CHEMICAL SPECIALITIES LIMITED - Update regarding the proposed rights offer

Update regarding the proposed rights offer

Chemical Specialities Limited
Incorporated in the Republic of South Africa
Registration number: (2005/039947/06)
Share code: CSP
ISIN: ZAE000109427
(“Chemspec” or “the Company”)

UPDATE REGARDING THE PROPOSED RIGHTS OFFER

Shareholders are referred to the declaration data announcement regarding the
proposed rights offer released on the Stock Exchange News Service (“SENS”) on 11
October 2013 as well as the finalisation information announcement pertaining to the
proposed rights offer released on the SENS on 18 October 2013 advising shareholders
that Chemspec would be undertaking a capital raising of R214,772,330 (before
expenses) by way of a renounceable rights offer (“the rights offer”).

In terms of the rights offer, 536,930,824 new Chemspec compulsory convertible
preference shares (“CCPs”), in the authorised but unissued share capital of the
Company, will be offered to Chemspec shareholders recorded in the register at the
close of trade on Friday, 1 November 2013 who will receive rights to subscribe for
rights offer shares on the basis of 50 CCPs for every 100 Chemspec shares held, at
40 cents per rights offer share.

At the time of the above-mentioned announcements, the rights offer was not
underwritten. Shareholders are advised that the rights offer will now be partially
underwritten by Clark Investments (collectively Basfour 2052 CC (registration
number 2008/132103/23) and Basfour 3014 CC (Registration number 2008/132118/23)) in
an amount of R4,000,000 for 10,000,000 CCPs and no underwriting fee will be
applicable. The right of the underwriter to subscribe for the rights offer shares
in terms of the underwriting agreement shall be subordinate to any/all excess
application(s) received.

Johannesburg
29 October 2013

Corporate and Designated Advisor
Grindrod Bank Limited

Reporting Accountants and Auditors
KPMG Inc.

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