METOREX LD: Capital raising & debt restructuring programme

METOREX LIMITED

(Incorporated in the Republic of South Africa)

(Registration number 1934/005478/06)

JSE code: MTX ISIN: ZAE000022745

("Metorex" or "the Company")

MEDIA RELEASE ANNOUNCING

  * Major capital raising of R922m - via equity and debt placings
   
  * Restructuring of existing debt commitments
   
  * Ruashi now fully capitalised to ramp up to full production
   
Metorex has entered into various agreements that will result in a significant
re-capitalisation of the Company. This involves a fresh equity capital
injection of R744 million and a bridging finance loan of R178 million. The
medium term debt is simultaneously to be re-structured providing a longer term
debt profile.

The re-financing is required due to a combination of a capital cost overrun on
the Ruashi project in the Democratic Republic of Congo (DRC) combined with
commissioning delays over the last three months. This has resulted in a slower
build-up of anticipated revenue and cash-flows from the project. Without this
re-financing the project could not be completed which would have serious
consequences for the company.

Metorex requires R700 million to finance the cash flows required to ensure
project completion and ramp up to full production at Ruashi. The construction
is substantially complete. The final estimated total cost of the completion of
the project is approximately US$ 320 million. The increase is largely due to
the scope and extent of the project increasing from the original feasibility
and inflation related capital cost escalations particularly in relation to
stainless steel, cement and diesel prices, and the significant social
development costs incurred on providing water and electrical distribution for
the local communities.

The bridge facility is provided by Standard Bank and accrues interest at JIBAR
plus 7.5% p.a. and is available until 30 November 2009. Repayment will be made
through internal cash generation or potentially the disposal of non-core assets
as appropriate.

Total funding of R922 million exceeds the Ruashi requirements of R700 million
and provides for a group funding reserve.

The new equity will be issued at a price of R2 per share. This will be through
the issue of 372 million shares, of which approximately 129 million shares are
authorised but unissued. The shares will be placed with key institutional
shareholders in the Company, amongst others. To raise the additional equity,
the board is recommending an increase in its authorised share capital to
facilitate the issue of the additional shares. This needs to be approved by
shareholders at a general meeting of the Company to be held on 23rd December
2008.

The issue price was determined by the Board after a book-building exercise
amongst selected institutions, both current and potential new investors, and
represents a discount of 48% to the weighted average traded price of Metorex
shares for the trading day ended on 20 November 2008, being the day before the
finalisation of the book-build.

The Company was keen for all shareholders as far as possible, to be able to
participate in the financing. A claw back offer for the unissued shares portion
of approximately129 million shares is therefore available to shareholders as
recorded on the Company's register on 19 December 2008 via nil paid
renounceable letters of allocation.

Whilst some may view the re-financing terms as onerous, the financing is
recognised as an achievement considering the current global credit market
conditions and the volatility and weakness of commodity prices, and places the
Company in a healthy financial position in the medium-term.

A circular will be posted to shareholders on 1 December 2008, containing
details of the proposed increase in the authorised share capital and notice of
general meeting. A circular on the claw back offer will be posted on or about
22 December 2008.

Charles Needham, CEO, said: "This financing has been a major challenge in what
is effectively a closed credit market. It is regretted that the additional
finance was not raised before market conditions deteriorated and before project
delays materialised on our Ruashi project. It is however testament to the
company that we have been able to raise this capital and reflects on the
quality of our assets and is a vote of confidence in the future of the
business."

He added, "We are completely confident in now having raised sufficient funds to
see the Ruashi project through to completion and to provide the necessary
working capital for the group. "

                                   - ENDS -                                    

For further enquiries please contact:

Metorex Limited           Charles Needham, Chief Executive Officer 
                                                                   
                          Tel: [phone]                 
                                                                   
College Hill              Jacques de Bie or Hayley Crane           
                                                                   
                          Tel: [phone]                 



END