appointment of IFM for mining services and withdrawal of cautionary CHROMETCO LIMITED (Incorporated in the Republic of South Africa) (Registration number: 2002/026265/06) (JSE Code: CMO ISIN: ZAE000070249) ("Chrometco" or "the Company") APPOINTMENT OF INTERNATIONAL FERRO METALS (SA) PROPRIETARY METALS (“IFM”) FOR MINING SERVICES, ORE SALE AGREEMENT AND WITHDRAWAL OF CAUTIONARY 1. Introduction Chrometco Shareholders (“Shareholders”) are referred to previous cautionary announcements, the last of which was dated 29 September 2014, wherein they were advised that the Company had entered into negotiations with IFM, with a view to concluding mining services and ore sale agreements. In terms of the first phase of the negotiations, IFM was permitted to conduct exploratory drilling in specified ore blocks at the Rooderand Mine, which is held by Chrometco’s subsidiary, Rooderand Chrome Proprietary Limited (“Rooderand”). Pilanesberg Mining Co Proprietary Limited (“Pilanesberg”), a subsidiary of Chrometco, is the holder of the mining rights which entitles it to conduct mining in respect of the Rooderand Mine for its own benefit. 2. Mining services and ore sale agreement The Board of Directors of Chrometco are pleased to report that Chrometco, via its Pilanesberg and Rooderand subsidiaries , has entered into agreements with IFM on 10 October 2014 (“the Agreements”) in respect of the LG6 chromite seam (“Mineral Seam”) at Rooderand as follows: 2.1 Mining services IFM has been appointed to conduct mining services by Pilanesberg, and shall, in accordance with an agreed mining plan, be entitled to mine the Mineral Seam either:- 2.1.1 until such time as it shall have mined a total of 200 000 tonnes of ore ; or 2.1.2 for a period of 12 months from date of signature of the Agreements; or 2.1.3 until the Mineral Seam has been mined out; whichever occurs first (“Mining Services Agreement”). 2.2 Ore sale agreement In terms of the ore sale agreement, Pilanesberg shall exclusively sell to IFM, which shall purchase from Pilanesberg, all ore produced from the Mineral Seam pursuant to the Mining Services Agreement. Consideration In terms of the Agreements, Chrometco will receive a portion of the net profits per tonne of the ore mined, after deduction of all mining costs. This amount may vary between a minimum of R25.00 and a maximum of R65.00 per tonne, depending on the chromite content and impurities of the ore. Mining activities are expected to commence during October 2014. Withdrawal of cautionary Shareholders are advised that caution is no longer required when dealing in their Chrometco securities. Johannesburg 10 October 2014 Designated Advisor: Sasfin Capital (A division of Sasfin Bank Limited) Date: 10/10/2014 03:28:00 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.