rights Offer Entitlement.
The Rights Offer will be implemented on the JSE and in Rand only and will be made to all Shareholders
who, for the avoidance of doubt, will include BSX Shareholders who will be able to participate in the
Rights Offer in the same manner as JSE Shareholders.
Shareholders are entitled to take up such number of Rights Offer Shares equal to their Rights Offer
Entitlement. Accordingly, all Shareholders will be afforded the opportunity to participate in the Rights
Offer and all Rights Offer Shares issued pursuant to the Rights Offer will be listed on the JSE.
The section headed Action required by Shareholders sets out the action to be taken by Shareholders in
relation to the Rights Offer. In addition, BSX Shareholders and Certicated JSE Shareholders are referred
to the Form of Instruction which details the procedures for the take-up, disposal or the renunciation of
Rights and/or the application for Excess Rights Offer Shares. Dematerialised JSE Shareholders will be
advised by their broker or CSDP of the Rights to which they are entitled as well as the procedure for the
take-up, disposal or renunciation of such Rights.
4. TERMS OF THE RIGHTS OFFER
The Company is seeking to raise ZAR800 million through the issue of up to 357,142,857 Rights Offer
Shares at the Rights Offer Price of ZAR2.24 per Rights Offer Share. The Rights Offer Price represents a
25% discount to the 10-day VWAP of a Share listed on the JSE on 29March 2012, the day on which the
Rights Offer Price was determined.
12
Shareholders will have the right to subscribe for 75.06094 Rights Offer Shares for every 100 Shares held
by them on the Record Date, and Shareholders holding fewer than 100 Shares will receive entitlements
in accordance with the table of entitlements contained in Annexure V to this Circular.
Fractional entitlements to Rights Offer Shares resulting from the Rights Offer will be rounded down to
the nearest whole number if they are less than 0.5 and will be rounded up to the nearest whole number
if they are equal to or greater than 0.5.
Detailed particulars of the Rights Offer are contained in paragraph 5 on page 32 of this Circular.
5. RATIONALE FOR THE RIGHTS OFFER
The Directors believe that it is the right time to raise additional equity capital for the Company. This
will enable the Company to support its investments in the existing Investment Platforms, but also to
potentially create signicant shareholder value by participating in new investment opportunities.
Faberg has made signicant progress since the Company made its rst investment in 2007. Despite
the short period since Fabergs relaunch in September 2009, it has already achieved a number of key
milestones. Faberg continued its introduction of high quality collections with a number of critically
acclaimed launches during 2011, with more planned for the second half of 2012. Fabergs retail presence
has expanded to include Geneva, London, New York and Hong Kong. Faberg has been successfully
repositioned in the upper echelon of the luxury sector and now has an expanded product offering and
retail footprint. Faberg is seeking a further capital injection which will enable further development of its
value-creating strategy. The Directors have allocated US$25-30 million to participate in Fabergs capital
raising, which may take the form of equity or debt, to protect its investment and support the next phase
of development of its strategic plan.
The Companys Steel Making Materials platform has also been in a capital intensive phase, building
South Africas newest open pit manganese mine at Tshipi Borwa and this is expected to continue as
Jupiter progresses its feasibility studies on Mount Mason and Mount Ida. The Steel Making Materials
strategy is about developing a platform to supply the key raw materials required for the production of
steel, in particular manganese, iron ore and coking coal. A further US$25-35 million has been allocated as
the Companys participation to the ongoing support of the Steel Making Materials Investment Platform,
which may include a new investment in one or more coal assets.
The Investment Manager has also identied a new copper investment opportunity in southern Africa,
comprising both producing assets and others close to production. It is anticipated that this investment
would be made in conjunction with the Pallinghurst Co-Investors, and the Groups share is likely to be
approximately US$40-50 million.
Gemelds is now a market leader in the emerald sector and is well advanced in its strategy to become
the worlds leading coloured gemstone producer. It is about to apply its successful business model to
rubies, having recently acquired a world class deposit in Mozambique. Gemelds also delivered record
breaking auction results during 2011, with net prot after tax for the six months to 31 December 2011
of US$22 million, higher than the record prots of the prior full year. Gemelds is unlikely to require any
further capital expenditure and the Company does not plan to allocate any of the Rights Offer proceeds
to Gemelds. It is possible that Gemelds may begin to return funds to its shareholders, including the
Group, in the next few years.
13
When making the rst investment into the PGM sector, the Company did so with the aim of facilitating
the consolidation of three contiguous properties, creating an attractive and valuable major new industry
player. Such combined entity would benet from a long life and low cost of production. On 29 March
2012, an important announcement conrmed the planned consolidation of the four PGM assets in which
Pallinghurst has invested. It also reported the acquisition of a 16.2% stake in the consolidated vehicle
(NewCo) for an investment of ZAR3.24 billion by the Industrial Development Corporation, the prominent
South African sovereign investor. This is a tangible validation of our PGM vision and conrmation of
the signicant progress of our PGM strategy. Post the investment by the IDC, the consolidated vehicle
should not require any further investment by the Company and no Rights Offer funds are planned to be
allocated to the PGM strategy.
6. SALIENT STATISTICS OF THE RIGHTS OFFER
Rights Offer Price ZAR2.24
Number of Shares in issue on the Last Practicable Date 475,803,860
Number of Shares to be issued pursuant to the Rights Offer
1
357,142,857
Number of Shares in issue immediately following completion of the Rights Offer
1
832,946,717
Shares ZAR
Gross Rights Offer proceeds receivable by the Company before expenses 357,142,857 800 million
Subscriptions and commitments received from Pre-placement Participants 187,647,650 420 million

1
Assuming all Rights Offer Shares are taken up and/or otherwise allocated in the Rights Offer
7. APPLICATIONS FOR EXCESS RIGHTS OFFER SHARES
Rights Offer Shares which are not taken up by Shareholders in accordance with such Shareholders Rights
Offer Entitlements will be available to Shareholders who wish to apply for Excess Rights OfferShares.
The right to apply for Excess Rights Offer Shares is transferable on renunciation.
Dematerialised JSE Shareholders who wish to apply for Excess Rights Offer Shares should instruct their
broker or CSDP in terms of the custody agreement entered into between them and their broker or CSDP,
as to the number of Excess Rights Offer Shares for which they wish to apply.
Certicated JSE Shareholders and BSX Shareholders who wish to subscribe for Excess Rights Offer
Shares should indicate their intention in their respective Forms of Instruction.
An announcement will be released on SENS on or about Monday, 23 July 2012, containing the results
of the Rights Offer and the basis of allocation of any Excess Rights Offer Shares for which application
ismade.
The pool of Rights Offer Shares available to meet Excess Rights Offer Share applications will be dealt
with as follows:
Rights Offer Shares available for allocation to Excess Rights Offer Share applicants will be
allocated by the Directors in an equitable manner, taking cognisance of the number of Shares
held by the relevant Shareholders immediately prior to such allocation and will include the
Rights Offer Shares taken up by such relevant Shareholders, with the Directors decision
being nal and binding; and
14
Excess Rights Offer Shares will only be available for allocation to Excess Rights Offer Share
applicants in the event of and to the extent that the number of Rights Offer Shares is greater
than the aggregate of the number of Rights Offer Shares taken up by Shareholders and/or
their renouncees, following the Closing Date.
Cheques and/or refunding of monies in respect of unsuccessful applications for Excess Rights Offer
Shares by Certicated JSE Shareholders will be posted to the relevant applicants, at their risk, on or
about Wednesday, 25 July 2012 and Dematerialised JSE Shareholders will have their accounts at their
broker or CSDP credited on/or about such date. Interest shall not be paid on monies received in respect
of unsuccessful applications for Excess Rights Offer Shares received from Shareholders.
8. FOREIGN RESTRICTIONS
Rights Offer Shares will not be registered under the securities laws of Canada or the United States.
Accordingly, Rights Offer Shares are not being offered to Shareholders with registered addresses in
those countries, to whom this Circular has been sent for information purposes only. Rights attributable
to such Shareholders will, if a premium can be obtained over the costs associated with a disposal, be
disposed of on the JSE for the benet of such Shareholders as soon as practicable. However, if the
net proceeds of such disposal is less than ZAR20.00, it will be retained for the benet of the Company.
No Form of Instruction will be sent to Shareholders who have registered addresses in Canada or the
United States, unless, in certain circumstances, the Company deems that such a Shareholder has
satised the Company that an allotment is allowed under permissible exemption to the securities laws
on thosejurisdictions.
For the purposes of the above, United States means the United States of America (including the
States and District of Columbia), its territories, its possessions and all areas subject to its jurisdiction
and United States person means a citizen or resident of the United States, a corporation, partnership
or other entity created or organised in or under the laws of the United States and an estate or trust, the
income of which is subject to United States Federal Income Taxation, regardless of its source.
This Circular does not incorporate an offer in any jurisdiction in which it is illegal to make it, and, in
those circumstances, this Circular and any attached Form of Instruction has been sent for information
purposesonly.
9. FINANCIAL EFFECTS OF THE RIGHTS OFFER
A summary of the unaudited pro forma nancial effects of implementing the Rights Offer is set out in the
table below. In this context, it has been assumed that the Rights Offer was implemented with effect from
1 January 2011 and 31 December 2011 for income statement and balance sheet purposes, respectively.
The Directors are responsible for the preparation of the unaudited pro forma nancial effects. The pro
forma nancial effects set out below and the unaudited pro forma income statement and balance sheet
of the Group (attached in Annexure II to this Circular) have been presented for illustrative purposes only
and may, because of their nature, not give a fair reection of the Groups results, nancial position and
changes in equity following the implementation of the Rights Offer.
15
Before Rights Offer
1
US$
After Rights Offer
2,3
US$
Increase/(decrease)
%
Loss per share (0.15) (0.09) 40.00
Headline loss per share (0.15) (0.09) 40.00
NAV per share 0.77 0.55 (28.57)
Tangible NAV per share 0.77 0.55 (28.57)
Number of Shares in issue 475,803,860 832,946,717
4
75.06

Notes:
1. The gures in the Before Rights Offer column have been extracted without adjustment from the Companys audited nancial
statements for the year ended 31 December 2011.
2. Transaction costs of approximately US$2,265,343, as set out in paragraph 24 on page 50 of this Circular have been taken into
account against share premium as costs directly attributable to the issue of the Rights Offer Shares.
3. Assuming the Company raises ZAR800 million before expenses (approximately US$98.89 million based on an assumed
exchange rate of US$1:ZAR8.09 which was the US$:ZAR exchange rate at 31 December 2011).
4. Assuming all 357,142,857 Rights Offer Shares are issued.
16
QUESTIONS AND ANSWERS REGARDING THE RIGHTS OFFER
The questions and answers set out below are intended for general information purposes only and, as such,
you should read paragraph 5 on page 32 of this Circular for full particulars of the Rights Offer and what action
you should take. If you are in any doubt as to what action you should take, please consult your broker, banker,
CSDP, accountant, attorney or other professional advisor immediately.
1. How much has been raised in the Pre-placement?
The Company has received subscriptions for 187,647,650 Rights Offer Shares from the Pre-placement
Participants for a total of ZAR420 million, representing approximately 52.54% of the Rights Offer Shares.
The Pre-placement Participants are listed in paragraph 5 on page 32 of this Circular.
2. Is the Rights Offer underwritten?
No, the Rights Offer has not been underwritten.
3. How many Rights Offer Shares are available for acceptance by Remaining Shareholders in
the Rights Offer?
Remaining Shareholders will be able to take up their pro rata rights for a total of 169,495,207 Rights Offer
Shares representing 47.46% of the Rights Offer Shares.
4. If I do not participate in the Rights offer, what happens to my Rights?
Rights which are not taken up, renounced or traded in the Rights Offer will be allocated to Shareholders
who have applied for Excess Rights Offer Shares including any Pre-placement Participants.
5. How do I participate in the Rights Offer?
Shareholders will be able to take up their Rights Offer Entitlement as determined on the Record Date.
Remaining Shareholders who are Dematerialised JSE Shareholders will have their accounts at their
broker or CSDP credited with their Letter of Allocation and should timeously instruct their broker or
CSDP as to whether they wish to participate in the Rights Offer in accordance with the terms of the
custody agreement entered into between them and their broker or CSDP. Certicated Shareholders
and BSX Shareholders must complete the Form of Instruction and return it to the South African Transfer
Secretaries in accordance with the instructions thereon.
6. I understand that there is a period where there is trading in the Letters of Allocation; what
does this mean?
Letters of Allocation representing Rights to participate in the Rights Offer will be listed and will be tradable
on the JSE with effect from 09h00 on 25 June 2012. The price you may receive for your Rights will vary
with market conditions and will be determined on a willing buyer, willing seller basis. It is important to
note that the market price for Letters of Allocation may be different to the Rights Offer Price.
17
It is anticipated that the value of the Letters of Allocation should reect the difference between the
market price of Shares ex-Rights and the Rights Offer Price (allowing for any applicable brokerages and
commissions and amounts in respect of VAT). It is possible that you may receive little or no proceeds
from the sale of some or all of your Letters of Allocation should the market price of the Rights Offer
Shares fall below the Rights Offer Price.
7. As a BSX Shareholder, will I be able to follow my rights on the BSX?
No. The Rights Offer is only being implemented on the JSE. To afford BSX Shareholders the same
rights and opportunities as those afforded to JSE Shareholders, BSX Shareholders will have a Letter
of Allocation created in electronic form with Computershare Nominees (Proprietary) Limited. BSX
Shareholders who follow their Rights shall receive Dematerialised Shares listed on the JSE which they
may, at their discretion and subject to Exchange Control Regulations, transfer to the BSX.
You should complete the Form of Instruction with instructions regarding your Rights in terms of the
Rights Offer, which completed Form of Instruction, together with payment (if applicable) should reach the
South African Transfer Secretaries in accordance with the instructions contained therein.
18
SALIENT DATES AND TIMES
2012
Last date to trade in Shares on the JSE (cum Rights Offer Entitlement) in order to participate in the Rights Offer Friday, 22 June
Last date to trade in Shares on the JSE for settlement by the Record Date and to be recorded as a Shareholder Friday, 22 June
Shares trade ex-Rights Offer Entitlement on the JSE Monday, 25 June
Listing and trading of Letters of Allocation on the JSE from the commencement of trade on Monday, 25 June
Record Date for participation in the Rights Offer Friday, 29 June
Rights Offer opens at 09h00 on Monday, 2 July
Circular including a Form of Instruction, where applicable, Mailed to Shareholders Monday, 2 July
Dematerialised JSE Shareholders accounts at their broker or CSDP credited with their Rights Offer Entitlement Monday, 2 July
Certicated JSE Shareholders and BSX Shareholders have their Rights Offer Entitlement created in electronic
form and held at Computershare Nominees (Proprietary) Limited
Monday, 2 July
Last date to trade in the Letters of Allocation on the JSE for settlement by 12h00 on Friday, 20 July 2012 Friday, 13 July
Listing of Rights Offer Shares on the JSE at 09h00 on Monday, 16 July
Payment and Forms of Instruction to be received by the South African Transfer Secretaries by 12h00 on Friday, 20 July
Rights Offer closes at 12h00 on Friday, 20 July
Results of Rights Offer and basis of allocations of Excess Rights Offer Shares released on SENS Monday, 23 July
Expected date on which the relevant brokers or CSDPs are updated with their Rights Offer Shares and debited
with the costs of the purchase in respect of Dematerialised JSE Shareholders
Monday, 23 July
Expected date on which Share certicates are Mailed to Certicated Shareholders Wednesday, 25 July
Dematerialised shareholders will have their accounts at their CSDP or broker updated with any excess shares
allocated and debited with the costs
Wednesday, 25 July
Refunds/cheques posted to Certicated JSE Shareholders in respect of unsuccessful applications of Excess
Rights Offer Shares
Wednesday, 25 July

Notes:
(1) Dematerialised JSE Shareholders are required to notify their duly appointed broker or CSDP of their participation in the Rights Offer in
the manner and time stipulated in the custody agreement governing the relationship between the Dematerialised JSE Shareholder and
his/her broker or CSDP.
(2) BSX Shareholders and Certicated JSE Shareholders must complete the relevant Form of Instruction, which Form of Instruction, must
reach the South African Transfer Secretaries in accordance with the instructions contained therein.
(3) No Shares may be Dematerialised or rematerialised from the commencement of trade on Monday 25 June 2012 to Friday 29 June 2012,
both days inclusive.
(4) No transfers of Shares between the JSE and the BSX may take place from the commencement of trade on Monday 25 June 2012 to
Friday 29 June 2012, both days inclusive.
(5) CSDPs effect payment on a delivery of scrip versus payment method in respect of Dematerialised Shareholders.
(6) Above times are South African times.
19
DEFINITIONS
In this Circular unless otherwise stated or the context otherwise indicates, the words in the rst column shall
have the meaning ascribed to them in the second column, reference to the singular shall include the plural
and vice versa, words denoting one gender shall include the other, expressions denoting natural persons
include juristic persons and associations of persons.
Accounting Date means 31 December of each year and/or the date on which the Company is wound up;
Accounting Period means a period commencing on the day following the preceding Accounting Date and ending on
and including the immediately proceeding Accounting Date;
Acquisition Costs means the aggregate of all acquisition costs of an Investment together with any duties (including,
without limitation, stamp duties), fees, costs and expenses (including, for the avoidance of
doubt, travel expenses) related to such Investment, including nance charges (if any), payable by
the Company or, if investing together with other Pallinghurst Co-Investors, the Companys pro rata
share of such duties, fees, costs and expenses;
Act means the South African Companies Act (Act 71 of 2008), as amended;
Administrator means the administrator of the Company, as selected by the Directors, currently Legis Fund
Services Limited;
Aggregate Proceeds means the aggregate cash proceeds received by the Company from the Realisation of Investments
(net of any Disposal Costs) and all income less expenses, losses or other charges against the
Company that do not arise from the Realisation of Investments plus any of the Companys Funds
not used for Investments or set aside to fund the Companys Expenses;
AIM means the Alternative Investment Market of the LSE;
Annual Investment Managers Benet means the annual management benet received by the Investment Manager as set out in
paragraph 13 of the section headed Expenses, Fees and Investment Managers Benets of
Annexure VI to this Circular;
Annual Operating Expenses means all costs and expenses reasonably incurred by the Company (during an Accounting Period)
including, but not limited to:
(a) Fees payable to the Administrator;
(b) printing and distribution expenses;
(c) auditors fees;
(d) Directors remuneration;
(e) costs of providing the Companys directors and ofcers insurance;
(f) Independent Valuer fees;
(g) tax and regulatory certicates;
(h) regulatory fees;
(i) annual sponsor and listing fees;
(j) public relation fees; and
(k) bank charges,
but excluding, for the avoidance of doubt, the Annual Investment Managers Benet and Acquisition
Costs;
Approved Investment means the Groups interest in Faberg Limited;
AQ Vehicle means the vehicle which will hold interests in various PGM Properties currently held by the
Pallinghurst Co-Investors;
20
Articles of Incorporation means the articles of incorporation of the Company as amended or replaced from time to time;
ASX means the Australian Securities Exchange Limited;
AUD means Australian Dollars, the lawful currency of Australia;
Bakgatla means the Bakgatla Ba Kgafela Tribe, a universitas personarum, being a traditional community
and tribe established according to indigenous custom, who own land and mineral rights in the BC;
BC means the Bushveld Complex of South Africa, a geological structure that is estimated to contain
approximately 88% of the worlds platinum resources;
Brownelds Opportunities means opportunities related to abandoned operations or assets which may be expanded,
improved or strategically repositioned;
BSX Register means the register of Shareholders whose Shares are traded on the BSX and is maintained by
the Administrator in Guernsey;
BSX Shareholders means Shareholders registered on the BSX Register, maintained by the Administrator;
BSX Sponsor means Capital G BSX Services Limited, a limited company duly registered and incorporated in
Bermuda;
BSX means the Bermuda Stock Exchange;
Business Day means a day other than a Saturday, Sunday or ofcial public holiday in Guernsey or South Africa;
CAD means Canadian Dollars, the lawful currency of Canada;
Cause means:
(a) fraud; or
(b) wilful misconduct; or
(c) gross negligence; or
(d) bad faith; or
(e) reckless disregard for a persons obligations and duties,
which, in each case, has a material effect on the Company and/or its Shareholders;
Certicated Shares means Shares which are held and represented by a Share certicate or other Documents of Title,
which Shares have not been Dematerialised in terms of the requirements of Strate and which
may no longer be traded on the JSE;
Certicated Shareholder means a holder of Certicated Shares;
Certicated JSE Shareholder means a holder of Certicated Shares on the JSE;
Circular means this circular to Shareholders dated 2 July 2012 and the annexures hereto, including the
Revised Listing Particulars and, where applicable, a Form of Instruction;
Closing Date means 12h00 on Friday, 20 July 2012, being the closing date for the receipt of payment and
Forms of Instruction by the South African Transfer Secretaries, under the terms of the Rights
Offer;
Common Monetary Area means South Africa, the Republic of Namibia, the Kingdom of Lesotho and the Kingdom of
Swaziland;
Company Funds means the aggregate amounts received by the Company from Shareholders;
CSDP means a Central Securities Depository Participant as dened in the Securities Services Act;
Dematerialise means the process by which Certicated Shares are converted to or held in an electronic form
as uncerticated securities in terms of the Strate System of the JSE and recorded in the sub-
register of Shareholders maintained by a broker or CSDP, evidencing ownership of shareholding
in electronic format and which Shares may be traded on the JSE;
21
Dematerialised Shares means Shares that have been Dematerialised;
Dematerialised Shareholder means a holder of Dematerialised Shares;
Dematerialised JSE Shareholder means a holder of Dematerialised Shares on the JSE;
Directors or the Board means the board of directors of the Company, as set out in the section headed Corporate
Information of this Circular. Director may mean any one of the Directors as the context may
require;
Disposal Costs means the aggregate amount of all duties (including, without limitation, stamp duties), fees,
costs and expenses (including, for the avoidance of doubt, travel expenses) or, if investing
together with any Pallinghurst Co-Investors, the Groups pro rata share of such duties, fees,
costs and expenses, incurred in the Realisation of an Investment;
Distributions means distributions in cash or distributions in specie of any securities to Shareholders (and
Distribution, Distribute and Distributed shall be construed accordingly);
Documents of Title means Share certicates, certied transfer deeds, balance receipts or any other documents of
title to Shares;
EFT means electronic funds transfer;
Excess Rights Offer Shares means those Rights Offer Shares in excess of a Shareholders Rights Offer Entitlement which
may be issued to Shareholders who have applied for such Shares;
Exchange Control means the Financial Surveillance Department of the South African Reserve Bank responsible for
administering the Exchange Control Regulations;
Exchange Control Regulations means the Exchange Control regulations of South Africa issued under the Currency and
Exchanges Act of 1933 (Act 9 of 1933);
Existing Shares means the Shares in issue as at the Last Practicable Date;
Faberg Limited or Faberg means Faberg Limited (registration number WK-178293), an exempted limited liability company
duly incorporated and registered in accordance with the laws of the Cayman Islands;
Fair Value per Share means the fair value per Share of the Company as estimated by the Directors in accordance with
the Articles of Incorporation;
Firm Placed Rights Offer Shares means those Rights Offer Shares which are irrevocably subscribed for by Pre-placement
Participants in terms of the Subscription Agreements and which Rights Offer Shares represent
all of such Pre-Placement Participants Rights Offer Entitlement;
Form of Instruction means the enclosed printed form of instruction pertaining to a Letter of Allocation, for use by
Certicated JSE Shareholders and BSX Shareholders, as the case may be, which provides for
the:
take up; and/or
disposal; and/or
renunciation,
of the Rights embodied in the Letters of Allocation and for the application for Excess Rights
Offer Shares;
GBP means pounds sterling, the lawful currency of the United Kingdom;
Gemelds means Gemelds plc (registration number 05129023), a public company duly registered and
incorporated in accordance with the laws of England and Wales and whose shares are listed
on AIM;
Group or the Group means the Company and all entities controlled by the Company (its subsidiaries) and its
associates and joint ventures;
22
Guernsey means the Bailiwick of Guernsey;
Guernsey Law means The Companies (Guernsey) Law, 2008, as amended from time to time together with any
regulations or ordinances made thereunder;
Hurdle means an amount calculated as 8% of the Companys Funds, compounded annually, and
calculated daily;
IAS means International Accounting Standards;
IDC or the Industrial Development
Corporation
means the Industrial Development Corporation of South Africa Limited (registration
number 1940/014201/06), a registered development public nance institution created under
section 2 of the Industrial Development Act, No. 22 of 1940;
IFRS means International Financial Reporting Standards;
Initial Closing Date means 14 September 2007, being the initial closing date for the receipt by the Company of its
initial equity share capital;
Indemnied Person means any Director of the Company, and any person nominated by the Investment Manager to
be a director of an Investment Vehicle and/or any of its associated entities;
Independent Valuer means such independent valuer of international repute as may be appointed by the Directors to
be the Companys independent valuer;
IPEVC means the International Private Equity and Venture Capital Association;
Investec means Investec Bank Limited (registration number 1969/004763/06), a public company duly
registered and incorporated in accordance with the company laws of South Africa which shall
also be referred to as the JSE Sponsor and/or the Investment Bank;
Investment(s) means any investment, asset or other interest acquired by the Company (whether for
consideration in cash or securities or assets of existing Investments or otherwise) falling within
the Investment Scope, including the Approved Investment including but not limited to shares,
debentures, loan stock or other securities of and loans (whether secured or unsecured) made to
any body corporate or other entity;
Investment Management Agreement means the agreement, as amended from time to time, between the Company and the Investment
Manager, appointing the Investment Manager to act in the capacity as investment manager to
the Company;
Investment Manager means Pallinghurst (Cayman) GP L.P., an exempted limited partnership registered in the Cayman
Islands;
Investment Period means the period commencing on the Initial Closing Date and ending on the earliest of:
(a) the 5
th
anniversary of the Initial Closing Date; or
(b) the date determined pursuant to a Key Man Event which has not been resolved within
the Suspension Period as dened in Appendix II headed Material Contracts Investment
Management Agreement to this Circular; or
(c) the date on which the Companys Funds have been fully invested in or are committed or
allocated to Investments or expenses of the Company; or
(d) the date on which applicable laws or regulations make it necessary to terminate the
Investment Period; or
(e) such date as may be recommended by the Board and approved by Shareholders in a
general meeting by Special Resolution;
Investment Platform means one of the Groups separate invested strategies, currently Platmin Group Metals, Steel
Making Materials, Coloured Gemstones and Faberg;
Investment Scope means the investment scope of the Company as set out in paragraph 2.2 of the Revised Listing
Particulars;
23
Investment Term means the period which commenced on the Initial Closing Date and ends on the Termination
Date;
Investment Vehicle means a body corporate or other entity in which the Company holds, directly or indirectly through
associated entities, together with any Pallinghurst Co-Investor, on a case-by-case basis, an
Investment;
Ivy Lane means Pallinghurst Ivy Lane Capital Limited (formerly Ivy Lane Capital Limited) registration
number 6925 C1/GBL, a private company limited by shares incorporated in the Republic of
Mauritius;
JSE means the JSE Limited (registration number 2005/022939/06), a public company duly registered
and incorporated with limited liability in accordance with the company laws of South Africa and
licensed as an exchange under the Securities Services Act;
JSE Shareholders means Shareholders registered on the South African Register and whose Shares are listed on
the JSE;
Jupiter means Jupiter Mines Limited, a public company duly registered and incorporated in accordance
with the laws of Australia and whose shares are listed on the ASX;
Key Man Event means:
(a) Brian Gilbertson or any two of the other Key Men failing to devote substantially all of his/
their professional time to the business and affairs of the Programme; or
(b) the death or permanent disability of Brian Gilbertson or any two of the other Key Men; or
(c) Brian Gilbertson or any two of the other Key Men, ceasing to be a Partner(s) of the
Investment Manager; or
(d) Cause exists with respect to one or more Key Men;
Key Men means each of Brian Gilbertson, Arne H. Frandsen, Sean Gilbertson, Priyank Thapliyal and any
person approved as a Key Man in accordance with the terms of the Investment Management
Agreement;
Last Practicable Date means the last practicable date for information to be obtained prior to the nalisation of this
Circular, being Monday, 4 June 2012;
Letters of Allocation means the renounceable (nil paid) letters of allocation to be issued by the Company in electronic
form to each Shareholder conferring the right to subscribe for Rights Offer Shares under the
terms of the Rights Offer;
Listings Requirements means the listings requirements of the JSE;
LSE means the London Stock Exchange plc;
Magazynskraal means the PGM project on Magazynskraal 3, Registration Division J.Q., North West Province,
South Africa;
Mailed or Mailing unless the context otherwise requires, shall mean the mailing by way of registered post;
Management Shares means non-redeemable shares in the Company with a par value of US$1.00 each in the share
capital of the Company;
Mindax means Mindax Limited, a public company duly registered and incorporated in accordance with
the laws of Australia and whose shares are listed on the ASX;
Moepi Group means Moepi Group (Proprietary) Limited (Registration Number 2001/024438/07), a private
company duly registered and incorporated in accordance with the company laws of South Africa;
Moepi Group of companies means Moepi Group, including its subsidiaries and its associates and joint ventures;
NAV means net asset value;
24
Ordinary Resolution means a resolution, taken in accordance with the Articles of Incorporation, passed by a simple
majority of Shareholders, present in person or by proxy and voting at the meeting, convened with
the proper notice of the meeting having been provided to the Shareholders;
Pallinghurst or the Company means Pallinghurst Resources Limited, an authorised closed-ended investment company duly
registered and incorporated in accordance with Guernsey law (registration number 47656), and
registered as an external company in South Africa (registration number2009/012636/10), and
whose Shares are listed on the JSE and BSX;
Pallinghurst Co-Investor(s) means any one of a number of other investors with which the Group is afliated, who typically
share the same Investment Manager. The Group usually makes investments alongside the
other Pallinghurst Co-Investors, although it may also act alone. The Pallinghurst Co-Investors
collectively have the ability to control all of the investments in the Groups portfolio of investments
(the Investment Portfolio); they cooperate to achieve the strategic objectives recommended by
the Investment Manager;
Partners of the Investment Manager means the partners of the Investment Manager, being Brian Gilbertson, Arne H. Frandsen, Sean
Gilbertson, Priyank Thapliyal and Andrew Willis;
Performance Incentive means the benet attributable to the Investment Manager or an associated entity, as set out in
the section headed Expenses, Fees and Investment Managers Benets of Annexure VI to this
Circular;
Person means any individual, body corporate or corporation, limited liability company, partnership,
limited partnership, limited liability partnership, trust or other legal entity;
PGMs means platinum group metals including platinum, palladium, rhodium, ruthenium, iridium and
osmium and the metals and minerals having a mineralogical association therewith, including
gold, copper, nickel and cobalt;
PGM Properties means collectively Magazynskraal, PPM and Sedibelo;
Platmin means Platmin Limited, a limited liability company duly incorporated in Guernsey (registration
number 54400);
Platmin SA means Platmin South Africa (Proprietary) Limited (registration number 2000/002572/07), a
private company duly registered and incorporated in accordance with the company laws of South
Africa and previously known as Boynton Investments (Proprietary) Limited;
PPM means Pilanesberg Platinum Mines (Proprietary) Limited (registration number 2002/015572/07),
a private company duly registered and incorporated in accordance with the company laws of
South Africa;
Pre-listing Statement means the pre-listing statement of the Company dated 13 August 2008;
Pre-placement means the pre-placement of Rights Offer Shares to Pre-placement Participants under the terms
of the Subscription Agreements and Pre-placed shall have a corresponding meaning;
Pre-placement Fee(s) means the amounts payable by the Company to the Pre-placement Participants in consideration
for them each agreeing to subscribe for the Firm Placed Rights Offer Shares per the terms of
the Subscription Agreements, being 3% (three percent) of each of the amounts payable by the
Pre-placement Participants for the Firm Placed Rights Offer Shares, as detailed in paragraph
5.2 of the Circular;
Pre-placement Participants means existing Shareholders (or their nominees as the case may be) who have entered into a
Subscription Agreement(s) with the Company pursuant to the Pre-placement whereby they have
subscribed for Firm Placed Rights Offer Shares;
Programme means the investment programme, managed by the Investment Manager whereby Investments
falling within the Investment Scope are offered to the Company and to the Pallinghurst Co-
Investors, on a case-by-case basis;
25
Rand or ZAR means South African Rands, the lawful currency of South Africa;
Realisation means the occurrence of any of the following events in relation to an Investment:
(a) the receipt of consideration and distribution in cash or the receipt of consideration and
distribution in specie of any securities of a capital nature; or
(b) the unconditional completion of an agreement for the sale of the whole, or any part, of
an Investment (save that where the consideration for such sale is wholly comprised of
securities of a company or, where the consideration for such sale is comprised partly of
securities of a company and partly of cash, in relation to that part of the consideration
comprised of securities, there shall be no Realisation for the purposes of this sub-paragraph
(b)); or
(c) the receipt of any deferred consideration (other than that of an income nature) or the
release of a provision in either case arising from a previous Realisation of the whole, or any
part, of an Investment; or
(d) the redemption of any securities of a company which is the subject of an Investment (other
than any redemption of such securities which is made solely in connection with any other
event constituting a Realisation); or
(e) the winding up or dissolution of any entity in which an Investment is held;
and Realised shall be interpreted accordingly;
Record Date means close of business on Friday, 29 June 2012, being the last day for Shareholders to be
recorded in the Registers in order to be entitled to participate in the Rights Offer;
Redemption Date means the date of compulsory redemption of the Shares, being the date one calendar month
after the Termination Date, subject to all Investments having been liquidated and/or Distributed;
Registers means, collectively, the South African Register and the BSX Register;
Remaining Shareholders means those Shareholders that are not Pre-placement Participants;
Renounced Rights Offer Shares means the portion(s) of Rights Offer Entitlements to which Shareholders are entitled to but which
are not taken up by Shareholders;
Revised Listing Particulars means the revised listing particulars of the Company, set out in Annexure VI of this Circular and
all appendices thereto;
Right means the renounceable right to subscribe for Rights Offer Shares under the terms of the Rights
Offer;
Rights Offer means the renounceable rights offer by the Company to raise gross proceeds of ZAR800 million,
through issuing the Rights Offer Shares at the Rights Offer Price, to be extended to Shareholders
in the ratio of 75.06094 Rights Offer Shares for every 100 Shares held on the Record Date and
including the subscription and issue of the Firm Placed Rights Offer Shares in terms of the Pre-
placement;
Rights Offer Entitlement means a Shareholders pro rata entitlement to participate in the Rights Offer as reected in its
Letter of Allocation;
Rights Offer Price means the subscription price of ZAR2.24 per Rights Offer Share;
Rights Offer Shares means 357,142,857 Shares under the terms of the Rights Offer;
Securities Services Act means the Securities Services Act, 2004 (Act 36 of 2004) of South Africa;
Sedibelo means, collectively, the PGM properties held by Itereleng Bakgatla Minerals Resources
(Proprietary) Limited, situated in the Pilanesberg Alkaline Complex on the Western Limb of
the BC, namely: the farm Koedoesfontein 42, Registration Division JQ; the farm Legkraal 45,
Registration Division JQ; Portion 1 of the farm Rooderand 46, Registration Division JQ; and the
farm Wilgerspruit 2, Registration Division JQ;
SENS means the Securities Exchange News Service of the JSE;
Shareholders means the registered holders of Shares, recorded in the Registers as such on the Record Date;
26
Shares means ordinary shares in the Company with a par value of US$0.00001 each;
South Africa means the Republic of South Africa;
South African Register means the register of Shareholders whose Shares are listed on the JSE and which register is
maintained by the South African Transfer Secretaries;
South African Transfer Secretaries means Computershare Investor Services (Proprietary) Limited (registration number
2004/003647/07), a private company duly registered and incorporated in accordance with the
laws of South Africa;
Special Resolution means a resolution taken in accordance with the Articles of Incorporation, passed by a majority
of not less than three-quarters of the votes of the Shareholders, present in person or by proxy
and voting at the meeting, convened with the proper notice of the meeting having been provided
to Shareholders;
Steel Making Materials means one of the Companys investment strategies, which is to develop a platform to supply the
key raw materials (in particular manganese, iron ore and coking coal) required for the production
of steel;
Strate System means the clearing, custody and settlement environment system for securities transactions to
be settled and for the transfer of ownership to be recorded electronically, as managed by Strate;
Subscription Agreements means agreements entered into between the Company and the Pre-placement Participants,
under the terms of which Pre-placement Participants have subscribed and paid for Firm Placed
Rights Offer Shares;
Temporary Investments means any Investment which is Realised, in whole or in part, within 12 months of its acquisition
by the Company (and for these purposes the date of acquisition will be the date on which the
Investment is legally or benecially transferred and held for the account of the Company), which
shall include, but shall not be limited to, Underwritten Investments (provided that the syndication
of such Underwritten Investments occurs within 12 months of such Investment being made);
Termination Date means:
(a) the 10
th
(b) the 11
th
(c) the 12
th
anniversary of the Initial Closing Date,
as the case may be, pursuant to the applicable resolution, if required, being passed by the requisite
majority of Shareholders in a general meeting as described set out in the section headed Sale
Arrangements and Redemptions of Annexure VI to this Circular;
TSX means the Toronto Stock Exchange;
Transaction Receipts means any of the following which are received by the Investment Manager:
(a) all advisory, agency fees and monitoring fees payable by an Investment Vehicle which are
directly referable to the Companys Investment in such Investment Vehicle;
(b) all break fees payable in connection with a potential Investment which does not proceed to
completion;
(c) all underwriting fees payable in connection with the underwriting of Underwritten
Investments; and
(d) all other fees, commissions and amounts including arrangement fees and exit fees which are
directly referable to the Companys Investment in an Investment Vehicle,
provided that all directors fees and benets payable in connection with the appointment of
a nominated director or reimbursement of costs related to an Investment Vehicle paid by the
Investment Manager shall not be deemed Transaction Receipts and may be retained in full by the
Investment Manager;
Transfer Secretaries means collectively the Administrator and the South African Transfer Secretaries;
27
Trust means The Pallinghurst (Guernsey) Charitable Trust, a trust created to facilitate the purchase and
sale of Shares in the Company;
Tshipi means Tshipi Ntle Manganese Mining (Proprietary) Limited (registration number
2008/003117/07), a private company duly registered and incorporated in accordance with the
laws of South Africa;
Unrealised Investment(s) means any Investment which has not been the subject of a Realisation or the unrealised portion
of a partial Realisation of an Investment;
US$ means United States Dollars, the lawful currency of the United States of America;
Valuation Guidelines means the Valuation Guidelines issued by the IPEVC in September 2009, effective from 1 July
2009, and most recently endorsed as of 31 January 2011, which have replaced all previously
issued IPEVC valuation guidelines and as may be amended, supplemented or replaced from time
to time;
VAT means South African value-added tax, levied in terms of the Value-Added Tax Act (Act 89 of
1991), as amended; and
VWAP means Volume Weighted Average Price.
28
CIRCULAR TO SHAREHOLDERS
1. INTRODUCTION
Since the Companys successful Initial Public Offering in September 2007, the Investment Manager
has targeted so-called unloved assets; those with signicant unrealised value and growth potential.
Such investments are typically overlooked and undervalued for a number of different reasons such
as the particular sector losing favour with investors, lack of strategic direction, nancial hardship or
poor performance of the management team or board of directors. Upon acquisition, the Investment
Manager actively manages the investment, setting a new vision, focus and strategic direction for these
investments, as well as providing managerial, nancial and operational support. Through this active
and hands-on approach, the Investment Manager aims to transform the investments into attractive and
valuable assets, with the aim of realising the asset at the appropriate time to deliver superior returns.
Since the IPO, the Investment Manager has consistently underlined that it allows for a ten year
investment horizon for each investment, which provides the necessary time to implement fundamental
transformations of the investments and to unlock their full value potential. Typically, the rst ve years are
used to establish and implement the revised strategic plans, and the second ve year period is used to
optimise the exit value. In order to maximise returns, it is important that sufcient exibility be built into
the timing of the exit.
Although the Companys four Investment Platforms are currently at different stages of development, they
are all well positioned and on track to achieve the strategic objectives set by the Investment Manager
at the time of the initial investment. The Coloured Gemstones and Platinum Group Metals are the two
platforms most advanced in their development, with many of their original strategic goals already met.
Each has become increasingly attractive as an investment proposition, evidenced by the more than ten-
fold increase in the Gemelds share price over the past few years, as well as the impending consolidation
of the Platinum Group Metals interests and the ZAR3.24 billion investment therein by the Industrial
Development Corporation of South Africa. Even as these two Investment Platforms are poised to enter
the harvesting period, the Investment Manager believes that there remains further valuation upside to
be achieved and suitable market conditions to be prevailing, before an exit should be contemplated.
29
In the interim, the next phase of development for these Investment Platforms will likely be made from
their existing cash reserves and accordingly it is not expected that they will require further funding from
theCompany.
Faberg has built on its successful relaunch in September 2009, unveiling a number of ne jewellery
collections and expanding its retail presence across the globe to include Geneva, London, New York
and Hong Kong. In order to fund this expansion phase and enable further implementation of its value-
creating strategy, Faberg is undertaking a capital raising, which may take the form of equity or debt.
The Company has allocated US$25-30 million (ZAR202-243 million)
1
of the Rights Offer proceeds as the
Companys participation in the Faberg capital raising.
The Companys Steel Making Materials platform is also to be expanded further, both within the existing
Jupiter investment and potentially into a coal opportunity. A further US$25-35 million (ZAR202-283 million)
1

has been allocated as the Companys participation in the ongoing support of the Steel Making Materials
Investment Platform.
As the original portfolio enters the mature stage, the management time commitment to those platforms
is likely to be reduced. This will free up management resources allowing focus on new areas of growth
and shareholder value creation. The Investment Manager therefore intends to actively pursue a number
of attractive new investment opportunities it has identied. This is likely to include a copper investment,
which if successfully completed will form the base for a fth Investment Platform. For this purpose, the
Company has allocated US$40-50 million (ZAR324-404 million)
1
of the Rights Offer proceeds.
As a principle, the Company only raises capital when there is specic use for the funds, such as
participating in identied new investment opportunities, or in order to support its existing Investment
Platforms, such as Faberg and Steel Making Materials. It is of particular importance that the Company
continue to follow its rights in its four existing Investment Platforms in order to protect its investment
value, avoid value destructive dilution and support the development of its strategic plan. Accordingly, the
Directors believe that it is the right time, and in the best interests of the Company and its shareholders,
to raise additional funds for the Company.
Whilst the merits of debt and equity funding have been evaluated, given the current volatile market
conditions as well as the developing nature of the Companys Investment Portfolio, the Directors do
not consider the introduction of debt funding a viable or appropriate option for the Company at this
time. Accordingly, the Directors believe that the best course of action to meet the Companys current
needs and strategic objectives is to raise incremental equity capital, and therefore have approved the
RightsOffer.
The Rights Offer seeks to raise ZAR800 million through the issue of up to 357,142,857 Rights Offer
Shares at the Rights Offer Price of ZAR2.24 per Rights Offer Share in the Rights Offer Ratio of 75.06094
Rights Offer Shares for every 100 Shares held on the Record Date.
This Circular and the accompanying Forms of Instruction (if applicable) serve to:
provide Shareholders with information pertaining to the Rights Offer; and
enable Shareholders to take up, dispose of and/or renounce all or part of their Rights as well as
apply for Excess Rights Offer Shares under the terms of the Rights Offer in accordance with the Act
30
(to the extent applicable), Guernsey Law, the Companys Articles of Incorporation and the Listings
Requirements.
The Forms of Instruction contain details of the Rights to which Certicated JSE Shareholders and BSX
Shareholders, as the case may be, are entitled, as well as the procedures for the take-up, disposal or
renunciation of such Rights and/or the application for Excess Rights Offer Shares. Dematerialised JSE
Shareholders will be advised by their broker or CSDP of their Rights Offer Entitlement as well as the
procedure for the take-up, disposal or renunciation of such Rights and/or the application for Excess

