Baobab Joint Venture

Petmin holds a 50% interest in the Baobab Joint Venture – a greenfield soft coking and steam coal deposit located in the Mopani/Soutpansberg Coalfields near Musina in the Limpopo Province – through its subsidiary, Baobab Mining & Exploration (Pty) Limited (Baobab) . This interest was acquired in December 2005 as part of the Group's acquisition of Springlake Holdings. At the time, Petmin attributed no value to Baobab.

On Tuesday, 19 December 2006, Petmin announced an agreement with GVM Metals Limited (GVM) in terms of which GVM will acquire 100% of the issued share capital of Baobab for a consideration of ₤2.5 million (approximately R35 million). The disposal of Baobab is in line with Petmin's strategy to focus on cash- or near cash-prodcuing assets.