GIJIMA GROUP LIMITED(formerly “Gijima Ast Group Limited”)

Incorporated in the Republic of South Africa(Registration number 1998/021790/06)

Share code: GIJ ISIN: ZAE000147443(“Gijima” or “the Company”)

Circular to Shareholdersrelating to:

• a Rights Offer in respect of 3 000 000 000 Shares made to Shareholders in the ratio of 309.80298 new Rights Offer Shares for every 100 Shares held at the close of trade on Friday, 31 May 2013 at a price of 5 cents per Rights Offer Share

and including:

• Revised Listing Particulars; and

• a Form of Instruction in respect of a Letter of Allocation for use by Certificated Shareholders only.

The Directors of Gijima, appointed as at the Last Practicable Date, whose names appear on page 9 of this Circular, collectively and individually, accept full responsibility for the accuracy of the information given in this Circular and certify that, to the best of their knowledge and belief, there are no facts the omission of which would make any statement in this Circular false or misleading and that they have made all reasonable enquiries to ascertain such facts and that this Circular contains all information required in law and by the Listings Requirements.

This Rights Offer Circular incorporates revised listing particulars and is issued in compliance with the Listings Requirements of the JSE Limited, for the purpose of providing information with regard to the Company.

The definitions and interpretations commencing on page 6 of this Circular apply to this cover page.

This Circular is available in English only. Copies may be obtained from the registered offices of the Company, the Transfer Secretaries and the Merchant Bank and Sponsor at the addresses set out in  the “Corporate information and advisers” section of this Circular from Monday, 3 June 2013 to  Friday, 21 June 2013, both days inclusive. Shareholders will be able to inspect the Circular on the Company’s website, www.gijima.co.za from the date of issue of this Circular until Friday, 21 June 2013, both days inclusive.

The Rights Offer opens at 09:00 on Monday, 3 June 2013 and closes at 12:00 on Friday, 21 June 2013.

Date of issue: Monday, 3 June 2013

Legal Advisors

Merchant Bank and Sponsor

Independent Reporting Accountants and Auditors

CORPORATE INFORMATION

Company Secretary

iThemba Governance and Statutory Solutions (Pty) Ltd(Registration number 2008/008745/07)Block 5, Suite 102Monument Office Park79 Steenbok AvenueMonument Park(PO Box 25160, Monument Park, 0105)

Transfer Secretaries

Link Market Services South Africa (Pty) Ltd(Registration number 2000/007239/07)13th Floor, Rennie House19 Ameshoff Street, BraamfonteinJohannesburg2001(PO Box 4844, Johannesburg, 2000)

Merchant Bank and Sponsor

Rand Merchant Bank (a division of FirstRand Bank Limited)(Registration number 1929/001225/06)1 Merchant PlaceCorner Fredman Drive and Rivonia RoadSandton2146(PO Box 786273, Sandton, 2146)

Date and place of incorporation: 3 November 1998, South Africa

Gijima Registered Office

(Registration number 1998/021790/06)Jupiter Building, Gijima Office Park47 Landmarks AvenueKosmosdalSamrandCenturion0157(PO Box 10629, Centurion, 0046)

Legal Advisors

Webber Wentzel10 Fricker RoadIllovo BoulevardJohannesburg2196(PO Box 61771, Marshalltown, 2107)

Independent Reporting Accountants and Auditors

KPMG Inc(Registration number 1999/021543/21)KPMG Crescent85 Empire RoadParktown2193(Private Bag X9, Parkview, 2122)

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CONTENTS

Page

Corporate information Insidefrontcover

Action required by Shareholders 2

Salient dates and times 5

Definitions and interpretations 6

Section A: Information relating to the Rights Offer 9

1. Introduction 9

2. Useofproceeds 9

3. InformationontheRightsOffer 10

4. Unauditedproformafinancialinformation 16

5. EstimatedexpensesinrelationtotheRightsOffer 17

Section B: Information regarding Gijima 18

6. BackgroundinformationonGijima 18

7. Financialinformation 19

8. InformationontheDirectorsandseniormanagement 22

9. Additionalinformation 27

10. Directors’responsibilitystatement 30

11. Consents 30

12. Workingcapitalstatement 30

13. Documentsavailableforinspection 30

Annexure 1: Tableofentitlement 32

Annexure 2: InformationontheUnderwriters 34

Annexure 3: Unauditedproformastatementoffinancialpositionandstatementofcomprehensiveincome 36

Annexure 4: Independentreportingaccountants’reasonableassurancereportonthecompilationofproformafinancialinformation 39

Annexure 5: TradinghistoryoftheSharesontheJSE 41

Annexure 6: HistoricalfinancialinformationofGijimafortheyearsended30June2010,30June2011and30June2012 42

Annexure 7: InterimfinancialresultsofGijimaforthesixmonthsended31December2011and31December2012 82

Annexure 8: InformationontheDirectorsandseniormanagementofGijimaanditsmajorsubsidiaries 92

Annexure 9: ExtractsfromtheMOI 99

Annexure 10: Investmentsinsubsidiaries 101

Annexure 11: Corporategovernance 103

Form of Instruction Enclosed

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ACTION REQUIRED BY SHAREHOLDERS

The definitions and interpretations commencing on page 6 of this Circular apply to the “Action required by Shareholders” section of the Circular.

If you are in any doubt as to what action you should take, you should consult your CSDP, Broker, banker, legal adviser, accountant or other professional adviser immediately. If you have disposed of all of your Shares, this Circular should be forwarded to the purchaser to whom, or the CSDP, Broker, banker or agent through whom, you disposed of such Shares except that this Circular should not be forwarded or transmitted by you to any person in any territory other than South Africa unless the Rights Offer can lawfully be made to such person or in such territory.

The Rights that are represented by Letters of Allocation are valuable and may be traded on the JSE. Letters of Allocation can, however, only be traded in Dematerialised form and accordingly, all Letters of Allocation have been issued in Dematerialised form.

The electronic record for holders of Certificated Shares is being maintained by the Transfer Secretaries and this has made it possible for holders of Certificated Shares to enjoy similar rights and opportunities as holders of Dematerialised Shares in respect of trades on the JSE of the Letters of Allocation, to the extent possible. Instructions on how to sell the Rights represented by the Letters of Allocation are set out in paragraph 3.10of this Circular.

Action required by holders of Certificated Shares

AFormofInstructionforcompletionbyQualifyingShareholderswhoholdCertificatedSharesisenclosedwiththisCircularandtherelevantprocedureforparticipationintheRightsOfferissetoutbelow:

• ALetterofAllocationwill be created inelectronic formwith theTransferSecretaries toaffordholdersofCertificatedSharesthesamerightsandopportunitiesasthosewhohavealreadyDematerialisedtheirShares.

• IfyoudonotwishtosubscribeforalloftheRightsallocatedtoyouasreflectedintheFormofInstruction,youmayeitherdisposeoforrenounceallorpartofyourentitlementasfollows:

– ifyouwishtosellallorpartofyourentitlement,youmustcompleteFormAintheenclosedFormofInstructionandreturnittotheTransferSecretariessoastobereceivedbynolaterthan12:00onThursday,13June2013.TheTransferSecretarieswillendeavourtoprocurethesaleofRightsontheJSEonyourbehalfandtoremitthenetproceedsthereofinaccordancewithyourinstructions.Inthisregard,neithertheTransferSecretariesnorGijimawillhaveanyobligationorberesponsibleforanylossordamagewhatsoeverinrelationtoorarisingfromthetimingofsuchsales,thepriceobtained,orthefailuretodisposeofsuchentitlements.PleasenotethatthelastdaytotradeanyLetterofAllocationis Thursday,13June2013;and

– ifyouwishtorenounceyourentitlementinfavourofanynamedrenouncee,youmustcompleteFormB in the enclosed Form of Instruction, and the renouncee must complete Form C in the enclosedFormofInstructionandreturnittotheTransferSecretaries,tobereceivedbynolaterthan12:00onFriday, 21 June2013,togetherwithabank-guaranteedchequeorbankdraftfortheappropriateamount.

IfyouareaQualifyingShareholderholdingCertificatedSharesandwishtosubscribeforallorpartofyourentitlementintermsoftheenclosedFormofInstruction,youmustcompletetheenclosedFormofInstructioninaccordancewiththeinstructionscontainedthereinandlodgeit,togetherwiththeamountdueinRands,withtheTransferSecretariesasfollows:

Hand deliveries to: Postal deliveries to:

Gijima Group Limited – Rights Offer Gijima Group Limited – Rights Offer

C/oLinkMarketServicesSouthAfrica(Pty)Ltd C/oLinkMarketServicesSouthAfrica(Pty)Ltd13thFloor,RennieHouse POBox484419AmeshoffStreet,Braamfontein Johannesburg,2000Johannesburg,2001

soastobereceivedbytheTransferSecretariesbynolaterthan12:00onFriday,21June2013.

TotheextentthatyousubscribefortheRightsallocatedtoyou,youwillreceivetheRightsOfferSharesinCertificatedform.YouwillonlybeabletosellyourRightsOfferSharesontheJSEthroughtheStratesystemoncetheRightsOfferShareshavebeenDematerialised.

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If the required documentation and payment has not been received in accordance with the instructions contained in the enclosed Form of Instruction (either from the Qualifying Shareholders or from any person in whose favour the Rights have been renounced) by 12:00 on Friday, 21 June 2013, then the Rights to those unsubscribed Shares will be deemed to have been declined and the Rights Offer entitlement will lapse.

InstructionsonhowtoapplyforexcessRightsOfferSharesaresetoutinparagraph3.8ofthisCircular.

Action required by holders of Dematerialised Shares

IfyouareaQualifyingShareholderholdingDematerialisedShares,youwillnotreceiveaprintedFormofInstructionandyoushouldreceivenotificationfromyourCSDPorBrokerregardingtheRightstowhichyouareentitledintermsoftheRightsOffer.

YourCSDPorBrokerwillcredityouraccountwiththenumberofRightstowhichyouareentitledandyouarerequiredtonotifyyourCSDPorBroker:

– whetheryouwishtofollowyourRightsintermsoftheRightsOfferand,ifso,inrespectofhowmanyRightsOfferShares;ifyoudonotfollowalloranyofyourRights;

– whetheryouwishtosellyourRightsand,ifso,howmanyRightsyouwishtosell;or

– whetheryouwishtorenounceyourRightsand,ifso,howmanyRightsandinfavourofwhomyouwishto renouncethoseRights.

IfyouareaQualifyingShareholderholdingDematerialisedSharesandwishtofollowyourRightsinrespectoftheRightsOffer,youarerequiredtonotifyyourdulyappointedCSDPorBrokerofyouracceptanceoftheRightsOfferinthemannerandtimestipulatedinthecustodyagreementgoverningtherelationshipbetweenyourselfandyourCSDPorBroker. Ifyouarenotcontacted,youshouldcontactyourCSDPorBrokerandprovide themwithyour instructions. If yourCSDPorBrokerdoesnot obtain instructions fromyou, theyare obligedtoactintermsofthemandategrantedtothembyyou,orifthemandateissilentinthisregard,nottosubscribeforSharesintermsoftheRightsOffer.

GijimadoesnottakeresponsibilityandwillnotbeheldliableforanyfailureonthepartofanyCSDPorBrokertonotifyyouoftheRightsOfferand/ortoobtaininstructionsfromyoutosubscribefortheRightsOfferSharesand/ortoselltheRightsallocated.

CSDPseffectpaymentinrespectofDematerialisedShareholdersonadeliveryversuspaymentbasis.YoumustensurethatyouhavesufficientfundsinyouraccounttosettletheissuepriceinrespectoftheRightsOfferSharesforwhichyouapply.

InstructionsonhowtoapplyforexcessRightsOfferSharesaresetoutinparagraph3.8ofthisCircular.

Jurisdiction

TheRightsOfferSharesandtheRightsOfferdocumentationwillnotberegisteredwithanyauthorityinanyjurisdictionotherthanSouthAfrica.ThedistributionofthisCircular,theRightsOffer,theFormofInstructionandthetransferoftheRightsOfferSharesand/ortherightstosubscribefortheRightsOfferSharestocertainpersonsinterritoriesotherthanSouthAfricamayberestrictedbylawandfailuretocomplywithanyofthoserestrictionsmayconstituteaviolationofthelawsofanysuchterritory.NeitherthisCircular,noranyFormofInstruction,istoberegardedasanofferorinvitationtoanypersoninanyjurisdictionotherthanSouthAfricatotheextentthatanyapplicablelegalrequirementinsuchjurisdictionhasnotbeencompliedoritisforanyreasonillegalorunlawfultomakesuchanofferorinvitationinsuchjurisdictiontosuchperson.Inthosecircumstances,thisCircularissentforinformationpurposesonly.

TheRights, theRightsOfferSharesandtheLettersofAllocationhavenotbeenandwillnotberegisteredundertheUSSecuritiesActof1933,asamended(the“Securities Act”)orunderanysecuritieslawsofanystate or other jurisdiction of the United States and may not be offered, sold, taken up, exercised, resold,renounced,transferredordelivered,directlyorindirectly,withintheUnitedStatesexceptinaccordancewiththeregistrationrequirementsoftheSecuritiesActoranapplicableexemptiontherefromandincompliancewithanyapplicablesecuritieslawsofanystateorotherjurisdictionoftheUS.Accordingly,subjecttocertainexceptions,GijimaisnotextendingtheRightsOfferintotheUnitedStatesandneitherthisCircularnoranyLetterofAllocationconstitutesorwillconstituteorformspartofanyofferorinvitationtosellorissue,oranysolicitationofanyoffertopurchaseorsubscribefor,anyRights,RightsOfferSharesorLetterofAllocationin theUnitedStates.

ThisCircularandFormofInstructionshouldnotbeforwardedortransmittedbyyoutoanypersoninanyterritory, other than where the Rights Offer made to such person in such territory is compliant with theapplicablelawsofthatterritory.ItistheresponsibilityofanypersonoutsideSouthAfrica(including,withoutlimitation,custodians,nominees,agentsandtrusteesforsuchpersons)receivingthisCircularandwishingtotakeupRightsundertheRightsOffer,tosatisfyitselfastofullobservanceoftheapplicablelawsofanyrelevant territory, including obtaining any requisite governmental or other consents, observing any other

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requisiteformalitiesandpayinganyissue,transferorothertaxesdueinsuchterritories.ShareholdersoutsideofSouthAfricashouldconsulttheirprofessionaladviserstodeterminewhetheranygovernmentalorotherconsents are required or other formalities need to be observed to allow them to takeup theRights Offer,or tradetheirentitlement.

ShareholdersholdingGijimaSharesonbehalfofpersonswhoarenon-QualifyingShareholdersareresponsibleforensuringthattakinguptheRightsOffer,ortradingintheirentitlementsunderthatoffer,donotbreachregulationsintherelevantoverseasjurisdictions,andshouldnotinconnectionwiththeRightsOfferdistributeinorsendtheCircularintoanyjurisdictionortransferRightstoanypersonin,orcitizenorresidentofanysuchjurisdictionwheretodosowouldormightcontravenelocalsecuritieslawsorregulations.AnypersonwhodoesforwardthisCircularoraLetterofAllocationintoanysuchjurisdiction(whetherunderalegalorcontractualobligationorotherwise)shoulddrawtherecipient’sattentiontotheprovisionsofparagraph3.14.AnypersontakinguptheRightsOffer,ortradingintheirentitlementsundertheRightsOffermakestherepresentationsandwarrantiestotheCompanyandtheUnderwritersetoutinparagraph3.15ofthisCircular.

Non-residents

Shareholders who are Non-residents are referred to paragraph 3.13 of the Circular regarding applicableExchangeControlRegulations.

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SALIENT DATES AND TIMES

2013

LastdaytotradeinSharesinordertoparticipateintheRightsOffer(cumentitlement) Friday,24May

Sharescommencetradingex-entitlementat09:00on Monday,27May

ListingofandtradingintheLettersofAllocationontheJSEcommencesat09:00on Monday,27May

RecordDatefortheRightsOfferforpurposesofdeterminingShareholdersentitledtoparticipateintheRightsOfferatthecloseoftradeon Friday,31May

RightsOfferCircularandRevisedListingParticularsaswellasaFormofInstruction,whereapplicable,postedtoShareholders Monday,3June

Rights Offer opens at 09:00 on Monday, 3 June

LettersofAllocationcreditedtoanelectronicaccountheldattheTransferSecretariesinrespectofholdersofCertificatedSharesandCSDPorBrokeraccountscreditedwithentitlementsinrespectofholdersofDematerialisedShares Monday,3June

LastdayfortradingLettersofAllocationontheJSEinordertosettletradesbythecloseoftheRightsOffer Thursday,13June

ListingofRightsOfferSharesandtradingthereinontheJSEcommencesat09:00on Friday,14June

ForCertificatedShareholderswishingtoacceptallorpartoftheirentitlement,paymenttobemadeandFormsofInstructiontobelodgedwiththeTransferSecretariesby12:00on Friday,21June

Rights Offer closes at 12:00 on Friday, 21 June

RecorddatefortheLettersofAllocation Friday,21June

RightsOfferSharesissuedonorabout Monday,24June

CSDPorBrokeraccountsinrespectofholdersofDematerialisedSharesdebitedwiththepaymentdueandupdatedwithRightsOfferSharesandSharecertificatespostedtoCertificatedShareholdersonorabout Monday,24June

ResultsoftheRightsOfferannouncedonSENS Monday,24June

ResultsoftheRightsOfferpublishedinthepress Tuesday,25June

RightsOfferSharesinrespectofsuccessfulexcessapplications(ifapplicable)issuedonorabout Wednesday,26June

Refundpaymentsmadeand/orSharecertificatespostedtoCertificatedShareholdersand/orCSDPaccountscreditedinrespectofexcessapplications(ifapplicable)onorabout Wednesday,26June

Notes:

1. Share certificates in respect of Shares may not be Dematerialised or rematerialised between Monday, 27 May 2013 and Friday,31May2013,bothdaysinclusive.

2. IfyouareaQualifyingDematerialisedShareholderyouarerequiredtonotifyyourdulyappointedCSDPorBrokerofyouracceptanceoftheRightsOfferinthemannerandtimestipulatedintheagreementgoverningtherelationshipbetweenyourselfandyourCSDPor Broker.

3. CSDPseffectpaymentonadeliveryversuspaymentmethodinrespectofQualifyingDematerialisedShareholders.

4. AlltimesareSouthAfricantimes.

5. Share certificates in respect of Rights Offer Shares will be posted at the risk of the Qualifying Certificated Shareholders (or theirrenouncees).

This Circular is only available in English. Additional copies of the Circular will be made available at theregisteredofficesofGijima,theTransferSecretariesandRandMerchantBank,theaddressesofwhichareset outintheCorporateinformationsectionofthisCircular.

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DEFINITIONS AND INTERPRETATION

InthisCircularanditsannexures,unlessotherwisestatedorthecontextotherwiseindicates,thewordsandexpressionsinthefirstcolumnshallhavethemeaningsstatedoppositetheminthesecondcolumnandwordsandexpressionsinthesingularshallincludethepluralandviceversa,wordsimportingnaturalpersonsshallincludecorporationsandassociationsofpersonsandviceversaandanyreferencetoonegendershallincludetheothergenders:

“Act”or“CompaniesAct” theCompaniesAct,No71of2008,asamended;

“AllanGray” Allan Gray (Pty) Ltd, acting for and on behalf of its clients, as dulyauthorisedagentandinvestmentmanager;

“AuthorisedDealer” apersonauthorisedtodealinforeignexchangeascontemplatedintheExchangeControlRegulations;

“Board”or“Directors” the board of directors of Gijima, as at the Last Practicable Date,whose namesaresetoutinpage9ofthisCircular;

“Broker” astockbrokerasdefinedintheSecuritiesServicesAct;

“BusinessDay” any day other than a Saturday, Sunday or official public holidayin South Africa;

“CertificatedShareholders” ShareholderswhoholdCertificatedShares;

“CertificatedShares” Shareswhichare“certificatedsecurities”asdefinedinsection29oftheSecurities Services Act, such Shares being evidenced by a certificateor otherDocumentofTitle;

“Circular” this bound document dated Monday, 3 June 2013 relating to theRightsOffer, incorporating revised listingparticulars and includingthe annexures hereto and the attached Form of Instruction (whereapplicable);

“CommonMonetaryArea” collectively,SouthAfrica,theRepublicofNamibiaandtheKingdomsof LesothoandSwaziland;

“CSDP” a depository institution or central securities depository participantacceptedbyStrateasaparticipantintermsoftheSecuritiesServicesAct;

“Dematerialisation” the process by which certificated securities are converted to or heldinelectronicformasuncertificatedsecuritiesandrecordedassuchina sub-registerofmembersmaintainedbyaCSDP;

“DematerialisedShareholders” ShareholderswhoholdDematerialisedShares;

“DematerialisedShares” ShareswhichhavebeenthroughtheDematerialisationprocess;

“DocumentofTitle” sharecertificates,certifiedtransferdeeds,balancereceiptsoranyotherdocumentsoftitletoShares;

“EPS” earningspershare;

“ExchangeControlRegulations” theExchangeControlRegulations,1961,asamended,promulgatedintermsofsection9oftheSouthAfricanCurrencyandExchangesAct,No 9of1933,asamended;

“ExcludedForeignShareholders” Shareholderswhichareresidentin,orhaveregisteredaddressesin,theUnitedKingdom,EuropeanEconomicArea,Canada,theUnitedStatesofAmerica,Japan,orAustralia;

“FormofInstruction” a printed, personalised Form of Instruction in respect of Letters ofAllocationreflectingtheRightsofQualifyingCertificatedShareholdersandonwhichCertificatedShareholdersareentitledtoindicatewhethertheywishtotakeuptheirRightsorsellorrenouncealloraportionoftheirLetterofAllocation;

“theFunders” the holders of debentures issued by GijimaAst Finance, as at theLast PracticableDate;

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“Futuregrowth” FuturegrowthAssetManagement (Pty)Ltd,acting forandonbehalfof itsclients,asdulyauthorisedagentandinvestmentmanager;

“Gijima”or“theCompany” GijimaGroupLimited,registrationnumber1998/021790/06,alimitedliability public company duly incorporated in accordance with thecompanylawsofSouthAfrica,theSharesofwhichislistedontheJSE;

“GijimaAstFinance” GijimaAST Finance Proprietary Limited, registration number2006/007198/07,alimitedliabilityprivatecompanydulyincorporatedin accordance with the company laws of South Africa, which is anindependently owned special purpose entity with whom the Groupentered into various agreements including, inter alia, the sale ofexistingandfuturetradereceivables;

“GijimaGroup”orthe“Group” collectively,Gijimaanditssubsidiaries(includingtheirsubsidiaries);

“GumaGroup” collectively, Guma Tech (Pty) Ltd, Guma Support (Pty) Ltd, GumaInvestmentHoldings(Pty)LtdandGumaTechGroup(Pty)Ltd,beinga 6.5%shareholderinGijima;

“HeadsofAgreement” theagreementdated2April2013enteredintobetween,amongstothers,GijimaandtheFunders;

“HEPS” headlineearningspershare;

“IFRS” InternationalFinancialReportingStandardsasissuedbytheBoardoftheInternationalAccountingStandardsCommitteefromtimetotime;

“IncomeTaxAct” theIncomeTaxAct,No58of1962,asamended;

“InvestecAM” InvestecAssetManagement (Pty)Ltd,acting forandonbehalfof itsclients,asdulyauthorisedagentandinvestmentmanager;

“JSE” JSE Limited, registration number 2005/022939/06, a limited liabilitypubliccompanydulyincorporatedinaccordancewiththecompanylawsofSouthAfricaand licensed tooperatean exchange in termsof theSecuritiesServicesAct;

“JSEListingsRequirements” theListingsRequirementsoftheJSE,asamended;

“KingReportIIIReport” KingReportandCodeofGovernancePrinciplesforSouthAfrica2009;

“LastPracticableDate” Friday, 10 May 2013, being the last practicable date prior to thefinalisationofthisCircular;

“LetterofAllocation” a renounceable (nil paid) letter of allocation by the Company toQualifyingShareholders inDematerialisedForm,conferringaRightontheholderthereof;

“LetterofUndertaking” the agreement dated 2 April 2013 entered into between Gijima, thePrincipalShareholdersandtheUnderwriters;

“LinkMarketServices”or“Transfer Secretaries”

Link Market Services South Africa (Pty) Ltd, registration number1929/001225/06,alimitedliabilityprivatecompanydulyincorporatedinaccordancewiththecompanylawsofSouthAfrica;

“ListingsRequirements” theJSELimitedListingsRequirements,asamended;

“MOI” theMemorandumofIncorporationofGijima,adoptedbyshareholdersattheAGMheldon23November2012;

“PrincipalShareholders” GumaGroup,AllanGrayandInvestecAM;

“ProspectiveFinancialInformation” the information and financial projections provided to the SeniorDebentureholdersbytheCompanyonorabout28March2013;

“NAV” netassetvalue;

“Non-resident” apersonwhoisnotconsideredtobeordinarilyresidentinSouthAfricaintermsofExchangeControlRegulations;

“QualifyingCertificatedShareholders”

QualifyingShareholderswhoholdCertificatedShares;

“QualifyingDematerialisedShareholders”

QualifyingShareholderswhoholdDematerialisedShares;

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“QualifyingShareholder” a holder of Shares registered as such in the Register on the RecordDate;

“Rand”or“R”or“cents” South African Rand and cents, being the official currency of SouthAfrica;

“RandMerchantBank”or“RMB” Rand Merchant Bank, a division of FirstRand Bank Limited,registrationnumber1929/001225/06,alimitedliabilitypubliccompanydulyincorporatedinaccordancewiththecompanylawsofSouthAfrica;

“RecordDate” the lastday forShareholders toberecorded in theRegister inorderto participate in the Rights Offer, being close of business on Friday,31May2013;

“Register” the register of Certificated Shareholders maintained by the TransferSecretaries and the sub-register of Dematerialised ShareholdersmaintainedbytherelevantCSDPsinaccordancewithsection50oftheCompaniesAct;

“ReportingAccountantsandAuditors”

KPMGInc,registeredaccountantsandauditors,registrationnumber1999/01543/21, a company duly registered and incorporated withlimitedliabilityinaccordancewiththelawsofSouthAfrica;

“RevisedListingParticulars” therevisedlistingparticularsofGijimacontainedinthisCircular;

“Right/s” the right/s to subscribe for Rights Offer Shares at the Rights OfferPrice,pursuanttotheRightsOffer;

“RightsOffer” the fully underwritten renounceable rights offer of 3 000 000 000RightsOfferSharesattheRightsOfferPrice,intheratioof309.80298RightsOfferSharesforevery100SharesheldontheRecordDate;

“RightsOfferPrice” thesubscriptionpricepayableperRightsOfferShare,being5cents;

“RightsOfferShares” thenewShareswhicharebeingofferedpursuanttotheRightsOffer,whichamountto3000000000Sharesintotal;

“SecuritiesServicesAct” theSecuritiesServicesAct,No36of2004,asamended;

“Securitisation” the trade receivables securitisation funding programme establishedbyGijimaandpursuanttowhichdebenturesareissuedbyGijimaAstFinancefromtimetotime;

“SeniorDebentures” theunsubordinated seniordebenturesundera consolidatedamendedtrust deed entered into between Gijima Finance and PT&A Trustees(Pty)Limited,datedonorabout2July2012;

“SENS” theStockExchangeNewsServiceoftheJSE;

“Shareholders” holdersofShares;

“Shares”or“GijimaShares” ordinarysharesissuedbyGijima;

“SouthAfrica” theRepublicofSouthAfrica;

“SouthAfricanExchangeControlRegulations”

theExchangeControlRegulationsintermsofsection9oftheCurrencyandExchangesAct,No9of1933,asamended;

“Strate” StrateLimited,registrationnumber1998/022242/06,alimitedliabilitypubliccompanydulyincorporatedinaccordancewiththecompanylawsofSouthAfrica,andwhichisaregisteredcentralsecuritiesdepositoryresponsiblefortheelectroniccustodyandsettlementsystemoftheJSE;

“TangibleNetAssetValuePershare”or“TangibleNAVPerShare”

netassetvaluepershareexcludingintangibleassetsandgoodwill;

“Underwriters” GumaGroupandFuturegrowth;

“VAT” value-addedtax,payableintermsoftheValue-AddedTaxAct,No89of1991,asamended;and

“YeboGuma” YeboGumaInvestments(Pty)Ltd,registrationnumber1997/01132/07,a  limited liability private company duly incorporated in accordancewiththecompanylawsofSouthAfrica.

