raises handy war chest

SLV just raised itself a handy war-chest "...to pursue PGM acquisition and expansion opportunities that it has already identified in South Africa and for working capital to assess others..."



30 May 2007


PLACEMENT

Sylvania Resources Limited (“Sylvania” or “the Company”) is pleased to announce that 22,900,000 fully paid ordinary shares have been placed with institutional and other investors at a price of £0.80p (A$1.92) per share. The placement will raise approximately £18.3 million (approximately A$44.0 million). Ambrian Partners Limited the Company's broker, has acted as placing agent with respect to the placing in the UK.

Sylvania will use the proceeds from the placing to pursue PGM acquisition and expansion opportunities that it has already identified in South Africa and for working capital to assess others.

Application will be made to the AIM market of the London Stock Exchange ("AIM") for 22,900,000 Shares to be admitted to trading on AIM. Admission of the shares to trading on AIM is expected to occur on or around 14 June 2007.

Sylvania now has 175,829,273 Shares in issue.


For further information please contact:

In South Africa
Terence McConnachie
CEO
Sylvania Resources Limited
(+27 11) 803 7214

In Australia
Grant Button
Executive Director
Sylvania Resources Limited
(+618) 9481 8711

In United Kingdom
Richard Brown
Ambrian Partners Limited
(+44) 20 7776 6417
Laurence Read/Leesa Peters
Conduit PR
(+44) 20 7429 6605/(+44) 20 7429 6600