Report in terms of S132 (3) (a) of the Companies Act No. 71 of 2008 EVRAZ Highveld Steel and Vanadium Limited (Incorporated in the Republic of South Africa) (Registration No: 1960/001900/06) Share code: EHS ISIN: ZAE000146171 (“Highveld” or “the Company”) REPORT IN TERMS OF S 132(3)(a) OF THE COMPANIES ACT NO.71 OF 2008 Shareholders are advised that the Joint Business Rescue Practitioners have prepared a business rescue update report for November 2016 to the Companies and Intellectual Property Commission and to all Affected Persons in terms of Section 132(3) (a) of the Companies Act, 71 of 2008. The Report The content of the Report is as follows: 1. Introduction 1.1. The business rescue proceedings of the Company have not been concluded within three months of the date of commencement thereof, and therefore this update report is being tabled in terms of section 132(3)(a) of the Companies Act 71 of 2008 (“Act”). 1.2. It is important to read this report in conjunction with the Business Rescue Plan (“Plan”) and previous update reports. 2. Update on Business Rescue Proceedings 2.1. The joint BRPs are proceeding in terms of the wind-down contemplated in Proposal 3 of the Plan. 2.2. A general meeting of affected persons was held on 28 October 2016. The presentation is available on the Company’s website: http://www.evrazhighveld.co.za/BusinessRescue/Creditors%20Meet ing%2028%2010%202016%20Final.pdf 3. Proof of Claims 3.1. The claims submission period has closed. 1 3.2. Creditors are still being informed on a) whether their claim has been accepted and b) the quantum of such claim. 3.3. Please refer any questions or queries relating to your claim to evrazhighveld@matusonassociates.co.za 4. Litigation The joint BRPs still await the answering affidavit of Air Liquide. Air Liquide has further advised of its intention to bring a counter- application. Affected Persons will be advised of further updates. 5. Suggested Way Forward In terms of the Plan, the business rescue is proceeding in accordance with Proposal 3, i.e. the wind-down of the Company. 6. Conclusion It is the joint BRPs’ view that Proposal 3 will result in a better outcome for all affected persons than a liquidation eMalahleni 22 November 2016 J.P. Morgan Equities South Africa (Pty) Ltd. Sponsor 2 Date: 22/11/2016 08:28:00 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.