Anooraq Resources Corporation
TSX VENTURE : ARQ
AMEX : ANO
JSE : ARQ

Anooraq Resources Corporation

December 24, 2007 05:00 ET

Anooraq Announces Exercise of Warrants by Controlling Shareholder

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 24, 2007) - Anooraq Resources Corporation ("Anooraq" or the "Company") (TSX VENTURE:ARQ)(AMEX:ANO)(JSE:ARQ) is pleased to announce that its principal shareholder, the Pelawan Trust ("Pelawan"), has exercised 167,000,000 common share purchase warrants (the "Warrants") at a price per common share of CDN$1.35.

In connection with Pelawan's exercise of the Warrants, the Company has entered into an amending agreement (the "Amending Agreement") with Pelawan to amend the exercise procedure of the Warrants to allow Pelawan to finance the exercise of the Warrants by way of a bridge loan from Rand Merchant Bank ("RMB"). Pursuant to the Amending Agreement, Pelawan has exercised the Warrants by depositing an escrowed amount equal to the aggregate exercise price for the Warrants (CDN$ 225 million or ZAR 1,586 billion) into an interest bearing account with RMB, to be released pursuant to a deposit account agreement (the "Deposit Agreement") between RMB, Pelawan Investments (Pty) Ltd and Anooraq upon the satisfaction of certain release conditions. The common shares underlying the Warrants will be issued to Pelawan upon receipt by the Company of the exercise price per common share, plus the interest accrued thereon up to the date of release.

The board of directors of the Company formed a special committee consisting of disinterested directors to consider the Amending Agreement and the Deposit Agreement and other ancillary matters related to the Warrant exercise and the financing thereof. This special committee unanimously approved the Company entering into the Amending Agreement and the Deposit Agreement and other ancillary matters on December 18, 2007.

Should the common shares underlying the Warrants be issued in full, Pelawan's resulting shareholding in Anooraq will increase to approximately 82% of the current issued and outstanding common shares of the Company.

The exercise of the Warrants enhances Anooraq's ability to maintain its status as a Black Economic Empowerment company under South Africa's mining legislation.

The Company intends to use the proceeds of the Warrants exercise, when received, as partial funding for the proposed acquisition of 51% of Lebowa Platinum Mines Limited from Anglo Platinum Limited ("Anglo Platinum") announced in the Company news release dated September 4, 2007.

For further information on Anooraq and its South African properties, please visit our website www.anooraqresources.com or call investor services in South Africa at +27 11 883 0831 or in North America at 1 800 667 2114.

ON BEHALF OF THE BOARD OF DIRECTORS

Tumelo Motsisi, Acting President and CEO

Cautionary and Forward Looking Information

This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address future events or developments that Anooraq expects are forward-looking statements. Wherever possible, words such as "anticipate", "believe", "expect", "may", "could", "will", "potential", "intend", "estimate", "should", "plan", "predict", "project" or the negative or other variations of such expressions reflect Anooraq's current beliefs and assumptions and are based on the information currently available to Anooraq as of the current date. Although Anooraq believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, changes in and the effect of government policies with respect to mining and natural resource exploration and exploitation and continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements. For more information on Anooraq, Investors should review the Company's annual Form 20-F filing with the United States Securities and Exchange Commission and its home jurisdiction filings that are available at www.sedar.com.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. The American Stock Exchange has neither approved nor disapproved the contents of this press release.

Contact Information

  • Anooraq Resources Corporation
    Shawn Wallace
    Investor Services - North America
    1-800-667-2114
    or
    Anooraq Resources Corporation
    Investor Services - South Africa
    +27 11 883 0831
    Website: www.anooraqresources.com