Trading Statement

RNS Number:6462I
GVM Metals Ltd
28 November 2007



ANNOUNCEMENT                        28 November 2007
--------------------------------------------------------------------------------



                                 GVM METALS LTD

                            ("GVM" or the "Company")



                                PROJECT UPDATES

Since the last trading update released on 10 September 2007, the Company is
pleased to announce that significant progress has been made towards the
development of the Company's coal projects in South Africa.  An update on work
in progress and of that planned on each project is set out below:



Baobab (Soutpansberg Coalfield)

Gemecs (Pty) Limited ("Gemecs"), the Competent Person, have completed an initial
geological evaluation of the Tanga and Fripp properties based on the data
obtained from Exxaro Limited.  They have also completed a conceptual mine plan.
 The Competent Person has completed a Fripp & Tanga Resource Statement which is
available on the Company's website.  The results are as follows:


                                                               Million Tonnes
Measured                                                            39.7
Indicated                                                           44.0
Inferred                                                            263.0
Reconnaissance                                                      366.4
TOTAL                                                               713.1



Within this total resource, the Competent Person has identified potential
opencast resources of 156 million tonnes in the following categories:


                                                               Million Tonnes
Measured                                                            39.7
Indicated                                                           43.0
Inferred                                                            66.4
Reconnaissance                                                       7.3
TOTAL                                                               156.4



The Company will now lodge an amendment to the existing prospecting right to
allow for bulk-sampling, mining right application, conceptual feasibility study
and infill drilling starting in early 2008.

GVM will utilise additional exploration information from Exxaro to determine the
potential resources at the other properties comprising the Baobab Project where
the boreholes have been drilled and in parallel will commence exploration of the
other properties in early 2008.

GVM appointed East Coast Maritime (Pty) Ltd (ECM) to undertake a pre-feasibility
study to determine the logistics requirements needed to transport coking coal
from the Thuli and Baobab projects in the Limpopo Province.  The intent is to
ultimately export 10 million tonnes per annum (Mtpa) in total from both
projects.  It is envisaged that 3 Mtpa will be exported from Thuli, and 7 Mtpa
from the various Baobab properties.

The study completed by ECM encompassed the following:

*         Existing railway network/s and railway capacity - the study reviewed
current rail infrastructure and operations which included perway and signaling,
train control, gradients, structures and rolling stock in terms of wagons and
locomotives.

*         Conceptual route determination for a new private siding/s linking
Spoornet's network with a rapid coal loading facility at the Thuli and Baobab
plants - 3 proposals have been selected:

          o        Thuli Link - 55km of new rail line up to Mussina;

          o        Baobab Link - 15km of new rail line to link to main line; and

          o        Mopani Balloon - 3km circular siding at the town of Mopani.

The report proposes design parameters for the railway lines, and suitable yard
layouts at the plant for loading of trains.

*         Environmental Pre-Feasibility - The report includes a review of the
legislative setting, pre-development, project activities and environmental
issues related to the 3 selected sidings.  During the next phase of
investigations landowner requirements, mineral rights, underground mining
activities and acceptance and approval conditions imposed by various authorities
are to be undertaken;

*         Technical evaluation of alternative routes to Matola (TCM) in Maputo
in Mozambique and 2 route options to Richards Bay.  Rail distance, single or
multiple line, ruling gradient, axle loading, traction, operational methodology
and existing train crossing facilities were analysed to identify routes 1
(1275km) and route 4 (734km) as optimal from a shortlist of 4 alternative
routes.

*         Review of the port infrastructure at:

          o        TCM - Maputo, Dry Bulk Terminal;

          o        Richards Bay Dry Bulk Terminal; and

          o        Richards Bay Coal Terminal.

The current operations of the Ports were examined including tippler capability,
stock-piling, ship loading performance, and Port, Berth and Draft restrictions.

A Cooperation Agreement is being developed with Transnet Freight Rail which is
in the process of finalization.  The term of agreement is that Transnet Freight
Rail will assist GVM to acquire freight rights based on production of 1.5
million tonnes in 2009, 4-5 million tonnes in 2010 and 2011, and 10 million
tonnes in 2012.



Mooiplaats

The infill drill program has now been completed on the Mooiplaats, Klipbank and
Adrianople farms which collectively comprise approximately two thirds of the
granted mining and prospecting rights and less than one third of the total area
both granted and under application.

Competent Persons SRK have provided an interim Coal Resource and Coal Reserve
Estimate as follows:
                 GTIS*(mt)        SAMREC        Geological     Model Loss    Layout Loss       MTIS**
                                                   Loss                                      (Reserves)
  Mooiplaats        25.7         Measured          10%             2%            15%            19.3
   Klipbank         48.8         Measured          10%             2%            15%            36.6
  Adrianople        28.8        Measured /         15%             3%            15%            20.2
                                 Inferred
                   103.3                                                                        76.1



*GTIS - Gross Tonnes in Situ (Resources)             **MTIS - Mineable Tonnes in
Situ (Reserves)

The first proposal has been received from potential mining contractors.  Based
on this proposal, the Company is confident that mining costs will be in the
projected range of ZAR 90-100 per tonne of Run of Mine (ROM) Coal.  Washing and
de-stoning estimated costs remain in the range of ZAR 20-25 per tonne.

The original plan was to provide principally ROM coal to Eskom, but with the
rapid escalation of prices at Richards Bay Coal Terminal (RBCT), it is now
planned to wash all the coal to produce an export fraction (75%) and a domestic
thermal fraction (25%).  FOB cost RBCT is expected to be of the order of USD
35-40 per tonne.

