CHROMETCO LIMITED - Notice of business rescue resolution passed by a material subsidiary Black Chrome Mine Proprietary Limited

Notice of business rescue resolution passed by a material subsidiary Black Chrome Mine Proprietary Limited

CHROMETCO LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2002/026265/06)
Share code: CMO
ISIN: ZAE007020249
("Chrometco" or "the Company")

NOTICE OF BUSINESS RESCUE RESOLUTION PASSED BY A MATERIAL SUBSIDIARY
BLACK CHROME MINE PROPRIETARY LIMITED

On 8 June 2022, the board of directors (“the BCM Board”) of Black Chrome Mine Proprietary
Limited (“Black Chrome Mine”), a material subsidiary of the Company, has advised that it has
voluntarily resolved to place Black Chrome Mine under business rescue. The BCM Board
believes that the best option to facilitate the rehabilitation of the financial position of Black
Chrome Mine and ensure the long-term survival of Black Chrome Mine is to enter business
rescue proceedings as contemplated in Chapter 6 of the Companies Act No. 71 of 2008, as
amended (“the Companies Act”).

The BCM Board considered the financial position of Black Chrome Mine and resolved on 8
June 2022 that:

   -   it is financially distressed, due to the fact that it is reasonably unlikely that Black
       Chrome Mine will be able to pay all of its debts, as they become due and payable,
       within the immediately ensuing six months;

   -   there appears to be a reasonable prospect of rescuing Black Chrome Mine; and

   -   Black Chrome Mine voluntarily begin business rescue proceedings, in accordance
       with section 129(1) of the Companies Act.

The BCM Board has appointed Mr Phahlani Mkhombo as the business rescue practitioner.

Shareholders are advised that the BCM Board will no longer be in control of the company, as
it will be placed under the supervision of the appointed business rescue practitioner.

Having regard to the engagements to be undertaken with various stakeholders during the
business rescue proceedings, there is significant likelihood that confidentiality of price
sensitive information will not be maintained, and this may have a material effect on the price
of the Company’s securities. Accordingly, shareholders are advised to continue to exercise
caution.

The nature and extent of the restructure pursuant to business rescue proceedings, and its
effect on the value of the company, is unknown.

The BCM Board considers this decision to be prudent and in the best interests of
shareholders while the company and its business rescue practitioner explore solutions to the
current situation facing the company.

Shareholders will be updated as further material information becomes available.

Johannesburg
14 June 2022

Designated Advisor
PSG Capital

Date: 14-06-2022 10:45:00
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