Operational update ArcelorMittal South Africa Limited (Incorporated in the Republic of South Africa) Registration number: 1989/002164/06 Share code: ACL ISIN: ZAE000134961 (“ArcelorMittal” or “the Company”) OPERATIONAL UPDATE Shareholders are referred to the Rights Offer circular (“the Circular”) dated 21 December 2015, the reviewed condensed consolidated financial statements for the six months ended 30 June 2015 (“the interim results”) as well as the various announcements made during November and December 2015. In particular the board of directors (Board) indicated that there were “specific key initiatives which are in place which in the Board’s view have a reasonable prospect of returning the Company to profitability”. Update The Company is pleased to announce, with regard to the consideration by the South African Government (“Government”) of the increase of custom duties on imported primary steel that is also locally produced from 0% to the bound rate of 10%, that further duties have been implemented with regard to Wire Rod and Rebar with effect from 18 December 2015, bringing a total of 3 applications implemented out of the final 10 submitted to the International Trade Administration Commission (ITAC) to date. Final decisions on the remaining applications are expected in early 2016. In addition, additional applications for specific safeguard duties relating to Other Bars and Rods, Rebar, Hot Rolled Coil, Cold Rolled Coil and Plate were submitted to ITAC during December 2015. The engagements with Government regarding their consideration of the designation of local steel for state procurement and Government infrastructure spend (designation) and agreement on a pricing mechanism for ArcelorMittal produced steel are advanced and ongoing. In addition, Shareholders are referred to the interim results and the various announcements and investor presentations made during November and December 2015 wherein it was outlined that the company’s funding plan takes into account continued efforts in cost reduction, the cut- back of non-essential capital expenditure, liquidation of excessive stocks, matching production to demand, the sale of redundant assets, continued support from ArcelorMittal Group and the continuation of local short-term borrowing facilities, the rights offer and the BEE ownership transaction and the positive effects of the tariff protection and steel designation measures. These initiatives remain focused and ongoing. Shareholders are advised that the local bank short-term borrowing facilities have recently been re-negotiated and have resulted in a reduced level, however the ArcelorMittal Group loan facilities have been extended to off-set the reduction as and when required. As previously communicated, the Rights Offer of R4,5bn is fully underwritten by ArcelorMittal Group and the company is expecting approximately R1,3bn to be received by about 25 January 2016 after partially settling the ArcelorMittal Group loans from the proceeds. The BEE Ownership transaction is well on track with net cash (still being priced) expected to be raised by July 2016. Further options for additional funding are also being explored as previously communicated. Lastly, Shareholders are reminded that the Company still faces challenges and future profitability is highly dependent on the above initiatives being successfully concluded. The Company would like to re-emphasise that without the requisite tariffs as applied for above and without the initiatives committed by Government regarding the use of local steel for government infrastructure projects, the steel industry and the Company will need to undertake significant structural change. Based on the above plans and initiatives and with the expectation that the tariff and designation measures will be in place by the end of Q1 2016, or shortly thereafter, the Board remains of the view that these interventions have a reasonable prospect of returning the Company to profitability in the medium term. Vanderbijlpark 7 January 2016 Sponsor JP Morgan Equities South Africa Date: 07/01/2016 09:20:00 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.