WESIZWE PLATINUM LIMITED - Update on Maseve Project

Update on Maseve Project

WESIZWE PLATINUM LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 2003/020161/06)
JSE code: WEZ ISIN: ZAE000075859
(the “Company” or “Wesizwe”)

UPDATE ON MASEVE PROJECT

1.   Wesizwe, through its wholly owned subsidiary Africa Wide
     Mineral Prospecting and Exploration (Pty) Limited (“Africa
     Wide”) held a 26% interest in Maseve Investments 11 (Pty)
     Limited (“Maseve”). Maseve is in the process of developing
     the WBJV Project 1 Platinum Mine (“the Project”).

2.   Shareholders are referred to the announcements published
     on SENS on 21 October 2013 and 12 November 2013 wherein
     the following was announced:

     - Maseve made a cash call of ZAR213 million on Africa Wide 
       for its share of the ongoing development of the Project 
       in terms of the shareholders agreement concluded between 
       Africa Wide and Platinum Group Metals Limited (“PTM”) as 
       the shareholders of Maseve;

     - Africa Wide decided not to make further funding contributions 
       towards Maseve for the Project.

     - In terms of the shareholders agreement, a non-contribution 
       towards a cash call results in the non-contributing shareholders’ 
       shareholding in Maseve being diluted in terms of the dilution 
       formula provided for in the shareholders agreement.

     - Africa Wide and PTM held different opinions on the definition of 
       certain variables in the dilution formula and Africa Wide and PTM 
       decided to make use of the arbitration  mechanism  provided for in 
       the shareholders agreement.

     - On 11 November 2013 the shareholders resolved to implement the 
       agreed minimum dilution formula and therefore Africa Wide’s 
       interest in Maseve was diluted to 22.51% subject to further 
       dilution pending the outcome of the arbitration proceedings.

3.   The arbitrator gave his ruling on 20 August 2014 which
     ruling is binding on both African Wide and PTM. In terms
     of the ruling, Africa Wide’s interest in Maseve will be
     diluted as a result of the first cash call to 21.27%.

4.   Maseve made a second cash call on Africa Wide in February
     2014 amounting to ZAR234.6 million for its share of the
     ongoing development of the Project. As a result of the
     non-contribution by African Wide towards this second cash
     call its interest in Maseve will be further diluted to
     17.10%.

5.   As a consequence of the abovementioned dilutions, Wesizwe
     will have to recognise a dilution loss of ZAR97.4 million
     and a potential impairment of the investment.


For any enquiries, please contact:
Wenliang Ma
Finance Director
Wesizwe Platinum Limited
Tel: +27 11 994 4600.

Johannesburg
22 August 2014

Sponsor:
PSG Capital Proprietary Limited

Date: 22/08/2014 04:55:00 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.