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 Date: 10/08/2012 02:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.