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GIJIMA GROUP LIMITED(formerly “Gijima Ast Group Limited”)

IncorporatedintheRepublicofSouthAfrica(Registrationnumber1998/021790/06)

Sharecode:GIJ ISIN:ZAE000147443(“Gijima”or“theCompany”)

CIRCULAR TO SHAREHOLDERS

Non-executive Directors

RWGumede(Chairman)AHTrikamjee*JCLvanderWalt*MMacdonald*MHRBussin**Independentnon-executiveDirectors

Executive Directors

EWilton(InterimChiefExecutiveOfficer)CJHFerreira(ChiefFinancialOfficer)

Company Secretary

iThembaGovernanceandStatutorySolutions(Pty)Ltd

SECTION A: INFORMATION RELATING TO THE RIGHTS OFFER

1. INTRODUCTION

ShareholdersarereferredtothecautionaryannouncementpublishedonSENSon28March2013relatingtoaproposedrenounceableRightsOffer.

IntermsoftheSecuritisation,GijimaAstFinancepresentlyhasR255millionsecuredSeniorDebenturesinissue,presentlyheldbytheFunders.

PursuanttotheSecuritisation,GijimaAstFinanceissubjecttoanumberoffinancialcovenants,includingaminimumassetcoverandgearingcovenant.TheCompanyandtheFundershaveenteredintotheHeadsofAgreement, intermsofwhichtheFundershaveconditionallyagreedtoprovidetemporaryleniencyin respect of non-compliance by GijimaAst Finance with such covenants. One of the conditions uponwhichsuchleniencyistobegrantedisthatsufficientequitycapitalmustberaisedbyGijima,andfundsmadeavailablebyGijimatoGijimaAstFinance,toensurethatGijimaAstFinancewillmeettherequiredminimumassetcoverratioandhavesufficientfundingreservestocaterforunforeseenrisks.

ItwasproposedthatR150millionofnewequitywouldberaisedbyGijimabywayoftheRightsOffer.

2. USE OF PROCEEDS

Theproceeds from theRightsOfferwill beused, inter alia, to recapitalise theCompany, toprovide afunding injection to GijimaAst Finance in order to ensure compliance by GijimaAst Finance with itsSecuritisationfundingcovenants,tofundtheworkingcapitalrequirementsoftheCompanygoingforwardandtoredeemaportionoftheSeniorDebentures.

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3. INFORMATION ON THE RIGHTS OFFER

3.1 Terms of the Rights Offer

IntermsoftheRightsOfferGijimawilloffer3000 000000RightsOfferSharesatasubscriptionpriceof5 centsperRightsOfferShare, in the ratioof309.80298RightsOfferShares for every100 SharesheldbyShareholdersatthecloseofbusinessontheRecordDatefortheRightsOffer.

TheRightsOfferShareswill,uponallotmentand issue,rankparipassuwithallotherexistingShares inall respects, including in termsofbothvotingrightsanddividends.TheRightsOfferSharesdonothaveanyconvertibilityorredemptionprovisions.

TheRightsOfferShares,onceissued,willbefullypaidupandfreelytransferable.

TheRightsOfferissupportedbyShareholders,collectivelyholdingormanaging70.0%ofSharesas detailedinparagraph3.5ofthisCircular.

3.2 Entitlement

ThenumberofRightsOfferSharestowhichQualifyingShareholderswillbeentitledbyreferencetothenumberofSharesheldontheRecordDate,issetoutintheTableofEntitlementinAnnexure 1tothisCircular.

TheentitlementofeachQualifyingCertificatedShareholderisreflectedintheappropriateblockintheFormofInstruction,whichisenclosedwiththisCircular.QualifyingCertificatedShareholderswillhavetheirentitlementscreditedtoanaccountwiththeTransferSecretaries.

If you are a Qualifying Dematerialised Shareholder, you will not receive a Form of Instruction.Instead,youshouldreceivenotificationfromyourCSDPorBrokerregardingtheRightstowhichyouareentitledintermsoftheRightsOffer.QualifyingDematerialisedShareholderswillhavetheirCSDPorBrokeraccountsautomaticallycredited.

3.3 Fractional entitlements

RightsOfferSharesrepresentingfractionalentitlementswillnotbeissuedtoQualifyingShareholders.Wherenecessary,entitlementstoRightsOfferSharesof0.5orgreaterwillberoundeduptothenearestwholenumberandentitlementstoRightsOfferSharesoflessthan0.5willberoundeddowntothenearestwholenumber.

3.4 Holdings of odd lots in multiples other than 100 Shares

Qualifying Shareholders holding less than 100 Shares, or not holding a whole multiple of100  Shares,  will be entitled, in respect of such holdings, to participate in the Rights Offer inaccordancewiththeTableofEntitlementinAnnexure1tothisCircular.

3.5 Shareholder commitments

IntermsoftheLetterofUndertaking,thePrincipalShareholdershaveundertakentosubscribefor,or(asregardsAllanGrayandInvestecAMandfurthersubjecttocertainexceptions)torecommendtotheirclientsthattheysubscribefor,alloftheRightsOfferSharesofferedtothempursuanttotheRightsOffer,onthefollowingbasis:

ShareholderNumber of Rights Offer

Shares (million)Percentage of

Rights Offer SharesValue of Rights Offer

Shares (R million)

GumaGroup 1094 36.5 54.7AllanGray 706 23.5 35.3InvestecAM 300 10.0 15.0

Total 2 099 70.0 105.0

TheundertakingsbythePrincipalShareholdersareprovidedontheconditionthattheCompanyisnotplacedundersupervisionforbusinessrescueinaccordancewiththeCompaniesActorintoprovisionalorfinalliquidationpriortothecloseoftheRightsOffer.

IntermsoftheLetterofUndertaking,theCompanyhasagreedtopayacommitmentfeeof4.33%,3.33%and3.33%ofthevalueoftheRightsOfferSharestoGumaGroup,AllanGrayandInvestecAMrespectively,upontheirsubscriptionforRightsOfferShares.

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3.6 Underwriting

TheUnderwritershavecommittedtounderwritethebalanceoftheRightsOfferSharesnotsubscribedforbythePrincipalShareholdersasdescribedabove,onthefollowingbasis:

ShareholderNumber of Rights Offer

Shares (million)Percentage of

Rights Offer SharesValue of Rights Offer

Shares (R million)

GumaGroup 406 13.5 20.3Futuregrowth 495 16.5 24.7

Total 901 30.0 45.0

IntermsoftheLetterofUndertaking,anunderwritingfeeequalto10.0%oftheamountunderwrittenbytheUnderwriters,ispayablebytheCompanytotheUnderwriters.TheunderwritingfeeisthebestcommercialfeethattheCompanycouldnegotiateunderthecircumstances.Theunderwritingfee isonlypayableupon theUnderwriters fulfilling theircommitments in termsof theLetterofUndertaking.

The Board has made due and careful enquiry to confirm that the Underwriters can meet theirunderwritingcommitmentsintermsoftheLetterofUndertaking.

Details of the Underwriters, as required in terms of the Listings Requirements, are set out inAnnexure2tothisCircular.

3.7 Minimum subscription

The Rights Offer is partially underwritten and is therefore not conditional upon a minimumsubscription.

3.8 Excess applications

ShareholdersareinvitedtoapplyforadditionalRightsOfferSharesoverandabovetheirentitlement.HoldersofCertificatedShareswishingtoapplyforexcessRightsOfferSharesmustcompletetheattached Form of Instruction in accordance with the instructions contained therein and, oncecompleted,lodgesame,togetherwithpaymentoftheRightsOfferPrice,withtheTransferSecretariesattheaddressessetoutinthe“Corporateinformationandadvisers”sectionofthisCircular,soastobereceivedbytheTransferSecretariesbynolaterthan12:00onFriday,21June2013.

HoldersofDematerialisedShareswishingtoapplyforexcessRightsOfferSharesshouldinstructtheirCSDPorBroker,intermsofthecustodyagreemententeredintobetweenthemselvesandtheirCSDPorBroker,astothenumberofexcessRightsOfferSharesforwhichtheywishtoapply.

ShouldtherebeexcessRightsOfferSharesavailable,thepoolofsuchexcessRightsOfferShareswill be allocated equitably, taking cognisanceof thenumberofRightsOfferSharesheldby theShareholderjustpriortosuchallocation(theRecordDate),includingthosetakenupasaresultoftheRightsOffer,andthenumberofexcessRightsOfferSharesappliedforbysuchShareholder.Non-equitableallocationsofexcessRightsOfferShareswillonlybeallowedininstanceswheretheyareusedtoroundholdingsuptothenearestmultipleof100.

AnannouncementwillbereleasedonSENSonMonday,24June2013andpublishedinthepressonTuesday,25June2013,statingtheresultsoftheRightsOfferandtheallocationofanyadditionalRightsOfferSharesforwhichapplicationwasmade.Therefundpaymentsinrespectofunsuccessfulapplications by Certificated Shareholders for additional Rights Offer Shares will be made to therelevantapplicants,attheirrisk,onoraboutWednesday,26June2013.Nointerestwillbepaidonmoniesreceivedinrespectofunsuccessfulapplications.

3.9 Procedures for acceptance of Rights Offers entitlements

3.9.1 Qualifying Certificated Shareholders and/or their renouncees who wish to exercise allorsomeoftheirRightsassetoutintheFormofInstruction,mustcompletetheFormofInstructioninaccordancewiththeinstructionscontainedthereinand,oncecompleted,lodgesame,togetherwithpaymentoftheaggregateRightsOfferPricepayableinrespectoftheRightsOfferShares forwhich they intend to subscribe,with theTransferSecretaries ateitheroftheaddressessetoutinthe“Corporateinformationandadvisors”sectionofthisCircular,soastobereceivedbytheTransferSecretariesbynolaterthan12:00onFriday,21June2013.OncereceivedbytheTransferSecretaries,theexerciseofRightsisirrevocableandmaynotbewithdrawn.

If payment is not received on or before 12:00 on Friday, 21 June 2013, the QualifyingCertificatedShareholderorrenounceeconcernedwillbedeemedtohavedeclineditsRightsandtherelevantnumberofRightsOfferSharesandtheirentitlementswilllapse.

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Qualifying Certificated Shareholders are advised to take into consideration postal delivery times when posting their Forms of Instruction, as no late postal deliveries will be accepted. Qualifying Certificated Shareholders are advised to deliver their completed Forms of Instruction together with payment to the Transfer Secretaries by hand or by courier, where possible.

3.9.2 QualifyingDematerialisedShareholderswillnotreceiveaFormofInstruction.Instead,theyshouldreceivenotificationfromtheirCSDPorBrokerregardingtheRightstowhichtheyareentitledintermsoftheRightsOffer.

QualifyingDematerialisedShareholdersand/ortheirrenounceeswhowishtoexerciseallorsomeoftheirRightsarerequiredtonotifytheirdulyappointedCSDPorBrokeroftheiracceptanceoftheRightsOfferinthemannerandtimestipulatedintheagreementgoverningtherelationshipbetweenthemselvesandtheirCSDPorBroker.

Gijima does not take responsibility and will not be held liable for any failure on the part of any CSDP or Broker to notify Qualifying Dematerialised Shareholders of the Rights Offer and/or to obtain instructions from Qualifying Dematerialised Shareholders to subscribe for the Rights Offer Shares and/or to sell and/or renounce Letters of Allocation.

3.10 Procedures for sale or renunciation of Letters of Allocation

3.10.1 QualifyingCertificatedShareholderswhodonotwishtoexerciseallorsomeoftheRightsallocatedtothemasreflectedintheirFormofInstruction,mayeitherdisposeoforrenounceallorsomeoftheirLettersofAllocationasfollows:

• Qualifying Certificated Shareholders who wish to sell all or some of their Letters ofAllocation, must complete Form A in their Form of Instruction and return it to theTransferSecretariessoastobereceivedbynolaterthan12:00onThursday,13June2013.TheTransferSecretarieswillendeavourtoprocurethesaleofLettersofAllocationon theJSEonbehalf of suchQualifyingCertificatedShareholdersandwill remit thenet proceeds of the sale in accordance with the instructions set out in the Forms ofInstruction,providedthatnetproceedsamountingtolessthanR131.10willaccrueforthebenefitoftheCompany.Inthisregard,neithertheTransferSecretaries,northeBrokerappointedbythemtoeffectthesalenorGijimawillhaveanyobligationorberesponsibleforanylossordamagewhatsoeverinrelationtoorarisingfromthetimingofsuchsales,thepriceobtained,orthefailuretodisposeofsuchLettersofAllocation.

• QualifyingCertificatedShareholderswhowishtorenounceallorsomeoftheirLettersofAllocationinfavourofanynamedrenouncee,mustcompleteFormBintheirFormofInstruction,andtherenounceemustcompleteFormCintheirFormofInstructionandreturnittotheTransferSecretaries,soastobereceivedbynolaterthan12:00onFriday,21 June 2013, together with payment of the aggregate Rights Offer Price payable inrespectoftheRightsOfferSharestobesubscribedfor.

3.10.2 QualifyingDematerialisedShareholderswhowishtosellorrenounceallorsomeoftheirLettersofAllocationshouldmakethenecessaryarrangementswiththeirCSDPorBrokerin themanner and time stipulated in the agreementgoverning the relationshipbetweenthemselvesandtheirCSDPorBroker.

QualifyingShareholderswishingtosellorrenounceallorsomeoftheirLettersofAllocationwillbeliabletopaybrokeragechargesandassociatedexpenses.

3.10.3 AnymemberofGumaGroupmayrenouncesomeorallofitsrightstosubscribeforRightsOfferShares infavourofYeboGuma,providedthat insucheventeachmemberofGumaGroupjointlyandseverallyundertakestoprocurethatYeboGumadulysubscribesandpaysforallRightsOfferShares inrelation towhichrightswererenounced in favourofYeboGuma.

3.11 Payment

TheamountdueonacceptanceoftheRightsOfferispayableinRand.

3.11.1 Qualifying Certificated Shareholders (or their renouncees) must make payment of theaggregateRightsOfferPricepayableinrespectoftheRightsOfferSharestobesubscribedfor,bywayof:

(i) acheque(crossed,marked“nottransferable”andwiththewords“orbearer”deleted)orabankers’draft(drawnonabankregisteredinSouthAfrica)madepayableto“GijimaLimited–RightsOffer”andpostedordeliveredtotheTransferSecretariesasfollows:

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Hand deliveries to: Postal deliveries to:LinkMarketServicesSouthAfrica LinkMarketServicesSouthAfrica(Pty)Ltd (Pty)Ltd13thFloor,RennieHouse POBox484419AmeshoffStreet,Braamfontein Johannesburg,2000Johannesburg,2001

or;

(ii) an electronic funds transfer into the designated bank account (details of which areavailablefromtheCorporateActionsdepartmentofLinkMarketServices,contactableduringordinarybusinesshourson+27(0)117130800)andquotingtheaccountnumber(asprintedonpage1oftheFormofInstruction)aspaymentreference,

soastobereceived,togetherwiththeirproperlycompletedFormofInstruction,bynolaterthan12:00onFriday,21June2013.

PaymentwillconstituteanirrevocablesubscriptionbytheQualifyingCertificatedShareholder(orrenouncee)oftheRightsOfferSharesuponthetermssetoutinthisCircularandintheFormofInstruction.

Deliveryofanybankguaranteedchequeorbanker’sdraftwillbeattheriskoftheQualifyingCertificatedShareholder(orrenouncee)concerned.Allbank-guaranteedchequesorbankers’draftsreceivedbytheTransferSecretarieswillbedepositedimmediatelyforpayment.Intheeventthatanychequeorbankers’draftisdishonoured,Gijimamay,initssolediscretion,treattheacceptanceofRightsOfferSharesandthecompletedFormofInstructionasvoidormaytenderdeliveryoftherelevantRightsOfferSharestowhichsuchchequeorbanker’sdraftrelates,againstpayment.

3.11.2 PaymentbyQualifyingDematerialisedShareholders(ortheirrenouncees)willbeeffectedontheirbehalfbytheirCSDPorBroker.TheCSDPorBrokerwillmakepaymentinrespectofQualifyingDematerialisedShareholders(ortheirrenouncees)onadeliveryversuspaymentbasis.QualifyingDematerialisedShareholdersmustensurethattheyplacetheirCSDPorBrokerinsufficientfundssoastoenablethemtosettletheaggregateRightsOfferSharePricepayableinrespectoftheRightsOfferSharesforwhichtheywishtosubscribe.

3.12 Lapsing of Rights

QualifyingShareholdersthatdonottakeuptheirRightswillcontinuetoownthesamenumberofSharesasheldpriortotheRightsOffer,buttheirpercentageholdinginGijimawillbediluted.

Subject to exceptions applicable to Excluded Foreign Shareholders, Rights not exercised will bedeemed to have been declined and will lapse and the relevant Qualifying Shareholder shall notreceiveanyeconomicbenefitinrespectofsuchlapsedRights.

3.13 Exchange control regulations

The following summary is intended only as a guide and is, therefore, not comprehensive.If Shareholdersareinanydoubtastotheappropriatecourseofactiontheyareadvisedtoconsulttheirprofessionaladvisor.

Non-residents

In termsof theExchangeControlRegulations,Non-residentQualifyingShareholders, excludingformerresidents(emigrants),oftheCommonMonetaryAreawillbeallowedto:

• exerciseRightsallocatedtothemintermsoftheRightsOffer;

• purchaseLettersofAllocationontheJSE;and

• subscribefortheRightsOfferSharesarisinginrespectoftheLetterofAllocationpurchasedontheJSEprovidedthatpaymentisreceivedthroughnormalbankingchannelsinforeigncurrencyorRandfromanon-residentaccount.

All applications by Non-residents for the above purposes must be made through an AuthorisedDealer.ElectronicstatementsissuedintermsofStrateandanySharecertificatesissuedpursuantto suchapplicationswillbeendorsed“Non-resident”.

Emigrants

WhereaRightbecomesduetoaformerresident(emigrant)oftheCommonMonetaryArea,whichRightisbasedonSharesblockedintermsoftheExchangeControlRegulations,thenonlyemigrantblockedfundsmaybeusedto:

• takeuptheRightsallocatedtothemintermsoftheRightsOffer;

• purchaseLettersofAllocationontheJSE;and

• subscribefortheRightsOfferSharesarisinginrespectoftheLettersofAllocationpurchasedon theJSE.

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Allapplicationsbyemigrantsusingblockedfundsfortheabovepurposesmustbemadethroughthe AuthorisedDealercontrollingtheirblockedassets.

New share certificates issued to an emigrant will be endorsed “non-resident” and placed underthecontroloftheAuthorisedDealerthroughwhomthepaymentwasmade.TheproceedsduetoemigrantsfromthesaleoftheLettersofAllocation,ifapplicable,willbereturnedtotheAuthorisedDealerforcreditofsuchemigrants’blockedaccounts.

Wheretheemigrant’sSharesareinDematerialisedformwithaCSDP,anySharesissuedpursuantto the use of emigrant blocked funds will be credited to their blocked share accounts at theCSDP controllingtheirblockedportfolios.Theelectronicstatement issuedintermsofStratewillbedispatchedbytheCSDPorBroker to theaddressof theemigrant in therecordsof theCSDPor Broker.

AnyQualifyingShareholderresidentoutsidetheCommonMonetaryAreawhoreceivesthisCircularand/orFormofInstructionshouldobtainadviceastowhetheranygovernmentaland/orotherlegalconsentisrequiredand/oranyotherformalitymustbeobservedtoenableasubscriptiontobemadeintermsofsuchformofinstruction.

3.14 Non-resident Shareholders

The Rights Offer Shares, the Circular and Form of Instruction will not be registered with anyauthorityinanyjurisdictionotherthanSouthAfrica.ThemakingoftheRightsOffer,thedistributionofthisCircularortheFormofInstructionandthetransferofRightsOfferSharesand/orLettersofAllocation to certainpersons in territories other thanSouthAfricamaybe restricted by law,and failure to comply with any of those restrictions may constitute a contravention of the lawsofanysuchterritory.NeitherthisCircular,noranyFormofInstruction,istoberegardedasanofferorinvitationtoanypersoninanyjurisdictionotherthanSouthAfricatotheextentthatanyapplicablelegalrequirementinsuchjurisdictionhasnotbeencompliedwithoritisforanyreasonillegalorunlawfultomakesuchanofferorinvitationinsuchjurisdictiontosuchperson.Inthosecircumstances,thisCircularand/ortheFormofInstructionissentforinformationpurposesonly.

TheRights, theRightsOfferSharesand theLettersofAllocationhavenotbeenandwillnotberegistered under the US Securities Act of 1933, as amended (the “Securities Act”) or under anysecuritieslawsofanystateorotherjurisdictionoftheUnitedStatesandmaynotbeoffered,sold,takenup,exercised,resold,renounced,transferredordelivered,directlyor indirectly,withintheUnitedStatesexceptinaccordancewiththeregistrationrequirementsoftheSecuritiesActoranapplicableexemptiontherefromandincompliancewithanyapplicablesecuritieslawsofanystateorotherjurisdictionoftheUnitedStates.Accordingly,subjecttocertainexceptions,GijimaisnotofferingtheRightsOfferSharesintotheUnitedStatesandneitherthisCircularnoranyLetterofAllocationnortheFormofInstructionconstitutesorwillconstituteorformspartofanyofferorinvitationtosellorissue,oranysolicitationofanyoffertopurchaseorsubscribefor,anyRights,RightsOfferSharesorLettersofAllocationintheUnitedStates.

ThisCircularand/orFormofInstructionshouldnotbeforwardedortransmittedtoanypersoninanyterritory,otherthanwheretheRightsOffermadetosuchpersoninsuchterritoryiscompliantwiththeapplicablelawsofthatterritory.ItistheresponsibilityofanypersonoutsideofSouthAfrica(including,withoutlimitation,custodians,nominees,agentsandtrusteesforsuchpersons)receivingthisCircularand/oraFormofInstructionandwishingtotakeupRightsOfferSharesundertheRightsOffer,tosatisfyitselfastofullobservanceoftheapplicablelawsoftherelevantterritory,includingobtaininganyrequisitegovernmentalorotherconsents,observinganyotherrequisiteformalitiesandpayinganyissue,transferorothertaxesdueinsuchterritories.ShareholdersoutsideSouthAfricashouldconsulttheirprofessionaladvisorstodeterminewhetheranygovernmentalorotherconsentsarerequiredorotherformalitiesneedtobeobservedtoallowthemtotakeupRightsOfferSharesand/ortradetheirentitlements.

QualifyingShareholdersholdingSharesonbehalfofpersonswhoareresidentorhaveregisteredaddressesinjurisdictionsoutsideofSouthAfricaareresponsibleforensuringthattakingupRightsOffer Shares, or selling and/or renouncing Letters of Allocation under the Rights Offer, do notcontraveneregulationsintherelevantforeignjurisdictions,andshouldnot,inconnectionwiththeRightsOffer,distributeinorsendtheCircularand/ortheFormofInstructionintoanyjurisdictionortransferLettersofAllocationtoanypersonin,orcitizenorresidentofanyjurisdictionwheretodosowouldormightcontravenelocalsecuritieslawsorregulations.AnypersonwhodoesforwardthisCircularand/orFormofInstructionortransfersaLetterofAllocationintoanysuchjurisdiction(whetherunderalegalorcontractualobligationorotherwise)shoulddrawtherecipient’sattentiontotheprovisionsofparagraph3.13ofthisCircular.AnypersontakingupRightsOfferShares,orsellingand/orrenouncingtheirentitlementsundertheRightsOffermakestherepresentationsandwarrantiestotheCompanyandtheUnderwriterssetoutinparagraph3.14ofthisCircular.

