Progress Update and Renewal of Cautionary Announcement CHROMETCO LIMITED (Incorporated in the Republic of South Africa) (Registration number: 2002/026265/06) Share code: CMO ISIN Code: ZAE000070249 (“Chrometco” or “the Company”) PROGRESS UPDATE AND RENEWAL OF CAUTIONARY ANNOUNCEMENT 1. INTRODUCTION Shareholders are referred to the announcements released on SENS, the last of which was dated 7 November 2016 wherein the Company announced that it had entered into agreements to recapitalise the Company by way of a subscription agreement for R5 million and a loan facility of R10 million. The Company also announced that it had entered into an agreement to acquire 51% of Palm Chrome Holdings Proprietary Limited (“Palm Chrome”) in exchange for 200 million Chrometco ordinary shares (“Palm Chrome Acquisition”). Furthermore, the Company announced that it had entered into an agreement to acquire 51% of Black Chrome Holdings Proprietary Limited (“Black Chrome”) and 25% of the commodity trading company, Sail Minerals Proprietary Limited (“Sail”) in exchange for 2 205 million Chrometco ordinary shares (“Black Chrome Acquisition”). 2. PROGRESS UPDATE The Company is pleased to advise shareholders that numerous conditions precedent to the transaction have been fulfilled, including the production and sale of 15 000 tons of chrome ore originating from the Black Chrome Mine over two consecutive months of mining operation. The Company has also undertaken additional geological resource assessments of the Black Chrome mine and the Company’s Rooderand mining asset. The Company is progressing well in finalising the various reports required by the JSE and will distribute a circular to shareholders early in 2017. 3. RENEWAL OF CAUTIONARY ANNOUNCEMENT Until such time as all the information required in terms of the Listings Requirements have been disclosed, shareholders are advised to continue to exercise caution when dealing in the Company’s securities until a further announcement is made. Johannesburg 8 December 2016 Designated Advisor and Corporate Advisor: PSG Capital Proprietary Limited Date: 08/12/2016 05:25:00 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.