ASX ANNOUNCEMENT MEDIA RELEASE 26 NOVEMBER 2012


Binding Heads of Agreement to terminate Gold Rights Agreement and for buy-back of shares held by the Kagara Group in Mungana Goldmines Ltd Introduction

Kagara Limited (Administrators Appointed)* (ASX: KZL) is pleased to announce that KZL and its wholly-owned subsidiary, Mungana Pty Ltd (Administrators Appointed)* (MPL) have signed a binding Heads of Agreement (the HoA) with Mungana Goldmines Limited (ASX: MUX) to terminate the Gold Rights Agreement dated 16 April 2010 between the parties (the GRA).
Under the terms of the GRA, MUX was granted the rights to gold exploration, development and mining of gold ore bodies within KZL's far north Queensland tenements in the Chillagoe region, approximately 210 km west of Cairns. Whilst the GRA gave MUX rights to jointly access the tenements, the tenements have remained owned by KZL and MPL.
MPL currently holds 97,546,943 ordinary shares, or a 60.7% shareholding, in MUX.

Terms of the HoA