DELRAND RESOURCES LIMITED - Removal of the common shares of Delrand from the JSE Limited

Removal of the common shares of Delrand from the JSE Limited

Delrand Resources Limited
(Incorporated in Canada)
(Corporation number 627115-4)
Share code: DRN ISIN Number: CA2472672062
(“Delrand” or the "Company")


REMOVAL OF THE COMMON SHARES OF DELRAND FROM THE JSE LIMITED (“JSE”) LIST, IN TERMS
OF SECTION 12(5) OF THE SOUTH AFRICAN FINANCIAL MARKETS ACT, 2012 (the "Removal”)


1.     Introduction
       Shareholders are advised that the JSE has approved the removal of Delrand’s common
       shares from the JSE list, without making an offer to shareholders, on the basis that the
       Company is no longer eligible for a listing on the JSE’s Main Board or Alternative Exchange.
       The Removal was requested by Delrand, following the transfer of the Company’s listing in
       Canada from the Toronto Stock Exchange (“TSX”) to NEX (a separate board of the TSX
       Venture Exchange in Toronto) and the resultant deeming of the listing on the JSE to be a
       primary listing.

2.     Rationale
       The rationale for the Removal includes the following:

      - Delrand’s business has been the exploration of mineral properties (in Canada initially and
        subsequently in the Democratic Republic of the Congo). However, the Company
        currently has no material assets and no active business and is loss making. Delrand’s
        annual financial statements can be viewed on: www.moneyweb.co.za under the share
        code DRN.
      - The Company requires financing in order to place it in a position to pursue new business
        opportunities. Having to comply with the JSE Listings Requirements for primary listings (in
        addition to Canadian corporate and securities laws) places additional cost and time
        restrictions on the Company, in this and other regards.
      - Almost all of the Company’s common shares (“Shares”) are held on the Company’s
        Canadian shareholders’ register (97.7%), with only 2.3% (or 356,149 Shares) being held on
        the Company’s South African shareholders’ register (the “South African Register”) (in
        each case, as at June 24, 2016). Based on the current share price on the JSE and current
        exchange rates, the total value of all the Shares on the South African Register is only
        Cdn$13,032 (or US$9,931).
      - With respect to the 2.3% (or 356,149) of the outstanding Shares held on the South African
        Register, 240,819 of such Shares are held by non-South African shareholders, such that
        only 0.75% (or 115,330) of the outstanding Shares are held on the South African Register
        by South African shareholders (based in each case on the information on the South
        African Register as at June 24, 2016).
      - Given the Company’s Canadian listing, shareholders on the South African Register can
        move their Shares to the Company’s Canadian shareholders’ register subject to approval
        by the South African Reserve Bank (“SARB”)(in terms of South African exchange control
        regulations). There are approximately 600 shareholders out of 750 shareholders on the
        South African Register who hold less than 100 Shares.
      - During the Company’s fiscal year ended June 30, 2015, only 3.46% of the total number of
        Shares traded were traded on the JSE, with the remaining 96.54% traded in Canada.
        During the Company’s fiscal year ended June 30, 2016, only 6.27% of the total number of
        Shares traded were traded on the JSE, with the remaining 93.73% traded in Canada. This
        6.27% represents a total of 12,922 Shares, which means that there was an average of only
        1,077 Shares traded per month on the JSE over the last fiscal year.

3.   Exchange Control Approval
     The Removal was approved by SARB in terms of South African exchange control regulations.

4.   Salient Dates
     The salient dates for the Removal are set out below:

                                                                                             2016
     Publication of declaration data                                        Thursday, 1 September
     Finalisation date                                                      Tuesday, 13 September
     Last day to trade                                                      Tuesday, 20 September
     Shares suspended on JSE trading system                               Wednesday, 21 September
     Record date                                                             Friday, 23 September
     Shares removed from the JSE list                                        Monday, 26 September

5.   NEX Listing
     The listing of the Shares on NEX will not be impacted by the Removal.


Johannesburg
1 September 2016

Sponsor
Arbor Capital Sponsors Proprietary Limited

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