BRIKOR LIMITED - BIK - SALE OF VEREENIGING PROPERTY AND CAUTIONARY ANNOUNCEMENT

BIK - SALE OF VEREENIGING PROPERTY AND CAUTIONARY ANNOUNCEMENT

Brikor Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1998/013247/06)
(Share Code: BIK ISIN Code: ZAE000101945)
("Brikor" or "the Company")


         SALE OF VEREENIGING PROPERTY AND CAUTIONARY ANNOUNCEMENT

1.   INTRODUCTION

     Shareholders are informed that Brikor has entered into an offer to purchase of immovable
     property agreement (“sale agreement”) on 6 August 2012, subject to conditions precedent, for
     the sale of the following immovable properties (“the transaction”):

     -      Remaining Extent of Portion 5 of the farm Vanderbijl Park No. 550, Registration Division
            IO, Province of Gauteng; and
     -      Portion 107 of the Farm Houtkop No. 594, Registration Division IO, Province of Gauteng.

     The above are collectively hereafter referred to as “the property”.

2.   BACKGROUND INFORMATION

     Brikor is a manufacturer and supplier of building and construction materials and has clay,
     aggregate and coal mining operations. The company recently entered into a comprehensive
     restructuring programme to restore operations to profitability and to strengthen its financial
     position. Fundamental to the restructuring programme was regaining focus on core
     operations. On 10 October 2011 a decision was taken by board of directors to dispose of the
     Vereeniging operations, as it was identified as non-core to the main business of Brikor.

3.   RATIONALE FOR THE DISPOSAL

     The sale of the property is in line with Brikor’s strategy to dispose of non-core operations to
     strengthen the group’s cash resources as well as improving its current debt burden. The proceeds
     from the disposal will be utilised to reduce debt.

4.   TERMS AND CONDITIONS OF THE DISPOSAL

     4.1.         On 6 August 2012, Brikor entered into a sale agreement in respect of the property with
                  National Ceramics Industries of South Africa Proprietary Limited (“NCISA”)(‘the
                  Purchaser’).
     4.2.         The purchase price payable for the Property is the aggregate of R 11 million excluding
                  VAT.
     4.3.         The purchase price includes an agent’s commission of 8.5%.
     4.4.         The purchase price will be payable on date of transfer.
     4.5.         The effective date will be the date of transfer.


5.   UNAUDITED PRO FORMA FINANCIAL EFFECTS OF THE DISPOSAL

     The unaudited pro forma financial effects will be published in due course.

6.   CATEGORISATION OF THE TRANSACTION

     The transaction is categorised, in terms of the JSE Limited’s (“JSE”) Listings Requirements,
     as a Category 2 transaction and does not require shareholders’ approval.

7.   CAUTIONARY ANNOUNCEMENT
       Shareholders are advised to exercise caution in dealing in the company’s securities on the
       JSE until such time as the financial effects of the transaction are published.


Nigel
10 August 2012

Designated Adviser
Exchange Sponsors

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