1
The ZAR amounts indicated may uctuate as a result of the exchange rate used. The ZAR amounts above have been calculated using an
exchange rate of US$1:ZAR8.09, the rate at 31 December 2011.
2. SUCCESSFULLY COMPLETED PRE-PLACEMENT
In order to ensure the success of the Rights Offer and to enable participation in the current Faberg capital
raising, the Company has concluded the Pre-placement with existing shareholders in advance of the
Rights Offer, whereby the Pre-placement Participants, under the terms of the Subscription Agreements
subscribed for 187,647,650 Rights Offer Shares at the Rights Offer Price, for an aggregate consideration
of approximately ZAR420.33 million, representing 52.54% of the total Rights Offer Shares available in
the Rights Offer. The proceeds of the Pre-placement have been received by the Company and the Firm
Placed Rights Offer Shares shall be issued to Pre-placement Participants on Monday, 23 July 2012. In
consideration for the Pre-placement Participants subscribing for the Firm Placed Rights Offer Shares,
each Pre-placement Participant was paid the Pre-placement Fee. Please refer to paragraph 5.2 of the
Circular for further details.
Accordingly, over half of the ZAR800 million sought to be raised in the Rights Offer has already been
received by the Company from existing shareholders, indicating a rm support for the strategic direction
of the Company as well as the Rights Issue. The Pre-placement will enable the Group to participate in the
capital raising of its Faberg investment. In addition, the Directors of the Company and Partners of the
Investment Manager have indicated that they will subscribe for their collective 4.71% pro rata entitlement
of the Rights Issue, increasing the rm commitments to the Rights Issue to 57.25%.
3. RIGHTS OFFER
In accordance with the Articles of Incorporation, the Company undertook to implement the Rights Offer
to each Shareholder, on the same terms and conditions. Furthermore, whilst no rights of pre-emption
exist, the Company undertook to implement the Rights Offer by providing each Shareholder with a
Rights Offer Entitlement.
The Rights Offer will be implemented on the JSE and in Rand only and will be made to all Shareholders
who, for the avoidance of doubt, will include BSX Shareholders who will be able to participate in the
Rights Offer in the same manner as JSE Shareholders.
Shareholders are entitled to take up such number of Rights Offer Shares equal to their Rights Offer
Entitlement. Accordingly, all Shareholders will be afforded the opportunity to participate in the Rights
Offer, with all Rights Offer Shares issued pursuant to the Rights Offer being listed on the JSE.
31
The section headed Action required by Shareholders sets out the action to be taken by Shareholders in
relation to the Rights Offer. In addition, BSX Shareholders and Certicated JSE Shareholders are referred
to the Form of Instruction which details the procedures for the take-up, disposal or the renunciation of
Rights and/or the application for Excess Rights Offer Shares. Dematerialised JSE Shareholders will be
advised by their broker or CSDP of the Rights to which they are entitled as well as the procedure for the
take-up, disposal or renunciation of such Rights.
4. RATIONALE FOR THE RIGHTS OFFER
The Directors believe that it is the right time to raise additional equity capital for the Company. This
will enable the Company to support its investments in the existing Investment Platforms, but also to
potentially create signicant shareholder value by participating in new investment opportunities.
Faberg has made signicant progress since the Company made its rst investment in 2007. Despite
the short period since Fabergs relaunch in September 2009, it has already achieved a number of key
milestones. Faberg continued its introduction of high quality collections with a number of critically
acclaimed launches during 2011, with more planned for the second half of 2012. Fabergs retail presence
has expanded to include Geneva, London, New York and Hong Kong. Faberg has been successfully
repositioned in the upper echelon of the luxury sector and now has an expanded product offering and
retail footprint. Faberg is seeking a further capital injection which will enable further development of its
value-creating strategy. The Directors have allocated US$25-30 million to participate in Fabergs capital
raising, which may take the form of equity or debt, to protect its investment and support the next phase
of development of its strategic plan.
The Companys Steel Making Materials platform has also been in a capital intensive phase, building
South Africas newest open pit manganese mine at Tshipi Borwa and this is expected to continue as
Jupiter progresses its feasibility studies on Mount Mason and Mount Ida. The Steel Making Materials
strategy is about developing a platform to supply the key raw materials required for the production of
steel, in particular manganese, iron ore and coking coal. A further US$25-35 million has been allocated as
the Companys participation to the ongoing support of the Steel Making Materials Investment Platform,
which may include a new investment in one or more coal assets.
The Investment Manager has also identied a new copper investment opportunity in southern Africa,
comprising both producing assets and others close to production. It is anticipated that this investment
would be made in conjunction with the Pallinghurst Co-Investors, and the Groups share is likely to be
approximately US$40-50 million.
Gemelds is now a market leader in the emerald sector and is well advanced in its strategy to become
the worlds leading coloured gemstone producer. It is about to apply its successful business model to
rubies, having recently acquired a world class deposit in Mozambique. Gemelds also delivered record
breaking auction results during 2011, with net prot after tax for the six months to 31 December 2011
of US$22 million, higher than the record prots of the prior full year. Gemelds is unlikely to require any
further capital expenditure and the Company does not plan to allocate any of the Rights Offer proceeds
to Gemelds. It is possible that Gemelds may begin to return funds to its shareholders, including the
Group, in the next few years.
32
When making the rst investment into the PGM sector, the Company did so with the aim of facilitating
the consolidation of three contiguous properties, creating an attractive and valuable major new industry
player. Such combined entity would benet from a long life and low cost of production. On 29 March
2012, an important announcement conrmed the planned consolidation of the four PGM assets in which
Pallinghurst has invested. It also reported the acquisition of a 16.2% stake in the consolidated vehicle
(NewCo) for an investment of ZAR3.24 billion by the Industrial Development Corporation, the prominent
South African sovereign investor. This is a tangible validation of our PGM vision and conrmation of
the signicant progress of our PGM strategy. Post the investment by the IDC, the consolidated vehicle
should not require any further investment by the Company and no Rights Offer funds are planned to be
allocated to the PGM strategy.
5. PARTICULARS OF THE PRE-PLACEMENT
In order to ensure the success of the Rights Offer and to enable participation in the current Faberg
capital raising, the Company has concluded the Pre-placement in advance of the Rights Offer, whereby
the Pre-placement Participants, under the terms of the Subscription Agreements, have subscribed for
187,647,650 Rights Offer Shares at the Rights Offer Price, for an aggregate consideration of approximately
ZAR420.33million representing 52.54% of the total Rights Offer Shares available in the Rights Offer.
Pre-placement participants will not be able to trade their Letters of Allocation. However, their Letters of
Allocation will be listed on the JSE. The subscription proceeds of the Pre-placement were received by
the Company on or around Wednesday 2 May 2012.
5.1. Mechanics of the Pre-placement
The Pre-placement of Rights Offer Shares has been implemented as follows:
5.1.1. Pre-placement Participants
Of the 357,142,857 Rights Offer Shares to be issued under the terms of the Rights Offer,
Pre-placement Participants have irrevocably subscribed and paid for 187,647,650 Firm
Placed Rights Offer Shares for an aggregate consideration of ZAR420.33 million. The Firm
Placed Rights Offer Shares represent, collectively, 52.54% of the total Rights Offer Shares.
These proceeds were received by the Company on or around Wednesday 2 May 2012.
Details of the Pre-placement Participants in respect of Firm Placed Rights Offer Shares are
set out below:
33
5.1.2. Firm Placed Rights Offer Shares
Shares held
prior to the
Pre-
placement
Percentage
holding
prior to the
Pre-
placement
Rights Offer
Entitlement
Firm Placed
Rights
Offer Shares
subscribed
for
Shares held
after the
Pre-
placement
Percentage
Holding
after the
Pre-
placement
1
Titan Nominees (Pty) Ltd
2
67,362,700 14.16% 50,563,076 59,230,452 126,593,152 15.20%
Telamon Inc
2
11,547,120 2.43% 8,667,376 11,547,120 1.39%
Solway Finance Limited
3
51,178,518 10.76% 38,415,077 19,207,539 70,386,057 8.45%
Pinetree Trust
3
19,207,538 19,207,538 2.31%
Old Mutual Life Assurance
Company SA Limited 38,383,889 8.07% 28,811,308 28,811,308 67,195,197 8.07%
Oasis Crescent Capital 26,197,093 5.51% 19,663,784 19,663,784 45,860,877 5.51%
Oasis Asset Management 24,488,890 5.15% 18,381,590 18,391,590 42,870,480 5.15%
Cadiz Asset Management
(Proprietary) Limited 18,539,403 3.90% 13,915,851 13,915,851 32,455,254 3.90%
Advance Emerging Capital 12,296,126 2.58% 9,229,588 9,229,588 21,525,714 2.58%
249,993,739 52.54% 187,647,650 187,647,650 437,641,389 52.54%
1
Based on 832,946,717 Shares in issue post the implementation of the Rights Offer on the basis of all the Rights Offer Shares being taken up.
2
As permitted under the terms of the Rights Offer, Telamon has nominated Titan as an alternative subscriber for its 8,667,376 Firm Placed Rights
Offer Shares.
3
As permitted under the terms of the Rights Offer, Solway Finance Limited has nominated Pinetree Trust as an alternative subscriber for
19,207,538 of its Firm Placed Rights Offer Shares.
5.2. Pre-placement Fees
5.2.1. In consideration for the Pre-placement Participants subscribing for the Firm Placed Rights
Offer Shares, the Pre-placement Participants have been paid Pre-placement Fees as
follows:
Pre-placement Participant
Pre-placement Fee
ZAR
Titan Nominees (Pty) Ltd 3,980,287
Solway Finance Limited 1,290,747
Pinetree Trust 1,290,747
Old Mutual Life Assurance Company SA Limited 1,936,119
Oasis Crescent Capital 1,321,406
Oasis Asset Management 1,235,242
Cadiz Asset Management (Proprietary) Limited 935,145
Advance Emerging Capital 620,229
Total 12,609,922
5.2.2. The Pre-placement Fees were paid by way of electronic funds transfer into the bank
accounts nominated in writing by the Pre-placement Participants to the Company, free of
exchange and bank commission, and free of set-off or any other withholding or deduction
of whatsoever nature and for whatsoever reason and free of any levies, surcharge, sales
tax, value-added tax, withholding tax or any other taxes, duties or imposts levied from time
to time.
34
6. PARTICULARS OF THE RIGHTS OFFER
6.1. Terms of the Rights Offer
The Company hereby offers, on the terms and conditions set out in this Circular, to Shareholders
recorded in the Registers on the Record Date, a total of 357,142,857 Rights Offer Shares, at the
Rights Offer Price of ZAR2.24 per Rights Offer Share, payable in full on acceptance in Rand, in the
ratio of 75.06094 Rights Offer Share for every 100 Shares held on the Record Date. Shareholders
holding fewer than 100 Shares will receive Rights Offer Entitlements in accordance with the table
of entitlements set out in Annexure V to this Circular. The Rights Offer Price represents a 25%
discount to the 10-day VWAP of a Share listed on the JSE on 29 March 2012, the day on which
the Rights Offer Price was determined.
Under the terms of the Rights Offer, Shareholders will not be allocated a fraction of a Rights Offer
Share. Any Rights Offer Entitlement to receive a fraction of a Rights Offer Share shall be rounded
up or down in accordance with the principles set out in paragraph 6.8of this Circular.
Excess applications will be permitted in terms of the Rights Offer on the basis set out in
paragraph6.5 of this Circular.
Certicated JSE Shareholders and BSX Shareholders will have their Rights Offer Entitlements
credited to an account in electronic form by Computershare Nominees (Proprietary) Limited to
be administered by them on the Certicated JSE Shareholders or BSX Shareholders behalf.
The enclosed Form of Instruction reects the Rights Offer Entitlement that the Certicated JSE
Shareholder and/or BSX Shareholder concerned is entitled. The procedures which Certicated
JSE Shareholders and BSX Shareholders should follow for the take up, disposal or renunciation of
their Rights Offer Entitlement is reected in the Form of Instruction.
Dematerialised JSE Shareholders will have their Rights Offer Entitlement credited to their account
by their broker or CSDP in electronic form. The broker or CSDP will advise Dematerialised JSE
Shareholders of the procedure they need to follow for the take up, disposal or renunciation of
their Rights Offer Entitlement in accordance with the custody agreement concluded between the
broker or CSDP and the Shareholder concerned.
Rights Offer Shares will, when issued, rank pari passu with the existing Shares and will be fully paid
up and freely transferable.
Each Shareholder shall receive a Letter of Allocation in terms of which Shareholders shall have
the right to take up their Rights Offer Entitlement. The Letters of Allocation issued to Remaining
Shareholders shall be issued in Dematerialised form and shall be negotiable, and tradable
electronically on the JSE once listed on the JSE on Monday, 25 June 2012. The Letters of
Allocation issued to Pre-placement Participants shall be issued in Dematerialised form; however,
Pre-placement Participants shall not be entitled to trade their Letters of Allocation.
For the purposes of the Rights Offer being extended to BSX Shareholders and Certicated JSE
Shareholders, an electronic record will be maintained by Computershare Nominees (Proprietary)
Limited, a wholly owned subsidiary of Computershare Custodial Services Limited. This arrangement
35
has made it possible for BSX Shareholders and Certicated JSE Shareholders to be afforded the
same rights and opportunities as Dematerialised JSE Shareholders.
Rights Offer Shares will not be capable of being traded on the JSE before the listing thereof.
6.2. Opening and closing dates of the Rights Offer
The Rights Offer will open at 09h00 on Monday, 2 July 2012 and close at 12h00 on Friday,
20July2012.
6.3. Procedure for the take-up of Rights Offer Shares
Full details of the procedure for take-up and payment by BSX Shareholders and Certicated
JSE Shareholders are contained in the Forms of Instruction or in the case of Dematerialised JSE
Shareholders as advised by their broker or CSDP.
It should be noted that:
6.3.1. acceptances of the Rights Offer are irrevocable and may not be withdrawn;
6.3.2. Shareholders may accept a lesser number of Shares than their full Rights Offer Entitlement
and applications for Excess Rights Offer Shares will be allowed in accordance with
paragraph 6.5 on page 38 hereafter;
Certicated JSE Shareholders
6.3.3. Certicated JSE Shareholders may only take up their Rights Offer Entitlement by means of
a Form of Instruction. Certicated JSE Shareholders who wish to take up only a portion of
their Rights Offer Entitlement must complete the relevant section of the Form of Instruction
in relation to that portion of the Rights Offer Entitlement taken up;
6.3.4. a properly completed Form of Instruction together with a cheque (crossed not transferable
and with the words or bearer deleted) or bankers drafts (drawn on a registered bank in
South Africa) denominated in Rand, in payment for the Rights Offer Shares being taken
up must be received by the South African Transfer Secretaries at one of the addresses
referred to in paragraph 6.6 on page 39 hereafter by no later than 12h00 on the Closing
Date. Certicated JSE Shareholders are advised to take into consideration postal delivery
times when posting their Form of Instruction. Each cheque or bankers draft will be
deposited immediately for collection;
6.3.5. payment in compliance with paragraph 6.6 on page 39 hereafter will, once the cheque
or bankers draft has been cleared for payment, constitute an irrevocable acceptance of
the Rights Offer upon the terms and conditions set out in this Circular and in the Form of
Instruction. Should any cheque or bankers draft be dishonoured, the Company, in its sole
discretion, may treat the acceptance of the Form of Instruction by the acceptor concerned
as void;
6.3.6. if any Form of Instruction and cheque or bankers draft is not received as set out above,
then the application for Rights Offer Shares will be deemed to have been declined by the
36
Shareholder and the Rights Offer Entitlement of the addressee or the renunciation thereof
in respect of such Form of Instruction, will be deemed to have lapsed, regardless of who
holdsit;
Dematerialised JSE Shareholders
6.3.7. Dematerialised JSE Shareholders should act in accordance with the instructions received
from their broker or CSDP.
BSX Shareholders
6.3.8. BSX Shareholders may only take up their Rights Offer Entitlement by means of a Form
of Instruction. BSX Shareholders who wish to take up only a portion of their Rights Offer
Entitlement must complete the relevant section of the Form of Instruction in relation to that
portion of the Rights Offer Entitlement taken up;
6.3.9. a properly completed Form of Instruction together with a cheque (crossed non-transferable
and with the words or bearer deleted) or bankers drafts (drawn on a registered bank in
South Africa) or valid EFT swift number (duly certied by a registered bank) denominated
in Rand, in payment for the Rights Offer Shares being taken up, must be received by
the South African Transfer Secretaries at one of the addresses referred to in paragraph
6.6 on page 39 hereafter by no later than 12h00 on the Closing Date. BSX Shareholders
are advised to take into consideration postal delivery times when posting their Form of
Instruction. Each cheque or bankers draft will be deposited immediately for collection;
6.3.10. payment in compliance with paragraph 6.6 on page 39 hereafter will, once the cheque or
bankers draft has been cleared for payment or the EFT has reected in the Companys
bank account, constitute an irrevocable acceptance of the Rights Offer upon the terms
and conditions set out in this Circular and in the Form of Instruction. Should any cheque
or bankers draft be dishonoured, the Company, in its sole discretion, may treat the
acceptance of the Form of Instruction by the acceptor concerned as void;
6.3.11. if any Form of Instruction, cheque, bankers draft or EFT is not received as set out above,
then the application for Rights Offer Shares will be deemed to have been declined by the
Shareholder and the Rights Offer Entitlement of the addressee or the renunciation thereof
in respect of such Form of Instruction will be deemed to have lapsed, regardless of who
holdsit;
6.3.12. acceptances by BSX Shareholders may only be made subject to Exchange Control
Regulations as outlined in paragraph 6.9 on page 40 hereafter; and
6.4. Renunciation or disposal of Rights
6.4.1. Certicated JSE Shareholders
Certicated JSE Shareholders not wishing to take up all or part of their Rights Offer
Entitlement as reected in the Form of Instruction may dispose of or renounce their Rights.
37
Certicated JSE Shareholders who wish to dispose of all or part of their Rights Offer
Entitlement as reected in the Form of Instruction, must complete the relevant section
of the Form of Instruction and return it to the South African Transfer Secretaries in
accordance with the instructions set out therein to be received by not later than 12h00
on Friday, 13 July 2012. Computershare Nominees (Proprietary) Limited will endeavour
to procure the disposal, on an equitable basis, of such Rights on the JSE on behalf of
such Certicated JSE Shareholders and will, subject to the Exchange Control Regulations
outlined in paragraph 6.9 on page 40 hereafter, remit the proceeds in accordance with the
payment instructions reected in the Form of Instruction, net of brokerage charges and
associated expenses. None of Computershare Nominees (Proprietary) Limited, the South
African Transfer Secretaries, any broker appointed by them or the Company will have any
obligation or be responsible for any loss or damage whatsoever in relation to or arising out
of the timing of such disposals, the price obtained or any failure to dispose of such Rights.
References in this paragraph to a Certicated JSE Shareholder shall include references to
the Person(s) executing the Form of Instruction, and any Person(s) on whose behalf such
Person(s) executing the Form of Instruction is/are acting. In the event of more than one
Person executing the Form of Instruction, the provisions of this paragraph shall apply to
them jointly and severally.
Certicated JSE Shareholders who do not wish to dispose of all or part of their Rights
as set out in the Form of Instruction and who do not wish to take up Rights Offer Shares
but who wish to renounce their Rights, must complete the relevant section of the Form of
Instruction and return it to the South African Transfer Secretaries in accordance with the
instructions contained therein so as to be received by 12h00 on Friday, 20 July 2012.
6.4.2. Dematerialised JSE Shareholders
Dematerialised JSE Shareholders should act in accordance with the instructions received
from their broker or CSDP.
6.4.3. BSX Shareholders
Instructions for the disposal of Rights by BSX Shareholders may only be made by means
of the Form of Instruction, and subject to the Exchange Control Regulations outlined in
paragraph 6.9 on page 40 hereafter, which Form of Instruction should reach the South
African Transfer Secretaries by no later than 12h00 on Friday, 13 July 2012.
Computershare Nominees (Proprietary) Limited will endeavour to procure the disposal,
on an equitable basis, of the Rights on the JSE on behalf of such BSX Shareholders
and will, subject to the Exchange Control Regulations outlined in paragraph 6.9 on page
40 hereafter, remit the proceeds in accordance with the payment instructions reected
in the Form of Instruction, net of brokerage charges and associated expenses. None of
Computershare Nominees (Proprietary) Limited, the South African Transfer Secretaries,
any broker appointed by them or the Company will have any obligation or be responsible for
any loss or damage whatsoever in relation to or arising out of the timing of such disposals,
the price obtained or any failure to dispose of such Rights. References in this paragraph to
38
a BSX Shareholder include references to the Person(s) executing the Form of Instruction,
and any Person(s) on whose behalf such Person(s) executing the Form of Instruction is/
are acting. In the event of more than one Person executing the Form of Instruction, the
provisions of this paragraph shall apply to them jointly and severally.
BSX Shareholders who do not wish to dispose of all or part of their Rights as reected in
the Form of Instruction and who do not wish to take up the Rights Offer Shares offered
in terms of the Form of Instruction but who wish to renounce their Rights, must complete
the relevant section of the Form of Instruction and return it to the South African Transfer
Secretaries in accordance with the instructions set out therein so as to be received by no
later than 12h00 on Friday, 20 June 2012.
6.5. Applications for Excess Rights Offer Shares
Excess Rights Offer Shares may be applied for by Shareholders. Rights Offer Shares not taken up
during the Rights Offer will be available for allocation to Shareholders who wish to apply for Excess
The right to apply for Excess Rights Offer Shares is transferable on renunciation.
Dematerialised JSE Shareholders who wish to apply for Excess Rights Offer Shares should
instruct their broker or CSDP in terms of the custody agreement entered into between them and
their broker or CSDP, as to the number of Excess Rights Offer Shares for which they wish to apply.
Certicated JSE Shareholders and BSX Shareholders who wish to subscribe for Excess Rights
Offer Shares should indicate their intention in their respective Forms of Instruction.
An announcement will be released on SENS on or about Monday, 23 July 2012, stating the
results of the Rights Offer and the basis of allocation of any Excess Rights Offer Shares for which
application is made.
The pool of Rights Offer Shares available to meet Excess Rights Offer Share applications will be
dealt with as follows:
Rights Offer Shares available for allocation to Excess Rights Offer Share applicants will be
allocated by the Directors in an equitable manner, the Directors decision being nal and
binding; and
Excess Rights Offer Shares will only be available for allocation to Excess Rights Offer Share
applicants in the event of and to the extent that the number of Rights Offer Shares is greater
than the aggregate of the number of Rights Offer Shares taken up by Shareholders.
Cheques and/or refunding of monies in respect of unsuccessful applications for Excess Rights
Offer Shares by Certicated JSE Shareholders will be posted to the relevant applicants, at their
risk, on or about Wednesday, 25 July 2012 and Dematerialised JSE Shareholders will have their
accounts at their broker or CSDP credited on such date. Interest shall not be paid on monies
received in respect of unsuccessful applications for Excess Rights Offer Shares received from
Remaining Shareholders.
39
6.6. Payment by Shareholders and/or their renouncees
6.6.1. Certicated JSE Shareholders
A cheque (drawn on a registered bank, crossed not transferable and with the words or
bearer or or order deleted) or bankers draft (drawn on a registered bank), payable to
Pallinghurst Rights Offer (JSE), for the total amount due, and denominated in Rand, for
the Rights Offer Shares taken up together with a properly completed Form of Instruction,
must be lodged by Certicated JSE Shareholders as follows:
Johannesburg 2107
2001
so as to reach the South African Transfer Secretaries by no later than 12h00 on the Closing
Date.
6.6.2. Dematerialised JSE Shareholders
CSDPs effect payment on a delivery versus payment method in respect of Dematerialised
Shareholders.
Dematerialised JSE Shareholders must instruct their broker or CSDP as to the action they
must take to enable the broker or CSDP to act timeously on their behalf in terms of the
custody agreement entered into between the Dematerialised JSE Shareholders and the
broker or CSDP.
6.6.3. BSX Shareholders
A cheque (drawn on a registered bank, crossed not transferable and with the words
or bearer or or order deleted) or bankers draft (drawn on a registered bank), payable
to Pallinghurst Rights Offer (BSX), or EFT swift reference number (duly certied by a
registered bank), for the total amount due, and denominated in Rand, for the Rights Offer
Shares taken up, together with a properly completed Form of Instruction, must be lodged
by BSX Shareholders as follows:
Johannesburg 2107
2001
so as to reach the South African Transfer Secretaries by no later than 12h00 on the Closing
Date.
40
Relevant banking details for EFT payments are provided on the Form of Instruction. All
payments, whether by EFT, cheque or bankers draft MUST be in Rands otherwise the
Form of Instruction will not be valid and no action will be taken by the South African Transfer
Secretaries in respect of the accompanying Form of Instruction. All non-Rand amounts
received by the South African Transfer Secretaries will be refunded to the relevant BSX
Shareholder net of any applicable costs following the Closing date.
6.7. Documents of Title
All Rights Offer Shares issued pursuant to the Rights Offer will be registered on the South African
Register and will be listed on the JSE.
Share certicates to be issued to Certicated Shareholders pursuant to the Rights Offer will
be Mailed to Persons entitled thereto, at the risk of the Shareholders concerned, on or about
Wednesday, 25 July 2012.
Certicated Shareholders recorded on the Registers receiving new Certicated Shares must note
that they will not be able to trade such Certicated Shares on the JSE until such Shares have been
Dematerialised.
Dematerialised Shareholders and Certicated JSE Shareholders who have elected in their Form
of Instruction to receive Dematerialised Shares will have their accounts updated at their CSDP or
broker in respect of the Rights Offer Shares issued to them on Monday, 23 July 2012.
BSX Shareholders will receive Dematerialised Shares on the JSE, which at their own election and
acting independently from the Company or the Companys advisers, they may transfer to the BSX,
subject to Exchange Control Regulations.
6.8. Fractional entitlements
Fractional entitlements to Rights Offer Shares will be rounded down to the nearest whole number
if they are less than 0.5 and will be rounded up to the nearest whole number if they are equal to or
greater than 0.5.
A table of Rights Offer Entitlements is set out in Annexure V to this Circular.
The Letters of Allocation, which represent the Rights of each Shareholder to participate in the
Rights Offer, will each include the specic Rights Offer Entitlement relevant to that shareholder.
6.9. Exchange Control Regulations relating to the Rights Offer
The following instructions are intended as a guide only and are not comprehensive. If you are in
any doubt in regard thereto, please consult your broker, banker, CSDP, accountant, attorney or
other professional advisor immediately.
41
6.9.1. Exchange Control Regulations
Non-residents of the Common Monetary Area will be allowed to, using their
offshore funds:
take up their Rights Offer Entitlement; and/or
purchase Letters of Allocation on the JSE; and/or
subscribe for Rights Offer Shares in respect of the Letters of Allocation purchased on
the JSE; and/or
subscribe for Excess Rights Offer Shares which they have applied for in terms of the
Rights Offer,
provided payment is received either through normal banking channels from abroad or from
a non-resident account.
All applications by non-residents for the above purposes must be made through an
authorised dealer, in Rand. Electronic statements issued in terms of Strate and any Share
certicates issued pursuant to such applications will be endorsed non-resident. BSX
Shareholders who are non-residents (excluding former residents whose Rights Offer
Entitlement is based on Shares blocked in terms of the Exchange Control Regulations) of
the Common Monetary Area may elect to transfer their Rights Offer Shares to the BSX.
Former residents:
Where a Rights Offer Entitlement accrues to a former resident of the Common Monetary
Area, which Rights Offer Entitlement is based on Shares blocked in terms of the Exchange
Control Regulations, then such blocked funds may not be used to take up any Rights Offer
Entitlement or Shares.
BSX Shareholders who are residents of the Common Monetary Area:
Where a BSX Shareholder wishes to take up Rights based on his Rights Offer Entitlement
and such BSX Shareholder is a resident of the Common Monetary Area, such BSX
Shareholder will be able to use funds within the Common Monetary Area to take up such
Rights or legitimate offshore funds transferred through normal banking channels from
abroad to doso.
Following the close of the Rights Offer and the listing of the Rights Offer Shares on the
JSE, Rights Offer Shares issued pursuant to applications by BSX Shareholders using funds
within the Common Monetary Area will not be transferrable by such BSX Shareholder to
the BSX. However, where legitimate offshore funds are used, such BSX Shareholder may
elect, acting independently from the Company or its advisers, to transfer such Rights Offer
Shares to the BSX.
42
7. JSE LISTINGS
The JSE has granted separate listings for:
the Letters of Allocation from the commencement of trade on Monday, 25 June 2012 to Friday,
13July 2012 (both days inclusive); and
the Rights Offer Shares to be issued pursuant to the Rights Offer from the commencement of trading
on the JSE on Monday, 23 July 2012 including the Firm Placed Rights Offer Shares.
8. FINANCIAL EFFECTS OF THE RIGHTS OFFER
A summary of the unaudited pro forma nancial effects of implementing the Rights Offer is set out in the
table below. In this context, it has been assumed that the Rights Offer was implemented with effect from
1 January 2011 and 31 December 2011 for income statement and balance sheet purposes respectively.
The Directors are responsible for the preparation of the unaudited pro forma nancial effects. The pro
forma nancial effects set out below and the unaudited pro forma income statement and balance sheet
of the Company (attached in Annexure II to this Circular) have been presented for illustrative purposes
only and may, because of their nature, not give a fair reection of the Companys results, nancial
position and changes in equity following the implementation of the Rights Offer.
Before Rights Offer
1
US$
After Rights Offer
2,3
US$
Change
(%)
Loss per share (0.15) (0.09) 40.00
Headline loss per share (0.15) (0.09) 40.00
NAV per share 0.77 0.55 (28.57)
Tangible NAV per share 0.77 0.55 (28.57)
Number of Shares in issue 475,803,860 832,946,717
4
75.06
Notes:

1
The gures in the Before Rights Offer column have been extracted without adjustment from the audited nancial statements for the
year ended 31December 2011.

2
Estimated transaction costs of US$2,265,000, as set out in paragraph 24 on page 50 of this Circular have been taken into account
against share premium as costs directly attributable to the issue of Shares.

3
Assuming the Company raises ZAR800 million before expenses (approximately US$98.89 million based on US$1:ZAR8.09, the
exchange rate at 31December 2011).

4
Assuming all 357,142,857 Rights Offer Shares are issued.
9. INFORMATION ON THE COMPANY
9.1. General description of the business
The Company was incorporated on 4 September 2007 as Pallinghurst Resources (Guernsey)
Limited (registration number 47656), in accordance with Guernsey Law.
The company listed on the BSX on 26 September 2007. On 20 August 2008 Pallinghurst inward
listed on the JSE, with the JSE becoming the Companys primary listing and the BSX listing being
retained as a secondary listing. On 28 May 2009, the Company changed its name from Pallinghurst
Resources (Guernsey) Limited to Pallinghurst Resources Limited. The Company was registered as
an external company in South Africa (registration number2009/012636/10) on 26 June 2009.
43
The Companys main objective is to carry on the business of an investment holding company in
Investments falling within the Investment Scope. To achieve the Investment objectives as set out
in paragraph 2.1 of the Revised Listing Particulars, the Company has appointed the Investment
Manager to act in the capacity as Investment Manager to the Company on the terms set out in the
Investment Management Agreement. The Investment Manager is a specialist natural resources
entity that seeks to develop strategic partnerships for the Company with companies and/or other
entities in order to create and unlock value for Shareholders. The Company is chaired by Brian
Gilbertson, widely regarded as one of the leading gures in the natural resources industry, with a
proven track-record of value creation.
The Company targets Investments in businesses that hold mines, smelters, reneries and
processing plants. The preference is for Brownelds Opportunities, although Investments in other
businesses or projects that present attractive development opportunities are also considered.
A detailed description of the nature and structure of the Company, including a detailed description
of its existing Investment Portfolio is set out in paragraph 4 of the Revised Listing Particulars.
The Companyis anauthorisedclosed-endedinvestmentcompany.As an existing closed-ended
investment company, the Company is deemed to have been granted an authorisation declaration
by the Guernsey Financial Services Commission in accordance withSection 8 of the Protection of
Investors (Bailiwick of Guernsey) Law 1987, as amended andRule 6.02 of the Authorised Closed-
ended Investment Schemes Rules 2008 on the date when the Company obtained consent under
the Control of Borrowing (Bailiwick of Guernsey) Ordinance 1959 to 1989. As an authorised closed-
endedinvestmentcompany, the Company is subject to continuing supervision by the Guernsey
Financial Services Commission.
9.2. Future prospects
Signicant progress has been made in each of the Companys investments. These investments
continue to promise signicant value uplift through organic growth, synergistic acquisitions and/
or vertical integration opportunities. The Group may also exit some of the investments in the right
circumstances.
The application of the Rights Offer proceeds will further benet the growth and development of
the existing platforms and accelerate the implementation of their investment strategies as set out
in paragraph 4 of the Revised Listing Particulars.
The Group has also targeted new opportunities for some of the Rights Offer proceeds. The
Directors believe that these investments will produce superior returns and are complementary to
the existing portfolio.
10. DIRECTORS INTERESTS
10.1. Directors interests in Shares
The Directors of the Company and Partners of the Investment Manager have conrmed that they
will collectively subscribe for 16,811,953 Rights Offer Shares in the Rights Offer for an aggregate
44
consideration of ZAR37,658,774.72 million (US$4,654,978.33 million (based on an exchange rate
of US$1:ZAR8.09 as at 31 December 2011)).
At the Last Practicable Date, the Directors of the Company and Partners of the Investment Manager
held the following interests in Shares:
BEFORE THE RIGHTS OFFER AFTER THE RIGHTS OFFER
Number of
Shares
% interest
in the
Company
1
Rights Offer
Shares
subscribed
for
Number of
Shares
% interest
in the
Company
2
Directors
The Brian Gilbertson Discretionary
Settlement
3
13,858,985 2.91% 10,402,684 24,261,669 2.91%
Arne H. Frandsen
4
2,425,821 0.51% 1,301,639 3,727,460 0.45%
Andrew Willis
4
1,092,554 0.23% 1,339,286 2,431,840 0.29%
Martin Tolcher
Stuart Platt-Ransom
Clive Harris 250,000 0.05% 187,652 437,652 0.05%
Patricia White
Partners of the Investment
Manager
Priyank Thapliyal 2,385,190 0.50% 1,790,346 4,175,536 0.50%
Sean Gilbertson 2,385,190 0.50% 1,790,346 4,175,536 0.50%
22,397,740 4.71% 16,811,953 39,209,693 4.71%

1
Based on 475,803,860 Shares in issue subsequent to the implementation of the Rights Offer.

2
Based on 832,946,717 Shares in issue following the implementation of the Rights Offer assuming that all Rights Offer Shares are
taken up.

3
A discretionary trust of which Brian Gilbertson is a beneciary.

4
Mr Frandsen, who currently holds 323,000 Shares on the JSE and 2,102,821 Shares on the BSX has nominated 519,205 of his
Rights Offer Shares in favour of Mr Willis.

5
The above table and other tables throughout this document may contain small casting errors due to rounding.
The above Directors interests are direct and benecial, with the exception of Brian Gilbertson
whose interest is indirect and benecial.
Other than subscribing for Rights Offer Shares in terms of the Subscription Agreements, there
have been no dealings by Directors in the Shares of the Company since 31December 2011, being
the end of the preceding nancial year, to the Last Practicable Date.
10.2. Directors interests in transactions
Prior to the inception of the Company, in January 2007 a company owned by trusts associated
with Brian Gilbertson provided 25% of the interim loan funding made available to the Approved
Investment in order to conclude the acquisition of the global portfolio of trademarks, licences and
associated rights relating to the Faberg Limited brand name from Unilever plc. The Company and
certain other Pallinghurst Co-Investors invested into Faberg Limited on 14 September 2007, and
the interim loan funding was subsequently repaid.
45
As set out in paragraph 3 headed Directors and Senior Management of the Revised Listing
Particulars, Mr Gilbertson, MrFrandsen and Mr Willis are all partners of the Investment Manager
and Directors of the Company, and as such have an interest in the Investment Management
Agreement.
Mr Platt-Ransom and Ms White are Legis directors and are, as a result, interested in the
Administration Agreement. The Groups relationship with Legis is at arms length.
No Director of the Company, Partner of the Investment Manager or Shareholder holding more
than 10% of the issued Shares or any of their respective associates or afliates, has had any other
material benecial interest in any material transactions of the Company since incorporation.
11. SHARE CAPITAL
At the Last Practicable Date, the authorised share capital, issued share capital and share premium of the
Company are as follows:
Before the
Rights Offer
US$
After the
Rights Offer
US$
Authorised share capital
Management Shares
(10 shares with a par value of US$1.00 each) 10 10
Ordinary Shares (999,000,000 shares with a par value of US$0.00001 each) 9,990 9,990
Issued share capital
Management Shares of US$1.00 each 2 2
Ordinary Shares of US$0.00001 each 4,758 8,329
1
Share premium 300,226,258 396,844,859

1
Assuming all Rights Offer Shares are issued.
The information provided in the table above represents the entire authorised and issued share capital of
the Company. The Company does not hold any treasury shares.
Other than the Subscription Agreements entered into by the Company with the Pre-placement
Participants, at the Last Practicable Date, there were no contracts or arrangements or proposed
contracts or arrangements, whereby any option or preferential right was or is proposed to be given to
any Person(s) to subscribe for any Shares in the Company or any of its subsidiaries.
46
12. DETAILS OF MAJOR SHAREHOLDERS
To the best knowledge of the Directors, the following Shareholders are directly benecially interested in
5% or more of the Shares at the Last Practicable Date:
Name of Shareholder
Shares held
before Rights
Offer
Percentage
held
Rights Offer
Shares
subscribed
for in the Pre-
placement
Rights Offer
Shares
subscribed
for
Percentage
held
Titan Nominees (Pty) Ltd
1
67,362,700 14.16% 59,230,452 59,230,452 15.20%
Solway Finance Limited
2
51,178,518 10.76% 19,207,539 19,207,539 8.45%
Old Mutual Life Assurance Company SA
Limited 38,383,889 8.07% 28,811,308 28,811,308 8.07%
Hlamogolo Capital (Proprietary) Limited 29,399,375 6.18% 22,067,447 6.18%
Oasis Crescent Capital 26,197,093 5.51% 19,663,784 19,663,784 5.51%
Metc Metlife Main Account 24,725,744 5.20% 18,559,376 5.20%
Oasis Asset Management 24,488,890 5.15% 18,381,590 18,391,590 5.15%
Cadiz Asset Management (Proprietary)
Limited 18,539,403 3.90% 13,915,851 13,915,851 3.90%

1
As permitted under the terms of the Rights Offer, Titan Nominees (Pty) Ltd has been nominated as an alternative subscriber for 8,667,376
Firm Placed Rights Offer Shares by Telamon Inc. Furthermore, Titan Share Dealers (Pty) Ltd acquired 1,436,200 Shares after the Pre-
placement was concluded. Titan Share Dealers (Pty) Ltd forms part of the same group as Titan Nominees (Pty) Ltd.

2
As permitted under the terms of the Rights Offer, Solway Finance Limited has nominated Pinetree Trust as an alternative subscriber for
19,207,538 of its Firm Placed Rights Offer Shares.
Note:
The above table is based on the following assumptions:
All Rights Offer Shares are issued and that all shareholders not participating in the Pre-placement take up their full entitlement to
Rights Offer Shares and do not acquire any Rights from other shareholders;
475,803,860 Shares in issue before the Rights Offer; and
832,946,717 Shares in issue after the Rights Offer.
Of the two Management Shares in issue, one is held by First Ovalap Limited, as nominee and trustee for
Brian Gilbertson, and the other by Second Ovalap Limited as nominee and trustee for Arne H. Frandsen.
To the best knowledge of the Directors, at the Last Practicable Date, the Company does not have any
controlling Shareholders.
13. PRO FORMA INCOME STATEMENT AND BALANCE SHEET
An unaudited pro forma income statement and balance sheet of the Company as at 31 December
2011, assuming the Rights Offer had been concluded on 1 January 2011 for balance sheet purposes
and 31December 2011 for income statement purposes, has been set out in Annexure II to this Circular.
The independent reporting accountants limited assurance report on the unaudited pro forma balance
sheet and income statement has been set out in Annexure III to this Circular. The independent reporting
accountant is Nexia SAB&T.
47
14. HISTORICAL FINANCIAL INFORMATION
Relevant historical nancial information extracted from the audited annual nancial statements of the
Company for the nancial years ended 31 December 2011, 31 December 2010 and 31 December 2009
is set out in Annexure I to this Circular.
The report of historical nancial information is the responsibility of the Directors.
15. TRADING HISTORY OF SHARES ON THE JSE
The recent trading history of Shares on the JSE is set out in Annexure IV to this Circular.
16. MATERIAL CONTRACTS
Other than the material contracts set out in Appendix II to the Revised Listing Particulars, the Company
and its subsidiaries did not enter into any material contracts other than in the ordinary course of business
carried on or proposed to be carried on by the Company and its subsidiaries, since incorporation
to the Last Practicable Date. The material contracts, the major terms of which have been set out in
Appendix II to the Revised Listing Particulars, consist of the Investment Management Agreement and
the Administration Agreement.
17. INVESTMENT MANAGERS BENEFIT
In terms of the Investment Management Agreement, a summary of which is attached to this Circular
as Appendix II to the Revised Listing Particulars, the Investment Manager is entitled to an Investment
Managers Benet (as set out in paragraph 13.3 of the Revised Listing Particulars) of 1.5% per annum
of the Company Funds during the Investment Period. With effect from the end of the Investment Period,
the Investment Manager is entitled to an amount of 1.5% per annum of the lesser of the aggregate
Acquisition Costs or fair value (as determined by the most recent valuation) of unrealised Investments of
the Company during the relevant Accounting Period. Accordingly, pursuant to the implementation of the
Rights Offer, the Investment Managers Benet will increase pursuant to the increase in Company Funds.
The increase in Company Funds will also have an impact on the calculation of the Performance Incentive,
which is the benet attributable to the Investment Manager (or an associated entity) as set out in the section
headed Expenses, Fees and Investment Managers Benets of Annexure VI.
18. STATEMENT OF INDEBTEDNESS AND LOANS RECEIVABLE
The Group has no material borrowings.
The Group has made a loan commitment of US$25 million to Faberg. The outstanding amount drawn
down at 31 December 2011 was US$22,436,091, which includes a US$375,000 structuring fee and
interest payable, calculated at three month US$ LIBOR plus 4%. Since the year end, further amounts
have been drawn down, and the outstanding balance of the loan (including the structuring fee but
excluding interest) is US$25 million.
48
The Group enters into loan arrangements with its investee companies from time to time. Any such loans
are made to support the specic investee as may be appropriate, are made on commercial terms, and
would usually not be secured on specic assets.
The Faberg loan is not secured. Other than for interest payable, which is accrued daily, the amount of
the loan has not changed as at the Last Practicable Date. Please refer to Note 11 in Annexure I for more
detail. The Group has no other loans receivable.
The Directors of Faberg are Brian Gilbertson, Arne H. Frandsen, Clive Harris, Sean Gilbertson and
Claude Reininger. Fabergs address is Walker House, 87 Mary Street, George Town, Grand Cayman
KY1-9002, Cayman Islands.
19. LITIGATION
The Company and its subsidiaries are not involved in any legal or arbitration proceedings, nor are the
Directors of the Company aware of any proceedings, which are pending or threatened, which may have
or have had, in the 12 month period preceding the Last Practicable Date, a material effect on the Groups
nancial position.
20. CONTINGENT LIABILITIES AND CONTINGENT ASSETS
On 31 August 2011, the Company agreed to act as a limited guarantor for the lease of Fabergs New
York retail outlet at 694 Madison Avenue. The limited guarantee extends to the Company being liable
for the payment of rent for the outlet if the landlord takes legal action to evict Faberg for non-payment
of rent or other charges, and only to the extent of the rent and charges from the date that legal action
commences to the date that Faberg moves out of the premises.
The Directors believe that there is a very low likelihood that this guarantee will be called upon. Their
assessment of the maximum amount of the Groups contingent liability is US$219,000. There is a degree
of uncertainty over this amount regarding the length of time Faberg might take to vacate the premises
in the event of legal action on the part of the landlord and, therefore, how much rent might become due.
However, the Directors believe that it is highly unlikely that the Group will become liable for any amounts
under this guarantee. The Group has not become liable for any amounts under this guarantee to date.
The Group had no other signicant contingent liabilities or contingent assets at the Last Practicable Date.
21. COMMITMENTS
Faberg loan commitment US$25 million fully drawn down
The Group committed to loan Faberg up to US$25 million on 24 May 2010. This was subsequently
amended on 27 July 2011 and the commitment can now be drawn upon by Faberg between 1 October
2010 and 31 July 2012. Faberg had drawn down US$21,500,000 by 31 December 2011. Faberg
has drawn down a further US$3,125,000 since 31 December 2011, and the Groups outstanding loan,
including a structuring fee of US$375,000 but excluding interest, is US$25 million. The commitment has
now been fully drawn down. Under the terms of the loan agreement, the loan, including structuring fee,
is due for repayment by 31 August 2012.
49
Commitment to participate in Faberg capital raising US$30 million
Faberg is undertaking a capital raising to fund its current expansion phase and enable further
implementation of its value-creating strategy. Faberg aims to raise up to US$30 million, which may take
the form of equity or debt. The Group has committed to participate in the capital raising.
No further commitments had been entered into at the Last Practicable Date.
22. MATERIAL CHANGES
Other than as described herein, there have been no other material changes relating to the trading or
nancial position of the Group subsequent to the release of the Groups results for the year ended
31December 2011.
22.1. Completion of Sedibelo transactions and IDC investment
The Group previously had a commitment to take up its share of the investment in Sedibelo.
Sedibelo is located on the Western Limb of the Bushveld Complex and is contiguous to both PPM
and Magazynskraal. The Bakgatla previously held 100% of Sedibelo, having acquired the nal 10%
interest in the rst half of 2011, which was previously held by Barrick Platinum South Africa (Pty)
Limited. During March 2011, a suite of transactions was announced that provides the platform for
the consolidation of PPM, Sedibelo and Magazynskraal. In particular, the Pallinghurst Co-Investors
would acquire a 49.9% stake in Sedibelo from the Bakgatla, and interests in certain other assets.
Completion of the suite of transactions was subject to various conditions, including approval for
the acquisition from the South African Department of Mineral Resources (DMR). The suite of
transactions was completed in May 2012 subsequent to the receipt of this approval. In addition,
Platmin has also received the DMR approvals necessary for the completion of its acquisition of
Sedibelo West.
During March 2012, the IDC agreed to invest, upon the consolidation of the PGM Properties,
ZAR3.24 billion, in return for 16.2% of the consolidated entity. The IDC investment is expected
to be completed during 2012. The Directors believe that the completion of the IDCs investment
into the consolidated entity may have a positive effect on the Companys NAV, which it is not
yet possible to quantify. Completion of the consolidation and the IDC investment are subject to
variousconditions.
22.2. Faberg Limited loan
During 2010, the Company provided a commitment to loan Faberg up to US$25 million, which
could be drawn down at any point up until 31 July 2012. The amount drawn down at 31 December
2011 was US$21,500,000. Faberg Limited has drawn down a further US$3,125,000 subsequent
to the year end. The outstanding balance has therefore increased to US$25 million (including
structuring fee, excludinginterest).
22.3. Jupiter
The Jupiter share price has fallen since 31 December 2011. The estimated impact of this non-adjusting
event is as follows: The Jupiter share price on 23 May 2012 was AUD0.1825 and the exchange
50
rate was US$1:AUD1.0113. The fair value of the Companys investment was US$ 54,321,016, which
is US$31,434,762 lower than the valuation of US$85,755,778 included in the balance sheet at
31December 2011.
22.4. Gemelds
The Gemelds share price has increased since 31 December 2011. The estimated impact of this
non-adjusting event is as follows: The Gemelds share price on 23 May 2012 was GBP0.3700
and the exchange rate was US$1:GBP0.6330. The fair value of the Companys investment was
US$62,801,463, which is US$23,365,650 higher than the valuation of US$39,435,813 included in
the balance sheet at 31December 2011.
23. DIRECTORS RESPONSIBILITY STATEMENT
The Directors whose names are set out in the Corporate Information section on the inside cover of this
Circular collectively and individually accept full responsibility for the accuracy of the information given
and certify to the best of their knowledge and belief there are no facts that have been omitted which
would make any statement false or misleading, and that all reasonable enquiries to ascertain such
facts have been made and that the Circular contains all information required by law and the Listings
Requirements.
24. COSTS
The following costs, expenses and provisions are expected, or have been provided for in connection with
the Rights Offer and will be settled out of the proceeds thereof.
Costs
1
US$ 000
Legal fees South Africa 76
Legal fees Guernsey 20
Investment Bank and JSE Sponsor fees 500
JSE documentation fee 5
JSE listing fees 26
Independent reporting accountants fee 6
Pre-placement fee 1,559
Printing, publication, distribution and advertising expenses 73
Total 2,265

1
Assuming an exchange rate of US$1:ZAR8.09, the closing rate on 31 December 2011.
25. CONSENTS
The Investment Bank and JSE Sponsor, BSX Sponsor, legal advisors in South Africa and Guernsey,
independent reporting accountant and Transfer Secretaries have consented in writing to act in the
capacities stated and to their names being included in this Circular and have not withdrawn their consents
prior to the publication of this Circular.
51
26. DOCUMENTS AVAILABLE FOR INSPECTION
The following documents, or copies thereof, will be available for inspection during normal business
hours at the registered ofce of the Investment Bank and JSE Sponsor and at the Transfer Secretaries
whose addresses are set out in the Corporate Information section of this Circular from 2 July 2012 to
20 July2012:
a signed copy of the Subscription Agreements;
the material contracts referred to in paragraph 16 above;
the Memorandum and Articles of Incorporation of the Company and its material subsidiaries;
the Companys audited annual and interim reports since incorporation;
the independent reporting accountants assurance report on the unaudited pro forma nancial
effects and the pro forma income statement and balance sheet; and
the letters of consent of the Investment Bank and JSE Sponsor, BSX sponsor, legal advisors in South
Africa and Guernsey, Transfer Secretaries and independent reporting accountant.
By order of the Board
Director
5 June 2012
52
ANNEXURE I
HISTORICAL FINANCIAL INFORMATION OF THE COMPANY
INTRODUCTION
The following nancial information has been extracted from the Companys Annual Report and Financial
Statements for the year ended 31December 2011 (the Annual Report 2011). The comparative information
has been extracted from the Annual Report and Financial Statements for the year ended 31 December 2010
(the Annual Report 2010) and the Annual Report and Financial Statements for the year ended 31 December
2009 (the Annual Report 2009).
The Companys auditors Saffery Champness have audited the Annual Report 2011, the Annual Report 2010
and the Annual Report 2009. The three audit opinions were unqualied, and did not draw attention to any
emphases of matter.
53
CONSOLIDATED INCOME STATEMENT
for the year ended 31 December 2011
Notes
2011
US$
2010
US$
2009
US$
INCOME
Investment Portfolio
Unrealised fair value gains 11 14,533,179 158,296,305 60,250,731
Unrealised fair value losses 11 (150,362,622) (22,464,899) (7,055,936)
Unrealised foreign exchange gains 11 11,166,657 8,801,081
Unrealised foreign exchange losses 11 (1,395,079) (396,482)
Net (loss)/gain on Platmin Note 11 (180,033) 47,062
Realised foreign exchange gain on Jupiter forward contract 5 429,330
Realised fair value loss on acquisition of Jupiter shares 5 (1,478,098)
Net realised gain on Tshipi Jupiter transaction 46,004,512
Net realised gain on POSCO transaction 7,073
Net realised gain on Jupiter Mindax transaction 4,616,685
(138,453,323) 192,660,228 66,612,561
Investment Portfolio revenue
Loan interest income 4 893,057 1,704,239 95,616
Structuring fee and other income 6 1,548,771 6,741
893,057 3,253,010 102,357