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NoLettersofAllocationwillbesenttoanyExcludedForeignShareholders.TheLettersofAllocationattributabletoExcludedForeignShareholderswillinsteadbedeliveredtotheTransferSecretarieswhowillactasnomineefortheExcludedForeignShareholders.TheTransferSecretarieswillsellsuchLettersofAllocationontheJSEonabestendeavoursbasisonbehalfandforthebenefitoftheExcludedForeignShareholdersandwillremittheproceedstothesaidShareholderssubjecttode minimisthresholdofR131.10.ExcludedForeignShareholderswillnotbeentitledtoaccepttheRightsOffer.

3.15 Representations and warranties given by Qualifying Shareholders (or their renouncees)

3.15.1 Qualifying Certificated Shareholders

AnypersonexercisingRightsorrequestingregistrationofRightsOfferSharesrepresentsandwarrantstoGijimaandtheUnderwritersthat,exceptwhereproofhasbeenprovidedtoGijima’ssatisfactionthatsuchperson’sexerciseofRightswillnotresultinthecontraventionofanyapplicablelegalorregulatoryrequirementinanyjurisdiction,suchperson:

(a) isnotexercisingRights,orrequestingregistrationoftherelevantRightsOfferShares,from within any jurisdiction in which it is unlawful to make or accept an offer toacquireRightsOfferSharesortousetheFormofInstructioninanymannerinwhichsuchpersonhasusedorwilluseit;

(b) isnotactingonanon-discretionarybasisforapersonlocatedwithinanyjurisdictionreferredtoin(a)aboveatthetimetheinstructiontoacceptwasgiven;and

(c) is not acquiring Rights Offer Shares with a view to the offer, sale, resale, transfer,deliveryordistribution,directlyorindirectly,ofanysuchRightsOfferSharesintoanyjurisdictionreferredtoin(a)above.

GijimamaytreatasinvalidanyexerciseofRightsandtheacceptanceorpurportedacceptanceoftheallotmentofRightsOfferSharesif:

(a) it appears to Gijima or its agent that the Form of Instruction was executed in ordispatched froma jurisdictionoutsideSouthAfricaorotherwise inamannerwhichmayinvolveacontraventionofthelawsofanyjurisdictionorifitbelievesthesamemayviolateanyapplicablelegalorregulatoryrequirement;

(b) anaddressoutsideSouthAfricaisprovidedfordeliveryofsharecertificatesforRightsOfferSharesintowhichitwouldbeunlawfultodeliversuchsharecertificates;or

(c) itpurportstoexcludetherepresentationsandwarrantiesrequiredbythisparagraph.

3.15.2 Qualifying Dematerialised Shareholders (or their renouncees)

ApersonwhomakesavalidacceptanceinaccordancewiththeproceduressetoutinthisCircularrepresentsandwarrantstoGijimaandtheUnderwritersthat,exceptwhereproofhasbeenprovidedtoGijima’ssatisfactionthatsuchperson’sacceptancewillnotresultinthecontraventionofanyapplicablelegalrequirementsinanyjurisdiction,suchperson:

(a) is not within any jurisdiction in which it is unlawful to make or accept an offer toacquireRightsorRightsOfferShares;

(b) isnotacceptingtheRightsOfferonanon-discretionarybasisforapersonlocatedwithinanyjurisdictionreferredtoin(a)aboveatthetimetheinstructiontoacceptwasgiven;and

(c) isnotacquiringRightsorRightsOfferShareswithaviewtotheoffer,sale,transfer,deliveryordistribution,directlyorindirectly,ofanysuchRightsorRightsOfferSharesintoanyjurisdictionreferredtoin(a)above.

GijimareservestherighttorejectanymarketinstructionsentfromoutsideSouthAfricaortocredittheaccountofanypersonwhoisactingonanon-discretionarybasisfortheaccountorbenefitofapersonlocatedoutsideSouthAfricawithRightsOfferShares,ifGijimabelievesthatitwouldresultinaviolationofanyapplicablelegalorregulatoryrequirementsinanyjurisdiction.

Theinformationsetoutinparagraph3.14andthisparagraph3.15isintendedasaguideonlyandpersonsresidentin,orwhoarecitizensof,countriesotherthanSouthAfricashouldconsulttheirprofessionaladvisorsastowhethertheyrequireanygovernmentalorotherconsentsorneedtoobserveanyother formalities toenable themto takeupRightsOfferSharesand/orselland/orrenouncetheirentitlements.

Theprovisionsofparagraph3.14and thisparagraph3.15andofanyother termsof theRightsOfferrelatingtoShareholdersresidentoutsideSouthAfricamaybewaived,variedormodifiedasregardsspecificQualifyingShareholdersoronageneralbasisbyGijimainitsabsolutediscretion.

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3.16 South African law

All transactions arising from the provisions of this Circular and the accompanying Form ofInstructionwillbegovernedby,andbesubjectto,thelawsofSouthAfrica.

3.17 Tax consequences

Qualifying Shareholders are advised to consult their tax and financial advisors regarding anytaxationimplicationspertainingtothemregardingtheacceptanceoftheirRightsintermsoftheRightsOffer.

3.18 Documents of Title

Newshare certificates to be issued toQualifyingCertificatedShareholders (or their renouncees)in respect of those Rights Offer Shares for which they have validly subscribed, will be postedto  Qualifying Certificated Shareholders (or their renouncees), by registered post, at their risk,on or aboutMonday,24June2013.

Qualifying Certificated Shareholders receiving the Rights Offer Shares must note that suchCertificatedSharesmaynotbetradedontheJSEuntiltheyhavebeenDematerialised.

Qualifying Dematerialised Shareholders (or their renouncees) that have validly subscribed forRightsOfferShareswillhavetheiraccountswiththeirCSDPorBrokerupdatedwiththeRightsOfferSharestowhichtheyareentitled,onMonday,24June2013.

3.19 JSE listings

TheIssuerRegulationDivisionoftheJSEhasapprovedthelistingsontheJSEof:

• the Letters of Allocation, JSE code: GIJM and ISIN: ZAE000177440, in respect of all of the3 000 000000RightsOfferShareswitheffect from the commencementof tradeonMonday,27 May 2013tothecloseoftradeonThursday,13June2013,bothdaysinclusive;and

• 3 000 000 000 Rights Offer Shares with effect from the commencement of trade on Friday,14 June2013.

4. UNAUDITED PRO FORMA FINANCIAL INFORMATION

The tablebelowsetsout theunauditedandunreviewedpro formafinancialeffectsof theRightsOfferbasedonthepublishedunauditedinterimresultsforthesixmonthsended31December2012.

The unaudited and unreviewed pro forma financial effects are the responsibility of the Directors andhavebeenpreparedforillustrativepurposesonlytoprovideinformationabouthowtheRightsOffermayhaveaffectedGijima’sstatementofcomprehensiveincomehadtheRightsOfferbeenundertakenatthecommencementofthesixmonthsended31December2012,being1July2012,and,inthecaseofGijima’sstatementoffinancialposition,hadtheRightsOfferbeenundertakenon31December2012.Duetotheirnature,theunauditedproformafinancialeffectsmaynotfairlypresentGijima’sfinancialposition,changesinequity,andresultsofoperationsorcashflowsaftertheimplementationoftheRightsOffer.

The unaudited and unreviewed pro forma financial effects should be read in conjunction with theindependentreportingaccountants’reasonableassurancereport,whichisincludedasAnnexure4tothisCircular.

TheaccountingpoliciesofGijimahavebeenused in thepreparationof theunauditedandunreviewedpro formafinancialeffectsoftheRightsOffer.

TheproformastatementofcomprehensiveincomeandstatementoffinancialpositionofGijimaaresetoutinAnnexure3tothisCircular.

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Theproformafinancialeffectshavebeenpreparedonthefollowingbasis:

Published unaudited

interim for the 6 months ended

31 December 2012

Unaudited pro forma after the

Rights Offer% increase/

(decrease)

BasicEPS(cents) (2.54) (0.66) (74.0)DilutedEPS(cents) (2.54) (0.66) (74.0)BasicHEPSrestatedforRightsOffer(cents) (1.58) (0.66) (58.3)

BasicHEPS(cents) (10.58) (2.61) (75.3)DilutedHEPS(cents) (10.58) (2.61) (75.3)BasicHEPSrestatedforRightsOffer(cents) (6.58) (2.61) (60.3)

NAVpershare(cents) 23.04 9.05 (60.7)TangibleNAVpershare(cents) 0.09 0.06 (38.9)

WeightedaveragenumberofShares(’000) 961 565 3961565 312.0DilutedweightedaveragenumberofShares(’000) 961 565 3961565 312.0

Notes:1. TheunauditedfinancialinformationhasbeenextractedwithoutadjustmentfromthepublishedunauditedinterimresultsofGijima

forthesixmonthsended31December2012.

2. ProformaadjustmentstobasicanddilutedEPSandHEPSarecalculatedontheassumptionthattheRightsOfferproceedswerereceivedon1July2012.

3. ProformaadjustmentstotheNAVandtangibleNAVarecalculatedontheassumptionthattheRightsOfferproceedswerereceivedon31December2012.

4. EstimatedexpensesofR13.07million,relatingtotheRightsOffer,havebeentakenintoaccount indeterminingthefinancialeffects.R12.98millionwasdeductedagainsttheproceedsoftheRightsOfferandthebalancewasexpensed.

5. TheRightsOfferproceeds,netofestimatedexpenses,areassumedtohavebeenusedtorepayaportionoftheSeniorDebenturesinvarioustranches.Theeffectoninterestisasaresultofthespreadchangefrom340and370basispointsto450basispoints,relatingtotheSeniorDebenturesaswellasthepartialrecognitionofthebreakagefeeschargedbytheFunders.

6. Alladjustmentswiththeexceptionoftransactioncostsareexpectedtohaveacontinuingeffect.

7. Astatutorytaxrateof28%hasbeenappliedtotheinterestadjustmenttothestatementofcomprehensiveincome.

8. TheclosingSharepriceasat8April2013wasusedasthe‘marketvalue’indeterminingthefactortobeusedinrestatingthebasicEPSandHEPSfortheRightsOfferintermsofIAS33.

5. ESTIMATED ExPENSES IN RELATION TO THE RIGHTS OFFER

TheestimatedfeesandexpensesthatwillbeincurredbyGijimainrespectoftheRightsOfferaretabledbelow:

Expense Payable to R’000

Underwritingfees Underwriters 4503Commitmentfees PrincipalShareholders 4043Legaladvisorfee WebberWentzelandEdwardNathanSonnenbergs 2260Advisoryandsponsorfee RMB 1500Printing,postagecostsandannouncements

Ince(Pty)Limited 500

Independentreportingaccountants’fee KPMGInc 100JSEdocumentationfees JSE 42JSElistingfees JSE 95TransferSecretaries LinkMarketServices 30

Estimated total excluding VAT 13 073

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SECTION B: INFORMATION REGARDING GIJIMA

6. BACkGROUND INFORMATION ON GIJIMA

6.1 Incorporation and listing

GijimawasincorporatedinSouthAfricaon3November1998.TheCompanyconvertedintoapubliccompanyon2August1999andlistedontheJSEin1999.

6.2 History and nature of the business

GijimaprovidesICTservicesinSouthAfricaandinternationally.Historically,theCompanyoperatedintwosegments:ProfessionalServicesandManagedServices.Inthelast12months,theCompanyunderwentareorganisationoftheoperatingmodel.ThereorganisationoftheCompanyoperatingmodel has resulted in a shift in the primary reporting view from Professional and ManagedServicestothatofSystemsEngineeringandServices.TheSystemsEngineeringdivisionhousesthecompany’svariousprojectenvironments,includingcustomandpackagedsolutions,aswellasinfrastructureprojects.TheServicesdivisionisresponsibleforthevarioussupportenvironments,includingfieldoperations,businessapplications,infrastructuresupportandtheintegratedservicecentre. All other focused businesses are grouped under our Ring-fenced division, including ourtrainingandplacementbusiness,ourvoicebusiness,ourNamibianoperationaswellasMineRPup tothedateofitsdisposal.

TheoriginsofGijima(thenAdvancesSoftwareTechnologies (AST))datebacktothe1980swhenthebusiness,thenprivatelyheld,wasfocusedonthesale,implementationandsupportofsoftwareprojects in the enterprise systems management arena. In 1998, Iscor Limited sold its entireInformationTechnologydivisiontoAST inexchangefor30%ofAST’s issuedsharecapital.ASTthenlistedontheJSE,beingadmittedon9September1998,andbroadeneditsbusinessmodeltoincludeawidespectrumofinformationtechnologyservicesandsolutionsaimedatpositioningitselfasthestrategic informationtechnologypartnerofchoicetoclientswhohave large,complexandoftengeographicallydispersedinformationtechnologyrequirements.

In 1999 AST merged with Abraxas Investment Holdings Limited to become Advances SoftwareTechnologies-AbraxasLimited,withtheenlargedgroup’srelistingbecomingeffectiveon2August1999.TheCompany’snamewaschangedtoASTGroupLimitedon22December2000.

Effective 1 May 2005, AST merged with the information technology businesses of Gijima InfoTechnologies.ThemergerresultedintheformationofGijimaAstGroupLimited,acompanywithexcellentcredentials,alarge,competentandextensivedeliverycapacityandcapabilityengagedbyanextensiveand loyalcustomerbase,anenviableservice trackrecord,a leadingsetof industrysolutions,anunparalleledgeographicalfootprintanda36%directlyownedblackshareholding.

NogovernmentprotectionorinvestorencouragementisapplicabletoGijima.TherearenoroyaltiespayableoritemsofasimilarnatureinrespectofGijimaoranyofitssubsidiaries.

6.3 Gijima Group prospects

Looking forward,GDPgrowth is expected to remain subdued through the endof2013.Weakerdisposableincomegrowthamidsoftemploymentdynamicsandlowerrealwageincreasesshouldkeepconsumerspendingincheck.Furthermore,theweakEUeconomyshouldensureacontinuationoftheconstrainedexportenvironment.Combinedwithglobaluncertainties,domesticconstraintssuggest that the environment is also not conducive to robust growth in private sector fixedinvestment.Asaresult,GDPgrowthisforecasttoremainaroundthe2.5%markin2013(Source:Gartner,IT SpendingForecast,4Q12Update:2013TheYearAhead).

GlobalITspendingisforecasttogrow5.2%in2013,withaslightincreaseinfutureyearsreaching1$ trillion in2016 (Source:Gartner, ITSpendingForecast,4Q12Update:2013TheYearAhead).By 2014,marketconsolidationislikelytodisplaceupto20%ofthetop100ITservicesproviders.

Onthelocalfront,theSouthAfricanITservicesmarketreachedavalueofR39.2billionin2011(Source:BMI-T2012),reflectingayear-on-yeargrowthof14.6%.Themarket isexpectedtogrowat a CAGRof10.5%overthefive-yearforecastperiod,reachingatotalofR64.4billionby2016.

Managedservices,FullOutsourceandtheMaintain,SupportandUpgrademakeupthesubstantialpart of the South African IT services spending. These are traditionally areas where Gijima hasperformedwell.Despitesomechallengesoverthelasttwoyears,Gijimalookstoconsolidateandthenexpanditsshareofthesemarkets,aswellastakingtheleadinachosenfewemergingtechnologies.Theseareinparticularinthemobilityspace.

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Overall theSouthAfricanIT industry isshowingsteadygrowth,andhas tendedtosurpriseontheupside,despite theprevailinggeneraleconomicconditions.Theoutlookfor2013and2014isreasonable,andGijimaislookingtoemergefrom2014havingrecapturedsomelostmarketsharetocompetitors,aswellasbeingestablishedasthemarketleaderinanumberofchosenenvironments,mostnotablymobility,SAPsupportandMicrosoftservices.

Acoupleofcontractlossesnotwithstanding,Gijimahasaloyalcustomerbase,whichisevidencedbysomesignificantmulti-yearrenewalsoverthelastyear,supportingthegenerallyacceptedviewthatGijima’sservicesarehighlyregarded.This,coupledwithahealthypipeline,atmorethantwiceannual revenuecover,provides theorganisationwitha solid foundation fromwhich to establishdominanceintheareasselected.Thecostbaseisbeingadjusted,asamatterofcourse,giventherevenueachievementtodate,andthishelpsprovidetheorganisationwithaleanerdeliveryengine,andlessdragonperformance.

Ourlinesofofferingsarewellpositionedtoachieveourobjectives,particularlyconsideringthatourMicrosoftteamisregardedasoneofthetopteamsinthecountry,andwehaveoneofthelargestSAPsupporthubsonthecontinent.Twoglobaltechnologyresearchcompanieshaverecentlyvettedourmobilityoffering,andsignificantmomentumhasbeenobtainedinthisarea,andGijimaislookingto capitaliseon this.Thiswhite spaceenvironment isahighgrowtharea,and themarginsareextremelygood.ThisdrivewithinthemobilityspacehastheabilitytoreenergisetheInfrastructureandManagedServicesbusiness,aswellaseliminatethecommodityattributesthathavecreatedlowmarginsoverthelastfewyears.

Gijimahas5%ofthesystemsintegrationmarketshareinSouthAfrica,andthisisalsoanareathatGijimaislookingtocapitaliseon,offthebackofsomelargepublicsectorprojects,whichGijimawillbeconcludingoverthenextsixmonths.

Overall,givenwheretheorganisationfindsitselftoday,theoutlookispositive,andtheorganisationispositioningitselfwelltoliveuptothepromise.

6.4 Trading history of Gijima Shares on the JSE

AtablesettingoutthepricehistoryoftheSharesontheJSEhasbeenincludedinAnnexure5totheCircular.

7. FINANCIAL INFORMATION

7.1 Historical financial information

The annual historical financial information of Gijima for the three financial periods ended30 June 2010,30June2011and30June2012isincludedinAnnexure6tothisCircular.

Theinterimfinancialresultsforthesixmonthsended31December2011and31December2012havebeenincludedinAnnexure7tothisCircular.

Theannualhistoricalfinancialinformationispreparedbasedontheoldstructure(i.e.beforethereorganisation of the operating model) and the interim financial results are based on the newstructure.

The Directors are responsible for the accuracy of the relevant information extracted from theinterimandyear-endstatements.

7.2 Material liabilities, commitments and loan receivables

Gijimahadthefollowinglong-terminterest-bearingliabilitiesasat31December2012:

2012R’000

2011R’000

Long-termloans 255 000 150000Totalliability 255 000 150000

Securitisation1 255 000 150000

Liabilitiesundercapitalisedfinanceleaseagreements2 1 501 2291

Totalliability 2 490 3696Less:Currentportionmovedtotradeandotherpayables (989) (1405)

Total 256 501 152291

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Notes:

Trade receivables securitisation

On21June2010GijimaAstFinancefundedthepurchasepriceofthesecuritiseddebtorspaidtoGijimaHoldings(Pty)Ltd(“GijimaHoldings”)byissuing150ofClassA1,60-monthsecurednon-amortising debentures and by issuing 150 of Class A2, 24-month secured non-amortising rateddebenturesofR1millioneachtotheFunders.Thetradereceivableshavebeenpledgedassecurity.

R38 million Class A1 debentures and R7 million Class A1 debentures were redeemed on31 December 2012.

R66millionofClassA1debenturesbear interestatafixedrateof11.199%nominalannualratecompoundedquarterly.InApril2013,thesedebentureswereconvertedtofloatingrateinstruments,withabaserateofthree-monthJIBARplus450basispoints.

TheremainingR39millionofClassA1debenturesandR150millionoftheClassA2debenturesbearinterestatvariablerates.InApril2013,thespreadontheR39millionofClassA1debentureswasincreasedto450basispoints.

TheR150millionClassA2debenturesmaturedon30June2012.Fundingof theA2debentureswasrolledforwardforafurtherfiveyearsmaturingon30June2017.TherolledA2debenturesare60-monthsecurednon-amortisingrateddebenturesofR1 millioneach.

ClassA1andA2debentureshavebeenawardedazaAAcreditratingbyGlobalCreditRating,andhavebeenissuedtoinvestorsinthecapitalmarkets.

Liabilities under capitalised finance lease agreements

OthercapitalisedfinanceleaseliabilitieswhichamounttoR2.4million(2011:R3.7million)havebeenenteredintoandarerepayablemonthly.Theloantermsarefiveyears,withthematuritydatesbeingbetween2015and2017.

Interestonthesefinanceleasesislinkedtotheprimeoverdraftrate,whichat31December2012was8.5%.Theleasesaresecuredbyacessionoftheassetstowhichtheyrelate.

Thepresentvalueofotherfutureminimumleasepaymentsundernon-cancellablefinanceleasesareasfollows:

2012R’000

2011R’000

Lessthan1years 989 1405Between1yearsand5years 1 501 2291Laterthan5years – –

2 490 3696Lesscurrentportion (989) (1405)

Total 1 501 2291

Theloanspayablewithintwelve(12)monthswillbefinancedbyacombinationofinternallygeneratedcashflowsandtheproceedsfromtheRightsOffer.

The fair value of thefinance lease liabilities andother liabilities is approximately equal to theircarryingamounts.

There are no conversion rights attached to these loans. There are no debentures that have beenissuedbywayofconversionorreplacementofdebenturespreviouslyissued.

Bridge loan facility

InApril2013,theCompany,asborrower,concludedabridgeloanfinancingagreementwithYeboGuma,aslender(Lender),pursuanttowhichtheCompanyhasaccesstoabridgeloanfacilityforitsworkingcapitalpurposesandinordertoensurecompliancebyGijimaAstFinancewithcertainofitsSecuritisationfundingcovenantspriortocompletionoftheRightsOfferintheaggregateamountofR50000000(theFacility).Intermsofthebridgeloanagreement,theFacilityisavailablefordrawdownduringtheperiodfrom3 April2013untiltheClosingDateoftheRightsOfferdeterminedinaccordancewith theListingsRequirements,beingthedateuponwhich theShareholderswillberequiredtopaythesubscriptionpriceoftheRightsOfferSharesinrespectofwhichtheyhavefollowedtheirRights(theClosingDate).

Intermsofthebridgeloanfinancingagreement,theFacilityisnotrepayableattheinstanceoftheLender(otherthanpursuanttoaneventofdefault)inwholeorinpartpriortotheClosingDate.EachentityintheGumaGroupwillrenounce,infavouroftheLender(oritsnominee),certainofits

21

rightspursuanttotheRightsOffer,whichnumberofrightswill,inaggregate,beequaltotherightsrequiredtoensurethattheaggregatesubscriptionpriceforsuchRightsOfferSharesisequaltothecapitalamountoutstandingundertheFacility.UpontheClosingDate,theLender(oritsnominee)willexercisetheserightsandwillberequiredtopaytheaggregatesubscriptionpriceinrespectofthoseRightsOfferShares.OntheClosingDate,theCompanywillberequiredtorepaythecapitalamountoutstandingundertheFacilityinfull.OntheClosingDate,theaggregatesubscriptionpriceowedbytheLendertotheCompanywillbeautomaticallyset-offagainsttheamountowedbytheCompanytotheLenderunderthebridgeloanagreement.TheFacilitybearsinterestattheprimelendingrateplusamarginof5%.

TheFacilityisguaranteedbyGijimaHoldings.

SecurityprovidedontheFacilityisintheformof:

• eachof theCompanyandGijimaHoldingsenteringintoasecuritycessionintermsofwhichtheycedeinsecuritytotheLender,alloftheirright,titleandinterestinandtotheirintellectualproperty rights and certainmaterial contacts, and in the case of theCompany, a pledge andcessionofitssharesinGijimaHoldings.Inaddition,GijimaHoldingshassignedatrademarkdeedofsecuritypursuanttowhichitgrantstotheLenderahypothecoverallitstrademarks;and

• GijimaHoldingsregisteringageneralnotarialbondoverallofitsmoveableassetsinfavouroftheLender.

CertainindemnitieshavealsobeenprovidedbyGijimaandGijimaHoldingsinfavouroftheLenderintermsofthebridgeloanagreementasregardscosts,lossesorliabilities(asapplicable)whichtheLendermayincurasaresultof:

• theoccurrenceofanyeventofdefault;

• anybreachoffunding,paymentorrepaymentobligations;

• theinvestigationofanyeventwhichtheLenderreasonablybelievestobeadefault;

• theLenderactingorrelyingonanynotice,requestorinstructionwhichtheLenderreasonablybelievestobegenuine,correctandappropriatelyauthorised;or

• anytaxrelatedliabilitieswhichtheLender(actingreasonably)determineshasbeensufferedinrelationtoapaymentreceivedorreceivable(oranypaymentdeemedtobereceivedorreceivable).

AsattheLastPracticableDate,anamountofR35000000hasbeendrawndown.

Loan receivables

TheCompanydoesnothaveanymaterialloansreceivablemadebyitselforbyanyofitssubsidiaries.

7.3 Dividends and dividend policy

TheBoardhaselectedtosuspendthepaymentofdividendsfor thetimebeing,butwillcontinuetoreviewthefinancialpositionoftheCompanyandiscommittedtothecontinuationofdividendpaymentsassoonasconditionsallow.

Anydividendwhichisunclaimed,mayberetainedbytheCompanyandmaybeinvestedorusedastheDirectorsmaydeemfitforthebenefitoftheCompanyuntilclaimedprovidedthatanymoniesduetotheShareholdersmustbeheldintrustbytheCompanyindefinitely,butsubjecttothelawsofprescription,whichprovideforaperiodof3(three)yearsfromthedateonwhichsuchmoniesbecamedue,furthersubjecttotherelevantprovisionsofthePrescriptionAct,1969andshallnotbearinterestagainsttheCompany.

DespiteGijima’srighttodeclaredividendsasforfeitedafteraperiodofthreeyears,ithasneverdonethisandcurrentlyhasnointentionofdoingsoinfuture.

7.4 Material change

Other than as set out in this Circular, there have been no material changes in the financial ortradingpositionoftheGijimaGroupthathaveoccurredsincetheendofthelastfinancialperiodforwhichthefinancialresultswerepublishedforthesixmonthsended31December2012.

TherehavebeennochangesinthetradingobjectsoftheCompanyanditssubsidiariesduringthepreviousfiveyears.

