Update and notice in terms of section 45 MINE RESTORATION INVESTMENTS LIMITED (Registration number 1987/0048212/06) Incorporated in the Republic of South Africa Share Code: MRI ISIN Code: ZAE000164562 (“MRI” or the "Company") FINANCING FOR THE BRIQUETTING PROJECT SECURED AND NOTICE IN TERMS OF SECTION 45(5) OF THE COMPANIES ACT 71 OF 2008 (AS AMENDED (the "Act") Further to the SENS announcement published on 17 May 2013, which provided an update on the completion of the briquetting project, the Company is pleased to advise that Octavovox Proprietary Limited (“Octavovox”), which company is 51% held by MRI’s wholly-owned subsidiary, Western Utilities Corporation Proprietary Limited (“WUC”), and through which company the coal briquetting project is being operated, has successfully secured a funding facility of up to R11 000 000 (“Loan Facility”) in order to complete the project and prepare it for production. At this stage, it is still expected that commissioning of the project will commence end July 2013, with first briquette production in August 2013. Continuous, on-specification briquette production is targeted for September 2013. Octavovox is related or inter-related to the Company. In terms of the Loan Facility requirements and in accordance with section 45(2) of the Act, the board of directors of the Company adopted a resolution approving financial assistance to Octavovox in the form of – - a written option agreement (the "Option Agreement") with AfrAsia Special Opportunities Fund Proprietary Limited (the "Lender") in terms whereof the Company grants to the Lender the right to subscribe for shares in the share capital of the Company, which issue of shares will be subject to the Company’s shareholders approving the issue of shares - a written guarantee (the "Guarantee") in favour of the Lender in terms whereof the Company guarantees (as principle obligation) the due and timeous fulfilment of the obligations of Octavovox under the Loan Facility, - a written reversionary cession agreement with the Lender in terms whereof the Company cedes in security to the Lender all its shares and claims in and against WUC, all its bank accounts and all its debtors as security for the obligations of the Company under the Guarantee; and - a written subordination agreement with the Lender and WUC in terms whereof the Company subordinates all its claims against WUC in favour of the claims of the Lender under the Loan Facility Agreement, in accordance with section 45(3)(b) of the Act. Shareholders are reminded that a special resolution authorising directors to provide direct or indirect financial assistance to any company or corporation which is related or inter-related to the Company (in terms of section 45(3)(a)(ii)) was tabled and approved at the Annual General Meeting held on 25 September 2012. The board of shareholders of the Company has confirmed that, after considering the reasonably foreseeable financial circumstances of the Company, it is satisfied that, immediately after it provided the above-mentioned financial assistance, the Company would satisfy the solvency and liquidity test, as contemplated in terms of Section 4 of the Act and that the terms under which such financial assistance was given were fair and reasonable to the Company. Shareholders are advised that in terms of Section 45 (5)(a) the financial assistance exceeds one-tenth of 1% of the Company’s net worth as at the approval date of the provision of such assistance. Johannesburg 19 July 2013 Designated Advisor: Sasfin Capital (A division of Sasfin Bank Limited) Date: 19/07/2013 11:15:00 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.