METMAR LIMITED - Metmar and Wasat enter into a cooperation agreement

Metmar and Wasat enter into a cooperation agreement

METMAR LIMITED
Incorporated in the Republic of South Africa
(Registration number 1998/007269/06)
Share code: MML
ISIN code: ZAE000078747
(“Metmar” or “the Company”)

METMAR AND WASAT ENTER INTO A COOPERATION AGREEMENT

Shareholders of Metmar (“Shareholders”) are referred to the announcement
published by the Company on 24 August 2012 wherein Shareholders were
informed that, inter alia, Metmar and Wasat Investments Proprietary Limited
(“Wasat”) (collectively, “Parties”) had entered into negotiations with respect to
a cooperation and co-investment agreement so as to replace the transaction
previously proposed between the Parties with respect to the Fuleni Anthracite
Project.

The Company is pleased to inform Shareholders that Metmar and Wasat have
now entered into a cooperation agreement (“Cooperation Agreement”).

In terms of the Cooperation Agreement, the Parties have agreed to cooperate
with respect to the identification and development of future projects through
the sharing of information, skills and, to the extent required, capital for
purposes of assessing and potentially developing such projects. It is
anticipated that the combination of Metmar’s commodity trading expertise and
Wasat’s extensive mining focused technical ability and expertise will allow the
Parties to mutually benefit from the application of their combined resources,
manpower and funding capacity towards future projects.

To date, six projects have already been identified which shall be considered
by the Parties in terms of the Cooperation Agreement.

Furthermore, Metmar and Beacon Rock Corporate Services Proprietary
Limited (“Beacon Rock”) have entered into an ad hoc services agreement
(“Services Agreement”) in terms of which the potential provision of future
services by Beacon Rock to Metmar shall be governed. Furthermore, Beacon
Rock shall make its representatives available to Metmar to provide services to
it on an ad hoc basis at the request of Metmar. Any fees payable to Beacon
Rock by Metmar for services provided in terms of the Services Agreement
shall be agreed as at the date that such services are requested in accordance
with the scope and nature of the engagement.

Collectively, Metmar, Wasat and Beacon Rock each have complementary
skills, which, if effectively combined, should be highly beneficial for Metmar
and Shareholders. Metmar’s board of directors believes that the formalisation
of the Cooperation and Services Agreements sets a platform for Metmar to
leverage further benefit from this substantial collection of skills and resources.

Bryanston
28 September 2012

Sponsor
One Capital

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