Small Related Party Transaction and General Update Argent Industrial Limited (Registration number 1993/002054/06) (Incorporated in the Republic of South Africa) Share Code: ART ISIN: ZAE000019188 (“Argent” or “the Company”) SMALL RELATED PARTY TRANSACTION AND GENERAL UPDATE 1. Introduction and rationale Argent Industrial Investments Proprietary Limited (“Argent Industrial”), a wholly owned subsidiary of Argent, has entered into an agreement, whereby Argent Industrial has agreed to dispose of a property, Erf 510, Alrode Ext. 7, 8 Borax Street, Alrode (“the Property”)to NWN Automotive Precision Engineering Proprietary Limited (“the Purchaser”) for a purchase consideration of R5 million payable in cash (“the Transaction”). The rationale for the disposal is that the Property is no longer required by the Company and the Company will utilise the sale proceeds to repay the Company’s bank bonds. 2. The consideration and conditions precedent 2.1 The cash consideration of R5 million for the Property will be settled in full within 48 hours of the transfer and registration of the Property into the name of the Purchaser in the relevant Deeds Office. 2.2 There are no outstanding conditions precedent. 3. Pro forma financial effects In terms of the Listings Requirements of the JSE Limited (“JSE”), the effects of the Transaction are not significant and are below the reporting threshold. 4. Categorisation and related party 4.1 Due to the fact that the Purchaser is an associate of Mr Treve Hendry and Ms Susan Cox, both directors of Argent, the Transaction is deemed to be a “related party trans- action” in terms of section 10 of the JSE Listings Requirements. 4.2 However, as the Transaction amounts to less than 5% of the market capitalisation of Argent as at 12 September 2014, the Transaction is classified as a “small related party transaction” in terms of paragraph 10.7 of the JSE Listings Requirements and written confirmation is required from an independent expert confirming the fairness of the terms of the Transaction in relation to Argent shareholders. 4.3 Accordingly, Argent has appointed D.B Jordaan as the independent expert who has provided written confirmation to the JSE that the terms of the Transaction are fair in relation to Argent shareholders (“Valuation Report”). The Valuation Report will lie open for inspection at the registered office of Argent for a period of 28 days from the date of publication of this announcement. 4.4 Based on the valuation report, the board of directors of Argent is of the opinion that the Transaction is fair to Argent shareholders. 4.5 This announcement is made for information purposes only and no action is required by Argent shareholders with regards to the Transaction. 5. General update on property sale 5.1 Following on from the closure of loss-generating businesses, the Company can report that the Gammid George property, will be going on auction on 14 October 2014. An offer of R12 million has been received for the Phoenix Steel Mpumalanga property, but it is believed to be worth more. 5.2 The Company has received offers for both Gammid Cape and Atomic Office Equipment, the terms of which are still in the process of being negotiated. Umhlanga 12 September 2014 Sponsor: PSG Capital Proprietary Limited Date: 12/09/2014 02:00:00 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.