HOSKEN CONSOLIDATED INVESTMENTS LTD - Purchase of Interest in Impact Oil and Gas Ltd

Purchase of Interest in Impact Oil and Gas Ltd

HOSKEN CONSOLIDATED INVESTMENTS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1973/007111/06)
(Share code: HCI & ISIN: ZAE000003257)
("HCI" or "the company")

VOLUNTARY ANNOUNCEMENT - PURCHASE OF INTEREST IN IMPACT OIL AND GAS LIMITED
(“IOG”)

Shareholders are hereby advised that HCI, through its subsidiary, Deepkloof
Limited (“Deepkloof”), has purchased an interest of 13% in IOG through the
subscription of ordinary shares in that company for an amount of US$17
million. The company has agreed to subscribe, through Deepkloof, for a
further 7% of the ordinary share capital of IOG for an amount of US$8 million
to increase its interest to 19.9%. The purchase of the further 7% remains
subject to the approval of the Financial Surveillance Department of the South
African Reserve Bank.

IOG was founded in 2009 by a group of experienced geoscientists who targeted
a number of areas off the coast of South Africa which had very large
hydrocarbon   potential.  IOG’s   business  model is   to  secure  petroleum
exploration licences (“Exploration Licences”) in deep water with the aim of
enhancing the value of the Exploration Licence before farming it out to
larger oil companies that have the technical and financial capacity to
progress the projects to the drilling stage. With reference to this business
model, IOG and its management team have vast technical knowledge, experience
and relevant oil and gas business exposure.

Following licence awards and a successful 2D seismic acquisition campaign, a
series of play concepts were delineated and IOG entered into a partnership
with ExxonMobil. Together the two companies are currently working on a
substantial exploration program off the coast of South Africa.

With a clear strategic focus as an Africa-only exploration company, IOG’s
management is committed to building an attractive exploration portfolio and
is currently securing a portfolio of prospective acreage in a number of
locations on the African continental margin.

The purchase consideration falls below the threshold of a categorised
transaction in terms of the Listings Requirements of the JSE Limited. The
investment in IOG will be funded from cash reserves.

11 August 2014
Cape Town

Sponsor:
Investec Bank Limited

Date: 11/08/2014 02:10:00 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.