Net (losses)/gains on investments and income from operations (137,560,266) 195,913,238 66,714,918

EXPENSES
Investment Managers Benet 7 (4,627,775) (4,626,149) (3,532,946)
Performance Incentive accrual reversal/(accrual) 7 32,512,233 (32,512,233)
Operating expenses 8 (773,239) (909,035) (1,435,571)
Net foreign exchange (losses)/gains (3,620) 76,038 (241,956)
27,107,599 (37,971,379) (5,210,473)

(Loss)/prot from operations (110,452,667) 157,941,859 61,504,445

Finance income 9 136,228 494,051 599,488
Finance costs
Net nance income 136,228 494,051 599,488

(Loss)/prot before share in loss of associates (110,316,439) 158,435,910 62,103,933

Share in (loss)/prot of associates 12 (4,105,703) (292,114) 327,818

(Loss)/prot before tax (114,422,142) 158,143,796 62,431,751

Tax credit/(expense) 16 42,113,518 (42,113,518) (74)

NET (LOSS)/PROFIT FOR THE YEAR (72,308,624) 116,030,278 62,431,677

Basic and diluted (loss)/earnings per share 21 (0.15) 0.24 0.20
54
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
2011
US$
2010
US$
2009
US$
NET (LOSS)/PROFIT FOR THE YEAR (72,308,624) 116,030,278 62,431,677
Exchange differences on translation of foreign operations (17,463)
TOTAL COMPREHENSIVE (LOSS)/INCOME FOR THE YEAR (72,308,624) 116,030,278 62,414,214
55
CONSOLIDATED BALANCE SHEET
as at 31 December 2011
Notes
2011
US$
2010
US$
2009
US$
Non-current assets
Investments in associates 12 21,067,826 1,614,492 2,204,894
Listed investments 11 125,191,591 302,349,201 82,951,671
Unlisted investments 11 190,456,562 137,000,863 154,069,371
Loans and receivables 11 22,436,091 31,864,724 1,320,594
Platmin Note 11 9,182,662
338,084,244 480,397,450 238,341,636
Total non-current assets 359,152,070 482,011,942 240,546,530

Current assets
Trade and other receivables 13 1,179,732 1,212,962 1,112,029
Cash and cash equivalents 5,274,327 29,405,459 80,406,350
Total current assets 6,454,059 30,618,421 81,518,379
Total assets 365,606,129 512,630,363 322,064,909
Non-current liabilities
Deferred tax liability 16 42,113,518

Current liabilities
Performance Incentive accrual 7 32,512,233
Trade and other payables 15 203,642 293,501 384,076
Total current liabilities 203,642 32,805,734 384,076
Total liabilities 203,642 74,919,252
Net assets 365,402,487 437,711,111 321,680,833
Share capital 17 4,760 4,760 4,760
Share premium 17 300,226,258 300,226,258 300,226,258
Retained earnings 65,171,469 137,480,093 21,449,815
Equity 365,402,487 437,711,111 321,680,833

NAV and tangible NAV per Share 21 0.77 0.92 0.68
The enclosed Financial Statements were approved and authorised for issue by the Directors on 29 March 2012 and were signed on its behalf by:
Andrew Willis Stuart Platt-Ransom
56
CONSOLIDATED STATEMENT OF CASH FLOWS
Notes
2011
US$
2010
US$
2009
US$
Cash outows from operations 18 (5,457,643) (5,642,892) (30,208,441)
Taxation paid (74)
Additions to investments 11 (5,568,750) (14,730,651) (20,720,225)
Loans extended to investments 11 (18,500,000) (28,845,409)
Acquisition of Platmin Note 11 (9,135,600)
Loan repayments from investments 11 28,821,690 11,127,017
Proceeds from disposal of investment 6,867,572 19,144
Finance income received 9 136,228 494,051 599,488
Net cash used in operating activities (568,475) (50,992,929) (39,183,091)

Cash ows from investing activities
Investments in associates 12 (23,559,037) (30,452) (72,312)
Net cash used in investing activities (23,559,037) (30,452) (72,312)
Cash ows from nancing activities
Issue of ordinary and management shares 106,509,219
Share issue costs (4,557,760)
Net foreign exchange losses on share issue (2,412,079)
Net cash from nancing activities 99,539,380

NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS (24,127,512) (51,023,381) 60,283,977
Cash and cash equivalents at the beginning of the year 29,405,459 80,406,350 20,939,970
Exchange (loss)/gain on cash (3,620) 22,490 (817,597)
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR 5,274,327 29,405,459 80,406,350
57
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share capital
US$
Share premium
US$
Retained
earnings
US$
Cumulative
translation
adjustment
reserve
US$
Total equity
US$
Balance at 1 January 2009 2,474 200,689,164 (40,981,862) 17,463 159,727,239
Issue of ordinary shares 2,286 106,506,933 106,509,219
Share issue costs (4,557,760) (4,557,760)
Net foreign exchange losses on share
issue (2,412,079) (2,412,079)
Net exchange loss on translation of foreign
operations (17,463) (17,463)
Net prot for the year 62,431,677 62,431,677
Balance at 1 January 2010 4,760 300,226,258 21,449,815 321,680,833
Total Comprehensive Income for the year 116,030,278 116,030,278
Balance at 31 December 2010 4,760 300,226,258 137,480,093 437,711,111
Total Comprehensive Loss for the year (72,308,624) (72,308,624)
Balance at 31 December 2011 4,760 300,226,258 65,171,469 365,402,487
58
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. GENERAL INFORMATION
The Company is incorporated in Guernsey under the Companies (Guernsey) Law, 2008. The address of
the Companys registered ofce is on the nal page of the Annual Report entitled Company Information.
The Company is an investment holding company.
The nancial statements are presented in United States dollars (US$) because the primary economic
environment in which the Group operates is denominated in US$. Foreign operations are included in
accordance with the policies set out in Note 3 Accounting policies.
2. ADOPTION OF NEW AND REVISED STANDARDS
Standards affecting the Financial Statements
On 12 May 2011, IFRS13 Fair Value Measurement (IFRS13) was published as part of the IASBs stated
agenda to update and standardise fair value measurement under IFRS. IFRS13 establishes a single
framework for measuring fair value, which applies to both nancial and non-nancial items. It provides
guidance on the determination of fair value and introduces consistent requirements for disclosure on
measurement. IFRS13 is compulsory for reporting periods beginning on or after 1 January 2013.
The Group early adopted IFRS13 during 2011 and reported under IFRS13 in its interim reporting for the
six months ended 30 June 2011. The adoption of IFRS13 has had a minor impact on the valuation of
the Groups listed investments compared to the previous valuations determined under IAS39 Financial
Instruments: Recognition and measurement (IAS39). Two prices are usually quoted for an equity listed
on a stock exchange, the bid price (the price that a buyer will pay) and the ask price (the price the seller
will accept). The mid price is the average of the bid and ask price.
The Directors consider the mid price to be a better representation of fair value than the bid price, and
the mid price is now used to value the Groups listed investments. Valuation using the mid price for listed
investments is allowed by IFRS13, whereas IAS39 required the use of the bid price. The adoption of
IFRS13 has had a minor impact on the Groups investment valuations.
Standards not affecting the Groups reported result or its nancial position
The following new and revised standards and interpretations have been adopted in the current year. Their
adoption has not had any signicant impact on the amounts reported in these Financial Statements, but
with the exception of the amendment to IFRS1 First-time adoption of International Financial Reporting
Standards (IFRS1), may impact the accounting for the Groups future transactions or arrangements.
IFRIC19
Extinguishing Financial
Liabilities with Equity
Instruments
The interpretation provides guidance on accounting for debt for equity
swaps from the perspective of the borrower. If the Group incurred
debt and then extinguished this debt in exchange for equity, this may
now result in a gain or loss, whereas previously no gain or loss would
have been recognised.
59
Amendment to IFRS1 Limited
Exemption from Comparative
IFRS 7 Disclosures for First-
time Adopters
The amendment provides a limited exemption for rst time adopters
from providing comparative fair value hierarchy disclosures under
IFRS7 Financial Instrument Disclosures (IFRS7)
IAS24 (2009)
Related Party Disclosures
(IAS24)
The revised Standard has a new, clearer denition of a related party,
and certain inconsistencies that existed under the previous denition
have been removed.
Amendment to IAS32 Financial
Instruments: Presentation
(IAS32) Classication of
Rights Issues
Under the amendment, rights issues of instruments issued to acquire
a xed number of an entitys own non-derivative equity instruments
for a xed amount in any currency and which otherwise meet the
denition of equity are classied as equity.
Amendment to IFRS3 Business
Combinations (IFRS3)
IFRS3 has been amended so that only those non-controlling interests
which are current ownership interests and which entitle their holders to
a proportionate share of net assets upon liquidation can be measured
at fair value or the proportionate share of net identiable assets. Other
non-controlling interests are usually measured at fair value.
The following amendments were made as part of Improvements to IFRSs (2010). Similarly, the adoption
of these amendments has not had any signicant impact on the amounts reported in these Financial
Statements, but could impact the accounting for the Groups future transactions or arrangements
Amendment to IFRS7 The amendment claries the required level of disclosure around
credit risk and collateral held and provides relief from disclosure of
renegotiated nancial assets.
New IFRS accounting standards not yet adopted
The following new standards have been issued but not yet adopted by the Group. Whilst the Directors
have not yet fully determined what the impact of each change will be, it is anticipated that the impact of
these new standards may be signicant.
On 12 November 2009, the IASB issued IFRS9 Financial Instruments (IFRS9) as the rst step in its
project to replace IAS39. IFRS9 introduces new requirements for classifying and measuring nancial
assets, and originally had to be applied for periods commencing 1 January 2013 or later, with early
adoption permitted.
On 28 October 2010, the IASB reissued IFRS9, incorporating new requirements on accounting for
nancial liabilities, and carrying over from IAS39 the requirements for derecognition of nancial assets
and nancial liabilities. The Basis for Conclusions was also restructured, and IFRIC9 and the 2009
version of IFRS9 were withdrawn.
On 16 December 2011, the IASB issued Mandatory Effective Date and Transition Disclosures (amendments
to IFRS9 and IFRS7), which amended the effective date of IFRS9 to annual periods beginning on or
after 1 January 2015, and modied the relief from restating comparative periods and the associated
disclosures in IFRS7.
60
Once adopted, all nancial assets and liabilities within the scope of IFRS9 will be accounted for in
accordance with the standard. The impact on the Groups balance sheet may be signicant.
The IASB also issued three new accounting standards on 12 May 2011, IFRS10 Consolidated Financial
Statements (IFRS10), IFRS11 Joint Arrangements, (IFRS11), and IFRS12 Disclosures of Involvement
with Other Entities (IFRS12).
IFRS10 replaces IAS27 Consolidated and Separate Financial Statements (IAS27) and SIC-12
Consolidation Special Purpose Entities (SIC-12). The objective of IFRS10 is to create a single basis for
consolidation for all entities, based on control. The standard provides a revised denition of control, with
detailed application guidance.
The guidance within IAS27 relating to separate nancial statements has not been replaced but has been
amended for the issuance of IFRS10 and retained within IAS27 Separate Financial Statements, which
was issued in May 2011 (IAS27 2011).
IFRS11 is the new standard used to account for joint arrangements, including joint operations and joint
ventures, and partially replaces IAS31. IAS28 Investments in Associates and Joint Ventures was also
issued in May 2011, and supersedes both IAS28 Investments in Associates, which was last amended in
2000, and IAS31.
IFRS12 requires extensive disclosures relating to an entitys interests in subsidiaries, joint arrangement,
associates or unconsolidated structured entities. The key principle is that an entity should disclose
information that helps users of its nancial statements evaluate the nature of and risks associated with
its interests in other entities and the effects of those interests on its nancial statements.
Each of the three new standards, and two amended standards, is effective for annual periods commencing
on or after 1 January 2013, although early application is permitted as long as each of the other standards
(together known as the package of ve) is adopted at the same time.
The Group currently takes advantage of the scope exemptions for venture capital companies contained
within IAS28 and IAS31, and accounts for associates and joint ventures within the Investment Portfolio
at fair value under IAS39. The Directors have assessed whether the package of ve will impact on the
Groups valuations or balance sheet, and believe that new measurement exemptions will mean there
should be no signicant difference to the Groups valuations post adoption, and therefore the impact
of the package of ve will be limited. The Directors have not yet decided whether to early adopt the
package of ve.
The following new and revised standards and interpretations, which have not been applied in these
nancial statements, were in issue but not yet effective:
IFRS1 (amended) Severe Hyperination and Removal of Fixed Dates for First-time Adopters
IFRS7 (amended) Disclosures- Transfers of Financial Assets
IAS1 (amended) Presentation of Items of Other Comprehensive Income
IAS12 (amended) Deferred Tax: Recovery of Underlying Assets
IAS19 (revised) Employee Benets
IAS32 (amended) Clarication of requirements for offsetting nancial instruments
IFRIC20 (new interpretation) Stripping Costs in the Production Phase of a Surface Mine
61
The Directors do not expect that the adoption of any of these standards and interpretations will have a
material impact on the Groups nancial statements in future periods. These standards will be applied in
the rst nancial period for which they are required. The Directors will consider whether to early adopt
specic standards where appropriate.
3. ACCOUNTING POLICIES
Basis of accounting
The Financial Statements have been prepared in accordance with IFRS and interpretations as issued by
the IASB. The Financial Statements also comply with the JSE Listing Requirements, the BSX Regulations
and The Companies (Guernsey) Law, 2008.
The Financial Statements have been prepared on the historic cost basis, except for the valuation of
certain equity investments held within the Investment Portfolio. These equity investments are measured
at fair value not historic cost. Historic cost is generally based on the fair value of the consideration given
in exchange for the assets. Other than information contained within the Consolidated Statement of Cash
Flows, the Financial Statements have been prepared on the accruals basis. The principal accounting
policies adopted by the Group are set out below.
Basis of consolidation
The Financial Statements incorporate the nancial statements of the Company and entities controlled
by the Company (its subsidiaries) made up to 31 December each year. Control is achieved where the
Company has the power to govern the nancial and operating activities of an entity so as to obtain
benets from its activities.
Subsidiaries are fully consolidated from the date on which control is transferred to the Group and are
no longer consolidated from the date that control ceases. Intercompany transactions and balances
between the Group and its subsidiaries are eliminated upon consolidation.
The existence and effect of potential voting rights that are presently exercisable are considered when
assessing whether the Group controls another entity.
Changes in the Groups interests in subsidiaries that do not result in a loss of control are accounted for
as equity transactions. The carrying amount of the Groups interests and the non-controlling interests are
adjusted to reect the changes in their relative interests in the subsidiaries. Any difference between the
amount by which the non-controlling interests are adjusted and the fair value of the consideration paid
or received is recognised directly in equity and attributed to owners of the Company.
Going concern
At the date of these Financial Statements, the Directors have a reasonable expectation that the Company
has adequate resources to continue in its activities for the foreseeable future. The Financial Statements
have therefore been prepared on the going concern basis.
The Groups cash balance has decreased over time as the Group has become more fully invested. The
Directors are pursuing various avenues to ensure that the Group is able to continue to operate effectively.
62
The Group may seek to raise new equity capital, or seek to put borrowing facilities in place or dispose
of assets, in part or in full. It is possible that the Group will not be successful in the pursuit of these
alternatives, which would have adverse implications.
Business combinations
Acquisitions of subsidiaries and businesses are accounted for using the acquisition method. The cost
of the business combination is measured as the aggregate of the fair values (at the date of exchange)
of assets given, liabilities incurred or assumed, and equity instruments issued by the Group and the
Company in exchange for control of the acquiree. The acquirees identiable assets, liabilities and
contingent liabilities that meet the conditions for recognition under IFRS3 are recognised at their fair
values at the acquisition date.
Goodwill arising on acquisition is recognised as an asset and initially measured at cost, being the excess
of the fair value of the consideration paid over the Groups interest in the fair value of the identiable
assets, liabilities and contingent liabilities acquired. If the Groups interest in the fair value of the acquirees
identiable assets, liabilities and contingent liabilities exceeds the cost of the business combination, the
excess is recognised immediately in the Consolidated Income Statement. Transaction costs incurred in
connection with business combinations are expensed.
Acquisition of investments
As the Group is an investment holding company, accounting for new investments is as important as
accounting for new subsidiaries.
A new investment is incorporated into the Groups balance sheet, at the date of acquisition, at the fair
value of the asset acquired. The fair value of the consideration paid includes the fair value of assets given
and any liabilities incurred or assumed. The fair value of the investment acquired and the fair value of
the consideration are usually, but not always, equivalent. Any difference between the fair value of the
asset acquired and the fair value of the consideration paid is recognised immediately in prot or loss.
Any subsequent changes in the fair value of the investment acquired are recognised in prot or loss.
Transaction costs incurred in connection with the acquisition of investments are expensed.
Investments in associates
Associates are those entities in which the Group has signicant inuence, but not control, over the
nancial and operating policies. The Groups associate entities include those associates that are held
as part of the Investment Portfolio, and associate entities through which the Group holds its underlying
investments.
Associates that hold the Groups underlying investments
Associates which hold the Groups underlying investments are accounted for using equity accounting.
Under the equity method, investments in associates are carried in the consolidated balance sheet at
cost and adjusted for post-acquisition changes in the Groups share of associates net assets.
Equity accounting involves recognising the Groups share of its associates earnings for the year in
63
the income statement. The results of associate entities acquired and disposed of during the year are
included from the effective dates of acquisition to the effective dates of disposal.
The Groups interest in associates is carried at an amount that reects its share of the net assets of the
associate and any goodwill identied on acquisition of the associate, net of accumulated impairment
loss. The total carrying amount of associates is evaluated annually for impairment.
The most recent nancial information of associates is used. Adjustments are made to the associates
nancial results for material transactions and events in the intervening period. Losses of associates in
excess of the Groups interest are not recognised unless there is a binding obligation to contribute to
thelosses.
When a Group entity transacts with an associate of the Group, prots and losses are eliminated to the
extent of the Groups interest in the relevant associate.
Associates that are part of the Groups Investment Portfolio
Associates that are held as part of the Groups Investment Portfolio are measured at fair value underIAS39.
Joint ventures
A joint venture entity is an entity in which the Group holds a long-term interest and shares joint
control over the strategic, nancial and operating decisions with one or more other venturers under a
contractualarrangement.
Joint ventures that are part of the Groups Investment Portfolio
Investments in joint ventures that are held as part of the Groups Investment Portfolio are measured at
fair value under IAS39.
Joint ventures incorporated to hold the Groups underlying investments
Joint ventures incorporated for the purpose of holding underlying investments are accounted for
using proportionate consolidation. The Groups proportionate share of the assets, liabilities, revenue
and expenses of these joint ventures are combined on a line-by-line basis with similar items in the
primarystatements.
Accounting for the Investment Portfolio
(i) Classication
The Investment Portfolio includes listed and unlisted equity investments, loans and receivables and may
include other equity instruments such as convertible notes or debentures.
The Group has elected to account for all investments that are held as part of the Groups Investment
Portfolio at fair value. This includes associates over which the Group may have signicant inuence, and
joint venture entities which the Group jointly controls with one or more other venturers.
This is normal practice in the venture capital industry and makes the Financial Statements comparable
with those of similar organisations.
64
(ii) Recognition and derecognition
Recognition and derecognition occurs on the date where the acquisition or sale of an investment is
under a contract whose terms require the unconditional delivery or settlement of the investment.
(iii) Initial measurement
Listed and unlisted equity investments are designated at fair value through prot or loss (FVTPL) at
inception and are initially measured at the fair value of consideration paid. All investments are held at cost
until it is appropriate to measure fair value on a different basis.
(iv) Subsequent measurement of fair value
The Directors determine the measurement of each investment within the Investment Portfolio at fair
value, using the most appropriate basis.
Fair value under IFRS13 is the price that would be received to sell an asset or paid to transfer a liability in
an orderly transaction between market participants at the measurement date. Where no such transaction
exists, an estimate of fair value is made by the Directors.
Listed equity investments in an active market are usually valued at the mid price on valuation date.
The valuation of unlisted equity investments involves judgements and estimates by the Directors.
Anumber of different valuation methods can be used for unlisted investments. These include the cost
of investment, which is normally used for recent investments, or valuing the investment in line with the
price of a recent investment by a third party in an arms length transaction. Discounts for illiquidity may
be applied to investment valuations where appropriate and if allowed by IFRS.
The Group complies with all material aspects of the Valuation Guidelines when determining what method
to use to determine fair value. The Valuation Guidelines specify the valuation methodology which is the
most appropriate to use for each individual investment at each point in the investments lifecycle.
Other methodologies to determine fair value recommended by the Valuation Guidelines include using
an earnings or turnover multiple, share of net assets, the discounted cash ows (DCFs) or earnings of
the underlying business, the DCFs of the investment, or a relevant industry valuation benchmark. The
Directors may use any of these other valuation methodologies if deemed appropriate.
The Directors also consider whether there are any factors that could indicate that a diminution of value
in an investment has occurred, including the following:
The performance of the investment compared to original expectations;
Any unexpected deterioration in the cash position of the underlying business;
Any adverse or unexpected results from drilling or exploration activities; and
External factors such as deterioration in the global economy or industry.
(v) Loans and receivables
The Investment Portfolio includes loans made to portfolio companies. These loans and receivables are
recognised initially at fair value and are subsequently measured at amortised cost.
65
These loans are repayable at various future dates, which may be within or outside of twelve months. All
such loans are disclosed as non-current assets in the balance sheet. When a loan has been made to a
portfolio company, it is often the case that the loan will be extended or converted into an equity interest
at the end of its ofcial term. Therefore, despite the legal terms of any loan agreement, the Directors
believe that all loans to portfolio companies should be shown as non-current assets, to give a full picture
of the Groups nancial position, and because the loan may not be repaid in cash. Accordingly, all loans
made to portfolio companies are included within the Investment Portfolio and shown as non-current
assets. This is normal practice in the venture capital industry and presents more useful information to
shareholders. If the Directors believed that a specic loan to a portfolio company would be repaid within
twelve months, the balance would be classied as current.
(vi) Fair value measurement hierarchy
IFRS7 requires disclosure of fair value measurements under the following hierarchy:
Listed prices (unadjusted) in active markets for identical assets or liabilities (level one);
Inputs other than listed prices included within level one that are observable for the asset or
liability, either directly (that is, as prices) or indirectly (that is, derived from prices) (level two); and
Inputs for the asset or liability that are not based on observable market data (that is, unobservable
inputs) (level three).
The level in the fair value hierarchy within which the asset or liability is categorised is determined on the
basis of the lowest input that is signicant to the fair value measurement. Financial assets and nancial
liabilities are classied in their entirety into one of the three levels.
(vii) Amendment to presentation of fair value and foreign exchange movements
In previous reporting periods, fair value gains or losses on investments in the Investment Portfolio were
presented as a single net number on the face of the Income Statement. Foreign exchange gains or
losses on investments were also presented net on the face of the Income Statement. The fair value
gain or loss and the foreign exchange gain or loss on each investment was included in the segmental
reporting and investment notes.
The Directors have chosen to amend this presentation in the current year. Gross fair value gains,
gross fair value losses, gross foreign exchange gains and gross foreign exchange losses are each now
presented on the face of the Income Statement. The Financial Statements contain the same information,
presented slightly differently. A user of the Financial Statements is now able to see the gross fair value
gain and the gross fair value loss directly on the face of the Income Statement. Previously, if a user had
wanted this specic information, they would have needed to review the Groups segmental reporting and
investments notes to review the relevant gains/losses by investment. This detail is still included in the
aforementioned notes.
The change does not impact on the Balance Sheet or any component of equity in the current or any
priorperiods.
The Directors therefore believe that the inclusion of a restated Balance Sheet at 31 December 2009 (the
beginning of the earliest prior period presented) would not be helpful to users of the Financial Statements
and a third balance sheet has not been presented.
66
Trade and other receivables
The Groups operating activities are to acquire, hold and dispose of investments; it does not carry out
other trading activities. The trade and other receivables balance may relate to balances receivable upon
the exit from an investment. Trade and other receivables also includes prepayments.
Trade and other receivables are recognised initially at fair value and are subsequently measured at
amortised cost. A provision for impairment of trade and other receivables is made if there is sufcient
evidence that the Group will not be able to collect all amounts due according to the original terms.
Cash and cash equivalents
Cash and cash equivalents represent cash balances held at bank and in on demand deposits. All the
Groups cash balances are either accessible on demand, or with a notice period of up to 32 days. Cash
and cash equivalents are categorised as loans and receivables for the purpose of IAS39.
Trade and other payables
Trade and other payables are not interest bearing and are initially recognised at fair value and subsequently
measured at amortised cost. Trade and other payables denominated in foreign currencies are translated
into US$ at the balance sheet date.
Share capital
(i) Ordinary Shares
Ordinary Shares are classied as equity. Issued share capital is stated at the amount of the proceeds
received less directly attributable issue costs.
(ii) Management Shares
Management Shares are also classied as equity. The Management Shares are intended for use at the
point when the Company is wound up. In the event of a windup, Management Shares carry the right
to receive notice of, attend and vote at any general meeting of the Company, provided that no ordinary
shares are in issue at such date. Holders of the Management Shares will only receive their nominal value
once the holders of the Ordinary Shares have received the fair value of their shares. Accordingly, the
holders of Management Shares do not have the right to receive nor participate in distributions of the
Company, including dividends.
Gains/losses on investments
Gains/losses realised on disposal of investments are calculated as the net proceeds of the disposal less
the carrying value of the asset in the balance sheet at the date of disposal.
Unrealised movements in the fair value of investments relate to changes in the fair value of investments
between the opening and closing balance sheet date. Unrealised foreign exchange gains and losses
occur when investments are denominated in currencies other than US$ and relate to the movement in
exchange rates between the opening and closing balance sheet date.
67
Portfolio revenue is directly related to the return from investments within the Investment Portfolio. The
balance includes fee income earned directly from portfolio companies, interest on loans made to portfolio
companies and dividends received from portfolio companies.
Portfolio revenue is recognised in prot or loss when the Groups right to receive payment is established
and the amount of revenue can be measured reliably.
Other income
Other income includes dividends received from entities not within the Investment Portfolio and other
income not related to the Investment Portfolio.
Other income is recognised in prot or loss when the Groups right to receive payment is established and
the amount of income can be measured reliably.
Taxation
Taxation for the year comprises current and deferred tax. Current and deferred tax is charged or credited
to the income statement, or to the statement of comprehensive income, except to the extent that it
relates to items recognised directly in equity, in which case the taxation effect is recognised in equity.
There are no items recognised directly in equity in the current period, hence there are no related tax
charges or credits.
Current income tax is calculated on the basis of the tax laws enacted or substantively enacted at the
balance sheet date in countries where the Company operates and generates taxable income. The
Company is incorporated in Guernsey and is an Exempt Collective Investment Scheme under the
Income Tax (Zero-10) (Guernsey) (No 2) Law 2007.
Deferred tax is provided for in accordance with IAS12 Income Taxes, providing for the tax effect of
temporary differences between the carrying amount of assets and liabilities for accounting purposes
and the amounts used for tax assessment. Deferred tax assets and liabilities are measured using tax
rates that are expected to apply to the period when the asset is realised or the liability is settled.
The only current impact of deferred tax on the Company relates to deferred tax on unrealised fair value
gains/ losses within the portfolio of investments.
Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax
assets are recognised to the extent that it is probable that taxable prots will be available against which
deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the
temporary differences arise from the initial recognition of goodwill on an asset or liability in a transaction
(other than in a business combination) that affects neither taxable prot nor accounting prot.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax
assets against current tax liabilities and when they relate to income taxes levied by the same taxation
authority and the Group intends to settle its current tax assets on a net basis.
Unrecognised deferred tax assets may be recognised in the future if sufcient taxable prots become
available in the relevant jurisdictions.
68
Earnings Per Share (EPS)
EPS is a key performance measure, based on attributable prot for the year divided by the weighted
average number of ordinary shares in issue during the year.
Diluted Earnings Per Share (DEPS) is presented when the inclusion of potential ordinary shares has a
dilutive effect on earnings per share. There are no dilutive indicators or dilutive ordinary shares in issue,
and as such DEPS is equal to EPS in the current and prior year.
Headline Earnings Per Share (HEPS)
HEPS is similar to EPS, except that attributable prot specically excludes certain items, as set out in
Circular 3/2009 Headline earnings (Circular 3/2009) issued by the South African Institute of Chartered
Accountants (SAICA).
The gain or loss on disposal of an associate would normally be excluded from headline earnings (and
HEPS). However, per Circular 3/2009, private equity companies should include gains or losses on
disposal of associates in HEPS because any prot realised on the disposal of these investments is
considered to be part of the trading results of private equity operations and the prot does not relate
to the capital platform of the business as would normally be the case. Circular 3/2009 further explains
that in this context, the choice to recognise an investment in an associate at fair value through prot or
loss, instead of applying equity accounting, does not imply that the investment is part of the capital or
platform of the business and should not have any impact on the decision to include the gain or loss on
disposal of associates within headline earnings. Therefore where a gain or loss is made on the disposal
of an associate that is part of the Investment Portfolio the item is included within headline earnings. If an
associate that is part of the capital structure of the Group were to be disposed of the arising gain or loss
would be excluded from headline earnings in line with the guidance from SAICA.
Foreign currencies
The individual nancial statements of each Group company are presented in the currency of the
primary economic environment in which it operates (its functional currency). For the purposes of the
Groups Financial Statements, the results and nancial position of each Group company are expressed
in US$, which is the functional currency of the Company and the presentation currency for the
FinancialStatements.
Transactions entered into by Group entities are recorded in their functional currencies at the exchange
rate on the day of the transaction. Monetary assets and liabilities denominated in foreign currencies are
retranslated at the rate of exchange ruling at the balance sheet date. Exchange differences arising on the
retranslation of unsettled monetary assets and liabilities are recognised in the income statement.
For the purpose of presenting Financial Statements, the assets and liabilities of the Groups foreign
operations are translated at exchange rates prevailing on the balance sheet date. Income and expense
items are translated at the average exchange rates for the period, unless exchange rates uctuate
signicantly during the period, in which case the exchange rates at the date of transactions are used.
Exchange differences arising, if any, are recognised in other comprehensive income and accumulated in
equity (attributed to non-controlling interests as appropriate).
69
On disposal of a foreign operation (i.e. a disposal of the Groups entire interest in a foreign operation, or
a disposal involving loss of control over a subsidiary that includes a foreign operation, loss of signicant
inuence over an associate that includes a foreign operation, or loss of joint control over a jointly controlled
entity that includes a foreign operation), all of the accumulated exchange differences in respect of that
operation attributable to the Group are reclassied to prot or loss.
Derivatives
Derivatives are occasionally used by the Group to manage risks associated with foreign currency
uctuations. These usually relate to the Investment Portfolio, particularly when entering into and exiting
from investments. This risk management is normally implemented by the use of foreign currency
forwardcontracts.
The Directors also consider the use of currency swaps in certain circumstances, either to facilitate the
making of new investments, or if appropriate whilst raising new equity share capital.
The Group may also acquire derivatives as part of the Investment Portfolio in certain circumstances,
such as entering into convertible notes, convertible bonds or other equity derivatives.
Derivatives are recognised initially at fair value on the contract date and subsequently remeasured to
the fair value at each reporting date. Changes in the fair value of nancial instruments are taken to the
income statement, or other comprehensive income if appropriate.
Critical accounting judgements and estimates
In the application of the Groups accounting policies, the Directors are required to make judgements,
estimates and assumptions that materially affect the reported amounts of assets, liabilities, income
andexpenses.
The most critical accounting estimates and assumptions relate to the valuation of the Groups portfolio of
investments. Carrying out impairment assessments for the Groups unlisted investments is both difcult
and subjective. Details of the fair valuation methodologies for each investment are set out in Note 11
Investments.
Estimates and assumptions used are reviewed periodically. Although the Directors estimates of fair
value are subjective, the Directors believe that they are materially accurate.
4. SEGMENTAL REPORTING
The Groups segmental reporting is based around its four Investment Platforms (Luxury Brands, Steel
Making Materials, Coloured Gemstones and PGMs), each of which is categorised as an operating
segment.
The Chief Operating Decision Maker (CODM) is Mr Gilbertson, the Chairman, who measures the
performance of each operating segment by assessing the fair value of the Groups Investment Portfolio
on a regular basis.
The Income Statement segmental information provided to the CODM for the year ended 31 December
2011 is as follows:
70
PGMs
US$
Steel Making
Materials
US$
Coloured
Gemstones
US$
Faberg
Limited
US$
Unallocated
US$
Total
US$
31 December 2011
Income
Unrealised fair value gains 14,533,179 14,533,179
Unrealised fair value losses (5,211,360) (145,151,262) (150,362,622)
Unrealised foreign exchange
gains
losses (1,317,174) (49,059) (28,846) (1,395,079)
Net unrealised loss on Platmin
Note (180,033) (180,033)
Realised foreign exchange gain
on Jupiter forward contract 429,330 429,330
Realised loss on Jupiter shares (1,478,098) (1,478,098)
Loan interest income 343,506 549,551 893,057
Net segmental
(expense)/income (6,365,061) (146,249,089) 14,504,333 549,551 (137,560,266)
Other income
Net gains on investments and
income from operations (137,560,266)
Expenses, net nance income,
share of loss of associates and
taxation 65,251,642 65,251,642
Net segmental (loss)/prot (6,365,061) (146,249,089) 14,504,333 549,551 65,251,642 (72,308,624)
The comparative Income Statement segmental information for the year ended 31 December 2010 is as follows:
PGMs
US$
Steel Making
Materials
US$
Coloured
Gemstones
US$
Faberg
Limited
US$
Unallocated
US$
Total
US$
31 December 2010
Income
Unrealised fair value gains 12,498,665 129,176,653 16,620,987 158,296,305
Unrealised fair value losses (22,464,899) (22,464,899)
gains 3,155,761 8,010,896 11,166,657
losses (396,482) (396,482)
Net unrealised gain on Platmin
Note 47,062 47,062
Net realised gains on Tshipi
Jupiter transaction 46,004,512 46,004,512
Net realised gain on POSCO
transaction 7,073 7,073
Loan interest income 1,592,775 99,924 11,540 1,704,239
Structuring income 1,040,000 375,000 1,415,000
Net segmental
(expense)/income (4,130,636) 183,299,058 16,224,505 386,540 195,779,467
Other income 133,771 133,771
Net gains on investments and
income from operations 195,913,238
Expenses, net nance income,
share of loss of associates and
taxation (79,882,960) (79,882,960)
Net segmental (loss)/prot (4,130,636) 183,299,058 16,224,505 386,540 (79,749,189) 116,030,278
71
The segmental information provided to the CODM for the reportable segments for the year ended
31December 2011 is as follows:
PGMs
US$
Steel Making
Materials
US$
Coloured
Gemstones
US$
Faberg
Limited
US$
Total
US$
31 December 2011
Listed investments 85,755,778 39,435,813 125,191,591
Unlisted investments 103,450,358 87,006,204 190,456,562
Loans and receivables 22,436,091 22,436,091
Total segmental assets 103,450,358 85,755,778 39,435,813 109,442,295 338,084,244
Investments in associates, current assets and liabilities 27,318,243
Net assets 365,402,487
The comparative segmental information provided for the year ended 31 December 2010 is as follows:
PGMs
US$
Steel Making
Materials
US$
Coloured
Gemstones
US$
Faberg
Limited
US$
Total
US$
31 December 2010
Listed investments 50,981,604 226,436,117 24,931,480 - 302,349,201
Unlisted investments 49,994,659 - - 87,006,204 137,000,863
Loans and receivables 28,478,184 - - 3,386,540 31,864,724
Platmin Note 9,182,662 - - - 9,182,662
Total segmental assets 138,637,109 226,436,117 24,931,480 90,392,744 480,397,450
Investments in associates, current assets and liabilities (42,686,339)
Net assets 437,711,111
5. REALISED FOREIGN EXCHANGE GAIN ON JUPITER FORWARD CONTRACT AND
FAIR VALUE LOSS ON ACQUISITION OF JUPITER SHARES
On 31 January 2011, Jupiter announced that it intended to raise AUD150 million by way of an issue of
new equity shares. The majority of the funds have been allocated towards Jupiters 49.9% share of the
capital expenditure for the Tshipi Borwa project. As part of the capital raising, Jupiter issued 214,340,334
shares at AUD0.70 per share.
The Group contributed AUD5.5 million to the capital raising in return for 7,857,143 new Jupiter shares. The
capital raising was partially to new investors (AUD98.5 million) and partially to related parties (per the
Australian Stock Exchanges (ASX) denition of a related party) including the Group (AUD51.5million).
The new shares were issued in two tranches; the issue of shares to related parties required approval
at a shareholder EGM, which occurred on 6 April 2011. The Group received its new shares on 29 April
2011. Its effective interest in Jupiter was diluted from 18.2% to 16.5% on this date.
On 8 February 2011, a Group company placed a forward contract with Rabobank, committing to acquire
US$5,568,750 for AUD5,500,000, giving an effective exchange rate of US$1:AUD0.9877. The fair value of
72
the contract acquired was equal to the consideration paid and no gain or loss was recognised on initial
acquisition.
On 6 April 2011, at the Jupiter EGM, the capital raising was approved and the Group received 7,857,143
shares on 29 April 2011.
The Group realised a foreign exchange gain on the forward contract, as follows:
Amount AUD Amount US$
Realised foreign exchange gain on Jupiter forward contract
Fair value of forward contract at inception (5,500,000) (5,568,750)
Fair value of forward contract on completion 5,500,000 5,998,080
Realised foreign exchange gain on forward contract 429,330
The fair value of the shares fell between 8 February 2011 and 29 April 2011 resulting in a loss on
acquisition, as follows:
Number of
shares
Price per share
AUD
Amount
AUD
Amount
US$
Realised fair value loss on acquisition of Jupiter shares
Fair value of Jupiter shares at date of commitment 7,857,143 0.7000 (5,500,000) (5,998,080)
Fair value of Jupiter shares at date of receipt 7,857,143 0.5275 4,144,643 4,519,982
Realised fair value loss on Jupiter shares (1,355,357) (1,478,098)
6. STRUCTURING FEE AND OTHER INCOME
2011
US$
2010
US$
Platmin structuring fee 1,040,000
Faberg Limited structuring fee 375,000
Other income 133,771
1,548,771
The structuring fees relate to the loan arrangements entered into with Platmin and Faberg Limited. See
Note 11 Investments for more detail.
The Platmin structuring fee earned during 2010 was added to the outstanding loan balance and was
repaid with the outstanding loan balance on 28 February 2011.
The Faberg Limited structuring fee earned during 2010 was added to the outstanding loan balance and
is accruing interest at three month US$ London Interbank Agreed rate (LIBOR) plus 4%.
7. INVESTMENT MANAGERS BENEFITS
Investment Manager
Pallinghurst (Cayman) GP L.P. (the Investment Manager) was appointed as investment manager to
the Company on 4 September 2007. The Investment Manager provides the Company with investment
advisory and management services.
The Partners of the Investment Manager are the following individuals:
73
Brian Gilbertson
Arne H. Frandsen
Sean Gilbertson
Priyank Thapliyal
Andrew Willis
The Partners of the Investment Manager have extensive experience in the mining industry, with an in-
depth knowledge of assets, companies, people and trends. They are recognised for their strategic insight
and vision, are highly regarded by international investors, and are renowned for pioneering innovative
transactions.
The Partners of the Investment Manager have over 100 years of collective experience in the resources
sector.
Investment Managers Benet
The Investment Manager is entitled to an Investment Managers Benet of 1.5% per annum of the amount
subscribed for in the Company during the Investment Period
1
. With effect from the end of the Investment
Period, the Investment Manager is entitled to an amount of 1.5% per annum of the lesser of the aggregate
acquisition cost or fair value of the Companys unrealised investments during the relevantperiod.
The total charge to the Income Statement for the Investment Managers Benet during the year was
US$4,627,775 (2010: US$4,626,149).
Performance Incentive
Subject to certain conditions, the Investment Manager is entitled to a Performance Incentive related
to the performance of the Groups investments. The excess of the total funds available for return to
shareholders, over the total amount subscribed for in the Company, will be split between the shareholders
and the Investment Manager
2
in the ratio 80%/20%. This is subject to meeting a Hurdle
3
of 8% per
annum; until the Hurdle is reached, the Investment Manager is not entitled to the Performance Incentive,
ensuring that the Investment Manager would only be rewarded if aggregate returns to shareholders are
in excess of 8% per year.
Whether a sufcient return has been made, and whether the Performance Incentive is payable, is only
assessed at the end of the Investment Period. However, the Directors assess whether a Performance
Incentive accrual should be made at the end of each reporting period. The Directors also assess whether
the accrual should be accounted for as a current or non-current liability, based on their best assessment
of the likely timing of any outow.
The accrual for the Performance Incentive is calculated as follows:
(a) The Groups Aggregate Proceeds
4
are allocated entirely to shareholders until such time as
shareholders have received an aggregate amount of the Companys Funds
5
plus the Hurdle;
(b) Thereafter, the Investment Manager is allocated all further Aggregate Proceeds until it has been
allocated an amount equal to 25% of the Hurdle; and
(c) Aggregate Proceeds are then allocated 80% to Investors and 20% to the Investment Manager.
74
An accrual for the Performance Incentive of US$32,512,233 was made at 31 December 2010. During the
year to 31 December 2011, the fall in the Groups NAV has meant that the Performance Incentive accrual
previously recognised has been reversed, and is US$nil at the year end (31 December 2010: accrual of
US$32,512,233).

1
The Investment Period is commenced on 14 September 2007. The Investment Period can end under various circumstances, including
if shareholders approve that the period should end in a general meeting by Special Resolution. The Investment Period may end on 14
September 2012, the ve year anniversary of the Companys incorporation, unless shareholders agree that it should be extended. The
Investment Period has not yet ended.

2
A Performance Incentive payment could be made to the Investment Manager or to an afliate of the Investment Manager.

3
The Hurdle is calculated as 8% of the Companys Funds, compounded annually each year, and calculated daily.

4
Aggregate Proceeds are effectively equal to the Groups NAV, after adding back any accrual for the Performance Incentive. For the
purposes of the accrual calculation, it is assumed that investments will be disposed of for an amount equal to their current fair value, with
no associated transaction costs, and full distribution of proceeds to shareholders. The Groups NAV, after adding back any Performance
Incentive accrual, is therefore the best current estimate of what the total amount available for distribution would be.

5
The Companys Funds are effectively equal to the sum of the Companys share capital and share premium.
8. OPERATING EXPENSES
2011
US$
2010
US$
Amounts paid to Auditor 141,404 117,603
Independent Valuers fees 62,663 57,946
Other legal and professional fees 4,624 38,630
Directors fees 80,000 77,500
Administration costs 346,363 501,382
Expenses reimbursed to the Investment Advisor 69,242 53,768
Listing, sponsor and regulatory ling fees 68,943 62,206
773,239 909,035
9. FINANCE INCOME
2011
US$
2010
US$
Interest received on bank deposits 123,218 494,051
Interest received on loan to associate 13,010
136,228 494,051
10. TAX
2011
US$
2010
US$
Current tax
Deferred tax credit/(expense) (see Note 16 Deferred tax): 42,113,518 (42,113,518)
Tax credit/(expense) 42,113,518 (42,113,518)
The prevailing rate of tax in Guernsey is 0%. The Company pays an annual exempt tax fee of 600,
as it is an Exempt Collective Investment Scheme under the Income Tax (Zero-10) (Guernsey) (No 2)
Law 2007. This fee is included in operating costs. Where applicable, taxation for other jurisdictions is
calculated at the relevant prevailing rates.
The tax charge for the year reconciles to the (loss)/prot per the Consolidated Income Statement as
follows:
75
2011
US$
2010
US$
(Loss)/prot before tax (114,422,142) 158,143,796
Tax at the Guernsey corporation tax rate of 0% (2010:0%)
Deferred tax credit/(expense) for the year (see Note 16 Deferred tax): 42,113,518 (42,113,518)
Tax credit/(expense) for the year 42,113,518 (42,113,518)
The Group should normally anticipate a tax rate of zero, based on the 0% corporate tax rate in Guernsey.
The Groups effective tax rate in 2010 was 26.6%, based on the recognition of a deferred tax liability
relating to an increase in fair value of the Jupiter investment. In 2011, this fair value increase reversed,
resulting in a deferred tax credit of US$42,113,518 during 2011. The Groups effective tax rate during
2011 was (36.8%), based on the recognition of this deferred tax credit.
The deferred tax credit of US$42,113,518 (2010: expense of US$42,113,518) relates solely to the changes
in fair value of the Jupiter investment. See Note 16 Deferred tax for more detail.
No amounts relating to tax have been recognised either in other comprehensive income, or directly
inequity.
11. INVESTMENTS
The reconciliation of the Investment Portfolio from 1 January 2011 to 31 December 2011 is as follows:
Investment
Opening at
1 January
2011
US$
Unrealised
fair value
gains
US$
Unrealised
fair value
losses
US$
Unrealised
foreign
exchange
losses
US$
Realised
foreign
exchange
gain on
Jupiter
forward
contract
US$
Net realised
loss on
acquisition
of Jupiter
shares and
loss on
Platmin Note
US$
Additions
and
disposals
US$
Accrued
interest &
structuring
fee
US$
Platmin
reclassic-
ation
4
US$
Closing at
31 December
2011
US$
Listed equity investments
Platmin Ltd 50,981,604 (5,211,360) (1,317,174) 9,002,629 (53,455,699)
Gemelds plc 24,931,480 14,533,179 (28,846) 39,435,813
Jupiter Mines
Ltd 226,436,117 (145,151,262) (49,059) 429,330 (1,478,098) 5,568,750 85,755,778
302,349,201 14,533,179 (150,362,622) (1,395,079) 429,330 (1,478,098) 14,571,379 (53,455,699) 125,191,591
Unlisted equity investments
Faberg Ltd 87,006,204 87,006,204
Moepi Group
(Boynton) 13,373,315 13,373,315
Richtrau
No 123 Ltd
(Magazynsk-
raal) 36,621,344

36,621,344
Platmin Ltd 53,455,699 53,455,699
137,000,863 53,455,699 190,456,562
Loans and receivables
Faberg Ltd
1
3,386,540 18,500,000 549,551 22,436,091
Platmin Ltd
2
28,478,184 (28,821,690) 343,506
31,864,724 (10,321,690) 893,057 22,436,091
Platmin Note
Platmin Note
3
9,182,662 (180,033) (9,002,629)
9,182,662 (180,033) (9,002,629)
Total
Investment
Portfolio 480,397,450 14,533,179 (150,362,622) (1,395,079) 429,330 (1,658,131) (4,752,940) 893,057 338,084,244

1
The Group has provided a commitment to loan Faberg Limited up to US$25,000,000, which can be drawn down until 31 July 2012. At
31 December 2011, Faberg Limited had drawn down US$21,500,000. The US$375,000 structuring fee for the arrangement of the loan
accrued at the date of the rst drawdown. The loan is earning interest at three month US$ LIBOR plus 4%. A further US$3,000,000 has
76
been drawn down since 31 December 2011; the outstanding balance at the date of signature of the Annual Report is US$24,500,000
(excluding interest and structuring fee). The balance of the loan, including interest, is due for repayment by 31 August 2012.

2
The Group provided a loan of US$25,845,409 to Platmin in two tranches during March and May 2010. The loan earned interest at the
Johannesburg Interbank Agreed Rate (JIBAR) plus 2%. Platmin repaid the outstanding loan of US$28,821,690 including accrued interest
and the structuring fee on 28 February 2011.

3
The Group acquired an indirect interest in a convertible note issued by Platmin (the Platmin Note) on 13 May 2010. The fair value of
the Platmin Note at 31 December 2010 was US$9,182,662. On 31 March 2011 the convertible notes were converted in full. The Group
received an indirect interest in 10,875,716 shares in Platmin. The fair value of the Platmin shares received was US$9,002,629, and the
Group realised a loss on conversion of US$180,033. As a result of the conversion, the Groups see through interest in Platmin decreased
from 7.64% to 7.49%.

