AFROX - CAPITALISATION SHARE AWARD AND CASH OPTION

AFROX FINANCE LIMITED
(REG NO 54/00953/06)
(INCORPORATED IN THE REPUBLIC OF SOUTH AFRICA)
CAPITALISATION SHARE AWARD AND CASH OPTION

THE BOARD OF DIRECTORS OF AFRICAN OXYGEN LIMITED (AFROX) HAS RESOLVED TO MAKE
AN AWARD OF NEW FULLY PAID ORDINARY SHARES ("THE NEW SHARES") BY WAY OF A
CAPITALISATION OF DISTRIBUTABLE RESERVES TO SHAREHOLDERS AS SUCH AT CLOSE OF
BUSINESS ON FRIDAY, 12 JUNE 1998; ACCORDING TO THE FOLLOWING FORMULA PER SHARE
14,2 CENTS

95% OF RULING PRICE AT CLOSE OF BUSINESS ON 12 JUNE 1998

SHAREHOLDERS WILL BE ENTITLED TO ELECT TO DECLINE THE AWARD IN RESPECT OF ALL
OR PART OF THEIR SHAREHOLDING AND INSTEAD MAY ELECT TO RECEIVE A CASH DIVIDEND
OF 14,2 CENTS (13,0 CENTS) IN RESPECT OF THE SIX MONTH PERIOD.

ALL FRACTIONS OF NEW SHARES WILL BE AGGREGATED AND SOLD ON THE JOHANNESBURG
STOCK EXCHANGE (JSE) FOR THE BENEFIT OF THE RELEVANT SHAREHOLDERS. SUBJECT TO
THE APPROVAL OF THE JSE AND THE NAMIBIAN STOCK EXCHANGE (NSE) A LISTING OF THE
NEW SHARES TO BE ISSUED PURSUANT TO THE AWARD WILL COMMENCE ON WEDNESDAY, 29
JULY 1998.

DOCUMENTATION, WHICH IS SUBJECT TO THE APPROVAL OF THE JSE AND NSE, DEALING
WITH THE CAPITALISATION AWARD AND ELECTION FORMS IN RESPECT OF THE CASH
DIVIDEND WILL BE POSTED TO AFROX SHAREHOLDERS ON 19 JUNE 1998. IN ORDER TO BE
VALID, COMPLETED ELECTION FORMS MUST BE RECEIVED BY THE TRANSFER SECRETARIES BY
NO LATER THAN 12H00 ON FRIDAY, 24 JULY 1998. IT IS EXPECTED THAT SHARE
CERTIFICATES IN RESPECT OF THE NEW SHARES AND/OR PAYMENTS WILL BE ISSUED/MADE
ON OR ABOUT WEDNESDAY, 29 JULY 1998. A FURTHER ANNOUNCEMENT WILL BE PUBLISHED
ON WEDNESDAY, 29 JULY 1998 DETAILING THE RESULTS OF THE CAPITALISATION SHARE
AWARD AND CASH ELECTION.
BY ORDER OF THE BOARD
I M MATTHEE
COMPANY SECRETARY
6 MAY 1998
TRANSFER OFFICE
MERCANTILE REGISTRARS LIMITED
6TH FLOOR, 94 PRESIDENT STREET
JOHANNESBURG 2001
(PO BOX 1053
JOHANNESBURG, 2000)
TELEPHONE (011) 333-8181
REGISTERED OFFICE
AFROX HOUSE
23 WEBBER STREET
SELBY
JOHANNESBURG, 2001