Stone group advises intention to accept offer

MAJOR FOCUS LAVERTON SHAREHOLDER INTENDS TO ACCEPT FOCUS OFFER

• Stone Group has advised Focus that it intends to accept the Offer in respect of its 14.4% holding in Focus Laverton, in the absence of a superior proposal

Focus Minerals Ltd (“Focus”) [ASX: FML] and Focus Minerals (Laverton) Limited (“Focus Laverton”) on 15 March 2013 announced an unconditional recommended off-market takeover offer by Focus for all of the remaining Focus Laverton shares it does not currently own (“Offer”).

On 20 March 2013, Stone Mining Limited (“Stone”) confirmed to Focus that it is Stone’s intention to accept the Offer for all of its shareholding in Focus Laverton, in the absence of a superior proposal. Stone holds 178,384,718 Focus Laverton shares representing a 14.4% shareholding in Focus Laverton.

As foreshadowed in Focus’ Bidder’s Statement, Focus intends to enact its rights to proceed to compulsory acquisition once Stone accepts the Offer and the necessary conditions to proceed to compulsory acquisition are satisfied.

The consideration being offered to Focus Laverton shareholders is 1 Focus share for every 0.725 Focus Laverton shares.  At the closing price of Focus shares on 14 March 2013 of 2.0 cents per share, the Offer represents an implied offer price of 2.8 cents per Focus Laverton share.[1]

The independent expert appointed by Focus Laverton, BDO Corporate Finance, has opined that the transaction is fair and reasonable to Focus Laverton shareholders.

The Independent Director of Focus Laverton, Mr Geoff Stanley, recommends that all Focus Laverton shareholders accept the Offer, in the absence of a superior proposal.

The transaction will consolidate the Laverton assets into Focus, creating an Australian gold producer with targeted annual gold production of 200,000oz per annum from 2014, a combined Mineral Resource base of 4.3Moz of gold, and outstanding growth potential across two major Western Australian mining regions.