4
Platmin delisted from AIM, the JSE and the TSX during 2011. Platmin suspended its listing on the JSE on 23 December 2011, and the
last JSE trading day was 22 December 2011. Accordingly, the Groups investment in Platmin has been reclassied from listed to unlisted
equity investments in the Platmin reclassication column.
The reconciliation of the Investment Portfolio from 1 January 2010 to 31 December 2010 is as follows:
Investment
Opening at
1 January 2010
US$
Unrealised fair
value gains
US$
Unrealised fair
value losses
US$
Unrealised
foreign
exchange
gains
US$
Unrealised
foreign
exchange
losses
US$
Net realised
gains on
Tshipi Jupiter
and POSCO
transactions
US$
Additions and
disposals
US$
Accrued
interest &
structuring fee
US$
Closing at
31 December
2010
US$
Listed equity investments
Platmin Limited 58,776,378 (22,464,899) 3,155,761 11,514,364 50,981,604
Gemelds plc 8,330,300 16,620,987 (348,545) 328,738 24,931,480
Jupiter Mines Ltd 15,844,993 129,176,653 8,010,896 74,886,368 (1,482,793) 226,436,117
82,951,671 145,797,640 (22,464,899) 11,166,657 (348,545) 74,886,368 10,360,309 302,349,201
Unlisted equity investments
Faberg Ltd 86,633,377 372,827 87,006,204
Moepi Group
(Boynton) 10,029,986 3,343,329 13,373,315
Richtrau
No 123 Ltd
(Magazynsk-
raal) 27,466,008 9,155,336 36,621,344
Tshipi 29,940,000 (29,932,927) (7,073)
154,069,371 12,498,665 (29,932,927) 365,754 137,000,863
Faberg Ltd
1
3,000,000 386,540 3,386,540
Tshipi 1,320,594 (47,937) 1,058,144 (2,430,725) 99,924
Platmin
2
25,845,409 2,632,775 28,478,184
1,320,594 (47,937) 1,058,144 26,414,684 3,119,239 31,864,724
Platmin Note
Platmin Note
3
47,062 9,135,600 9,182,662
47,062 9,135,600 9,182,662
Total
Investment
Portfolio 238,341,636 158,343,367 (22,464,899) 11,166,657 (396,482) 46,011,585 46,276,347 3,119,239 480,397,450

1
The Group has committed to loan Faberg Limited up to US$25,000,000, which can now be drawn down until 31 July 2012. At 31
December 2010, Faberg Limited had drawn down US$3,000,000. The outstanding balance of US$3,386,540 at 31 December 2010
includes the US$375,000 structuring fee and interest of US$11,540 calculated at three month US$ LIBOR plus 4%.

2
The Group provided a loan of US$25,845,409 to Platmin in two tranches during March and May 2010. The loan earned interest at JIBAR
plus 2%. The balance of the loan at 31 December 2010, including interest and structuring fee, was US$28,478,184. Platmin repaid the
loan, including interest and structuring fee, on 28 February 2011.

3
The Group acquired an indirect interest in a convertible note issued by Platmin (the Platmin Note) on 13 May 2010. The initial terms
were as follows:
The Platmin Note was non-interest bearing and denominated in US$;
The Platmin Note could be converted into Platmin shares at any time between acquisition and 31 December 2010; and
The Platmin Note had a conversion ratio of 1:US$ 1.215, and was convertible into 7,519,013 Platmin equity shares.
77
The terms of the convertible note were subsequently amended; the period of conversion was rst extended on 22 December 2010 and
on 18 February 2011, Platmin announced a reduction of the conversion price from 1:US$ 1.215 to 1:US$ 0.84. The period of conversion
was extended again on 28 February 2011. The reconciliation of the valuation of the Platmin Note from acquisition until 31 December
2010 is as follows:
US$
Cost of Platmin Note 9,135,600
Unrealised gain recognised at acquisition 1,683,550
Fair value of Platmin Note at acquisition 10,819,150
Unrealised fair value loss between 13 May 2010 and 31 December 2010 (1,636,488)
Fair value of Platmin Note at 31 December 2010 9,182,662

The valuation methodologies and other details for the Groups investments at 31 December 2011 are
detailed below. The JSE requires certain further information to be disclosed on the Groups ten largest
investments. Fewer than ten separate investments were held at current and prior balance sheet dates;
accordingly the following details are included for each investment in the Investment Portfolio.
Platmin Limited
Nature of investment Platmin is a mineral exploration, development and producing company
engaged in the exploration and the development of PGM projects, all located
in the Bushveld Complex. Platmin owns a 72.39% interest in Boynton, which
owns the PPM. The remaining 27.61% interest in Boynton is owned by the
Moepi Group of Companies.
The Groups indirect interest in Platmin was 7.49% at 31 December 2011.
The Groups initial investment was made in December 2008. The Groups
cost of investment is US$52,834,183.
Fair value methodology Platmin has now delisted from all of its previous listings, which were on the
TSX, AIM and the JSE. It is therefore no longer possible to value Platmin
using a listed share price.
Platmin commissioned a valuation report during the period which contained
a range of valuations. The Directors have valued Platmin from within this
range, based on a share price of CAD0.80 per share, and the closing
exchange rate of US$1:CAD1.0200.
Platmins last day of trading on the TSX was 23 December 2011; the mid
price of Platmin shares was CAD0.1475. The Directors do not believe that
this price gives an accurate reection of Platmins fair value. This price was
based on low volumes of shares traded; this lack of liquidity is one of the
reasons why the Platmin Board of Directors chose to delist Platmin in the
rst place.
78
Gemelds plc
Nature of investment Gemelds is a leading international coloured gemstone producer, primarily
focused on emeralds, and listed on AIM.
The Group owns a see through interest of 33.09% in Gemelds plc.
The Groups cost of investment is US$55,198,324 and the initial investment
was made in October 2007.
Fair value methodology Listed share price
The closing Gemelds mid price on AIM of GBP0.2375 per share, translated
at the closing exchange rate of US$1:GBP0.6471.
Jupiter Mines Limited
Nature of investment Jupiter is the ASX-listed mining company through which the Steel Making
Materials strategy is being pursued. Jupiter owns various assets in Western
Australia, including the Mount Ida magnetite iron ore project, the Mount
Mason DSO hematite project, and a 49.9% interest in the Tshipi manganese
joint venture in South Africa.
The Groups initial investment into Jupiter was made in May 2008. The Group
owned an effective 16.66% interest in Jupiter at the year end.
The Groups cash cost of investment is approximately US$14 million.
Fair value methodology Listed share price
The closing Jupiter mid price of AUD0.2800 per share on the ASX, translated
at the closing foreign exchange rate of US$1:AUD0.9829.
Faberg Limited
Nature of investment Faberg Limited is a luxury brand.
The Group currently owns an effective 49.1% interest in the ordinary shares
of Faberg Limited.
The Groups cost of investment is US$60,976,074. The Groups initial
investment was made in September 2007.
Fair value methodology Price of recent investment
Faberg Limited completed a capital raising during September 2009 to
both existing and new investors, including the Group. The Directors valued
the investment in Faberg Limited in line with the price per share of this
capitalraising.
79
Faberg Limited is unlisted, there have been relatively few transactions
in Faberg Limited shares and determining the fair value of the Groups
investment is difcult. The Directors have consistently applied the price of
recent investment methodology since September 2009, but acknowledge
that the September 2009 capital raising price becomes less recent and
relevant as time passes, and that using this event for valuation becomes
more difcult. The Directors have concluded that the current valuation
methodology is reasonable, but stress its subjectivity.
There have been various transactions in Faberg Limited shares since
September 2009 at a similar price per share to the September 2009 price.
These transactions were each immaterial, but nonetheless give some
support to maintaining this valuation level.
The Directors have considered whether other valuation methodologies could
be suitable for Faberg Limited, and in particular whether a valuation based
on discounted cash ow (DCF) analysis could be relevant. DCF analysis
is based on various assumptions, including Faberg Limiteds projected
cash inows and outows, and the discount rate that should be used.
Accordingly, depending on what assumptions are used, DCF analysis could
imply a materially higher, or materially lower, Faberg Limited valuation. For
this reason, the Valuation Guidelines recommend extreme caution in the
use of DCF analysis for valuation of unlisted investments, and note that the
use of another methodology, such as the price of a recent investment, is
more likely to be appropriate in most circumstances.
After having considered all the relevant indicators, the Directors have
concluded that there is no conclusive contradictory evidence to either
increase or decrease the valuation. The Directors therefore have concluded
that the fair value at the previous reporting date remains the best estimate of
fair value, and have continued to use this valuation. This treatment complies
with IFRS and is required by the Valuation Guidelines.
Faberg Limiteds most recent annual report, for the year to 31 March
2011 was issued on 5 August 2011. The audit opinion, from BDO LLP, was
positive, and did not draw attention to any emphases of matter. Faberg
Limiteds net assets at 31 March 2011 were US$57 million (audited). Faberg
Limiteds net assets at 31 December 2011 were US$45 million (unaudited).
The Groups 49.1% share of Faberg Limiteds net assets at 31 December
2011 would have been approximately US$22 million, whereas the fair value
of the Groups investment at 31 December 2011 was US$86,633,377. This
difference effectively equates to the incremental value added to the Faberg
Limited brand since the initial acquisition during 2007 because, in line
with the requirements of IAS38 Intangible Assets, this internally generated
goodwill is not capitalised on Faberg Limiteds own balance sheet.
80
The Moepi Group companies Boynton
Nature of investment The Moepi Group companies hold a 27.61% interest in Boynton, the other
72.39% of which is owned by Platmin. Boynton is an unlisted operating
company with interests in various PGM projects in the Bushveld Complex.
The Group owns an effective 2.48% interest in the ordinary shares of Boynton
via the Moepi Group companies.
Fair value methodology Price of recent investment- acquisition cost
The Groups cost of investment is US$13,373,315. The Groups initial
investment was made in August 2008.
The Directors have assessed the investment for any indicators of impairment,
based mainly on PGM prices and do not believe that any such indicators
exist.
The Directors believe that the fair value of each of the Groups African Queen
assets is prudent in the context of the anticipated Consolidation.
Richtrau No 123 (Pty) Ltd Richtrau/Magazynskraal
Nature of investment Richtrau is the company which owns the prospecting right over the
Magazynskraal property.
Magazynskraal is located on the Western Limb of the Bushveld Complex in
close proximity to PPM and Sedibelo. Studies suggest that Magazynskraal
has an estimated resource of 23 million 4E PGM ounces.
The Group owns an effective 6.19% interest in the ordinary shares of Richtrau.
Fair value methodology Price of recent investment- acquisition cost
The Groups cost of investment is US$36,621,344. The initial investment was
made in December 2008.
Richtrau is an unlisted company, with platinum reserves but no operations.
Using similar companies to value Richtrau is relatively difcult as no prospect/
company is exactly the same. Valuation is therefore relatively difcult and
subjective.
The Directors have assessed the investment for any indicators of impairment,
based mainly on PGM prices and do not believe that any such indicators
exist.
The Directors believe that the fair value of each of the Groups African Queen
assets is prudent in the context of the anticipated Consolidation.
81
12. INVESTMENTS IN ASSOCIATES
The Groups share of the aggregated assets and liabilities and the net (loss)/prot of the Groups principal
investments in associates were as follows:
Entity
Rox Conduit
Limited Rox Limited
Pallinghurst
Kalahari
(Mauritius)
Limited
Pallinghurst
Ivy Lane
Capital
Limited
Pallinghurst
Investor
Consortium
(Pty) Ltd Other Total
Country of incorporation
Cayman
Islands
Cayman
Islands Mauritius Mauritius South Africa
US$ US$ US$ US$ US$ US$ US$
2011
(Loss)/ prot for the year (100,590) 2,595 (109,248) (2,007,883) (1,872,195) (18,382) (4,105,703)
Balance sheet:
Assets 133,550 768,715 27,031 21,257,603 52,294 22,239,193
Liabilities (8,609) (136,279) (1,020,374) (6,105) (1,171,367)
Net assets/(liabilities) 124,941 768,715 (109,248) 21,257,603 (1,020,374) 46,189 21,067,826
2010
(Loss)/ prot for the year (22,164) (41,310) (511,820) 76,285 187,120 19,775 (292,114)
Balance sheet:
Assets 227,496 769,068 176,536 381,734 64,572 1,619,406
Liabilities (1,966) (2,948) (4,914)
Net assets/(liabilities) 225,530 766,120 176,536 381,734 64,572 1,614,492
As described in Note 23 Commitments, a series of transactions was announced during March 2011
that provides the platform for the consolidation of PPM, Sedibelo and Magazynskraal. In particular, the
Pallinghurst Co-Investors will acquire a 49.9% stake in Sedibelo, and interests in certain other assets. It
is anticipated that the cash outows will be material to the Group.
During 2011, US$23,559,037 (2010: US$30,452) was invested into two of the Groups associates,
Pallinghurst Ivy Lane Capital Limited (Ivy Lane, formerly known as Ivy Lane Capital Limited), and
Pallinghurst Investor Consortium (Pty) Ltd (PIC Pty), allocated for the Groups share of various anticipated
outows. The difference between the net assets of Ivy Lane at 31 December 2011 (US$21,257,603) and
31 December 2010 (US$176,536) is mostly due to this inow.
The associates listed above are all investment holding companies, and accordingly do not earn any
revenue or other income, other than, in some instances, nance income.
All associates nancial year ends are 31 December.
All holdings in associates are over 20% except for PIC Pty, in which the Groups shareholding is 18.56%.
Although the Groups interest is below 20%, the Group has signicant inuence over PIC Pty. The other
shareholders are other Pallinghurst Co-Investors; each shareholder, including the Group, is able to exert
signicant inuence over their shareholding, as the Pallinghurst Co-Investors are able to act collectively
to control the entity, see About the Group for more detail.
82
The fair value of each associate is considered to be equal to the consolidated net asset value. None of
the associates are listed on a stock exchange.
The Group holds interests in two investments, Gemelds and Faberg Limited, which would usually
be equity accounted for as associates, as the Groups interests are each between 20% and 50%.
The Group accounts for these investments under IAS39 at fair value as outlined in Note3 Accounting
policies.
The distribution of dividends or repayment of loans from PIC Pty would be subject to South African
Exchange Controls. There are no other signicant restrictions or regulatory requirements which could
impact on the ability of any of the Groups associates listed above, to transfer funds, such as dividends
or repayment of loans, back to the Group.
13. TRADE AND OTHER RECEIVABLES
2011
US$
2010
US$
(restated)
Prepaid Annual Management Benet 1,156,944 1,156,944
Other prepayments 18,856 56,018
Interest receivable 3,918
Other amounts receivable 14
1,179,732 1,212,962
In the prior year, certain prepayments were classied as other amounts receivable. The 2010 balance
has been restated to categorise these prepayments correctly.
14. CASH AND CASH EQUIVALENTS
2011
US$
2010
US$
Cash and cash equivalents 5,274,327 29,405,459
5,274,327 29,405,459
15. TRADE AND OTHER PAYABLES
2011
US$
2010
US$
Audit fee accrual 93,081 93,545
Administration costs payable 71,386 83,018
Accrual for Independent Valuers fee 31,027 28,064
Reimbursable expenses owed to the Investment Advisor 8,105
Other payables 43 79,874
Directors fees payable 9,000
203,642 293,501
83
16. DEFERRED TAX
The following table discloses the Groups deferred tax liabilities at 31 December 2011 and 31 December
2010:
Revaluation of
investments
held at FVTPL
US$
Total
US$
At 1 January 2010
Charged to the Income Statement (42,113,518) (42,113,518)
At 31 December 2010 (42,113,518) (42,113,518)
Credited to the Income Statement 42,113,518 42,113,518
At 31 December 2011
At 31 December 2010, the Group recognised a deferred tax liability relating to the unrealised fair value
gains on the Jupiter investment. This gain, multiplied by relevant Australian tax rates, resulted in a
potential liability of US$42,113,518. During 2011, the valuation of the Groups investment in Jupiter has
signicantly declined, and the tax base of the asset is now above its carrying amount, so a credit of
US$42,113,518 has been recognised in the Income Statement, reducing the liability to zero. In periods
prior to 2010, the Group did not have any unrealised fair value gains which resulted in the need to provide
for a deferred tax liability.
The Group has not recognised any deferred tax assets in either the current or prior year. Deferred tax
assets and liabilities may be offset where the Group has a legally enforceable right to do so. No such
offsetting has occurred in the current or prior years.
At the balance sheet date the Group had unrecognised tax losses of US$21,633,206 (2010:
US$30,266,844). No deferred tax asset has been recognised in relation to these losses as it is not
considered probable that there will be future taxable prots available, in the relevant jurisdictions, for the
Group to utilise these losses. The losses may be carried forward indenitely.
Temporary differences relating to the unremitted earnings of overseas subsidiaries and associates are
not signicant.
17. SHARE CAPITAL
Authorised share capital:
2011
US$
2010
US$
Ten Management Shares of US$1 each 10 10
999,000,000 Ordinary Shares of US$0.00001 each 9,990 9,990
10,000 10,000
84
Issued and fully paid up
Number of
shares
Share capital
US$
Share premium
US$
Management Shares (unlisted)
Management Shares of US$1 each
Balance at 31 December 2011 and 2010 2 2
Ordinary Shares (listed)
Ordinary Shares of US$0.00001
Balance at 31 December 2011 and 2010 475,803,860 4,758 300,226,258
Total share capital 31 December 2011 and 2010 4,760 300,226,258
Ordinary Shares
No Ordinary Shares have been issued or redeemed in the current or prior year.
Management Shares
The Management Shares are not listed on the JSE or BSX. No Management Shares have been issued
or redeemed in the current or prior year.
18. CASH (OUTFLOWS)/ INFLOWS FROM OPERATIONS
Notes
2011
US$
2010
US$
Net (loss)/prot for the year (72,308,624) 116,030,278
Accrued interest and structuring fee (893,057) (3,253,010)
Unrealised fair value gains 11 (14,533,179) (158,296,305)
Unrealised fair value losses 11 150,362,622 22,464,899
Unrealised foreign exchange gains 11 (11,166,657)
Unrealised foreign exchange losses 11 1,395,079 396,482
Net loss/(gain) on Platmin Note 11 180,033 (47,062)
Net realised gain on Tshipi/Jupiter transaction (46,004,512)
Realised foreign exchange gain on Jupiter forward contract 5 (429,330)
Realised fair value loss on acquisition of Jupiter shares 5 1,478,098
Net realised gain on POSCO transaction (7,073)
Net foreign exchange loss/(gain) on cash balances 3,620 (22,490)
Finance income received 9 (136,228) (494,051)
Share in loss of associates 12 4,105,703 292,114
Accrued expenses 31,027 93,545
Decrease/(increase) in trade and other receivables 33,230 (100,933)
(Decrease)/increase in trade and other payables (32,633,119) 32,358,365
Tax (credit)/expense (42,113,518) 42,113,518
Net cash outows from operations (5,457,643) (5,642,892)
85
19. FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT
The Groups capital structure
The Groups objectives when managing capital are to safeguard the Groups ability to continue as a
going concern while taking advantage of strategic opportunities in order to provide sustainable returns
for shareholders.
The Groups capital mostly consists of equity shares. There are also two Management Shares, as
described in Note 17 Share capital. The Companys Articles restrict borrowing to 30% of total assets.
The Group currently has no borrowing or borrowing facilities and therefore the Directors do not formally
monitor the Groups gearing ratio. The Group is not subject to any external capital requirements. No
dividends have been paid out to shareholders since incorporation. No changes have been made to the
Groups capital management objectives, policies or procedures during either 2011 or 2010.
Signicant accounting policies
Details of the Groups signicant accounting policies for each class of nancial asset, nancial liability
and equity instrument, including for initial recognition and subsequent remeasurement are disclosed in
Note 3 Accounting policies.
Analysis of nancial assets and liabilities
2011
US$
2010
US$
(restated)
Financial assets
Fair Value Through Prot or Loss
Listed investments 125,191,591 302,349,201
Unlisted investments 190,456,562 137,000,863
Platmin Note 9,182,662
Other loans and receivables 3,932
Financial liabilities
Other nancial liabilities- amortised cost (203,642) (32,805,734)
The methodologies used to determine the fair value of the Groups listed and unlisted equity investments
are based on the Valuation Guidelines. The specic methodologies for each investment are disclosed
more fully in Note 11 Investments. The fair values of the Groups unlisted equity investments in Moepi and
Magazynskraal approximate to their carrying values.
On occasion, the Group makes loans to investments within the Investment Portfolio, including, in the
current and prior periods, loans to Faberg Limited and Platmin. These investments may be unlisted and
may not be assessed regularly by external credit rating agencies, meaning that no formal credit rating
would exist.
86
The Groups only loan at the balance sheet date is the Faberg Limited loan (US$22,436,091, including
accrued interest and structuring fee). Faberg Limited is unlisted, and does not have an external credit
rating. The Directors believe that the risk of Faberg Limited defaulting on the loan is remote. However,
the Directors acknowledge that Faberg Limited may request that the loan is converted into equity, rather
than repaid; any such request would be considered at the appropriate time. The Directors have access
to Faberg Limiteds strategic planning and details of its nancial position, and are fully aware of why it
requires loan funding. As such, whilst the Directors believe that there is some credit risk associated with
the loan, the risk is acceptable.
Other loans and receivables reect interest receivable balances within the Group; no credit losses are
anticipated, and the carrying value should equate to fair value.
The carrying value of other nancial liabilities held at amortised cost equated to fair value, due to the
short-term maturities of these instruments. The Group did not hold any nancial liabilities carried at
FVTPL during the year.
There have been no reclassications between categories of nancial assets during 2011 (2010; no
reclassications). The Groups equity investment in Platmin continues to be categorised as at FVTPL;
although it is now an unlisted investment, rather than listed, its IAS39 categorisation remains unchanged
and no further disclosure is required.
The prior nancial liabilities liquidity risk disclosure included deferred tax liabilities as a nancial liability
(nancial liabilities were stated as US$74,919,252, not US$32,805,734). The 2010 balance has therefore
been restated to exclude deferred tax liabilities, as these are statutory, not contractual, liabilities and
are not nancial liabilities. Additionally, US$38,116 of prepayments at 31 December 2010 have been
categorised as prepayments rather than Other loans and receivables, and omitted from the comparative
IFRS7 analysis.
Financial instruments and risk prole
The Group is exposed in varying degrees to a variety of nancial instrument related risks. The Directors
monitor each of these risks, and an approved risk management policy is in place. The types of risk
exposure and quantication of the level of exposure in the balance sheet is provided as follows:
Market risk (including interest rate risk, foreign exchange rate risk, price risk on the Groups
Investment Portfolio, and commodityrisk);
Credit risk; and
Liquidity risk.
The Group does not enter into derivative nancial instruments for speculative purposes, and does not
trade derivatives. There are currently no open derivative positions within the Group.
Market risk
The signicant market risks affecting the Group are foreign exchange risk, interest rate risk and market
price risk (relating to the Investment Portfolio).
87
The sensitivity analyses disclosed below show the potential impact of possible changes in relevant
foreign exchange rates, interest rates and listed/unlisted equity prices on the Groups nancial position
at the year end. The only relevant assumption that has been made is that all sensitivities impacting the
Income Statement also impact equity.
There has been no change to the Groups exposure to market risks or the manner in which these risks
are managed or measured during the period.
Foreign exchange risk
The Group undertakes transactions and holds assets and liabilities denominated in foreign currencies. It
is therefore exposed to foreign exchange risk.
IFRS7 considers the foreign exchange exposure relating to nonmonetary assets and liabilities to be a
component of market price risk not foreign currency risk. However, the Directors monitor the exposure
on all foreign currency denominated assets and liabilities. The table below has therefore been analysed
between monetary and nonmonetary items to meet the requirements of IFRS7.
The Group has entered into various equity and loan investments, denominated in currencies other than
the US Dollar (US$). These are translated at the end of each reporting period, and the related foreign
exchange gain or loss is reected in the income statement. The Directors consider the denomination of
each investment as part of the initial investment appraisal process.
The Groups policy is to hold all cash balances in US$ at all times, other than when allocated for a
specic investment or for specic, material expenses. Cash balances are translated into a currency other
than US$ only when an outow of cash is imminent, or if required for legal or statutory reasons.
The Group may occasionally hold balances in currencies other than the US$ for a material investment which
is considered likely but is not yet certain, giving rise to potential foreign exchange risk if the investment
does not occur and the balance is translated back into US$ at a different exchange rate. Alternatively,
for specic material cash outows, on investments or expenses, the Group may choose to enter into
an appropriate hedging strategy, such as a forward contract or option, to minimise the Groups foreign
exchange exposure. The Group does not usually designate these derivatives as hedges under IAS39, or
apply hedge accounting; gains and losses on both the derivative and the hedged item will usually offset
naturally within the Income Statement. The Group entered into a derivative during the year in relation to
the Groups acquisition of Jupiter shares, see Note 5 Realised foreign exchange gain on Jupiter forward
contract and fair value loss on acquisition of Jupiter shares for more detail. The Group did not hold any
other similar derivatives during the year or at the year end.
Allocation of the Groups nancial assets and nancial liabilities by currency
The carrying amounts by currency of the Groups nancial assets and liabilities are as follows:
88
Financial assets and liabilities at 31 December 2011
Currency
1
Investments
at FVTPL
US$
Loans and
receivables
US$
Cash and cash
equivalents
US$
Total nancial
asset exposure
to currency risk
US$
Financial
liabilities at
amortised cost
US$
Total nancial
liability
exposure to
currency risk
US$
US$ 137,000,863 22,439,688 5,209,928 164,650,479 (203,642) (203,642)
GBP 39,435,813 98 39,435,911
ZAR 53,455,699 335 59,854 53,515,888
EUR 4,105 4,105
CAD
2

AUD 85,755,778 342 85,756,120
Total 315,648,153 22,440,023 5,274,327 343,362,503 (203,642) (203,642)

1
Currency is the functional currency in which each class of nancial asset is denominated. The quantitative values disclosed above are in US$.

2
In previous reporting periods, the Group classied its investment in Platmin in CAD for the purposes of IFRS7, as its primary listing was
on the TSX. Platmin has now delisted from the TSX, AIM and the JSE. Platmin has now been categorised above as a ZAR-denominated
asset.
Financial assets and liabilities at 31 December 2010:
Currency
1
Investments
at FVTPL
US$
Loans and
receivables
US$
Cash and cash
equivalents
US$
Total nancial
asset exposure
to currency risk
US$
Financial
liabilities at
amortised cost
US$
Total nancial
liability
exposure to
currency risk
US$
US$ 137,000,863 31,902,840 29,202,896 198,106,599 (32,805,734) (32,805,734)
GBP 24,931,480 1,121 24,932,601
ZAR 159,722 159,722
EUR 41,720 41,720
CAD
2
60,164,266 60,164,266
AUD 226,436,117 226,436,117
Total 448,532,726 31,902,840 29,405,459 509,841,025 (32,805,734) (32,805,734)

1
Currency is the functional currency in which each class of nancial asset is denominated. The quantitative values disclosed above are in US$.

2
At 31 December 2010, the Group classied the investment in Platmin as a South African asset for its segmental reporting, to reect where the
majority of Platmins assets are located. However, Platmins primary listing was on the TSX, and therefore the Groups currency risk exposure
for IFRS7 was reported as CAD.
Foreign exchange sensitivity analysis
The Groups Investment Portfolio is denominated in various currencies, which uctuate against the US$.
If the US$ strengthens relative to the various currencies in which the Groups nancial assets are held,
the Groups assets denominated in currencies other than US$ would decline in the value and vice versa.
The principal non-functional currencies to which the Group is exposed to are the British pound sterling,
South African Rand, euro, the Canadian dollar and the Australian dollar. Based on the Groups net
nancial assets and liabilities at 31 December 2011, a weakening of the US$ against the currencies
illustrated in the following table, with all other variables held constant, would have affected result after
tax, and equity as follows:
89
31 December 2011
Currency movement
Loss after tax
US$
Equity
US$
Movement of 1.2% in GBP/US$ 473,231 473,231
Movement of 10.3% in ZAR/US$ 5,512,136 5,512,136
Movement of 2.2% in EUR/US$ 90 90
Movement of 1.9% in AUD/US$ 1,629,366 1,629,366
At 31 December 2010, a weakening of the US$ against the following currencies, with all other variables
held constant, would have affected result after tax, and equity as follows
31 December 2010
Currency movement
Prot after tax
US$
Equity
US$
Movement of 4.1% in GBP/US$ 1,022,237 1,022,237
Movement of 1.6% in CAD/US$ 962,628 962,628
Movement of 3% in AUD/US$ 6,793,084 6,793,084
The Groups analysis of nancial assets and liabilities has been restated, see above, which has had a
minor impact on the 2010 currency movement analysis presented above.
The Groups nancial asset and liability prole does not remain constant and, therefore, these sensitivities
should be used with care.
Interest rate risk
Interest rate risk is the risk that the fair value or future cash ows of a nancial instrument will uctuate
because of changes in market interest rates. The Group is exposed to interest rate risk on its cash
balances and interest bearing loans made to companies within the Investment Portfolio.
The Groups policy is to invest cash at oating rates of interest and to maintain cash reserves in short-
term investments (less than one year) in order to maintain liquidity, while achieving a satisfactory return
for shareholders. During the current and prior year, all uninvested cash was accessible either on demand,
or shortly afterwards.
The Group may make loans to companies within the Investment Portfolio, in either US$ or relevant local
currencies. These loans are usually based on the relevant national inter-bank rates and accordingly any
changes in these interest rates would have an impact on the Income Statement.
The Group may make non-interesting bearing loans to companies within the Investment Portfolio in
certain circumstances.
An analysis of the expected maturity of the Groups nancial assets at the balance sheet date is shown
below. Expected maturities are usually based on contractual maturities.
31 December 2011
Less than
1 month
US$
1-6 months
US$
6 months+
US$
Cash and cash equivalents at variable interest rates 1,397,111 3,877,216
Loans and receivables at variable interest rates 22,440,023
Total 1,397,111 3,877,216 22,440,023
90
31 December 2010
Less than
1 month
US$
1-6 months
US$
6 months+
US$
Cash and cash equivalents at variable interest rates 29,380,049 25,410 -
Loans and receivables at variable interest rates - 28,478,184 3,386,540
29,380,049 28,503,594 3,386,540
The nancial statements for the year ended 31 December 2010 presented a split of interest bearing and
non-interest bearing nancial assets, without disclosing the anticipated maturities of the assets. The
Directors believe that the above presentation enhances the previous disclosure.
Interest rate risk- sensitivity analysis
The sensitivity analyses below have been determined based on the exposure to interest rates for the
Groups nancial instruments at the balance sheet date. When the Directors consider interest rate risk
internally, a 0.5% increase or decrease is used for analysis. The Directors consider this to be a reasonably
possible change in interest rates in the current interest rate climate.
If interest rates had been 0.5% higher/lower and all other variables were held constant, the Groups Loss
for the year ended 31 December 2011 would have decreased/increased by US$138,571 (2010 (restated):
Prot for the year would have increased/decreased by US$306,541).
None of the Groups nancial liabilities were interest bearing at the balance sheet date and no further
analysis is provided to the Directors.
Price risk
Price risk is the risk that the price for listed investments uctuates with a corresponding impact on
the income statement. The Directors valuations for unlisted investments are also likely to increase or
decrease over time. These changes will be linked to the performance of the underlying investments.
The performance of the Groups investments could be affected by a number of factors, as articulated in
Principal Risks and Uncertainties.
The listed and unlisted investments in the balance sheet subject to price risk are set out in Note 11
Investments, with the relevant valuation methodologies used.
Price risk- sensitivity analysis
The fair value of each of the Groups listed and unlisted investments could vary signicantly from period
to period for many different reasons, as articulated in the Groups Principal Risks and Uncertainties.
The sensitivity analyses below have been determined based on the Groups exposure to equity price risk
at the reporting date:
If the valuations of the of the Groups unlisted investments had been 25% lower, the impact on
the Groups Income Statement would have been US$47,614,141;
If the valuations of the of the Groups listed investments had been 25% lower, the impact on the
Groups Income Statement would have been US$31,297,898.
91
All movements in the fair values of nancial assets and liabilities affect prot or loss; no movements are
accounted for directly in reserves.
In prior reporting periods, the Group disclosed sensitivity analyses based on a potential 25% decrease
in the fair value of the Groups unlisted equity investments, but only a 10% decrease in the valuations of
the Groups listed investments. In the light of current uctuations in the valuations of many listed equity
investments, including those in which the Group has an interest, the Directors consider disclosure of a
25% decrease in the fair values of the Groups listed investments to be more relevant to shareholders.
Other price risk disclosures
The price risk sensitivity analysis above may not be fully representative of the risks the Group is subject
to, for reasons including those set out below:
The Groups unlisted investments are illiquid and there are no regular transactions in these
shares. As such the Group may nd it difcult to exit these assets at the current valuations as
stated in the balance sheet, and may be unable to sell partial stakes easily, as there may be a
shortage of willing buyers.
Similarly, although the markets for the Groups listed investments are more active, the shares
are not fully liquid. The Group owns signicant interests in some of its investments, plus other
Pallinghurst Co-Investors hold further signicant indirect interests. As such, if the Group
wished to fully divest of its interest in any specic investment, it may not be possible to realise
the current fair values as recognised in the balance sheet. Conversely, the amounts realised
on disposal may be higher than the current balance sheet valuation.
The Directors do not attempt to formally hedge the risk that a forced exit from an investment may result in
a lower realised valuation that the carrying amount. However, the Directors believe that each investment
continues to make signicant progress, and are comfortable that the current investment valuations give
a reasonable representation of fair value.
Commodity risk
As the Group has signicant investments in mining assets, changes in commodity prices are a key
risk to the business. However, the Group does not consolidate any mining assets or hold any physical
commodities on its balance sheet, so commodity price changes have no direct impact on the Financial
Statements. The impact of commodity prices is therefore omitted from this analysis (as there would be
no disclosable impact). Nonetheless, users of the Financial Statements should be aware that commodity
price movements, particularly of PGMs, manganese and iron ore, and coloured gemstone prices, are
likely to have an impact on the valuation of the Groups investments.
Credit risk
Credit risk is the risk of loss due to a debtors non-payment or the failure of a counterparty with whom
cash balances are held. The Groups credit risk primarily arises on the trade and other receivables and
cash balances.
92
The trade and other receivables balance usually relates to balances receivable upon the exit from an
investment and as such is concentrated into a small number of counterparties. The Directors monitor
these counterparties closely and believe that the danger of default in these situations is low. If an exit
from an investment occurs the counterpartys creditworthiness is assessed before any commitment
to sell is made. The Group does not carry out trading activities other than entering into and exiting
from investments and there are no other material trade and other receivables. As such, the Groups
exposure to credit risk from this balance is not considered to be signicant. The Group currently holds
no provisions against bad or doubtful debtors.
Materially all of the Groups cash balances are held in US$, with Investec Bank (Channel Islands) Limited,
a subsidiary of Investec Bank plc (Investec). The bankruptcy or insolvency of Investec could have a
signicant adverse impact on the Group. The Groups subsidiaries and associates hold immaterial cash
balances with various other banks and institutions. The failure of one of these counterparties would be
unlikely to have a signicant impact on the Group.
Investecs credit rating has been BBB minus (with Fitch Ratings) since 30 November 2011, when it was
downgraded from BBB. The revised BBB minus rating remains investment grade and the Directors are
comfortable that Investec continues to have high levels of both capital and liquidity. Nonetheless, the Directors
may extend the Groups range of counterparties in the future to reduce the Groups credit/counterparty risk.
The Groups other loan receivable balances have been made to existing investments within the Investment
Portfolio, if, for example, short-term working capital requirements are funded through loans rather than
further equity investment.
The Groups sole loan at the balance sheet date is to Faberg Limited. Faberg Limited is an unlisted company,
and does not have a credit rating with external credit agencies. The Directors acknowledge that Faberg
Limited may request that the loan is converted into equity, rather than repaid; any such request would be
considered at the appropriate time. The Directors have access to Faberg Limiteds strategic planning and
details of its nancial position, and are fully aware of why it requires loan funding. As such, whilst the Directors
believe that there is some credit risk associated with the loan, this risk is considered to be acceptable.
Maximum exposure to credit risk
Financial assets that are neither past due nor impaired:
2011
US$
2010
US$
Platmin Note 9,182,662
Current assets
Trade and other receivables 1,179,732 1,212,962
Less prepayments (1,175,800) (1,212,962)
27,714,350 70,452,845
Although the Groups credit risk on loans to the Investment Portfolio is considered to be low, clearly there
are risks associated with the Investment Portfolio. (See the Market risk- Price risk section above for more
detail on the price risks affecting the Investment Portfolio).
93
Liquidity risk
Liquidity risk is the risk that the Group will encounter difculty in meeting the obligations associated with
its nancial liabilities.
The Group does not hold any nancial liabilities at discounted values. As such, the expected undiscounted
cash ow of the Groups nancial liabilities at the balance sheet date is as follows:
2011
US$
2010
US$
(restated)
1
Financial liabilities expiring in one year or less 203,642 32,805,734
Total nancial liabilities 203,642 32,805,734

1
The prior year nancial liabilities liquidity risk disclosure included deferred tax liabilities as a nancial liability. This was inaccurate, as
deferred tax liabilities are not considered to be nancial liabilities (as they are statutory, not contractual, liabilities). Additionally, the
Performance Incentive accrual (the calculation of which is detailed in Note 7 Investment Managers benets) was erroneously included
as a nancial instrument expiring in over one year in the prior year. The 2010 balance has therefore been restated for these two points.
The Group did not hold any derivative liabilities at 31 December 2011.
The Group has not utilised any overdrafts since incorporation. The Group ensures that there are sufcient
levels of cash for any investment commitments and expenses as they fall due and does not anticipate
entering into signicant borrowing in the future.
Sensitivity analyses representative for the position throughout the year
The sensitivity analyses presented above are based on the nancial instruments held at the year end.
The sensitivity analyses presented for 31 December 2011 are considered likely to be representative of
the nancial instruments held and risks to the balance sheet in the immediate future.
The mix of nancial instruments is broadly similar at 31 December 2011 compared to 31 December
2010. Nonetheless, users of the Financial Statements should be aware that the Groups risk prole can
change over time; for example, if the Group completed a capital raising or divested of an investment, the
importance of interest rate risk and counterparty/credit risk would increase.
As there is uncertainty as to how the Groups risk prole will change in the future, no further more
representative sensitivity disclosure has been disclosed as the Directors do not believe that it would be
useful to users of the Financial Statements.
Fair value analysis
The Groups only nancial instruments that are measured at fair value subsequent to initial recognition
are the equity investments within the Investment Portfolio and previously the Platmin Note. The following
table provides an analysis of these nancial instruments, grouped into Levels 1 to 3 based on the degree
to which fair value is observable:
Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active
markets for identical assets or liabilities;
Level 2 fair value measurements are those derived from inputs other than quoted prices
included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices)
or indirectly (i.e. derived from prices); and
94
Level 3 fair value measurements are those derived from valuation techniques that include inputs
for the asset or liability that are not based on observable market data (unobservable inputs).
31 December 2011
Level 1
US$
Level 2
US$
Level 3
US$
Total
US$
Financial assets at FVTPL
Equity investments 125,191,591 190,456,562 315,648,153
125,191,591 190,456,562 315,648,153

1
On 23 December 2011, Platmin delisted from the JSE. Further detail on the delisting and on the revised valuation methodology being
used are included in Note 11 Investments. The investment in Platmin has been reclassied from listed to unlisted investments in the
balance sheet at 31 December 2011, and for the purposes of IFRS7, has been reclassied from Level 1 to Level 3.
31 December 2010
Level 1
US$
(restated)
Level 2
US$
(restated)
Level 3
US$
(restated)
Total
US$
(restated)
Financial assets at FVTPL
1
Equity investments 302,349,201 137,000,863
2
439,350,064
Platmin Note 9,182,662 - 9,182,662
311,531,863 137,000,863 448,532,726

1
In the prior year, the Financial assets at FVTPL balance erroneously included certain US$31,864,724 of loans and receivables. Loans and
receivables are initially measured at fair value, and subsequently measured at amortised cost, and should not be presented as an asset
at FVTPL. The prior year balance of US$480,397,450 has been restated to US$448,532,726 above. To further enhance the disclosure,
the different categories of investment designated at FVTPL have been presented separately.

2
Equity investments of US$137,000,863 have been restated and included as Level 3 rather than Level 2 in 2010. The equity investments
balance includes investments in Faberg Limited, Moepi and Magazynskraal. These were initially categorised as Level 2 investments at
31 December 2009, however, these investments should have been classied as Level 3. The underlying valuation methodologies for
these investments have not changed, and there have been no relevant amendments to IFRS7. The investment valuations and impairment
reviews for these assets are indirectly based on market inputs, such as PGM prices. However, there is no direct link between this input
and the valuation of the investment in the balance sheet. The Directors have therefore agreed that a Level 3 categorisation is more
prudent and better represents the nature of these unlisted investments.
IFRS7 requires reconciliation for Level 3 nancial assets from the beginning to the end of the period.
Areconciliation of the Groups equity investments, from 1 January 2011 to 31 December 2011 is provided
below:
Level 1
US$
Level 2
US$
Level 3
US$
Total
US$
Financial assets at FVTPL- equity investments
Balance at 31 December 2010 302,349,201 137,000,863 439,350,064
Fair value gains 14,533,179 14,533,179
Fair value losses (150,362,622) (150,362,622)
Foreign exchange gains
Foreign exchange losses (1,395,079) (1,395,079)
Realised foreign exchange gain on Jupiter forward
contract 429,330 429,330
Realised fair value loss on acquisition of Jupiter shares (1,478,098) (1,478,098)
Additions 14,571,379 14,571,379
Platmin reclassication (53,455,699) 53,455,699
95
The comparative reconciliation of the Groups equity investments, from 1 January 2010 to 31 December
2010 is provided below:
Level 1
US$
(restated)
Level 2
US$
(restated)
Level 3
US$
(restated)
Total
US$
(restated)
Financial assets at FVTPL- equity investments
Fair value gains 145,797,640 12,498,665 158,296,305
Fair value losses (22,464,899) (22,464,899)
Foreign exchange gains 11,166,657 11,166,657
Foreign exchange losses (348,545) (348,545)
Net realised gain on Jupiter and POSCO transactions 74,886,368 (29,932,927) 44,953,441
Additions 11,843,102 372,827 12,215,929
Disposals (1,482,793) (7,073) (1,489,866)
The signicant assumptions used to determine the fair valuations of the Groups equity investments are
disclosed in Note 11 Investments.
20. RELATED PARTY TRANSACTIONS
The Groups subsidiaries, joint ventures and associates are related parties.
The Group owns signicant stakes in most of the investments within the Investment Portfolio. The Group
accounts for all its investments at fair value through the prot and loss account, even in situations where
the Group has signicant inuence over or joint control of the asset. See Note 3 Accounting policies for
more detail.
Despite these accounting treatments, per IAS24, all the Groups investments are considered to be related
parties, and transactions with them are related party transactions. Related party transactions include the
entering into and exiting from equity investments, and loan transactions, all of which are detailed in Note
11 Investments.
The Investment Manager, Administrator are all related parties of the Group due to common directors.
The amounts due for the Investment Managers Benet and the Performance Incentive are disclosed
in Note 7 Investment Managers benets. The Administrator is entitled to annual minimum fees totalling
US$80,000, payable quarterly in arrears.
Mr Platt-Ransom and Ms White are Legis directors. Mr Tolcher was a Legis director until 30 September
2011. The Groups relationship with Legis is at arms length. The total fees paid to Legis during the year
ended 31 December 2011 amounted to US$106,216 (31 December 2010: US$101,865).
Transactions entered into with related parties were under terms no more favourable than those with
thirdparties.
Directors fees
The Non-Executive Directors, Mr Platt-Ransom, Mr Harris and Mr Tolcher, each received a Directors
fee of US$25,000 for 2011 (2010: US$25,000 per Non-Executive Director). Mr Harris also receives
96
US$5,000 as a Director of Pallinghurst Consolidated (Cayman) Limited, a subsidiary. The amount
included in the Income Statement for Directors fees for the year ended 31 December 2011 is US$80,000
(2010:US$77,500).
On 29 February 2012, Ms White was appointed as a Non-Executive Director and will also receive a
Directors fee of US$25,000 per annum. Ms White did not receive a fee for her role as a Permanent
Alternate. Mr OMahoney was appointed as a Permanent Alternate to Mr Platt-Ransom and Ms White on
29 February 2012. Mr OMahoney does not receive a fee for his role as a Permanent Alternate.
The Executive Directors have waived the receipt of any Directors fees from the Company, as noted in
the Remuneration Committee Report.
Additionally, certain Directors fees are paid from Jupiter and Platmin to Group subsidiaries or associates.
Mr Gilbertson and Mr Frandsen do not receive these Directors fees in a personal capacity. The fees
are instead paid into the relevant Group entities that directly hold the relevant interests. The following
amounts were received during the year:
31 December
2011
US$
31 December
2010
US$
Brian Gilbertson
Jupiter; Non-Executive Chairman 31,785 34,076
Platmin; Non-Executive Chairman 105,960 105,960
137,745 140,036
Arne H. Frandsen
Platmin; Director 41,080 41,080
41,080 41,080
In addition to the above, certain amounts are payable by the Company to the Investment Manager, as
disclosed more fully in Note 7 Investment Managers benets. Mr Gilbertson, Mr Frandsen and Mr Willis
are all Partners of the Investment Manager.
The Directors interests in the Company
The Directors interests in the Company at both 31 December 2011 and 31 December 2010 were as
follows:
Number of
shares held
% interest in
the Company
The Brian Gilbertson Discretionary Settlement
1
13,858,985 2.91%
Arne H. Frandsen 2,425,821 0.51%
Andrew Willis 1,092,554 0.23%
Clive Harris 250,000 0.05%
17,627,360 3.70%

