AECI - FURTHER CAUTIONARY ANNOUNCEMENT

AECI LIMITED
(INCORPORATED IN THE REPUBLIC OF SOUTH AFRICA)
(REGISTRATION NUMBER 04/02590/06)
("AECI" OR "THE COMPANY")
FURTHER CAUTIONARY ANNOUNCEMENT

SHAREHOLDERS WERE ADVISED IN A CAUTIONARY ANNOUNCEMENT DATED 11 MARCH 1999 THAT
THE COMPANY WAS ENGAGED IN DISCUSSIONS WITH DYNO INDUSTRIER ASA OF NORWAY AND
ORICA LIMITED OF AUSTRALIA CONCERNING ITS EXPLOSIVES BUSINESS.  BOTH PARTIES
HAVE RECENTLY SUBMITTED OFFERS TO ACQUIRE A SUBSTANTIAL INTEREST IN THE
EXPLOSIVES BUSINESS.

AFTER DETAILED EXAMINATION, THE BOARD CONCLUDED THAT THE OFFERS DID NOT REFLECT
THE INHERENT VALUE OF THE BUSINESS AND THAT ACCEPTANCE OF EITHER OFFER WOULD BE
MATERIALLY DILUTIVE OF EARNINGS.  ACCORDINGLY, THE BOARD DECIDED THAT THE
INTERESTS OF SHAREHOLDERS WOULD BEST BE SERVED BY DECLINING THE OFFERS.
IN THE LIGHT OF THIS DECISION, THE BOARD ENDORSED THE STRATEGIC INTENT OF THE
EXPLOSIVES BUSINESS TO BROADEN ITS TECHNOLOGY AND CUSTOMER BASE, AND RESOLVED
TO GIVE THIS STRATEGY ITS FULL SUPPORT.

NEGOTIATIONS WITH VARIOUS PARTIES CONCERNING CERTAIN OTHER BUSINESSES IN THE
CURRENT PORTFOLIO ARE PROGRESSING SATISFACTORILY.  ACCORDINGLY, SHAREHOLDERS
ARE ADVISED TO CONTINUE EXERCISING CAUTION WHEN DEALING IN THEIR AECI SHARES
UNTIL A FURTHER ANNOUNCEMENT IS MADE.
WOODMEAD
14 APRIL 1999
FINANCIAL ADVISER
ING BARINGS
SPONSORING BROKER
ING BARINGS
ING BARINGS SOUTHERN AFRICA LIMITED
(MEMBER OF THE JOHANNESBURG STOCK EXCHANGE)
(REGISTRATION NUMBER 94/04352/07)