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SPANJAARD LIMITED - Disposal of Certain Equipment and a Property and Withdrawal of Cautionary Announcement

Release Date: 22/11/2013 07:05:00      Code(s): SPA     
Spanjaard Limited
(Incorporated in the Republic of South Africa)
(Registration number 1960/004393/06)
Share code: SPA ISIN: ZAE000006938
("Spanjaard" or "the company")

1. Introduction
   The board of directors of Spanjaard wishes to advise that it has entered into interdependent agreements with
   Rand Refinery Proprietary Limited ("the Purchaser") in terms of which it will, through its wholly-owned subsidiaries,
   Coppermet Proprietary Limited and Slip Products (SA) Proprietary Limited, dispose of certain equipment and the
   property on which the equipment is situated ("the assets") to the Purchaser ("the disposal").

2. Nature of business and rationale for the disposal
   Slip Products (SA) Proprietary Limited is a property holding company. Coppermet Proprietary Limited is a manufacturer
   and supplier of synthetic graphite powders, atomized metal powders, metal fibers and chips. The disposal will allow
   Spanjaard to concentrate on its core business. Coppermet will retain the graphite operations.

3. The disposal
   Spanjaard has disposed of the assets to the Purchaser for a consideration of R6,35 million, to be settled in cash upon
   transfer of the assets into the name of the Purchaser. The sale proceeds will be utilised to settle the existing bond of
   R177 696 on the property, and to improve cash and cash equivalents.
   The effective date of the disposal is 19 November 2013.
   The disposal is unconditional and "voetstoots".

4. Financial effects of the disposal
   The table below sets out the financial effects of the disposal on the headline earnings, earnings, tangible net asset
   value and net asset value per share in Spanjaard based on the published unaudited financial statements of the
   company for the six months ended on 31 August 2013, as if the disposal had been effective on that date. The
   financial effects are the responsibility of the directors of Spanjaard and are prepared for illustrative purposes only and,
   because of their nature, may not fairly present the financial position of the company, changes in its equity, and results
   of its operations or cash flows after the disposal.
                                                                                 Before the            After the          % change
                                                                                   disposal             disposal         increase/
                                                                       Note         (cents)              (cents)        (decrease)
   Headline earnings per share                                      1, 2, 3            20,4                 35,3                73
   Earnings per share                                               1, 2, 3            20,4                 50,7               149
   NAV and NTAV per share                                           1, 2, 3           519,8                550,1                 6
   Number of shares in issue                                                      8 142 850            8 142 850                 ?

1. On the assumption that the disposal was effective on 31 August 2013.
2. The net asset value of the assets being sold amounts to R4 608 362 and the profit attributable to these assets is R1 741 845. The
   related profits and tax effects were adjusted for in the calculation of HEPS.
3. The effective tax rate of the company would have reduced from 32% to 1,5%. This was due to movements in the deferred tax
   liabilities, income tax and capital gains tax.

5. Withdrawal of cautionary announcement
   The cautionary announcement dated 11 October 2013 is hereby withdrawn.

By order of the board

22 November 2013

Arcay Moela

Date: 22/11/2013 07:05:00 Supplied by www.sharenet.co.za                     
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