1
A discretionary trust of which Brian Gilbertson is a beneciary.
Additionally, the other Partners of the Investment Manager also hold shares in the Company, which were
acquired at fair value. Their interests, at 31 December 2011 and 31 December 2010, were as follows:
97
Number of
shares held
% interest in
the Company
Sean Gilbertson 2,385,190 0.50%
Priyank Thapliyal 2,385,190 0.50%
4,770,380 1.00%
The interests disclosed above have not changed between 31 December 2011 and the date of this
AnnualReport.
21. HEPS AND NAV PER SHARE
The Groups HEPS is as follows:
31 December
2011
US$
31 December
2010
US$
(Loss)/prot for the year (72,308,624) 116,030,278
Weighted average number of shares in issue 475,803,860 475,803,860
HEPS (0.15) 0.24
There are no reconciling items between HEPS and earnings per share. There was no change in the
number of shares during the current or prior year, therefore earnings per share is equal to diluted earnings
per share.
The Groups US$ NAV per share is as follows:
31 December
2011
US$
31 December
2010
US$
Net assets 365,402,487 437,711,111
Number of shares in issue 475,803,860 475,803,860
NAV per share 0.77 0.92
22. CONTINGENT LIABILITIES AND CONTINGENT ASSETS
On 31 August 2011, the Company agreed to act as a limited guarantor for the lease of Faberg Limiteds
New York retail outlet at 694 Madison Avenue. The limited guarantee extends to the Company being
liable for the payment of rent for the outlet if the landlord takes legal action to evict Faberg Limited for
non-payment of rent or other charges, and only to the extent of the rent and charges from the date that
legal action commences to the date that Faberg Limited moves out of the premises.
The Directors believe that there is a very low likelihood that this guarantee will be called upon. Their
assessment of the maximum amount of the Groups contingent liability is US$219,000. There is a degree
of uncertainty over this amount regarding the length of time Faberg Limited might take to vacate the
premises in the event of legal action on the part of the landlord and, therefore, how much rent might
become due. However, the Directors believe that it is highly unlikely that the Group will become liable
for any amounts under this guarantee. The Group has not become liable for any amounts under this
guarantee to date.
The Group had no other signicant contingent liabilities or contingent assets at 31 December 2011, nor
any signicant contingent liabilities or contingent assets at 31 December 2010.
98
23. COMMITMENTS
Commitment to invest in Sedibelo
The Group has a commitment to take up its share of the investment in Sedibelo. Sedibelo is located on
the Western Limb of the Bushveld Complex and is contiguous to both PPM and Magazynskraal. The
Bakgatla now holds 100% of Sedibelo, having acquired the nal 10% interest in the rst half of 2011,
which was previously held by Barrick Platinum South Africa (Pty) Limited. During March 2011, a suite
of transactions was announced that provides the platform for the consolidation of PPM, Sedibelo and
Magazynskraal. In particular, the Pallinghurst Co-Investors will acquire a 49.9% stake in Sedibelo, and
interests in certain other assets.
Funds were contributed to Ivy Lane, one of the Groups associates, during the year, for the satisfaction
of these commitments. It is anticipated that the cash outows will be material to the Group. Completion
of the suite of transactions is subject to various conditions.
Faberg Limited loan commitment US$25 million
The Group committed to loan Faberg Limited up to US$25 million on 24 May 2010. This was
subsequently amended on 27 July 2011 and the commitment can now be drawn upon by Faberg
Limited between 1 October 2010 and 31 July 2012. Faberg Limited had drawn down US$21,500,000
by 31 December 2011.A further US$3,000,000 has been drawn down since 31 December 2011 as
described in Note 24 Events occurring after the end of the year. The Groups outstanding commitment,
which excludes the US$375,000 structuring fee, is US$125,000. The terms of the loan agreement are
that the amount drawn down is due for repayment by 31 August2012.
No further commitments have been entered into at the date of signature of these Financial Statements.
24. EVENTS OCCURRING AFTER THE END OF THE YEAR
African Queen Consolidation and IDC investment
As described in Note 23 Commitments, a series of transactions was announced during March 2011 that
provides the platform for the Consolidation (of PPM, Sedibelo and Magazynskraal).
During March 2012, the IDC has agreed to invest, upon the Consolidation, ZAR3.24 billion, in return for
16.2% of the consolidated entity. The IDC investment is expected to complete during 2012.
The Directors believe that the completion of the IDCs investment into the consolidated entity may
have a positive effect on the Groups NAV, which it is not yet possible to quantify. Completion of the
Consolidation and the IDC investment are subject to various conditions including approvals from the
South African Reserve Bank.
Further US$3 million drawdown of Faberg Limited loan
The Group has provided a commitment to loan Faberg Limited up to US$25 million, which can be
drawn down at any point up until 31 July 2012. The amount drawn down at 31 December 2011 was
US$21.5 million.
99
Faberg Limited has drawn down a further US$3 million subsequent to the year end; the outstanding
balance has therefore increased to US$24.5 million (excluding interest and structuring fee).
Fall in Jupiter share price
The Jupiter share price has fallen since 31 December 2011. The estimated impact of this non-adjusting
event is as follows:
The Jupiter share price on 26 March 2012 was AUD0.2350 and the exchange rate was US$1:AUD0.9558.
The fair value of the Groups investment was US$74,008,079, US$11,747,699 lower than the valuation of
US$85,755,778 included in the Balance Sheet.
Increase in Gemelds share price
The Gemelds share price has increased since 31 December 2011. The estimated impact of this non-
adjusting event is as follows:
The Gemelds share price on 26 March 2012 was GBP0.3875 and the exchange rate was US$1:GBP0.6303.
The fair value of the Groups investment was US$66,046,562, US$26,610,749 higher than the valuation
of US$39,435,813 included in the Balance Sheet.
Approval of Annual Report
The Annual Report was approved by the Directors and authorised for issue on 29 March 2012.
100
ANNEXURE II
PRO FORMA BALANCE SHEET AND INCOME STATEMENT
The unaudited pro forma consolidated balance sheet and income statement of the Group prior to and after
the implementation of the Rights Offer is set out below. The unaudited pro forma consolidated balance sheet
and income statement of the Group have been presented for illustrative purposes only and may, because
of their nature, not give a fair reection of the Companys results, nancial position and changes in equity
following the implementation of the Rights Offer. It has been assumed for purposes of the unaudited pro forma
nancial effects that the Rights Offer was implemented with effect from 1 January 2011 and 31 December
2011 for income statement and balance sheet purposes respectively. The Directors are responsible for the
preparation of the unaudited pro forma consolidated balance sheet and income statement. The pro forma
nancial information has been presented in a manner consistent with both the format and accounting policies
adopted by the issuer in its report of historical nancial information. The independent reporting accountants
report relating to the pro forma nancial information is set out in Annexure III to this Circular.
101
PRO FORMA CONSOLIDATED BALANCE SHEET
Before the
Rights Offer
1
Pro forma
adjustment
Pro forma after
the Rights Offer
Non-current assets
Investments in associates 21,067,826 21,067,826
Listed investments 125,191,591 28,986,652 154,178,243
Unlisted investments 190,456,562 38,648,869 229,105,431
Loans and receivables 22,436,091 28,986,651 51,422,742
338,084,244 96,622,172 434,706,416
Total non-current assets 359,152,070 96,622,172 455,774,242
Current assets
Trade and other receivables 1,179,732 1,179,732
Total current assets 6,454,059 6,454,059
Total assets 365,606,129 96,622,172 462,228,301
Non-current liabilities
Deferred tax liability
Current liabilities
Performance Incentive accrual
Trade and other payables 203,642 203,642
Total current liabilities 203,642 203,642
Total liabilities 203,642 203,642
Net assets 365,402,487 365,402,487
Share capital 4,760 3,571 8,331
Share premium 300,226,258 96,618,601 396,844,859
Retained earnings 65,171,469 65,171,469
Equity 365,402,487 96,622,172 462,024,659
Shares in issue 475,803,860 357,142,857 832,946,717
NAV and tangible NAV per Share 0.77 (0.21) 0.55
Notes:
1
The gures in the Before Rights Offer column have been extracted without adjustment from the audited nancial statements of the Company
as at 31 December 2011.
2
Share capital has been adjusted to include the ordinary share capital portion of 357,142,857 Rights Offer Shares issued at a value of ZAR2.24
per Share. This is based on the assumption that the Rights Offer will be fully subscribed.
3
Transaction costs of approximately US$2,265,343, as set out in paragraph 24 on page 50 of this Circular, have been taken into account against
share premium as costs directly attributable to the issue of shares.
4
The Company will raise ZAR800 million before expenses (approximately US$98.9 million based on an assumed exchange rate of US$1:ZAR8.09,
being the exchange rate as at 31 December 2011).
5
The pro forma nancial information has been prepared in accordance with IFRS and in terms of The Guide on Pro Forma Financial Information
issued by The South African Institute of Chartered Accountants, in line with the Listings Requirements.
6
The ZAR800 million raised by way of the Rights Offer will be reinvested, net of transaction costs, in the Investments as outlined in this Circular
and in accordance with the Investment policy outlined in paragraph 2.1 of the Revised Listing Particulars.
7
Shares in issue have been adjusted for the 357,142,857 Rights Offer Shares to be issued.
8
Funds invested into the listed and unlisted investments will not result in control or signicant inuence being obtained and hence will not
represent a business combination.
102
PRO FORMA CONSOLIDATED INCOME STATEMENT
Before the
Rights Offer
1
Pro forma
adjustment
Pro forma after
the Rights Offer
INCOME
Unrealised fair value gains 14,533,179 14,533,179
Unrealised fair value losses (150,362,622) (150,362,622)
Unrealised foreign exchange losses (1,395,079) (1,395,079)
Net (loss)/gain on Platmin Note (180,033) (180,033)
Realised foreign exchange gain on Jupiter forward contract 429,330 429,330
Realised fair value loss on acquisition of Jupiter shares (1,478,098) (1,478,098)
(138,453,323) (138,453,323)
Loan interest income 893,057 893,057
893,057 893,057
Net (losses)/gains on investments and income from operations (137,560,266) (137,560,266)
EXPENSES
Investment Managers Benet (4,627,775) (4,627,775)
Performance Incentive accrual reversal/(accrual) 32,512,233 32,512,233
Operating expenses (773,239) (773,239)
Net foreign exchange (losses)/gains (3,620) (3,620)
27,107,599 27,107,599
(Loss)/prot from operations (110,452,667) (110,452,667)
Finance income 136,228 136,228
Finance costs
Net nance income 136,228 136,228
(Loss)/prot before share in loss of associates (110,316,439) (110,316,439)
Share in loss of associates (4,105,703) (4,105,703)
(Loss)/prot before tax (114,422,142) (114,422,142)
Tax credit/(expense) 42,113,518 42,113,518
NET (LOSS)/PROFIT FOR THE YEAR (72,308,624) (72,308,624)
Shares in issue at year end 475,803,860 357,142,857 832,946,717
Basic and diluted (loss)/earnings per ordinary share (0.15) (0.07) (0.09)
Notes:
1
The gures in the Before Rights Offer column have been extracted without adjustment from the published audited results for the year ended
31 December 2011.
2
Shares in issue have been adjusted for the 357,142,857 Rights Offer Shares to be issued.
103
ANNEXURE III
INDEPENDENT REPORTING ACCOUNTANTS LIMITED
ASSURANCE REPORT ON THE UNAUDITED PRO FORMA
FINANCIAL EFFECTS
The Directors
11 New Street
St Peter Port
Guernsey
GY1 2PF
5 June 2012
Dear Sirs
Independent Reporting Accountants limited assurance report on the unaudited pro forma nancial
effects
Introduction
We have performed our limited assurance engagement with regard to the unaudited pro forma
nancial effects on the income statement and balance sheet (collectively the Pro Forma Financial
Information) of Pallinghurst Resources Limited (Pallinghurst) set out in paragraph 8 on page 42
and Annexure II of the Circular to be dated on or about 5 June 2012 issued in connection with the
renounceable rights offer (Circular).
The Pro Forma Financial Information has been prepared for purposes of complying with the requirements
of the JSE Limited (JSE), for illustrative purposes only, to provide information about how the rights
offer (Rights Offer) might have affected the reported nancial information had the transaction been
undertaken on 31 December 2011 for balance sheet purposes, and on 1 January 2011 for income
statement purposes.
Because of its nature, the Pro Forma Financial Information may not present a fair reection of the nancial
position, changes in equity, results of operations or cash ows of Pallinghurst, after the Rights Offer.
Directors responsibility
The Directors of Pallinghurst (Directors) are solely responsible for the compilation, contents and presentation
of the Pro Forma Financial Information contained in the Circular and for the nancial information from which
it has been prepared.
Their responsibility includes determining that the Pro Forma Financial Information contained in the Circular
has been properly compiled on the basis stated, the basis is consistent with the accounting policies of
104
Pallinghurst and the pro forma adjustments are appropriate for the purposes of the Pro Forma Financial
Information as disclosed in terms of the listings requirements of the JSE (the Listings Requirements).
Reporting accountants responsibility
Our responsibility is to express a limited assurance conclusion on the Pro Forma Financial Information
included in the Circular. We conducted our limited assurance engagement in accordance with the International
Standard on Assurance Engagements applicable to Assurance Engagements Other Than Audits or Reviews
of Historical Financial information and the Guide on Pro Forma Financial Information issued by the South
African Institute of Chartered Accountants.
This standard requires us to comply with ethical requirements and to plan and perform the assurance
engagement to obtain sufcient appropriate audit evidence to support our limited assurance conclusion,
expressed below.
We do not accept any responsibility for any reports previously given by us on any nancial information used
in the compilation of the Pro Forma Financial Information beyond that owed to those to whom those reports
were addressed by us at the dates of their issue.
Sources of information and work performed
Our procedures consisted primarily of comparing the unadjusted audited historical nancial information of
Pallinghurst with the source documents, considering the pro forma adjustments in light of the accounting
policies of Pallinghurst, considering the evidence supporting the pro forma adjustments, recalculating the
amounts based on the information obtained and discussing the Pro Forma Financial Information with the
directors of Pallinghurst.
In arriving at our conclusion, we have relied upon nancial information prepared by the Directors and other
information from various public, nancial and industry sources.
Whilst our work performed involved an analysis of the historical audited nancial information and other
information provided to us, our limited assurance engagement does not constitute either an audit or review
of any of the underlying nancial information undertaken in accordance with the International Standards on
Auditing or the International Standards on Review Engagements and accordingly, we do not express an audit
or review opinion.
In a limited assurance engagement the evidence-gathering procedures are more limited than for a reasonable
assurance engagement and therefore less assurance are obtained than in a reasonable assurance
engagement. We believe that our evidence obtained is sufcient and appropriate to provide a basis for our
conclusion.
Opinion
Based on our examination of the evidence obtained, nothing has come to our attention that causes us to
believe that in terms of Section 8.17 and 8.30 of the Listings Requirements:
the pro forma nancial information has not been properly compiled on the basis stated,
such basis is inconsistent with the accounting policies of Pallinghurst and,
105
the adjustments are not appropriate for the purposes of the Pro Forma Financial Information as disclosed
pursuant to section 8.30 of the Listings Requirements.
Consent
We consent to the inclusion of this letter and the reference to our opinion in the Circular to be issued by
Pallinghurst in the form and context in which it appears.
Nexia SAB&T
Registered Accountants and Auditors
Per Bashier Adam
Registered Auditor
Registered address:
Highveld Technopark
Centurion
0046
South Africa
106
ANNEXURE IV
THE COMPANYS TRADING HISTORY ON THE JSE
High (cents) Low (cents)
Volume
(Shares)
Value
(Rand)
Quarterly
30/06/2010 540 440 17,802,739 83,042,665
30/09/2010 445 375 11,008,980 46,621,314
31/12/2010 435 403 14,710,505 59,203,605
31/03/2011 470 360 22,920,605 94,905,391
30/06/2011 475 365 12,898,690 53,244,025
30/09/2011 398 300 19,538,118 63,356,335
31/12/2011 335 290 18,314,016 56,615,562
31/03/2012 385 261 24,427,657 73,622,830
Monthly
30/06/2011 425 365 3,411,523 13,342,975
31/07/2011 398 364 2,254,377 8,468,147
31/08/2011 375 300 11,053,760 35,472,580
30/09/2011 370 300 6,229,981 19,415,608
31/10/2011 329 290 4,538,953 13,952,828
30/11/2011 320 299 10,772,442 32,904,647
31/12/2011 335 302 3,002,621 9,758,087
31/01/2012 335 323 4,434,897 14,527,581
29/02/2012 330 261 13,498,871 38,978,945
31/03/2012 385 270 6,493,889 20,116,304
30/04/2012 360 301 3,911,983 13,103,922
31/05/2012 320 272 7,321,490 22,035,847
Daily
20/04/2012 318 315 30,100 95,418
23/04/2012 318 311 28,190 88,459
24/04/2012 315 310 124,235 387,295
25/04/2012 310 308 39,210 121,237
26/04/2012 310 303 106,298 324,050
30/04/2012 305 301 262,321 798,632
02/5/2012 310 303 115,595 356,711
03/5/2012 312 310 51,792 160,963
04/5/2012 319 310 45,538 142,618
07/5/2012 314 310 136,430 423,122
08/5/2012 311 305 446,926 1,383,664
09/5/2012 315 310 13,000 40,900
10/5/2012 319 305 39,027 121,280
11/5/2012 310 305 26,108 79,924
14/5/2012 312 305 202,000 616,240
107
15/5/2012 320 303 1,921,773 5,932,562
16/5/2012 305 300 27,481 82,982
17/5/2012 305 301 17,413 52,622
18/05/2012 305 290 54,450 162,909
21/05/2012 305 300 40,400 122,950
22/05/2012 305 298 11,580 35,143
23/05/2012 300 272 79,794 229,506
24/05/2012 300 285 103,834 301,941
25/05/2012 305 295 3,730,738 11,010,597
28/05/2012 305 297 94,378 286,852
29/05/2012 300 295 83,974 250,639
30/05/2012 314 295 74,259 226,972
31/05/2012 295 295 5,000 14,750
01/6/2012 295 292 7,900 23,200
04/6/2012 295 290 24,487 71,267
108
ANNEXURE V
TABLE OF ENTITLEMENTS
The rounded number of Rights to Shares to which Shareholders are entitled are as follows:
Shares held
Rights Offer
Entitlement
Shares held
Rights Offer
Entitlement
Shares held
Rights Offer
Entitlement
1 1 35 26 69 52
2 2 36 27 70 53
3 2 37 28 71 53
4 3 38 29 72 54
5 4 39 29 73 55
6 5 40 30 74 56
7 5 41 31 75 56
8 6 42 32 76 57
9 7 43 32 77 58
10 8 44 33 78 59
11 8 45 34 79 59
12 9 46 35 80 60
13 10 47 35 81 61
14 11 48 36 82 62
15 11 49 37 83 62
16 12 50 38 84 63
17 13 51 38 85 64
18 14 52 39 86 65
19 14 53 40 87 65
20 15 54 41 88 66
21 16 55 41 89 67
22 17 56 42 90 68
23 17 57 43 91 68
24 18 58 44 92 69
25 19 59 44 93 70
26 20 60 45 94 71
27 20 61 46 95 71
28 21 62 47 96 72
29 22 63 47 97 73
30 23 64 48 98 74
31 23 65 49 99 74
32 24 66 50 100 75
33 25 67 50 1,000 751
34 26 68 51 10,000 7,506
109
ANNEXURE VI
REVISED LISTING PARTICULARS
(Issued in terms of the Listings Requirements)
The Corporate Information section on the inside cover of the Circular and the denitions and interpretations on pages 19 to 27 hereto apply,
mutatis mutandis, to the Revised Listing Particulars.
The Revised Listing Particulars form part of the Circular and is not an invitation to the public to subscribe for securities but are issued in
compliance with the Listings Requirements for the purpose of providing information to the public regarding the implications of the Rights Offer
on the Company and its Shareholders and have been prepared on the assumption that the Rights Offer has been implemented. The circular
incorporates listing particulars and is issued in compliance with the Listings Requirements of the JSE Limited, for the purpose of providing
information to the public with regard to the Company.
As at the Last Practicable Date, based on the above assumption, the authorised ordinary share capital of the Company comprises 999,000,000
ordinary shares with a par value of US$0.00001 each and ten management shares with a par value of US$1.00 each, and the issued ordinary
share capital will comprise 832,946,717 ordinary shares with a par value of US$0.00001 each and two management shares with a par value of
US$1.00 each. The Company does not have treasury shares. Share premium will be stated at an amount of US$396 million.
The Directors, whose names appear in the Corporate Information section on the inside cover of this Circular, collectively and individually,
accept full responsibility for the accuracy of the information given and certify that on the Last Practicable Date, to the best of their knowledge
and belief, there are no facts, the omission of which, would render any statement in the Revised Listing Particulars false or misleading and that
they have made all reasonable enquiries to ascertain such facts and that the Revised Listing Particulars contains all information required by the
Act, Guernsey Law and the Listings Requirements.
The Investment Bank and JSE Sponsor, BSX Sponsor, auditors, independent reporting accountant, legal advisors, and Transfer Secretaries
have consented in writing to act in the capacity stated and to their name being stated in the Revised Listing Particulars and in the case of the
reporting accountants, reference to their reports in the form and context in which they appear and have not withdrawn their consent prior to the
publication of the Revised Listing Particulars.

Investment Bank JSE Sponsor Investment Manager
Legal advisors in South Africa Legal advisors in Guernsey Independent reporting accountant
110
TABLE OF CONTENTS
The denitions and interpretations set out on pages 19 to 27 of this Circular apply mutatis mutandis to this
table of contents.
1. Introduction 111
2. Investment strategy 112
3. Directors of the Company and senior management 115
4. Overview of Investments 121
5. Administration 124
6. Sale arrangements and redemptions 125
7. Corporate governance 129
8. Share capital 135
9. Details of major Shareholders of the Company 137
10. Dividends and other distributions 137
11. Trading history of Shares on the JSE 137
12. Exchange Control Regulations 137
13. Expenses, fees and Investment Managers benets 139
14. Conicts of interest 141
15. Taxation 142
16. Principal risks and uncertainties 144
17. General information 147
111
1. INTRODUCTION
1.1. Introduction
The details of the Rights Offer are set out in the Circular. The purpose of the Revised Listing
Particulars is to inform Shareholders of the effects of the Rights Offer in terms of the Listings
Requirements and accordingly have been prepared on the assumption that the Rights Offer has
been successfully implemented.
1.2. Incorporation and history of the Company
The Company was incorporated on 4 September 2007 as Pallinghurst Resources (Guernsey)
Limited (registration number 47656), in accordance with Guernsey Law. The Company listed on the
BSX soon afterwards on 26 September 2007. On 20 August 2008, Pallinghurst inward listed on the
JSE, with the JSE becoming the Companys primary listing and the BSX listing being retained as a
secondary listing. On 28 May 2009, the Company changed its name from Pallinghurst Resources
(Guernsey) Limited to Pallinghurst Resources Limited. The Company was registered as an external
company in South Africa (registration number2009/012636/10) on 26 June 2009. The Company
has an authorised share capital of 999,000,000 Shares of US$0.00001 each and ten Management
Shares of US$1.00 each. In September 2009, the Company raised an additional ZAR800 million
by way of a renounceable rights offer. The Company operates under Guernsey Law as its principal
legislation. Pallinghursts registered ofce is currently located at 11 New Street, St Peter Port,
Guernsey, GY1 2PF.
The Companyis anauthorisedclosed-endedinvestmentcompany.As an existing closed-ended
investment company, the Company is deemed to have been granted an authorisation declaration
by the Guernsey Financial Services Commission in accordance withSection 8 of the Protection of
Investors (Bailiwick of Guernsey) Law 1987, as amended andRule 6.02 of the Authorised Closed-
ended Investment Schemes Rules 2008 on the date when the Company obtained consent under
the Control of Borrowing (Bailiwick of Guernsey) Ordinance 1959 to 1989.As an authorised closed-
endedinvestmentcompany, the Company is subject to continuing supervision by the Guernsey
Financial Services Commission.
1.3. Nature of business
The Companys main objective is to carry on the business of an investment holding company in
Investments falling within the Investment Scope. To achieve the Investment Objectives as set out
in paragraph 2.1 of the Revised Listing Particulars, the Company has appointed the Investment
Manager to act in the capacity as investment manager to the Company on the terms set out in the
Investment Management Agreement. The Investment Manager is a specialist natural resources
entity that seeks to develop strategic partnerships for the Company with companies and/or other
entities in order to create and unlock value for Shareholders.
112
2. INVESTMENT STRATEGY
2.1. Investment objectives
On the advice of the Investment Manager, the Group, either alone or with certain Pallinghurst Co-
Investors, on a case-by-case basis, utilises its nancial ability, unique expertise and execution skill
in the resources sector to participate in investments falling within the Investment Scope with the
principal objective of providing Shareholders with a high overall rate of return.
2.2. Investment scope
The Group monitors opportunities across the commodities spectrum, with a primary focus
on underperforming assets, businesses that lack direction, are poorly managed, stranded or
distressed. The Investment Manager, on behalf of the Group, seeks to develop strategic platforms
in pursuit of consolidation, vertical integration, turn-around opportunities and expansion projects.
The Group targets investments in businesses that hold mines, smelters, reneries and processing
plants. The preference is for Brownelds Opportunities, although investments in businesses with
attractive development opportunities are also considered.
2.3. Investment policy
The Group invests in Investments falling within the Investment Scope and in the Approved
Investment. An overview of existing investments has been provided in paragraph 4 to the Revised
Listing Particulars. The Group endeavours to hold, whether directly or indirectly, through one or
more special purpose vehicles to ensure the most efcient corporate structure, an initial minimum
20% interest in each Investment Vehicle, subject to the following limitations:
(a) the aggregate investment by the Company in any Investment Vehicle may not exceed the greater
of 30% of the Companys Funds or US$100 million, unless approved by Shareholders by Ordinary
Resolution. Aggregate investments shall for this purpose include any guarantees and undertakings
provided by the Company with respect to an Investment Vehicle but shall exclude any Temporary
Investments; and
(b) Temporary Investments may, when added to the Companys other Investments in an Investment
Vehicle, not exceed the greater of 40% of the Companys Funds or US$150 million. The
Investment Manager will use reasonable endeavours to reduce the aggregate amount invested
in a single Investment Vehicle to the greater of 30% of the Companys Funds or US$100 million
within the 12-month period following the date on which such Investment is concluded, unless
such excess Investment is approved by Shareholders by Ordinary Resolution.
Whilst the Group has the ability to gear its balance sheet, it is intended that each Investment be
ring-fenced and that the funding thereof, if any, will be based on the strength of such Investments
balance sheet and/or cash ow potential on a stand-alone basis, thereby increasing the insolvency
remoteness of each Investment.
2.4. Investment process
The Company has appointed the Investment Manager, under the terms of the Investment Management
Agreement, to provide it with investment advisory and management services in relation to
Investments.
113
The Investment Manager is responsible for identifying potential Investments, making Investment
recommendations and providing advice to the Board regarding Investments or the Realisation or
renancing thereof.
The Board considers the advice and recommendations of the Investment Manager and any other advice
received from additional third party external experts and service providers, to the extent required,
prior to making an Investment or Realisation decision. Once the Directors resolve that the Company
should participate in an Investment or the Realisation or renancing thereof, the Investment Manager
is responsible for negotiating, implementing and executing the transaction within the parameters set
by the Board.
In terms of the Programme, all potential Investments falling within the Investment Scope are offered
to the Company for investment at a price equal to the cost at which such Investments have been
negotiated and concluded.
To the extent the Company wishes to amend its Investment Scope and its Investment Objectives (as
set out in paragraph 2.1 of the Revised Listing Particulars) and/or approve a potential Investment
falling outside the Investment Scope, it will seek prior Shareholder approval by means of an Ordinary
Resolution.
2.5. The Groups relationship with the Pallinghurst Co-Investors
The Group has an afliation with a number of other investors (known collectively as the Pallinghurst
Co-Investors, which also are described as strategic equity partners). Pallinghurst (Cayman) GP
L.P. acts as the investment manager for both the Group and these other investors. The Group
usually makes investments alongside the other Pallinghurst Co-Investors, although it may also
actalone.
The Pallinghurst Co-Investors collectively have the ability to control all of the investments in
the Groups portfolio of investments (the Investment Portfolio); they cooperate to achieve the
strategic objectives recommended by Pallinghurst (Cayman) GP L.P. This enables the Group to
take an active part in the management and strategic direction at each investment; which would not
usually be the case for a company holding interests of less than 50% in each of its investments.
The Pallinghurst Co-Investors typically share the same commercial and strategic objectives and
cooperate effectively although each Pallinghurst Co-Investor retains legal title and inuence over
their individual shareholdings, and is ultimately able to determine its own course of action. The
Group benets from being a Pallinghurst Co-Investor in many ways, including the following:
2.5.1. The Investment Manager is able to access much higher levels of funding than if they were
acting solely on behalf of the Group, meaning that a broader scope of investments can be
contemplated;
2.5.2. This funding scope can make an approach by the Pallinghurst Co-Investors more attractive
or credible to a potential target company or group than a stand-alone approach by the
Group;
2.5.3. The Pallinghurst Co-Investors are able to exercise a greater level of inuence or control over
each investment than if they were acting alone; and
114
2.5.4. The Group is able to diversify by participating in a larger number of investments, as it
usually only partially funds each investment.
The Group also has entitlement to an initial minimum interest of 20% of the collective Pallinghurst
Co-Investor ownership of each investment on acquisition, subject to certain conditions; the other
Pallinghurst Co-Investors have no such similar entitlements.
2.6. Private equity status
The Company is considered by the Directors to be a venture capital/private equity
1
organisation.
The Directors have considered the following key factors in making this determination:
2.6.1. The interests acquired are usually signicant, although not controlling.
2.6.2. The Executive Directors and/or the Investment Manager usually participate in the
management of each investment.
2.6.3. The investments are generally innovative in nature.
2.6.4. The investments typically have dened exit strategies.
As a result of being a venture capital organisation, the Company is able to make certain accounting
policy choices under IFRS. The most signicant of these is the election to account for associate
entities under IAS39, as a nancial instrument at fair value through the income statement, rather
than equity accounting under IAS28. A similar exemption exists in IAS31, and the Company
chooses to use this exemption in the same way.

1
The Directors use the terms private equity and venture capital interchangeably throughout this document. The Directors
acknowledge that the terms may have different nuances to certain shareholders, but these distinctions are not relevant to the
Group.
2.7. Shares owned by Partners of the Investment Manager
The Partners of the Investment Manager acquired approximately 11 million Shares on the Initial
Closing Date (assuming that the 1000-for-1 Share split had already occurred). The Partners of
the Investment Manager also acquired approximately 11 million Shares as part of the Second
Equity Raising, concluded in September 2009. The Partners of the Investment Manager have
undertaken not to cede, pledge, dispose of or otherwise encumber any of these Shares during the
InvestmentTerm.
The Partners of the Investment Manager will collectively invest a further c.US$5 million under the
Rights Offer. The shareholdings of the Partners of the Investment Manager at the Last Practicable
Date, pre and post the impact of the Rights Offer, are set out in paragraph 10 to the Circular.
These shareholdings, and the participation of the Partners of the Investment Manager in the
Rights Offer, will continue to ensure that the interests of Shareholders are aligned with those of the
InvestmentManager.
115
2.8. Currency
The functional currency of the Company is US$. All commitments by, and Distributions to, Shareholders
and all calculations pursuant to the terms of the Revised Listing Particulars are in US$.
2.9. Future prospects
Signicant progress has been made in each of the Companys investments. These investments
continue to promise signicant value uplift through organic growth, synergistic acquisitions and/
or vertical integration opportunities. The Group may also exit some of the investments in the right
circumstances.
The application of the Rights Offer proceeds will further benet the growth and development of
the existing platforms and accelerate the implementation of their investment strategies as set out
in paragraph 4 of the Revised Listing Particulars.
The Group has also targeted new opportunities for using the Rights Offer proceeds. The Directors
believe that these complementary assets represent good investments for shareholders.
3. DIRECTORS OF THE COMPANY AND SENIOR MANAGEMENT
The following table sets out the details of each of the Directors:
Name, nationality and age
Business
Address Ofce
Date of
appointment
Brian Gilbertson (68)
1
British and South African
54 Jermyn Street
London
SW1Y 6LX
United Kingdom
Chairman On incorporation
(4 September 2007)
Arne H. Frandsen (45)
1
Danish
54 Jermyn Street
London
SW1Y 6LX
United Kingdom
Chief Executive On incorporation
(4 September 2007)
Andrew Willis (33)
British and New Zealand
54 Jermyn Street
London
SW1Y 6LX
United Kingdom
Finance Director 25 November 2008
Stuart Platt-Ransom (44)
1,2
11 New Street,
St Peter Port
Guernsey
GY1 2PF
Non-Executive Director On incorporation
(4 September 2007)
Clive Harris (57)
1
British and Cayman Islands
Box 30142 SMB
Grand Cayman
Cayman Islands
Non-Executive Director On incorporation
(4 September 2007)
Martin Tolcher (48)
British
11 New Street
St Peter Port
Guernsey
GY1 2PF
Non-Executive Director 25 November 2008
116
Patricia White (47)
2
British
11 New Street
St Peter Port
Guernsey
GY1 2PF
Non-Executive Director 29 February 2012
Brian OMahoney (41)
2
British
11 New Street
St Peter Port
Guernsey
GY1 2PF
Non-Executive Director 29 February 2012

