Growth through diversifi cation®

Contents Page

Group structure 1

Group at a glance 2

Geographical footprint 3

Our operations 4

Group snapshot 14

Journey to the present 15

Real transformation for sustainability 16

Our Health & Safety Policy 17

Our Environmental Management Programmes 17

1

Group structure

Eastern Cape

Free State

Gauteng

KwaZulu-Natal

Limpopo

Mpumalanga

Namibia

Western Cape

Aggregates

Southern Africa

Contracting

Eastern Cape

Free State

KwaZulu-Natal

Western Cape

Readymix

Free State

KwaZulu-Natal

Western Cape

Gauteng

Concrete Products

Gauteng

Industrial Minerals

Vision

To be the most respected construction materials and industrial minerals supply company in Southern Africa.

Our vision is built on:■ Well-managed operations■ Innovative, fl exible solutions■ Responsible, honest and motivated personnel■ Effective, reliable systems■ Being the preferred business partner■ More than satisfi ed stakeholders■ Healthy fi nances■ Concern for society and the environment

ValuesOur intrinsic values that form the golden thread weaving through every aspect of our culture and performance are:

■ trust ■ integrity ■ respect ■ accountability ■ teamwork ■ customer satisfaction

Group at a glance

2

Geographical footprint

3

Limpopo

Mpumalanga

Eastern Cape

Western Cape

Northern Cape

North West

Namibia

Gauteng

Free State

KwaZulu-Natal

Aggregates ContractingReadymixConcrete Products

Industrial Minerals

■ Commercial Quarries

■ Sand Mines

■ Gravel Mines

■ Mobile Crushing

■ Drilling & Blasting

The division produces aggregates of a wide variety of sizes and technical specifi cations, primarily with products including stone, gravel and sand – mainly for large-scale civil engineering and infrastructure projects. It also provides professional contracted drilling & blasting services. Refl ecting cohesive vertical integration, Afrimat’s proprietary commercial quarries – located in seven of South Africa’s provinces and in Namibia – also supply the majority of raw materials for our Concrete Products and Readymix divisions.

Afrimat continually ensures that stone reserves are adequate for the long-term needs of the group.

Products■ Crushed Aggregates■ Sand■ Laterite

Services■ Drilling & Blasting■ Crushing & Screening■ Transport & Logistics■ Earthmoving & Plant Hire

Aggregates

Our operations

4

All our products are recyclable

Quality assuranceThe Quality-at-Source strategy of the Mining & Aggregates division is founded on quality assurance being the responsibility of each successive link in the production process. In-process quality control is ensured by constant monitoring and evaluation – a computerised maintenance strategy is employed to ensure absolute reliability and minimum downtime. A zero-tolerance approach is adopted towards defects or deviations from quality standards and specifications.

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Services include drilling & blasting.

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■ Concrete building blocks of various sizes

■ Cement bricks of different shapes, colours and sizes

■ Cement pavers of different shapes, colours and sizes

■ A variety of further precast products

Concrete Products

Our operations (continued)

The division operates primarily in KwaZulu-Natal,

the Free State and Worcester in the Western

Cape, manufacturing concrete blocks and

bricks largely for low-cost housing. Precast

factories specifi cally manufacture concrete

bricks, building blocks, brick paving, walling and

moulded concrete products, which all carry the

SABS seal of approval. Certain factories within

the division also supply ready mixed concrete.

In line with the group’s vertical integration policy

90% of raw materials needs (excluding cement)

is sourced from the group’s own quarries.

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7

Bricks, blocks, pavers, etc. Our products carry the SABS mark.

SA BlockAfrimat acquired SA Block (Pty) Limited in 2012. As the leading manufacturer of clinker bricks in South Africa, it comprises 11 brick-making machines with a total capacity of 1,2 million bricks per day. All bricks are SABS approved.

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The division supplies concrete primarily to large-scale civil engineering and infrastructure projects through fi xed and mobile readymix plants where concrete is batched on demand and then transported to site by concrete mixer trucks. While the mobile concrete batching can be set up in any part of the country the fi xed

■ Fixed and mobile concrete batching plants

Readymix

plants are based in Western Cape, KwaZulu-Natal and Orange Free State. Close to 90% of Readymix’s raw material needs (excluding cement) are sourced from the group’s own quarries. All sales personnel are certifi ed by the Concrete & Cement Institute of South Africa.