In2010,theCompanychangeditsnamefromGijimaAstGroupLimitedtoGijimaGroupLimited.There is currentlynocontrollingShareholderof theCompanyand therehasbeennochange incontrollingShareholderinthepastfiveyears.

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8. INFORMATION ON THE DIRECTORS AND SENIOR MANAGEMENT

8.1 Details and experience of Directors and senior management

Thefullnames,positions,datesofappointment,ages,nationalities,businessaddresses,qualifications,experienceandotherdirectorshipsoftheDirectorsandseniormanagementofGijimaanditsmajorsubsidiariesaresetoutinAnnexure8tothisCircular.

8.2 Directors’ and senior managements’ declarations

NoneoftheDirectorsandseniormanagersofGijimahave:

• everbeenconvictedofanoffenceresultingfromdishonesty,fraudorembezzlement;

• everbeendeclaredbankrupt,insolventorsequestratedinanyjurisdiction;

• atanytimebeenapartytoaschemeofarrangementormadeanyotherformofcompromisewiththeircreditors;

• everbeenfoundguiltyindisciplinaryproceedingsbyanemployerorregulatorybody,duetodishonestactivities;

• ever been involved in any receiverships, compulsory liquidations or creditors’ voluntaryliquidations;

• everreceivedpubliccriticismsfromstatutoryorregulatoryauthorities,includingprofessionalbodies,andhaveeverbeendisqualifiedbyacourtfromactingasadirectorofacompanyorfromactinginthemanagementorconductoftheaffairsofanycompany;

• everbeenbarredfromentryintoaprofessionoroccupation;

• everbeenconvictedinanyjurisdictionofanycriminaloffence;

• everbeenremovedfromanofficeoftrust,onthegroundsofmisconductandinvolvinghonesty;

• ever been involved in compulsory liquidations, administrations or partnership voluntaryagreementsofanypartnershipswheretheywerepartnersatthetimeof,orwithinthe12monthspreceding,anysuchevent;

• everreceivedacourtorderdeclaringtheDirectoradelinquentorplacingtheDirectorunderprobationintermsofsection162oftheCompaniesActorprohibitinghimtoactasadirector;or

• everbeeninvolved,asadirectororinanexecutivefunctioninanybusinessrescueplansand/orresolutionproposedbyanyentitytocommencebusinessrescueproceedings,applicationhavingbeenmadeforanyentitytobeginbusinessrescueproceedings,noticeshavingbeendeliveredintermsofsection129(7)oftheCompaniesAct,receiverships,compulsoryliquidations,creditors’voluntaryliquidations,administrations,companyvoluntaryarrangementsoranycompromiseorarrangementwithcreditorsgenerallyoranyclassofcreditorsofanycompanywithinthelast12months.

AlloftheDirectorshavecompleteddirectors’declarationsintermsofSchedule21oftheListingsRequirementsupontheirappointmentandnothing,relativetotheabove,haschangedsincetheirappointment.

8.3 Qualification, remuneration, borrowing powers and appointment of Directors

8.3.1 Extracts from the MOI relating to the Directors

TherelevantprovisionsoftheMOIconcerningthequalification,remuneration,borrowingpowersandappointmentoftheDirectorsaresetoutinAnnexure9tothisCircular.

8.3.2 Borrowing powers

TheMOIdoesnotimposeanylimitationontheborrowingpowersofDirectorsandthereforetherehavebeennocircumstancesinwhichtheborrowingpowershavebeenexceededduringthepreviousthreeyears.

TheMOIdoesnotimposeanylimitationsontheDirectorsinrelationtoexchangecontrol.

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8.3.3 Directors’ emoluments

RemunerationpaidbytheGrouptotheDirectorsforthe12monthsended30June2012wasasfollows:

Directors’ fees

R’000

Basic salaryR’000

IncentivesR’000

Share-based expenses

R’000

Total 2012

R’000

Non-executiveRGumede 1740 – – – 1740AMthembu* 500 – – – 500JMiller** 273 – – – 273VNFakude*** 269 – – – 269MMacdonald 501 – – – 501AHTrikamjee 260 – – – 260DrMHRBussin**** 135 – – – 135JvanderWalt 391 – – – 391

Total 4 069 – – – 4 069

*AMthemburesignedinMay2013

**JMillerresignedinFebruary2013.

***VNFakuderesignedinMarch2013.

****DrMHRBussinwasappointedon2March2012.

Thenon-executiveDirectorshavenotreceivedothermaterialbenefitsincludingcommission,gainsorprofit-sharingbenefits.Therehavebeennocontributionspaidunderanypensionforanyofthenon-executiveDirectors.

Directors’ fees

R’000

Basic salaryR’000

BenefitsR’000

Share-based expenses

R’000

Total 2012

R’000

ExecutiveJBogoshi1 – 3176 111 209 3496CFerreira – 2923 65 155 3143DMZwane-Chikura2 – 2262 68 – 2330

Total – 8 361 244 364 8 969

1JBogoshiresignedinDecember2012.

2DMZwane-Chikuraresignedon2March2012.

AllDirectors’ remunerationwaspaidbysubsidiariesofGijima.Therearenocontractualsecretarial,managementortechnicalfeespayable.

TherehavebeennofeespaidoraccruedaspayabletoathirdpartyinlieuofDirectors’fees.Otherthandisclosedabove,nobonusesandadditionalmaterialbenefitshavebeenreceivedbyDirectorsduringtheyearsended30June2011and30June2012.NocommissionsorgainswerereceivedbyDirectorsandnoprofit-sharingarrangementswereinplacerelatingto Directors for the periods ended 30 June 2011 and 30 June 2012. There have been nocontributionspaidunderanypensionforanyoftheexecutiveDirectors.

TheremunerationreceivablebyanyoftheDirectorswillnotbevariedinconsequenceoftheRightsOfferoranyrelatedtransaction.

8.3.4 Directors’ service contracts

TheappointmentofexecutiveDirectorsisreviewedeverythreeyears.

None of the service contracts of the executive or non-executive Directors contains noticeperiodsinexcessofoneyear,orprovidesforpredeterminedcompensationonterminationexceedingoneyear’ssalaryandbenefitsinkind.

TheAuditCommitteeofGijimaissatisfiedwiththeexpertiseandexperienceoftheChiefFinancialOfficer.

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8.4 Interests of Directors

8.4.1 Directors’ interests in Shares

Before the Rights Offer

Thedirectand indirectbeneficial interests inSharesheldbyall theDirectors (includingDirectorswhohaveresignedinthelast18months)asat30June2012,areshownbelow.There have been no changes in Directors’ interests between 30 June 2012 and the LastPracticableDate:

Direct beneficial

Indirect beneficial Total % held

CJHFerreira 1061802 21 526352 22588154 2.33RWGumede 1800447 332610064 334410511 34.53MMacdonald – 995488 995488 0.10JEMiller 3042122 – 3042122 0.31JCLvanderWalt 72059 1935384 2007443 0.21

Total 5 976 430 357 067 288 363 043 718 37.49

Duringtheyearended30June2012,theinterestofDirectorsremainedunchanged.

After the Rights Offer

For thepurposesof the tablebelow, ithasbeenassumed thatall theDirectorsasat theLastPracticableDatewill followtheirRights in termsof theRightsOffer,and theywillaccordinglyholdthefollowingnumberofSharesaftertheRightsOffer:

Direct beneficial

Indirect beneficial Total % held

CJHFerreira 4351296 88215632 92566928 2.33RWGumede 7378285 1363045948 1370424234 34.53MMacdonald – 4079539 4079539 0.10JEMiller 12466707 – 12466707 0.31JCLvanderWalt 295300 7931261 8226561 0.21

Total 24 491 588 1 463 272 380 1 487 763 969 37.49

8.4.2 Share options held by Directors

Asat31December2012,therewerenoshareoptionsheldbytheexecutiveDirectors.

8.4.3 Director’s interests in transactions

During theyear ended30June2012 the followingcontractswere entered into inwhichDirectorshadaninterestandwhichsignificantlyaffectedthebusinessoftheGroup:

• GijimaHoldingshadcontractedSeekersTravelas its travelagencyas from1August2008.ThecontractwithSeekersTravelwasterminatedduringthe2012financialyear.SeekersTravel isultimately ownedbyTourvestHoldings (Pty)Ltd, a companywhereMessrs RW Gumede,AFBMthembuandCJHFerreiraareminorityshareholdersdirectlyorthroughvariousintermediaryholdingcompaniesandfamilytrusts;

• GijimaHoldingshadcontractedGenTechnologies (Pty)Ltdonaminorportionof theWho-am-I-onlineproject.GenTechnologies(Pty)LtdisasubsidiarycompanyofGumaInvestmentHoldings(Pty)Ltd.MessrsRWGumedeandCJHFerreirahaveaninterestandarealsodirectorsofGumaInvestmentHoldings(Pty)Ltd;and

• GijimaHoldingshadcontracted21stCenturyPaySolutionsGroup(Pty)LtdonaHumanResources related matters. Dr MHR Bussin has an interest and is also a director of21stCenturyPaySolutionsGroup(Pty)Ltd.

InApril2013,theCompany,asborrower,concludedabridgeloanfinancingagreementwithYeboGuma,aslender,pursuanttowhichtheCompanyhasaccesstoabridgeloanfacilityforitsworkingcapitalpurposesandinordertoensurecompliancebyGijimaAstFinancewithcertainofitsSecuritisationfundingcovenantspriortocompletionoftheRightsOfferintheaggregateamountofR50000000.MessrsRWGumedeholds100%ofYeboGumathroughhistrustandisalsoadirectorofYeboGuma.

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Alltransactionswereconcludedonanarm’slengthbasiswiththeapprovaloftheBoardandweretotheadvantageoftheGroup.Otherthanasdisclosedabove,noneoftheDirectorshaveanyinterestinanytransactioneffectedbyGijimaduringthecurrentorimmediatelypreceding financial year or during any earlier financial year and which remain, in anyrespect,outstandingorunperformed.

NothirdpersonorcompanyinwhichaDirectorhadaninterestmanagedanyofthebusinessoftheGijimaGroupduringthereportingperiod.

CertainDirectors(MessrsRWGumedeandCJHFerreira)haveinterestsintheUnderwriters.RefertoAnnexure2forthisdetail.

8.4.4 Directors’ interests in promotion and property of Gijima

NoneoftheDirectorshadanyinterest,directorindirect,inthepromotionofGijimaorinanypropertyacquiredorproposedtobeacquiredoutoftheproceedsoftheRightsOfferduringtheprecedingthreeyearsandnoneoftheDirectorshaveanysuchinterestcurrently.

Nopaymentsweremadeto,orhavebeenagreedtobepaidto,anyDirectororanycompanyinwhichheisbeneficiallyinterested,directlyorindirectly,orofwhichheisadirectorortoanypartnership,syndicateorotherassociation(the“associatecompany”)ofwhichheisamembereithertoinducehimtobecome,ortoqualifyhimasadirectororotherwisefortheservicesrenderedbyhimorbytheassociatecompanyintheconnectionorformationofGijimawithintheprecedingthreeyears.

8.5 Information on the Shares of the Company

8.5.1 Authorised and issued Shares

None of the issued Shares have preferential conversion and/or exchange rights, votingrights,rightstodividends,profitsorcapital.NoissuedShareshavepreferentialrightsonliquidationordistributionofcapitalassets.TheissuedSharesrankparipassuwithrespecttovotingrights,andnoothersecuritiesareissuedbyGijimawhichhavevotingrights.Uponliquidation,theissuedSharesrankparipassuwithrespecttoanyliquidationdividends.Noarrangementisinplaceunderwhichfuturedividendsarewaivedoragreedtobewaived.

TheCompanydoesnothaveanycontractorarrangementorproposedcontractorproposedarrangement,wherebyanyoptionorpreferentialrightofanykindtobegiventoanypersontosubscribeforanysecuritiesoftheCompanyoranysecuritiesofthesubsidiaries.

TheMOI requiresa special resolution tobepassedbyShareholders inorder tovary therightsattachingtoShares.

ThenumberofauthorisedandissuedShares,asattheLastPracticableDateandtheindicativeeffectoftheRightsOffer,aresetoutbelow:

Before the Rights OfferNumberofauthorisedShares5000000000ordinarysharesofnoparvalue1

NumberofissuedShares968357379ordinarysharesofnoparvalue

NumberoftreasuryShares6792070ordinarysharesofnoparvalue

After the Rights Offer2

NumberofauthorisedShares5000000000ordinarysharesofnoparvalue

NumberofissuedShares3968357379ordinarysharesofnoparvalue

NumberoftreasuryShares27834105ordinarysharesofnoparvalue

Notes:

1 Increasedfrom1300000000authorisedSharesasat31December2012asaresultoftheresolutionspassed at a general meeting held on Thursday, 9 May 2013. During that meeting, the ShareholdersapprovedtheresolutiontoconvertitssharecapitalfromShareswithparvaluetoShareswithnoparvalue

2 Sharesof0.5orgreaterwillberoundeduptothenearestwholenumberandSharesoflessthan0.5willberoundeddowntothenearestwholenumber.

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TherearenootherclassesofsecuritieslistedandnosecuritiesoftheCompanyarelistedonanystockexchangesotherthantheJSE.Inexcessof20%ofGijima’sSharesareheldbythepublic.Refertoparagraph8.5.5ofthisCircularfordetailsofmajorbeneficialShareholders.

8.5.2 Alterations to the number of issued Shares

ThechangestoGijima’sissuedShares,netoftreasuryShares,duringthethreefinancialperiodsended30June2010,30June2011and30June2012aresummarisedbelow:

Changes to issued Shares

Number of Shares issued

and allotted

2012IssuedSharesatbeginningofyear 968357379IssuedSharesatendofyear 968357379

2011IssuedSharesatbeginningofyear 981459166Sharesrepurchased (13101787)IssuedSharesatendofyear 968357379

2010IssuedSharesatbeginningofyear 981459166IssuedSharesatendofyear 981459166

In2010,Gijimarepurchased13101787oftheSharesresultinginareductionintheordinarysharecapitalandthesharepremiumofR10.99million.TheShareswererepurchasedatapricenogreaterthan10%abovetheweightedaverageofthemarketvalueofSharesforthefivedaysimmediatelyprecedingthedateofrepurchase.

Otherthantheabove,therehavebeennoSharerepurchases,consolidationsorsubdivisionsby Gijima and its subsidiaries during the preceding three years. There were no sharesallottedandissuedinthecapitalofGijimatoexecutiveDirectorsandmanagementpursuanttothetermsandconditionsoftheshareoptionschemeduringtheyearunderreview.

NoShareshavebeenissuedbyGijimasubsidiariesintheprecedingthreeyears.NoShareswereissuedbyGijimaduringtheprecedingthreeyearsasaresultoftheexerciseofoptionsbyGijimaemployees.

Nocommissions,discountsorbrokerageswereincurredinconnectionwiththeissueoftheSharesasaresultoftheexerciseofoptions.

TherehavebeennootheroffersorissuesofanysecuritiesbyGijimaoranyofitssubsidiariesduringtheprecedingthreeyears.

NoissuesofSharesaretooccursimultaneouslywiththeRightsOffer.

8.5.3 Commissions

OtherthanthecommitmentfeepayabletothePrincipalShareholdersandtheunderwritingfee payable to the Underwriters, as disclosed in paragraphs 3.5 and 3.6 of this Circularrespectively,nocommissionswerepaidtoanypersonswithintheprecedingthreeyearsinrelationtotheRightsOfferorinrelationtotheissueofanyGijimasecurities.

Therehavebeennoother commissionspaidoraccruedaspayable,within theprecedingthreeyears.

8.5.4 Rights attaching to Shares and power to issue Shares

AlltheauthorisedandissuedSharesareofthesameclassandrankparipassuineveryrespect.AnyvariationofrightsattachingtosuchShareswillrequireaspecialresolutionofShareholdersingeneralmeetinginaccordancewiththeMOI.InaccordancewiththeMOI,atanygeneralmeeting,everyShareholderpresentinpersonorbyproxy(orifabodycorporate,dulyrepresentedbyanauthorisedrepresentative)shallhaveonevoteonashowofhandsandonapollshallbeentitledtoexerciseonevoteforeveryShareheld.

AlltheauthorisedbutunissuedSharesareunderthecontroloftheDirectors.

8.5.5 Major Shareholders

InsofarasisknowntotheDirectors,thefollowingShareholders(excludingDirectorsandmanagement)beneficiallyheld,directlyorindirectly,aninterestof5%ormoreoftheissuedSharesofGijimaasattheLastPracticableDate:

27

Name of Shareholder Number held % held

AllanGray(Pty)Ltd 227800911 23.5GumaTech(Pty)Ltd1 169817449 17.5GumaSupport(Pty)Ltd2 123503600 12.8InvestecAssetManagement(Pty)Ltd 96704832 10.0GumaInvestmentHoldings(Pty)Ltd3 44409958 4.6GumaTechGroup(Pty)Ltd4 15437950 1.6

Total 677 674 700 70.0

After the Rights Offer

AssumingthatalltheShareholdersfollowtheirRights,majorbeneficialshareholdingsposttheRightsOfferwillbeasfollows:

Name of Shareholder Number held % held

AllanGray(Pty)Ltd 933534922 23.5GumaTech(Pty)Ltd1 695916964 17.5GumaSupport(Pty)Ltd2 506121431 12.8InvestecAssetManagement(Pty)Ltd 396299282 10.0GumaInvestmentHoldings(Pty)Ltd3 181993331 4.6GumaTechGroup(Pty)Ltd4 63265179 1.6

Total 2 777 131 115 70.0

Notes:

1 MessrsRWGumedeandCJHFerreirahaveaninterestandarealsodirectorsofGumaTech(Pty)Ltd.

2 MessrsRWGumedeandCJHFerreirahaveaninterestandarealsodirectorsofGumaSupport(Pty)Ltd.

3 MessrsRWGumedeandCJHFerreirahaveaninterestandarealsodirectorsofGumaInvestmentHoldings(Pty)Ltd.

4 Messrs RW Gumede and CJH Ferreira have an interest and are also directors of Guma Tech Group(Pty) Ltd.

ThereiscurrentlynocontrollingShareholderoftheCompanyandtherewillbenochangeincontrollingShareholderasaresultoftheRightsOffer.

8.5.6 Advisors’ interests

As at the Last Practicable Date, none of the advisors to the Company had any materialinterestintheissuedShares.

9. ADDITIONAL INFORMATION

9.1 Subsidiary companies

DetailsofGijima’sprincipalsubsidiarycompaniesaresetoutinAnnexure10tothisCircular.

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9.2 Principal immovable property

DetailsoftheprincipalimmovablepropertiesleasedbyGijimaanditssubsidiariesaresetoutbelow:

Address of premises Area (m2)Commencementof lease

Termination of lease

Monthly rental (R)

Escalation (%)

Gijima Office Park47LandmarksAvenue,KosmosdalSamrand 12064 01/04/2011 31/03/2018 1193 940.00 10

AST TerracesGolfPark,RapenbergRoadMombaryCapeTown 2494.16 01/07/2008 30/06/2013 220270.00 9

Rust Building1FrikkieMeyerStreet,PretoriaWest 5169.96 01/09/2007 Monthly 204689.00 CPIX

Crown MinesErf173,CnrDoradoandStellarAvenueCrownext4(warehouse)Martindale 2076.32 01/10/2010 30/09/2013 65000.00 8

Gijima Office Park47LandmarksAvenue,KosmosdalSamrand 9562 01/11/2008 30/11/2018 1626 376.00 8

Nothlands Business ParkHooglandExt47,NorthRidingRandburgStand359 710 01/03/2011 28/02/2014 52560.00 9

Glass House office ParkBuildingno3309UmhlangaRocksDriveLaLuciaRidge 2357.1 01/01/2009 31/12/2013 303449.50 9.75

91 Western AvenueVincent,EastLondon–Atros 410 01/08/2011 31/07/2014 61922.65 10

13 Tswelopele (kilo) Street,UnitA6;MiddelburgIndustrialMiddelburg,1050 417 01/12/2009 30/11/2014 33400.00 10

Campsdrift Park3BarnsleyRoadPietermaritzburgUnit14 2400 01/03/2011 28/02/2014 52560.00 9

Ex Oakley Building,HumerailBusinessPark,HumerailRoad/OakworthDrive,HumewayPortElizabeth 1322 01/12/2010 31/01/2016 100000.00 8

TheCompanydoesnotownanyimmovableproperties.

29

9.3 Material acquisitions and disposals

9.3.1 Material acquisitions

TherehasbeennomaterialpropertyacquiredduringtheprecedingthreeyearsbyGijimaoranyofitssubsidiaries.

9.3.2 Material disposals

In November 2012, Gijima disposed of, to a consortium led by RMB Corvest (Pty) Ltd, asubsidiaryofRMBPrivateEquity(Pty)Ltd,itsminingtechnologyandconsultingbusinesses(MineRPBusinesses)foratransactionvalueofR175million.

9.4 Promoters

Noamountswerepaid,oraccruedaspayable,withintheprecedingthreeyears,orwereproposedtobepaidtoanypromoter,ortoanypartnership,syndicateorotherassociationofwhichhe/she/itisorwasamember,andtheconsiderationforsuchpayment,andanyotherbenefitgiventosuchpromoter,partnership,syndicateorotherassociationwithinthesaidperiodorproposedtobegiven,andtheconsiderationforthegivingofsuchbenefit.

Nopromoterhadanymaterialbeneficialinterest,directorindirect,inthepromotionofGijimaandinanypropertyacquiredbyGijimaoutoftheproceedsoftheRightsOfferorduringthethreeyearsprecedingthedateofthisCircular.

9.5 Material contracts

InNovember2012,Gijimahasconcludedthetermsofagreementsrelatingtothedisposalof theMineRPBusinessestoaconsortiumledbyRMBCorvest(Pty)Ltd.OtherthanthedisposaloftheMineRPBusinesses,theCompanyhasnotenteredintoatanycontract,otherthanintheordinarycourseofbusiness,inthetwoyearspriortotheLastPracticableDate,oratanytimeandcontaininganobligationorsettlementthatismaterialtotheCompany.

9.6 Corporate governance

The Board accepts full responsibility for corporate governance and is committed to ensuringa high standard of discipline, independence, ethics, responsibility, equity, social responsibility,accountability,cooperationandtransparency.TheBoardbelievesthattheGrouphascompliedinallmaterialrespectswiththeprinciplesoftheKingIIIReportandhasmettheListingsRequirements.

Annexure11tothisCircularcontainsfurtherinformationonGijima’scorporategovernanceanddisclosureofareasofnon-compliance.

9.7 Litigation statement

ThearbitrationproceedingsinitiatedinOctober2012byoneofGijima’ssoftwareprovidersandinrespectofwhichaprovisionwasmadeinthefinancialstatementsofendJune2012continueandarenotexpectedtobefinalisedinthe12monthsfollowingthedateofissueofthisCircular.TheBoard,onadvicefromseniorcounselanditscommercialadvisers,remainsoftheviewthattheclaimisgrossly overstated andbaseduponassumptionswhichare either incorrect or open to seriouschallenge.Gijimahasinstitutedacounterclaimagainstthethirdparty.

9.8 Third party management under contract or arrangement

ThebusinessofGijimaanditssubsidiarieswillnotbemanagedbyathirdpartyunderacontractorarrangement.

9.9 Material inter-company transactions

In the financial period ended 31 December 2012, the Company and its subsidiaries entered intovarioustransactionsrelatingtointer-companyloanswitheachotheranddetailedbelow:

• MineRP Africa (Pty) Ltd settled its loan account with MineRP Canada Limited and MineRPAustralia(Pty)LtdforanamountofR6.5millionandR12.1millionrespectively;

30

• MineRPCanadaLimitedsettleditsloanwithASTInternational(Mauritius),MineRPAfrica(Pty)LtdandMatsemaInternationalBV(Netherlands)foranamountofR1.4million,R0.3millionandR54799respectively;

• AST(WesternAustralia)(Pty)LtdsettleditsloanaccountwithGijimaHoldings(Pty)LtdforanamountofR742531;and

• AST Holdings Australia (Pty) Ltd settled its loan account with Matsema International BV(Netherlands)AUD16.5million.Anadditional loanwascreatedbetweenGijimaHoldings(Pty)LtdandMatsemaInternationalBV(Netherlands)AUD16.5millionasaresultofthecashbeingpaidstraighttoGijimaHoldings(Pty)Ltd.

10. DIRECTORS’ RESPONSIBILITY STATEMENT

TheDirectors,whosenamesaregivenonpage9ofthisCircular,collectivelyandindividually,acceptfullresponsibilityfortheaccuracyoftheinformationinrelationtoGijimagiveninthisCircularandcertifythat,tothebestoftheirknowledgeandbelieftherearenofactsinrelationtoGijimathathavebeenomittedwhichwouldmakeanystatementfalseormisleading,andthatallreasonableenquiriestoascertainsuchfactshavebeenmadeandthatthisCircularcontainsallinformationinrelationtoGijimarequiredbytheJSEListingsRequirements.

11. CONSENTS

RandMerchantBank,WebberWentzel,KPMGInc,andLinkMarketServiceshaveallprovidedtheirwrittenconsentstoactinthecapacitystatedandtotheirnamesbeingusedinthisCircularandhavenotwithdrawntheirconsentspriortothepublicationofthisCircular.TheindependentreportingaccountantshaveconsentedtotheinclusionoftheirreportinthisCircular.

12. WORkING CAPITAL STATEMENT

TheDirectorsareoftheopinionthatpursuanttotheimplementationoftheRightsOffertheworkingcapitalavailabletotheGijimaGroupisadequatetoremainagoingconcernforatleast12monthsfollowingtheLastPracticableDate.

Theworkingcapitalprojectionshavebeenpreparedusingassumptionsofrevenueandoperatingprofitthatwillbegeneratedoverthisperiodwhich,intheopinionoftheDirectors,areachievable.The Directors’ opinion is based on the current economic, financial, market and other conditionsprevailingasatthedateofthisCircular.

