Update regarding provisional liquidation and continued suspension of shares Chemical Specialities Limited Incorporated in the Republic of South Africa Registration number 2005/039947/06 Share code: CSP &CSPP ISIN: ZAE000109427 & ZAE000184305 ("Chemspec" or "the Company") Update regarding provisional liquidation and continued suspension of shares Shareholders are referred to the announcements released on SENS on 3 August 2015, 11 September 2015 and 10 December 2015, regarding the Company being placed into provisional liquidation on 5 August 2015. The Joint Provisional Liquidators (“Liquidators”) appointed by the Master of the High Court Durban are: Eugene Nel, Thami Mshengu, Roselyn Noel and Selby Ntsibane. The Liquidators appointments were made final on the 18th November 2015. 1. The first liquidation and distribution (L&D) account was confirmed on the 6th July 2016; 2. The first L&D account only dealt with debtors collected thus far, as the landlord had lodged a claim in the amount of R609,529,597.52, which claim the Master of the High Court had rejected. As advised previously, the landlord had requested that we do not pay preferent and concurrent creditors and that we not do a distribution on the movable assets as they believe that their part, or full claim constitutes a cost in administration; 3. The Liquidators engaged in the services of a Quantity Surveyor, as did the Landlord and a consensus was reached on the value of the Landlord’s claim, save and except for the Landlord’s discrepancy relating to the Bulk Storage Tanks, Water Chiller Plant and Reception; 4. The Liquidators have proposed a settlement and should the Landlord accept same, we should be in a position to lodge the second L&D account in April 2017; 5. Shareholders are advised that the liquidation process is ongoing and that the trading in the shares of the company remains suspended and that a recovery for shareholders appears to be extremely unlikely. The statutory report, resolutions, circulars to creditors and L&D account can be downloaded from the website: www.chemliq.co.za Pietermaritzburg 10 March 2017 Designated Advisor: Grindrod Bank Limited Date: 10/03/2017 09:45:00 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.