Our operations (continued)

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Quality assuranceReadymix’s batching system meets the standards set by SARMA (South African Readymix Association) in order to deliver the highest quality products. For each project care is taken to ensure that the customer’s requirements are met in terms of the specific mix designs, quality assurance and control.

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Supplied out of 22 plants, all of which are fully certifi ed for Quality, Safety and the Environment by SARMA.

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Industrial Minerals

■ Metallurgical dolomite

■ Clinker

■ Lime Stone

■ Agricultural lime products*

■ Metallurgical quartzite

■ Alluvial silica

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Our operations (continued)

Glen Douglas produces a wide spectrum of aggregate products, the largest market sector is the readymix industry, with other markets including the concrete products and brick making industries. Agricultural lime is a premium product and provided to the agricultural industry.

In March 2012 Afrimat acquired Clinker Supplies which provides a mobile clinker reclaiming fl eet as well as crushing, screening, grading and loading services.

* (B4303 ACT 36 of 1947)

Afrimat’s Glen Douglas quarry is uniquely positioned to supply customers in the southern parts of Johannesburg, northern Free State and has a formidable presence in the Vaal area. High levels of metallurgical dolomite are produced at sustainable levels and supplied to the steel industry. The mine can facilitate cheaper transport costs for its customers through a rail siding equipped with a mechanical loading facility.

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InfrasorsIn March 2013, Afrimat acquired a 50,7% stake in resources group Infrasors Holdings Limited, further expanding its geographic reach and foothold in industrial minerals. Infrasors produces metallurgical dolomite, limestone and silica.

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www.infrasors.co.za

Contracting

Drilling & blasting servicesAfrimat provides a full package of drilling & blasting solutions for the construction and junior mining industries. It offers blast designs for bulk blasting in quarry and opencast mining as well as for specialised and restricted blasting in built-up areas. This division specialises in optimising cost and end results.

Drilling & blasting operates a modern fl eet of Atlas Copco drill rigs and offers a full complement of highly qualifi ed staff. In this regard, access to industry specialists and consultants ensures that the specialised services exceed customer expectations.

Contract crushing servicesAfrimat operates internationally through a mobile hard rock crushing service. Plant and equipment on offer include the following: ■ Tracked mobile crushers;■ Modular semi mobile units for larger projects;■ High specifi cation road materials such as G1

base course and road stone products;■ Screening;■ Primary and secondary reduction for small to

mid size mining; and■ Load and haul and stockpile services.Management personnel ensure optimal safety standards are employed to minimise client risk.

Our operations (continued)

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■ Drilling & blasting■ Mobile crushing and screening

■ Mobile/on-site readymix batching

Bid preparation and contractual servicesThe division uses its wide range of expertise and knowledge in fields such as drilling & blasting, load and haul, crushing and readymix concrete processing to prepare professional, contractually responsible and packaged bids for a host of high profile clients in the construction industry.

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With a mobile fl eet of over 20 crushers this division ensures fl exibility.

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Group snapshot

The group supplies a broad range of materials ranging from aggregates, concrete products (bricks, blocks and pavers) to readymix as well as industrial minerals. In addition Afrimat has established a strong foothold in contracting services comprising mobile crushing, screening, drilling & blasting, offering fl exibility even beyond fi xed areas of operation.

Afrimat’s fl exibility extends further – to project scale – with the group servicing major infrastructure and construction projects for public sector and government owned enterprises through to small private sector contracts. The diverse client base acts as a risk hedge and exposes Afrimat to the full range of construction and related spend in its target regions.

Our consistently low staff turnover has resulted in a deep skills pool. Real transformation, starting with staff and management and extending to community upliftment, is integral to the group’s sustainability. In addition, environmental conservation is an imperative part of our growth strategy.

Afrimat Limited is a leading black empowered open pit mining company providing construction materials and industrial minerals. The group is listed in the ‘Construction & Building Materials’ sector of the Main Board JSE Limited and Afrimat’s core subsidiaries have been in operation for more than 45 years.

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beyond

ject

r erprises

ge and uction

part of our growth strategy.