1
Founding member.

2
Mr OMahoney was appointed as Permanent Alternate to Mr Platt-Ransom and Ms White on 29 February 2012.
The following table sets out, details of each of the Partners of the Investment Manager:
Name, nationality and age Business address
Brian Gilbertson (68)
54 Jermyn Street, London, SW1Y 6LX, United Kingdom
Arne H. Frandsen (45)
Danish
Andrew Willis (33)
British and New Zealand
Priyank Thapliyal (40)
British
Sean Gilbertson (39)
3.1. Experience and qualications of the Directors
3.1.1. Executive Directors
Brian Gilbertson Chairman (BSc (Maths & Physics), BSc (Hons) Physics, MBL
and PMD)
Mr Gilbertson has extensive experience in the global natural resources industry. In his early
career, he was Managing Director of Rustenburg Platinum Mines Limited, which gained
recognition as the worlds foremost producer of platinum in the 1980s. Later, as Executive
Chairman of Gencor Limited, Mr Gilbertson led the restructuring of the South African
mining industry into the post-Apartheid era, transforming Gencor Limited into a focused
minerals and mining group. During this period he held ultimate responsibility for Impala
Platinum Holdings and for Samancor Limited, the worlds largest producer of manganese
and chrome ore and alloys. Important initiatives included the Hillside and Mozal aluminium
projects and the purchase of the international mining assets (Billiton plc) of the Royal Dutch
Shell Group. In 1997, Gencor Limited restructured its non-precious metals interests as
Billiton plc and, with Mr Gilbertson as Executive Chairman, Billiton plc raised US$1.5 billion
in an initial public offering on the LSE, taking the company into the FTSE100. In 2001,
117
Billiton plc merged with BHP Limited to create what is widely regarded as the worlds
premier resources company, BHP Billiton plc. In late 2003, Mr Gilbertson led the mining
group Vedanta Resources plc to the rst primary listing of an Indian company on the
LSE in the second largest Initial Public Offering of the year. He was Chairman of Vedanta
Resources plc until July 2004. In 2004 he initiated the foundation of Incwala Resources
(Proprietary) Limited, a pioneering Black Economic Empowerment Corporation in South
Africa, and was its rst Chairman until March 2006. In 2004, Mr Gilbertson joined Sibirsko-
Uralskaya Aluminum Company (SUAL), an aluminium producer in Russia and led the
company into the US$30 billion merger with RUSAL and the alumina assets of Glencore
International A.G., creating the largest aluminium company in the world. Mr Gilbertson
established Pallinghurst Advisors LLP and the Investment Manager during 2006 and 2007,
respectively, and is the Chairman of and a partner in both entities. Mr Gilbertson is a British
and South African citizen.
Arne H. Frandsen Chief Executive (BA, LLB, Master in Law from University of
Copenhagen, Postgraduate Research and Studies in Japan and South Africa)
Following completion of his degrees, Mr Frandsen undertook extensive legal research in
Europe, Japan and South Africa, leading to the publishing of a number of articles as well
as a book. Once his research was successfully completed, Mr Frandsen moved to London
to start a professional career as an Investment Banker. Mr Frandsen has over ten years
of investment banking experience with Goldman Sachs and JPMorganChase, providing
strategic advice and structuring mergers and acquisitions as well as corporate nance
transactions for clients in 30 different countries, raising in excess of US$20 billion of capital.
From 2004, Mr Frandsen acted as Client Executive for JPMorganChase in South Africa,
followed by a year as Chief Executive Ofcer of Incwala Resources (Proprietary) Limited, one
of South Africas leading Black Economic Empowerment mining companies. Mr Frandsen
joined Pallinghurst Advisors LLP in 2006 and is a partner of the limited liability partnership
and the Investment Manager. In addition, Mr Frandsen is an executive director of many of
the companies in which the Company has invested. Mr Frandsen is a Danishcitizen.
Andrew Willis Finance Director (MBA (INSEAD), ACCA Afliate Accountant,
ACIS, BA/BCom)
Mr Willis has over ten years experience in international nance, structuring and private
equity. He started his professional career as an accountant in New Zealand and after
moving to Europe studied at INSEAD and was awarded an MBA.
Before joining Pallinghurst Advisors LLP in 2006, he spent three years with pan-European
private equity investment manager Candover Investments plc. Mr Willis is the Finance
Director of a number of resource related companies advised by Pallinghurst Advisors
LLP. Mr Willis is a partner of the limited liability partnership and the Investment Manager.
MrWillis is a British and New Zealand citizen.
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3.1.2. Independent Non-Executive Directors
Stuart Platt-Ransom Lead Independent Non-Executive Director (Chartered
FCSI, CMgr, FInstLM, MIoD)
Mr Platt-Ransom is the Managing Director of the Legis Company, a role to which he was
appointed in July 2007. Mr Platt-Ransom spent the previous 12 years with State Street
Corp in its South Africa, Luxembourg, Dublin, London and Guernsey ofces in various
management, operational, business development and relationship management roles.
Prior to that, he worked for GAM in the Isle of Man. Most recently, Mr Platt-Ransom was
the Managing Director of State Streets business in Guernsey and was responsible for its
business in Africa from 2002 to 2006.
Mr Platt-Ransom serves as a director on the Legis Group companies and in addition holds
a number of external directorships on listed private equity and property company structures
as well as a Guernsey based investment management company. Mr Platt-Ransom is a
Chartered Fellow of the Chartered Institute for Securities & Investment, a Chartered Manager
& Fellow of the Chartered Management Institute, a Fellow of the Institute of Leadership &
Management and a Fellow of the Institute of Directors. Mr Platt-Ransom is a British and
South African citizen and is a resident of Guernsey.
Clive Harris (BSc (Econ), ACA)
Mr Harris is a British and Cayman Islands citizen, and is resident in the Cayman Islands.
He is a Chartered Accountant (England and Wales), a member of the Society of Trust
and Estate Practitioners, and of the Institute of Directors (UK). He sits on the executive
committee of the Cayman Islands Directors Association. Mr Harris graduated in 1976 from
The University of Wales with a BSc (Econ) with combined honours in Accountancy and Law.
In 1979 he qualied as a Chartered Accountant with the City of London ofce of Deloitte
Haskins & Sells. He has resided in the Cayman Islands since December 1979 where he
was employed for some 20 years as a director and Managing Director of International
Management Services Limited, and was a partner in its associated accounting rm. In
2001 Mr Harris took up a consulting position with the Bank of Bermuda (Cayman) Limited
and was subsequently appointed Managing Director and head of Global Fund Services
during a time of reorganisation, leaving the Bank on its completion in 2003. Mr Harris
has extensive experience in the elds of company management, investment services, and
the governance and administration of Hedge Funds and Special Purpose Vehicles, and
since 2004 has been self-employed, serving as an independent non-executive director to
a number of Cayman Island funds, managers and other regulated entities.
Martin Tolcher (Chartered FCSI)
Mr Tolcher has been involved within the fund administration industry in Guernsey for nearly
25 years. He has worked at senior levels for three Guernsey subsidiaries of Bermudan and
Canadian international banks, gaining considerable experience in a wide variety of offshore
fund and private equity structures. He joined Legis Fund Services Limited in 2005 and was
appointed Managing Director at the beginning of 2007, a position he held until the end of
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2010. He remained a director of that company until September 2011. Mr Tolcher holds non-
executive directorships within other Guernsey fund structures, including a number listed on
the London and Channel Islands Stock Exchanges. Mr Tolcher is a Chartered Fellow of the
Chartered Institute for Securities & Investment. He is British and resident in Guernsey.
Patricia White (BA, CA, Chartered FCSI)
Ms White is Managing Director of Legis Fund Services Limited and has over 20 years
experience in the offshore nance industry. Qualifying as a member of the Institute of
Chartered Accountants of Scotland in 1988, her career in the offshore nance industry
began in Guernsey with KPMG. Subsequently she was appointed as Assistant Director
of Finance with Leopold Joseph before entering the funds industry with CIBC, Cayman
Islands as a Mutual Funds Account Manager. Following her return to Guernsey she joined
Buttereld Fund Services Limited where she had operational responsibility for a variety of
projects including implementation of their fund administration system.
Ms White joined Legis as former Managing Director of Anson Fund Managers Limited
during which time she was also director of its group companies in addition to holding a
number of external directorships. Ms White is also a Chartered Fellow of the Chartered
Institute for Securities & Investment.
Brian OMahoney (MBA, ACA)
Mr OMahoney is the Group Finance Director at Legis having joined in January 2011,
bringing with him 16 years of experience in the nance industry.
Having moved to Guernsey as a newly qualied accountant in 1994 Brian has since worked
in auditing, private banking and wealth management. During this time he has held a number
of senior roles with responsibilities in both the Channel Islands and London including, most
recently, that of Chief Financial Ofcer for Kleinwort Bensons Channel Islands operations.
Mr OMahoney is a Fellow of the Institute of Chartered Accountants in Ireland and holds an
MBA from the Manchester Business School.
DIRECTORS REMUNERATION
The Non-Executive Directors, Mr Platt-Ransom, Mr Harris and Mr Tolcher, each received
a Directors fee of US$25,000 for 2011 (2010: US$25,000 per Non-Executive Director). Mr
Harris also receives US$5,000 as a Director of Pallinghurst Consolidated (Cayman) Limited,
a subsidiary. The Directors fees for the year ended 31 December 2011 was therefore
US$80,000 (2010: US$77,500).
On 29 February 2012, Ms White was appointed as a Non-Executive Director and will also
receive a Directors fee of US$25,000 per annum. Ms White did not receive a fee for her
role as a Permanent Alternate. Mr OMahoney was appointed as a Permanent Alternate to
Mr Platt-Ransom and Ms White on 29 February 2012. Mr OMahoney does not receive a
fee for his role as a Permanent Alternate. The Executive Directors have waived the receipt
of any Directors fees from the Company. No other fees or benets in kind were paid to or
accrued by any Director of the Company.
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Additionally, certain Directors fees are paid from Jupiter and Platmin to Company
subsidiaries or associates. Mr Gilbertson and Mr Frandsen do not receive these Directors
fees in a personal capacity. The fees are instead paid into the relevant Company entities that
directly hold the relevant interests. The following amounts were received during theyear:
31 December
2011
US$
31 December
2010
US$
Brian Gilbertson
Jupiter: Non-Executive Chairman 31,785 34,076
Platmin: Non-Executive Chairman 105,960 105,960
137,745 140,036
Arne H. Frandsen
Platmin: Director 41,080 41,080
41,080 41,080
In addition to the above, certain amounts are payable by the Company to the Investment
Manager, as set out in paragraphs 13.3.1 and 13.3.2 of the Revised Listing Particulars.
MrGilbertson, Mr Frandsen and Mr Willis are all Partners of the Investment Manager.
Directors service contracts
There are no service contracts or letters of appointment in respect of the Directors.
3.1.3. Directors emoluments
There are no other Directors fees or benets in kind receivable by the Directors from the
Company other than as set out above. The Partners of the Investment Manager do not
receive any emoluments or fees from the Company. The Directors remuneration will not
be varied as a consequence of the Rights Offer.
The Investment Manager or its associated entity receives the Annual Investment Managers
Benet and the Performance Incentive as set out in paragraphs 13.3.1 and 13.3.2 of the
Revised Listing Particulars.
3.1.4. Directors Loans
No loans have been made or security furnished by the Company to or for the benet of any
Director or manager or associate of any Director or manager of the Company.
3.2. Directors interests in Shares
The interests of the Directors and Partners of the Investment Manager in Shares at the Last
Practicable Date are set out in paragraph 10.1 to the Circular.
3.3. Directors interests in transactions
Directors interests in transactions since incorporation of the Company are set out in paragraph
10.2 of the Circular.
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4. OVERVIEW OF INVESTMENTS
In the period since incorporation, the Group has developed four unique Investment Platforms as set out
below.
4.1. PGMs
PGMs are essential to a wide range of industries. An estimated 20% of all consumer products
either contain PGMs or require them in their production, making PGMs both unique and essential
to industrialised economies. However, PGM resources are rare and occur predominantly in South
Africa; according to the DMR, 88% of the worlds platinum reserves are located in South Africa.
The diverse and solid demand dynamics, combined with on-going supply pressures and high
barriers to entry, continue to make the outlook for the PGM industry very attractive.
For the past four years, Pallinghurst has been executing its strategy of acquiring and consolidating
three shallow, contiguous properties on the Western Limb of the Bushveld Complex of South Africa,
to create a low cost PGM producer of industry signicance with a large and shallow resource base.
During March 2011, a suite of transactions was announced that provides the platform for the
consolidation of PPM, Sedibelo and Magazynskraal (the Consolidation) allowing the resource
to be optimally mined. The Pallinghurst Co-Investors would acquire a 49.9% stake in Sedibelo
from the Bakgatla and agreed to increase their aggregate interest in Magazynskraal to 40% (an
additional 6.6%) as well as strategic water and electricity rights necessary for the operation of the
Consolidation properties.
Completion of the suite of transactions was subject to various conditions, including approval for
the acquisition by the DMR. The suite of transactions was completed in May 2012 subsequent to
this receipt. In addition, Platmin has received the DMR approvals necessary for the completion of
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its acquisition of the Western area of the Sedibelo property (Sedibelo West) for US$75 million.
During March 2012, the IDC agreed to invest, upon the consolidation of the PGM Properties,
ZAR3.24 billion, in return for 16.2% of the consolidated entity. The IDC investment is expected
to be completed during 2012. The Directors believe that the completion of the IDCs investment
into the consolidated entity may have a positive effect on the Companys NAV, which it is not
yet possible to quantify. Completion of the Consolidation and the IDC investment are subject to
various conditions.
These transactions represent an important development in the PGM strategy. The Consolidation
of the three PGM properties is now almost complete, and the investment by the IDC is imminent.
Subsequent to this, the AQ strategy will be close to completion and no further funds have been
allocated to the AQ Investment Platform.
4.2. Steel Making Materials
Despite the turbulence experienced in the economies of many developed nations, emerging
countries such as China have sustained average GDP growth rates in excess of 10% per annum over
the past decade. Maintaining high growth rates will require signicant expansion of infrastructure,
for which large supplies of steel are imperative. Global steel production has increased to meet
this rising demand, from 850 million tonnes in 2001 to 1.5 billion tonnes during 2011. Increased
demand for steel resulting from continued growth in the emerging markets, and sustained demand
from the mature economies, is forecast to support demand for steelmaking input raw materials.
The Companys Steel Making Materials platform has also been in a capital intensive phase,
building the Tshipi Borwa manganese mine and this is expected to continue as Jupiter progresses
its feasibility studies on Mount Mason and Mount Ida. The Steel Making Materials strategy is to
develop a platform to supply the key raw materials required for the production of steel, in particular
manganese, iron ore and coking coal.
In 2010, Jupiter acquired the Pallinghurst Co-Investors 49.9% stake in Tshipi, thereby consolidating
the Groups two Steel Making Materials investments.
During 2011, Jupiter successfully raised AUD150 million and approved its portion of the funding
required to build South Africas newest open pit manganese mine at Tshipi Borwa. With construction
well underway, Tshipi Borwa is on track to commence production by the end of 2012, with a
sizeable resource capable of sustaining more than 60 years of production.
The Investment Manager is investigating the acquisition of a coal asset which would be the last
remaining commodity to ll the suite of Steel Making Materials commodities. The Group is likely
to use US$25-US$35 million of the Rights Issue proceeds to funds its pro rata entitlement to
thisacquisition.
4.3. Gemelds
During 2007, Pallinghurst identied the coloured gemstone industry as a unique investment
opportunity. Demand for coloured gemstones by the jewellery and fashion sectors was increasing
despite a lack of large, reliable suppliers able to consistently deliver adequate quantities of
gemstones. Pallinghurst perceived an opportunity to unlock signicant value in an overlooked,
123
underdeveloped and fragmented sector. It believed that demand could be enhanced and
protability improved by bringing substantial capital, scale and professionalism to the industry.
In 2007, the Pallinghurst Co-Investors acquired a controlling interest in the Kagem emerald mine
and in June 2008, Kagem was vended into AIM-listed Gemelds plc via a reverse takeover in
return for approximately 55% of the enlarged group. Various corporate actions followed, resulting
in the Pallinghurst Co-Investors ownership of Gemelds increasing to 63.3%, which includes the
Groups 33.1% stake.
Since acquisition, signicant focus has been on operational efciency, in particular on improving
Kagems infrastructure. New mining equipment has been purchased and the processing plant
upgraded. Additional personnel hires and implementation of better management systems,
including monitoring and control procedures, have signicantly improved security around the mine
site and the washing plant. These measures have considerably increased mining capabilities,
resulting in signicantly higher gemstone production than that achieved historically.
In March 2012, following the year end, Gemelds held a further higher quality emerald auction in
Singapore. A total of 0.69 million carats were sold for US$26.2 million, representing an average
price of US$38.25 per carat. Gemelds has now completed nine auctions over the past three years,
generating total revenues of US$125 million, a signicant endorsement of Gemelds formalised
and consistent method of selling coloured gemstones by auction.
In line with its objective to become the worlds leading coloured gemstone producer, Gemelds
announced in June 2011 the acquisition of 75% of a potentially world class ruby deposit in the
Montepuez district of the Cabo Delgado province in northern Mozambique. The deposit comprises
mining and exploration rights covering approximately 34,000 hectares and is believed to be one of
the largest ruby concessions in private hands in the world. While the quality of the rubies has been
likened to that produced in Burma and at Winza in Tanzania, mining has previously taken place
only on a relatively small and informal scale. Following the satisfaction of all outstanding conditions
for the acquisition in February 2012, the operations are now being expanded considerably, with
the rst production expected before the end of 2012.
The record breaking auctions highlight the robust demand for Gemelds ethically sourced
emeralds, despite the uncertain global economic environment. Prices are expected to remain
strong and will benet from any improvement in the global economic outlook. Increased production
is expected as the benets of the capital investment to increase the mineable Reaction Zone areas
are realised at Kagem and the rst rubies are realised from the new operation in Mozambique.
Gemelds is now a market leader in the emerald sector and is well advanced in its strategy to
become the worlds leading coloured gemstone producer. It is about to apply its successful
business model to rubies, having recently acquired the world class deposit in Mozambique.
Gemelds delivered record breaking auction results during 2011, and audited net prot after tax
for the six months to 31 December 2011 was US$22 million, higher than the record prots of the
prior full year. Gemelds is unlikely to require any further capital expenditure and has not been
allocated any funds in the Rights Offer. It is possible that Gemelds may begin to return funds to
its shareholders, including the Group, in the next few years.
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4.4. Faberg Limited
Faberg has made signicant progress since the Company made its rst investment in 2007.
Despite the short period since Fabergs relaunch in September 2009, it has already achieved
a number of key milestones. Faberg continued its introduction of high quality collections with
a number of critically acclaimed launches during 2011, with more planned for the second half of
2012. Fabergs retail presence has expanded to include Geneva, London, New York and Hong
Kong. Faberg has been successfully repositioned in the upper echelon of the luxury sector and
now has an expanded product offering and retail footprint.
Faberg is seeking a further capital injection which will enable further development of its value-
creating strategy. The Directors have allocated US$25-30 million to participate in Fabergs capital
raising, which may take the form of debt or equity, to protect its investment and support the next
phase of development of its strategic plan.
4.5. Copper
The Investment Manager has also identied a new copper investment opportunity in southern
Africa, with both producing assets and others close to production. The total investment by the
Pallinghurst Co-Investors would be signicant; the Groups share in the cost of the investment
acquisition is likely to be between US$40-US$50 million.
5. ADMINISTRATION
5.1. Administrator
The Administrator has been appointed by the Directors to manage the day-to-day operations and
administration of the Company and to perform general administrative tasks, including but not limited
to dealing with all correspondence from regulatory bodies, exchanges, Shareholders and service
providers, processing Share subscriptions, redemptions and withdrawals, disbursing payments,
maintaining the Companys accounting records, liaising with the Investment Manager, liaising with
the Auditors and the Independent Valuer, acting as Company secretary and attending to any other
matters incidental thereto and usually performed in the administration of a company.
5.2. Valuation of Investments
Every six months, the Directors estimate the fair value of each investment in accordance with the
Valuation Guidelines for inclusion in the Groups external nancial reporting.
The Company has, in addition, engaged an Independent Valuer who provides an opinion
each reporting period that the Directors investment valuations have been prepared using a
methodology and approach which is reasonable and consistent with the concept of fair value, and
is in accordance with the Valuation Guidelines.
The Directors valuations are incorporated into the Companys interim and annual reports which
are communicated to Shareholders via SENS.
125
6. SALE ARRANGEMENTS AND REDEMPTIONS
6.1. Sale arrangements and redemptions
6.1.1. Sale arrangements
Notwithstanding the fact that the Companys Shares are listed on the BSX and the JSE,
pursuant to the Investment Scope and Investment Objectives (as set out in paragraph 2.1
of the Revised Listing Particulars) of the Company and the potential long-term nature of the
Investments, the secondary market for Shares may be limited and relatively illiquid over the
Investment Term. To facilitate increased liquidity and tradability in the Shares, the following
mechanisms are available to Shareholders:
6.1.2. Sale on the BSX
(a) Willing buyer, willing seller transactions:
Various brokers are able to provide broking, execution and clearing services for secondary
market trades between Shareholders and prospective Shareholders on the BSX.
Secondary market trades are effected through a matched sale transaction on condition
that there is a willing buyer and willing seller who have indicated the price at which they are
willing to acquire and dispose of Shares.
All Shareholders are advised to review the pricing of the Shares on the JSE prior to
executing a trade on either the JSE or BSX.
(b) Purchases by the Trust:
The Trust is notied when a willing seller of Shares is available. The Trust may be willing,
but is not obliged, to acquire Shares during the Investment Term. The Company pays
all costs associated with the Trust. Prior to the Redemption Date, no sale to the Trust
of less than 10,000 Shares per transaction (post the 1,000-for-1 share split) or any
disposal as a result of which a Shareholder will hold less than 10,000 Shares in the
Company will be allowed, except where a Shareholder disposes of all his Shares.
6.1.3. Sale on the JSE
(a) Willing buyer, willing seller transactions:
The JSE will facilitate secondary market trades between Shareholders and prospective
Shareholders during the Investment Term. Secondary market trades will be effected
through a matched sale transaction on the condition that there is a willing buyer
and willing seller who have indicated the price at which they are willing to acquire
and dispose of Shares. This process will be facilitated by the relevant Shareholders
appointed broker.
6.1.4. Pricing
All Shareholders are advised to review the pricing of the shares on the JSE prior to executing
a trade on either the JSE or BSX.
126
6.1.5. Transfer between Registers
Shares are fully fungible and may be transferred between Registers, subject to the requisite
Exchange Control Regulations.
6.2. Redemptions
6.2.1. Redemption prior to the Redemption Date
Prior to the Redemption Date there is no entitlement in favour of Shareholders to have their
Shares redeemed by the Company, but the Company shall be entitled to redeem Shares at
its election at any time prior to the Redemption Date, as set out below. Redemptions are
wholly at the discretion of the Directors and will comply with and be subject to the Listings
Requirements. However, subject to their overall discretion, the Directors have determined
to operate the following policy in respect of redemptions prior to the Redemption Date,
namely that redemptions prior to the Redemption Date will be considered by the Directorsif:
(a) redemptions are effected pro rata to all Shareholders, for part of their Shares, at the Fair
Value per Share less all costs associated with and incidental to the redemption; and
(b) there is sufcient cash or gearing available to fund such redemptions; and
(c) the number of Shares to be redeemed shall be proportionate to the value that the
Realisation proceeds received by the Company (less any Disposal Costs and
Performance Incentive, if applicable) represents to the NAV of the Company as a whole
prior to such redemption.
The costs associated with and incidental to the redemption will be estimated by an independent
auditor or will be based on the actual costs billed to ensure that there is no surplus remaining
in the Company after the redemption.
For the avoidance of doubt, the nal redemption of unredeemed Shares will not take place
until all Investments of the Company have been liquidated into cash and/or Distributed and
all remaining Aggregate Proceeds have been Distributed to Shareholders.
In addition, no redemption prior to the Redemption Date will be considered by the Directors,
where:
(d) such redemption would or might leave the Company with insufcient funds to meet any
future contemplated obligations or contingencies; or
(e) such redemption would render the Company insolvent; or
(f) such redemption may in the opinion of the Directors be prejudicial to the Company or
other Shareholders.
Redemption proceeds are paid to Shareholders in accordance with the Listings
Requirements and the rules of the BSX.
127
6.2.2. Redemption on the Redemption Date
On or prior to the tenth anniversary of the Initial Closing Date, the Directors shall convene
an extraordinary general meeting at which time an Ordinary Resolution will be proposed
to either (i) if recommended by the Board, extend the Termination Date by one year or (ii)
voluntarily wind up the Company and redeem all the Shares on the Redemption Date, at
the Fair Value per Share less any costs associated with the liquidation, if any.
(a) If on, or prior to, the tenth anniversary of the Initial Closing Date an Ordinary Resolution
in terms of (a)(i) above was proposed and approved, then on, or prior to, the eleventh
anniversary of the Initial Closing Date the Directors shall convene an extraordinary
general meeting and propose an Ordinary Resolution on terms similar to (a)(i) and (a)
(ii) above but references to the tenth anniversary of the Initial Closing Date shall be
replaced by reference to the eleventh anniversary of the Initial Closing Date.
(b) If on, or prior to, the eleventh anniversary of the Initial Closing Date an Ordinary Resolution
in terms of (a)(i) above was proposed and approved, then on, or prior to, the twelfth
anniversary of the Initial Closing Date, the Directors shall convene an extraordinary
general meeting at which time an Ordinary Resolution will be proposed to voluntarily
wind up the Company, except if a Special Resolution (that will be proposed at the same
meeting) to extend the life of the Company indenitely is proposed and approved.
In the event that either the Ordinary Resolution or the Special Resolution referred to in
paragraph (a) or (b) or (c) above are not approved by the requisite majority of Shareholders,
the Directors shall apply to the Royal Court of Guernsey for an order to place the Company
into compulsory liquidation and that a liquidator be appointed. A liquidator appointed in
these circumstances would wind-up and liquidate the affairs of the Company.
In the event of a Special Resolution to extend the life of the Company indenitely being
proposed and approved by the Shareholders in an extraordinary general meeting, the
Directors will endeavour, as soon as practicable thereafter, to provide an exit mechanism
for those Shareholders wishing to dispose of their Shares at that date, in terms of which
Shareholders will be provided with an opportunity to dispose of Shares to the Company,
the Trust, existing Shareholders or prospective Shareholders at the Fair Value per Share (or
such other price as may be agreed between the relevant parties).
The Company will redeem all of the Shares on the Redemption Date. Should all the
Investments not have been liquidated, then the redemption may be deferred until all the
Companys Investments have been liquidated. The liquidations shall be effected as soon as
reasonably possible. The redemption price shall be equal to the Fair Value per Share less
any costs associated with the liquidation, if any, at the Redemption Date.
No settlement and registration fees will be payable in respect of redemptions effected on
the Redemption Date. The Administrator will pay the redemption proceeds to the relevant
Shareholder in accordance with the Listings Requirements and the rules of the BSX. In
the event that invalid banking details of a Shareholder are made available to the Company,
the redemption proceeds will be transferred by the Administrator to a trust, which trust will
128
hold such redemption proceeds until the earlier of the redemption proceeds being claimed
by the relevant Shareholder or a period of three years. If the redemption proceeds are not
claimed prior to the expiry of the aforementioned period such redemption proceeds will be
paid to a charitable institution. Such Shareholder will pay an administration charge for this
service of 0.1% per annum of the redemption proceeds payable to it.
The costs associated with and incidental to the redemption will be estimated by an
independent auditor or will be based on the actual costs billed to ensure that there is no
surplus remaining in the Company after the redemption.
6.2.3. Distributions in specie
Should:
(a) the Directors deem it to be in the best interests of Shareholders; or
(b) the Company be unable to liquidate all the Investments by the Redemption Date,
then the Company will on the Redemption Date, or as soon as possible thereafter, Distribute
such Investments to the Shareholders as a Distribution in specie.
When a Distribution in specie is made, the Administrator shall provide Shareholders with
written notice, specifying:
(c) the date of the proposed Distribution;
(d) the assets to be Distributed (including, where appropriate, the class and number of
securities); and
(e) the basis on which the Distribution will be made.
If there is a reasonable likelihood that the Shareholder is prohibited by applicable law
or regulation from directly holding any security to be Distributed or in any case in which
applicable law or regulations prohibit the issuance or sale to such Shareholder of the
securities which would otherwise be Distributed to such Shareholder, then the Administrator
shall use reasonable endeavours to sell the securities proposed to be Distributed in specie
to a third party, with the proceeds thereof being Distributed to the relevant Shareholder,
provided that the costs of such sale and any losses or gains in respect thereof shall be for
the account of such Shareholder.
Distributions in specie of securities of any class shall be made on the same basis as
Distributions of cash, such that any Shareholder in receipt of the Distributions shall
receive the relevant proportionate amount of the total securities of such class available
for Distribution or (if such method of Distribution is for any reason impracticable) such that
each Shareholder shall receive as nearly as possible the relevant proportionate amount
of the total securities of such class available for Distribution together with a balancing
payment in cash in the case of any Shareholder who shall not receive the full proportionate
amount of securities to which he would otherwise be entitled.
The value attributable to any Investment Distributed in specie pursuant to this paragraph
shallbe:
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(f) where the Investment is Distributed on the same day that it achieves a listing, the listing
price;
(g) where the Investment already comprises listed securities, the average of the bid and offer
prices of the listed securities for the ve trading days preceding the Distribution and the
ve trading days following the Distribution; and
(h) where the Investment is unlisted, the value as determined by the Directors.
6.3. Financial information
To assist Shareholders and prospective Shareholders in acquiring and disposing of Shares on the
BSX and evaluating the potential returns to be received in respect of their investment, the Directors
estimate the Fair Value per Share on a six-monthly basis.
7. CORPORATE GOVERNANCE
7.1. Introduction
The Board is the focal point of the Groups corporate governance and is ultimately accountable
and responsible for the key processes and the performance and affairs of the Group and the
Company.
The Company is a Guernsey authorised collective investment scheme and therefore complies with
the Finance Sector Code of Corporate Governance issued by the Guernsey Financial Services
Commission dated September 2011, which came into force on 1 January 2012.
The Companys primary listing is on the JSE, and the Company therefore complies with the King
corporate governance code, in line with all JSE-listed companies. The 2002 King Committee
Report on Corporate Governance (King II) was replaced in March 2010 by the King Report on
Governance for South Africa (King III), which was issued in September 2009.
King III follows an apply or explain approach meaning that in situations where a company does
not apply the specic principles or recommendations of King III, this should be fully explained.
Where the Group does not fully comply with King III, an explanation has been provided below.
7.2. Board responsibilities
The Boards responsibilities include providing strategic direction, evaluating potential investments
and divestments, and overseeing the Groups investment performance. The Board is also
responsible for determining policies and processes which seek to ensure the integrity of the Groups
risk management and internal controls, implementing and maintaining the Groups communication
strategy and for ensuring the integrity and effectiveness of the Groups governance processes.
7.3. Chairman and Board composition
During 2011, the Board comprised three Executive Directors, Mr Gilbertson (Chairman), MrFrandsen
(Chief Executive), and Mr Willis (Finance Director), and three Non-Executive Directors, Mr Harris,
Mr Platt-Ransom, and Mr Tolcher.
130
On 29 February 2012, the following changes were approved by the Board:
Ms White, who previously acted as Permanent Alternate to Mr Platt-Ransom and Mr Tolcher,
was appointed as a Director;
Ms White resigned as a Permanent Alternate to Mr Platt-Ransom and Mr Tolcher; and
Mr OMahoney was appointed as a Permanent Alternate to Mr Platt-Ransom and Ms White.
King III recommends that a Board should comprise a balance of Executive and Non-Executive
Directors, with a majority of Non-Executive Directors. The Directors believe that the Boards
composition was appropriate historically, given the Groups size and its nature as an investment
holding company. The new appointments give the Board a broader range of representation and
experience.
All the Non-Executive Directors are considered to be independent in the context of King III.
King III recommends that the Board should be led by an independent Non-Executive Chairman
who should not be the CEO of the Company. The Chairman is an Executive Director, meaning the
Companys practice does not comply with King III. However, the rest of the Board believe that
the Chairmans wealth of knowledge and experience in the mining industry mean that he is best
placed to provide overall leadership to the Board. Furthermore, the Directors believe that it would
not be appropriate for the Company to be led by a Non-Executive Chairman, given the Companys
nature as an investment holding company.
King III recommends that companies appoint a Lead Independent Non-Executive Director (LID).
On 29 February 2012, the Directors resolved to appoint Mr Platt-Ransom as the rst LID, effective
immediately. The LIDs main responsibilities are to chair any meeting in which the Chairman has a
conict of interest, and to give stakeholders an additional point of contact.
7.4. Appointment of new directors
The Board collectively consider new Board appointments as and when the need arises. Due to
the Groups size, there is no separate nomination committee. When appointing a new Director, the
Board ensures that the individual would be able to devote enough time to the Groups affairs, has
an appropriate level of skills and experience, and that the Boards collective skills and experience
would remain appropriate.
7.5. Rotation of Directors
The Articles specify that one-third of the Directors shall retire from ofce at each AGM, by rotation.
In addition to these retiring Directors, any Director appointed since the previous AGM also retires
from their ofce. However, a retiring Director can be re-elected at the same AGM, and if re-elected,
is deemed to have not vacated their ofce.
7.6. Board meetings
A minimum of four Board meetings are usually held each year, to consider strategic and nancial
issues and the Groups performance and investment valuations. Additional Board meetings are
convened on an ad hoc basis, if necessary, to deal with issues promptly.
131
Directors use their best endeavours to be present at Board meetings and participate fully, frankly
and constructively.
Matters are decided at Board meetings by a majority of votes. In case of an equality of votes, the
chairperson of the meeting shall have a second, casting vote. This ensures that no one individual
has unfettered powers of decision making.
Four Board meetings were held during 2011. All decisions taken during 2011 were unanimous.
7.7. Role of Independent Valuer
The Directors have estimated the fair value of the individual investments. The Company has, in
addition, engaged Independent Valuer who has provided an opinion that the valuations of each
investment as determined by the Directors have been prepared using a methodology and approach
which is reasonable and consistent with the concept of fair value, and is in accordance with the
IPEVC Valuation Guidelines.
7.8. Board committees
Audit and Remuneration Committees have been established to assist the Board in discharging its
responsibilities. The members of these committees are all also Directors of the Company.
7.9. Audit Committee
The Audit Committee consists of Mr Platt-Ransom (Chairman), Mr Harris and Mr Tolcher.
The Executive Directors and the audit partner may be invited to attend Audit Committee meetings.
The Audit Committee met twice during 2011. The audit partner has direct access to all Audit
Committee members throughout the year.
The Audit Committees terms of reference include the following duties:
7.9.1. Financial Reporting
The Audit Committee monitors the integrity and accuracy of the Groups nancial reporting,
and focuses on:
The valuation of the Investment Portfolio;
Ensuring that the Groups nancial reporting complies with IFRS;
New and amended accounting standards and changes to the Groups accounting policies;
Reviewing the Groups cash position and going concern status;
Reviewing the calculation of the Investment Managers Benet;
Reviewing the calculation of the Performance Incentive accrual;
Any signicant adjustments resulting from the audit;
Any other signicant areas of judgement; and
The role of the Finance Director.
132
It is the view of the Audit Committee that Mr Willis continues to possess the appropriate
expertise and experience to meet the responsibilities of his position as Finance Director.
7.9.2. The Auditor and the Independent Valuer
The Audit Committee considers;
The appointment, reappointment, qualication, independence, scope and effectiveness
of the auditor;
The scope, results and cost effectiveness of the audit and the independence and
objectivity of the auditor;
The auditors letter of engagement;
The auditors management letter and any response from the Company;
Whether to engage the auditor for any non-audit services; and
The scope, results and cost effectiveness of the Independent Valuer.
The Directors are of the opinion that the auditor has observed a high level of business and
professional ethics during the year, and that their independence has not been impaired in
any way.
7.9.3. Listing, compliance and legal regulations
The Audit Committee monitors the Groups compliance with the JSE Listing Requirements
and oversees any communications with the JSE.
The Audit Committee also monitors the Groups adherence to the recommendations of King
III, as far as they are appropriate. Where not appropriate, the Audit Committee ensures that
appropriate disclosure is included to explain the non-compliance in the Groups nancial
reporting.
The Audit Committee also monitors the Groups compliance with the BSX Regulations,
Guernsey Company Law and any other relevant legal requirements or regulations.
7.9.4. Internal controls and risk management
Review of the quality of the Groups external reporting and communication with
stakeholders;
Review the effectiveness, quality, integrity and reliability of the Groups risk management
processes and internal controls; and
To assess areas dependent on IT or adequate internal controls.
7.10. Remuneration Committee
The Remuneration Committee members are Mr Gilbertson, Mr Frandsen and Mr Willis. The
Remuneration Committee meets once a year and is responsible for determining the fees for the
Non-Executive Directors. The committee members have agreed not to receive any fees for their
services as Executive Directors, therefore the decisions made by the members are considered to
be free from conict and thus independent.
133
Directors are each entitled to receive fees for their services as determined by the Remuneration
Committee.
In accordance with the Companys Articles, this fee is currently limited to US$40,000 per Director
per annum. The Non-Executive Directors have each earned a fee of US$25,000 per annum since
1 January 2010.
King III recommends that the Remuneration Committee should consist of Non-Executive Directors,
of whom the majority should be independent. However, the Directors have resolved that it is
appropriate for the Remuneration Committee to consist of the Companys Executive Directors,
as the role of the Remuneration Committee is solely to determine the remuneration of the Non-
Executive Directors. The Executive Directors are not remunerated for their role as Directors.
One meeting of the Remuneration Committee was convened during 2011.
7.11. Risk management
The Directors are responsible for the Groups system of internal controls, which is designed to
provide reasonable assurance against material misstatement and loss. The Groups system of
internal controls is designed to provide assurance on the maintenance of proper accounting
records and the completeness and accuracy of nancial information used by management for
decision making and for publication. The internal control system includes the following elements;
An organisational structure and division of responsibilities;
Established policies and procedures; and
Established mechanisms to ensure compliance.
7.12. Risk and internal audit
King III recommends that the Board appoint an internal audit function, which should be focused
on risk.
The Company utilises a third party administrator, Legis Fund Services Limited. As Administrator,
one of the key duties of Legis is to provide the Companys accounting function. Legis is regulated
by the Guernsey Financial Services Commission and is required to maintain a robust systems and
controls environment and to maintain separate Risk and Compliance functions. This environment
is reviewed by Legis auditor as part of the annual audit process.
Legis separately engages their auditor to produce an AAF01/06 report on internal controls on
an annual basis; the most recent report is dated 24 October 2011. This report concluded that
Legis had designed suitable and effective control procedures in place in order to meet its control
objectives. Accordingly, the Directors believe that it is not appropriate for the Group to appoint its
own internal audit function.
7.13. IT governance
King III suggests that a company should appoint a specic Chief Information Ofcer, with
responsibility for IT governance.
134
The Board are collectively responsible for IT governance. As the Company is an investment
holding company, the Company does not directly own any IT assets. Legis, the Administrator,
have a formal programme of IT risk management and a Chief Information Ofcer, who manages
the Companys IT risk at Legis. The Directors believe that it is not appropriate to appoint a Chief
Information Ofcer.
7.14. Insurance
The Company has taken out a directors and ofcers liability insurance policy, which also includes
certain cover for other Group companies, including entities within the Investment Portfolio.
7.15. Sustainability reporting
The Directors recognise the importance of sustainable development. As an investment holding
company, the Company does not have a signicant direct impact on the natural environment in
which it operates. The responsibilities for sustainable development are largely retained by the
investments within the Groups Investment Portfolio. Detailed sustainability information for the
Groups Investment Portfolio can usually be obtained from publicly available information relating to
the relevant investments.
7.16. Communication with stakeholders
The Directors regularly present to shareholders on the Groups nancial performance and strategy.
The Directors maintain regular contact with analysts, institutional investors and the South African
media.
The Group ensures communication with stakeholders who do not have access to electronic media
by publishing various announcements, including its interim and nal results, in South African daily
newspapers (usually Business Day and Die Burger). The Company also maintains a website which
contains information on the Group, www.pallinghurst.com.
7.17. Trading in the Companys shares
Directors may not trade the Companys shares during certain closed periods, which are as
follows:
Between 1 January and the date on which the annual results are announced on the JSE and
BSX;
Between 1 July and the date on which the interim results are announced on the JSE and BSX;
and
If the Company is in the process of price sensitive negotiations, acquisitions or disposals, or
pending any other price sensitive announcements.
Directors are able to trade the Companys shares outside of these periods, after rst obtaining
approval in writing from the Chairman and the Finance Director. Details of any transactions by
Directors in the shares of the Company are advised to the JSE for publication on SENS, and are
also advised to the BSX for publication.
135
8. SHARE CAPITAL
8.1. Share capital
Details of the share capital of the Company as at the Last Practicable Date are set out in paragraph
11 to the Circular.
8.2. Rights attaching to Shares
As at the Last Practicable Date, the authorised share capital of the Company consists of two
classes of Shares: 999,000,000 ordinary Shares (of which 832,946,717 will have been issued
following the implementation of the Rights Offer, provided that all Rights Offer Shares are taken up)
with a nominal value of US$0.00001 each and ten management Shares (of which two have been
issued) with a nominal value of US$1.00 each. Of the 832,946,717 ordinary shares which will have
been issued following the implementation of the Rights Offer, 357,142,857 ordinary Shares will be
issued pursuant to the RightsOffer.
Each Share carries the right to one vote on a poll at any general meeting and Shares rank pari
passu. The Shares have no special rights or restrictions attached.
Management Shares each carry the right to receive notice of, attend and vote at any general
meeting of the Company, provided that no Shares are in issue at such date. When such rights
exist, each holder of a Management Share who is present or by proxy at a general meeting will
have 10,000 votes in respect of each Management Share held by them.
The holders of Shares are entitled to receive, and participate in, any Distributions resolved to be
distributed during any Accounting Period. On winding up and after the payment of all creditors of
the Company, the payment of the Fair Value per Share of the Shares less any cost associated with
the liquidation and the nominal value of the Management Shares, the holders of the Shares shall
be entitled to any surplus.
The holders of Management Shares have no right to receive or participate in any Distributions
of the Company except that on winding up, after the payment of all creditors of the Company
and the payment of the Fair Value per Share of the Shares less any costs associated with the
liquidation, the nominal value of the Management Shares shall be paid to the holders of the
Management Shares.
Directors control the issue or disposal of the authorised but unissued share capital of the
Company, subject to Guernsey Law. The Company may, by Special Resolution, make changes to
the authorised share capital structure (including authorising an increase to the authorised share
capital, a consolidation of the share capital, and a share split). Any reduction of share capital
requires a Special Resolution and is subject to Guernsey Law.
The Articles of Incorporation also provide that the attachment, variation and deletion of special
rights and restrictions to a class of shares must be authorised by Special Resolution of the holders
of the shares of that class. The rights attached to the Management Shares cannot be amended
unless a Special Resolution is also passed by the holders of the Shares.
136
8.3. Changes to issued share capital
Apart from the Rights Offer, since the Companys incorporation in September 2007, there have
been no amendments to the issued share capital, other than as follows:
A 1,000-for-1 share split which was approved by Shareholders on 9 June 2008. The effect of the
1,000-for-1 share split on the authorised and issued share capital is set out below:
US$
Before the Share Split
Authorised
999,000 Shares of US$0.01 each 9,990
Issued
169,316 Shares of US$0.01 each 1,693
After the Share Split
Authorised
999,000,000 Shares of US$0.00001 each 9,990
Issued
169,316,000 Shares of US$0.00001 each 1,693
A vendor consideration placing was concluded on 19 December 2008. The effect of the vendor
consideration placing on the authorised and issued share capital is set out below:
US$
Before the Vendor Consideration Placing
Authorised
999,000,000 Shares of US$0.00001 each 9,990
Issued
169,316,000 Shares of US$0.00001 each 1,693
After the Vendor Consideration Placing
Authorised
999,000,000 Shares of US$0.00001 each 9,990
Issued
247,232,484 Shares of US$0.00001 each 2,472
A renounceable rights offer was concluded on 29 September 2009. The effect of the rights issue
on the authorised and issued share capital is set out below:
US$
Before the 2009 Rights Issue
Authorised
999,000,000 Shares of US$0.00001 each 9,990
Issued
247,232,484 Shares of US$0.00001 each 2,472
After the 2009 Rights Issue
Authorised
999,000,000 Shares of US$0.00001 each 9,990
Issued
475,803,860 Shares of US$0.00001 each 4,758
Changes to issued share capital as a result of the Rights Offer have been set out in paragraph 11 on
page 45 of this Circular.
137
9. DETAILS OF MAJOR SHAREHOLDERS OF THE COMPANY
Details of the major shareholders of the Company at the Last Practicable Date are set out in paragraph12
on page 46 of the Circular.
10. DIVIDENDS AND OTHER DISTRIBUTIONS
The Company has not declared or paid any Distributions since its incorporation. Any decision to
make Distributions will be made by the Board according to the terms as set out in paragraph 6 of the
Revised Listing Particulars. The Company may pay dividends to the extent that it has prots available for
distribution. Any dividends paid will be paid in accordance with the Articles of Incorporation, the BSX,
the Listings Requirements and Guernsey Law. In accordance with the Articles of Incorporation, holders
of Management Shares are not entitled to Distributions.
11. TRADING HISTORY OF SHARES ON THE JSE
The trading history of Shares on the JSE has been disclosed in Annexure IV to the Circular.
12. EXCHANGE CONTROL REGULATIONS
12.1. Exchange Control Regulations
Set out below is a summary of the Exchange Control Regulations relating to the acquisition of
Shares.
The Company is a South African inward listed company as referenced in Section H(C)(VII) of the
Exchange Control Regulations. As such, the Exchange Control Regulations, as amended by the
Medium Term Budget Policy Statement by the South African Minister of Finance on 28 October
2004, will apply to the acquisition of Shares by South African residents, as summarised below.
Exchange Control Regulations restrict the export of capital from the Common Monetary Area,
without the prior consent of the South African Reserve Bank. The Exchange Control Regulations
apply to transactions involving South African residents, including both natural persons and
legalentities.
Funds raised outside the Common Monetary Area by the Company and its non-South African
Subsidiaries are not restricted under the Exchange Control Regulations. Non-South African
residents may freely sell their Shares on the JSE and freely remit the proceeds outside of the
Common MonetaryArea.
The following summary is intended as a guide and is not comprehensive. It is recommended that
Shareholders and prospective Shareholders consult their independent professional advisors if
they have any doubt regarding the implications of the Exchange Control Regulations.
12.1.1. South African individuals
South African individuals will be able to acquire shares in African inward listed companies
that are listed on the JSE, such as the Company, without restriction. Consequently, an
acquisition of Shares by a South African individual will not affect such persons offshore
investment allowance.
138
12.1.2. South African institutional investors
South African retirement funds, long-term insurers, collective investment scheme
management companies as well as investment managers who have registered with
Exchange Control as institutional Shareholders for Exchange Control purposes. All inward
listed shares will be classied as domestic companies and therefore there would be no
restrictions for South African institutions holding shares on the JSE.
12.1.3. South African corporate entities
A South African corporate entity may invest in instruments that are inward listed on the JSE
without restriction.
12.1.4. Member brokers of the JSE
In terms of section H(E) of the South African Reserve Bank Exchange Control Rulings,
a special dispensation was provided to local brokers to facilitate the trading in shares of
South African inward listed companies. South African brokers are now allowed, as a book
building exercise, to purchase Shares offshore and to transfer them to the Companys South
African Register. This special dispensation is conned to shares of inward listed companies
and brokers may warehouse such shares for a maximum period of 30 daysonly.
12.1.5. Exchange Control provisions applicable to South African residents in respect of
acquisition issues and rights by African companies that are listed on the JSE
African companies with inward listings on the JSE, such as the Company, will be allowed
to issue shares to South African residents in consideration for acquisitions. South African
institutional Shareholders will be given 12 months to realign their portfolios, should they be
in excess of their Exchange Control foreign exposure limits as a result of such acquisition
issues. South African institutional Shareholders and corporate entities will be allowed to
exercise their rights in terms of any rights issues by African companies with inward listings
on the JSE, such as the Company. South African institutional Shareholders will be given a
period of twelve months to realign their portfolios should they be in excess of their offshore
investment allowances as a result of exercising their rights in terms of a rights offer.
12.1.6. Non-residents of the Common Monetary Area
Non-residents of the Common Monetary Area may acquire Shares on the JSE, provided
they pay the purchase price from a non-resident account at a South African registered bank
in Rands. However, former residents of the Common Monetary Area who have emigrated
may not use emigrant blocked funds to acquire any inward listed Shares.
12.1.7. Transfer of Shares between Registers
Shares are fully fungible and may be transferred between the South African Register
and the BSX Register. Eligible South African Shareholders, being those described in the
paragraphs above, may only acquire Shares via the JSE that are already on the South
African Register maintained by the Transfer Secretaries. Member brokers of the JSE may
acquire Shares on foreign exchanges and transfer them to the South African Register as
described above. Non-residents are not subject to the Exchange Control Regulations and
may freely transfer Shares between the South African Register and the BSX Register.
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13. EXPENSES, FEES AND INVESTMENT MANAGERS BENEFITS
13.1. Expenses
The Company is responsible for all the expenses incurred by the Company including, but not limited
to, the Annual Operating Expenses. In addition, the Company has agreed that the Investment
Manager or its associated entities shall be entitled to the nancial benets described in paragraph
13.3 below.
The Company shall reimburse all reasonable out-of-pocket expenses properly incurred by the
Investment Manager, the Administrator, and each of the Directors in the performance of their
duties on behalf of the Company.
13.2. Administrator fee
Under the Administration Agreement, the Company has agreed to pay or procure to be paid to
the Administrator, for its services as administrator and company secretary, a minimum fee of
US$80,000 per annum payable within 20 Business Days of the end of each quarter to which the
fee applies, until the Redemption Date or if earlier, termination of the Administration Agreement.
13.3. Investment Managers Benets
13.3.1. Annual Investment Managers Benet
The Investment Manager shall, as consideration for the investment advisory and
management services provided to the Company in relation to Investment opportunities
falling within the Investment Scope, be entitled to an annual benet that will not exceed:
(a) during the Investment Period
1
, an amount of 1.5% per annum of the Companys Funds,
payable quarterly in advance; and
(b) with effect from the end of the Investment Period, an amount of 1.5% per annum of the
lesser of the aggregate Acquisition Cost or market value (as determined by the most
recent independent valuation) of Unrealised Investments of the Company during the
relevant Accounting Period, calculated and payable quarterly in advance.
The Annual Investment Managers Benet shall be reduced by an amount equal to such
part of all Transaction Receipts received and retained by the Investment Manager in
the previous Accounting Period and not previously taken into account pursuant to this
paragraph (and if the amount of such reduction is greater than the Annual Investment
Managers Benet for the Accounting Period in question, the excess amount will be carried
forward and off-set against the Annual Investment Managers Benet to be allocated in the
next Accounting Period(s)).
If, on the Redemption Date, there remains any excess Transaction Receipts which have not
been offset against the Annual Investment Managers Benet pursuant to this paragraph,
then the Investment Manager shall reimburse the Company for an amount equal to
suchexcess.
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The Annual Investment Managers Benet shall be subject to a pro rata refund to the
Company for any period for which a portion of the Annual Investment Managers Benet
was paid in advance, but during which the Investment Management Agreement has
beenterminated.
13.3.2. Performance Incentive
Subject to certain conditions, the Investment Manager is entitled to a Performance
Incentive related to the performance of the Groups investments. The excess of the total
funds available for return to shareholders, over the total amount subscribed for in the
Company, will be split between the shareholders and the Investment Manager
2
in the
ratio 80%/20%. This is subject to meeting a Hurdle
3
of 8% per annum; until the Hurdle is
reached, the Investment Manager is not entitled to the Performance Incentive, ensuring
that the Investment Manager would only be rewarded if aggregate returns to shareholders
are in excess of 8% per year.
Whether a sufcient return has been made, and whether the Performance Incentive is
payable, is only assessed at the end of the Investment Period. However, the Directors
assess whether a Performance Incentive accrual should be made at the end of each
reporting period. The Directors also assess whether the accrual should be accounted for
as a current or non-current liability, based on their best assessment of the likely timing of
any outow.
The accrual for the Performance Incentive is calculated as follows:
(a) The Groups Aggregate Proceeds
4
are allocated entirely to shareholders until such
time as shareholders have received an aggregate amount of the Companys Funds
5

plus the Hurdle;
(b) Thereafter, the Investment Manager is allocated all further Aggregate Proceeds until it
has been allocated an amount equal to 25% of the Hurdle; and
(c) Aggregate Proceeds are then allocated 80% to Investors and 20% to the Investment
Manager.

1
The Investment Period commenced on 14 September 2007. The Investment Period can end under various circumstances,
including if shareholders approve that the period should end in a general meeting by special resolution. The Investment
Period may end on 14 September 2012, the ve year anniversary of the Companys incorporation, unless shareholders
agree that it should be extended. The Investment Period has not yet ended.

2
A Performance Incentive payment could be made to the Investment Manager or to an afliate of the Investment
Manager.

3
The Hurdle is calculated as 8% of the Companys Funds, compounded annually each year, and calculated daily.

4
Aggregate Proceeds are effectively equal to the Groups NAV, after adding back any accrual for the Performance
Incentive. For the purposes of the accrual calculation, it is assumed that investments will be disposed of for an amount
equal to their current fair value, with no associated transaction costs, and full distribution of proceeds to shareholders.
The Groups NAV, after adding back any Performance Incentive accrual, is therefore the best current estimate of what
the total amount available for distribution would be.