13. DOCUMENTS AVAILABLE FOR INSPECTION

CopiesofthefollowingdocumentswillbeavailableforinspectionattheregisteredofficeofGijimaandattheregisteredofficesofRandMerchantBank,whosedetailscanbefoundinthe“Corporateinformation”sectionontheinsidefrontcoverofthisCircular,duringnormalbusinesshoursonaBusinessDayfromthedateofissueofthisCircularuptoandincludingFriday,21June2013:

• theMOIofGijimaanditsmajorsubsidiaries;

• theauditedannualfinancialstatementsofGijimaforthethreefinancialperiodsended30June2010,30June2011and30June2012;

• theunauditedinterimfinancialresultsofGijimaforthesixmonthsended31December2011and31December2012;

• theLetterofUndertaking;

• HeadsofAgreement;

• Bridgeloanfinancingagreement;

• Directors’serviceagreements;

• thesignedindependentreportingaccountants’reportontheproformafinancialinformationofGijima;

• thewrittenconsentsreferredtoinparagraph11above;

31

• a signed copy of the circular, dated 10 October 2012, relating to the disposal of MineRPBusinesses;

• copiesofthematerialcontractsrelatingtothedisposalofMineRPBusinesses;and

• asignedcopyofthisCircular.

ForandonbehalfoftheBoard

Gijima Group Limited

EA WiltonInterimChiefExecutiveOfficer

Samrand

3June2013

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ANNExURE 1

TABLE OF ENTITLEMENT

ThenumberofRightsOfferSharestowhichQualifyingShareholderswillbeentitledissetoutbelow,onthebasisthatQualifyingShareholderswillbeentitledto309.80298RightsOfferSharesforevery100SharesheldontheRecordDate.Shareholders’entitlementswillberoundedupordown,asappropriateinaccordancewiththestandardroundingconventionwithfractionsof0.5andabovebeingroundedupandfractionsoflessthan0.5beingroundeddown,andonlywholenumbersofRightsOfferShareswillbeissued,inaccordancewiththeListingsRequirements.

Shares held Entitlement Shares held Entitlement

1 3 41 1272 6 42 1303 9 43 1334 12 44 1365 15 45 1396 19 46 1437 22 47 1468 25 48 1499 28 49 152

10 31 50 15511 34 51 15812 37 52 16113 40 53 16414 43 54 16715 46 55 17016 50 56 17317 53 57 17718 56 58 18019 59 59 18320 62 60 18621 65 61 18922 68 62 19223 71 63 19524 74 64 19825 77 65 20126 81 66 20427 84 67 20828 87 68 21129 90 69 21430 93 70 21731 96 71 22032 99 72 22333 102 73 22634 105 74 22935 108 75 23236 112 76 23537 115 77 23938 118 78 24239 121 79 24540 124 80 24881 251 2100 650682 254 2200 681683 257 2300 712584 260 2400 743585 263 2500 774586 266 2600 805587 270 2700 8365

33

Shares held Entitlement Shares held Entitlement

88 273 2800 867489 276 2900 898490 279 3000 929491 282 3100 960492 285 3200 991493 288 3300 1022394 291 3400 1053395 294 3500 1084396 297 3600 1115397 301 3700 1146398 304 3800 1177399 307 3900 12082

100 310 4000 12392200 620 4100 12702300 929 4200 13012400 1239 4300 13322500 1549 4400 13631600 1859 4500 13941700 2169 4600 14251800 2478 4700 14561900 2788 4800 14871

1000 3098 4900 151801100 3408 5000 154901200 3718 10000 309801300 4027 100000 3098031400 4337 1000000 30980301500 4647 10000000 30 9802981600 49571700 52671800 55761900 58862000 6196

34

ANNExURE 2

INFORMATION ON THE UNDERWRITERS

Underwriter 1: Guma Group

TheRightsOfferisunderwrittenbytheGumaGroup,throughthevariouscompaniesthathaveaninterestinGijima.DetailspertainingtotheUnderwriterasrequiredbytheListingsRequirementsaresetoutbelow:

Full legal entity name: GUMA INVESTMENT HOLDINGS (PTY) LTDDirectors: RobertWellingtonGumede

CarlosJorgeHenriquesFerreiraCompany secretary: SQNFinancialServices(BradJames)Date and place of incorporation: 13February1996,SouthAfricaRegistration number: 1996/002438/07Registered office: 7GolfStreet,Linksfield,Johannesburg,2192Auditors: HaigRandallCharteredAccountants(SA)Bankers: StandardBankofSAAuthorised share capital: 400 000ordinarysharesIssued share capital: 18 295ordinaryshares

Full legal entity name: GUMA SUPPORT (PTY) LTDDirectors: RobertWellingtonGumede

CarlosJorgeHenriquesFerreiraCompany secretary: SQNFinancialServices(BradJames)Date and place of incorporation: 1February2002,SouthAfricaRegistration number: 2002/002176/07Registered office: 7GolfStreet,Linksfield,Johannesburg,2192Auditors: HaigRandallCharteredAccountants(SA)Bankers: StandardBankofSAAuthorised share capital: 200ordinarysharesIssued share capital: 200ordinaryshares

Full legal entity name: GUMA TECH (PTY) LTDDirectors: RobertWellingtonGumede

CarlosJorgeHenriquesFerreiraCompany secretary: SQNFinancialServices(BradJames)Date and place of incorporation: 8May1961,SouthAfricaRegistration number: 1961/001624/07Registered office: 7GolfStreet,Linksfield,Johannesburg,2192Auditors: HaigRandallCharteredAccountants(SA)Bankers: StandardBankofSAAuthorised share capital: 200ordinarysharesIssued share capital: 200ordinaryshares

Full legal entity name: GUMA TECH GROUP (PTY) LTDDirectors: RobertWellingtonGumede

CarlosJorgeHenriquesFerreiraCompany secretary: SQNFinancialServices(BradJames)Date and place of incorporation: 20November2000,SouthAfricaRegistration number: 2000/029084/07Registered office: 7GolfStreet,Linksfield,Johannesburg,2192Auditors: HaigRandallCharteredAccountants(SA)Bankers: StandardBankofSAAuthorised share capital: 1000ordinarysharesIssued share capital: 120ordinaryshares

35

Gijima Directors’ interests in the Guma Group

ThefollowingDirectorshaveinterestsinGumaGroup:

• CJHFerreirahasanindirectbeneficialinterestinGumaInvestmentHoldings(Pty)Ltdof1065ordinaryshares,being5.8%(rounded)oftheissuedsharecapitalofGumaGumaInvestmentHoldings(Pty)LtdandanindirectbeneficialinterestinGumaSupport(Pty)Ltd,GumaTech(Pty)LtdandGumaTechGroup(Pty)Ltd,whollyownedsubsidiarycompaniesofGumaInvestmentHoldings(Pty)Ltd,being5.8%(rounded)oftheissuedsharecapitalofGumaSupport(Pty)Ltd,GumaTech(Pty)LtdandGumaTechGroup(Pty)Ltd;and

• RWGumedehasanindirectbeneficialinterestinGumaInvestmentHoldings(Pty)Ltdof17 230ordinaryshares,being94.2%(rounded)oftheissuedsharecapitalofGumaGroupandanindirectbeneficialinterestinGumaSupport(Pty)Ltd,GumaTech(Pty)LtdandGumaTechGroup(Pty)Ltd,whollyownedsubsidiarycompaniesofGumaInvestmentHoldings(Pty)Ltd,being94.2%(rounded)oftheissuedsharecapitalofGumaSupport(Pty)Ltd,GumaTech(Pty)LtdandGumaTechGroup(Pty)Ltd.

Underwriter 2: Futuregrowth

TheRightsOfferisunderwrittenbyFuturegrowth.DetailspertainingtotheUnderwriterasrequiredbytheListingsRequirementsaresetoutbelow:

Full legal entity name: FUTUREGROWTH ASSET MANAGEMENT (PTY) LTDDirectors: PaulRackstraw

AndrewCanterDianeRadleyHenkBeetsKerrinLandMabathoSeeisoMobasheetPatel

Company secretary: OldMutualLifeAssuranceCompanySouthAfrica(OMLACSA)Date and place of incorporation: 23December1996,PretoriaRegistration number: 1996/018222/07Registered office: OMLACSA,MutualPark,JanSmutsDrive,Pinelands,CapeTownAuditors: KPMGBankers: NedbankAuthorised share capital: 1millionordinarysharesofR0.001and9millionAclasssharesof

R0.0001Issued share capital: 1875210Aclassordinarysharesand56490ordinaryshares

NoneoftheDirectorshaveaninterestinFuturegrowthoranyofitssubsidiaries.

36

ANNExURE 3

UNAUDITED AND UNREVIEWED PRO FORMA STATEMEMENT OF FINANCIAL POSITION AND STATEMENT OF COMPREHENSIVE INCOME

TheunauditedandunreviewedproformafinancialeffectsaretheresponsibilityoftheDirectorsandhavebeenpreparedforillustrativepurposesonlytoprovideinformationabouthowtheRightsOffermayhaveaffectedGijima’sstatementofcomprehensiveincomehadtheRightsOfferbeenundertakenatthecommencementofthesixmonthsended31December2012,being1July2012,and,inthecaseofGijima’sstatementoffinancialposition,had theRightsOffer beenundertakenon31December2012.Due to theirnature, theunauditedpro formafinancialeffectsmaynotfairlypresentGijima’sfinancialposition,changesinequity,andresultsofoperationsorcashflowsaftertheimplementationoftheRightsOffer.

TheaccountingpoliciesofGijimahavebeenusedinthepreparationoftheunauditedandunreviewedpro formafinancialeffectsoftheRightsOffer.

TheDirectorsareresponsible for thepreparationof theunauditedandunreviewedpro formastatementoffinancialpositionandstatementofcomprehensiveincome.

37

UNADITED PRO FORMA STATEMENT OF COMPREHENSIVE INCOME OF GIJIMA

Unaudited6 months

ended31 Dec 2012

R’000Adjustments

R’000Pro forma

R’000

Continuingoperations –Revenue 911 207 – 911 207Otheroperatingincome 400 – 400

Income 911 607 – 911 607

EBITDA (100 260) (95) (100 355)Depreciationandamortisationcharge (23100) – (23100)

Operating profit/(loss) (123 360) (95) (123 455)Netfinancial(expense)/income (18466) (2265) (20731)

Profit/(Loss) before tax (141826) (2361) (144187)Incometax 35621 661 36282

(Loss)/Earnings for the period from continuing operations (106 205) (1 700) (107 905)

Discontinued operationsProfit from discontinued operation, net of tax 82 471 – 82 471

Netlossbeforereclassificationofcurrencytranslationofnetinvestmentsandprofitondisposalofbusiness (9529) – (9529)Profitondisposalofbusiness 63479 – 63479Reclassificationofcurrencytranslationofnetinvestmentsduetodisposalofbusiness 41332 – 41332Taxeffectonadjustments (12811) – (12811)

(Loss)/Profit for the period (23 734) (1 700) (25 434)

Attributableto:Ownersoftheparent (24411) (1700) (26111)Non-controllinginterest 677 – 677Adjustedfor:Lossattributabletoownersoftheparent (24411) (1700) (26111)Profitondisposalofbusiness (63479) – (63479)Reclassificationofcurrencytranslationonnetinvestments (38836) – (38836)Taxeffectofreclassificationonnetinvestments 24819 – 24819Lossonsaleofproperty,plantandequipment 199 – 199

Taxeffect (56) – (56)

Headline earnings/(loss) (101 764) (1 700) (103 464)

Shares in issue:WeightedaveragenumberofShares(’000) 961565 3000000 3961565DilutedweightedaveragenumberofShares(’000) 961565 3000000 3961565

cents cents centsBasicEPS (2.54) 1.88 (0.66)DilutedEPS (2.54) 1.88 (0.66)BasicEPSrestatedforRightsOffer (1.58) 0.92 (0.66)DilutedEPSrestatedforRightsOffer (1.58) 0.92 (0.66)BasicHEPS (10.58) 7.97 (2.61)DilutedHEPS (10.58) 7.97 (2.61)BasicHEPSrestatedforRightsOffer (6.58) 3.97 (2.61)DilutedHEPSrestatedforRightsOffer (6.58) 3.97 (2.61)

38

UNADITED PRO FORMA STATEMENT OF FINANCIAL POSITION OF GIJIMA

Unaudited 6 months

ended 31 Dec 2012

R’000Adjustments

R’000Pro forma

R’000

ASSETSNon-current assets 401 538 – 401 538

Property,plantandequipment 77013 – 77013Intangibles 131245 – 131245Deferredtaxassets 193280 – 193280

Current assets 550 690 136 953 687 643

Inventories 39195 – 39195Tradeandotherreceivables 421988 – 421988Currenttaxassets 436 – 436Cashandcashequivalents 89071 136953 226024

Total assets 952 228 136 953 1 089 181

EQUITY AND LIABILITIESTotal shareholders’ equity 219 219 136 953 356 172

Equityattributabletoparentshareholders 221552 136953 358505Non-controllinginterest (2333) – (2333)

Non-current liabilities 336 677 – 336 677

Interest-bearingborrowings 256501 – 256501Operatingleaseliability 18697 – 18697Deferredtaxliabilities 61479 – 61479

Current liabilities 396 332 – 396 332

Tradeandotherpayables 365378 – 365378Operatingleaseliability 2066 – 2066Provisions 28888 – 28888

Total equity and liabilities 952 228 136 953 1 089 181

Shares in issueSharesinissueasat31December2012(’000) 961565 3000000 3961565

cents Cents centsNAVpershare(cents) 23.04 (14.0) 9.05TangibleNAVpershare(cents) 0.09 (0.0) 0.06

Notes:

1. The unaudited financial information has been extracted without adjustment from the published unaudited interimresultsofGijimaforthesixmonthsended31December2012.

2. ProformaadjustmentstothestatementofcomprehensiveincomearecalculatedontheassumptionthattheRightsOfferproceedswerereceivedon1July2012.

3. ProformaadjustmentstothestatementoffinancialpositionarecalculatedontheassumptionthattheRightsOfferproceedswerereceivedon31December2012.

4. EstimatedexpensesofR13.07million,relatingtotheRightsOffer,havebeentakenintoaccountindeterminingthefinancialeffects.R12.98millionwasdeductedagainsttheproceedsoftheRightsOfferandthebalancewasexpensed.

5. TheRightsOffersproceeds,netofestimatedexpenses,areassumedtohavebeenusedtorepayaportionoftheSeniorDebenturesinvarioustranches.Theeffectoninterestisasaresultofthespreadchangefrom340and370basispointsto450basispoints,relatingtotheSeniorDebenturesaswellasthepartialrecognitionofthebreakagefeeschargedbytheFunders.

6. Alladjustmentswiththeexceptionoftransactioncostsareexpectedtohaveacontinuingeffect.

7. Astatutorytaxrateof28%hasbeenappliedtotheinterestadjustmenttothestatementofcomprehensiveincome.

8. TheclosingSharepriceasat8April2013wasusedas the “marketvalue” indetermining the factor tobeused inrestatingthebasicEPSandHEPSfortheRightsOfferintermsofIAS33.

39

ANNExURE 4

INDEPENDENT REPORTING ACCOUNTANTS’ REASONABLE ASSURANCE REPORT ON THE COMPILATION OF PRO FORMA

FINANCIAL INFORMATION

TheDirectors

GijimaGroupLimited

JupiterBuilding

GijimaOfficePark

47LandsmarksAvenue

Samrand

Centurion

0157

15May2013

Report on the Compilation of pro forma financial information

Wehavecompletedourassuranceengagementtoreport(“Report”)onthecompilationoftheunauditedandunreviewed pro forma earnings and diluted earnings, headline and diluted headline earnings, net assetvalueandnettangibleassetvaluepershareofGijimaGroupLimited(“Gijima”or“theCompany”),proformastatement of financial position of Gijima, the pro forma statement of comprehensive income of Gijima andtherelatednotes, includingareconciliationshowingallof theproformaadjustmentsto thesharecapital,reservesandotherequityitemsrelatingtoGijima, (collectively,“theproformafinancial information”).Thepro formafinancialinformationissetoutintheSalientFeatures,paragraph4andAppendix3oftheCirculartoshareholderstobeissuedbytheCompanyonorabout3June2013(“Circular”):

TheproformafinancialinformationhasbeencompiledbytheDirectorsofGijimatoillustratetheimpactoftheRightsOffermadetoshareholdersintheratioof309.80298newRightsOfferSharesforevery100sharesheld(“Transaction”)asdetailedintheCircularontheCompany’sfinancialpositionasat31December2012andtheCompany’sfinancialperformancefortheperiodended31December2012.

Aspartofthisprocess, theCompany’searnings,dilutedearnings,headlineearningsanddilutedheadlineearningspershare,statementofcomprehensiveincomeandstatementoffinancialpositionhavebeenextractedbytheDirectorsfromtheCompany’spublishedinterimfinancialstatementsfortheperiodended31December2012 (“Published Financial Information”), on which no review report has been published. In addition, theDirectorshavecalculatedthenetassetvalueandnettangibleassetvaluepershareasat31December2012basedonfinancialinformationextractedfromthePublishedFinancialInformation.

Directors’ responsibility for the pro forma financial information

TheDirectorsofGijimaareresponsibleforcompilingtheproformafinancialinformationonthebasisoftheapplicable criteriaasdetailed inparagraphs8.15 to8.33of theListingsRequirementsof theJSELimitedandtheSAICAGuideonProFormaFinancialInformation,revisedandissuedinSeptember2012(“ApplicableCriteria”).

Reporting Accountants’ responsibility

Ourresponsibilityistoexpressanopinionaboutwhethertheproformafinancialinformationhasbeencompiled,in all material respects, by the Directors on the basis of the Applicable Criteria, based on our proceduresperformed.

WeconductedourengagementinaccordancewithInternationalStandardonAssuranceEngagements(ISAE)3420,AssuranceEngagementstoReportontheCompilationofProFormaFinancialInformationIncludedinaProspectus,issuedbytheInternationalAuditingandAssuranceStandardsBoard.Thisstandardrequiresthatthereportingaccountants’complywithethicalrequirementsandplanandperformprocedurestoobtainreasonable assurance about whether the Directors have compiled, in all material respects, the pro formafinancialinformationonthebasisoftheApplicableCriteria.

40

Forpurposesofthisengagement,wearenotresponsibleforupdatingorreissuinganyreportsoropinionsonanyPublishedFinancialInformationusedincompilingtheproformafinancialinformation,norhavewe,inthecourseofthisengagement,performedanauditorreviewofthePublishedFinancialInformationusedincompilingtheproformafinancialinformation.

ThepurposeofproformafinancialinformationincludedintheCircularissolelytoillustratetheimpactoftheTransactionontheunadjustedPublishedFinancialInformationasiftheTransactionhadbeenundertakenon1July2012forpurposesoftheproformaearnings,dilutedearnings,headlineanddilutedheadlineearningspershareandtheproformastatementofcomprehensiveincome,andon31December2012forpurposesofthenetassetvalueandnettangibleassetvaluepershareandstatementoffinancialposition.Accordingly,wedonotprovideanyassurancethattheactualoutcomeoftheTransaction,subsequenttoitsimplementation,willbeaspresentedintheproformafinancialinformation.

Areasonableassuranceengagementtoreportonwhethertheproformafinancialinformationhasbeenproperlycompiled,inallmaterialrespects,onthebasisoftheApplicableCriteriainvolvesperformingprocedurestoassesswhether theApplicableCriteriausedby theDirectors in the compilationof thepro formafinancialinformation provide a reasonable basis for presenting the significant effects directly attributable to theTransactionandtoobtainsufficientappropriateevidenceaboutwhether:

• therelatedproformaadjustmentsgiveappropriateeffecttotheApplicableCriteria;and

• theproformafinancialinformationreflectstheproperapplicationofthoseproformaadjustmentstotheunadjustedPublishedFinancialInformation.

The procedures selected depend on the reporting accountants’ judgment, having regard to the reportingaccountants’understandingofthenatureoftheCompany,theTransactioninrespectofwhichtheproformafinancialInformationhasbeencompiledandotherrelevantengagementcircumstances.

Theengagementalsoinvolvesevaluatingtheoverallpresentationoftheproformafinancialinformation.

Webelievethattheevidencewehaveobtainedissufficientandappropriatetoprovideabasisforouropinion.

Opinion

Inouropinion,theproformafinancialinformationhasbeencompiled,inallmaterialrespects,onthebasisoftheApplicableCriteria.

Yoursfaithfully

kPMG Inc.

Per Willem PretoriusCharteredAccountants(SA)Director

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ANNExURE 5

TRADING HISTORY OF THE SHARES ON THE JSE

ThetradinghistoryofSharesontheJSE,foreachmonthoverthe12monthspriortotheLastPracticableDate,eachquarteroverthetwoyearspriortosuch12-monthperiodandforeachdayoverthe30daysprecedingtheLastPracticableDate,issetoutbelow:

High (cents)

Low (cents)

Volume traded (Shares)

Value traded(Rand)

Day ended2013/04/10 10 7 2658371 2044032013/04/11 10 8 732447 657102013/04/12 10 10 636554 636552013/04/15 10 9 839972 781242013/04/16 10 9 522854 478402013/04/17 9 8 617041 554432013/04/18 11 8 453996 410322013/04/19 11 9 2869453 2692452013/04/22 10 9 536614 499472013/04/23 10 9 176164 175192013/04/24 10 10 459435 459432013/04/25 10 9 358360 358192013/04/26 10 9 265869 264822013/04/29 10 9 310399 305742013/04/30 10 8 1348387 1260142013/05/02 10 9 657792 597272013/05/03 9 7 4162392 3253502013/05/06 8 7 1255658 941772013/05/07 8 6 969841 696192013/05/08 8 6 1811071 1350552013/05/09 8 7 304487 228002013/05/10 8 7 1434354 103119

Month ended2012/05/31 48 35 8320956 36065552012/06/30 47 35 7850270 31734962012/07/31 48 40 1540797 6429992012/08/31 47 40 13500077 57641622012/09/30 46 40 3592769 15450792012/10/31 45 38 5134953 21139912012/11/30 40 22 11064292 33280102012/12/31 27 22 12330332 30198102013/01/31 36 25 2269030 6745642013/02/28 30 18 5749142 13322792013/03/31 22 15 4518338 8522662013/04/30 14 7 26078578 2524466

Quarter ended2011/09/30 65 47 105700454 183574982011/12/31 73 60 46436310 595900512012/03/31 67 48 59846625 316266432012/06/30 53 35 46243017 362073442012/09/30 48 40 18633643 19673232012/12/31 45 22 28529577 79522402013/03/31 36 15 12536510 84618112013/06/30 14 6 57011502 2859109

Note:TheaboveinformationwassourcedfromI-NetBridge

42

ANNExURE 6

HISTORICAL FINANCIAL INFORMATION OF GIJIMA FOR THE YEARS ENDED 30 JUNE 2010, 30 JUNE 2011 AND 30 JUNE 2012

TheconsolidatedfinancialinformationofGijimaforthethreeperiodsended30June2010,30June2011and30June2012issetoutbelow.TheannualfinancialstatementsofGijimaforthelastthreefinancialperiodshavebeenauditedbyKPMGInc.Anunqualifiedauditopinionwasissuedinallthreeperiods.Theauditedfinancialstatementsforthethreeperiodsended30June2010,30June2011and30June2012willbeavailableforinspectionasdescribedinparagraph13ofthisCircular.

ThisreportonhistoricalfinancialinformationistheresponsibilityoftheDirectorsofGijima.Nomaterialfactorcircumstancehasoccurredbetweenthelatestfinancialyear-endofGijimaandtheLastPracticableDate.

No adjustments concerning the correction of fundamental errors or application of changes in accountingpolicieshavebeenmadeinpreparingthereportofhistoricalfinancialinformation.Non-materialadjustmentshavebeenmadeforcomparativepurposesonly.Therehavebeennosubsidiaries,foreignsubsidiariesincluded,whosefinancialreportswerenotcompletedaccordingtoIFRS.

COMMENTARY ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2012

Highlights

• New business gained kept revenue flat despite certain key contract terminations• Client centric business model established• Internal optimisation programme completed• Debtors securitisation funding programme extended• Non-core business disposed

GijimaisoneofSouthAfrica’sleadingInformation,CommunicationandTechnology(ICT)ServicesgroupsandhasaLevel2AAAempowermentrating.ItoffersendtoendManagedInfrastructureandProfessionalServicesfromits80pointsofpresencewithinSouthernAfricaanditsoperationsinAustralia,Asia,NorthandSouthAmerica.

The Company’s results for the 12 months ended 30 June 2012 were significantly impacted by the cost ofestablishingitsclientcentricbusinessmodel,thelossoftwosignificantcontractsaswellasthecostofaninternaloptimisationprogramme.

TheCompanyhascompletedtheimplementationofitsnewstructureanditsbusinessmodelhasbeenalteredtoreflectanorganisationwhereclientcentricityistheprimaryfocus.Thispositioningwillallowforimprovedindustryandclientunderstandingtobettertranslatesolutionsthatdifferentiateitfromitspeers.Aspartofthereorganisation,Gijimahasappointedseveralsenior leadingITindustryexecutivestodrivethevariousclientcentricinitiatives.ThecostofestablishingtheclientcentricmodelamountedtoR22.3million,ofwhichR5.4 millionrelatedtoretrenchmentcosts.

A significant contract was lost and a material portion of another key contract was insourced during the12 monthsended30June2012,significantlyimpactingontheCompany’srevenueandprofit.

Gijimahadbeenrenderinghardwarebreak-fixservicestotheSouthAfricanPoliceServices(“SAPS”)since2002.Followingtheexpiryofthelatestthree-yeartermoftheSITA433Contractin2009,GijimaandSITAenteredintoseveralshort-termextensionsthereof,culminatinginamonth-to-monthagreementfortheprovisionoftheservicesfromNovember2011.Theseshort-termarrangementswereinplacewhilstSITAconductedthetenderprocessfortheawardofasubsequentthree-yearcontractforthebreak-fixservicestoSAPS.On25January2012,GijimareceivednotificationfromSITAthatanewserviceproviderwouldtakeoverthemonth-to-monthprovisionof services from1February2012.Gijimahas beenworkingwith theSAPS formanyyears andhasdeliveredinaccordancewiththecontractinquestion.AnewtenderforRemoteInfrastructureManagedSupport isexpectedtobe issuedforSAPSinthenearfuturethatwillreplacethecurrentmonth-to-monthagreement.Gijimawillrespondtothistender.

