ORA BANDA MINING LTD — Capital/Financing Update 2011

Mar 15, 2011

16 MARCH 2011

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ASX / MEDIA RELEASE

COMPANY UPDATE

Swan Gold Mining Limited (ASX: SWA) advises that the Board has been in continual negotiations with the Preferred Bidder since advising the market the ASX announcement of 11 January 2011. However, the parties were unable to agree on mutually satisfactory commercial terms and conditions for the Sale Agreement and negotiations with the Preferred Bidder have now ceased and the exclusivity arrangement with the Preferred Bidder has expired.

The Company was undertaking the marketing of the secured mining assets to evaluate the options available for those assets under instructions from the Creditor Trusts, MGMC Pty Ltd.

The Board will continue to explore all alternative options including equity recapitalisation, Joint Venture, marketing of the secured mining assets in whole or part and any other funding options that may be presented.

Further to ASX announcements of Stirling Resources Limited (ASX: SRE) of 15 March 2011 and 16 March 2011, the Board of Swan Gold would like to clarify that it has not made a decision to sell its mining assets, including Carnegie and Mt Ida, only to market those mining assets of the company and assess the options that are presented.

At this point in time we are unable to advise when Swan may recommence trading on ASX.

For more information: Keith Vuleta Director Tel: 08 6389 6800

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