The production plan is to commence operations in Q3 2008 with a 18-24 month ramp
up to final planned levels of phase 1 of 4.5 million tonnes of export and 1.5
million tones of domestic thermal.  Expansion of production beyond this level
will depend on exploration results to be conducted in 2008.



Thuli (Limpopo Coal Field)

GVM have commenced with the exploration activities at the Thuli project to
confirm the potential qualities resource and structure with intention of
developing an indicated resource early in the third quarter of 2008. This will
be followed by a mining right application, conceptual feasibility study and
infill drilling.  Currently Thuli has a JORC compliant inferred resource of 352
million tonnes and it is expected that this will be significantly expanded.



Holfontein & Wilderbeesfontein

The Mining Right Application is underway with approval expected from the
Department of Mineral and Energy (DME) by the third quarter of 2008. Subject to
permitting from the DME, the Company expects mine development / production to
commence in late 2008.  The Environmental Impact Assessment (EIA) /
Environmental Management Plan (EMP) is also in progress with completion expected
in the 1st Quarter of 2008 for submittal to the DME.

The Company intends to develop Holfontein and the adjacent Wilderbeesfontein as
a single bloc.  Drilling to bring the latter into a measured resource will
commence during the first quarter 2008.  To ensure contiguity with
Wilderbeesfontein, it is also expected that further exploration drilling on
Holfontein will commence early in 2008.  This is to re-confirm the major dykes
and sills and ensure that structural interpretation on both properties is
consistent.

The formal agreement enabling GVM to commence prospecting work on the
Wildebeesfontein prospect consisting of 550 ha contiguous with GVM's Holfontein
coal project has been signed.

Dependent on the availability of drill rigs, GVM management expect drilling on
this project to commence towards the end of the first quarter of 2008. The
project acquisition price will be based on the mineable coal in terms of JORC/
SAMREC codes. The project acquisition price of US$0.50 per ton In-Situ coal will
be determined for seam 4 and seam 5 coal with widths greater than 1.4 metres and
seam 4 coal with a Calorific Value exceeding 23MJ/kg.



Tshikunda Project

The Heads of Agreement for the acquisition of the 32,000 ha prospect in the
Pafuri coal field in Limpopo has been converted into formal agreements which GVM
management expect to complete by the end of November 2007. The Section 11
application to the Department of Minerals and Energy for GVM's acquisition of
60% of Tshikunda Mining (Pty) Ltd, the company owning the Tshikunda Prospecting
Rights, was submitted during the third quarter.

Exploration on the project in the form of an Aeromagnetic study is expected to
commence in the fourth quarter of the 2008 financial year.



Sekoko Project

GVM have agreed to acquire an additional 7,000 ha in the Soutpansberg coal field
pending the satisfaction of suspensive conditions. The six farms constituting
the Sekoko project are located in the vicinity of GVM's Baobab coal project in
the Makhado district of the Limpopo province. The acquisition of 74% of the
Sekoko coal project for R55 million will be formalised in the second quarter of
the current financial year, with the Section 11 application following soon
thereafter. Exploration on the project will commence once the Section 11
approval for the transaction from the Department of Minerals and Energy has been
granted.

The Salaita and Telema properties lie on the same coal body as that at Fripp and
Tanga and it is believed that the resources identified on Fripp and Tanga will
be replicated.



Managing Director, Simon Farrell, said "clearly we are building up a very
substantial resource base and following recent capital raisings of some AUD 120
million we are well placed to fast track development of our Baobab and
Mooiplaats projects.  We are confident of resolving the various infrastructure
issues in the near future and with rapidly increasing coal prices, the Company's
prospects are very, very exciting."



Authorised by



SIMON J FARRELL

Managing Director







For more information contact:

Simon Farrell, Managing Director                GVM              +61 417 985 383    
                                                            or   +61 8 9322 6776

Nonkqubela Mazwai, Deputy Managing Director,    GVM              +27 83 690 9079

Petronella Gorrie                         The Event Shop         +27 82 827 8815

Leesa Peters / Jos Simson                   Conduit PR           +44(0) 20 7429 6606

Olly Cairns / Romil Patel            Blue Oar Securities Plc     +61 8 6430 1631
                                                                 +44(0) 20 7448 4400


www.gvm.com.au





Notes:  The information in this report as it relates to the geology,
geochemistry and geophysics, regarding Mooiplaats, has been prepared by Grant
van Heerden. Grant van Heerden has more than five years of experience in
estimation, assessment of, and evaluation of Mineral Resources and Ore Reserves
which are relevant to the style of mineralization under consideration. Grant van
Heerden is a Senior Coal Geologist with SRK Consulting. Grant van Heerden has
sufficient experience which is relevant to the style of mineralisation and type
of deposit under consideration and activities herein reported, to qualify as a
Competent Person as defined in the 2004 edition of the 'Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves' and Part
two of the AIM Guidance Notes for Mining, Oil and Gas Companies. Grant van
Heerden consents to the inclusion in this report of such information in the form
and context in which it appears.

The information in this report as it relates to geology of the Baobab Project
was overseen by J C Sparrow a Director of Gemecs (Pty) Ltd. Mr Sparrow is a
member of the South African Council for Natural Scientific Professions (400109/
03), with a BSc (Univ. of Natal), BSc Hons Geology. (Univ. of Johannesburg) and
a Chamber of Mines certificate in Rock Mechanics and qualifies as a competent
person in the field of activity being reported on and consents to the inclusion
of this information in the form and context in which it appears in this report.




                      This information is provided by RNS
            The company news service from the London Stock Exchange
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