Acquisition update and withdrawal of cautionary Trans Hex Group Limited (Incorporated in the Republic of South Africa) (Registration number: 1963/007579/06) Share code: TSX ISIN: ZAE000018552 ("Trans Hex" or "the Company") FURTHER UPDATE IN RESPECT OF THE ACQUISITION OF NAMAQUALAND MINES AND WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT Shareholders are referred to the cautionary announcement released on SENS on 16 October 2013, wherein Trans Hex advised that, with reference to the proposed acquisition by Trans Hex’s 50% held company, Emerald Panther Investments 78 (Pty) Limited (“EPI”), of Namaqualand Mines (“NM”) from De Beers Consolidated Mines Limited (“DBCM”), discussions surrounding the agreement between DBCM and the State regarding the State’s 20% interest in NM were continuing. Trans Hex is now pleased to announce that it has reached agreement with DBCM on how the parties will address the above outstanding issue to close the transaction. The sale agreement between DBCM, EPI and Trans Hex will be amended to provide for: - the creation of a Special Purpose Vehicle (“SPV”), which will be capitalized by DBCM, to house the 20% interest on behalf of the State or its nominee; - the SPV will be included in the shareholding structure of EPI as a 20% shareholder upon closing of the transaction (at which point the equity of all EPI shareholders will reduce pro-rata); and - Trans Hex will engage directly and expeditiously with the State to agree the manner in which the State will hold its housed 20% interest in NM. Trans Hex also announces that EPI has secured funding of R189 million from the Industrial Development Corporation towards initial capital and operating costs of NM, and a rehabilitation insurance instrument, approved by the Department of Mineral Resources, of R166 million, with the effect that Trans Hex’s own direct financial commitment to the NM transaction will now be in the order of R60 million. As previously reported, Trans Hex will be the operator at NM and will receive management and marketing fees totaling 5.5% of sales. Shareholders are further advised that, following new guidance received from its advisers, Trans Hex has obtained confirmation from the JSE that the proposed transaction is not a category 1 transaction, nor does it constitute a related party transaction, in terms of the Listing Requirements of the JSE Limited. Consequently, Trans Hex is not required to obtain shareholder approval of the proposed transaction, or to publish the financial effects thereof in terms of the Listings Requirements. Implementation of the transaction however remains conditional upon approval of certain aspects of the proposed transaction by Trans Hex shareholders in general meeting in terms of the regulatory requirements of the Companies Act No 71 of 2008. In this regard, Trans Hex will shortly issue a circular to shareholders. Withdrawal of cautionary announcement Trans Hex will keep shareholders advised of progress, but having regard to the information contained in this announcement shareholders need no longer exercise caution when dealing in the Company’s securities. For and on behalf of the board Cape Town 29 October 2013 Transactional Attorneys to Trans Hex Bowman Gilfillan Attorneys Inc JSE Sponsor Sasfin Capital (A division of Sasfin Bank Limited) Date: 29/10/2013 03:40:00 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.