Jim Sinclair: Buy some real metal and get your mining companies to strike back

Section:

Company Press Release
Monday, June 28, 2004

http://www.drd.co.za/

Johannesburg, South Africa -- Durban Roodepoort Deep
Ltd. is pleased to announce that it will be closing out
its only remaining hedge contract in line with its
policy of not hedging gold production.

The hedge is a "gold for electricity" contract with
Eskom, the South African power utility, and was largely
closed out in early 2004. The remaining 135,000 ounces
of gold hedged under the contract covers the period
January 2005 to September 2005 and DRD expects that it
will be closed out by next week.

DRD Chief Executive Officer Ian Murray said: "We have
been keen to close out this remaining hedge contract
and the current low Rand gold price has presented an
ideal opportunity to achieve this. DRD will now provide
shareholders with even more direct exposure to the gold
price."

To fund the closing out of the Eskom hedge, DRD has
agreed a R100 million (US$15.8 million/A$22.6 million)
short-term loan facility with Investec Bank Ltd., a
South African bank. The loan is based on commercial
terms and conditions and is repayable at DRD's election,
either in cash, in DRD shares, or a combination of both.

The number of shares that could be issued to Investec
under this loan is dependent on the average price of
DRD shares as traded on the JSE Securities Exchange
South Africa for the 10 trading days prior to the dates
of repayment. At the closing share price on the JSE on
June 24, 2004 of R16, approximately 6.25 million shares
may be issued or 2.6 percent of the enlarged capital,
assuming the full facility is drawn down.

DRD estimates the cost of closing out the hedge will
be around R60 million (U$9.5 million/A$13.6 million).

The balance of R40 million (U$6.3 million/A$9.0 million)
will be available for any required injection of funds into
Emperor Mines Ltd. if and when that company comes
under DRD's full ownership. The funds will not be used
for the acquisition of Emperor shares.

DRD has previously indicated that, in its view, Emperor
will require additional funding to complete its Phase II
capital expansion plan and possibly for other plant
upgrades, including those required to release the
significant buildup of gold in circuit.

Any injection of funds into Emperor will depend in part
on the level of acceptances under the current takeover
offer. DRD has received a recommendation by a majority
of the independent directors of the Emperor Mines
board that shareholders accept DRD's final, revised offer
of five DRD shares for every 22 Emperor shares it does
not already own. DRD currently has an interest in 26
percent of Emperor. If the offer is unsuccessful, DRD
may choose not to further draw down the loan facility or,
alternatively, will use the funds for general corporate
purposes.

DRD is offering to acquire all of the shares in Emperor
by way of a takeover offer. The outcome of the takeover
is not yet known, as the remaining 50.1 percent
minimum acceptance requirement has not yet been
satisfied. The offer is scheduled to close on July 14,
2004, unless extended.

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----------------------------------------------------

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