TORONTO, Jan. 10 /CNW/ - sxr Uranium One Inc. (formerly Southern Cross Resources Inc.) is pleased to inform stakeholders that shareholders of Sub Nigel today voted overwhelmingly in favour of the merger of their company with the New Kleinfontein Gold Mining Company, a wholly owned subsidiary of Uranium One, with 99.63% of votes in favour of the transaction. The merged company brings together Uranium One's South African East Rand gold assets with those of Sub Nigel. Sub Nigel will retain its listing on the JSE, and will be re-named Aflease Gold. Aflease Gold will hold the high quality Modder East project, as well as Sub Nigel's East Rand and Free State gold assets. Aflease Gold will trade as "AFO" and will be 80% owned by Uranium One, and 20% by Sub Nigel shareholders. Said Uranium One CEO and President, Neal Froneman, who is also to be the new CEO of Aflease Gold: "Aflease Gold already has an exciting portfolio of assets, and our immediate focus is to identify more projects like Modder East in this highly prospective area. Our strategy remains to develop mines in this near-to- surface, low technical risk, and high-margin mining environment. "A bankable feasibility study on Modder East is due for completion in April, and that will place the Board of Aflease Gold in a position to take a decision on the project. "This is a significant step in the consolidation of the East Rand goldfields, and our strategy will be to continue the consolidation process as long as it is value accretive for our shareholders. "We will also focus on realizing the merger synergies of Modder East and Sub Nigel, and as such we have already assembled a skilled team to run Aflease Gold." Froneman said "Uranium One shareholders have overwhelmingly said they want us to focus on uranium but also retain the current gold exposure, which we do through our 80% stake in Aflease Gold. The creation of Aflease Gold is therefore also a further important step in the strategy of creating uranium focus in Uranium One. Any further gold acquisitions will be done under the Aflease Gold umbrella, using Aflease Gold equity for these acquisitions." This transaction has crystallized the value of Uranium One's East Rand gold assets at approximately C$140m million (R725m), based on the closing price of Sub Nigel on the JSE on Monday 9th January, and the transaction provides the flexibility for Uranium One to leverage off its shareholding position in Aflease Gold. The transaction is expected to be completed this month. Forward-looking statements This announcement contains certain forward-looking statements. These forward-looking statements are subject to a variety of risks and uncertainties which are beyond sxr Uranium One's control (including among others regulatory and shareholder approval and market fluctuations), which could cause actual events or results to differ materially from those anticipated in such forward- looking statements. In this announcement, predictions about the future strategy and future consolidations are forward-looking statements. Readers should not place undue reliance on forward-looking statements. Notice To Investors This announcement does not constitute an offer to sell or an invitation to purchase or subscribe for any securities. The securities offered by way of exchange pursuant to the Transaction have not been and will not be registered under the U.S. Securities Act of 1933, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from the issuer or selling security holder and that will contain detailed information about the company and management, as well as financial statements. To receive the Corporation's news releases by email, contact John Fraser, Corporate Communications at john(at)aflease.com or Don Falconer, VP - Marketing and Investor Relations, at dfalconer(at)southerncrossres.com The TSX has neither approved nor disapproved of the information contained herein. %SEDAR: 00005203E