Business update

Business update

Watermark Global

13 September 2012

Watermark Global Plc

(“Watermark” or “Company”)

Business Update

Watermark Global Plc (AIM: WET), a company listed on AIM with a focus on Acid Mine Drainage treatment and coal briquetting in South Africa, provides an update on the development of its associate company, Mine Restoration Investments Limited (“MRI”), which is listed on the Johannesburg Stock Exchange

Operations

The implementation of MRI’s Coal Briquetting project is progressing well and first production is anticipated by February 2013. The pilot briquetting plant will be moved to site in the next few weeks in order to commence production of sample batches for final off-take evaluation and specification. This information is required under the existing off-take agreement to enable potential consumers to evaluate the product. By implementing the pilot plant ahead of the main production facility, MRI will be in a position to assess market requirements and make final adjustments to the process before entering into full production.

Financing

Watermark signed a loan agreement with Trinity Asset Management (Pty) Ltd (“TAM”) as part of the capital raising process when listing MRI in June 2012. Under the loan agreement, TAM agreed to place approximately 105 million MRI shares at a minimum value of R0.19 per share by 12 September 2012 in order to repay the loan. Should the shares be placed at a value of more than R0.19 per share, Watermark would receive 50% of the additional value. Watermark also had the option of taking ownership of any of the MRI shares not placed by 12 September 2012.

To date TAM has successfully placed approximately 25% of the shares at an average price of R0.25 per share, a R0.06 premium to the minimum placing price. Accordingly, Watermark will not only receive the consideration for these shares and half of the placing premium but also interest of R1.1million. The mid-market price of shares in MRI was R0.28 at close of business on 12 September 2012. In view of the fact that MRI shares continue to trade at a premium to their issue price, the placement date for the balance of the shares has been extended to 12 January 2013. TAM is proposing to place the balance of the MRI shares with strategic investors in South Africa but in view of the strengthening prospects of MRI and the price at which MRI shares are trading the Watermark Board will keep the position regarding the remaining MRI shares under review and may elect to take ownership of them.

A further update will be provided as appropriate.

Enquiries

Watermark Global plc	Â
Peter Marks, Chairman		Tel: + 44(0) 20 7233 1462
Jaco Schoeman, Non-Executive Director		Tel: + 44(0) 20 7233 1462
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Investor Relations
Charles Zorab		Tel: + 44(0) 20 7233 1462
[e-mail]
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Nominated Adviser: Cenkos Securities
Ian Soanes		Tel: [phone]