RNS Number:2675R
Cluff Mining PLC
24 October 2003


                                CLUFF MINING PLC

                               Rosario Agreement



On 4 July 2002, Cluff Mining PLC ("Cluff" or "the Company") announced that it
had consented to the assignment by the former owners of Sperrylite Resources
(Pty) Limited ("Sperrylite") of their rights under the Sperrylite acquisition
agreement ("Sperrylite Acquisition Agreement") to Rosario International
Investments Limited ("Rosario"), a company in which Mzi Khumalo (a shareholder
and director of Cluff) is interested (the "Rights Transfer"). Sperrylite held
rights to a number of platinum group metal exploration interests in South Africa
and was acquired by Cluff in 2001.


Pursuant to the Rights Transfer, Rosario was entitled to be issued up to 2.7
million new Cluff shares (Consideration Shares) which may in the future be
issued by the Company on definition of certain target mineral resources at Blue
Ridge, Sheba's Ridge, Fonte Verde and Blue Sky North under the terms of the
Sperrylite Acquisition Agreement. On 30 July 2002, following the estimation and
audit of additional indicated mineral resources at Blue Ridge, Cluff issued 1.25
million new Cluff shares to Rosario.


The Sperrylite Acquisition Agreement provided for the Company to issue new Cluff
shares on the definition of audited indicated mineral resources at new projects
brought to the Company by the former owners of Sperrylite, which the Company
agreed to explore, on the basis of one new Consideration Share for every 5 PGM
ounces defined as an indicated mineral resource at such new projects. The
Company stated that it did not intend to issue more than four million of such
Consideration Shares for additional projects. This limit potentially constrains
the Company from accepting further additional projects which are identified and
may add considerably to the value of the Company.


Differences of interpretation over Rosario's entitlement to new Cluff shares
under certain clauses of the Sperrylite Acquisition Agreement have recently
arisen between Cluff and Rosario. These concern whether certain projects which
Cluff is working on should be considered under the Sperrylite Acquisition
Agreement to be Relevant Projects, and therefore subject to capped obligations
to issue new Consideration Shares to Rosario, or Additional Projects, and
therefore subject to uncapped obligations to issue such shares. Further work on
the Company's properties over the next 18 months should clarify these issues,
and Rosario and Cluff have therefore agreed that discussion of these issues will
be deferred until that time. The parties have further agreed that they will use
reasonable endeavours to conclude a compromise in respect of these differences
of interpretation for a period of one month commencing 23 April 2005.


If Cluff and Rosario are unable to agree a compromise in this period, Cluff will
have the option (but not the obligation) to terminate the Sperrylite Acquisition
Agreement in consideration for it issuing to Rosario the lesser of five million
new Cluff shares (less any Consideration Shares issued to Rosario in the period
from the date of this announcement until the date such shares are issued) and
such number of new shares as shall result in Rosario, together with any person
controlled by or acting in concert with Mr Mzi Khumalo, holding 29.9 per cent.
of the total issued share capital of Cluff ("the Cluff Option"). If Cluff
exercises this option, Rosario will have the option to acquire the Red Bush
Ridge project for its then book value in cash.


The exercise of the Cluff Option will be conditional on the approval of the
shareholders of Cluff, compliance by Cluff with the related party transaction
provisions in the AIM Rules and any other consents and approvals necessary to
Cluff and compliance with any law or regulation applicable to Cluff.



                                                                24 October 2003



ENQUIRIES:

Cluff Mining PLC                           Tel: +44 20 7495 2030
Terence Wilkinson, Chief Executive
Donald McAlister, Finance Director

College Hill Associates                    Tel: +44 20 7457 2020
Mark Garraway
Michael Spriggs







                      This information is provided by RNS
            The company news service from the London Stock Exchange

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