Chemspec group restructure cautionary announcement and compulsorily convertible preference shares conversion Chemical Specialities Limited Incorporated in the Republic of South Africa Registration number 2005/039947/06 Share code: CSP & CSPP ISIN: ZAE000109427 ("Chemspec" or "the Company") CHEMSPEC GROUP RESTRUCTURE CAUTIONARY ANNOUNCEMENT AND COMPULSORILY CONVERTIBLE PREFERENCE SHARES CONVERSION 1. Restructure Plan ChemSpec announces that it has entered into negotiations which, if successful will result in the restructuring of the group which will have long term benefits for its shareholders (the “Restructure Plan”). 2. Compulsorily convertible preference shares Pursuant to and as part of the proposed Restructuring Plan, it is proposed that the conversion into ordinary shares of the existing compulsorily convertible preference shares (“CCPs”) in ChemSpec will be accelerated by issuing ordinary shares at an exchange ratio that will incorporate the discounted present value of all CCPs dividends due in respect of the period ending on the original compulsory conversion date of the CCPs. In anticipation of the approval of the Restructuring Plan by the relevant shareholders, the Company will not be declaring and paying a dividend on the CCPs for the six months ending 25 November 2014. The proposed conversion of the CCPs requires shareholder approval and such resolution will be included in the transaction circular and notice of meeting relating to the proposed Restructure Plan that will be circulated to shareholders in due course, should the negotiations be successful. 3. Cautionary Shareholders are advised that the proposed Restructuring Plan, if successfully concluded, may have a material effect on the price of the Company’s securities. Accordingly, shareholders are advised to exercise caution when dealing in the Company’s securities until a further detailed terms announcement is made. Durban 19 November 2014 Designated Advisor: Grindrod Bank Limited Date: 19/11/2014 03:50:00 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.