Section 45(5) announcement BSI STEEL Limited (Incorporated in the Republic of South Africa) (Registration number 2001/023164/06) JSE code: BSS ISIN: ZAE000125134 ("the Company") NOTICE TO SHAREHOLDERS OF THE COMPANY IN TERMS OF SECTION 45(5) OF THE COMPANIES ACT, 71 of 2008(“THE ACT”), Shareholders of the Company are referred to the special resolution tabled and approved at the Annual General Meeting held on Thursday, 26 September 2013, authorising directors in terms of Section 45 of the Act to provide direct or indirect financial assistance to any company or corporation which is related or inter-related to the Company. BSI Steel Limited has a number of subsidiary companies namely BSI Steel Africa Limited (sub-subsidiaries BSI Steel Ghana Limited, BSI Steel Mozambique Limitada, BSI Steel Zambia Limited, BSI Steel Katanga SPRL, Sentinel Bridge Limited and BSI Steel Financial Services SARL), BSI Specialized Steels (Pty) Ltd, Newcolab (Pty) Ltd, Red Chip Investments (Pty) Ltd, Shearcut (Pty) Ltd, BSI Steel Plate Solutions (Pty) Ltd, West Dunes Properties 296 (Pty) Ltd and Loxiguard (Pty) Ltd t/a Qinisa Steel Solutions. The funding of the BSI Steel group is done on a group basis and the subsidiaries contribute to the group securities which include cross-company guarantees from the holding company in favour of the subsidiaries and visa versa. Group expenses, sundry purchases, steel purchases, working capital and fixed capital funding is controlled via inter-company loan accounts. All transactions are at arms-length, at market-related prices and are done in the ordinary course of business. In terms of the Section 45(2), the Board has adopted a resolution (“Section 45 Board Resolution”) authorising the continued group expenses, sundry purchases, steel purchases, working capital, fixed capital funding transactions and guarantees given between the companies in the ordinary course of business until 31 March 2016 up to a value of R 50.0 million per subsidiary excluding BSI Steel Africa Limited and R 165.0m ($ 15.0m) for BSI Steel Africa Limited. The Board has confirmed that, after considering the reasonably foreseeable financial circumstances of the Company, it is satisfied that: 1 Immediately after providing such assistance the Company will satisfy the solvency and liquidity test as referred to in section 45(3)(b)(i) of the Act; and 2 The terms under which such assistance is to be given are fair and reasonable to the Company as referred to in section 45(3)(b)(ii) of the Act. The financial assistance to be granted by the Company in terms of the Section 45 Board Resolution exceeds [one- tenth of one percent] of the Company’s net worth and the Company hereby provides notice of the Section 45 Board Resolution to shareholders in terms of the provisions of Section 45(5) of the Act. Johannesburg 13 March 2014 Designated Advisor Sasfin Capital (A division of Sasfin Bank Limited) Date: 13/03/2014 03:48:00 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.