PPC Enters into a Standby Underwriting Agreement PPC Ltd (Incorporated in the Republic of South Africa) (Company registration number: 1892/000667/06) JSE code: PPC PPC ISIN: ZAE000170049 ("PPC" or the "Company") PPC ENTERS INTO A STANDBY UNDERWRITING AGREEMENT Further to the announcement released by the Company on the Stock Exchange News Service of the JSE Limited on 24 June 2016, confirming that the Company had fulfilled all of the conditions precedent under the Liquidity and Guarantee Facility Agreement required to give effect to an irrevocable and unconditional guarantee in favour of Noteholders of the Company’s outstanding notes, PPC now advises that it has entered into a standby underwriting agreement in relation to underwriting its proposed rights offer of R4 billion. The Company is pleased to announce that it has mandated a syndicate of banks comprising The Standard Bank of South Africa Limited, Nedbank Limited, Absa Bank Limited and Rand Merchant Bank, a division of FirstRand Bank Limited, (collectively the “Joint Bookrunners”) to lead its proposed rights offer process. The Standard Bank of South Africa Limited has been appointed as Sole Global Coordinator. The Joint Bookrunners have provided a standby underwriting commitment of R4 billion in relation to the proposed rights offer. This will be replaced by a formal underwriting commitment in due course, subject to the satisfactory fulfilment of the conditions precedent. The Company continues to target the posting of a circular to shareholders during the week of 27 June 2016 in order to convene a shareholders’ extraordinary general meeting (“the EGM”), to approve the necessary resolutions required to implement the proposed rights offer, towards the end of July 2016. Accordingly, a further announcement will be released providing shareholders with the salient dates and times of the EGM as well as further information relating to the proposed rights offer. Darryll Castle, CEO of PPC said ”The execution of the irrevocable and unconditional guarantee in favour of Noteholders as well as the signing of the standby underwriting agreement are two major milestones for PPC. These pave the way for the Company to resolve its capital structure issues effectively, and focus its efforts on implementing its strategy going forward.” FURTHER CAUTIONARY ANNOUNCEMENT Shareholders are advised to continue to exercise caution when dealing in PPC securities until a further announcement in this regard is made. 27 June 2016 Joint transaction sponsors The Standard Bank of South Africa Limited Nedbank Limited Sponsor Merrill Lynch South Africa (Pty) Limited PPC: Azola Lowan Tel: +27 (0) 11 386 9000 Azola.Lowan@ppc.co.za Financial Communications Advisor: Instinctif Partners Morne Reinders Mobile : +27 (0) 82 325 1810 Morne.Reinders@instinctif.com Louise Fortuin Mobile: +27 (0) 71 605 4294 Louise.Fortuin@instinctif.com Any securities which will be offered will not be and have not been registered under the US Securities Act of 1933 ("US Securities Act") and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements under the US Securities Act. Date: 27/06/2016 08:38:00 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.