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Release Date: 29/01/2015 11:52:00      Code(s): AFX     
African Oxygen Limited
(Incorporated in the Republic of South Africa)
(Registration number 1927/000089/06)
ISIN: ZAE000067120
JSE code: AFX
NSX code: AOX
(?Afrox? or the ?Company? or ?Group?)


In terms of the JSE Listing Requirements, companies are required to publish a Trading
Statement as soon as the company is reasonably certain the financial results for the current
reporting period will differ by more than 20% from those of the previous corresponding period.

In our SENS release of 28th November 2014, Afrox indicated that it was planning to embark
on a significant restructure in order to achieve a step change in profitability. This was set
against a back drop of soft demand for our products due to the prevailing economic conditions
and intense competition. Afrox believes that these conditions are likely to continue into the
medium term and that the restructure was a necessary step to ensure the sustainability of the
company into the longer term.

In keeping with the commitment made in the SENS announcement, where the Afrox board of
directors (?Board?) indicated that it would provide further guidance to the market regarding the
impact of the restructuring, the Board hereby confirms;

    -   Afrox?s consolidated revenue for the year ended 31 December 2014 is expected to be
        in line with the revenue earned in the previous financial year of R5 825 million.
    -   The ongoing impact of inflation and reduced volumes affected the Group?s EBITDA
        before any restructuring costs is expected to be between 5% and 10% below that of
        the previous year. (2014: R792 million to R836 million; 2013: R880 million)
    -   Earnings per share for the financial year ended 31 December 2014 are expected to
        be between 68% and 78% lower than earnings per share of the prior year. (2014: 22,0
        cents per share to 32,0 cents per share; 2013: 100,1 cents per share)
    -   Headline earnings per share for the financial year ended 31 December 2014, are
        expected to be between 57% and 67% lower when compared to the headline earnings
        as reported for the 2013 financial year after taking into account both the provision
        made and impairment costs related to the restructure. (2014: 31,5 cents per share to
        40,9 cents per share; 2013: 95,3 cents per share)
The main contributor to this reduction in headline earnings is a R165 million provision for
restructuring costs together with a R20 million write down of inventory due to the restructuring.
Added back in the calculation of headline earnings per share is a R52 million impairment of
assets resulting from the planned restructuring.

The primary objective of the restructure is to address the Group?s fixed cost base in order to
significantly improve its EBITDA margin in the medium-term.

Afrox will engage a leading global business advisory firm with significant international
experience in corporate restructuring and performance transformation to ensure that the
restructuring is brought to a successful conclusion by the end of 2015.

The information contained in this trading statement has not been reviewed or reported on by
the company?s external auditors.

Afrox will release its full year results to 31 December 2014 on or about 26 February 2015.

29 January 2015
One Capital

Date: 29/01/2015 11:52:00 Supplied by www.sharenet.co.za                     
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