IMBS acquisition update and further cautionary MINE RESTORATION INVESTMENTS LIMITED Incorporated in the Republic of South Africa (Registration Number: 1987/004821/06 Share code: MRI ISIN: ZAE000164562 ("MRI" or the "Company") UPDATE IN RESPECT OF THE AQUISITION OF IRON MINERAL BENEFICIATION SERVICES PROPRIETARY LIMITED ("IMBS") AND ON THE CURRENT OPERATIONS OF MRI 1. UPDATE IN RESPECT OF THE ACQUISITION OF IMBS Shareholders are referred to the detailed cautionary announcement released on SENS on Friday 26 June 2015 (“Announcement”) in which MRI disclosed indicative terms of the acquisition of approximately 39.2% of the issue share capital of IMBS ("IMBS Acquisition") as well as further and related corporate actions thereto. The board of MRI is pleased to update shareholders that the IMBS Acquisition is progressing satisfactorily and further key terms to the transaction are being finalised between the relevant parties involved with a view to commence preparing formal legal documentation in the immediate term. Furthermore, in light of the IMBS Acquisition constituting a Reverse Takeover in terms of the Listings Requirements, the Company has submitted and will soon be presenting a comprehensive business plan to the JSE Limited as per the Listing Requirements applicable to the AltX bourse. The Company will release further details and terms in respect of the IMBS Acquisition once appropriate to do so. 2. UPDATE IN RESPECT OF CURRENT OPERATIONS Further to the Announcement, shareholders are advised that conditions at the Company’s coal fines processing operations, which is located on the site of the Vaalkrantz Colliery (“Vaalkrantz” or “the Colliery”), owned by Keaton Energy Holdings, have continued to struggle. Despite a sustained effort to improve operations, including incurring further capital investment, the challenge posed by the severe drought in the region has rendered the current operations unviable. Accordingly, the Company has decided to place these operations under care and maintenance until such conditions improve, and will continue to try to find ways to operate with reduced water consumption. The Company is following the regulatory procedures required in terms of Section 189 (“Section 189”) of the Labour Relations Act No. 60 of 1995, which will result in a restructuring of operations and redundancies. This decision has not been taken lightly as MRI recognises the importance of conserving jobs, but at the same time the need to preserve the Company’s financial structure and ensure its future sustainability is paramount. In the interim the Company has identified alternative sites upon which it can run its processing operations and is engaging with relevant parties to develop these sites in the future. In conjunction with its technology partner, Virto Inc, MRI has undertaken testwork and commenced commercial negotiations at a number of these sites, and expects to provide updates on material developments in this regard to the market in the future. 3. FURTHER COMMUNICATION Once all the terms of the IMBS Acquisition have been finalised, a detailed terms announcement will be published. Shareholders are advised to continue to exercise caution when dealing in MRI’s securities until further information has been published. Johannesburg 20 July 2015 Designated Adviser Stellar Advisers (Pty) Ltd Date: 20/07/2015 05:10:00 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.