Cautionary Announcement regarding a proposed bee transaction BUILDMAX LIMITED Incorporated in the Republic of South Africa (Registration No. 1995/012209/06) Share Code: BDM ISIN Code: ZAE000011250 ("Buildmax" or the Company) CAUTIONARY ANNOUNCEMENT REGARDING A PROPOSED BEE TRANSACTION 1. Introduction Buildmax is fully committed to the advancement of broad-based black economic empowerment (BEE) within the mining industry and is governed by the terms of the Codes of Good Practice, issued under the Broad-Based Black Economic Empowerment Act, 2003 (the Codes), as well as the requirements of the Broad-Based Socio-Economic Empowerment Charter for the South African Mining and Minerals Industry (the Mining Charter). Transformation and BEE shareholding is critical to the Companys ability to continue to build its business and has become a fundamental requirement in order to conduct business in the industries that the company serves. The Companys board of directors and management are pleased to announce the signing of a Memorandum of Understanding on 26 November 2012 to introduce additional BEE shareholding into the broader Buildmax businesses (Proposed BEE Transaction). The Proposed BEE Transaction is limited to the mining services business unit of Buildmax incorporating Diesel Power Opencast Mining (Pty) Limited, Buildmax Equipment and Services (Pty) Limited and Buildmax Equipment (Pty) Limited. The final structure of the Proposed BEE Transaction will result in the Company attaining an effective BEE shareholding in excess of 25% in terms of the Codes and the Mining Charter. The Proposed BEE Transaction will provide a number of benefits to the Company namely: - An overall enhancement in the Companys BEE ownership credentials; - Creating sustainable BEE ownership through a long-term operational partnership with a new entrant who has significant industry experience; - The enhancement and transformation of the executive management team; and - The introduction of a broad-based trust targeted at increasing the skills and economic participation of black women. Buildmax Limited is cognisant of the proposed amendments to the B-BEEE Codes of Good Practice, which are currently open for public comment. The proposed amendments were considered in formulating the Proposed BEE Transaction. The Company continues to monitor developments, particularly as it impacts the Companys compliance in this regard. Subject to the requisite approvals being obtained, it is envisaged that the proposed BEE Transaction will be fully implemented by 28 February 2013. 2. Cautionary Announcement The Proposed BEE Transaction, if successfully concluded, may have an impact on the price of the Companys securities. Accordingly, shareholders are advised to exercise caution when dealing in the Companys securities until a further announcement providing additional details regarding the Proposed BEE Transaction is released. Benoni 26 November 2012 Sponsor QuestCo (Pty) Limited Date: 27/11/2012 12:16:00 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.