Journey to the present

1963 ■ Prima established

1965 ■ Lancaster established

1973 ■ Lancaster Precast established

2003 ■ Empowerment transaction between Mega Oils and Prima

2006 ■ Afrimat formed from merger of Lancaster and Prima

■ Afrimat listed on Main Board of JSE in ‘Construction and Building Materials’ sector

2007 ■ Acquired Malans Group and Denver Quarries

2008 ■ National footprint into Gauteng, Limpopo and Mpumalanga

2009 ■ Afrimat BEE Trust acquired 15,8% interest in group

■ Large-scale infrastructure contracts secured

■ BEE shareholding increased to 26,1%

■ Acquisition of Blue Platinum Quarry

2011 ■ Diversification into industrial minerals with acquisition of Glen Douglas dolomite quarry

2012 ■ Diversification into clinker market with acquisition of SA Block Group

2013 ■ Acquisition of 50,7% stake in Infrasors Holdings Limited

15

Real transformation for sustainability

Social Responsibility

Skills UpliftmentAfrimat prioritises ongoing training in order to raise standards of performance and productivity, offering internal courses and using external suppliers to facilitate continuous development of its skills-base.

A focused training division is dedicated to providing all employees with the opportunity of expanding their skills and qualifi cations.

In line with succession planning, candidates have been identifi ed and are receiving personal mentorship in furthering their formal education and operational knowledge. Focus is on the areas of mechanical and civil engineering as well as management where previously disadvantaged candidates have been appointed as Trainee/Assistant Managers as part of two-three year development programmes.

Community UpliftmentAfrimat adopts a broad-based approach to social responsibility and is committed to expenditure in terms of the social and labour plans required by the Department of Mineral Resources. The group accordingly undertakes related social development responsibilities with

each mining licence such as the establishment of community centres, school facilities, vegetable gardens, salaries for math teachers and infrastructure including roads and drainage. The group targets 1% of profi t after tax for social responsibility projects by each subsidiary. An annual progress report in this regard is submitted to the Department of Mineral Resources.

BEEAfrimat’s commitment to real and tangible transformation is evident in its progressive strides made in BEE. In 2009 Afrimat escalated direct black ownership in the group to 26,1% when it assisted the Afrimat BEE Trust to acquire 15,8% of the company’s issued share capital, putting the group ahead of Mining Charter requirements for 2014. The group’s main BEE partners are now Mega Oils (Pty) Limited and Joe Kalo Investments (Pty) Limited – both 100% black-owned companies with historic ties to the founding companies in the group – as well as the more recently-established Afrimat BEE Trust benefi ting black Afrimat employees. In 2012 the Afrimat BEE Trust increased its shareholding in Afrimat to 21%.

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Our Health & Safety Policy

The group manages its environmental footprint

through formal Environmental Management

Programmes (“EMPs”) in line with local and

international regulations and best practice.

The EMPs focus on responsible mining, reducing

emissions through upgrades to diesel-driven

equipment, decreasing noise pollution, recycling

products where viable and maintaining all plants

at optimum working levels and effi ciency.

Active programmes to reduce the group’s carbon

footprint have also recently been introduced.

With Afrimat committed to continually upgrading

and improving its EMPs, it has today become

well-renowned and respected in the industry

in this regard. Further, third party audits by

ASPASA, SARMA and external consultants

support our environmental conservation and

protection efforts and provide added opportunity

for refi nement of its EMPs.

Environmental progress reports are submitted

annually to the Department of Mineral Resources

in terms of mining rights requirements. In

addition, mine rehabilitation assessments

are conducted by external consultants and

provisions are raised to meet these future

obligations.

Afrimat prioritises health and safety as the key to successful and sustainable operations. Management is primarily responsible for implementing Afrimat’s extensive Health & Safety Policy. The implementation is closely monitored and all incidents are tracked on a monthly basis. This underpins the ongoing process of identifying new risks and developing procedures to mitigate these. Management and the group SHE departments conduct regular inspections to identify areas of further improvement while third party audits are conducted by ASPASA and SARMA. HIRA (Hazard Identifi cation Risk Analysis) are implemented for each work process at all operations.

A dedicated Safety Committee is committed to researching new technological advances in order to enhance and maintain a superior safety standard throughout our operations.

All new employees attend health and safety induction programmes, while existing employees receive ongoing training to ensure awareness and strict adherence to the Health & Safety Policy.

Further, the group’s concern about the HIV/AIDS pandemic threatening South Africa has led to an active HIV/AIDS awareness drive.

Our Environmental Management Programmes

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geeeemememeenttntnt

AddressTyger Valley Offi ce Park No.2, Cnr. Willie van Schoor & Old Oak Rd, Tyger Valley (PO Box 5278, Tyger Valley, 7536)

Telephone+27 21 917 8840

Facsimile+27 21 914 1174

E-Mailinfo@afrimat.co.za

Websitewww.afrimat.co.za