GijimahasrenderedseveraloutsourceservicestoAbsaoverthepast10yearsandhasdeliveredinaccordancewiththesecontracts.AportionofthedesktopservicescontractwithAbsahasbeeninsourcedbacktoAbsafrom1April2012inaccordancewiththeglobalpolicyofitsmajorshareholder.Gijimawillcontinuetodeliverontheremainderofthiscontract.Almost180employees,specificallydedicatedtoworkingontheinsourcedpartofthecontract,havebeentransitionedbacktoAbsaaspermanentemployeesofthebank.GijimacontinuestoworkwithAbsainotherareasandhasalreadybeeninvitedtotenderfornewbusiness.

43

Thecostsofrationalisingthebusinessinlinewiththesecontractterminationswereborneintheyearended30June2012.

GijimalaunchedaninternaloptimisationprogrammeinFebruary2012,aimedatimprovingtheCompany’sefficiencyandreducingitscostbase.Peopleinitiativeswereprioritisedtofirstlyaddressthecontractorbaseof the Company, and subsequently on reducing the number of its permanent employees. The Company’sheadcount,oncetheprogrammehasbeencompleted,isexpectedtoreducebysome700employeesfromthe3902employeesatthestartofthefinancialyear.Ofthisreduction,approximately200employeesreducedwere throughretrenchment,with thebalanceof the reduction coming from theAbsa insource, contractorterminationsandnatural attrition.The cost of thepeople optimisationofR38.3million is reflected in theresultsfortheyearended30June2012.Theoptimisationprogrammealsofocusedonnon-peoplecostsavinginitiatives,addressingexpendituresarounditsinternalInformationManagementandSupplyChaindisciplines,aswellasotheroperatingexpenses.

Despitethesignificantcontractterminationsduringthefinancialyear,theGroup’srevenueendedthe12 monthsto30June2012largelyinlinewiththerevenuereportedinthepreviousfinancialyearended30June2011.Therevenuelosthasbeenmadeupbygainsinotherareas.Earningsbeforeinterest,tax,depreciationandamortisationendedtheyearatalossofR517k.

TheProfessionalServicesDivisionperformedwellandrecordedrevenuegrowthof11.5%onthepreviousyear.AprofitofR25.2millionwasachieved,comparedtolastyear’sreportedlossofR6.9million,apositiveturn-aroundofR32.1million.TheSystemsIntegrationunithasdeliveredamuchimprovedperformancefromlastyearandissuccessfullydeployingsomesubstantialprojects.TheperformanceoftheERPbusinesswasinlinewiththatofthepreviousfinancialyearandthepipelineforthislineofbusinessremainshealthy.Theminingtechnicalsolutionsbusinessproducedverystrongresults,withamarkedimprovementinthetopandbottomline.ItsindustryleadingMineRPsetofproductscontinuestogainglobalmarketshare.Gijima’strainingandplacementbusinessalsoproducedconsiderablerevenueandprofitgrowth.

RevenuefortheManagedServicesDivisionwassignificantlydownfortheperiodwithprofitdown92.6%.Thisdivisionwasthemostsignificantlyimpactedbythetwocontractlosses.TheUnifiedCommunications,DataCentreandSecuritybusinesseshadarelativelymutedperformanceduetolowsalesvolumes.TheinvestmentcostofourexpansionintothedatacentreEnterpriseSystemManagementsoftwaremarketfurtherreducedprofitability for the division. Revenue and profit of the Distributed Computing business were significantlyimpacted by the contracted losses. Gijima continues to expand its mobility offerings and although thecontribution fromthisarea is still smallatpresent,weanticipate that thiswillbeanareaof considerablegrowthgoingforward.

TheGroupincurredanon-cashforeignexchangeratetranslationlossofR11.6millionduringtheperiodwhichispredominantlyduetotheaccountingconsolidationofitsforeignoperations.Depreciationandamortisationwas marginally higher than the prior year as capital expenditure remained largely unchanged. The netfinancialexpenseendedtheperiodat6.5%lessduetolowerborrowingcosts.

Gijima’seffectivetaxrateof29.0%isinlinewiththestatutorynorm.ThedeferredtaxassetofR158.4millionincludesacalculatedtaxlossofR88.3million.

TheGroup’snetcashbalancesincreasedfromthepreviousfinancialyeartoR117.0million.Despitesignificantcostsincurredtoestablishthenewbusinessmodelandtooptimisethebusiness,GijimageneratedR83.9millionincashfromoperationsfortheyear,ofwhichR47.7millionarosefrompositiveworkingcapitalmanagement.TheGrouphasinadditionsecuredtheextensionofitslong-termdebtorssecuritisationfundingprogramme.InvestorsinR150millionClassA2secureddebenturesthatmaturedon30June2012havesubscribedforanewissueofR150millionclassAdebentureswithadurationoffiveyearsandamaturitydateof30June2017.TheR150millionclassA1debentures,whicharescheduledtomatureon31June2015,remaininissueandareunaffectedbytheextensionoftheprogrammeforafurtherfiveyearperiod.

Gijima’sdebttoequityratioendedtheyearat133%.Theratioisexpectedtoimprovetowellbelow100%afterconclusionofthedisposaloftheMineRPbusiness.Thecurrentratiomeasuresat1.4times.

Dividends

Nodividendhasbeendeclaredfortheperiod.TheresumptionofpaymentofdividendswillbereviewedbytheBoardinfuture,basedontheGroup’stradingatthetime.

Disposalofnon-corebusinesspost-balancesheetdate

Gijimahas concluded the termsof agreements relating to thepotentialdisposal of theCompany’sminingtechnologyandconsultingbusinesses(MineRP),toaconsortiumledbyRMBCorvest(Pty)Ltd,asubsidiaryofRMBPrivateEquity(Pty)Ltd.MineRPwouldbehousedinanewlyincorporatedentity,OakleafInvestmentHoldings89(Pty)Ltd.Theagreementswillbesubjecttoconditionsprecedent,includingtheapprovaloftheCompetitionAuthorities.

44

TheBoardhasidentifiedMineRPasnon-coreand,asMineRPrequiresconsiderableinvestmenttomaintainitscompetitiveposition,hasresolvedtodisposethereofinordertopreserveMineRP’svalueandrealisemaximumvalueforGijimashareholders

Prospects

GijimahasinvestedtopositiontheGroupforstability,consolidationandgrowth.Newgenerationservicesintheareasofmobilityandcloudarestartingtobearfruit.Gijima’smobilityframework,whichincludesMobileDeviceManagement,applicationdevelopmentalongwiththeabilitytointegrateintoexistinglegacyplatformsiscomplete,andthemarkethasbeguntoshowgood interest in thesolutions.Gijima’send-to-endsecurityofferingsarebeingpositioned to target thesignificantpain-pointsbeing feltby largeorganisations today,particularlyinthefinancialservicesindustry.Thesenewgenerationserviceswillalsoprovideusefulimpetusto Gijima’s traditional strength in the infrastructure space. Despite the challenges in the 2012 financialyear,managementareconfidentthattheremedialactionstakenhavepositionedtheCompanyforasolidandprofitableperformanceinthe2013financialyear.

GIJIMA GROUP LIMITEDStatement of comprehensive income for the year ended 30 June 2012

Notes2012

R’0002011

R’0002010

R’000

Revenue 2.1 2 530 068 2566582 2943417Otheroperatingincome 9 708 3553 3913

Income 2 539 776 2570135 2947330Employeebenefitsexpense 2.12 (1 469 155) (1401330) (1436864)Operatingcosts (1 037 609) (989795) (1210115)Foreigncurrency(losses)/gains 2.6 (12 230) 3343 (1409)Reversalofimpairment – – –Otherexpenses (21 299) (394160) (13268)

(Loss)/Earnings before interest, tax, depreciation and amortisation charges (EBITDA) (517) (211807) 285674

Normal(loss)/earningsbeforeinterest,tax,depreciationandamortisation(EBITDA) (517) 162140 285674Settlementexpense 2.13 – (373947) –

Depreciationandamortisationcharges (48 576) (46358) (44686)

Operating (loss)/profit before financing costs 2 (49 093) (258165) 240988

Financialincome 3.1 7 233 8363 22609Financialexpenses 3.2 (29 423) (32099) (34375)

Netfinancial(expense)/income 3 (22 190) (23736) (11766)

(Loss)/Profit before tax (71 283) (281901) 229222Incometax 4 20 693 73153 (75059)

(Loss)/Profit for the year (50 590) (208748) 154163

Attributableto:Ownersoftheparent (50 785) (209990) 158610Non-controllinginterest 14 195 1242 (4447)

(50 590) (208748) 154163

Lossperordinaryshare(cents)–Basic 5 (5.28) (21.84) 16.37–Diluted 5 (5.28) (21.76) 16.31

Refertonote5forheadlinelosspershare.

45

GIJIMA GROUP LIMITEDStatement of comprehensive income for the year ended 30 June 2012

Notes2012

R’0002011

R’0002010

R’000

(Loss)/Profit for the year (50 590) (208748) 154163Othercomprehensiveincome/(loss)

Currencytranslationdifferencesforforeignoperations 2.6 2 844 (29194) 9812Currencytranslationonthenetinvestmentsforforeignoperations 2.6 11 496 24638 (11169)Revaluationoflandandbuildings 6 3 839 – –Taxeffectonothercomprehensiveincome/(loss) 4 (34) (41) (55)

Othercomprehensiveincome/(loss)fortheyear,netofincometax 18 145 (4597) (1412)

Total comprehensive (loss)/income for the year (32 445) (213345) 152751

Attributableto:

Ownersoftheparent (32 640) (214587) 157198Non-controllinginterest 195 1242 (4447)

Total comprehensive (loss)/income for the year (32 445) (213345) 152751

46

GIJIMA GROUP LIMITEDStatement of financial position at 30 June 2012

Notes2012

R’0002011

R’0002010

R’000

AssetsNon-current assets 408 276 387227 300776

Property,plantandequipment 6 89 828 81621 91334Investmentinsubsidiaries 7 – – –Intangibles 9 141 799 154163 138285Tradeandotherreceivables 12 18 213 17301 –Deferredtaxassets 10 158 436 134142 71157

Current assets 696 535 825210 1313751

Inventories 11 34 459 26506 42554Tradeandotherreceivables 12 539 887 693666 927944Currenttaxassets 919 16211 184Cashandcashequivalents 13 121 270 88827 343069

Total assets 1 104 811 1212437 1614527

Equity and liabilities

Total shareholders’ equity 229 892 262337 497173

Equityattributabletoparentshareholders 232 902 265542 501620Non-controllinginterest 14 (3 010) (3205) (4447)

Non-current liabilities 371 887 237403 416222

Interest-bearingborrowings 15 301 980 152729 300706Operatingleaseliability 19 336 23778 27821Amountsduetovendors 16 – 2463 6065Deferredtaxliabilities 10 50 571 58433 81630

Current liabilities 503 032 712697 701132

Tradeandotherpayables 17 464 359 552194 687095Short-termborrowings 18 – 150000 –Operatingleaseliability 4 451 3607 –Provisions 19 28 020 2931 6119Bankoverdrafts 13 4 235 2352 3152Amountsduetovendors 16 1 967 1613 2039Currenttaxliabilities – – 2727

Total equity and liabilities 1 104 811 1212437 1614527

cents cents cents

NAVpershare(cents) 24.22 27.62 52.17TangibleNAVpershare(cents) 9.47 11.58 37.79

47

GIJIMA GROUP LIMITEDStatement of cash flows for the year ended 30 June 2012

Notes2012

R’0002011

R’0002010

R’000

Cash flows from operating activitiesCashgeneratedfrom/(usedin)operations 26.1 83 605 (121268) 84224Interestreceived 26.2 7 214 9316 22161Interestpaid 26.3 (20 904) (34943) (37746)Dividendpaid – (24039) (73105)Dividendreceived – – –Taxrefund/(paid) 26.4 3 829 (35400) (28697)

Netcashgeneratedfrom/(usedin)operatingactivities 73 744 (206334) (33163)

Cash flows from investing activities

Purchaseofintangibleassets (7 577) (15242) (7114)Purchaseofproperty,plantandequipment (33 514) (21853) (29436)Repurchaseofshares 7 – – –Businessacquired 8 – (10000) (4900)Paymentofamountsduetovendors (1 686) (2090) –Proceedsfromthesaleofintangiblesandproperty,plantandequipment 342 54 54

Netcashusedininvestingactivities (42 435) (49131) (41396)

Cash flows from financing activities

Repaymentsofshort-termborrowings (150 749) (1676) (201003)Repurchaseofshares – – –Sharepremium – – –Increaseinfinanceliability – 3699 –Increaseininterest-bearingborrowings 150 000 – 100000Repaymentofinterest-bearingborrowings – – (256000)Ownsharesacquired – – (12912)Proceedsfrominterest-bearingborrowings – – 300000

Netcash(usedin)/generatedfromfinancingactivities (749) 2023 (69915)

Net increase/(decrease) in cash and cash equivalents 30 560 (253442) (144474)Cash and cash equivalents at the beginning of the year 86 475 339917 484391

Cash and cash equivalents at the end of the year 13 117 035 86475 339917

48

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Segment information

Group

Gijima has a diversified and comprehensive range of ICT consulting and delivering capabilities. Togetherwithourin-depthknowledgeofsystemsintegration,theGrouphasasolidfoundationfromwhichtodeliververticallyintegrated,industryfocusedsolutionsforourclientsacrossabroadspectrumofindustries.Thesecomprehensive and integrated industry solutions are delivered by the Group’s two reportable segments,ProfessionalServicesandManagedServices,whicharetheGroup’sstrategicbusinessunits.

Foreachofthestrategicbusinessunits,theGroup’sCEO(thechiefoperatingdecision-makeroftheGroup)reviewsinternalmanagementreportsonamonthlybasis.

ProfessionalServicesfocusesonprofessionalconsultingandprojectservicesasfollows:

– applicationconsultingandcustomisation;

– customapplicationsdevelopment;

– applicationsmanagementoutsourcing;

– systemintegration;

– informationsystemconsulting;

– ITtrainingandeducation;and

– industry-specifictechnicalsolutions.

ManagedServicesfocusesoninfrastructureservicesandsolutionsinthefollowingdisciplines:

– remotemanagedservicesencompassingtheICTassetsintheentireenterprise;

– secure,peer-to-peer,unifiedcommunicationservices;

– advancedenterprisecomputingservicesincludingprocessing,storagemanagementandhostingservices;

– Applicationshostingandsupport;and

– distributedfieldservices,incorporatingdesktop,outputmanagement,mobileservices,specialisedequipmentlikeATMsphysicalsecuritymaintenanceandlogisticalservices.

Performanceismeasuredbasedonsegmentprofitbeforeincometax,asincludedintheinternalmanagementreportsthatarereviewedbytheGroup’sCEO.Segmentprofitisusedtomeasureperformanceasmanagementbelievesthatsuchinformationisthemostrelevantinevaluatingtheresultsofcertainsegmentsrelativetootherentitiesthatoperatewithintheseindustries.

Informationregardingtheresultsofeachreportablesegmentisincludedbelow:

2012 2011

RevenueR’000

Segment results

R’000Revenue

R’000

SegmentresultsR’000

ProfessionalServices 1 059 048 25 209 949810 (6911)

ManagedServices 1 498 102 10 692 1648085 144964

2 557 150 35 901 2597895 138053

Internalrevenueadjustment (27 082) (31313)

2 530 068 2566582

Unallocated items:

Othercorporateexpenses (52 725) (24199)Lossonsaleofproperty,plantandequipmentandintangibleassets (168) (1415)Settlementexpense – (373947)Retrenchmentcost (43 678) –

Exchangeratelossesontransactions 11 577 3343

Operatingloss (49 093) (258165)Financialincome 7 233 8363

Financialexpenses (29 423) (32099)

Lossbeforetax (71 283) (281901)

Incometax 20 693 73153

Lossfortheyear (50 590) (208748)

51

Thereportablesegmentsoperateinthefollowingindustries:

2012Revenue

R’000

2011Revenue

R’000

Mining 571 207 561265Manufacturing 390 327 380962Telecommunications 24 150 70194Financialservices 500 199 503192Retailandhospitality 51 224 65520Publicsector 893 426 914251Other 99 535 71198

2 530 068 2566582

Inpresentinginformationonthebasisofgeographicalsegments,segmentrevenueisbasedonthegeographicallocationofouroffices.

Geographical information

2012 2011

RevenueR’000

Operating profitR’000

RevenueR’000

OperatingprofitR’000

SouthernAfrica 2 415 505 (35 665) 2462803 (298275)Foreign 114 563 (13 428) 103779 40110

2 530 068 (49 093) 2566582 (258165)

Major customers

RevenuesfromtwocustomersthatrepresentsapproximatelyR545million(2011:R673million)oftheGroup’stotalrevenuesofwhichR295million(2011:R338million)relatestothepublicsectorandR249million(2011:R325million)tothefinancialservicessector.

Operating loss before financing costs

Operatingprofitbeforefinancingcostsisarrivedataftertakingintoaccount:

Group2012

R’0002011

R’000

2.1 Revenue from

–Saleofgoods 464 714 409741–Renderingofservices 2 065 354 2156841

2 530 068 2566582

Revenuefrom(%)

–Saleofgoods 18 16–Renderingofservices 82 84

100 100

2.2 Auditors’ remuneration

–Auditfees 5 035 7132–Otherservices 682 96

5 717 7228

52

Group2012

R’0002011

R’000

2.3 Depreciation: property, plant and equipment (refer note 6)

–Buildings-owned 106 183–Computerequipment–owned 21 834 25130–Furnitureandfittings–owned 4 647 4047–Officeequipment–owned 1 717 1792–Motorvehicles–owned 331 214

28 635 31366

2.4 Amortisation: intangible assets (refer note 9)

–Amortisationoftradename 2 336 2337–Amortisationofsoftware 15 022 12009–Amortisationofclientcontract 2 583 646

19 941 14992

2.5 Loss on disposal of intangibles and property, plant and equipment 168 1415

2.6 Foreign exchange losses

Lossonforeignexchangecontracts 653 121Loss/(Gain)onforeignexchangetransactions 11 577 (3464)

Total foreign exchange losses/(gains) 12 230 (3343)

Theforeignexchangelosses/(gains)resultedmainlyfromtherevaluationofforeigntradereceivableandpayablebalancesandintra-grouploanaccountsdenominatedinAustraliandollars,Canadiandollars,USdollars,Chileanpeso,TurkishliraandEuro’stospotrate(refernote27).

Foreign exchange gains/(losses) recognised in other comprehensive income

Currencytranslationdifferencesforforeignoperations 2 844 (29194)Currencytranslationonnetinvestmentsforforeignoperations 11 496 24638Incometaxexpenseoncurrencytranslationsrecognisedinothercomprehensive(loss)/income (34) (41)

14 306 (4597)

ThecurrentaccountingpolicyincorporatestheeffectsofIAS21.15(theeffectsofchangesinforeignexchangerates).TheeffectisthattheGroup’sprofitsarenolongerimpactedbyexchangerategainsandlossesontranslationoninter-grouploanaccountsdenominatedinforeigncurrencies.Thesetranslationdifferencesare,from1July2009,recordedintheCompany’sstatementofcomprehensiveincome.Thistreatmentfollowsmanagement’sassessmentandclassificationoftheunderlyinginter-grouploanaccountsaspartofGijima’snetinvestmentintherelevantnon-tradingforeignoperations.

Attributableto:

Ownersoftheparent 14 306 (4597)Non-controllinginterest – –

Foreign exchange gains/(losses) recognised in other comprehensive income, net of income tax 14 306 (4597)

53

Group Company2012

R’0002011

R’0002012

R’0002011

R’000

2.7 Impairment of non-current assets and interest in subsidiary company

Chargesfortheyear

–Impairmentofloansreceivable(note7) – – 78 515 248039

– – 78 515 248039

2.8 Impairment of current assets

Chargesfortheyear–Increase/(Decrease)inprovisionforimpairmentoftrade

receivables(refernote12) 142 (15641)–Decreaseinprovisionforimpairmentofinventory(refernote11) (2 401) (216)

(2 259) (15857)

2.9 Fees for services

–Secretarial 180 180–Professional 15 234 11390

15 414 11570

2.10 Rentals in respect of operating leases

–Landandbuildings 65 692 62284–Equipment 28 080 27779–Officeequipment 870 1018–Computerequipmentandsoftware 5 928 5438–Vehicles 6 355 4788

106 925 101307

54

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Prescribed officer’s

Theaboveprescribedofficersareresponsibleforexercisinggeneralexecutivecontroloverandmanagementofthewhole,orsignificantportionofthebusiness.

Thetopthreeearnersare: R’000

TKopolo 3132JBogoshi 3287CJHFereirra 2988

Directors’ service contracts

Noneoftheservicecontractsoftheexecutiveornon-executiveDirectorscontainsnoticeperiodsinexcessofoneyear,orprovideforpredeterminedcompensationonterminationexceedingoneyear’ssalaryandbenefitsinkind.

Directors’ and prescribed officers’ interest in Share Linked Bonus Scheme

Ofthe19720000notionalsharesatyear-end,directorsandprescribedofficerswereawarded4500000notionalsharesasat30June2012.Allofthenotionalshareshavevestedatyear-end.

Group2012

R’0002011

R’000

2.12 Employeebenefitsexpense

Salariesandwages 1 365 534 1303540

–Permanent 1 079 187 1028019–Contractors 286 347 275521

Pensioncosts(refernote23) 103 621 97790

1 469 155 1401330

Theshare-basedpaymentexpenseisincludedinsalariesandwagesofpermanentemployees(refernote14).

Number of employees employed by reportable segment at 30 June

ProfessionalServices 1 233 1514ManagedServices 1 328 1995Corporateandother 594 393

3 155 3902

2.13 Dispute settlement

ThefollowingmaterialitemsrelatetocostsincurredbyGijimaaspartofasettlementagreementbetweenGijimaHoldings(Pty)Ltd,awhollyownedsubsidiaryofGijimaGroupLtdandtheDepartmentofHomeAffairs(DHA)regardingtheWhoAmIOnline(WAIO)contract.Theimpactofthedirectandrelatedsettlementexpenseshavebeenincludedintheoperatinglossfortheyearended30June2011.

Settlementexpenses – (357740)Settlement-relatedexpenses – (16207)

Grosssettlementcost – (373947)Deferredtax – 104705

Netoftax – (269242)

57

Group2012

R’0002011

R’000

3. NET FINANCIAL ExPENSE

3.1 Financial income

Interestincomeonbankdeposits 6 811 8274–Fairvalueadjustment 422 –

7 233 8363

3.2 Financial expenses

–Interestexpenseondebtorssecuritisationmeasuredatamortisedcost (28 055) (28767)

–Fairvalueadjustment – 8338–Interestexpenseonlong-termloansmeasuredatamortisedcost (1 099) (738)–Interestexpenseonoverdraft (269) (673)–Other – (10259)

(29 423) (32099)

4. INCOME TAx

South African tax (21 595) (80190)

Currenttax 8 302 8078

–currentyear 8 302 3479–prioryears – (168)–abnormaltax – 4767

Deferredtax(refernote10) (29 897) (88333)

–currentyear (29 909) (89375)–prioryears 12 959–changeintaxrate – 83

Withholdingtax – 65

–writtenoff – 65

Foreign tax 822 4577

Currenttax 3 114 6003

–currentyear 3 114 6003

Deferredtax(refernote10) (2 292) (1426)

–currentyear (2 292) (1426)

Secondary Tax on Companies 80 2460

(20 693) (73153)

58

Income tax recognised in other comprehensive income

Group

Before income tax

R’000

2012 Income tax

expenseR’000

Net of income tax

R’000

Before income tax

R’000

2011 Income tax

expenseR’000

Net of income tax

R’000

Currencytranslationdifferencesforforeignoperations 2 844 (34) 2 810 (29194) (41) (29235)Currencytranslationonnetinvestmentsforforeignoperations 11 496 – 11 496 24638 – 24638

14 340 (34) 14 306 (4556) (41) (4597)

Reconciliation of the tax rateLossbeforetax (71 283) (281901)

SouthAfricanstatutorytaxrate(%) 28.00 28.00Disallowableexpenditure(%) (3.58) (3.86)SecondaryTaxonCompanies(%) (0.11) (0.89)Incomenotsubjecttotax(%) 4.35 4.29Deferredtaxassetderecognised(currentyearmovement)(%) 0.39 –Deferredtaxassetrecognised(%) – 0.41Abnormaltax(%) – (1.69)Prioryearunderprovision(%) (0.02) (0.28)Withholdingtaxeswrittenoff(%) – (0.02)

Effectivetaxrate(%) 29.03 25.96

ThesubsidiaryGijimaInformationTechnologyServices(Pty)LtdoperatesinataxjurisdictioninNamibiawithhighertaxrates.

Group

2012 2011

5. LOSS PER SHARE

Basiclosspershareiscalculatedbydividingtheearningsattributabletoequityholdersoftheparentbytheweightedaveragenumberofordinarysharesinissueduringtheyear.BasiclosspershareLossattributabletoownersoftheparent(R’000) (50 785) (209990)

Weightedaveragenumberofordinarysharesinissue(thousands) 961 565 961565Basiclosspershare(cents) (5.28) (21.84)DilutedlosspershareLossattributabletoownersoftheparentascalculatedabove(R’000) (50 785) (209990)

Weightedaveragenumberofordinarysharesfordilutedearningspershare(thousands) 961 565 965167

Dilutedlosspershare(cents) (5.28) (21.76)

Theweightedaveragenumberofshareswascalculatedafteradjustmentsfortheeffectsofallpotentiallydilutiveordinarysharesofnil(2011:3602).

