Investment in Majedie Asset Management Limited

3 May 2006

MAJEDIE INVESTMENTS PLC

Investment in Majedie Asset Management Limited

The Board of Majedie Investments PLC ("the Company") announces that, as a
result of the continued strong performance of the specialist fund management
business of Majedie Asset Management Limited, and under the terms of the
Shareholder Agreement signed in 2002 to establish the business, the Company's
holding in Majedie Asset Management has been reduced and all of the debt
capital repaid.

The Majedie Asset Management business has continued to grow strongly with
increased profits over the last six months. Assets under management have grown
from £2.3bn as at 30 September 2005 to over £3bn and the business has generated
a significantly greater profit before tax during the six months to 31 March
2006 compared with the first half of last year. As profitability has increased
so the Company's shareholding has reduced in line with pre-agreed targets. In
December last year the Company's shareholding in Majedie Asset Management
reduced from 55% to 51%. The strong momentum of the business, including
performance fee income, in recent months has resulted in Majedie Asset
Management being able to repay the outstanding preference shares originally
advanced to help finance the initial growth phase of the business. A repayment
of £2.1m of capital and £0.7m of other payments were made to the Company on 27
April 2006. On 28 April the Board of Directors and shareholders of Majedie
Asset Management certified that, as a result of the repayment of the debt and
the business achieving certain pre-agreed levels of earnings, Majedie
Investments' shareholding would reduce from 51% to 30% with effect from 30
April 2006. The Shareholder Agreement does not provide for any further
reduction in the Company's shareholding.

As a result of the change in ownership Henry Barlow and Gill Leates have
resigned from the Board of Majedie Asset Management as originally envisaged.
The Board of directors will therefore now comprise James de Uphaugh, Chris
Field and Robert Clarke (non-executive).

As at 30 September 2005 the directors of Majedie Investments PLC assessed the
value of the investment in Majedie Asset Management to be £10.1m comprising £
2.1m in respect of the preference shares and £8m in respect of the equity
investment. The directors formally reconsider the value of the investment each
year as at 30 September. The structure of the original earnings targets
referred to above was such that the required increase in the level of earnings
was significantly greater than the concomitant reduction in the level of the
Company's shareholding. Therefore the directors believe that the value of the
investment in Majedie Asset Management, when assessed later this year, is
unlikely to be less than the value of £10.1m assessed as at the end of the last
financial year despite the Company's shareholding having reduced to 30%.

It should be noted that, in accordance with generally accepted accounting
principles, the assessed investment value referred to above was not included in
the group consolidated balance sheet as at 30 September 2005 and not included
in the net asset value which has subsequently been announced each week. In
future the investment will be accounted for on an equity basis whereby the
Company's 30% share of the net assets of Majedie Asset Management will be
included in the group balance sheet. The assessed value of the investment will
continue to be excluded from the group balance sheet and also excluded from the
announced net asset value.

Chairman Henry Barlow commented: "My fellow directors and I are very pleased
that targeted levels of profitability have been reached much earlier than was
envisaged at the launch of the business three years ago. We congratulate the
management team and staff on this considerable achievement and look forward to
continuing our close association with the company."

For further information contact:

Robert Clarke           tel: [phone]

Chief Executive         [e-mail]