BUILDMAX LIMITED - Withdrawal of cautionary announcement

Withdrawal of cautionary announcement

BUILDMAX LIMITED
Incorporated in the Republic of South Africa
(Registration No. 1995/012209/06)
Share Code: BDM
ISIN Code: ZAE000167318 
("Buildmax" or “the Company” or “the Group”)

Withdrawal of cautionary announcement

Shareholders are referred to the announcements released by the Company on 20 October,
26 October, 12 November and 27 November 2015 respectively (“Announcements”). These
Announcements made reference to Buildmax’s wholly-owned subsidiary, Diesel Power
Mining Proprietary Limited, trading as Diesel Power Botswana, which is registered in the
Republic of Botswana, (“Diesel Power Botswana”) and its client Messina Copper (Botswana)
Proprietary Limited (“Messina Copper”), the operating subsidiary of ZCI Limited’s subsidiary,
African Copper Plc, a debtor of Diesel Power Botswana.

On 11 December 2015, the High Court of the Republic of Botswana granted a final order for
the liquidation of Messina Copper whereby the remaining assets of Messina Copper will be
auctioned off and the proceeds going to their creditors. It is unclear at this stage how much
cash will be realised as a result of this liquidation.

At the meeting of Diesel Power Botswana’s creditors on 11 December 2015, both preferred
and concurrent creditors voted in favour of an orderly sale and potential rental of plant
assets in order to maximise the recovery to creditors. As a result, the creditors also voted to
refrain from taking any measure to enforce payment of a debt owing to them and will not
apply to place Diesel Power Botswana into liquidation.

Authority was received from the South African Reserve Bank and the lenders to transfer
money to Botswana to settle staff as a preferred creditor. This has been timeously executed.

As communicated to shareholders on 27 November 2015, Diesel Power Botswana’s
expected aggregated pre-tax exposure to Messina Copper is approximately R60 million. As
it remains uncertain as to what proceeds Diesel Power Botswana will receive from the
liquidation of Messina Copper, the Company continues to anticipate a maximum pre-tax
aggregated annual impairment of R93 million by the end of the financial year including the
non-cash related impairment of plant.

Whilst risks still exist with regards to both the winding up of Messina Copper and the
maximisation of Diesel Power Botswana raising funds to settle its creditors, shareholders are
no longer required to exercise caution when dealing in Buildmax securities.


Benoni
14 December 2015


Sponsor to Buildmax
Questco (Pty) Ltd

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