Sale of Olifantsfonetein 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 OLIFANTSFONTEIN 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 14 August 2012, subject to conditions precedent, for the sale of the following immovable properties (“the transaction”): - Portion 5, Portion 26 and Portion 27 (Portions of portion 15) of erf 1250, Clayville Extension 14 Township; and - Erven 390, 391 and 392, Clayville Extension 3 Township. 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 Olifantsfontein 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 14 August 2012, Brikor entered into a sale agreement in respect of the property with a company to be formed (“Newco”)(“purchaser”). Newco is represented by John Michael Koch and the Hall Family Trust. 4.2. The purchase price payable for Olifantsfontein is the aggregate of R 15 million excluding VAT. 4.3. The purchase price will be payable on date of transfer. 4.4. The effective date will be the date of transfer. 5. CONDITION PRECEDENT The sale agreement is subject to the following suspensive conditions: 5.1 The purchaser obtains approval of a loan by a financial institution of not less than R 15 million; 5.2 Approval of the transaction by the Brikor board of directors; 5.3 Consoliation of Portions 26 and 27 (Portions of Portion 15) of Erf 1250 Clayville Extension 14 Township as Portion 28 of Erf 1250 Ext 14; 5.4 Rezoning of the consolidated property to Industrial within 6 months of signing of this Agreement. 6. UNAUDITED PRO FORMA FINANCIAL EFFECTS OF THE DISPOSAL The unaudited pro forma financial effects will be published in due course. 7. 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. 8. 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. 9. FURTHER ANNOUNCEMENT Shareholders will be notified once the conditions precedent have been met. Nigel 20 August 2012 Designated Adviser Exchange Sponsors Date: 20/08/2012 03:49:00 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.