Announcement by IPSA Group PLC
22 October 2010
The Board of Strategic Natural Resources (AIM:SNRP) notes the recent announcement made by IPSA Group PLC ("IPSA") in relation to a coal supply agreement (the "Agreement") between IPSA's wholly owned subsidiary, Indwe Power (Pty) Limited ("IPPL") and Elitheni Coal (Pty) Limited (together with SNR, the "Group").
The Group is currently in discussions with a number of potential parties about entering into alternative coal supply agreements for future production from the Elitheni mine. These discussions are progressing and the Company will make further announcements at the appropriate time.
Prior to the announcement by IPSA, the Group had not received any notice of termination from IPPL in relation to the Agreement. It is noted that a clear right in law entitling such termination is not readily apparent and SNR are considering this further.
Notwithstanding the delays in Eskom's Multi-site Baseload Independent Power Production Programme, which in turn have led to delays in achieving off-take contracts for power from IPSA's proposed mine mouth power plant at Indwe, the Group had previously chosen not to terminate the Agreement as it was entitled to in accordance with the terms thereof.
For further information, please contact:
Strategic Natural Resources plc
David Nel, Chief Executive Officer
+27 (0) 41 374 0842
Jeremy Metcalfe, Communications Director
+44 (0)7785 346 718
Nominated Adviser and Joint Broker - Allenby Capital Limited
Nick Naylor / Alex Price / James Reeve
+44 (0) 20 3328 5656
Joint Broker - SP Angel Corporate Finance Limited
Emin Eyi / Tercel Moore
+44 (0) 207 647 9646
FTI Consulting
Ben Brewerton / Georgia Mann
+44 (0)207 831 3113