Kalahari Minerals Plc (KAH.LN), a mining exploration and evaluation group with interests in Namibia, announced Tuesday that Extract Resources Ltd, in which Kalahari's subsidiary, Kalahari Uranium Limited, holds a 39.98% interest, has launched a proposed A$91 million equity raising, by way of a non-renounceable pro-rata offer to eligible shareholders and a private placement to institutional investors.

MAIN FACTS:

-The proceeds will be used in particular to accelerate the exploration activities of the world class Rossing South uranium project in Namibia, which has a current resource of 267 M lbs of U3O8 at 487 ppm across two zones which are open at depth and along strike, where preliminary cost estimates have indicated it could already support one of the world's largest uranium mines.

-Accordingly, in order to maintain its exposure in Extract, and to fully take up its rights with regards to Extract's fund raising, Kalahari is pleased to announce an associated funding, the details of which are being considered.

-This may include a potential convertible bond/debt component in addition to equity, details of which will be released in due course.

-As well as participating in the pro-rata offer for its relevant portion of new shares in Extract, being 2,616,927 new shares at an issue price of A$7.75 per new share for a total consideration of A$20,281,184.25, Kalahari has, along with Extract's two other largest shareholders, Rio Tinto International Holdings Australia Pty Limited (RIO.LN)(15%) and Polo Resources Limited (PRL.LN)(10%), irrevocably committed and agreed to subscribe at the issue price, for any additional New Shares not subscribed for by the other holders of shares in Extract, in the same proportion to their current holding in Extract.

-By London Bureau, Dow Jones Newswires; Contact Ian Walker; +44 (0)20 7842 9296; ian.walker@dowjones.com