Issue of Equity

RNS Number:1680I
GVM Metals Ltd
21 November 2007


                               GVM METALS LIMITED

                                Issue of Equity


GVM Metals Limited ('GVM' or the 'Company') is pleased to announce that it has
today completed a conditional fundraising of #42.25m by way of a placing of
65,000,000 new ordinary shares in GVM at 65p per share (the 'Placing').


The monies have been raised from clients of Blue Oar Securities Plc and Mirabaud
Securities Limited, as joint brokers to the Company. The transaction will be
used to fund the acquisition and development costs relating to the Company's
Mooiplats and Baobab projects, as well as for exploration and acquisition
expenditure, working capital and expenses.


The Placing is subject to the passing of certain resolutions at the Company's
Annual General Meeting ("AGM") to be held in Perth, Western Australia on
Wednesday, 28 November 2007 at 10.00 am, providing the required capacity for the
Placing.


Subject to and following approval of resolutions at the AGM, application will be
made for the new ordinary shares that are the subject of the placing to be
admitted to trading on AIM, ASX and the JSE as required.


The Placing Shares will represent approximately 23 per cent. of the enlarged
share capital immediately following admission of the Placing Shares to trading
on AIM.


Commenting on the announcement, Simon Farrell, managing director said, "We are
very pleased to announce this significant milestone for the Company. The scale
and pricing of this placement demonstrates the support for the potential of the
Company's assets in a currently testing market. The proceeds of the transaction
will be utilised in accelerating GVM's projects over the next 18 months in order
to position the Company as a significant coal producer in South Africa."


For more information contact:

Simon Farrell, Managing Director  GVM                        [phone]
                                                             [phone]

Romil Patel                       Blue Oar Securities Plc    [phone]

Jos Simson/Arabella Hobbs         Conduit PR                 [phone]


www.gvm.com.au


                      This information is provided by RNS
            The company news service from the London Stock Exchange
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