EVRAZ HIGHVELD STEEL & VANADIUM LTD - Further renewal of cautionary announcement and plant stoppage

Further renewal of cautionary announcement and plant stoppage

EVRAZ Highveld Steel and Vanadium Limited
(Incorporated in the Republic of South Africa)
(Registration No: 1960/001900/06)
Share code: EHS ISIN: ZAE000146171
(“Highveld” or “the Company”)


FURTHER RENEWAL OF CAUTIONARY ANNOUNCEMENT AND PLANT STOPPAGE


Shareholders are referred to the announcement released by the Company
on 14 April 2015 wherein shareholders were advised that the board of
the Company had resolved on 13 April 2015 to commence business rescue
proceedings in terms of section 129 of the Companies Act, 2008 (“the
Act”),    (“the    Resolution”),         and    subsequent      updates      and   announcements
dated 30 April 2015, 28 May 2015, 15 June 2015 and 10 July 2015.


A    further    update    on    the     status    of     the   Company’s      business     rescue
proceedings is set out below.


1.       Business Rescue is still ongoing, with the publication date of
         the business rescue plan being 31 August 2015.
2.       It was decided to cease production of the Ironmaking division of
         the Company, which           was necessitated         by amongst others delayed
         debtors payments, inadequate cash to procure the required raw
         materials       to       continue        with         manufacturing        operations;
         difficulties experienced with access to funding; and continued
         inability       to    pay      major     creditors       timeously.         Sustainable
         operations are not viable at current low demand and poor selling
         prices.
3.       Feeding of raw materials to the Ironmaking kilns was stopped,
         such that the furnaces can be safely drained and switched out,
         ready for a future start up.              The Steel plant will be stopped and
         made safe once all the hot metal has been processed.                            The two
         mills will continue            operating, until all the available stocks
         have   been     rolled      into     saleable    products,       where    after   these
         operations will also be safely stopped. All plant and equipment
         will   for    the     moment    be     placed    in    care   and    maintenance     and
         prepared for future start up.



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4.    It is the intention of the Company to resume production once
      adequate funding has been secured and steel trading conditions
      have improved to ensure sustained future financial viability.
5.    The Company is continuously reviewing its position and possible
      future   proposals   with   regards   to   employees   and   will   keep
      shareholders informed of its future intentions.



eMalahleni
20 July 2015




J.P. Morgan Equities South Africa (Pty) Ltd.


Sponsor




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