5
The Companys Funds are effectively equal to the sum of the Companys share capital and share premium.
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13.3.3. End of the Investment Period
After the end of the Investment Period, the Company must Distribute all Aggregate Proceeds
to Shareholders within 30 Business Days of receipt, through a dividend, the redemption of
Shares or another suitable method, unless otherwise resolved by Special Resolution and
with the prior written consent of the Investment Manager.
14. CONFLICTS OF INTEREST
The Investment Manager and its associated entities shall not, except with the prior consent of Shareholders
by means of an Ordinary Resolution, commence investing, or act as the primary source of transactions
for a new investment entity with a similar Investment Scope as that of the Company at any time prior to
whichever is the earliest to occur of:
(a) the removal of the Investment Manager as investment manager to the Company;
(b) the expiry of the Investment Period; and
(c) the winding-up of the Company.
Thereafter the Investment Manager and its associated entities shall be entitled to establish a new entity
with a similar Investment Scope and to raise funds for such new entity whilst simultaneously continuing
to act as Investment Manager for the Company with a view to managing and Realising Investments.
The Administrator and the Directors, other than Brian Gilbertson, Arne H. Frandsen and Andrew Willis,
may provide similar services to other companies and/or entities even where the business of those other
companies and/or entities is or may be in competition with the Company.
In the event that any of the Directors, in accordance with the provisions of the Articles of Incorporation,
the Investment Manager and the Administrator, in the ordinary course of business, have potential conicts
of interest with the Company, each will, at all times, have regard in such event to their obligations to the
Company and will endeavour to ensure that such conicts are resolved fairly. In addition, any of the
foregoing may deal as principal or agent with the Company, provided that such dealings are carried out
on normal commercial terms negotiated on an arms length basis and, in the case of the Directors, in
accordance with the Articles of Incorporation.
Certain interests of the Directors are set out in paragraph 3 of these Revised Listing Particulars. The
Articles of Incorporation specify the circumstances in which a Director may or may not vote in relation
to a matter in which he may be interested, as described in paragraph 4 in Appendix I headed Extracts
from the Articles of Incorporation of the Revised Listing Particulars.
None of the Directors have existing or proposed service contracts with the Company. None of the
Directors have any contract or arrangement existing at the date of the Revised Listing Particulars in which
the Director is materially interested and which is material in relation to the business of the Company, save
for as disclosed in the Revised Listing Particulars and, in particular, in the case of Brian Gilbertson, Arne
H. Frandsen and Andrew Willis, inter alia, the Investment Management Agreement.
A Director may own Shares in the Company, but there is no requirement that he or she does so. The
Directors and the executives/Partners of the Investment Manager may from time to time have benecial
142
interests in the Investment Manager and/or the Company, as the case may be. Directors, who are
executives/Partners of the Investment Manager and the executives/Partners of the Investment Manager,
will be precluded from voting as Shareholders on any proposal in relation to the Investment Management
Agreement, subsequent to the conclusion thereof by the Company.
15. TAXATION
The following is a general summary of certain tax considerations that an existing or prospective
Shareholder should consider. The summary below is based upon current law and administrative practice,
which is subject to change, and does not address all of the tax considerations that may be relevant
to a particular Shareholder in light of its own particular circumstances. Shareholders and prospective
Shareholders should consult their professional advisors on the tax consequences of acquiring, holding,
disposing, transferring or the redemption of their Shares, which will normally depend upon their country
of citizenship, ordinary residence or domicile.
In Guernsey
The following summary of the anticipated tax treatment in Guernsey applies to Shareholders:
15.1. General
The information below, which relates only to Guernsey taxation, summarises the advice received
by the Directors. It is applicable to the Company and to Shareholders who are resident or ordinarily
resident in Guernsey for taxation purposes and who hold Shares in the Company as an investment.
It is based on current Guernsey revenue law and published practice, which revenue law or practice
is, in principle, subject to any subsequent amendments. This summary does not constitute legal
or tax advice and is based on current Guernsey revenue law and published practice existing
at the date of the Revised Listing Particulars. Prospective Shareholders should be aware that
the level and bases of taxation may change from those described and they should consult their
own professional advisors on the implications of acquiring, holding, disposing, transferring or the
redemption of their Shares under the laws of the countries in which they are liable to taxation.
The following information does not deal with certain types of Shareholders, such as Shareholders
acquiring, holding, disposing, transferring or the redemption of their Shares in the course of trade,
collective investment schemes or insurance companies.
15.2. The Company
The Company has been granted tax exempt status by the Director of Income Tax in Guernsey
for conrmation that the Company will be eligible for exempt status under the Income Tax
(Exempt Bodies) (Guernsey) Ordinance, 1989 (the Ordinance). The Company will need to re-
apply annually for exempt status for Guernsey tax purposes, incurring the current fee of GBP600
perannum.
As exempt status has been granted, the Company will not be considered resident in Guernsey for
Guernsey income tax purposes. A company that has exempt status for Guernsey tax purposes
is exempt from tax in Guernsey on both bank deposit interest and any income that does not have
its source in Guernsey. It is not anticipated that any income other than bank interest will arise in
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Guernsey and therefore the Company is not expected to incur any additional liability for Guernsey
tax. Payments of dividends and interest by a company that has exempt status for Guernsey tax
purposes are regarded as having their source outside Guernsey and hence are payable without
deduction of tax in Guernsey.
In the absence of an exemption, the Company would be treated as resident in Guernsey for
Guernsey income tax purposes and subject to the zero rate regime, described below.
In response to the review carried out by the European Union Code of Conduct Company, the
States of Guernsey has agreed to abolish exempt tax status for the majority of companies and to
introduce a zero rate of tax for companies carrying on all but a few specied types of regulated
business. The Company, in the absence of an exemption, together with any Guernsey incorporated
subsidiaries, and any other companies controlled by the Company would become Guernsey
resident companies subject to the zero rate of Guernsey tax. Under this regime, the Company and
any subsidiaries would not be required to withhold Guernsey income tax from interest or dividends
paid by them other than in respect of distributions to Guernsey resident individuals.
The States of Guernsey has also agreed that because closed-ended investment vehicles are not
one of the regimes in Guernsey classied by the EU Code of Conduct Company as being harmful,
closed-ended investment vehicles will continue to be able to apply for exempt status for Guernsey
tax purposes. The changes introduced by the zero tax regime are not expected to have any
material impact on the Company, as it is expected that the Company will be granted exempt
taxstatus.
The Policy Council of the States of Guernsey has stated that it may consider further revenue
raising measures in 2011/2012, including possibly the introduction of a goods and services tax,
depending on the state of Guernseys public nances at that time.
Non-Guernsey resident Shareholders will not be subject to Guernsey tax on the redemption or
disposal of their holding of Shares in the Company.
Guernsey currently does not levy taxes upon capital inheritances, capital gains (with the exception
of a dwellings prot tax) gifts, sales or turnover, nor are there any estate duties, save for an ad
valorem fee for the grant of probate or letters of administration. No stamp duty is chargeable in
Guernsey on the issue, transfer, switching or redemption of shares in the Company.
15.3. Shareholders
Shareholders resident outside Guernsey will not be subject to any income tax in Guernsey in
respect of any Shares owned by them. Any Shareholders who are resident for tax purposes in
Guernsey, Alderney or Herm will incur Guernsey income tax on any dividends paid on Shares
owned by them but will suffer no deduction of tax by the Company from any such dividends
payable by the Company where the Company is granted exempt status. The Company is required
to provide details of distributions made to Shareholders resident in the Islands of Guernsey,
Alderney and Herm to the Director of Income Tax in Guernsey.
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In South Africa
15.4. Transfer of Shares from the BSX Register to the South African Register
Certain South African residents are currently Shareholders in the Company through the BSX and
hold their shares through the BSX Register.
With regard to the transfer of the Shares to the South African Register, such a transfer would not
trigger a disposal of the Shares and would therefore not result in any South African Capital Gains
Tax consequences.
The Shares transferred from the BSX Register to the South African Register will be the same Shares
with the same rights and entitlements and therefore the transfer will not constitute a disposal for
South African capital gains tax purposes.
15.5. Shareholder taxation
As the investment is in the Shares of the Company, the tax consequences relating to the investment
will depend on the nature and status of each Shareholder. Existing and potential Shareholders
should seek advice from their own independent professional advisors in relation to the taxation
consequences of acquiring, holding, disposing, transferring or the redeeming of their Shares.
16. PRINCIPAL RISKS AND UNCERTAINTIES
The Group makes and holds various investments, and does not directly carry out any other operating
activities. The performance of the Groups Investment Portfolio is therefore the most signicant factor in
determining the Groups Net Asset Value (NAV).
Shareholders should carefully consider the following risks and uncertainties, which may not be
comprehensive, before investing in the Company.
16.1. Key risks to the Investment Portfolio
16.1.1. Macroeconomic risks
The macroeconomic outlook is uncertain and could adversely impact on the Groups
investments. Macroeconomic problems could impact on the Group in various ways.
The Group does not consolidate any mining assets or hold any physical commodities on
its balance sheet, so commodity price changes have no direct impact on the Financial
Statements. However, certain prices, particularly of PGMs, iron ore and manganese, can
impact on the valuation of the Groups investments. The prices of certain precious and
semi-precious gemstones are also relevant, in particular, the prices of emeralds, rubies
and amethysts; these prices are less predictable than other commodities.
A poor macroeconomic outlook could create other difculties for the Groups investments.
Suppliers or customers may come under pressure. Governments may introduce changes
to the tax and regulatory environments in which the investments operate. These factors
could result in a material adverse impact on the Groups future prospects.
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16.1.2. Resources sector and country risk
The Group investments are focused on the resources sector. All such investments have
associated operational performance, political, economic, litigation, foreign currency and
country risks. If the sector encounters difculties, these could adversely affect more than
one investment simultaneously.
The Group is invested in various countries including South Africa, Australia and Zambia.
Specic risks associated with different countries in which the Group is invested may include
risks associated with regulatory, tax, foreign exchange uctuations, industrial relations
problems, and other local economic conditions. The Groups investments could also
suffer from future unanticipated events or problems. The Group holds a limited number
of investments, each of which is usually material, and the failure of any single investment
could have a signicant adverse impact on the Group.
The Groups Investment Portfolio contains unlisted investments, which can present
different risks compared to listed investments. Unlisted investments may be illiquid, and it
may not be possible for the Group to divest of its investments at their current valuations.
The management team may not be large and the performance and retention of a small
number of key personnel may be vital to success.
16.1.3. Mining risk
Exploration, extraction and processing activities are generally speculative in nature and
there can be no assurance that any mineral deposits will be discovered, successfully
extracted or processed. The exploration, development, mining and processing of mineral
deposits gives rise to signicant uncertainties and operations are subject to all of the
hazards and risks normally encountered in such activities. Costs can be difcult to predict.
Exploration, extraction and processing activities are usually subject to environmental and
safety laws and labour and occupational health legislation. A breach of environmental
laws and regulations could result in the imposition of a ne, or closure of operations. Any
environmental damage could create negative publicity for the investment, which could also
affect the Group. Such breaches could also affect any future mining licence applications
by the Groups investments. Damage to, or destruction of, an investments facilities or
property, environmental damage or pollution and, together with potential legal liability, could
have a material adverse impact on the business, operations and nancial performance of
an investment. As mining companies move closer towards production, the risks associated
with the investments signicantly change and develop. Material new types of risk such
as energy security, safety, sustainable development, employee relations and the risks
associated with mining rights and permits are all likely to become more signicant. Other
specic mining risks include resource nationalism, which could see the sequestration of
mining assets by national governments, or the adverse impact caused by the rejection of
applications for mining permits or licences.
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16.1.4. Other risks facing the Investment Portfolio
The Groups investments may also face other risks in their normal course of business. For
the Groups listed investments, including Jupiter and Gemelds, these risks are further
articulated in their respective nancial statements, which are publicly available. The
Faberg investment faces various risks associated with a luxury brand in the early stages
of its development.
16.2. Direct risks to the Group
16.2.1. Liquidity risk
The Groups cash balance has decreased over time as the Group has become more fully
invested. The Directors have considered various avenues to ensure that the Group is able
to continue to operate effectively, and is currently seeking to raise new equity capital from
existing shareholders via the Rights Issue. If the rights issue is not successful, the Group
would suffer from a number of adverse implications and may not be able to continue in
business.
16.2.2. Counterparty risk (banking or other)
Materially all of the Groups cash balances are held in US$, with Investec Bank (Channel
Islands) Limited, a subsidiary of Investec Bank plc (Investec), which is rated as BBB minus
by Fitch ratings. The Groups subsidiaries and associates hold immaterial cash balances
with various other banks. Bankruptcy or insolvency of any of these entities, but particularly
Investec, could have a signicant adverse impact on the Group.
16.2.3. Exchange rate risk
The Groups investments are denominated in a variety of currencies. The Groups treasury
policy states that all balances should be held in US$ other than when there will be a known,
material investment outow in a foreign currency other than the US$. If such an outow
is anticipated, the relevant balance is translated to the relevant currency. This ensures
that the Group does not carry material foreign exchange risk on its balance sheet in most
circumstances.
16.2.4. External reporting risk of failure to accurately report nancial or other information
The Groups external nancial reporting is reliant on various IT systems, plus the integrity
and quality of staff at the Administrator and Investment Manager. Failure of information
systems could lead to the loss of accounting records, which could ultimately lead to a
material error in the Groups nancial reporting. The valuation of the Investment Portfolio
each reporting period is complex and subjective, and if the valuations were misstated,
this could materially affect both the Groups NAV and its reputation. Shareholders should
anticipate further changes in the Groups risk prole over time. As the Group has developed
and become more fully invested, the relative importance of certain risks compared to others
has changed and developed. There have been no material changes to the risk prole of the
Group since 31 December 2011.
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17. GENERAL INFORMATION
17.1. Indemnities
(a) Subject to (g) below, the Company shall indemnify each of the Indemnied Persons against
any liabilities, claims, costs or expenses (including reasonable legal fees) suffered or incurred
or threatened by reason of such Indemnied Persons activities under the relevant agreements,
if applicable, concluded between such Indemnied Persons and the Company provided
however that such person shall not be so indemnied with respect to any matter resulting from
its Cause.
(b) Without prejudice to the generality of the foregoing, and subject to the terms hereof, the
Company agrees to pay all reasonable costs and expenses incurred by any Indemnied Person
in defending, resisting or investigating any threatened or pending action, claim or proceeding
in respect of which the Indemnied Person claims to be entitled to be indemnied pursuant to
this paragraph 17.1 in advance of the nal determination of such action, claim or proceeding
upon receipt of a legally binding undertaking by or on behalf of such Indemnied Person to
repay such amount if it shall subsequently be determined by a court of competent jurisdiction
that such Indemnied Person is not entitled to be so indemnied or receive a contribution in
accordance herewith.
(c) The provisions of this paragraph shall continue in effect notwithstanding that the Indemnied
Person shall have ceased to carry out its respective activities under the relevant agreement, if
applicable, but only as regards the services provided in the period prior to and including such
cessation (but not thereafter).
(d) Each Indemnied Person will be entitled to enforce the provisions of this paragraph 17.1.
(e) Any Indemnied Person shall rst seek recovery under any other indemnity or any insurance
policies by which such Indemnied Person is indemnied or covered, as the case may be, but
only to the extent that the indemnier with respect to such indemnity or the insurer with respect
to such insurance policy provides (or acknowledges its obligation to provide) such indemnity or
coverage on a timely basis, as the case may be.
(f) The Investment Manager will use reasonable efforts to ensure that each Investment Vehicle for
which an Indemnied Person serves as a director or ofcer: (i) has adopted charter documents
providing mandatory indemnication therefore to the fullest extent permitted by law and (ii)
obtains director and ofcer insurance to the extent available at market related rates.
(g) The Companys obligations under this indemnity shall:
(i) where the matter requiring the indemnity arises from an Investment in an Investment
Vehicle with one or more selected Co-Investors, on a case-by-case basis, be several and
in proportion to the Investment Amount paid in relation to the Investment Vehicle;
(ii) where the matter requiring the indemnity arises from a specic Investment, be several in
proportion to its respective Investment Amount in that Investment; and
(iii) in either case, shall be limited to the higher of the applicable Investment Amount(s) and any
amounts Realised in relation thereto, either in respect of the arrangements contemplated
in the Investment Vehicle agreement or the specic Investment, as the case may be.
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17.2. NAV of the Company
The NAV of the Company is the value of the Companys total assets less total liabilities, including a
provision for the Performance Incentive if applicable. The value of the assets of the Company and
the amount of its liabilities are determined by the Board as follows:
(a) The assets of the Company include the following:
(i) investments;
(ii) cash on hand, on deposit, or on call, including any interest accrued thereon;
(iii) all bills, demand notes, promissory notes and accounts receivable;
(iv) all interest accrued on any interest-bearing securities owned by the Company; and
(v) all other assets of the Company.
(b) The assets of the Company are valued as follows:
(i) Investments are valued by the Directors in accordance with IFRS and the Valuation
Guidelines. The Independent Valuer reviews the investment valuations prepared by the
Directors, and conrms that they have been prepared using a methodology and approach
reasonable and consistent with the concept of fair value and in accordance with the
Valuation Guidelines;
(ii) cash on hand or on deposit, prepayments, cash dividends and interest declared or accrued
and not yet received are accounted for in accordance with IFRS;
(iii) demand notes, promissory notes and accounts receivable are valued either at their face
value, or at their face value less a discount where appropriate, in accordance with IFRS;
(iv) deposits are valued at their principal amount plus accrued interest from the date of
acquisition in accordance with IFRS;
(v) certicates of deposit, treasury bills, bank acceptances and trade bills are valued in
accordance with IFRS; and
(vi) all other assets are accounted for in accordance with IFRS.
(c) Any valuations made pursuant to the Articles of Incorporation shall be binding on all Persons.
(d) The liabilities of the Company include all its liabilities of whatsoever kind.
(e) The liability for the Performance Incentive is calculated in accordance with the terms set out
in the section headed Expenses, Fees and Investment Managers Benets of the Revised
Listing Particulars.
17.3. Reports and nancial statements
The books and records of the Group are maintained in US$. The Groups nancial statements are
prepared under IFRS and denominated in US$.
The Accounting Period of the Company ends on 31 December each year. Audited annual nancial
statements and reviewed interim nancial statements are communicated to Shareholders, on a
six-monthly basis, via SENS, amongst other means.
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17.4. Share certicates
Shares are traded in Dematerialised form.
The Companys share register is maintained at the ofce of the Administrator. The South African
Register is maintained by the South African Transfer Secretaries.
17.5. General meetings
The Board convenes an annual general meeting in each calendar year. The ordinary business of
each annual general meeting is to consider the Groups most recent Annual Report, to consider any
Board appointments, to appoint the auditors and consider their remuneration, and to sanction or
declare any dividends. All other business is considered to be special, and is considered either in an
extraordinary general meeting, or is described as special in the notice of annual general meeting.
The Companys annual general meetings are held in Guernsey or such other place as the Directors
may determine. Notices convening the annual general meeting are sent to Shareholders in
accordance with the requirements of the Articles of Incorporation and the Listings Requirements.
Other general meetings may be convened from time to time by the Directors by sending notices
to Shareholders at their registered addresses or by Shareholders requisitioning such meetings
in accordance with Guernsey law, and may be held in Guernsey or elsewhere. Shareholders
holding at least one tenth of the issued Shares between them may convene an extraordinary
generalmeeting.
17.6. Corporate relationships and material contracts
Other than the material contracts referred to in Appendix II to the Revised Listing Particulars, the
Company and its subsidiaries did not enter into any material contracts other than in the ordinary
course of business carried on or proposed to be carried on by the Company and its subsidiaries,
within the two years prior to the date of the Revised Listing Particulars and since incorporation
to the date of the Revised Listing Particulars or at any time and containing an obligation or
settlement that is material to the Company or its subsidiaries at the date of the Revised Listing
Particulars. The material contracts, the major terms of which have been disclosed in Appendix
II to the Revised Listing Particulars, consist of the Investment Management Agreement and the
AdministrationAgreement.
17.7. Material borrowings and loans receivable
Material borrowings and loans receivable at the Last Practicable Date are set out in paragraph 18
to the Circular.
17.8. Commitments and contingent liabilities
Commitments and contingent liabilities at the Last Practicable Date are set out in paragraph 20 to
the Circular to which the Revised Listing Particulars form part.
17.9. Statement as to working capital
The Directors are of the opinion and have reasonable grounds for believing that subsequent to the
Revised Listing Particulars:
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17.9.1. the Company and its subsidiaries will, in the ordinary course of business, be able to pay
its debts for a period of twelve months after the date of approval of the Revised Listing
Particulars;
17.9.2. the assets of the Company and its subsidiaries will be in excess of its liabilities for a period of
twelve months after the date of approval of the Revised Listing Particulars. For this purpose,
the assets and liabilities are recognised and measured in accordance with the accounting
policies used in the latest audited consolidated annual nancial statements;
17.9.3. the share capital and reserves of the Company and its subsidiaries will be adequate for
business purposes for a period of twelve months after the date of approval of the Revised
Listing Particulars; and
17.9.4. the working capital of the Company and its subsidiaries will be adequate for ordinary business
purposes for a period of twelve months after the date of approval of the Revised Listing
Particulars.
17.10. Litigation statement
The Company and its subsidiaries are not involved in any legal or arbitration proceedings, nor are
the Directors of the Company aware of any proceedings, which are pending or threatened, which
may have or have had, in the twelve month period preceding the Last Practicable Date, a material
effect on the Groups nancial position.
17.11. Material changes
Material changes in the business, controlling shareholders, nancial and trading position or
trading objects of the Company since the end of the preceding Accounting Period, are set out in
paragraph 22 to the Circular.
17.12. Miscellaneous
(a) The Company does not have and does not expect to have, nor has it since its incorporation
had, any employees.
(b) The Company may be subject to withholding tax on distributions received in respect of its
Investments, which withholding tax may not be recoverable.
(c) No share or loan capital of the Company has been issued, or agreed to be issued, as fully or
partly paid-up, otherwise than in cash.
(d) Save as disclosed under the section headed Expenses, Fees and Investment Managers
Benets of the Revised Listing Particulars, no amount or benet has been paid or given or is
intended to be paid or given to any promoter of the Company.
(e) Save as disclosed under the section headed Expenses, Fees and Investment Managers
Benets of the Revised Listing Particulars, no commissions, discounts, brokerages or other
special terms have been granted by the Company in connection with the issue or sale of any
Shares or loan capital.
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(f) All consents, approvals, authorisations or other orders of all regulatory authorities (if any)
required by the Company under Guernsey Law for the Administrator to undertake its
obligations under the Administration Agreement and for the establishment and management
of the Company have been obtained.
(g) No Person has, or is entitled to be given, an option to subscribe for Shares.
(i) No Shares have been or will be issued as partly paid-up, and no Shares have been issued or
agreed to be issued otherwise than in cash.
(h) The Company does not have a place of business in the United Kingdom.
(i) Copies of all the Material Contracts set out in Appendix II headed Material Contracts of the
Revised Listing Particulars are held by the Administrator (or its nominated agent) on behalf of
the Company.
(j) Any dispute resulting from the Revised Listing Particulars will be governed by Guernsey Law.
17.13. Advisors interests
None of the advisors of the Company, other than as set out in this Circular, had an interest in the
issued share capital of the Company as at the Last Practicable Date.
Other than as set out in this Circular, the Company is not aware of any person who, directly
or indirectly, has an interest in the Companys capital or voting rights which is notiable under
Guernsey Law
17.14. Consents
The Investment Bank and JSE Sponsor, legal advisors, independent reporting accountant, and
South African Transfer Secretaries have consented in writing to act in the capacities stated and
to their names being included in the Revised Listing Particulars and have not withdrawn their
consents prior to the publication of the Revised Listing Particulars.
17.15. Directors responsibility statement
The Directors, whose names are given in the Corporate Information section of the Circular,
collectively and individually, accept full responsibility for the accuracy of the information given
and certify that to the best of their knowledge and belief there are no facts that have been
omitted, which would make any statement false or misleading, and that all reasonable enquiries
to ascertain such facts have been made and that the Revised Listing Particulars contains all
information required by law and the Listings Requirements.
17.16. DOCUMENTS AVAILABLE FOR INSPECTION
Documents available for inspection are set out in paragraph 26 to the Circular.
Arne H. Frandsen
5 June 2012
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APPENDIX I
EXTRACTS FROM THE ARTICLES OF INCORPORATION
Below are extracts from the Articles of Incorporation. The summary is not complete and Shareholders should
read the Articles of Incorporation for a full appreciation thereof. The Articles of Incorporation contain, inter
alia, provisions to the following effect:
1. SUBJECT TO THE PROVISIONS OF GUERNSEY LAW
(a) the Company may purchase any of its Shares whether or not they are redeemable and may pay in
respect of such purchase otherwise than out of its distributable prots or the proceeds of a fresh
issue of Shares;
(b) the Company and any of its associates may provide nancial assistance, directly or indirectly, for
the purpose of, or in connection with, the acquisition of Shares or in connection with reducing or
discharging any liability incurred in connection with the acquisition of Shares; and
(c) the Company may convert all or any of its fully paid Shares, the nominal amount of which is
expressed in a particular currency, into fully paid Shares of a nominal amount of a different currency,
the conversion being effected at the prevailing rate of exchange (calculated to not less than three
signicant gures) on the date of the resolution or on such other date as may be specied therein.
2. VARIATION OF RIGHTS, ALTERATION OF CAPITAL, AND SURRENDER OF SHARES
(a) Subject to the provisions of Guernsey Law, all or any of the rights attached to any class of shares
for the time being issued may (unless otherwise provided by the terms of issue of the shares of that
class) from time to time (whether or not the Company is being wound up) be altered or abrogated
by Special Resolution of the holders of the shares of that class provided that the rights attached
to the Management Shares cannot be amended unless a Special Resolution is also passed by the
Shareholders. At every such separate general meeting, all the provisions of the Articles of Incorporation
as to general meetings of the Company shall (with certain exceptions) mutatis mutandis apply.
(b) After the Initial Closing Date, further Shares may be issued for the purposes of raising further capital
in the Company. Further Shares, provided no Shares shall be issued at a discount to the Fair Value
per Share, shall be offered to existing Shareholders pro rata to their shareholding and to existing
Shareholders and prospective Shareholders on the same terms and conditions unless authorised in
a general meeting or the issue of Shares is for an acquisition of assets or the reduction of debt. Any
such further offering of Shares will be made at the discretion of the Directors, subject to the terms of
the Articles of Incorporation and the approval of the JSE and BSX (where necessary).
(c) The Company may:
(i) by Special Resolution cancel any Shares which at the date of the resolution have not been taken
or agreed to be taken by any Shareholder and diminish the amount of its authorised share capital
accordingly; and
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(ii) the Company may by Special Resolution reduce its share capital or any capital redemption
reserve or any share premium account in any manner subject to any authorisation and/or consent
required by Guernsey Laws provided always that such authority shall not be required to permit
the redemption of Shares out of the share premium account.
3. VOTING RIGHTS
On a show of hands every Shareholder who is present in person or by proxy at a general meeting of the
Company shall have one vote per Person, and on a poll every Shareholder who is present in person or
by proxy shall be entitled to one vote for each Share held by such Shareholder.
The Trust, as holders of the Management Shares, shall have the right to receive notice of, attend and
vote at any general meeting of the Company, provided that no Shares are in issue at such date. When
such rights exist, each holder of a Management Share who is present or by proxy at a general meeting
will have 10,000 votes in respect of each Management Share held by them.
Those individuals who are Directors, executives/Partners of the Investment Manager, or both, are
precluded from voting as Shareholders on any proposal in relation to the Investment Management
Agreement, subsequent to the conclusion thereof by the Company.
4. DIRECTORS
(a) Unless otherwise approved by Shareholders in general meeting by Ordinary Resolution, the number
of Directors (not including alternate Directors) will be not less than four and not more than ten.
Amajority of Directors must not be resident either in the United Kingdom or in South Africa.
(b) The Directors have the power to elect a Chairman who will hold ofce only for the duration of the
meeting at which he was elected.
(c) No shareholding qualication for Directors is required.
(d) Shareholders may by Special Resolution appoint a person to be a Director or remove any Director
from ofce.
(e) Without prejudice to the power of the Company in general meeting, in pursuance of any of the
Articles of Incorporation to appoint any person to be a Director and subject to Guernsey Law, the
Directors have the power to appoint any person to be a Director to ll a casual vacancy. Any Director
so appointed by the Directors shall hold ofce only until the next following annual general meeting of
the Company and shall then be eligible for re-election.
(f) No person other than a Director retiring at an annual general meeting may be appointed or re-
appointed as a Director at a general meeting unless no less than ten nor more than 35 clear Business
Days before such meeting, notice executed by a Shareholder qualied to vote at the meeting (not
being the person to be proposed), has been given to the secretary of the Company of the intention
to propose that person for appointment or re-appointment together with notice executed by that
Person of his willingness to be appointed or re-appointed.
(g) At each Annual General Meeting, 1/3 (one-third) of the Directors, excluding the Executive Directors
shall retire from ofce. Directors subject to retire by rotation may offer themselves up for re-election.
The period of ofce for Executive Directors shall be subject to and determined by the terms of their
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employment. The Company may, by Special Resolution, remove any Director before the expiration of
his period of ofce, and may by Special Resolution, elect another person as Director. The Company
may, by Special resolution in general meeting increase (or reduce, but not below four), the number of
Directors and may also determine in which manner or rotation such increased (or reduced) number
is to go out of ofce.
(h) A Director who to his knowledge is in any way directly or indirectly interested in a contract or
arrangement or proposed contract or arrangement with the Company shall disclose the nature of
his interest at a meeting of the Board. In the case of a proposed contract or arrangement such
disclosure shall be made at the meeting of the Board at which the question of entering into the
contract or arrangement is rst taken into consideration or, if the Director was not at the date of
that meeting interested in the proposed contract or arrangement, at the next meeting of the Board
held after he became so interested. In a case where the Director becomes interested in a proposed
contract or arrangement after it is made, disclosure shall be made at the rst meeting of the Board
held after the Director becomes so interested. For the purpose of the foregoing a general notice in
writing given to the Board by such Director to the effect that he is a member of a specied company
and/or entity and is to be regarded as interested in any proposed contract or arrangement which
may after the date of the notice be made with that company and/or entity shall be deemed to be a
sufcient disclosure of interest provided that it is given at a meeting of the Board or the Director takes
reasonable steps to ensure that it is raised and read at the next meeting of the Board after it is given.
(i) A Director may not vote (but may in accordance with the Articles of Incorporation be counted in the
quorum) in respect of any resolution of the Directors or subcommittee of the Directors concerning a
proposed contract, arrangement, transaction or proposal to which the Company is or is to be a party
and in which he has an interest which (together with any interest of associates) is, to his knowledge,
a material interest (otherwise than by virtue of his interest in Shares or debentures or other securities
of or otherwise in or through the Company) but, in the absence of some other material interest than is
mentioned below, this prohibition does not apply to a resolution concerning any of the following matters:
(i) providing a guarantee, security or indemnity in respect of money lent or obligations incurred by
the Director or any other person at the request of or for the benet of the Company or any of its
subsidiaries;
(ii) providing a guarantee, security or indemnity by the Director to a third party in respect of a debt
or obligation of the Company or any of its subsidiaries for which the Director has assumed
responsibility in whole or in part, either alone or jointly with others, under a guarantee or indemnity
or by the giving of security;
(iii) a proposed contract, arrangement, transaction or proposal concerning an offer of Shares,
debentures or other securities of or by the Company or any of its subsidiaries for subscription or
purchase, in which offer the Director is or may be entitled to participate as a Shareholder or in the
underwriting or sub-underwriting of which the Director is to participate;
(iv) a proposed contract, arrangement, transaction or proposal to which the Company is or is to be a
party concerning another company (including a subsidiary of the company) in which the Director
(and any associate) is interested directly or indirectly and whether as an ofcer, shareholder,
creditor or otherwise, provided that the Director has disclosed his interest in such proposed
contract, arrangement, transaction or proposal in accordance with subparagraph (1);
155
(v) a proposed contract, arrangement, transaction or proposal concerning the adoption, modication
or operation of a superannuation fund or retirement benets scheme for the benet of employees
of the Company or any of its subsidiaries under which the Director may benet and which has
been approved by or is subject to and conditional upon approval by the Board of Inland Revenue
for taxation purposes; and
(vi) a proposed contract, arrangement, transaction or proposal concerning the purchase or
maintenance of any insurance policy for the benet of Directors or for the benet of persons
including Directors.
(vii) (1) For the purposes of the Articles of Incorporation a person shall be treated as being connected
with a Director if that person is:
(a) a spouse, child (under the age of eighteen) or step child (under the age of eighteen) of the
Director; or
(b) an associated body corporate which is a company and/or entity in which the Director
alone, or with connected persons, is directly or indirectly benecially interested in 20%
or more of the nominal value of the equity share capital, or is entitled (alone or with
connected persons) to exercise or control the exercise of more than 20% of the voting
power at general meetings; or
(c) a trustee (acting in that capacity) of any trust, the beneciaries of which include the
Director or persons falling within paragraphs (a) or (b) above excluding trustees of an
employees share scheme or pension scheme; or
(d) a partner and/or member (acting in that capacity) of the Director or persons in categories
(a) to (c) above.
(2) A Director, notwithstanding his interest, may be counted in the quorum present at any meeting
whereat he or any other Director is appointed to hold any such ofce under the Company, or
whereat the terms of any such appointment are arranged or whereat any contract in which
he is interested is considered, and he may vote on any such appointment or arrangement
other than his own appointment or the arrangement of the terms thereof. Where proposals
are under consideration concerning the appointment (including without limitation xing or
varying the terms of appointment or its termination) of 2 or more Directors to ofces with the
Company or a company in which the Company is interested, such proposals shall be divided
and a separate resolution considered in relation to each Director. In such case each of the
Directors concerned (if not otherwise debarred from voting under these provisions) is entitled
to vote (and be counted in the quorum) in respect of each resolution except that concerning
his own appointment.
(3) A Director may hold any other ofce under the Company (other than Auditor) in conjunction
with his ofce of Director for such period and on such terms (as to remuneration and
otherwise) as the Board may determine and no Director or intending Director or his rm
shall be disqualied by his ofce from contracting with the Company either with regard to
his tenure of any such other ofce or as vendor purchaser or otherwise nor shall any such
proposed contract or arrangement entered into by or on behalf of the Company in which any
Director or rm and/or entity is in any way interested be liable to be avoided nor shall any
156
Director so contracting or being so interested be liable to account to the Company for any
prots realised by any such proposed contract or arrangement by reason of such Director
holding that ofce or of the duciary relationship thereby established.
(4) Any Director may act by himself or his rm and/or entity in a professional capacity for the
Company (other than Auditor) and he or his rm and/or entity shall be entitled to remuneration
for professional services as if he were not a Director.
(5) Any Director may continue to be or become a director, managing director, manager or other
ofcer or Shareholder of any company which promotes or is promoted by the Company
or which is interested in the Company or in which the Company may be interested, and
unless otherwise agreed, any such Director shall not be accountable to the Company for any
remuneration or other benets received by him as a director, managing director, manager
or other ofcer or Shareholder of any such company. The Directors may exercise the voting
power conferred by the shares in any other company held or owned by the Company or
exercisable by them as directors of such other company, in such manner in all respects as
they think t (including the exercise thereof in favour of any resolution appointing themselves
or any of them directors, managing directors, managers or other ofcers of such company,
or voting or providing for the payment of remuneration to themselves as directors, managing
directors, managers or other ofcers of such company) and any Director of the Company may
vote in favour of the exercise of such voting rights in the manner aforesaid, notwithstanding
that he may be or be about to be appointed a director, managing director, manager or other
ofcer of such other company, and as such is or may become interested in the exercise of
such voting rights in the manner aforesaid.
(6) If any question arises at any meeting as to the materiality of the Directors interest or as to
the entitlement of any Director to vote and such question is not resolved by his voluntarily
agreeing to abstain from voting, such question shall be referred to the Chairman of the
meeting and his ruling in relation to any other Director shall be nal and conclusive except in
a case where the nature or extent of the interests of the Director concerned have not been
fairly disclosed.
(7) The Company may by Ordinary Resolution suspend or relax the provisions described above
to any extent or ratify any transaction not duly authorised by reason of a contravention of any
such provision.
5. BORROWING POWERS OF THE COMPANY
The borrowing powers of the Company and the powers of the Company to mortgage or encumber its
Investments and/or assets or any part thereof and to issue debentures or debenture stock (whether
secured or unsecured), whether outright or as security for any debt, liability or obligation of the Company
or any third party, shall be limited to 30% of the value of the Companys assets.
6. DIVIDENDS/REDEMPTIONS/RETURNS TO SHAREHOLDERS
(a) Subject to Guernsey Law and as set out below, the Company in general meeting may from time to
time declare dividends but no dividend may exceed the amount recommended by the Directors.
During the Investment Period, no dividends may be declared or paid other than from the prots or
157
gains resulting from the Realisation of Investments and thereafter no dividends may be declared or
paid other than from Aggregate Proceeds. Any dividends paid will be paid in accordance with the
policy of the BSX and those of the Listings Requirements.
(b) No unclaimed dividends will bear interest against the Company. Any dividend unclaimed will be
transferred to a trust which will hold it until the earlier of the date on which such dividends are claimed
by the relevant Shareholder or three years from the date on which the Company attempted to pay
such dividend to the Shareholder. If dividends are not claimed before the expiry of the aforementioned
period, such dividends will be paid to a charitable institution. The Shareholder will pay administration
charges for the service of 0.1% per annum of the amount of such unclaimed dividend.
(c) The Directors may, before recommending any dividend, set aside out of the prots of the Company
such sums as they deem appropriate as reserves which will, at the discretion of the Directors, be
applicable for any purpose to which the Aggregate Proceeds of the Company may be properly
applied and pending such application may, also at such discretion, either be employed in the
business of the Company or, during the Investment Period, be invested in such Investments as the
Directors may from time to time deem t. The Directors also, at their discretion, and subject to 6(d)
below, may without placing the same to reserve, carry forward any prots which they deem prudent
not to distribute.
(d) Post the Investment Period, unless otherwise resolved by Special Resolution and with the prior
written consent of the Investment Manager, the Company is obliged to Distribute all Aggregate
Proceeds to Shareholders within 30 Business Days of the receipt of such Aggregate Proceeds,
whether through Distributions, the redemption of Shares or otherwise.
7. RIGHTS ON A WINDING-UP
Under Guernsey Law the Company can be wound up at any time as provided for by those Laws. In
particular, the Company can be wound up by way of a Special Resolution at an extraordinary general
meeting duly convened by the Directors.
In the event of the Company being wound up:
(a) the liquidator will apply the assets of the Company, subject to the provisions of the Laws, in satisfaction
of:
(i) creditors claims;
(ii) settlement of the Fair Value per Share of the Shares, less any costs associated with such
liquidation;
(iii) settlement of the nominal value of the Management Shares; and
(iv) any surplus will be paid to Shareholders.
(b) the liquidator may, with sanction by Shareholders by Special Resolution, divide any part of the assets
of the Company amongst Shareholders in specie.
158
APPENDIX II
MATERIAL CONTRACTS OF THE COMPANY
1. INVESTMENT MANAGEMENT AGREEMENT
Pursuant to the Investment Management Agreement dated 4 September 2007 between the Company
and the Investment Manager, the Investment Manager has been appointed to provide the Company with
investment advisory and management services in relation to Investments falling within the Investment
Scope as described under the section headed Investment Strategy Investment Scope of the Revised
Listing Particulars. Details of the benets attributable to the Investment Manager are shown in the section
headed Expenses, Fees and Investment Managers Benets of the Revised Listing Particulars.
The Investment Manager shall not be under any liability as a consequence of any action performed by the
Investment Manager acting in good faith in accordance with the terms of the Investment Management
Agreement or any specic written request of the Company. The Investment Manager shall not be liable
to the Company for any decline in the value of the Investments or any part thereof to the extent that such
decline results from the Investment Managers implementation of any express direction of the Board or
from any Investment recommendation made by the Investment Manager acting in good faith unless such
recommendation was as a result of Cause.
The Investment Management Agreement contains certain Key Man provisions to ensure that the
Investment Manager retains its key executives with the necessary expertise and experience in order
to provide the investment advisory and management services to the Company in accordance with the
scope and terms of the Investment Management Agreement.
In summary, the Key Man provisions state that the Investment Management Agreement will be
immediately suspended for a period of up to twelve months upon the occurrence of a Key Man Event (the
Suspension Period), during which Suspension Period no acquisition or disposal of Investments may
occur but that all other obligations of the Company will continue to be met by the Company (including
the payment of the Annual Investment Managers Benet and the completion of contracts entered into
by or on behalf of the Company before entering into such Suspension Period).
Upon the occurrence of a Key Man Event, the Investment Manager will have until the end of the Suspension
Period to appoint a replacement Key Man, failing which, the Investment Period shall immediately
terminate. If the Board approves of and recommends a replacement Key Man appointment, as soon as
practicable thereafter, the Board will propose and seek Shareholders approval in general meeting by
Ordinary Resolution of such replacement Key Man. Once the replacement Key Man has been approved
by Shareholders, the Suspension Period will immediately terminate. Should the requisite Ordinary
Resolution not be passed by Shareholders or any such subsequent Ordinary Resolution proposed by
the Board during the Suspension Period for the replacement of such Key Man, the Investment Period
shall immediately terminate.
159
The Investment Management Agreement contains indemnity provisions by the Company in favour of the
Investment Manager, which are similar in all material respects with the indemnity provisions set out in the
section headed General Information Indemnities of the Revised Listing Particulars.
In addition the Investment Management Agreement may be terminated:
(a) automatically on the date of winding-up of the Company;
(b) by the Company, at any time from its commencement, by Shareholders in extraordinary general
meeting by Special Resolution if such termination is as a result of the Investment Managers Cause.
No further Annual Investment Managers Benet or Performance Incentive shall be payable on or
after the date of such termination. The termination of the Investment Management Agreement shall
not take effect until the Shareholders of the Company have by Special Resolution approved the
appointment of a replacement investment manager; and
(c) by Shareholders, at any time from its commencement, in general meeting by Ordinary Resolution, if
such termination is as a result of:
(i) Brian Gilbertson failing to devote substantially all of his professional time to the business and
affairs of the Programme; and/or
(ii) Brian Gilbertson ceasing to be an executive of the Investment Manager or its associated entities.
In the event that the Investment Management Agreement is terminated:
(a) pursuant to (a) or (c) above, the Investment Manager shall be entitled to receive 100% of any
Performance Incentive in respect of those Investments which had been made at the time of the
termination of the Investment Management Agreement; and
(b) pursuant to (b) above, the Investment Manager shall not be entitled to receive any Performance
Incentive, whether earned at the time of the termination of the Investment Management Agreement
or otherwise.
2. ADMINISTRATION AGREEMENT
Pursuant to the Administration Agreement dated 4 September 2007 between the Administrator and
the Company, the Administrator has been appointed by the Company to carry out the day-to-day
administration, secretarial and registrar functions of the Company. The Administrator is also responsible for
performing certain duties in relation to the issue, transfer and redemption of Shares and theirsettlement.
In the absence of Cause, the Administrator shall not be liable for any error of judgement or for any loss
or damage suffered by the Company, any Shareholder or the Investment Manager or otherwise arising,
directly or indirectly, as a result of or in the course of the discharge of its duties in good faith including
(but without limitation) any loss arising from anything done or omitted to be done by the Administrator in
good faith on reliance on or in accordance with the opinion or advice of the Investment Manager (or its
associated entities), the Companys legal advisors, auditors, bankers, or other competent professional
advisors, nor for any loss or damage sustained in the sale of any Investment howsoever any such loss
may have occurred. The Administrator shall not be liable for any loss or damage which may arise where
the Administrator has acted in good faith or upon any instruction or communication from the Company
or its Directors which the Administrator reasonably believes to be genuine.
160
The Administration Agreement contains an indemnity by the Company in favour of the Administrator,
which are similar in all material respects with the indemnity provisions set out in the section headed
General Information Indemnities of the Revised Listing Particulars.
The Administrator shall not be responsible for any loss or damage to the Company or for any failure to
full its duties if such loss, damage or failure was caused by or directly or indirectly due to war, damage,
enemy action, the act of any Government or other competent authority, riot, civil commotion, rebellion,
storm, tempest, accident, re, strike, lockout or other cause whether similar or not beyond the control of
the Administrator.
Either the Administrator or the Company shall be entitled to terminate the Administration Agreement
by giving not less than six months notice in writing to the other party provided that the Administration
Agreement may be terminated forthwith upon:
(a) the commencement of winding-up proceedings in respect of either party (except for a summary
winding-up for the purpose of reconstruction or amalgamation upon terms previously approved by
the parties in writing), or following any other event of bankruptcy, dsastre, or any event of insolvency
with respect to the Administrator or the Company or other similar or analogous procedure or step
has been taken in any jurisdiction in relation to the Administrator or the Company; or
(b) the Administrator ceasing to be qualied to act as such pursuant to the Articles of Incorporation or
ceases to be licensed under the Protection of Investors (Bailiwick of Guernsey) Law, 1987; or
(c) either party committing any material breach of its obligations under the Administration Agreement
and (if such breach shall be capable of remedy) shall fail within 30 days of receipt of notice in writing
served by the Administrator or the Company on the other party concerned requiring it to do so, to
remedy such breach.
161
APPENDIX III
DIRECTORS INTERESTS
Other directorships of the Directors and the executives and/or Partners of the Investment Manager held
currently and during the previous ve year period, from the date of the Revised Listing Particulars are set out
in the table below:
Name Directorship/partnerships Country
South African
registration number Status
Brian Gilbertson Bakgatla Pallinghurst JV (Proprietary) Limited South Africa 2007/030554/07 Current
EMG Iron Ore HC, LLC USA n/a Current
F&W Properties (Proprietary) Limited South Africa 1949/032654/07 Current
Faberg Limited Cayman Islands n/a Current
Jupiter Mines Limited Australia n/a Current
Mean Variance Portfolios (Proprietary) Limited South Africa 1979/002864/07 Current
Pallinghurst (Cayman) General Partner LP (GP) Limited Cayman Islands n/a Current
Pallinghurst (Cayman) Founder L.P. (Partner) Cayman Islands n/a Current
Pallinghurst (Cayman) Founder II L.P. (partner) Cayman Islands n/a Current
Pallinghurst (Cayman) GP L.P. (Partner) Cayman Islands n/a Current
Pallinghurst Advisors LLP (Partner) United Kingdom n/a Current
Pallinghurst Founder GP Limited Cayman Islands n/a Current
Pallinghurst Resources (Guernsey) GP Limited Guernsey n/a Current
Pallinghurst-Utima (Cayman) Limited Cayman Islands n/a Current
Platmin Limited Guernsey
1
n/a Current
Richtrau No 123 (Proprietary) Limited South Africa 2006/017346/07 Current
Renova Feeder LP (GP) Limited Cayman Islands n/a Current
Tshipi Ntle Manganese Mining (Proprietary) Limited South Africa 2008/003117/07 Current
Woolston View Properties (Proprietary) Limited South Africa 1988/003448/07 Current
Arne H. Frandsen Bakgatla Pallinghurst JV (Proprietary) Limited South Africa 2007/030554/07 Current
Born Free Investments 330 (Proprietary) Limited South Africa 2005/005075/07 Current
Clidet No 832 (Proprietary) Limited South Africa 2008/011497/07 Current
Dutch Investments (Lux) S. r.l. Luxembourg n/a Current
Faberg Conduit Limited Cayman Islands n/a Current
Faberg S. r.l. Luxembourg n/a Current
Itereleng Bakgatla Minerals Resource (Proprietary) Limited South Africa 2003/003721/07 Current
Moepi Group (Proprietary) Limited South Africa 2001/024438/07 Current
