Trading statement for the full year ended 27 December 2014 Delta EMD Limited (Incorporated in the Republic of South Africa) Registration number 1919/006020/06 ISIN: ZAE000132817 Share code: DTA (“Delta EMD” or “the Group”) TRADING STATEMENT FOR THE FULL YEAR ENDED 27 DECEMBER 2014 Shareholders are referred to the Group’s statement of unaudited results for the six months ended 27 June 2014 released on the Stock Exchange News Service of the JSE Limited on 21 August 2014. This trading update is for the full year ending 27 December 2014 (“full year”) and is intended to apprise shareholders of the expected Group results for the full year, of progress made toward the liquidation of inventories, and of an additional impairment. This trading update also provides updates on required regulatory approvals, the progress made toward the sale of assets, and expenses incurred in connection with the discontinuation of the Group’s business. More than ninety percent of the Group’s inventories on hand as at 27 June 2014 and subsequently generated through work-in-process are expected to be sold before year end. The remaining inventories are expected to be sold during the first quarter of 2015. The marketing of assets held for sale continues. Assets classified as assets held for sale include the Black Rock calciner plant and the former Australia plant site. An agreement for the sale of the Black Rock calciner plant was signed on 4th December 2014. The agreement is subject to the fulfilment of certain suspensive conditions by 30 January 2015. An agreement for the sale of the Australian plant site was signed on 21 November 2014. The agreement is subject to the fulfilment of certain suspensive conditions by 28 February 2015. Sales of assets, and any gains realised on those sales, will be accounted for as and when ownership transfers and payment is received. A SENS announcement will be issued when the above mentioned agreements become unconditional. The Group has undertaken an impairment review of its assets in accordance with IAS36 and has determined to reduce the carrying value of the Black Rock calciner plant to fair value, resulting in a pre- tax impairment of R35.7 million. The regulatory processes required for approval of the decommissioning of the Nelspruit plant are proceeding as planned. The required final basic assessment report was submitted to the authorities during December 2014 after completion of stakeholder hearings held during October 2014 and November 2014. Regulatory approval for the decommissioning of the Nelspruit plant is expected to be granted during the first quarter of 2015. The sale of the majority of the Nelspruit assets must await decommissioning approval. Various loose assets, as well as assets not requiring the decommissioning approval, were sold during the second half of the year. The Group forecasts R23.2 million of profits on the sale of these assets during the full year. The Group’s expenses relating to the discontinuation of its business totalled R89.5 million (Eighty nine million and five hundred thousand rand) during the period up to 27 June 2014. R130.1 million (One hundred and thirty million and one hundred thousand rand) of such expenses are forecast for the full year, including the provisions reported in the first half for inventory impairment (R30.0 million), retrenchments (R40.6 million), and retention incentives (R11.2 million), as well as provisions related to the former use of a landfill site (R15.0 million), external advisors and consultants (R9.8 million), preparation of the required environmental reports (R5.2 million), and settlement of long term contracts (R4.0 million). Including the foregoing expenses and impairments, the Group forecasts an after tax loss for the year of between R107 million and R120 million (2013: an after tax loss of R69.2 million) and forecasts an after tax headline loss for the year of between R101 million and R113 million. This forecast includes R23.2 million of gains realised on the sales of certain Nelspruit assets referred to above, but excludes any gains or losses that might be realised on the sale of the Black Rock calciner plant or the Australia plant site. The Group expects to conclude the sale of the Black Rock calciner plant and the Australia plant site during the 1st quarter of 2015 and expects to declare special dividends following completion of those sales. The forecast financial information on which this trading statement is based has not been reviewed and reported on by the Group’s external auditors. Delta EMD’s results for the year are expected to be released on SENS on or about 20 February 2015. 19 December 2014 Nelspruit Merchant bank and sponsor RAND MERCHANT BANK (a division of FirstRand Bank Limited) Date: 19/12/2014 09:19:00 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.