2 November 2007

Minmet plc Dissolution of arrangements with Gold Oil plc

Minmet plc (“Minmet” or “the Company”) (AIM: MNT) announces that on 2nd October 2007, it agreed to terminate all arrangements with Gold Oil plc (“Gold Oil”) concerning oil and gas interests in Cuba and Latin America (“the Transaction”), following a re-evaluation of these interests by the Company’s board.

In particular, as some of the oil and gas opportunities which the Company is currently reviewing are in the U.S, the Minmet board considered that opportunities in the U.S. and Cuba could not be pursued by the same company due to the longstanding U.S. embargo on doing business in Cuba.

In consideration for the termination, Gold Oil will deposit its 8,300,000 ordinary Minmet shares with a broker, with instructions to have these shares placed in the market and the proceeds distributed to Minmet. Minmet will deposit its 22,950,000 ordinary shares in Gold Oil with a broker, with instructions to have these placed in the market and the proceeds distributed to Gold Oil. Both sets of shares are subject to lock in arrangements until February 2008, but such restrictions may be lifted with the appropriate consent.

As Gold Oil had an interest of 24.76% in Minmet at the time of the Transaction, the Transaction is a related party transaction under the AIM Rules for Companies.

Nothwithstanding the lock in arrangements, if the 8,300,000 Minmet shares were sold at the market price immediately prior to suspension, the total gross proceeds receivable by Minmet would be approximately £800,000 (the proceeds receivable by Gold Oil for its shares on the same basis would be £1.45 million). The proceeds receivable by Minmet compare to a total current book value of £3.15 million for the 22,950,000 Gold Oil shares and the interests in Cuba and Latin America. However, Westcoast Group Limited (“Westcoast”), a 15.67% shareholder in Minmet, has guaranteed to make good any loss to the Company (“the Westcoast Guarantee”). The Westcoast Guarantee will be secured by a charge over certain assets which will, in the opinion of Minmet’s board, be sufficient to cover the Company’s maximum possible loss under the Transaction. Given Westcoast’s shareholding in Minmet, the Westcoast Guarantee is also regarded as a related party transaction under the AIM Rules for Companies.

Commenting on the Transaction, Peter Maddocks, Chairman of Minmet, said:

“The opportunities which we are currently reviewing in the U.S. have acted as a catalyst for the companies to terminate the arrangements agreed in February of this year. Minmet had not previously intended to divest itself of its interests in Cuba and Latin America arising from agreements with Gold Oil, but in the present circumstances, the arrangements in place were no longer appropriate”.

Accordingly, the directors of Minmet consider, having consulted with the Company’s Nominated Adviser, that in all the circumstances, the terms of the Transaction are fair and reasonable insofar as the Company’s shareholders are concerned.

In addition, Peter Gardener, who is the only director considered by the Company’s board to be independent with respect to Westcoast, considers, having consulted with the Company’s Nominated Adviser, that in all the circumstances, the terms of the Westcoast Guarantee are fair and reasonable insofar as the Company’s shareholders are concerned.

Minmet’s shares have been suspended since 11th October 2007 pending this announcement. Consequently, Minmet has requested that trading in the Company’s shares be resumed immediately.

Shareholder Notifications

On 20th August 2007, the Company announced that Westcoast and Ridgelane Limited (“Ridgelane”) together acquired, on the same day, 6,900,000 ordinary shares of Euro 0.01 cents each in the capital of the Company at a price of 18 pence per share, which represented a 44% premium over the then mid-market share price of 12.5 pence.  The interest purchased represents a holding of 7.48% in the Company’s issued share capital.

On 14th September 2007, the Company received notification that the 6,900,000 ordinary shares had been apportioned equally on the same day between Westcoast and Ridgelane and that Westcoast had simultaneously placed its entire shareholding, leaving it with no residual shares in the Company, and Ridgelane holding 3,450,000 ordinary shares, representing a holding of 3.74% in the Company’s issued share capital.

On 2nd October 2007, the Company received notification that, on the same day, Westcoast had acquired a total of 14,450,000 ordinary shares of Euro 0.01 cents each in the capital of the Company from Gold Oil and its subsidiary Gold Oil Caribbean Limited, at a price of 18 pence per share, which represented an 86.9% premium over the closing mid-market share price of 9.63 pence on that day. The interest purchased represents a holding of 15.67% in the Company’s issued share capital.  

For further information, please contact:

Peter Maddocks, Chairman, Minmet plc                                   +44 (0) 07846 587208

Nabarro Wells & Co. Limited, Nominated Adviser                   +44 (0) 20 7710 7400
Robert Lo/Richard Swindells