Update regarding the liquidation and continued suspension of shares Chemical Specialities Limited Incorporated in the Republic of South Africa Registration number 2005/039947/06 Share code: CSP &CSPP ISIN: ZAE000109427 & ZAE000184305 ("Chemspec" or "the Company") Update regarding the liquidation and continued suspension of shares Shareholders are referred to the announcements released on SENS on 3 August 2015, 11 September 2015 and 10 December 2015, regarding the Company being placed into provisional liquidation on 5 August 2015. The Joint Provisional Liquidators (“Liquidators”) appointed by the Master of the High Court Durban are: Eugene Nel, Thami Mshengu, Roselyn Noel and Selby Ntsibane. The Liquidators appointments were made final on the 18th November 2015. 1. We have lodged the first liquidation and distribution account which account only deals with debtors collected thus far; 2. The account is currently lying open for inspection in terms of Section 406 of the Insolvency Act. 3. The landlord has requested that we do not pay preferent and concurrent creditors and that we do not do a distribution on the movable assets as they believe that their part, or full claim constitutes a cost in the administration. 4. The claim of the landlord is R609,529,597-52 5. The landlord threatened to interdict the liquidators from lodging an account dealing with creditors as per paragraph 4 above. 6. In order not to incur any unnecessary legal costs, we agreed not to do a distribution as set out in paragraph 4. 7. Should the landlord not bring an action to establish its claim, then we intend on lodging the second liquidation and distribution account, which will make provision for a distribution to concurrent and preferent creditors. Shareholders are advised that the liquidation process is ongoing and that the trading in the shares of the company remains suspended. A recovery for shareholders appears to be extremely unlikely. The statutory report, resolutions, circulars to creditors and liquidation & distribution account can be downloaded from the website: www.chemliq.co.za. PIETERMARITZBURG 9 JUNE 2016 Designated Advisor: Grindrod Bank Limited Date: 09/06/2016 10:50:00 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.