Disposal of mining rights and related properties Buildmax Limited Incorporated in the Republic of South Africa (Registration No. 1995/012209/06) Share Code: BDM ISIN Code: ZAE000167318 ("Buildmax" or the “Group”) DISPOSAL OF MINING RIGHTS AND RELATED PROPERTIES 1. Introduction Shareholders are referred to the announcement released by Buildmax on SENS on 28 August 2014 in terms of which shareholders were advised that Buildmax’s wholly-owned subsidiary, Buildmax Aggregates and Quarries (Pty) Ltd (“BAQ”) had entered into an agreement with Raubex Group Ltd ("Raubex") and its wholly-owned subsidiary, Raumix Aggregates (Pty) Ltd ("Raumix"), in terms of which – - Raumix acquired certain assets of BAQ for a total consideration of R54 761 000 (the “Initial Transaction”); and - BAQ was granted a put option, exercisable between 1 June 2015 and 31 December 2016, to sell the mining rights in respect of aggregates and quarries held by BAQ’s subsidiaries as well as the related properties (collectively, the “Sale Assets”) (the “Option”) for an aggregate consideration of R37 000 000, payable in cash. Buildmax is pleased to advise that BAQ and Raubex mutually agreed to an early exercise of the Option and BAQ exercised the Option on 5 March 2015. In accordance with the terms of the Option, Raumix settled the R37 000 000 Option consideration, in cash, on 10 March 2015. 2. Condition precedent Notwithstanding the payment of the Option consideration, the Option is subject to receipt of Ministerial consent to the cession and transfer of the relevant mining rights in terms of section 11 of the Mineral and Petroleum Resources Development Act, and will become effective on the date consent is obtained. 3. Rationale for the disposal The board of directors of Buildmax has determined that the aggregate and quarry operations of BAQ, operated pursuant to the mining rights, are non-core to the main opencast mining and civils business of Buildmax. The consideration received upon exercise of the Option will be used to fund the working capital requirements of the broader Group. 4. Net asset value and profits attributable to the Sale Assets For the year ended 28 February 2015, the net asset value attributable to the Sale Assets was R37 million and the net profits attributable to the Sale Assets, earned in terms of a mining contract entered into with Raumix, was R1.85 million. 5. Categorisation of the transaction Section 9.11 of the JSE Listings Requirements requires the application of the aggregation principle where a series of transactions are completed during a twelve month period with the same party or associates thereof. Applying this principle to the Initial Transaction and the disposal in respect of the Option results in the Option being categorised as a category one transaction. Accordingly, the approval of the shareholders for the exercise of the Option will be sought at the Buildmax annual general meeting. The notice of annual general meeting, which shall contain, inter alia, the information required in terms of paragraph 9.20(b) of the JSE Listings Requirements, will be posted to shareholders in due course. Benoni 10 July 2015 Sponsor to Buildmax QuestCo (Pty) Ltd Date: 10/07/2015 12:37:00 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.