The York Timber Organisation Limited - Cautionary Announcement

The York Timber Organisation Limited
(Incorporated in the Republic of South Africa)
(Reg. no 1916/004890/06)
Share code    YRK    ISIN code  ZAE 000008108
("Yorkcor" or "the company")
Cautionary Announcement

Sasfin Bank Limited is authorised to announce that York Timbers Ltd

("York"), the main operating subsidiary of Yorkcor, has received five years'
notice from the Department of Water Affairs and Forestry of termination of
York's `evergreen' sawlog supply contract in respect of three plantations
which have supplied the group's York Lumber sawmill near Bushbuckridge since
1970.

The Minister of Water Affairs and Forestry has expressed the opinion that
the termination, effective from 1 January 2007, is in the interest of the
people of South Africa. The timberlands under contract to York are to be
incorporated into a proposed conservation area for use by South African
National Parks.

The Government accepts that York is entitled to compensation to place it in
at least the same financial position as if the contract had not been

cancelled. The contract provides that the amount of the compensation shall
be determined `on the basis of the value of the (York Lumber) business as a
going concern, enjoying the benefits of this contract without interruption'
. Negotiations for the quantification and payment of compensation in terms
of the evergreen contract are underway.

Yorkcor has developed a number of significant social upliftment programmes
for the benefit of communities in the vicinity of its sawmilling operations
and of the forests. In the negotiations with the Government, the company
will give attention to the impact of these developments upon the

neighbouring communities, as well as its employees.

Until the expiration of the contract in five years' time, York is entitled
to require adherence to normal silvicultural practices in the management of
the forest and in the supply of timber to its York Lumber sawmill.

Compliance has not always been forthcoming. A number of court actions over
the years underpin York's key rights, which will continue to be vigorously
protected.

Shareholders are therefore advised to exercise caution when dealing in their
Yorkcor shares until a further announcement is made.
Pretoria
25 January 2002
SPONSOR
SASFIN BANK
The York Timber Organisation Limited
P O Box 380
Pretoria
0001