Moepi Platinum (Proprietary) Limited South Africa 2005/044235/07 Current
Moepi Uranium (Proprietary) Limited South Africa 2007/003718/07 Current
Newshelf No. 1101 (Proprietary) Limited South Africa 2010/018827/07 Current
Orkid S. r.l. Luxembourg n/a Current
Osier Corporation Limited Cyprus n/a Current
Pallinghurst (Cayman) Founder II L.P. (Partner) Cayman Islands n/a Current
Pallinghurst (Cayman) Founder Limited Cayman Islands n/a Current
Pallinghurst (Cayman) GP Limited Cayman Islands n/a Current
Pallinghurst Advisors (Proprietary) Limited South Africa 2009/005781/07 Current
Pallinghurst Consolidated (Cayman) Limited Cayman Islands n/a Current
Pallinghurst Investor Consortium (Proprietary) Limited South Africa 2007/030604/07 Current
162
South African
Pallinghurst Investor Consortium (Lux) S. r.l. Luxembourg n/a Current
Pallinghurst Investor Consortium II (Lux) S. r.l. Luxembourg n/a Current
Pallinghurst Ivy Lane Capital Limited (formerly Ivy Lane
Capital Limited) Mauritius n/a Current
Pallinghurst Kalahari (Mauritius) Limited
2
Mauritius n/a Current
2
Pallinghurst Kalahari Limited Cayman Islands n/a Current
Platmin Limited Guernsey
1
n/a Current
Platmin Resources Limited BVI n/a Current
Platmin South Africa (Proprietary) Limited (formerly Boynton
Investments (Proprietary) Limited) South Africa 2000/002572/07 Current
Richtrau No 123 (Proprietary) Limited South Africa 2006/017346/07 Current
Pallinghurst Investor (Dutch) B.V. Netherlands n/a Resigned
Pallinghurst Platinum (Mauritius) Limited Mauritius n/a Resigned
Pallinghurst Resources Australia Limited Australia n/a Resigned
Rox Conduit Limited Cayman Islands n/a Resigned
Rox Limited Cayman Islands n/a Resigned
Tshipi Ntle Manganese Mining (Proprietary) Limited South Africa 2008/003117/07 Resigned
Andrew Willis 27 Belgrave Road Limited United Kingdom n/a Current
Andrew Willis Limited New Zealand n/a Current
Aquacorp Limited New Zealand n/a Current
Dutch Investments (Lux) S. r.l. Luxembourg n/a Current
Faberg Services Limited United Kingdom n/a Current
Freedommakers Limited New Zealand n/a Current
Itereleng Bakgatla Minerals Resource (Proprietary) Limited South Africa 2003/003721/07 Current
Moepi Group (Proprietary) Limited South Africa 2001/024438/07 Current
Moepi Platinum (Proprietary) Limited South Africa 2005/044235/07 Current
Moepi Uranium (Proprietary) Limited South Africa 2007/003718/07 Current
Pallinghurst Investor Consortium II (Lux) S. r.l. Luxembourg n/a Current
Pallinghurst Ivy Lane Capital Limited (formerly Ivy Lane
Capital Limited) Mauritius n/a Current
Pallinghurst Kalahari (Mauritius) Limited Mauritius n/a Resigned
Pallinghurst Platinum (Mauritius) Limited Mauritius n/a Resigned
Stuart Platt-Ransom British Capital Finance Limited Guernsey n/a Current
British Capital Property Investments Limited Guernsey n/a Current
British Capital Property Limited Guernsey n/a Current
Collins International Limited Guernsey n/a Current
Cornerstone Asset Managers Limited Guernsey n/a Current
Laub Investment Management Limited Guernsey n/a Current
Legis Administration (PTY) Limited South Africa n/a Current
Legis BVI Limited Guernsey n/a Current
Legis Corporate Services Limited Guernsey n/a Current
Legis Fund Services (Jersey) Limited Jersey n/a Current
Legis Fund Services Limited Guernsey n/a Current
Legis Group (BVI) Limited Guernsey n/a Current
Legis Group Holdings Limited Guernsey n/a Current
Legis Group Limited Guernsey n/a Current
Legis Limited Guernsey n/a Current
Legis Tax Services Limited Guernsey n/a Current
Longterm Performance Holding Limited Guernsey n/a Current
Lookout Investments Limited Guernsey n/a Current
163
South African
Nayamsa Holding Limited Guernsey n/a Current
NBAD Fund Managers (Guernsey) Limited Guernsey n/a Current
NBAD Global Growth Fund PCC Limited Guernsey n/a Current
New Street Procurement Limited Guernsey n/a Current
PSG Fund Management (C.I) Limited Guernsey n/a Current
PSG Mutual Fund PCC Limited Guernsey n/a Current
Seven Dials European Property Fund Limited (Alternate Director) Guernsey n/a Current
Seven Dials Guernsey Limited (Alternate Director) Guernsey n/a Current
Doric Limited Guernsey n/a Resigned
Faberg Limited Cayman Islands n/a Resigned
Fifth Ovalap Limited Guernsey n/a Resigned
First Ovalap Limited Guernsey n/a Resigned
Fourth Ovalap Limited Guernsey n/a Resigned
Global Phoenix Investments Limited Guernsey n/a Resigned
Ionic Limited Guernsey n/a Resigned
Lapco Limited Guernsey n/a Resigned
Legis (MRL) Limited Guernsey n/a Resigned
Legis Compliance Services Limited (formerly Legis
Insurance Services Limited) Guernsey n/a Resigned
Legis Maritime Services Limited Guernsey n/a Resigned
Legis Nominees Limited Guernsey n/a Resigned
Legis Trust Limited Guernsey n/a Resigned
Lesing Tag Limited Guernsey n/a Resigned
Nomos Trustees Limited Guernsey n/a Resigned
Ovaco Limited Guernsey n/a Resigned
Ovalap Nominees Limited Guernsey n/a Resigned
Procurement 2010 Limited Guernsey n/a Resigned
Second Ovalap Limited Guernsey n/a Resigned
Sixth Ovalap Limited Guernsey n/a Resigned
Third Ovalap Limited Guernsey n/a Resigned
Lesing P.E. Limited Guernsey n/a Resigned
Clive Harris 23 Bellevue Road Cayman Islands n/a Current
5 Nicosia Road Cayman Islands n/a Current
ABBA Management Cayman Limited Cayman Islands n/a Current
ABBA Multistrategy Partners Cayman Islands n/a Current
Alpha Strategies Fund Inc Cayman Islands n/a Current
Arrowwood Limited Bahamas n/a Current
Blue Heron Investments Limited BVI n/a Current
Calypso Asian Fund Cayman Islands n/a Current
Cobalt Hill Capital Limited BVI n/a Current
Copernic Investment SPC Limited BVI n/a Current
Corail Management Limited BVI n/a Current
Dune Limited Cayman Islands n/a Current
EG Capital Market Fund (SPC) Limited Cayman Islands n/a Current
EG Strategic Fund (SPC) Limited Cayman Islands n/a Current
Enzian Wachstum Aktiv Cayman Islands n/a Current
ESM Fund Limited BVI n/a Current
Euboulos Fund Limited BVI n/a Current
EuroCapital Fund Cayman Islands n/a Current
Faberg Hospitality Limited BVI n/a Current
Faberg Inc Delaware n/a Current
Faberg Suisse SA Switzerland n/a Current
164
South African
FCM Absolute Return Fund Cayman Islands n/a Current
Fidam Global Fund SPC Limited BVI n/a Current
Fides Asset Management Limited Cayman Islands n/a Current
Frey Multi Strategy (Delaware) Fund GP Limited Cayman Islands n/a Current
Frey Multi-Strategy (Cayman) Fund Cayman Islands n/a Current
Fundamental Capital Management Limited Cayman Islands n/a Current
Gavea Fund Limited Cayman Islands n/a Current
Gavea Master Fund Limited Cayman Islands n/a Current
Gavea Vertex Fund Limited Cayman Islands n/a Current
GEBEX Fund Limited Cayman Islands n/a Current
GH Holdings Limited Cayman Islands n/a Current
Giano Capital Limited Cayman Islands n/a Current
Great Titans Holdings Limited Bahamas n/a Current
Halberdier Fourteen Cayman Islands n/a Current
HB Asia Holdings Limited Cayman Islands n/a Current
HB Credit Opportunities Limited Cayman Islands n/a Current
HB Commodity Strategies Fund Limited Cayman Islands n/a Current
HB Leveraged Loan Partners 2010 Offshore Holdings Limited Cayman Islands n/a Current
HB Leveraged Loan Partners Offshore Holdings Limited Cayman Islands n/a Current
HB Multi-Strategy Holdings Limited Cayman Islands n/a Current
HB/SA Limited Cayman Islands n/a Current
HCC Feeder Fund Limited Cayman Islands n/a Current
Henderson Court Cayman Islands n/a Current
Highbridge Capital Corporation Cayman Islands n/a Current
Highbridge Capital Institutional Fund Limited Cayman Islands n/a Current
Highbridge G.P. Limited Cayman Islands n/a Current
Highbridge G.P. LLC Delaware n/a Current
Highbridge Global Macro Strategies Fund Limited Cayman Islands n/a Current
Highbridge GP II Limited Cayman Islands n/a Current
Highbridge Long/Short Equity Fund Limited Cayman Islands n/a Current
Highbridge Long/Short Institutional Fund Limited Cayman Islands n/a Current
Highbridge Quantitative Commodities Fund Limited Cayman Islands n/a Current
Highbridge Statistical Opportunities Fund Limited Cayman Islands n/a Current
HPS Credit Opportunities Fund Limited Cayman Islands n/a Current
Index Partners Inc Cayman Islands n/a Current
Jade Limited Cayman Islands n/a Current
Jemekk Long/Short Canada Limited Cayman Islands n/a Current
Jemekk Total Return Canada Limited Cayman Islands n/a Current
JPMorgan Fixed Income Opportunity Fund Limited Cayman Islands n/a Current
JPMorgan Fixed Income Opportunity Institutional Fund Limited Cayman Islands n/a Current
JSM IndoChina Limited Cayman Islands n/a Current
JSM IndoChina Properties Limited Cayman Islands n/a Current
LDH Energy Opportunities Fund Limited Cayman Islands n/a Current
LDHE GP LLC Delaware n/a Current
LDHL GP Limited Cayman Islands n/a Current
Marathon Asset Management (Cayman) Limited Cayman Islands n/a Current
Marathon European Hedge Fund Limited Cayman Islands n/a Current
Marathon Fulcrum Japan Fund Limited Cayman Islands n/a Current
Marathon Vertex Japan Fund Limited Cayman Islands n/a Current
Modular Capital One (MC-1) Cayman Islands n/a Current
Multi-Horizon Management Limited Cayman Islands n/a Current
Odey European Inc Cayman Islands n/a Current
OEI Mac Inc Cayman Islands n/a Current
165
South African
Pendragon Field Holdings Limited Cayman Islands n/a Current
Phoenixinvest Pacic Fund Cayman Islands n/a Current
Prism Asia Fund BVI n/a Current
Prism Select Fund BVI n/a Current
Rox Conduit Limited Cayman Islands n/a Current
Rox Limited Cayman Islands n/a Current
Swansley Holdings Limited Bahamas n/a Current
The Carrousel Fund Limited Cayman Islands n/a Current
The Daytona Fund Cayman Islands n/a Current
The Dynamo Fund Cayman Islands n/a Current
The Eurasia Fund Cayman Islands n/a Current
The Packard Fund Limited Bahamas n/a Current
Tintagel Financial Limited Cayman Islands n/a Current
TT Financials Long Short Alpha Fund Limited Cayman Islands n/a Current
TT Financials Long Short Fund Limited Cayman Islands n/a Current
TT International Fund BVI n/a Current
TT International Hedge Fund Feeder SPC Cayman Islands n/a Current
TT International Hedge Funds SPC Cayman Islands n/a Current
TT Mid Cap Europe Long Short Alpha Fund Limited Cayman Islands n/a Current
TT Mid Cap Europe Long Short Fund Limited Cayman Islands n/a Current
Woodeld Hedge Limited BVI n/a Current
ZAM Asset Finance Fund Limited Cayman Islands n/a Current
ZAM Specialist Opportunities Fund Limited Cayman Islands n/a Current
ABBA Partners Cayman Islands n/a Resigned
Adept Capital Partners Fund SPC Limited BVI n/a Resigned
AlphaWorks Long/Short Opportunities Limited Cayman Islands n/a Resigned
Asian Special Opportunities Fund Cayman Islands n/a Resigned
Atlas Insurance Management (Cayman) Limited Cayman Islands n/a Resigned
Cape Point Master Fund Limited Cayman Islands n/a Resigned
Cape Point Partners Offshore Fund Limited Cayman Islands n/a Resigned
Constellation Capital Limited Cayman Islands n/a Resigned
Energy Capital Investments Limited Cayman Islands n/a Resigned
Energy Capital Management Limited Cayman Islands n/a Resigned
FFTW Global Credit Fund SPC Cayman Islands n/a Resigned
FFTW US LIBOR Plus Fund Limited Cayman Islands n/a Resigned
Fides Absolute Appreciation Fund Limited Cayman Islands n/a Resigned
Fides Capital Growth Fund Limited Cayman Islands n/a Resigned
Fidiciary Management Services Limited Cayman Islands n/a Resigned
FIOF Japan Limited Cayman Islands n/a Resigned
Fridson Credit Strategies Fund LLC Cayman Islands n/a Resigned
Fridson Credit Strategies Fund Limited Cayman Islands n/a Resigned
Fridson Credit Strategies GP Limited Cayman Islands n/a Resigned
Gavea Brasil Fund Limited Cayman Islands n/a Resigned
Gavea Brasil Master Fund Limited Cayman Islands n/a Resigned
Giano Capital (US Dollars) Limited Cayman Islands n/a Resigned
Greater China Special Value Fund Cayman Islands n/a Resigned
Halberdier Alius Fund Cayman Islands n/a Resigned
Halberdier Alius Portfolio Cayman Islands n/a Resigned
Halberdier Fund Limited Cayman Islands n/a Resigned
Halberdier Portfolio Limited Cayman Islands n/a Resigned
HB Commodity Strategies Fund Limited Cayman Islands n/a Resigned
Highbridge Asia Opportunities Fund Limited Cayman Islands n/a Resigned
166
South African
Highbridge Asia Opportunities Institutional Fund Limited Cayman Islands n/a Resigned
Highbridge Convertible Arbitrage Fund Limited Cayman Islands n/a Resigned
Highbridge Convertible Arbitrage Opportunities Fund Limited Cayman Islands n/a Resigned
Highbridge Convertible Opportunities Fund Limited Cayman Islands n/a Resigned
Highbridge Event Driven Opportunities Fund Limited Cayman Islands n/a Resigned
Highbridge Event Driven Opportunities MPL I Limited Cayman Islands n/a Resigned
Highbridge Event Driven/Relative Value Fund Limited Cayman Islands n/a Resigned
Highbridge Statistically Enhanced Equity Portfolio Europe
Limited Cayman Islands n/a Resigned
Highbridge Statistically Enhanced Equity Portfolio Japan
Highbridge Statistically Enhanced Equity Portfolio US
Highview Global Macro Limited Cayman Islands n/a Resigned
HSE Partners Limited Cayman Islands n/a Resigned
Innovation Fund Limited Cayman Islands n/a Resigned
Innovation Management Limited Cayman Islands n/a Resigned
Intercontinental Diversied Corporation Cayman Islands n/a Resigned
LDH Energy Funds Trading Limited Cayman Islands n/a Resigned
Malbec Emerging Markets Opportunities Fund LLC Delaware n/a Resigned
Malbec Emerging Markets Opportunities Fund SPC Cayman Islands n/a Resigned
Malbec Emerging Markets Opportunities Fund GP Limited Cayman Islands n/a Resigned
Malbec Quantys Fund LLC Delaware n/a Resigned
Malbec Quantys Fund SPC Cayman Islands n/a Resigned
Malbec Quantys Fund GP Limited Cayman Islands n/a Resigned
NinePeaks Multi-Strategy Fund Limited Cayman Islands n/a Resigned
Oasis Funds SPC Cayman Islands n/a Resigned
Oceana Assets Corporation BVI n/a Resigned
Odey Asia Cayman Islands n/a Resigned
Odey Capital Strategies Cayman Islands n/a Resigned
Odey Japan & General Inc Cayman Islands n/a Resigned
Odey Opportunity Fund Cayman Islands n/a Resigned
Odey Tactical Advantage Cayman Islands n/a Resigned
Odey Treasury Fund Cayman Islands n/a Resigned
Petrofund S.A. Luxembourg n/a Resigned
Riverview Focus Fund (Cayman) Limited Cayman Islands n/a Resigned
Riverview Multi Series Fund SPC Limited Cayman Islands n/a Resigned
Riverview Multi Series International Fund SPC Limited Cayman Islands n/a Resigned
Sheerwater Limited Cayman Islands n/a Resigned
Sword Fund Limited Cayman Islands n/a Resigned
Texel Capital Management Limited Cayman Islands n/a Resigned
Texel Macro Fund Limited Cayman Islands n/a Resigned
Texel Macro Master Fund Limited Cayman Islands n/a Resigned
The Kintaro Fund Cayman Islands n/a Resigned
The Milestone Offshore Funds Cayman Islands n/a Resigned
TT Asian Opportunities Alpha Fund Limited Cayman Islands n/a Resigned
TT Asian Opportunities Fund Limited Cayman Islands n/a Resigned
TT Europe LiquidFund Inc Cayman Islands n/a Resigned
TT Europe LiquidFunds Limited Cayman Islands n/a Resigned
TT Event Driven Alpha Fund Limited Cayman Islands n/a Resigned
TT Event Driven Fund Limited Cayman Islands n/a Resigned
TT Long Short Europe Alpha Fund Limited Cayman Islands n/a Resigned
TT Long Short Europe Fund Limited Cayman Islands n/a Resigned
TT Long Short Japan Alpha Fund Limited Cayman Islands n/a Resigned
TT Long Short Japan Fund Limited Cayman Islands n/a Resigned
ZAM Cayman Limited Cayman Islands n/a Resigned
167
South African
Martin Tolcher AB Alternative Strategies Fund PCC Limited Guernsey n/a Current
AB Fund Managers (Guernsey) Limited Guernsey n/a Current
AB International Fund PCC Limited Guernsey n/a Current
Core Funds PCC Limited Guernsey n/a Current
Damille Investments II Limited Guernsey n/a Current
Darwin Finance (Guernsey) Limited Guernsey n/a Current
Darwin Property Investment Management (Guernsey) Limited Guernsey n/a Current
Darwin West Country (Guernsey) Limited Guernsey n/a Current
IIAB PCC Limited Guernsey n/a Current
KDC Properties Limited Guernsey n/a Current
Longcross Property Investment Fund Limited Guernsey n/a Current
St Peter Port Investments (Guernsey) Limited Guernsey n/a Current
St Peter Port Investments PCC Limited Guernsey n/a Current
Blue Skye GP Limited Guernsey n/a Resigned
British Capital Finance Limited Guernsey n/a Resigned
British Capital Property Investments Limited Guernsey n/a Resigned
British Capital Property Limited Guernsey n/a Resigned
Catagnana Limited Guernsey n/a Resigned
Collins International Limited Guernsey n/a Resigned
Cornerstone Asset Managers Limited Guernsey n/a Resigned
D&G Investment Management Limited Guernsey n/a Resigned
Eagle Venture Partners Limited Guernsey n/a Resigned
Global Phoenix Investments Limited Guernsey n/a Resigned
Global Specialised Opportunities 1 Limited Guernsey n/a Resigned
In Vivo Capital GP Limited Guernsey n/a Resigned
Japan Special Opportunities Limited Guernsey n/a Resigned
Legis Fund Services (Jersey) Limited Jersey n/a Resigned
Legis Fund Services Limited Guernsey n/a Resigned
Lookout Investments Limited Guernsey n/a Resigned
Louis Group European Property Limited Guernsey n/a Resigned
MENA Capital Management Limited Guernsey n/a Resigned
NBAD Fund Managers (Guernsey) Limited Guernsey n/a Resigned
NBAD Global Growth Fund PCC Limited Guernsey n/a Resigned
Nevsky Property Asset Management Limited Guernsey n/a Resigned
Pure Capital PCC Limited Guernsey n/a Resigned
Patricia White British Capital Finance Limited Guernsey n/a Current
British Capital Property Investments Limited Guernsey n/a Current
British Capital Property Limited Guernsey n/a Current
Cornerstone Asset Managers Limited Guernsey n/a Current
Legis Fund Services (Jersey) Limited Jersey n/a Current
Legis Fund Services Limited Guernsey n/a Current
Lookout Investments Limited Guernsey n/a Current
NBAD Global Growth Fund PCC Limited Guernsey n/a Current
NBAD Fund Managers (Guernsey) Limited Guernsey n/a Current
Pallinghurst Resources (Guernsey) GP Limited
3
Guernsey n/a Current
Seven Dials Guernsey Limited Guernsey n/a Current
Seven Dials European Property Fund Limited Guernsey n/a Current
Blue Skye GP Limited Guernsey n/a Resigned
LCS Limited Isle of Man n/a Resigned
Brian OMahoney
3
168
South African
Legis Tax Services Limited Guernsey n/a Current
Collins International Limited Guernsey n/a Current
Global Specialised Opportunities 1 Limited Guernsey n/a Current
Eagle Venture Partners Limited (Alternate Director) Guernsey n/a Current
Pallinghurst Resources (Guernsey) GP Limited (Alternate
Director) Guernsey n/a Current
Assembly Developments Limited Guernsey n/a Current
Assembly Holdings Limited Guernsey n/a Current
Greentube Alderney Limited Alderney n/a Current
Guernsey RFC Guernsey n/a Current
Praetorian Resources (GP) Limited Guernsey n/a Current
Guernsey Nominees Limited Guernsey n/a Resigned
Kleinwort Benson (Channel Islands) Limited Guernsey n/a Resigned
Kleinwort Benson (Guernsey) Services Limited Guernsey n/a Resigned
Kleinwort Benson (Jersey) Services Limited Jersey n/a Resigned
Kleinwort Benson (Guernsey) Corporate Services Limited Guernsey n/a Resigned
LCS Limited Isle of Man n/a Resigned
Priyank Thapliyal Jupiter Kalahari (Mauritius) Limited Mauritius n/a Current
Jupiter Mines Limited Australia n/a Current
Pallinghurst Consolidated (Dutch) B.V. Netherlands n/a Current
Pallinghurst Kalahari (Mauritius) Limited Mauritius n/a Current
Pallinghurst Steel Feed (Dutch) B.V. Netherlands n/a Current
Tshipi Ntle Manganese Mining (Proprietary) Limited South Africa 2008/003117/07 Current
Sean Gilbertson Arianna Investments Limited BVI n/a Current
Gemelds plc United Kingdom n/a Current
GigaJoule Limited United Kingdom n/a Current
Hagura Mining Limited BVI n/a Current
Kagem Mining Limited Zambia n/a Current
Rox Conduit Limited Cayman Islands n/a Current
Rox Limited Cayman Islands n/a Current
Sandfontein & Houmsrivier Properties (Proprietary) Limited Namibia n/a Current
Vegagraphics (Proprietary) Limited South Africa 2004/018789/07 Current
Notes:
1
Platmin Limited migrated from Canada to Guernsey with effect from 9 December 2011.
2
Resigned as Director effective 1 July 2009, and subsequently reappointed as a Permanent Alternate on 17 July 2009.
3
Resigned as Permanent Alternate and appointed as Director on 29 February 2012
1
THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION
For use by BSX Shareholders only
FORM OF INSTRUCTION
If you are in any doubt as to what action to take in relation to this Form of Instruction, please consult your
CSDP, broker, banker, attorney, accountant or other professional advisor immediately.
This Form of Instruction should be read together with the Circular dated Monday, 2 July 2012. Words and
expressions dened in the Circular shall have the same meanings in this Form of Instruction. Letters of
Allocation are negotiable and may be traded on the JSE. Pallinghurst has issued all Rights in Dematerialised
form on the JSE. The electronic record for BSX Shareholders is being maintained by Computershare Nominees
(Proprietary) Limited, a wholly-owned subsidiary of Computershare Custodial Services (Proprietary) Limited.
Should you wish to take-up or dispose of or renounce all or part of your Rights, you MUST complete this
Form of Instruction and return it to the South African Transfer Secretaries at the address set out below. Each
alteration must be signed in full and must not merely be initialed.
A FORM OF INSTRUCTION IN RESPECT OF A LETTER OF ALLOCATION RELATING TO
THE RIGHTS OFFER
Form of Instruction issued to BSX Shareholders only
Name and address of BSX Shareholder Serial number
(1)
Enquiries in connection with
this form of instruction should
be made to the South African
Transfer Secretaries quoting the
serial number below:
Account number Number of Shares
registered in your name
at the close of business
on Friday, 29 June 2012
Number of Rights Offer
Shares to which you are
entitled:
Amount payable for
maximum number of
Rights Offer Shares at
224 cents per Rights
Offer Share:
(2) (3) R (4)
2
Acceptance of Rights in terms
of paragraph 3 of this Form of
Instruction.
Number of Rights Offer Shares
accepted:
Amount payable for the number
of Rights Offer Shares at 224
cents per Rights Offer Share:
(5) R (6)
Application for Excess Rights
Offer Shares
(to be completed by acceptors
wishing to apply for Excess Rights
Offer Shares) (the right to apply
for Excess Rights Offer Shares is
transferable upon the renunciation
of this Letter of Allocation)
Number of Excess Rights Offer
Shares subscribed for:
Amount payable for Excess
Rights Offer Shares at 224 cents
per Rights Offer Share:
(7) R (8)
EFT swift reference number
(if applicable)
Amount of cheque / banker
draft / EFT
Please note the same or
lesser number of Rights Offer
Shares as the number
mentioned in block (3)
may be accepted. (9) R (9)
Applicants telephone number (ofce hours) Signature Date
_________________________________________ __________________________ __________________________
This Form of Instruction must be completed in its entirety and returned to the South African
Transfer Secretaries:
Computershare Investor Services (Proprietary) Limited, Ground Floor, 70 Marshall Street, Johannesburg, 2001
(PO Box 61763, Marshalltown, 2107)
Telephone: (011) 370-5000
so as to reach the South African Transfer Secretaries by no later than 12h00 (South African time) on Friday,
20 July 2012.
3
2012
Last date to trade in Shares on the JSE (cum Rights Offer Entitlement) in order to
participate in the Rights Offer
Friday, 22 June
Last date to trade in Shares on the JSE for settlement by the Record Date and to
be recorded as a Shareholder
Friday, 22 June
Listing and trading of Letters of Allocation on the JSE from the commencement of
trade on
Monday, 25 June
Dematerialised JSE Shareholders accounts at their broker or CSDP credited with
their Rights Offer Entitlement
Monday, 2 July
Certicated JSE Shareholders and BSX Shareholders have their Rights Offer
Entitlement created in electronic form and held at Computershare Nominees
(Proprietary) Limited
Monday, 2 July
Last date to trade in the Letters of Allocation on the JSE for settlement by 12h00
on Friday, 20 July 2012
Friday, 13 July
Payment and Forms of Instruction to be received by the South African Transfer
Secretaries by 12h00 on
Friday, 20 July
Results of Rights Offer and basis of allocations of Excess Rights Offer Shares
released on SENS
Monday, 23 July
Expected date on which the relevant brokers or CSDPs are updated with their
Rights Offer Shares and debited with the costs of the purchase in respect of
Monday, 23 July
Dematerialised shareholders will have their accounts at their CSDP or broker
updated with any excess shares allocated and debited with the costs
Wednesday, 25 July
Refunds/cheques posted to Certicated JSE Shareholders in respect of unsuccessful
applications of Excess Rights Offer Shares
Wednesday, 25 July
Notes:
1. Dematerialised JSE Shareholders are required to notify their duly appointed broker or CSDP of their participation
in the Rights Offer in the manner and time stipulated in the custody agreement governing the relationship between
the Dematerialised JSE Shareholder and his/her broker or CSDP.
2. BSX Shareholders and Certicated JSE Shareholders must complete the relevant Form of Instruction, which
Form of Instruction, must reach the South African Transfer Secretaries in accordance with the instructions
contained therein.
3. No Shares may be Dematerialised or re-materialised from the commencement of trade on Monday, 25 June
2012 to Friday, 29 June 2012, both days inclusive.
4. No transfers of Shares between the JSE and the BSX may take place from the commencement of trade on
Monday, 25 June 2012 to Friday, 29 June 2012, both days inclusive.
5. CSDPs effect payment on a delivery of scrip versus payment method in respect of Dematerialised Shareholders.
6. Above times are South African times.
4
Dear Sir/Madam
1. RIGHTS ISSUE
Pallinghurst hereby offers to the Shareholder whose name is stated in Block (1) on page 1 of this Form
of Instruction, upon the terms and conditions stated in the Circular dated Monday, 2 July 2012 (which
shall, if in conict with the information set out in this Form of Instruction, take precedence), the rights to
subscribe for the number of Rights Offer Shares set out in Block (3) on page 1 of this Form of Instruction.
2. ACCEPTANCE
If the addressee wishes to take-up the Rights Offer Shares stated in Block (3) on page 1 of this Form of
Instruction (or any lesser number), then Blocks 5 and 6 must be completed and signed by the addressee.
The properly completed Form of Instruction, together with payment (as prescribed in the paragraph
below) must be delivered to the South African Transfer Secretaries, as follows:
Delivered (at the risk of the Posted (at the risk of the BSX
BSX Shareholder) to: Shareholder) to:
Ground Floor P O Box 61763
70 Marshall Street Marshalltown, 2107
Johannesburg, 2001
so as to reach the South African Transfer Secretaries by no later than 12h00 (South African time) on Friday,
20 July 2012.
3. PAYMENT
Payment for Rights Offer Shares taken-up may be made by cheque or bankers draft or EFT, as follows:
BY CHEQUE OR BANKERS DRAFT
A cheque (crossed not transferable and with the words or bearer deleted) or a bankers draft (drawn
on a registered bank) payable to Pallinghurst Rights Offer (BSX) for the amounts payable, in Rand,
together with a properly completed Form of Instruction, must be lodged by BSX Shareholders with the
South African Transfer Secretaries.
BY EFT
Provision has also been made for BSX Shareholders to make an EFT payment to a bank account
specically set up for these purposes. Details of the relevant bank account are as follows:
Account holder: Pallinghurst Resources Limited
Bank: Investec Bank Limited
Branch: Sandton
Branch code: 58 01 05
Account number: 3000 133 1823
Swift Code: IVESZAJJXXX
5
BSX Shareholders who elect to make payment via EFT would rst need to register their intention to make
such payment with Computershare Nominees (Proprietary) Limited by telephone on +27 11 370 5071,
for the attention of Granville Israel. Computershare Nominees (Proprietary) Limited will then provide the
BSX Shareholder with a unique reference number which will need to be used by the BSX Shareholder in
their transmission of funds to the bank account specied above.
The swift reference number for the EFT payment as obtained from the BSX Shareholders authorised
dealer, in Rand, should be noted in block (10) of this Form of Instruction.
GENERAL
Payment in accordance with the above will, once the cheque, bankers draft or EFT has been cleared for
payment, constitute an irrevocable acceptance of the Rights Offer upon the terms and conditions set out
in the Circular and in this Form of Instruction. Should any cheque, bankers draft or EFT be dishonoured
or refused, Pallinghurst, in its sole discretion, may treat the acceptance of the Form of Instruction by the
acceptor as void.
Please note that the South African Transfer Secretaries will effect delivery of Shares against payment and
should a cheque, bankers draft or valid swift reference number for the amount stipulated in block (10)
not accompany the Form of Instruction, the application will be treated as invalid.
Rights Offer Shares will be issued to BSX Shareholders in electronic form on the JSE hence the addresee
must complete the section headed Share issue instructions on page 12 of this Form of Instruction,
with details of their South African CSDP whom the appropriate number of Rights Offer Shares can be
transferred to once issued. If the addressee does not provide the requisite details for their South African
CSDP, the Rights Offer Shares will be issued in Certicated form and retained by the South African
Transfer Secretaries for transfer to the BSX, subject to Exchange Control Regulations.
Per paragraph 7 below, any payments by BSX Shareholders from off-shore funds must be made through
normal banking channels from abroad, in Rand.
4. DISPOSAL
If the Shareholder whose name appears in Block (1) on page 1 of this Form of Instruction wishes to
dispose of part or all of his Rights, then he must complete Form A of this Form of Instruction. This must
be sent to the South African Transfer Secretaries in accordance with the instructions contained therein,
to be received by no later than 12h00 on Friday, 20 July 2012. Computershare Nominees (Proprietary)
Limited will endeavor to procure the disposal, on an equitable basis, of the Rights on the JSE on behalf
of such BSX Shareholders and will subject to Exchange Control Regulations, remit the proceeds net of
any applicable costs to the Administrator and Secretaries who will in turn remit the proceeds to such
BSX Shareholders in accordance with the payment instructions reected in the Form of Instruction, net
of brokerage charges and associated expenses. Computershare Nominees (Proprietary) Limited will not
have any obligation, or be responsible for any loss or damage whatsoever in relation to or arising out of
the timing of such disposals, the price obtained or any failure to dispose of such Rights.
5. RENUNCIATION
renounce part or all of his Rights, then he must complete Form B on page 10 and the renouncee must
6
complete Form C on page 11 and Blocks 5 and 6 of this Form of Instruction. The renouncee must lodge
this Form of Instruction and make payment, in terms of paragraph 2 above, for the Rights Offer Shares in
respect of which the Rights Offer is accepted and then send it to the South African Transfer Secretaries
to be received by no later than 12h00 on Friday, 20 July 2012.
The surrender of this Form of Instruction to the South African Transfer Secretaries with the form of
renunciation purporting to have been signed by the person(s) in whose name(s) it was issued, shall be
conclusive evidence of the title of the party or parties surrendering it to deal with same and to receive
denitive certicates (if applicable) and the issuer shall be under no obligation to ascertain that this Form
of Instruction has been properly signed by the person competent/authorised to do so.
If the Shareholder whose name appears in Block (1) on page 1 of this Form of Instruction or a renouncee
whose name appears on Form C wishes to apply for Excess Rights Offer Shares, he must complete
Blocks 7 and 8 and make payment for the Excess Rights Offer Shares together with and in the same
manner as payment is made for the Rights Offer Shares forming part of the Rights Offer Entitlement as
set out in paragraph 2 above.
The following summary is intended only as a guide and is, therefore, not comprehensive. If Shareholders
are in any doubt as to the appropriate course of action they are advised to consult their professional
advisors.
In terms of the Exchange Control Regulations:
Non-residents of the Common Monetary Area will be allowed to, using their off-shore funds:
take-up Rights allocated to them in terms of the Rights Offer;
purchase Letters of Allocation on the JSE; and
subscribe for Rights Offer Shares arising in respect of the Letters of Allocation purchased on the JSE;
and
subscribe for Excess Rights Offer Shares,
provided payment is received either through normal banking channels from abroad or from a non-
resident account.
All applications by non-residents for the above purposes must be made through an authorised dealer,
in Rand introduced from abroad for a non-resident Rand account. Following the close of the Rights
Offer and the listing of the Rights Offer Shares on the JSE, Rights Offer Shares issued pursuant to such
applications will be endorsed non-resident. BSX Shareholders who are non-residents (excluding former
residents) of the Common Monetary Area may elect to transfer their Rights Offer Shares to theBSX.
7
Former residents:
Where a Right in terms of the Rights Offer accrues to a former resident of the Common Monetary Area,
which Right is based on Shares blocked in terms of the Exchange Control Regulations, then emigrant
blocked funds may not be used to take up the Rights or Shares in Pallinghurst as a company with an
inward listing on the JSE.
BSX Shareholders who are residents of the Common Monetary Area:
Where a BSX Shareholder wishes to take up Rights allocated to them in terms of the Rights Offer and
such BSX Shareholder is a resident of the Common Monetary Area, such BSX Shareholder will be able to
use funds within the Common Monetary Area to take up Rights allocated to them in terms of the Rights
Offer or legitimate off-shore funds transferred through normal banking channels from abroad to do so.
Following the close of the Rights Offer and the listing of the Rights Offer Shares on the JSE, Rights Offer
Shares issued pursuant to applications by BSX Shareholders using funds within the Common Monetary
Area will not be transferrable by such BSX Shareholder to the BSX. However, where legitimate off-shore
funds are used, such BSX Shareholder may elect to transfer such Rights Offer Shares to the BSX.
Arne H. Frandsen
5 June 2012
8
GENERAL INSTRUCTIONS AND NOTES:
1. POWERS OF ATTORNEY
If this Form of Instruction is signed under a power of attorney then that power of attorney must be sent
to the South African Transfer Secretaries of Pallinghurst for registration, unless it has already been
registered by them.
If this Form of Instruction is signed by a company representative then that company representative
warrants that he is duly authorised to do so.
2. DECEASED ESTATES AND TRUSTS
Pallinghurst Shares will not be allocated in the name of a deceased estate or trust or a person under
contractual disability.
Therefore, when the Rights Offer Entitlement has accrued to a deceased person, an estate or a trust,
the executor or trustee, parent/guardian or curator (as the case may be) must complete Form B of
this Form of Instruction in his representative capacity (which authority must be lodged with the South
African Transfer Secretaries) and Form C forming part of this Form of Instruction, must be completed
by the person in whose name the Rights Offer Shares are to be allocated without any reference to the
estate, the trust or the benecial owner. Letters of Executorship (if not previously registered) should be
submitted to the South African Transfer Secretaries for record purposes.
3. JOINT HOLDERS
All joint holders must sign where applicable.
4. ISSUE OF SHARES
Rights Offer Shares will be issued to BSX Shareholders in electronic form on the JSE. BSX Shareholders
must complete the section Share issue instructions of this Form of Instruction, with details of their South
African CSDP whom the appropriate number of Rights Offer Shares can be transferred to onceissued.
If this Form of Instruction is presented by:
the addressee, then the Rights Offer Shares in question will be transferred to the account
details provided in the Share issue instructions section of this Form of Instruction. If the
requisite South African CSDP details are not provided, the Rights Offer Shares will be issued in
Certicated form and retained by the South African Transfer Secretaries for transfer to the BSX,
subject to Exchange Control Regulations; and
a renouncee, then the Rights Offer Shares in question will be transferred to the account details
given by the renouncee in Form C. If the requisite South African CSDP details are not provided,
the Rights Offer Shares will be issued in Certicated form and retained by the South African
Transfer Secretaries for transfer to the BSX, subject to Exchange Control Regulations.
9
FORM A: INSTRUCTION TO DISPOSE
(To be completed and signed by the Shareholder if the Rights Offer
Entitlement(s) are to be disposed by the South African Transfer
Secretaries on behalf of the Shareholder)
If all Rights Offer Entitlement(s) are not being disposed of, please specify in
this block how many Rights Offer Entitlement(s) are being disposed of.
Portion of the Rights Offer Entitlement(s) being disposed:
To the directors,
I/we hereby instruct Computershare Nominees (Proprietary) Limited to
pay the proceeds, if any, of the disposal of the Rights Offer Entitlement(s)
allocated to me/us (or, if applicable, the portion thereof specied in the
above block), in terms of this Form of Instruction (less R131.10 (all inclusive)
for trades less than R40 000.00 and R131.10 plus 0.25% of the value of
trades for amounts greater than R40 000.00).
Signed ______________________________________________________________________________________
Date ________________________________________________________________________________________
Cellphone number ___________________________________________________________________________
Telephone number ___________________________________________________________________________
Payment Instructions
Please tick appropriate box
1. By cheque, which should be posted at my/our own risk to the following address:
_____________________________________________________________________________________________
_____________________________________________________________________________________________
2. By electronic funds transfer to the following bank account:
Name of bank________________________________________________________________________________
Account number _____________________________________________________________________________
Branch code _________________________________________________________________________________
3. To a charitable organization to be selected by PALLINGHURST.
PLEASE NOTE THAT IF THE ABOVE INFORMATION IS NOT COMPLETED OR IF CONFLICTING
INSTRUCTIONS ARE GIVEN, A CHEQUE IN PAYMENT OF THE AMOUNT DUE WILL BE SENT TO
THE ADDRESS RECORDED IN THE REGISTER.
Stamp and
endorsement of
selling broker
(if any)
10
FORM B: FORM OF RENUNCIATION
(To be signed by the Shareholder(s) named in Block (1) if the Rights Offer
Entitlement(s) is renounced.)
If all Rights are not being renounced, please specify in this block how many
Rights are being renounced.
Number of Renounced Rights:
To the directors,
I/We hereby renounce in respect of the amount of Rights Offer Shares
specied in the above block and, if no amount is specied, the entire Rights
Offer Entitlement(s) allocated to me/us in terms of this form as stipulated in
Block (3), in favour of the person completing Form C my/our right to subscribe
for the Rights Offer Shares allocated to me in this form of instruction.
Signed ______________________________________________________________________________________
Date ________________________________________________________________________________________
Stamp and
endorsement of
selling broker
(if any)
11
FORM C: REGISTRATION APPLICATION FORM
(To be completed by the renouncee to whom the Rights Offer Shares are to
be allotted.) This form will not be negotiable once this form is completed.
To the directors,
I/We
(a) authorise you to procure the allotment and issue of the amount of
Rights Offer Shares specied in Form B above or, if no amount is
specied, the number of Rights Offer Shares stipulated in block (3) in
this form of instruction in my/our own names(s) upon the conditions
set out in the Circular to Shareholders issued on Monday, 2 July 2012
as read with this form of instruction; and
(b) authorise PALLINGHURST to place my/our name(s) on the register of
Shareholders.
USE BLOCK LETTERS
Mr/Mrs/Miss _________________________________________________________________________________
Surname _______________________________________________________________________________
First names in full ____________________________________________________________________________
Postal address _______________________________________________________________________________
Telephone number (ofce hours) _______________________________________________________________
Cellphone number ____________________________________________________________________________
DETAILS OF CSDP/BROKER
Client account name _________________________________________________________________________
Name of CSDP _________________________________________________________________________
Name of broker ______________________________________________________________________________
SCA number _________________________________________________________________________________
Reference number ___________________________________________________________________________
(If no specic instructions are given above, Computershare Nominees (Proprietary) Limited will issue
the Shares in Certicated form and retain the Shares for transfer to the BSX, subject to Exchange
Control Regulations)
Signed ______________________________________________________________________________________
Date ________________________________________________________________________________________
Stamp and
endorsement of
buying broker
(if any)
12
SHARE ISSUE INSTRUCTIONS
(BLOCK LETTERS)
South African resident (yes/no)
Pallinghurst Shares should be transferred to the following account:
Client account name: _________________________________________________________________________
Name of CSDP: ______________________________________________________________________________
Name of broker: ______________________________________________________________________________
SCA number: ________________________________________________________________________________
Reference number: ___________________________________________________________________________
A BSX Shareholder who wishes to receive Certicated Shares from the South African Transfer
Secretaries must tick this block and details of the relevant address should be completed below
for delivery of the relevant Share certicates:
Postal address: ______________________________________________________________________________
Signed ______________________________________________________________________________________
Date ________________________________________________________________________________________
1
THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION
For use by Certicated JSE Shareholders only
FORM OF INSTRUCTION
If you are in any doubt as to what action to take in relation to this Form of Instruction, please consult your
CSDP, broker, banker, attorney, accountant or other professional advisor immediately.
This Form of Instruction should be read together with the Circular dated Monday, 2 July 2012. Words and
expressions dened in the Circular shall have the same meanings in this Form of Instruction. Letters of Allocation
are negotiable and may be traded on the JSE. Pallinghurst has issued all Rights in Dematerialised form on the
JSE. The electronic record for Certicated JSE Shareholders is being maintained by Computershare Nominees
(Proprietary) Limited, a wholly-owned subsidiary of Computershare Custodial Services (Proprietary) Limited.
Should you wish to take-up, dispose of or renounce all or part of your Rights in terms of the Rights Offer, you
MUST complete this Form of Instruction and return it to the South African Transfer Secretaries at the address
set out below. Each alteration must be signed in full and must not merely be initialed.
A FORM OF INSTRUCTION IN RESPECT OF A LETTER OF ALLOCATION RELATING TO
THE RIGHTS OFFER
Form of Instruction issued to Certicated Shareholders only
Name and address of Certicated Shareholder Serial number
(1)
Enquiries in connection with
this Form of Instruction should
be made to the South African
Transfer Secretaries quoting the
serial number below:
Account number Number of Shares
registered in your name
at the close of business
on Friday, 29 June 2012
Number of Rights Offer
Shares to which you are
entitled:
Amount payable for
maximum number of
Rights Offer Shares at
224 cents per Rights
Offer Share:
(2) (3) R (4)
2
Acceptance of Rights in terms
of paragraph 3 of this Form of
Instruction.
Number of Rights Offer Shares
accepted:
Amount payable for the number
of Rights Offer Shares at 224
cents per Rights Offer Share:
(5) R (6)
Application for Excess Rights
Offer Shares
(to be completed by acceptors
wishing to apply for Excess Rights
Offer Shares) (the right to apply
for Excess Rights Offer Shares is
transferable upon the renunciation
of this Letter of Allocation)
Number of Excess Rights Offer
Shares for which application
ismade:
Amount payable for Excess
Rights Offer Shares at 224 cents
per Rights Offer Share:
(7) R (8)
Amount of cheque / banker draft
Please note the same or
lesser number of Rights Offer
Shares as the number
mentioned in block (3)
may be accepted. (9) R (9)
Applicants telephone number (ofce hours) Signature Date
_________________________________________ __________________________ __________________________
This Form of Instruction must be completed in its entirety and returned to the South African
Transfer Secretaries:
Computershare Investor Services (Proprietary) Limited, Ground Floor, 70 Marshall Street, Johannesburg, 2001
(PO Box 61763, Marshalltown, 2107)
Telephone: (011) 370-5000
so as to reach the South African Transfer Secretaries by no later than 12h00 on Friday, 20 July 2012.
3
2012
Last date to trade in Shares on the JSE (cum Rights Offer Entitlement) in order to
participate in the Rights Offer
Friday, 22 June
Last date to trade in Shares on the JSE for settlement by the Record Date and to
be recorded as a Shareholder
Friday, 22 June
Listing and trading of Letters of Allocation on the JSE from the commencement of
trade on
Monday, 25 June
Dematerialised JSE Shareholders accounts at their broker or CSDP credited with
their Rights Offer Entitlement
Monday, 2 July
Certicated JSE Shareholders and BSX Shareholders have their Rights Offer
Entitlement created in electronic form and held at Computershare Nominees
(Proprietary) Limited
Monday, 2 July
Last date to trade in the Letters of Allocation on the JSE for settlement by 12h00
on Friday, 20 July 2012
Friday, 13 July
Payment and Forms of Instruction to be received by the South African Transfer
Secretaries by 12h00 on
Friday, 20 July
Results of Rights Offer and basis of allocations of Excess Rights Offer Shares
released on SENS
Monday, 23 July
Expected date on which the relevant brokers or CSDPs are updated with their
Rights Offer Shares and debited with the costs of the purchase in respect of
Monday, 23 July
Dematerialised shareholders will have their accounts at their CSDP or broker
updated with any excess shares allocated and debited with the costs
Wednesday, 25 July
Refunds/cheques posted to Certicated JSE Shareholders in respect of unsuccessful
applications of Excess Rights Offer Shares
Wednesday, 25 July
Notes:
1. Dematerialised JSE Shareholders are required to notify their duly appointed broker or CSDP of their participation
in the Rights Offer in the manner and time stipulated in the custody agreement governing the relationship between
the Dematerialised JSE Shareholder and his/her broker or CSDP.
2. BSX Shareholders and Certicated JSE Shareholders must complete the relevant Form of Instruction, which
Form of Instruction, must reach the South African Transfer Secretaries in accordance with the instructions
contained therein.
3. No Shares may be Dematerialised or re-materialised from the commencement of trade on Monday, 25 June
2012 to Friday, 29 June 2012, both days inclusive.
4. No transfers of Shares between the JSE and the BSX may take place from the commencement of trade on
Monday, 25 June 2012 to Friday, 29 June 2012, both days inclusive.
5. CSDPs effect payment on a delivery of scrip versus payment method in respect of Dematerialised Shareholders.
6. Above times are South African times.
4
Dear Sir/Madam
1. RIGHTS ISSUE
Pallinghurst hereby offers to the Shareholder whose name is stated in Block (1) on page 1 of this Form
of Instruction, upon the terms and conditions stated in the Circular dated Monday, 2 July 2012 (which
shall, if in conict with the information set out in this Form of Instruction, take precedence), the right to
subscribe for the number of Rights Offer Shares set out in Block (3) on page 1 of this Form of Instruction.
2. ACCEPTANCE
If the addressee wishes to take-up the Rights Offer Shares stated in Block (3) on page 1 of this Form of
Instruction (or any lesser number), then Blocks 5 and 6 must be completed and signed by the addressee.
The properly completed Form of Instruction, together with payment (as prescribed in the paragraph
below) must be delivered to the South African Transfer Secretaries, as follows:
Hand delivered to: Posted (at the risk of the Certicated JSE Shareholder) to:
Ground Floor P O Box 61763
70 Marshall Street Marshalltown, 2107
Johannesburg, 2001
so as to reach the South African Transfer Secretaries by no later than 12h00 on Friday, 20 July 2012.
3. PAYMENT
Payment for the Rights Offer Shares taken-up must be made by cheque (crossed not transferable
and with the words or bearer deleted) or a bankers draft (drawn on a registered bank) payable to
Pallinghurst Rights Offer (JSE) for the amounts payable, in Rand and must be lodged together with this
Form of Instruction, properly completed.
Payment in accordance with the above will, once the cheque or bankers draft has been cleared for
payment, constitute an irrevocable subscription for Rights Offer Shares upon the terms and conditions
set out in the Circular and in this Form of Instruction. Should any cheque or bankers draft be dishonoured,
Pallinghurst, in its sole discretion, may treat the Form of Instruction as void.
Please note that the South African Transfer Secretaries will effect delivery of Certicated Shares against
payment and should a cheque or bankers draft for the amount stipulated in block (9) not accompany
the Form of Instruction, the application will be treated as invalid.
4. DISPOSAL
If the Shareholder whose name appears in Block (1) on page 1 of this Form of Instruction wishes to dispose
of part or all of his Rights, then that Shareholder must complete Form A of this Form of Instruction. This
must be sent to the South African Transfer Secretaries in accordance with the instructions contained
therein, to be received by no later than 12h00 on Friday, 20 July 2012. Computershare Nominees
5
(Proprietary) Limited will endeavor to procure the disposal, on an equitable basis, of the Rights on the
JSE on behalf of such Certicated JSE Shareholders and subject to Exchange Control Regulations, will
remit the proceeds in accordance with the payment instructions reected in the Form of Instruction, net
of brokerage charges and associated expenses. Computershare Nominees (Proprietary) Limited will not
have any obligation, or be responsible for any loss or damage whatsoever in relation to or arising out of
the timing of such disposals, the price obtained or any failure to dispose of such Rights.
5. RENUNCIATION
renounce part or all of his Rights, then he must complete Form B on page 9 and the renouncee must
complete Form C on page 10 and Blocks 5 and 6 of this Form of Instruction. The renouncee must lodge
this Form of Instruction and make payment, in terms of paragraph 2 above, for the Rights Offer Shares in
respect of which the Rights Offer is accepted and then send it to the South African Transfer Secretaries
to be received by no later than 12h00 on Friday, 20 July 2012.
The surrender of this Form of Instruction to the South African Transfer Secretaries with the form of
renunciation purporting to have been signed by the person(s) in whose name(s) it was issued, shall be
conclusive evidence of the title of the party or parties surrendering it to deal with same and to receive
denitive certicates (if applicable) and the issuer shall be under no obligation to ascertain that this Form
of Instruction has been properly signed by the person competent/authorised to do so.
If the Shareholder whose name appears in Block (1) on page 1 of this Form of Instruction or a renouncee
whose name appears on Form C wishes to apply for Excess Rights Offer Shares, he must complete
Blocks 7 and 8 and make payment for the Excess Rights Offer Shares together with and in the same
manner as payment is made for the Rights Offer Shares forming part of the Rights Offer Entitlement as
set out in paragraph 2 above.
The following summary is intended only as a guide and is, therefore, not comprehensive. If Shareholders are
in any doubt as to the appropriate course of action they are advised to consult their professional advisors.
In terms of the Exchange Control Regulations:
Non-residents of the Common Monetary Area will be allowed to, using their off-shore funds:
Take-up Rights allocated to them in terms of the Rights Offer;
purchase Letters of Allocation on the JSE; and
subscribe for Rights Offer Shares arising in respect of the Letters of Allocation purchased on the JSE;
and
subscribe for Excess Rights Offer Shares,
provided payment is received either through normal banking channels from abroad or from a non-
resident account.
6
All applications by non-residents for the above purposes must be made through an authorised dealer,
in Rand introduced from abroad for a non-resident Rand account. Following the close of the Rights
Offer and the listing of the Rights Offer Shares on the JSE, Rights Offer Shares issued pursuant to such
applications will be endorsed non-resident.
Former residents:
Where a Right in terms of the Rights Offer accrues to a former resident of the Common Monetary Area,
which Right is based on Shares blocked in terms of the Exchange Control Regulations, then emigrant
blocked funds may not be used to take up the Rights or Shares in Pallinghurst as a company with an
inward listing on the JSE.
Arne H. Frandsen
5 June 2012
7
GENERAL INSTRUCTIONS AND NOTES:
1. POWERS OF ATTORNEY
If this Form of Instruction is signed under a power of attorney then that power of attorney must be sent
to the South African Transfer Secretaries of Pallinghurst for registration, unless it has already been
registered by them.
If this Form of Instruction is signed by a company representative then that company representative
warrants that he is duly authorised to do so.
2. DECEASED ESTATES AND TRUSTS
Rights Offer Shares will not be allocated in the name of a deceased estate or trust or a person under
contractual disability.
Therefore, when the Rights Offer Entitlement has accrued to a deceased person, an estate or a trust,
the executor or trustee, parent/guardian or curator (as the case may be) must complete Form B of
this Form of Instruction in his representative capacity (which authority must be lodged with the South
African Transfer Secretaries) and Form C forming part of this Form of Instruction must be completed
by the person in whose name the Rights Offer Shares are to be allocated without any reference to the
estate, the trust or the benecial owner. Letters of Executorship (if not previously registered) should be
submitted to the South African Transfer Secretaries for record purposes.
3. JOINT HOLDERS
All joint holders must sign where applicable.
4. ISSUE OF SHARES
Certicated JSE Shareholders will have their Rights Offer Shares issued in Certicated form.
If this Form of Instruction is presented by:
the addressee, then the Rights Offer Shares in question will be posted to that addressees
address; and
a renouncee, then the Rights Offer Shares in question will be posted to the address given by
the renouncee in Form C.
Certicated Shares will be posted by registered mail at the risk of the Person(s) entitled thereto
8
FORM A: INSTRUCTION TO DISPOSE
(To be completed and signed by the Shareholder if the Rights Offer
Entitlement(s) are to be disposed by the South African Transfer
Secretaries on behalf of the Shareholder)
If the entire Rights Offer Entitlement(s) is not being disposed, please specify
here what portion of the Rights Offer Entitlement(s) is being disposed.
Rights Offer Entitlement(s) being disposed:
To the directors,
I/we hereby instruct Computershare Nominees (Proprietary) Limited to
pay the proceeds, if any, of the disposal of the Rights Offer Entitlement(s)
allocated to me/us (or, if applicable, the portion thereof specied in the
above block), in terms of this Form of Instruction (less R131.10 (all inclusive)
for trades less than R40 000.00 and R131.10 plus 0.25% of the value of
trades for amounts greater than R40 000.00).
Signed ______________________________________________________________________________________
Date ________________________________________________________________________________________
Cellphone number ___________________________________________________________________________
Telephone number ___________________________________________________________________________
Payment Instructions
Please tick appropriate box
1. By cheque, which should be posted at my/our own risk to the following address:
_____________________________________________________________________________________________
_____________________________________________________________________________________________
2. By electronic funds transfer to the following bank account:
Name of bank________________________________________________________________________________
Account number _____________________________________________________________________________
Branch code _________________________________________________________________________________
3. To a charitable organization to be selected by PALLINGHURST.
PLEASE NOTE THAT IF THE ABOVE INFORMATION IS NOT COMPLETED OR IF CONFLICTING
INSTRUCTIONS ARE GIVEN, A CHEQUE IN PAYMENT OF THE AMOUNT DUE WILL BE SENT TO
THE ADDRESS RECORDED IN PALLINGHURSTS REGISTER.
Stamp and
endorsement of
selling broker
(if any)
9
FORM B: FORM OF RENUNCIATION
(To be signed by the Shareholder(s) named in Block (1) if the Rights Offer
Entitlement(s) is renounced.)
If all Rights are not being renounced, please specify in this block how many
Rights are being renounced.
Number of Renounced Rights:
To the directors,
I/We hereby renounce in respect of the amount of Rights Offer Shares
specied in the above block and, if no amount is specied, the entire Rights
Offer Entitlement(s) allocated to me/us in terms of this form as stipulated in
Block (3), in favour of the person completing Form C my/our right to subscribe
for the Rights Offer Shares allocated to me in this Form of Instruction.
Signed ______________________________________________________________________________________
Date ________________________________________________________________________________________
Stamp and
endorsement of
selling broker
(if any)
10
FORM C: REGISTRATION APPLICATION FORM
(To be completed by the renouncee to whom the Rights Offer Shares are to
be allotted.) This form will not be negotiable once this form is completed.
To the directors,
I/We
(a) authorise you to procure the allotment and issue of the amount of
Rights Offer Shares specied in Form B above or, if no amount is
specied, the number of Rights Offer Shares stipulated in block (3) in
this Form of Instruction in my/our own names(s) upon the conditions
set out in the Circular to Shareholders issued on Monday, 2 July 2012
as read with this Form of Instruction; and
(b) authorise PALLINGHURST to place my/our name(s) on the register of
Shareholders.
USE BLOCK LETTERS
Mr/Mrs/Miss _________________________________________________________________________________
Surname(s) or name of company __________________________________________________________
First names in full ____________________________________________________________________________
Postal address _______________________________________________________________________________
Telephone number (ofce hours) _______________________________________________________________
Cellphone number ____________________________________________________________________________
Stamp and
endorsement of
buying broker
(if any)

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THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION.

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