Re. Cash Offer for Uramin Inc

RNS Number:4897Y
Galahad Gold Plc
15 June 2007

                                Galahad Gold plc
                                   (Galahad)

                           Cash offer for UraMin Inc


Galahad announces that AREVA and UraMin Inc (UraMin) today entered into an
agreement in respect of a friendly cash offer for 100% of the share capital of
UraMin.  Galahad is the largest shareholder in UraMin with a holding of 7.3%
(6.4% fully diluted). UraMin shareholders are to be offered US$7.75 per share, a
premium of 21% over UraMin's 20-day weighted average trading price ending on
June 8, 2007.  Concurrently with the closing of the proposed offer UraMin
expects to declare a dividend payable in shares of the capital of Niger Uranium
Limited held by UraMin (where permitted by law) or a cash equivalent of the
value of such shares. AREVA's offer will be made through its wholly-owned
subsidiary CFMM Developpement.  The offer is conditional upon tendering of a
minimum of 75% of the outstanding UraMin shares on a fully diluted basis,
including the 5.5% shares held by AREVA.

Ian Watson, the Chairman of Galahad, commented: "UraMin has made incredible
progress during the last two years. Galahad invested #3.7m in UraMin in June
2005 shortly after UraMin's inception. AREVA's offer values Galahad's holding at
#81.5m, giving an internal rate of return of 172% per annum on its investment,
22 times the money Galahad invested only two years ago."

UraMin is an international mining company founded in February 2005 to acquire
and develop uranium properties throughout the world.  Its shares are traded on
the AIM market of the London Stock Exchange and the Toronto Stock Exchange under
the symbol "UMN".

Galahad acquired 20,266,666 shares in UraMin in June 2005 for US$5m (#3.7m).
Galahad is also a beneficial owner of an option to acquire 500,000 UraMin shares
exercisable at an average price of US$0.52 per share. In the event of the
AREVA's offer for UraMin becoming unconditional, Galahad would receive a cash
consideration of US$160.7m (#81.5m) and would realise a pre-tax profit of
US$155.7 (#77.8m). Tax will be payable on the profits.

Acceptance of the offer by Galahad will be subject to shareholder approval. Upon
the receipt of AREVA's offer, a circular and notice convening an EGM will be
dispatched to shareholders.

The Board of Galahad will consider the use of proceeds in due course. The
directors are currently reviewing the optimum way of returning cash to
shareholders and anticipate completing this review and announcing a significant
capital return before the end of 2007. The directors are also researching new
investment opportunities including diversification into soft commodities.

The macro-economic indicators for the market in soft commodities, including
grain and corn, are similar to those of gold and copper when Galahad first
invested in mining in 2003. Grain stocks are at an historic low, while the world
population is continuing to grow. The demand for better quality food is being
fuelled by strong economic growth in many countries, particularly China and
India. There is also additional pressure on supply as food resources are being
diverted towards ethanol production.  Investing in farmland could be an
attractive way to take advantage of the expected increase in the price of soft
commodities. Farmland that can be developed efficiently is a scarce resource and
prices are expected to continue to rise over a period of several years. Galahad
is carrying out research and due diligence to evaluate the investment case for
soft commodities and the optimum way of participating. When and if suitable
investment opportunities are found, the new investment strategy will be
presented to the shareholders in a General Meeting and Galahad will take such
additional actions as required by the relevant AIM Rules.


For further information please contact:

GALAHAD GOLD PLC                                          [phone]
Ian Watson

DRESDNER KLEINWORT                                        [phone]
Chris Treneman

PARKGREEN COMMUNICATIONS                                  [phone]
Simon Robinson


NOTES TO THE EDITORS:

Galahad acquired shares in UraMin Inc two years ago in June 2005 for #3.7m,
AREVA's offer values Galahad' holding at #81.5m before accounting for the value
Niger Uranium Limited shares to be distributed as dividend in specie.

Galahad is UraMin's largest shareholder. At the time of the acquisition in June
2005 Galahad's holding was equivalent to a 26% shareholding in the company.
Since inception in February 2005, UraMin raised approximately US$396m.  As a
result Galahad's holding was diluted down to 7.3% (6.4% fully diluted).

Galahad Group's investment performance beginning with the acquisitions made by
Shambhala Gold Limited (SGL) in June 2003 and continuing with investments by
Galahad following the reverse takeover of SGL in December 2003, averages an
internal rate of return of 70.9% per annum.

               Galahad Group Investment Return as at 15 June 2007

                        Company                Cumulative Cash    Return on   Annualised     Net Cash
                                                  Investment     investment     Return        Return
                                                   To Date       (# million)       %             %
                                                 (# million)

    1      Northern Dynasty Minerals Ltd            16.9            87.1         64.5%        416.6%
    2      Skaergaard Minerals Corporation           6.1              -           n/a        (100.0%)
    3      International Molybdenum plc              2.0            17.1        128.4%        764.2%
    4      UraMin Inc                                3.7            81.5        172.2%        2083.2%
    5      Quadra Mining Ltd                        17.1            18.0          n/a          5.6%
    6      Overheads                                 5.9
           Galahad Overall Return                   51.7           203.7         70.9%        294.6%


Notes to Galahad Group Investment Return:


General:

Annual return is calculated as Internal Rate of Return depending on the timing
of the respective cash outflows of which 1 and 2 were originated by Shambhala
Gold Ltd and which exclude any fair value adjustments resulting from the reverse
take-over of Shambhala Gold Ltd by Galahad Capital plc in December 2003.  All
amounts are stated gross of income and capital gains tax.

Group investment return is calculated by Galahad. BDO Stoy Hayward LLP have
reviewed the compilation of financial information included in the calculation of
annualised Internal Rate of Return as at 23 March 2007 and confirmed that the
methodology used in the calculation is appropriate and in accordance with
standard definitions.


1. Northern Dynasty Minerals

Cumulative cash cost of investment is stated as total cash invested by
individual subsidiaries within the Galahad Group and excludes any fair value
adjustment resulting from the reverse takeover of Shambhala Gold Limited by
Galahad Capital plc in December 2003. Return on investments is shown as total of
cash received on disposal net of transaction costs.


2. Skaergaard Minerals Corporation

Cumulative cash cost of investment is stated as the total of cash invested by
individual companies within the Galahad Group and excludes any fair value
adjustment resulting from the reverse takeover of Shambhala Gold Limited by
Galahad Capital plc in December 2003.


3. International Molybdenum plc

Cumulative cash cost of investment is stated as cash invested net of proceeds of
the sale by Galahad Gold plc of the Malmbjerg and Flammefjeld licences in
December 2004 to International Molybdenum plc.  Return on investment is stated
at market value of 2,978,558 shares of Quadra Mining Ltd as at 14 May 2007.


 4. UraMin Inc

Return on investment is based on the value of AREVA's offer for UraMin Inc
excluding proposed dividend.


5.  Quadra Mining Ltd

Cumulative cash cost of investment is stated as market value of 2,978,558 shares
of Quadra Mining Ltd as at 14 May 2007.  Return on investment is stated at
market value of 2,978,558 shares of Quadra Mining Ltd. Closing price of a share
in Quadra Mining Ltd as at 14 June 2007 on the Toronto Stock Exchange was
C$12.75.


6.  Overheads

Overheads are stated on a cash basis exclusive of interest paid and received,
costs of equity and debt financing, realised and unrealised exchange gains and
losses, and income tax paid.


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