Strategic update BSI STEEL LIMITED (Incorporated in the Republic of South Africa) (Registration number 2001/023164/06) JSE code: BSS ISIN: ZAE000125134 (“BSI” or "the company") BSI STEEL LIMITED – VOLUNTARY STRATEGIC UPDATE At the time of publishing the unaudited interim results for the six months ended 30 September 2013, released on 7 November 2013, the board stated in the Prospects paragraph that ‘The Group has extensive knowledge of global commodity markets and supply chains. We are exploring ways to exploit this knowledge on a low risk, non capital-intensive basis.’ Shareholders are informed that initiatives are being explored in two broad areas, as follows: - Commodity Trading – with almost 30 years experience in the steel industry, the Group has significant insights into the raw material supply chains on which the global steel industry is dependant, as well as relationships with many major players in the industry, including miners, shippers, steel producers and downstream customers. We have identified various prospects that, if successfully exploited, would allow us to trade in iron ore and related markets. - Commodity Finance – our expanding African operations have highlighted the importance of project and trade finance throughout the steel industry supply chain, and have enabled us to establish relationships with some significant providers of finance and related services. In order to capitalise on our expertise the Group is developing plans, primarily based on joint venture relationships, which if successfully implemented would allow us to participate in commodity trading and trade finance. As far as possible these initiatives will be pursued on a low risk, low capital-intensive basis, in partnership with organisations well known to the Group and which bring expertise in these areas. Our current intention is to proceed cautiously, without taking principal risk, and to grow any opportunities organically, and we are therefore not pursuing any acquisitions in this regard. It is premature to speculate on the potential impact of these initiatives under investigation, although the Group will not proceed unless we anticipate significant future benefits. No material impact from any of these activities is anticipated in our results for the current financial year to 31 March 2014. Additional strategic updates will be provided once the Group has greater certainty as to the likely timing and nature of these planned ventures. The Group continues to experience challenging trading conditions affecting the steel industry as a whole. As in previous years, our performance in February and March will significantly influence final earnings for the year to 31 March 2014. The information in this announcement has not been reviewed or reported on by the Group’s auditor. By order of the Board 6 February 2014 Johannesburg Sponsor Sasfin Capital (a division of Sasfin Bank Limited) Date: 06/02/2014 05:15:00 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.