23 May 2008

Investika Ltd

('Investika' or 'the Company')

Disposal of Non-Core Investments

The Company has entered an Agreement with European Nickel plc ('European Nickel'), a non-related AIM quoted company, to dispose of certain of its non-core investments in order to raise additional moneys to continue the development of its 94% direct and indirect interest in the Puquios copper cathode project in Chile. This project is presently undertaking the final stages of completing a bankable feasibility study on a project expected to require capital expenditure of approximately US$130 million to bring into production.  

Accordingly, the Directors have resolved to sell part of the Company's investment equity holdings, namely 3,391,019 Toledo Mining Corporation plc shares (consideration of US$13.25 million at £2 per share), its 18.7% equity and debt investment in Berong Nickel Corporation (BNC) (consideration of US$25.75 million) and its small interest in China Nickel Corporation (CNC) (consideration - US$1), for a total consideration of US$39 million. BNC carries on a direct nickel ore shipping operation on the island of Palawan, Philippines. CNC provides marketing support services to BNC.

In the financial year ended 31 December 2007, the Company's share of attributable profits from these assets was AUD$3.5 million. The acquisition costs of these investments total AUD$13.3 million and the carrying value in the Group's balance sheet at 31 December 2007 was AUD$25.5m.

Expenditure by the Investika group to date on the Puquois project, together with budgeted spending on the feasibility study and project-related option fees in the remainder of calendar 2008, totals AUD$30 million. In addition, it will be required to arrange funding for the equity component of the development costs once the bankable feasibility study is completed. By disposing of the above-mentioned investments, a very significant contribution to the Puquios costs will be achieved, thus increasing the possibility that the balance of the required moneys will be funded by debt, rather than by an equity capital raising or diluting the Company's equity position in the project.

Completion of the Agreement is subject to certain conditions being fulfilled, including Investika's joint venture partners in the Berong nickel project not exercising their pre-emption rights, certain changes to the board of Toledo Mining Corporation plc being effected and, under the AIM Rules, Investika shareholder approval.  Completion is scheduled to take place on or within 2 days of these conditions being fulfilled (or waived).

Investika will not receive the consideration immediately on completion of the Agreement. The total consideration for the assets being sold has been converted into US dollars and on completion of the Agreement will be held in an escrow account under the control of Investika's and European Nickel's solicitors. Interest on this escrow account accrues for the benefit of European Nickel.

In certain circumstances, which will not be determined until 30 September this year, Investika may become obliged to take shares in European Nickel in lieu of the cash consideration. This will be the case if the weighted average price per European Nickel share for the 20 trading days prior to 30 September 2008 is greater than £0.60, in which case Investika will be issued 36,290,909 ordinary shares in European Nickel. Investika has agreed to use its reasonable endeavours to sell any such shares within twelve months of being issued such shares. If the weighted average price per European Nickel share for the 20 trading days prior to 30 September 2008 is £0.55 or more but not more than £0.60 then Investika can elect whether it wishes to take the consideration in cash or by way of 36,290,909 ordinary shares in European Nickel. If at any time prior to 30 September 2008 the weighted average price per European Nickel share for the 20 previous trading days is £0.55 or more Investika can elect to take the consideration early as 36,290,909 ordinary shares in European Nickel. If Investika takes shares, any future profit on disposal above £0.55 per share will be split 50/50 between Investika and European Nickel.

Up to 30 September 2008, European Nickel can elect to pay out of the escrow account all or part of the cash in order to satisfy the deferred consideration to Investika. If this is done the number of shares that Investika may receive (as set out above) will be pro rated.

Under English law, prior to the issue of shares in European Nickel, European Nickel will need to have a formal third party valuation of the interests it is acquiring. If this valuation indicates that these interests are valued at less than the consideration to be paid to Investika, then European Nickel may settle the deferred consideration wholly in cash or part cash and the remainder being settled in European Nickel shares, up to the valuation.

Chris Kyriakou (a director of the Company) and Murray Morgan Investments Limited are parties to the Agreement and have also agreed to sell their shares in Toledo Mining Corporation plc for £2 a share payable in cash on completion of the Agreement.

The Company retains its investing strategy previously approved by shareholders and will continue to look to invest in a range of prospective resource investment opportunities.

Under AIM Rules, the proposed sale of these investments requires a Shareholders' Meeting to be called to approve the sale.  Accordingly, a circular convening a General Meeting of Shareholders and containing a Proxy Form has been sent to shareholders and is available on the Company's website at www.investika.com.

Enquiries to:

Chrisilios Kyriakou, Chief Executive Officer

Investika Ltd

Telephone: 020 7514 1480

James Joyce

WH Ireland Limited

Telephone: 020 7220 1666

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