TRADING STATEMENT

Trans Hex is currently finalizing its results for the six months ended 30 September 2007 (“the period”), which are expected to be released on SENS on 14 November 2007.

The loss for the period is expected to be R11 million compared to a profit of R3 million reported for the corresponding reporting period of the previous year. The Group is expecting to report a loss per share of 10.5 cents (2006: profit of 2.6 cents) and headline loss per share of 29.9 cents (2006: profit of 7.5 cents).

The financial information on which this trading statement is based has not been reviewed and reported on by the Company’s auditors.

COMMENTS

Sales revenue and profits declined primarily as a result of the temporary loss of production from the Bloeddrif plant and a resultant decline in the overall average price per carat being achieved for the Lower Orange River operations. As previously reported, the Bloeddrif plant was decommissioned to enable plant modifications to increase throughput capacity and reduce unit costs. Bloeddrif mined a high quality geological feature during the first six months of the previous period. Following completion of mining of this geological feature, the plant has been upgraded to enable the remaining lower grade deposits to be mined economically. Production is scheduled to recommence during November 2007. South African land operations production for the full year is expected to be in line with prior year levels.

Notwithstanding the overall loss for the Angolan division, the Luarica operation achieved a much improved performance with mining income at
R1,4 million (R5,3 million loss). The performance of the Namibian operation improved with a reduced operating loss being sustained during the
six month period.

Cape Town
5 November 2007
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)