Bsi : Notification to shareholders – Financial assistance 26 January 2017

26 January 2017

Dear Shareholder

Section 45 of the Companies Act of 2008 and the special resolution passed by shareholders on 6 September 2016 refer.

BSI Steel Limited has a wholly-owned subsidiary company I silo Steel (Pty) Ltd. The funding of the BSI Steel group is done on a group basis and subsidiaries contribute to the group securities which include cross-company guarantees from the holding company in favour of the subsidiaries and v isa versa.

Group expenses, sundry purchases, steel purchases, working capital and fixed capital funding is controlled via inter- company loan accounts. All transactions are at arms-length, at market-related prices and are done in the ordinary course of business. The terms of the inter-company loan accounts and guarantees giv en are fair and reasonable to the holding and subsidiary company.

The Board records that BSI Steel Limited is solv ent and liquid and is able to pay its debts in the ordinary course of business for the next 12 months and authorises the financial assistance in the form of group expenses, sundry purchases, steel purchases, working capital, fixed capital funding transactions and guarantees giv en to I silo Steel (Pty) Ltd in the ordinary course of business up to a value of R 1.2 billion.

S J Hackett Company Secretary

P.O. Box 101096, Scottsville, Pietermaritzburg, 3209 // 46 Eden Park Drive, Murrayfield Park, Mkondeni, Pietermaritzburg, KZN, 3201Tel: +27 0 33 846 2222 // Fax: +27 0 33 846 2233 // www.bsi steel .com

P.O. Box 101096, Scottsville, Pietermaritzburg, 3209 // 46 Eden Park Drive, Murrayfield Park, Mkondeni, Pietermaritzburg, KZN, 3201Tel: +27 0 33 846 2222 // Fax: +27 0 33 846 2233 // www.bsi steel .com