AFRIMAT LIMITED - Cautionary Announcement

Cautionary Announcement

Afrimat Limited
Incorporated in the Republic of South Africa
(Registration number: 2006/022534/06)
Share code: AFT ISIN: ZAE000086302
(“Afrimat” or “the Company”)

CAUTIONARY ANNOUNCEMENT

1. Introduction

Shareholders are advised that the Company has entered into negotiations regarding an acquisition of
an Iron Ore business, currently placed under formal business rescue. A formal business rescue
proposal by the Company was presented to the creditors of the business on Friday, 23 September
2016. This business rescue proposal was accepted and approved by the creditors with the requisite
majority.

2. Conditions Precedent

The implementation of the Company’s business rescue proposal will be subject to the successful
completion of a Cession and Delegation Agreement with the Secured Creditor of the business, a Sale
of Shares and Shareholders Agreement with the current shareholders as well as a Management
Agreement.

If all conditions have been successfully concluded, it may have a material effect on the price of the
Company’s securities. Accordingly, shareholders are advised to exercise caution when dealing in the
Company’s securities until a full announcement is made.

27 September 2016
Cape Town
Sponsor: Bridge Capital Advisors Proprietary Limited

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