Sylvania Resources Limited ('Sylvania' or the 'Company')

(ASX/AIM: SLV)

Issue of Shares and Options

Issue of Shares under Share Plan

Sylvania announces that in accordance with its long term employee incentive program and its shareholder approved Employee Share Plan it has today issued 950,000 ordinary Shares ('Shares') under the terms of this Plan at an issue price of $1.63 per share to employees and consultants of the Company. 

The Shares issued today under the terms of the Sylvania Resources Share Plan may not be sold or otherwise dealt with until the later to occur of the following: 

• any loan in respect of the Shares is repaid; and

• in respect of: 

• 1. one half of the Shares issued under this Offer, at any time following the date which is 12 months after the date of issue of the Shares (18 August 2009) ; and

  2. the remaining one half of the Shares issued under this Offer, at any time following the date which is 24 months after the date of issue of the Shares (18 August 2010). 

Application has now been made for the admission to trading of 950,000 Shares on the AIM Market of the London Stock Exchange ('Admission'). Admission is expected to occur on 22 August 2008.

Following these issues, Sylvania now has 180,962,273 Shares on issue.

Issue of Options under Option Plan

In addition, also in accordance with its long term employee incentive program and its shareholder approved Employee Option Plan Sylvania has today issued 3,383,000 Options under the terms of the Plan to employees and consultants of the Company. 

The Options were issued under the terms of the Employee Option Plan; they will not be quoted on ASX/AIM, and may not be transferred without the prior written approval of the Board of Sylvania. The Options are exercisable at $1.63 each on or before 30 June 2011. The employees may only exercise their Options in the following tranches:

    in respect of:

1. one half of the Options issued, at any time following the date which is 12 months after the deemed date of issue of the Options (18 August 2009); and
   
2. the remaining half of the Options issued, at any time following the date which is 24 months after the deemed date of issue of the Options (18 August 2010).

Shares which are issued as a result of the exercise of Options granted under the Option Plan will rank pari passu in all respects with all Shares on issue, and the Company will apply for quotation of those Shares on ASX.

Offer to Issue of Shares and Options to Directors

In addition to the above share and option issues the Board has resolved to seek shareholder approval for the issue, under the Employee Share Plan and Employee Option Plan, of a total of 700,000 Shares and 2,250,000 Options to directors of the Company. It is proposed that these Shares and Options will be issued to the directors on the same terms and conditions as the Shares and Options today issued to employees and consultants of the Company as detailed above.

The issue of these Shares and Options to directors is subject to shareholder approval. Approval for these issues will be sought at the next Sylvania shareholder meeting which is scheduled for 28 November 2008. A notice to convene this meeting, including full details of the proposals described above, will be sent to shareholders in due course.  

For further information please contact:

In South Africa

Terence McConnachie

CEO

Sylvania Resources Limited

(+27 11) 673 1171

In Australia

Richard Rossiter

Chairman

Sylvania Resources Limited

(+612) 8249 4542

In United Kingdom

Richard Brown

Ambrian Partners Limited

(+44) 207 6344709

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