Petmin Subsidiary, Tendele Coal Mining (Pty) Limited Arbitration Update PETMIN LIMITED Incorporated in the Republic of South Africa Registration Number 1972/001062/06 Share Code JSE: PET ISIN: ZAE000076014 ("Petmin" or the "Company") PETMIN LIMITED - PETMIN SUBSIDIARY, TENDELE COAL MINING (PTY) LIMITED ARBITRATION UPDATE Shareholders were advised on 21 May 2015 as published on SENS, that Petmin's subsidiary Tendele Coal Mining (Pty) Limited, had withdrawn from the arbitration with its customer, as described in Note 13 of Petmin's December 2014 Interim Financial Statements published on Sens on Tuesday 24 February 2015 and would seek declaratory relief from the High Court that the contract concerned is void. "This course of action has been taken due to information recently coming to Tendele's and Petmin's attention during the course of the arbitration proceedings which is being considered and dealt with by Petmin". The arbitration dealt with claims as described in Note 29 of Petmin's Annual Financial Statements for June 2013, Note 28 in Petmin's Annual Financial Statements for June 2014 and June 2015 and as described in Note 11 of Petmin's December 2013 Interim Financial Statements, Note 13 of Petmin's December 2014 Interim Financial Statements and Note 14 of Petmin's December 2015 Interim Financial Statements . Petmin, after investigation established incidents of fraud, bribery and corruption in connection with the conclusion of the contract for the sale of discard product to the customer entered into in October 2012 that entitled it to avoid (cancel). Supply under the contract was halted in May 2013. These incidents have been substantiated by an admission of fraud, bribery and corruption which occurred during the period October 2012 to May 2013. Petmin and Tendele furthermore reported the fraud, bribery and corruption to the Directorate of Priority Crime Investigation on 17 August 2015 in terms of the Prevention and Combatting of Corrupt Activities Act 12 of 2004. Tendele instituted an action in the High Court in September 2015 to have the contract declared void on the grounds of fraud, bribery and corruption and to recover damages suffered by Tendele. Tendele and its legal advisers believe that it has good prospects of succeeding in this action. The setting aside of the contract will confirm the invalidity of the arbitration as well as any award made in the arbitration. Notwithstanding Tendele's withdrawal from the arbitration and institution of the High Court action on the grounds of fraud, bribery and corruption, the arbitration continued on an uncontested basis, despite requesting the arbitration to be postponed pending the outcome of the High Court action. On 2 December 2015, the arbitrator delivered an award against Tendele, and specifically disregarded material evidence presented by Tendele up to and until the point of its withdrawal from the arbitration. Tendele maintains that this award is invalid and the customer had been notified that Tendele will vigorously oppose any approach to the High Court to enforce the award given the High Court action to have the contract declared void or voidable on the grounds of fraud, bribery and corruption. In addition, the award itself is reviewable by a High Court. As Tendele and its legal advisors believe that the prospect of success in the High Court action to declare the contract void is good, no liability will be recorded in relation to the award made by the arbitrator. Furthermore, this award has no impact on the operational performance of Tendele. Petmin will continue to update its shareholders. Enquiries: Petmin Bradley Doig +27 824 597 818 www.petmin.co.za JOHANNESBURG 3 December 2015 JSE Sponsor and Corporate Adviser River Group Date: 03/12/2015 04:00:00 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.