GORILLA GOLD MINES LTD — Capital/Financing Update 2012

Apr 15, 2012

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COMPANY ANNOUNCMENT

(ASX: MLI)

Update on Acquisition of Mining Leases

16 April 2012: Mintails Limited (ASX:MLI) (“Mintails” or “The Company”) provides this update to the announcement of 25 January 2012 regarding the purchase of four mining leases from West Wits Mining Limited (ASX:WWI, “West Wits”). At that time, Mintails announced that an offer to purchase in conjunction with it’s 50% partner, Galabyte (Pty) Ltd. for a consideration for $9 million was accepted by West Wits. The leases are located on the Western Witwatersrand basin of South Africa and confer the right to mine an area underground approximately contiguous with the area upon which Mintails’ “Ranfontein Cluster” of surface dumps exist. The leases contain stated JORC resources of 139,000 oz au and a JORC reserve of 58,800 oz au.

The signed binding proposal of 24 January envisioned a due diligence period of 30 days from the receipt of documentation from West Wits. Mintails confirms that it has completed and is satisfied with the due diligence undertaken on the Mining Leases.

After allowing an extension to the due diligence period, West Wits has agreed to conclude the transaction solely with Mintails, albeit on slightly modified terms. The following table delineates the key changes in the payment structure:

Instalment	Timing	As at 25 Jan 2012Mintails obligation50%	As at 16 April 2012Mintails obligation100%
Upfront Payment	Completion ofTransactionDocuments	A$ 4 million	A$ 2 million
First Instalment	6 months aftercompletion	A$ 1 million	A$ 1 million
Interim Instalment	9 months aftercompletion		A$ 1 million
Interim Instalment	12 months aftercompletion	A$ 1 million*	A$ 1 million
Interim Instalment	15 months aftercompletion		A$ 1 million*
Final Payment	After transfer ofleases+	A$ 3 million	A$ 3 million

+Paid progressively based on tonnage of ore processed.

The Upfront payment is currently held in escrow pursuant to the initial agreement and will be applied to the Upfront Payment upon completion of transaction documentation. Each

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subsequent instalment requires a guarantee to the reasonable satisfaction of West Wits to be in place by the payment of the preceding payment.

Mintails will be granted an Interim Mining Contract to facilitate mining prior to the legal transfer to the leases. The final instalment is subject to the receipt of regulatory approval for the transfer of the leases. The final payment is paid progressively based linearly on tonnage of ore derived from the leases processed.

The transaction is subject to any regulatory approvals. The upfront payment is unaffected by such approvals as it secures immediate access to the resource.

On behalf of the Board

Mark Brune

Chairman: Mintails Limited

About Mintails Limited

Mintails Limited (ASX Code: MLI) is an Australian listed company with management and operations in South Africa. Mintails processes and recovers gold and proposes to recover uranium from surface tailings resources which are present on the West and East Rand of South Africa’s historic Witwatersrand Basin. To find out more, visit Mintails at: www.mintails.com

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