BUILDMAX LIMITED - Voluntary announcement relating to a new contract awarded in the Republic of Congo

Voluntary announcement relating to a new contract awarded in the Republic of Congo

BUILDMAX LIMITED
Incorporated in the Republic of South Africa
(Registration No. 1995/012209/06)                     
Share Code: BDM
ISIN Code: ZAE000011250                                        
("Buildmax" or the Company or the Group)                                                     

VOLUNTARY ANNOUNCEMENT RELATING TO A NEW CONTRACT AWARDED IN THE REPUBLIC OF CONGO

The Companys board of directors and management are pleased to announce that Buildmax, 
through its subsidiary Diesel Power Congo (in the process of being established), has been 
awarded an open pit quarrying and mining contract ( mining contract) in the Republic of Congo 
("Congo").  The Mayoko mine iron ore project of DMC Iron Congo SA (DMC), which is controlled 
by Exxaro Resources Limited (Exxaro), is situated in the Niari province in the north-west of 
Congo, approximately 300 kilometers north-east of the port of Pointe-Noire.

This new 26-month mining contract marks the achievement of certain strategic growth and diversification 
objectives of Buildmax. Diesel Power Congo will be responsible to establish and mine a conventional 
hard-rock open pit operation in the Congo which has significant long-term reserves.

The initial open pit mining contract is valued at USD25,8 million, which excludes all plant and funding 
costs.  DMC have bought the equipment required for the first tranche of the mining contract, using Diesel 
Power Open Cast Mining (Pty) Limited (Diesel Power) as their procurement agent to procure, transport, 
establish and commission their plant to site (procurement agent). Other than the ownership and funding 
of the DMC mining plant, Diesel Power Congo will assume all other risks and rewards relating to the mining 
contract, including the responsibility for plant maintenance and productivity.  

Diesel Power has, as the procurement agent, entered into a separate supply agreement with DMC.  The first 
tranche of assets was loaded and shipped from Durbans port on 28 February 2013.

A highly qualified management team, with extensive experience in Africa, will be deployed by Diesel Power, 
and the Group will establish a permanent support structure in Point Noire.

Shareholders are advised that the Mayoko contract will account for a substantial portion of Diesel Power 
and the Groups growth in 2014 with margins and risks commensurate with operations in the Congo.

Benoni
5 March 2013

Sponsor
QuestCo (Pty) Limited




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