Update on Ceramic Acquisition and Rights Offer Italtile Limited Incorporated in the Republic of South Africa (Registration number 1955/000558/06) Share code: ITE ISIN: ZAE000099123 (“Italtile”) UPDATE ON CERAMIC ACQUISITION AND RIGHTS OFFER Italtile shareholders are referred to the “Request for consideration filed with the Competition Tribunal regarding proposed merger between Italtile and Ceramic” announcement published on SENS on 11 August 2016, the “Competition Commission ruling on proposed merger between Italtile and Ceramic” announcement published on SENS on 28 July 2016, the “Binding Offer to Acquire Shares in Ceramic, Rights Offer Declaration and Withdrawal of Cautionary” announcement published on SENS on 20 July 2016 and the “Offer to Acquire Shares in Ceramic, Details of the Italtile Rights Offer and Renewal of Cautionary” announcement published on SENS on 26 April 2016. In the announcement of 11 August 2016, the board of directors of Italtile (“Board”) advised shareholders that a Request for Consideration was filed with the Competition Tribunal on Thursday, 11 August 2016. The Board wishes to advise shareholders that an in limine Competition Tribunal hearing ("the Hearing") will be held to consider certain circumscribed aspects of the merger. The proposed dates for the Hearing are 25 and 26 October 2016. Furthermore, with reference to the announcement of 20 July 2016 and given the rationale for the Rights Offer, the Rights Offer will be postponed pending the outcome of the Hearing. Shareholders will be advised of the outcome of the Hearing and its impact on the Rights Offer in due course. Johannesburg 14 September 2016 Sponsor Merchantec Capital Legal Advisor to Italtile Hogan Lovells (SA) Inc. Corporate and Legal Advisor to Rallen Rabin & Associates Proprietary Limited Date: 14/09/2016 05:00:00 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.