59

Group

2012 2011

Weightedaveragenumberofordinaryshares(basic) 961 565 961565Effectoffifthnotionalshareissues(refernote14) – 3602

Weightedaveragenumberofordinaryshares(diluted) 961 565 965167

In2012therewerenodilutiveshares.Headline loss per shareReconciliationbetweenearningsandheadlineearnings:For the year ended 30 JuneNetlossattributabletoownersoftheparent (50 785) (209990)AdjustmentsLossonsaleofproperty,plantandequipment(netoftaxeffect) 121 1019

Headlineloss (50 664) (208971)

Headlinelossperordinaryshare(cents) (5.27) (21.73)Dilutedheadlinelossperordinaryshare(cents) (5.27) (21.65)

6. PROPERTY, PLANT AND EQUIPMENT

Group

TotalR’000

Land and buildings

R’000

Computer equipment

R’000

Furniture and fittings

R’000

Office equipment

R’000Vehicles

R’000

Year ended 30 June 2012–Carryingamountat

1July2011 81 621 8 769 45 794 21 258 4 952 848–Additions 33 514 – 28 288 2 220 2 676 330–Revaluationofasset 3 839 3 839 – – – ––Disposalsand

adjustments (511) – (513) (5) 13 (6)–Depreciationcharge (28 635) (107) (21 833) (4 647) (1 717) (331)

–Carryingamountat30June2012 89 828 12 501 51 736 18 826 5 924 841

At30June2012–Cost 324 280 3 457 236 671 57 683 23 468 3 001–Revaluation 9 509 9 509 – – – ––Accumulated

depreciationandaccumulatedimpairmentlosses (243 961) (465) (184 935) (38 857) (17 544) (2 160)

–Closingcarryingamount 89 828 12 501 51 736 18 826 5 924 841

Leasedassetsincludedabovecomprise:Cost 10 080 – 9 973 – – 107Accumulateddepreciationandaccumulatedimpairmentlosses (4 503) – (4 399) – – (104)

Carryingamount 5 577 – 5 574 – – 3

Landandbuildingsconsistof:

Office Block situated on stand 7565, 2 Bismark Street, Windhoek, Namibia. The land and buildings,acquiredinJanuary2003,atapurchasepriceofR3.8million(includingimprovements)wererevaluedby anindependentqualifiedPropertyValuer.

A revaluation was carried out for the year ended 30 June 2012. Land and buildings were revaluedto N$12.5 million(R12.5million).

Therevaluationwasperformedusingthediscountedcashflowmethodusedwasbasedonthefuturenetrentalincomewhichcanbegeneratedbytheproperty,whichiscapitalisedatapresentmarketrelatedrate.

60

Theoffice blockwas valuedbasedonmarket related rental per squaremetre taking into account theareaofofficespace,storagespaceandparking,resulting inamarketrelatedrentalafterexpensesofR0.77 million.Thiswascapitalisedat9%.

ThecarryingamountthatwouldhavebeenrecognisedhadtheassetsbeenmeasuredunderthecostmodelwouldhavebeenR2.9million(2011:R3.1million).

Erf7565,BismarkStreet,WindhoekispledgedassecurityforanamountofN$5million(R5million).

TotalR’000

Land and buildings

R’000

Computer equipment

R’000

Furniture and

fittingsR’000

Office equipment

R’000Vehicles

R’000

Year ended 30 June 2011–Carryingamountat

1July2010 91334 8952 57229 18262 5950 941–Additions 21853 – 13923 7067 744 119–Businessacquired 106 – 106 – – ––Disposalsand

adjustments (306) – (334) (24) 50 2–Depreciationcharge (31366) (183) (25130) (4047) (1792) (214)

–Carryingamountat30June2011 81621 8769 45794 21258 4952 848

At30June2011–Cost 293975 3457 208896 57474 21322 2826–Revaluation 5670 5670 – – – ––Accumulateddepreciation

andaccumulatedimpairmentlosses (218024) (358) (163102) (36216) (16370) (1978)

–Closingcarryingamount 81621 8769 45794 21258 4952 848

Leasedassetsincludedabovecomprise:Cost 10890 – 10107 – – 783Accumulateddepreciationandaccumulatedimpairmentlosses (3998) – (3272) – – (726)

Carryingamount 6892 – 6835 – – 57

Company

2012R’000

2011R’000

7. INVESTMENT IN SUBSIDIARY COMPANY

Unlisted

Sharesatcostlessimpairmentlosses – –LoansowingbyGijimaHoldings(Pty)Ltd 787 166 663944

787 166 663944Impairmentofloansreceivable (708 600) (630085)

Netinterestinsubsidiarycompany 78 566 33859Sharebuyback – (11005)

78 566 22854

Gijimahassubordinatedallitsrights,titleandinterestinclaimsduetoitbyGijimaHoldings,untilsuchtimeas the subsidiary’s assets, fairlyvalued exceed its liabilities.Asa result of theseagreements therecoverabilityoftheloanreflectedhasbeenimpaireduntilsuchtimeasitisreasonablycertainthattheoutstandingbalancecanberecovered.TheloantoGijimaHoldingsisinterest-free,unsecuredandwithnorepaymentterms.

AdetailedlistofsubsidiarycompaniesisavailableforinspectionattheregisteredofficeoftheCompany.

61

8. BUSINESS ESTABLISHMENT

Year ended 30 June 2012The MineRP division in Canada expanded its operations to Turkey and Chile. Two new subsidiaries,MineRPEurasiaandMineRPLatinAmericawasestablished.Thesubsidiariesoperationswillinvolveprovidingminingconsultingservicesandsoftware.EstablishmentoftheoperationswillenabletheGrouptoexpanditsinternationaloperationsandmarketshareminingconsultingservicesandsoftwareinEurope/AsiaandLatinAmerica.

2012

Group

MineRP Eurasia

MineRP Latin

America

Dateofestablishment31August

201130May

2012Groupshareholdingacquired 99.99% 99%RevenuecontributiontoGroupsresults R8.6million R0.750millionTheinvestmentintherespectiveentitieswasfinancedbyMineRPCanadaInc.Theinvestmentcomprisedofthefollowingcapitalcontributions:Sharecapital 25Turkishlira 10000pesoSharepremium 7975Turkish

lira990000peso

9. INTANGIBLE ASSETS

Group

Total Goodwill Trade name SoftwareClient

contractR’000 R’000 R’000 R’000 R’000

Year ended 30 June 2012Balance at 1 July 2011 154 163 71 354 37 381 33 157 12 271Additions 7 577 – – 7 577 –Amortisation charge (19 941) – (2 336) (15 022) (2 583)

Balance at 30 June 2012 141 799 71 354 35 045 25 712 9 688At 30 June 2012Cost 262 683 108 096 46 727 94 943 12 917Accumulated amortisation and impairment (120 884) (36 742) (11 682) (69 231) (3 229)Carrying amount 141 799 71 354 35 045 25 712 9 688Year ended 30 June 2011Balanceat1July2010 138285 67481 39717 31087 –Additions 15242 – – 15242 –Businessacquired 16790 3873 – – 12917Disposals (1162) – – (1162) –Amortisationcharge (14992) – (2336) (12010) (646)Balanceat30June2011 154163 71354 37381 33157 12271At30June2011Cost 255106 108096 46727 87366 12917Accumulatedamortisationandimpairment (100943) (36742) (9346) (54209) (646)Carryingamount 154163 71354 37381 33157 12271

ThegoodwillandtradenamethatarosefromthemergerwiththeinformationtechnologybusinessesofGijimainMay2005wassubjecttoanimpairmenttestatyear-endbasedonthecashgeneratingcapabilityofGijimaHoldings(Pty)Ltd,theprincipalacquirer.Therecoverableamountoftheunitwasdeterminedtobehigherthanitscarryingamountandthereforenoimpairmentchargeemanated.

62

GoodwillofR49.3millionarosefromtheacquisitionoftheinformationtechnologybusinessesofGijima.TheR49.3millionrepresentsthecostoftheacquisitionoverthefairvalueofthenetassetsacquired,afterdeductingthevalueofclientcontracts,adjustedfortheimpactofthedeferredtaximplicationsofIAS12andthevalueofthetradename.

ThecashgeneratingcapabilityofGijimaHoldings(Pty)Ltdwasdeterminedbydiscountingthefuturecashflowsgeneratedfromcontinuingoperations.

Thecashflowprojectionswerebasedonthe2012/2013budgetandthefouryearbusinessplanthereafter.A weighted average cost of capital rate of 11.70% per annum was used in discounting the projectedcash flows.

Thevalueofthetradenamehasbeenseparatelydisclosedandwasvaluedusingtherelief-from-royaltymethodology. This approach recognises that intangible assets have value insofar as the use of theseintangibleassetsgiverisetoanincomestream.Thevalueofthesefutureincomestreamsisbasedontheincomeproducingcapabilityoftheintangibleasset,withtheaftertaxnetpresentvalueoftheseincomestreamsaggregatedtodeterminethecurrenteconomicworthoftheintangibleasset.

FactorsspecifictotheGijimatradenamewereconsideredindeterminingareasonableroyaltyrateintheindicativetradenamevaluation.Aroyaltyrateof2.0%wasdeemedappropriatefortheindicativeGijimatradenamevaluation.Theusefullifeofthetradenameisestimatedtobe20yearsandisamortisedoverthisperiod.Theusefullifeofthetradenameisassessedonanannualbasisbasedonthemostcurrentinformationavailable.

10. DEFERRED TAx

Group

2012R’000

2011R’000

Balanceat1July 75 709 (10473)Currentyear 32 201 90801Underprovisionprioryears (11) (1043)Deferredtaxraisedagainstgoodwill – (3617)Currencytranslationdifferences(recogniseddirectlyinothercomprehensiveincome) (34) 41

Balanceat30June 107 865 75709

63

AssetsR’000

2012Liabilities

R’000TotalR’000

AssetsR’000

2011Liabilities

R’000TotalR’000

Thedeferredtaxbalances,allcalculatedat28%,comprisethefollowing:Capitalallowances – (4 673) (4 673) – (4338) (4338)Provisionsandotherallowances 55 402 – 55 402 48574 – 48574Unrealisedforeignexchangeitem 731 (234) 497 – (2318) (2318)Incomereceivedinadvance 4 781 – 4 781 7700 – 7700Liabilityarisingfromthestraight-liningofoperatingleases 6 658 – 6 658 7667 – 7667Deferredtaxininternationalstructure 2 612 (64) 2 548 2610 (2354) 256Calculatedtaxloss 88 252 – 88 252 67373 – 67373Prepayments – (2 112) (2 112) – (2947) (2947)Section24Callowances – (23 046) (23 046) – (28922) (28922)Share-basedpayment – – – 218 – 218Deferredtaxonintangibleassets – (2 713) (2 713) – (3436) (3436)Workinprogress – (7 495) (7 495) – (4470) (4470)Retentiondebtors – (10 200) (10 200) – (9689) (9689)Deferredtaxrecogniseddirectlyinthestatementofcomprehensiveincome – (34) (34) – 41 41

158 436 (50 571) 107 865 134142 (58433) 75709

11. INVENTORIES

Group

2012R’000

2011R’000

Finishedgoods 7 727 12977Writedownoffinishedgoods (35) (2436)

7 692 10541Workinprogress 26 767 15965

34 459 26506

Inventorycarriedatnetrealisablevalue 5 809 8495

12. TRADE AND OTHER RECEIVABLES

Group

2012R’000

2011R’000

Tradereceivables 570 237 696328Less:non-current (18 213) (17301)

Currenttradereceivables 552 024 679027Provisionforimpairmentoftradereceivables (30 223) (30081)

521 801 648946Prepayments 12 763 18335Otherreceivables 5 323 26385

539 887 693666

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At 30 June 2012 trade receivables include retention trade receivables of R36 427 million (2011:R34.602 million)relatingtocontractsinprogress.

Trade receivables securitisation

GijimaHoldingsanditssubsidiariescollectivelyenteredintoatradereceivablessecuritisationfundingprogramme(“Programme”),whichhasthefollowingfundingandearningsenhancementobjectives:

– tocreateaflexibleenvironmentwherebytheGroupcanraiseexternalfundingusingitstradereceivablesassecurity;

– toraisefundingatanefficientcost;

– tofacilitatetherecurringfundingoftheGroup’sgrowingoperations;and

– toenhanceprofitabilityandearningspersharebyreducingtheGroup’sfundingrate.

Mechanics of the structure

An independently owned special purpose entity, GijimaAst Finance (“SPE”) was incorporated and theGroupenteredintothesaleofexistingandfuturetradereceivables,andotheragreementswiththeSPE.

TheGroupmaintainstherighttomanageandadministerthecollectionsprocess.

IntermsoftheProgramme,theGroupraisedR256millionon31July2006fromvariousinvestorsintheCapitalMarketsatafixedrateforaperiodoffiveyears.TheSPEfundedthepurchasepricepaidtotheGroupbyissuing256millionClassA,securednon-amortisingzaAArateddebentures;and64millionClassB, subordinated,unsecured,non-amortisingandunrateddebentures in the2007financialyear.AnadditionalR9millionClassB,subordinated,unsecured,non-amortisingandunrateddebentureswasissuedinDecember2008withtheadjustmenttothesubordinatedfundingratioto22%(previously20%).

InDecember2008,theGroupraisedanadditionalR100millionfrominvestors intheCapitalMarketsatavariablerate.FundingforthefirstyearofthefiveyeartermwassecuredfromfundsexpiringinDecember2009andextendedto21June2010,thenewrepaymentdate.

TheSPEfundedthepurchasepricepaidtotheGroupbyissuinganadditional100millionClassA,securednon-amortisingzaAArateddebentures;andanadditional28millionClassB,subordinated,unsecured,non-amortisingandunrateddebenturesissuedinthe2009financialyear.

InFebruary2010,bymutualagreementwithaparticipatinginvestor,theGroupelectedtoundertakeanearlysettlementof125millionoftheoriginal256millionClassA,securednon-amortisingzaAArateddebentures;andresultedinareductionof35millionClassB,subordinated,unsecured,non-amortisingandunrateddebentures,resultinginabalanceof231millionoutstandingClassAand38millionClassBdebentures.

AnadditionalR11millionClassB,subordinated,unsecured,non-amortisingandunrateddebentureswasissuedinMay2010withtheadjustmenttothesubordinatedfundingratioto25%(previously22%),ofwhichR6millionrelatedtotheR231millionClassAdebenturesandR5milliontotheR100millionClassAshort-termdebentures.

On21June2010,theGroupelectedtoredeemtheremainingR131millionfiveyeardebenturesandtheR100 million short-term debentures and replaced the debentures by issuing new debentures totallingR300million.IntermsofthenewProgramme,theGroupraisedR300millionon21July2010fromthevariousinvestorsinthecapitalmarkets.

The SPE funded the purchase price paid to the Group by issuing 150 million Class A1, secured non-amortising zaAA rated debentures at a fixed and floating rate maturing 30 June 2015; 150 millionClassA2,securednon-amortisingzaAArateddebenturesatafloatingratematuring30June2012;and100 millionClassB,subordinated,unsecured,non-amortisingandunrateddebentures.

UponmaturityofthezaAAClassA2debentures,theywererolledforwardasClassA3debenturesforafurther5yearsmaturingonJune2017.Thedebentureswererolledatafixedratebasedonafiveyearswapcurveplus370basispoints.

ThezaAAClassAdebentureswereratedbyGlobalCreditRatingCo(refernote15and18).

TheGroupandtheFundersinvestedinthedebenturesissuedbytheSPE.AssecuritytotheClassA1andA2(2009:ClassA)debentureholders,acessioninsecuritatemdebitiwasenteredintobetweentheSPEandanestablishedsecuritytrust,wherebyallrightsarecededtothesecuritytrust.ThetrusteesofthesecuritytrustsubsequentlyissuedaguaranteetotheClassA1andA2(2011:ClassA1andA2)debentureholders.

Furthermore,theGrouphasenteredintoanoptionagreementwiththetrusteesoftheownershiptrusttoacquirealltheoptionequityintheSPE,within90daysaftertheterminationdateoftheProgramme.

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TheSPEisconsolidatedintermsofSIC12Consolidation–SpecialPurposeEntities.

TheGroup’stradereceivablesincludeR427.9million(2011:R565.3million)oftheSPEisSouthAfricantradereceivables.Theinterest-bearingborrowingsoftheGroupincludetheR300million(2011:R300 million)externalborrowingsbytheSPE(seenote15and18).

Thefinancialassets(ClassBdebentureinvestments)andthefinancialliabilities(subordinatedloansoftheSPE)areeliminatedonconsolidation.Sincethestatementsoffinancialpositionitemsareeliminated,itisappropriatetoeliminatethecorrespondingincomeandexpenseitems,beingtheinterestreceivedfromthedebenturesandtheinterestpaidonthesubordinatedloans.

Theaggregatevalueat30June2012and30June2011oftheSouthAfricantradereceivableswhichweresoldtotheSPEconsistofthefollowingamounts:

– Gijima Holdings, a wholly owned subsidiary of Gijima, amounting to R401.5 million (2011:R533.4million);

– MineRP Africa (Pty) Ltd, a wholly owned subsidiary of Gijima, amounting to R25.2 million (2011:R29.8million);

– GijimaElectronicandSecuritySystems(Pty)Ltd,awhollyownedsubsidiaryofGijima,amountingtoR1.2million(2011:R2.1million).

12.1 Exposure to credit risk

Thecarryingamountoftradeandotherreceivablesrepresentsthemaximumcreditexposure.

The maximum exposure to credit risk for trade receivables at the reporting date by geographicregionwas:

Group

2012R’000

2011R’000

Domestic 533 846 661540Namibia 14 300 12951Australasiancountries 13 801 14769Canada 8 290 7068

570 237 696328

Themaximumexposuretocreditriskfortradereceivablesatthereportingdatebytypeofcustomerwas:

Publicsector 296 402 396246Mining 88 975 94569Financialservices 42 374 67582Manufacturing 52 762 58501Retailandhospitality 8 925 12541Telecoms 58 609 53356Other 22 190 13533

570 237 696328

TwooftheGroup’smostsignificantcustomers’accountsfor20%ofthetradereceivable’scarryingamountat30June2012(2011:25%).

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12.1.1 Analysis of aging of trade receivables

Gross Impairment Gross Impairment2012 2011

R’000 R’000 R’000 R’000

Notpastdue 379 667 36 545149 74Pastdue1–30days 27 919 46 24005 2Pastdue31–90days 32 231 243 69816 251Pastdue91–120days 33 964 3 449 7519 14Morethan120days 96 456 26 449 49839 29740

Total 570 237 30 223 696328 30081

Theremainingtradereceivablesprofileisconsideredrecoverable.

12.1.2 Analysis of allowance for impairment

Themovementintheallowanceforimpairmentinrespectoftradereceivablesduringtheyearwasasfollows:

2012R’000

2011R’000

Balanceat1July 30 081 45722Impairmentlossraised/(reversed) 142 (15641)

Balanceat30June 30 223 30081

The allowance for impairment is based on past experience and the prevailing tradingconditions relating to specific reportable segments and individual debtors, where risk ofnon-paymentisperceivedtobehighandwhereoutstandingbalancesaredated.

TheallowanceaccountsinrespectoftradereceivablesareusedtorecordimpairmentlossesunlesstheGroupissatisfiedthatnorecoveryoftheamountowingispossible;atthatpointtheamountconsideredirrecoverableisdirectlywrittenoffagainstthefinancialasset.

13. CASH AND CASH EQUIVALENTS

2012R’000

2011R’000

Cashatbankandinhand 121 270 88827Less:Overdraft (4 235) (2352)

117 035 86475

The weighted average effective interest rate on short-term bank deposits was 6.07% (2011:5.24%). Thecarryingamountofcashandcashequivalentsrepresentsthemaximumcreditexposure.

14. ORDINARY SHARE CAPITAL

Group Company

2012R’000

2011R’000

2012R’000

2011R’000

Authorised1300000000ordinarysharesof0.10centeach 1 300 1300 1 300 1300

Issued968357379ordinarysharesof0.10centeach(2011:968357379ordinaryshares) 961 961 968 968

Balanceat1July 961 961 968 981Ownsharesacquired – – – (13)

Balanceat30June 961 961 968 968

6792070(2011:6792070)sharesisheldbyGijimaHoldings,awhollyownedsubsidiaryofGijima.

67

Share Linked Bonus Scheme

TheGrouphasabonusawardschemewithitsemployees.Thebonusawardschemeisanincentiveschemebasedonaconditionalrighttoreceiveacashamountequaltotheincreaseinvalueofacertainnumberofnotionalsharesortheequivalentvalueofshares.ThefairvalueoftheinstrumentsgrantedismeasuredusingtheBlackScholesvaluationmethodology,takingintoaccountthetermsandconditionsuponwhichinstrumentsaregranted.

This cash amount shall be applied wholly and exclusively towards the obligatory subscription and/orpurchaseofsharesintheCompany.

The company’s Remuneration Committee will determine if the settlement is to be applied towards thesubscriptionofnewsharesorthepurchaseofexistingSharesoranycombinationofsuchsubscriptionorpurchase.Historicallyonlyshareshavebeenissuedonvestingofsharelinkedbonusscheme.

ThesesharesaretreatedasequitysettledonaGrouplevel.

TheaggregatenumberofShares issuedunder this schemeat1July2009was16792628, issued inrespectoftrancheone,ofwhich6717051sharesareheldastreasurysharesat30June2012.Noshareswereissuedduringthecurrentfinancialyear.Thesharesissuedundertheschemerepresent0.78%oftheauthorisedsharecapitaland1.05%oftheissuedsharecapitalasat30June2012,excludingtreasuryshares.

Fifth notional share issue

ThefifthnotionalsharesundertheGijimaShareLinkedBonusSchemeweregrantedon18January2010.

Thedetailsofthegrantsareasfollows:

2012 2011

Sharepriceatgrantdate(cents) 100 100Exerciseprice(cents) 49 49Expectedvolatility(%) 53 53Expecteddividendyield(%) 4.73 4.73Risk-freeinterestrate(%) 7.78 7.78

Theexpectedvolatilityof53%isbasedonGijimaGroupLimited’sshareatgrantdateuntiltheexpectedtimetoexpiry.

ThefairvalueofthenotionalsharesatgrantdateisdeterminedbasedontheBlackScholesformula,usingtheaboveinputs.

2012R’000

2011R’000

Employeeexpenses(Income)/ExpensearisingfromnotionalSharesgrantedinprioryears – 2548

Total(income)/expenserecognisedasemployeecosts – 2548

The share-based payment expense is included in the salaries and wages of the permanent employees(Refer note2.12).

ThenumberandweightedaverageexercisepricesofnotionalSharesareasfollows:

Weighted average exercise

price

Number of notional

Shares

Weightedaverageexercise

price

Numberofnotional

Shares2012 2011

(cents) ’000 (cents) ’000

Outstandingat1July 49 24 540 78 60055Grantedduringtheyear – – 49 810Forfeitedduringtheyear 49 (4 820) 78 (12405)Expiredduringtheyear 49 (19 720) 107 (23920)

Exercisableat30June – – – –

68

ThenumberofnotionalsharesheldbyDirectorsareasfollows:

2012PJ Bogoshi

’000CJH Ferreira

’000

Outstandingat1July2011 1 200 1 900

–Atexercisepriceof49cents 1 200 1 000

Grantedduringtheyear – –

–Atexercisepriceof49cents – –

Forfeitedduringtheyear – –Expiringduringtheyear–atexercisepriceof49cents (1 200) (1 000)Outstandingat30June2012 – –

–Atexercisepriceof49cents 1 200 1 000

Exercisableat30June2012 – –

NonewshareswereallotedtoDirectorssubsequenttothe2012financialyearenduntilsuchtimeanewschemeisapprovedbytheshareholders.

2011PJBogoshi

’000CJHFerreira

’000

Outstandingat1July2010 2700 2400

–Atexercisepriceof107cents 1200 900–Atexercisepriceof49cents 1200 1000

Grantedduringtheyear – –

–Atexercisepriceof49cents – –

Forfeitedduringtheyear – –Vestedduringtheyear – –Expiringduringtheyear–atexercisepriceof107cents (1200) (900)Outstandingat30June2011 1200 1000

–Atexercisepriceof49cents 1200 1000

Exercisableat30June2011 – –

Non-controlling interests

Group2012 2011

R’000 R’000

Balanceat1July (3 205) (4447)Shareofnetprofitinsubsidiaries 195 1242

Balanceat30June (3 010) (3205)

30 June 2012

Inthecurrentfinancialyear,a70%ownedsubsidiaryoftheGijimaGroupLimitedincurredanetprofitofR0.646million.30%ofthenetprofitistransferredtonon-controllinginterest(refertoStatementofchangesinequity).

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15. INTEREST-BEARING BORROWINGS

2012R’000

2011R’000

Long-termloans 300 000 150000Totalliability 300 000 150000

–Securitisation 300 000 150000

Liabilitiesundercapitalisedfinanceleaseagreements 1 980 2729

–Totalliability 2 984 4278

–Less:Currentportionmovedtotradeandotherpayables (1 004) (1549)

301 980 152729

Securitisation

DuringMay2010thesubordinatedfundingratiowasadjustedto25%(previously22%).

On21June2010GijimaAstFinancefundedthepurchasepricepaidtoGijimaHoldingsbyissuing150 ofClass A1, 60-month secured non-amortising and by issuing 150 of Class A2, 24-month secured non-amortisingrateddebenturesofR1millioneach,and50ofClassB,subordinatedunsecured60-monthnon-amortisingunrateddebenturesand50ofClassB,subordinatedunsecured24-monthnon-amortisingunrateddebenturesofR1millioneach.

R104 million of Class A1 debentures bear interest at a fixed rate of 11.199% nacq. The remainingR46 millionofClassA1debenturesandR150millionoftheClassA2debenturesbearinterestatvariableratesatJIBARplus3.4and2.6,respectively.TheClassBdebenturesbearinterestatvariablerates.

TheR150millionClassA2debenturesmaturedonthe30June2012.FundingoftheA2debentureswasrolledforwardforafurtherfiveyearsmaturingonthe30June2017(refertonote12).TheA2debenturesare60-monthsecurednon-amortisingrateddebenturesofR1millioneach,and50ofClassBdebenturessubordinated,unsecured60-monthnon-amortisingunrateddebenturesofR1millioneach.

