Afrimat acquires manganese and iron ore business

Afrimat has entered into a Sale of Shares agreement with the Sellers, in terms of which the Company will purchase 100% of the issued ordinary shares of Coza Mining Proprietary Limited for R300 million.

The Sellers involved in the Acquisition are:

         •   Niel Claassens;

         •   Boundless Information Systems Trust;

         •   Kesavan Naidoo;

         •   Zungu Investment Company Proprietary Limited;

         •   Ingede Holdings Proprietary Limited;

         •   Caltal Trust; and

         •   Oakwood Trading 21 Proprietary Limited.

Coza is a company domiciled in the Republic of South Africa. The principal activities of the company are the exploration and prospecting for potential mining of iron ore and manganese in the Northern Cape.

Coza has three projects, namely; Jenkins, Driehoekspan and Doornpan.

The opportunity presents the following:

         •   Securing a significant high quality iron ore resource close to the current Demaneng operation;

         •   Close proximity to existing operations to leverage existing resources;

         •   Asset includes possible manganese resource for further exploration;

         •   Execution of a product supply agreement for the supply of direct shipping ore to ArcelorMittal South Africa; and

         •   Possible expansion opportunities due to increased resource size at Driehoekspan and Doornpan.

A Mining Contractor’s Agreement has been concluded between Afrimat (or its nominee) and Coza appointing Afrimat as mining contractor, whereby Afrimat will acquire effective operational control of the mining operations.