Wits Gold to pursue other opportunities

Witwatersrand Consolidated Gold Resources Limited
(Incorporated in the Republic of South Africa)
Registration Number 2002/031365/06
JSE Code: WGR
ISIN: ZAE000079703
TSX Code: WGR
CUSIP Number: S98297104
("Wits Gold")

TORONTO, May 31, 2012 /CNW/ - Wits Gold shareholders are referred to the announcement issued by the Company yesterday, 30 May 2012, indicating that the acquisition agreement in respect of an offer by Wits Gold and Pan African Resources plc (the "Consortium") to acquire 100% of Evander Gold Mines Limited from Harmony Gold Mining Company Limited in a 50/50 joint venture had been terminated by mutual agreement between the parties.

The process has been constructive. The Company was able to canvas and meet the majority of its shareholders and has received their support for its strategy and the right transaction.

Wits Gold's CEO, Philip Kotze, commented: "While we are disappointed that the Consortium's offer was not successful, our strategy to become a profitable mid-tier gold producer and developer to create maximum value for our shareholders remains intact.

Wits Gold will continue to actively pursue other opportunities to achieve our goal of becoming a gold producer, and we believe that our timing is apposite as we anticipate greater industry consolidation at the right price in the near term.

The pre-feasibility study for our flagship De Bron Merriespruit (DBM) Project in the southern Free State goldfield is being finalised, and the detail will be shared with the market within the next month. We also continue to advance the remaining exploration projects in our portfolio  up the value curve, and expect to provide further updates in this regard during the coming quarter."

Johannesburg
31 May 2012

JSE Sponsor to Wits Gold
PricewaterhouseCoopers Corporate Finance (Pty) Limited

NOTES:

Wits Gold is a gold and uranium exploration company with assets located in the Witwatersrand Basin in South Africa. Wits Gold has a primary listing on the Main Board of the JSE, and a secondary listing on the Toronto Stock Exchange and has an American Depository Receipt (ADR) programme through the Bank of New York.

 

Philip Kotze
CEO: Wits Gold
[phone]

Hethen Hira
Executive, Investor Relations: Wits Gold
[phone]

Transaction adviser and JSE Transaction Sponsor
Macquarie First South Capital (Pty) Limited

South African legal counsel
Baker & McKenzie

Canadian legal counsel
Stikeman Elliott

Investor Relations
Russell and Associates