Financial effects and withdrawal of cautionary announcement Chrometco Limited (Incorporated in the Republic of South Africa) (Registration number 2002/026265/06) Share code: CMO ISIN: ZAE000070249 ("Chrometco" or "the company") FINANCIAL EFFECTS PERTAINING TO THE ACQUISITION OF GEOLOGICAL DRILL DATA, DRILL CORE AND ABANDONMENT OF PROSPECTING RIGHT IN FAVOUR OF CHROMETCO AND WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT 1. Introduction and terms Shareholders are referred to the announcement released on SENS on 13 August 2012 wherein Chrometco entered into a Sale Agreement (“the Agreement”) with NKWE Platinum (South Africa) Proprietary Limited and one of its subsidiaries (”NKWE”) and Realm Resources Limited (“REALM”). NKWE and REALM (“the Sellers”) have agreed to cancel a current farm-in agreement in favour of selling mineral rights as well as historical drill core and geological data to Chrometco (“the Acquisition”). 2. Financial effects The unaudited pro-forma financial effects of the Acquisition, based on the published audited group results of Chrometco Limited “Chrometco” for the year-ended 29 February 2012 are set out below. The unaudited pro-forma financial effects have been prepared for illustrative purposes only to provide information on how the Acquisition may have impacted on the results and financial position of Chrometco. Preparation of the unaudited pro-forma financial effects is the responsibility of the directors. Due to their nature, the pro- forma financial effects may not fairly present Chrometco`s financial position after the Acquisition or the effect on future earnings: (1) (2)(4) Audited Adjustments financial before the information Acquisition 29 February 2012 Earnings/(loss) (cents per share) 53.24 (17.95) Headline earnings/(loss) (cents per share) (9.01) 2.18 Net asset value (cents per share) 93.61 (1.05) Net tangible asset value (cents per share) 12.47 (1.95) Weighted average number 184 928 683 90 000 000 of shares in issue Number of shares in issue 184 928 683 90 000 000 (3)(5) After Change% Acquisitions Earnings(cents per share) 35.29 (33.71) Headline profit (cents per share) (6.84) 24.17 Net asset value (cents per share) 92.56 (0.79) Net tangible asset value (cents per share) 10.52 (15.63) Number of shares in issue 274 928 683 10.81 Notes: 1. The “audited financial information” earnings and headline earnings per share have been extracted without adjustment from the audited, published financial statements of Chrometco. The “audited financial information” net asset value and net tangible asset value per share have been calculated from the financial information presented in the published audited financial results of Chrometco. 2. The “adjustments before the Acquisition” earnings and headline earnings per share have been adjusted to take into account the IFRS effect of issuing 90 million shares in lieu of the acquisition of the identifiable net assets of NKWE (geological data, drill core and PGM prospecting rights with an independently determined combined fair value of R 18.7 million). The transaction has been accounted for as a business combination in terms of IFRS 3 – Business Combinations. The adjustments do not take into account the expected positive financial effect that the geological data may have on the current resource estimate of Chrometco’s chromite resource. The adjustments take transaction costs of R1.5 million, intangible asset related amortisation expenses of R623,333 as well as a gain on bargain purchase of R700,000 into account. The gain on bargain purchase arises due to the fact that the fair value of the identifiable net assets acquired exceeds the fair value of the purchase consideration transferred under the transaction. These adjustments result in the “adjustments before the Acquisition” financial information reflecting the financial position of Chrometco as if the Acquisition had taken place on 1 March 2011. 3. The earnings and headline earnings per share included in the “after Acquisition” column have been adjusted for the following: a.the IFRS effect of issuing 90 million shares in lieu of the acquisition of the identifiable net assets of NKWE (being the geological data, drill core and PGM prospecting rights with an independently determined combined fair value of R 18.7 million). b.transaction costs of R1.5 million. c.gain on bargain purchase of R700,000. d.amortisation expense of R623,333 relating to the amortisation charge for the year on the fair value of the intangible assets acquired under the transaction. 4. The “adjustments before the Acquisition” net asset value and net tangible asset value per share have been adjusted to take the IFRS effect of issuing 90 million shares in lieu of the acquisition of the identifiable net assets of NKWE (geological data, drill core and PGM prospecting rights with an independently determined combined fair value of R 18.7 million). The transaction has been accounted for as a business combination in terms of IFRS 3 – Business Combinations. The adjustments do not take into account the expected positive financial effect that the geological data may have on the current resource estimate of Chrometco’s chromite resource. The adjustments take transaction costs of R1.5 million, intangible asset related amortisation expenses of R623,333 as well as a gain on bargain purchase of R700,000 into account. The gain on bargain purchase arises due to the fact that the fair value of the identifiable net assets acquired exceeds the fair value of the purchase consideration transferred under the transaction. These adjustments result in the “adjustments before the Acquisition” financial information reflecting the financial position of Chrometco as if the Acquisition had taken place on 29 February 2012. 5. The net asset value and net tangible asset value per share included in the “after Acquisition” column have been adjusted for the following: a.the IFRS effect of issuing 90 million shares in lieu of the acquisition of the identifiable net assets of NKWE (being the geological data, drill core and PGM prospecting rights with an independently determined combined fair value of R 18.7 million). b.transaction costs of R1.5 million. c.gain on bargain purchase of R700,000. d.amortisation expense of R623,333 relating to the amortisation charge for the year on the fair value of the intangible assets acquired under the transaction. 3. Withdrawal of cautionary announcement Having regard to the disclosure of the financial effects above, shareholders are advised that they no longer need to exercise caution when dealing in the company’s securities. 24 August 2012 Designated Advisor Sasfin Capital (A division of Sasfin Bank Limited) Date: 24/08/2012 08:31:00 Produced by the JSE SENS Department. 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