ClassA1andA2debentureshavebeenawardedazaAAcreditratingbyGlobalCreditRating,andhavebeen issuedto investors in theCapitalMarkets.TheClassBdebentureshavebeensubscribedforbyasubsidiaryentityofGijima.

Other liabilities

Othercapitalisedfinance lease liabilitieswhichamount toR3.0million (2011:R4.2million)havebeenenteredintoandarerepayablemonthly.Theloantermisfiveyears,thematuritydateis2015.

Interestonthefinanceleaseislinkedtotheprimeoverdraftrate,at30June2012theinterestratewas9%.Theleasesaresecuredbycessionovertheassetstowhichtheyrelate(refernote6)

Thepresentvalueofotherfutureminimumleasepaymentsundernon-cancellablefinanceleasesareasfollows:

2012R’000

2011R’000

Notlaterthan1year 1 004 1549Laterthan1yearandnotlaterthan5years 1 980 2729Laterthan5years – –

2 984 4278Less:Currentportion (1 004) (1549)

1 980 2729

Reconofminimumleasepayments:Futureleasepayments 1 260 1260Financecost 1 724 3018

PresentvalueendofJune 2 984 4278

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16. AMOUNTS DUE TO VENDORS

TheoutstandingamountonacquisitionofCubicoSolutionsCC:

2012R’000

2011R’000

SellersofCubicoSolutionsCC. 1 967 4076Less:Currentportion (1 967) (1613)

Non-currentportion – 2463

As at 30 June 2012

Not later than

1 yearR’000

Later than 1 year and

not later than

2 yearsR’000

Later than 2 years and

not later than

3 yearsR’000

TotalR’000

SellersofCubicoSolutionsCC 1 967 – – 1 967

1 967 – – 1 967

17. TRADE AND OTHER PAYABLES

Group

2012R’000

2011R’000

Tradepayablesandaccruals 304 206 360786Incomereceivedinadvance 27 657 40462Leavepayaccrual 65 912 66739Currentportionofinterest-bearingborrowings 1 004 1549Onerouscontract 452 1848Payrollandotherpayables 65 128 80810

464 359 552194

Tradepayablesaresubjecttonormalindustrysettlementterms.

18. SHORT-TERM BORROWINGS

Group

2012R’000

2011R’000

Securitisationshort-termborrowings – 150000

– 150000

R150millionwasraisedontheGroup’sdebtorssecuritisationprogrammeon21June2010.FundingofthisR150millionforthefirstyearoftheoriginallyanticipatedtwoyeartermwassourcedfromfundsthatexpiredon21June2012.Thefundingwasrolledforwardforafurtherfiveyearsexpiringon30June2017.

ThisrepresentstheclassA2debentureswhichbearinterestatavariableinterestrate.

71

19. PROVISIONS

TotalR’000

Payroll related

provisionsR’000

Onerous contract

R’000

Balance as at 30 June 2012Balance at the beginning of the year 2 931 2 931 –New provisions raised during the year 25 382 2 556 22 826Provisions utilised (293) (293) –

Balance at the end of the year 28 020 5 194 22 826

Balance as at 30 June 2011Balanceatthebeginningoftheyear 6119 6119 –Newprovisionsraisedduringtheyear 10334 10334 –Provisionsutilised (13522) (13522) –

Balanceattheendoftheyear 2931 2931 –

20. COMMITMENTS

2012R’000

2011R’000

Capital commitments

Futurecapitalcommitments 27 645

Future operating lease commitments

TotalR’000

Not later than 1 year

R’000

Later than 1 year and

not later than 5 years

R’000

Later than 5 years

R’000

Landandbuildings 256841 74014 143089 39738

ThematerialportionofleasecommitmentsrelatestofixedpropertyrentalwithCBSPropertyGroup.

21. FOREIGN ExCHANGE POSITION

Thefollowingforwardexchangecontractswereenteredinto.

2012 2011

Foreign currency

’000

Rand amount

R’000

Fair valueR’000

FEC AssetR’000

Foreigncurrency

‘000

Randamount

R’000

FairvalueR’000

FECLiability

R’000

USDollar 805 6761 6628 133 65 451 444 7

Euro 410 4330 4303 26 405 3972 3997 (25)

11090 10931 160 4423 4441 (18)

Theforwardexchangecontracts(“FEC”)relatetospecificforeigntradepayableexposuresonthestatementoffinancialpositionandwereenteredintotocovertheseforeigncommitmentsnotyetdue.

Theforwardexchangecontractswillbeutilisedforthepurposesoftradeduringthefollowingyear.Theforeignexchangecontractshavematuritydatesrangingfrom9July2012to11September2012.

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22. CONTINGENT LIABILITIES

Bank and other guarantees2012

R’0002011

R’000

At30JunetheGrouphadcontingentliabilitiesinrespectofregisteredperformancebonds,bankleaseandotherguaranteessplitbetweencurrenciesassetoutbelow.GijimaASTInformationTechnologyServices(Pty)Ltd–Namibiandollar 19997 –GijimaHoldings(Pty)Ltd-SouthAfricanrand 8784 5271

FirstNationalBankofNamibiaLimited 19997 –StandardBankofSouthAfricaLimited 8784 5271

28781 5271

AdetailedlistofguaranteesandperformancebondscanbeviewedattheGroup’sregisteredoffice.

23. RETIREMENT BENEFITS

TheGrouphascontributedtowardspensionandprovidentschemescovering95%ofqualifyingpermanentemployees.TheGijimaRetirementSchemewasestablishedon1September1999.Thefundisadefinedcontribution fund and is governed by the Pension Fund Act of 1956. The assets of the fund are heldindependently of the Group’s assets in separate trustee administered funds. The total employer andemployeecontributionsarerecognisedasanexpense.

Theamountschargedtotheincomestatementareasfollows:

Group2012

R’0002011

R’000

Pensioncosts 103 621 97909

Totalincludedinemployeebenefitsexpense(refernote2.12) 103 621 97909

24. RELATED PARTY TRANSACTIONS

DuringtheyeartheGroup,intheordinarycourseofbusiness,enteredintovarioussaleandpurchasetransactionswithrelatedparties.Thesetransactionsoccurredundertermsthatarenolessfavourablethanthoseagreedwiththirdparties.Servicesareusuallynegotiatedwithrelatedpartiesonacost-plusbasisallowingamarginrangingfrom10%to25%.Goodsareprocuredonthebasisofthepricelistinforcewithnon-relatedparties.

TwoshareholdersandMembersof theBoardofDirectorshadsignificant influenceon theoperationalandeconomicaldecisionmakingoftheGroupthroughmeansofsignificantshareholdingintheGroup(refer note2.11.)

24.1 Subsidiaries

Details of interests in subsidiaries are disclosed in the annual report. Transactions betweensubsidiariesareconductedintheordinarycourseofbusinessandatarm’slength.

All intercompany transactions, balances and unrealised surpluses within the operations areeliminatedonconsolidation.

24.2 Directors

DetailsrelatingtoDirectors’emolumentsandshareholdingsintheCompanyaredisclosedinnote2.11.

GijimaHoldings(awhollyownedsubsidiaryoftheCompany)contractedSeekersTravelasthetravelagencyofthecompanyasfrom1August2008.

Thistransactionwasdoneonanarm’slengthbasiswiththeapprovaloftheBoardandistotheadvantageoftheGroup.

SeekersTravelisultimatelyownedbyTourvestHoldings(Pty)Ltd,acompanywherethefollowingDirectorshaveanon-controllinginterest,eitherdirectlyorthroughvariousintermediaryholdingcompaniesandfamilytrusts:

–RWGumede

73

–AFBMthembu

–CJHFerreira

GijimaHoldings(awhollyownedsubsidiaryoftheCompany)contractedGenTechnologiesasfromSeptember2009.

Thistransactionwasdoneonanarm’slengthbasiswiththeapprovaloftheBoardandistotheadvantageoftheGroup.GenTechnologies(Pty)LtdisasubsidiaryofGumaTech(Pty)Ltd,amajorshareholderofGijima.

21stCenturyPaySolutionsGroup(Pty)Ltdisarewardsconsultancyentity,inwhichDrMHR Bussinserves as a Director on both Gijima and 21st Century Pay Solutions Group (Pty) Ltd’s board ofdirectors.

Group

2012R’000

2011R’000

ThetotalexpensesincurredbyGijimaGroupwithregardstoSeekersTravel: 9 679 2347821stCenturyPaySolutionsGroup(Pty)Limited 571 –ThetotalexpensesincurredbyGijimaGroupwithregardstoGenTechnologies: 802 1725

11 052 25203

24.3 Share in joint ventures

TheGroup’sinvestmentinjointventuresisreflectedbelow:

Percentage shareholding

2012 2011

SiriusConsulting(Pty)Ltd 50 50

SiriusConsulting(Pty)Ltdisajointventurethatprovidessoftwaresolutionsintheminingindustry.

ThefollowingamountsrepresenttheGroup’sshareoftheassetsandliabilitiesandrevenue,expensesand cash flows of the joint ventures and are included in the consolidated statement of financialposition,incomestatement,statementofcomprehensiveincomeandstatementofcashflows:

2012R’000

2011R’000

Currentassets 1 028 523

Totalassets 1 028 523

Currentliabilities 2 24

Totalliabilities 2 24

Netassets 1 026 499

Revenue 2 713 1722

Profitbeforetaxation 1 899 923Taxation (621) (318)

Profitaftertaxation 1 278 605

Proportionateinterestinjointventures’cashflowsCashgeneratedfrom/(usedin)operatingactivities 1 213 (114)Cashusedininvestingactivities – –Cashusedinfinancingactivities (800) –

Netcashin/(out)flow 413 (114)

74

25. SUBSEQUENT EVENTS

The Board has identified MineRP as non-core and, as MineRP requires considerable investment tomaintainitscompetitiveposition,hasresolvedtodisposethereofinordertopreserveMineRP’svalueandrealisemaximumvalueforGijimashareholders.GijimahasconcludedthetermsofagreementsrelatingtothedisposaloftheCompany’sminingtechnologyandconsultingbusinesses(MineRPBusinesses),toaconsortiumledbyRMBCorvest(Pty)Ltd,asubsidiaryofRMBPrivateEquity(Pty)Ltd.MineRPwillbehousedinanewlyincorporatedentity,OakleafInvestmentHoldings89(Pty)Ltd.

TherewerenoothersubsequenteventsthattheGroupwasawareofatdateofapprovaloftheconsolidatedfinancialstatements.

26. CASH FLOW INFORMATION

26.1 Reconciliation of loss before tax to cash generated from operations

Group

2012R’000

2011R’000

(Loss)/Profitbeforetax (71 283) (281901)Adjustmentsfor:Amortisation 19 941 14992Depreciation 28 635 31366Lossonsaleofintangiblesandproperty,plantandequipment 168 1415Increase/(Decrease)inprovisions 25 089 (3813)Non-cashflowmovementasaresultofoperatinglease (3 598) (436)Impairmentofintergrouploans – –Movementonimpairmentexpense 142 (15641)Disputesettlementandrelatedexpenses(refernote2.13) – 215706Financialincome (7 233) (8363)Financialexpenses 29 423 32099Share-basedpayments – 2548Currencytranslationdifferencesinforeignoperations 2 810 (29235)Currencytranslationonnetinvestmentsinforeignoperations 11 497 24638

Cashgeneratedfrom/(usedin)operationsbeforeworkingcapitalchanges 35 591 (16625)Workingcapitalchanges(Increase)/Decreaseininventories (7 953) 16048Decrease/(Increase)intradeandotherreceivables 152 725 (232401)(Decease)/Increaseintradeandotherpayables (96 758) 111710

Cashgeneratedfrom/(usedin)operations 83 605 (121268)

26.2 Reconciliation of interest received

Interestreceivableatbeginningoftheyear 83 1036Financialincomefortheyear 7 233 8363Interestreceivableatyear-end (102) (83)

Interestreceivedfortheyear 7 214 9316

26.3 Reconciliation of interest paid

Interestpayableatbeginningoftheyear 1 861 (983)Financialexpensesfortheyear (29 423) (32099)Interestpayableatyear-end 6 658 (1861)

Interestpaidfortheyear (20 904) (34943)

75

26.4 Reconciliation of tax paid

Group

2012R’000

2011R’000

Nettaxreceivable/(payable)atbeginningoftheyear 16 276 (2543)Currenttax (11 414) (14080)Withholdingtaxwrittenoff – (65)SecondaryTaxonCompanies (80) (2460)Currencytranslationtaxnotthroughprofitandloss (34) (41)Currencytranslationtaxnotthroughequity – –Nettaxpayableatyear-end (919) (16211)

Taxpaidfortheyear 3 829 (35400)

27. FINANCIAL RISk MANAGEMENT

Overview

TheGrouphasexposureto:

–Creditrisk

–Liquidityrisk

–Marketrisk

ThisnotepresentsinformationabouttheGroup’sexposuretoeachoftheaboverisks,theGroup’sobjectives,policiesandprocessesformeasuringandmanagingrisk,andtheGroup’smanagementofcapital.Furtherquantitativedisclosuresareincludedthroughouttheseconsolidatedfinancialstatements.

TheBoardofDirectorshasoverallresponsibilityfortheestablishmentandoversightoftheGroup’sriskmanagementframework.TheGroup’sTreasuryandCreditfunctionsareresponsiblefordevelopingandmonitoringtheGroup’sriskmanagementpolicies.GroupTreasuryandCreditfunctionsreportregularlytotheBoardofDirectorsontheiractivities.

The Group’s risk management policies are established to identify and analyse the risks faced by theGroup, tosetappropriaterisk limitsandcontrols,and tomonitorrisksandadherence to limits.RiskmanagementpoliciesandsystemsarereviewedregularlytoreflectchangesinmarketconditionsandtheGroup’sactivities.TheGroup,throughitstrainingandmanagementstandardsandprocedures,aimstodevelopadisciplinedandconstructivecontrolenvironmentinwhichallemployeesunderstandtheirrolesandobligations.

The Group Audit Committee oversees how management monitors compliance with the Group’s riskmanagementpoliciesandproceduresandreviewstheadequacyoftheriskmanagementframeworkinrelationtotherisksfacedbytheGroup.TheGroupAuditCommitteeisassistedinitsoversightrolebyInternalAudit.InternalAuditundertakesbothregularandadhocreviewsofriskmanagementcontrolsandprocedures,theresultsofwhicharereportedtotheAuditCommittee.

Credit risk

CreditriskistheriskoffinanciallosstotheGroupifacustomerorcounterpartytoafinancialinstrumentfailstomeetitscontractualobligations,andarisesprincipallyfromtheGroup’sreceivablesfromcustomersandinvestmentsecurities.

Trade and other receivables

TheGroup’sexposuretocreditriskisinfluencedmainlybytheindividualcharacteristicsofeachcustomer.ThedemographicsoftheGroup’scustomerbase,includingthedefaultriskoftheindustryandcountryinwhichcustomersoperate,haslessofaninfluenceoncreditrisk.Approximately12%oftheGroup’srevenueisattributabletosalestransactionswithasinglecustomer.

TheGroup’sCreditfunctionhasestablishedacreditpolicyunderwhicheachnewcustomerisanalysedindividuallyforcreditworthinessbeforetheGroup’sstandardpaymentanddeliverytermsandconditionsare offered. The Group’s review includes external ratings, where available, and in some cases bankreferences.CustomersthatfailtomeettheGroup’sbenchmarkcreditworthinessmaytransactwiththeGrouponlyonaprepaymentbasis.

More than80%of theGroup’scustomershavebeen transactingwith theGroupsinceJune2005,andlosseshaveoccurredinfrequently.Inmonitoringcustomercreditrisk,customersaregroupedaccordingto their credit characteristics, including whether they are an individual or legal entity, whether they

76

areawholesale,retailorend-usercustomer,geographiclocation,industry,agingprofile,maturityandexistenceofpreviousfinancialdifficulties.TradeandotherreceivablesrelatemainlytocustomerswhoreceiveservicesfromtheGroup.

Goodsaresoldsubjecttoretentionoftitleclauses,sothatintheeventofnon-paymenttheGroupmayhaveasecuredclaim.TheGroupgenerallydoesnotrequirecollateralinrespectoftradeandother receivables.

The Group establishes an allowance for impairment that represents its estimate of incurred losses inrespectoftradeandotherreceivablesandinvestments.Themaincomponentofthisallowanceisaspecificlosscomponentthatrelatestoindividuallysignificantexposures.

Investments

Guarantees

The Group’s policy is to provide guarantees only to subsidiaries controlled by the Group. At 30 June2012theGrouphadcontingentliabilitiesinrespectofregisteredperformancebonds,bankleaseorotherguaranteestothevalueofR28.8million(June2011:R5.2million).

Liquidity risk

Liquidity risk is the risk that theGroupwillnot be able tomeet itsfinancial obligationsas they falldue.TheGroup’sapproachtomanagingliquidityistoensure,asfaraspossible,thatitwillalwayshavesufficientliquiditytomeetitsliabilitieswhendue,underbothnormalandstressedconditions,withoutincurringunacceptablelossesorriskingdamagetotheGroup’sreputation.

TheGroupusesinternallydevelopedcostingmodelstocostitsproductsandservices,whichassistitinmonitoringcashflowrequirementsandoptimisingitscashreturnoninvestments.TypicallytheGroupensuresthatithassufficientcashondemandtomeetexpectedoperationalexpensesintheshortterm,includingtheservicingoffinancialobligations;thisexcludesthepotentialimpactofextremecircumstancesthat cannot reasonably be predicted, such as natural disasters. In addition, the Group maintains thefollowingsecuredloans:

SouthAfrica

June 2012

– R104millionsecuritisationloan.Thetermoftheloanisfiveyearsendingon30June2015.Interestisfixedandpayablequarterlyat11.199%NACQ.

– R46millionsecuritisationloan.Thetermoftheloanisfiveyearsendingon30June2015.Interestisvariableandpayablequarterlyat3monthJIBARplus260basispoints.

– R150millionsecuritisationloan.Thetermoftheloanhasbeenextendedforafurtherfiveyearsandmatureson30June2017.Interestwillbefixedandpayablequarterlybasedonafive-yearswapcurveplus370basispoints.

June 2011

– R104millionsecuritisationloan.Thetermoftheloanisfiveyearsendingon30June2015.Interestisfixedandpayablequarterlyat11.199%NACQ.

– R46millionsecuritisationloan.Thetermoftheloanisfiveyearsendingon30June2015.Interestisvariableandpayablequarterlyat3monthJIBARplus340basispoints.

– R150millionsecuritisationloan.Thetermoftheloanistwoyearsendingon30June2012.Interestisvariableandpayablequarterlyatthree-monthJIBARplus260basispoints.

TheloansaresecuredbytheGroup’sSouthAfricantradereceivables(refertonote12).

TheGroupmaintainsthefollowinglinesofcredit:

Namibia

– NAD4.5millionoverdraft facility, that issecuredbyGijimaHoldings.Theoverdraft facilitycanbedrawndowntomeetshort-termfinancingneeds.Thefacilityhasanannualmaturitythatisrenewedannually.InterestwouldbepayableattheNamibianprimeinterestrate.

Market risk

Marketriskistheriskthatchangesinmarketprices,suchasforeignexchangerates,interestratesandequitypriceswill affect theGroup’s incomeor thevalueof itsholdingsoffinancial instruments.Theobjectiveofmarketriskmanagementistomanageandcontrolmarketriskexposureswithinacceptableparameters,whileoptimisingthereturnonrisk.

TheGroupbuysandsellsderivativesintheordinarycourseofbusiness,andalsoincursfinancialliabilities,inordertomanagemarketrisks.AllsuchtransactionsarecarriedoutwithintheguidelinessetbyGroupTreasury.TheGroupmarkstomarketallderivatives.

77

Currency risk

TheGroupisexposedtocurrencyriskonsalesandpurchasesthataredenominatedinacurrencyotherthantherespectivefunctionalcurrenciesofGroupentities,primarilytheeuro(EUR)andUSdollars(USD).TheGroup,asfaraspossible,seektoachieveaneconomichedge.

TheGrouphedgestradereceivablesandtradepayablesdenominatedinaforeigncurrencyoramountsinexcessofEUR10000andUSD10000.TheGrouphedgesspecifictransactionsandhasaminimumbaselinecoverageforcontinuousforeignoperations.TheGroupgenerallytakesthepositionofpassingthecurrencyriskovertothecustomerandthereforeinvoicingthecustomerusingtheforwardexchangerateperthespecificcontract.TheGroupusesforwardexchangecontractstohedgeitscurrencyrisk,allwithamaturityoflessthanoneyearfromthereportingdate.Whennecessary,forwardexchangecontractsarerolledoveratmaturity.

InterestonborrowingsisdenominatedincurrenciesthatmatchthecashflowsgeneratedbytheunderlyingoperationsoftheGroup,primarilyZARandNAD.Thisprovidesaneconomichedgeandnoderivativesareenteredinto.

Inrespectofothermonetaryassetsandliabilitiesdenominatedinforeigncurrencies,theGroupensuresthatitsnetexposureiskepttoanacceptablelevelbybuyingorsellingforeigncurrenciesatspotrateswhennecessarytoaddressshort-termimbalances.

TheGroup’sinvestmentsinothersubsidiariesarenothedgedasthosecurrencypositionsareconsideredtobelongterminnature.

Interest rate risk

TheGroupadoptsapolicyofensuringthatallofitssignificantexposuretochangesininterestratesonlong-termborrowingsismainlyonafixedratebasis.Thisisachievedbyenteringintofixedinterestratecontracts.

Other market price risk

TheGroupcurrentlydoesnotholdanydebtandequitysecuritiesinitsinvestmentportfolio.AllbuyandselldecisionsareapprovedbytheExecutiveCommittee.

TheGroupdoesnotenterintocommoditycontracts.

Capital management

TheBoard’spolicyistomaintainastrongcapitalbasesoastomaintaininvestor,creditorandmarketconfidenceandtosustainfuturedevelopmentofthebusiness.Capitalconsistsofsharecapital,retainedearningsandnon-controllinginterestoftheGroup.TheBoardofDirectorsmonitorsboththedemographicspreadofshareholders,aswellasthereturnoncapital,whichtheGroupdefinesastotalshareholders’equity,excludingnon-redeemablepreferencesharesandminorityinterestsandthelevelofdividendstoordinaryshareholders.

TheGroupisauthorisedtopurchaseitsownsharesonthemarket;thetimingofthesepurchasesdependsonmarketprices.PrimarilythesharesareintendedtobeusedforissuingsharesundertheGroup’sShareLinkedBonusScheme.BuyandselldecisionsaremadeonaspecifictransactionbasisbytheBoardofDirectors.

78

Financial assets and financial liabilities

Thefairvaluesoffinancialassetsandfinancialliabilities,togetherwiththecarryingamountsshowninthestatementoffinancialposition,areasfollows:

30 June 2012TotalR’000

Fair value through

profit and loss (held

for trading)R’000

Loans andreceivables

R’000

Other liabilities

at amortised cost

R’000Fair value

R’000

Financial assetsTradeandotherreceivables 558 100 – 558 100 – 558 100Cashandcashequivalents 121 270 – 121 270 – 121 270

679 370 – 679 370 – 679 370

Financial liabilitiesFinanceleaseliabilities 2 984 – – 2 984 2 984Securedsecuritisationloan 300 000 – – 300 000 293 804Tradeandotherpayables 463 195 – – 463 195 463 195FECLiability 160 160 – – 160Bankoverdrafts 4 235 – – 4 235 4 235

770 574 160 – 770 414 764 378

Unrecognisedgain 6 196

30 June 2011Total

R’000

Fairvaluethrough

profitandloss(held

fortrading)R’000

Loansandreceivables

R’000

Otherliabilities

atamortisedcost

R’000Fairvalue

R’000

Financial assetsTradeandotherreceivables 710967 – 710967 – 710967Cashandcashequivalents 88827 – 88827 – 88827

799794 – 799794 – 799794

Financial liabilitiesFinanceleaseliabilities 4278 – – 4278 4292Securedsecuritisationloan 300000 – – 300000 296078Tradeandotherpayables 550627 – – 550627 550627FECLiability 18 18 – – 18Bankoverdrafts 2352 – – 2352 2352

857275 18 – 857257 853367

Unrecognisedgain 3908

Interest rates used for determining fair value

Theinterestratesusedtodiscountestimatedcashflows,whenapplicable,arebasedonthegovernmentyieldcurveatthereportingdateplusanadequatecreditspread,andwereasfollows:

2012 2011

Financeleaseliabilities 8.00% – 11.70% 8.00%–11.58%Securedsecuritisationloan 8.19 – 11.70% 8.15–11.20%

79

Fair value hierarchy

Thetablebelowanalysesfinancialinstrumentscarriedatfairvalue,byvaluationmethod.Thedifferentlevelshavebeendefinedasfollows:

Level1:quotedprices(unadjusted)inactivemarketsforidenticalassetsorliabilities

Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset orliability,eitherdirectly(ie,asprices)orindirectly(ie,derivedfromprices)

Level3:inputsfortheassetorliabilitythatarenotbasedonobservablemarketdata(unobservableinputs).

30 June 2012 Level 1 Level 2 Level 3 Total

Financial liabilities

FECLiability(R’000) – 160 – 160

– 160 – 160

30June2011 Level1 Level2 Level3 Total

Financial liabilities

FECLiability(R’000) – 18 – 18

– 18 – 18

Credit risk

Exposure to credit risk

Refertotradeandotherreceivables(note12)andcashandcashequivalents(note13).

Liquidity risk

The following are the contractual maturities of financial liabilities, including interest payments andexcludingtheimpactofnettingagreements:

Carrying amount

R’000

Contractual cash flows

R’000

6 months or lessR’000

6 – 12 months

R’000

1 – 2yearsR’000

2 – 5yearsR’000

5 yearsR’000

30 June 2012Non-derivative financial liabilitiesSecuredsecuritisationloan 300 000 (423 254) (15 482) (15 482) (30 965) (196 145) (165 180)Financeleaseliabilities 2 984 (3 225) (596) (596) (2 001) (32) –Tradeandotherpayables 464 359 (464 359) (464 359) – – – –Securedbankoverdraft 4 235 (4 235) (4 235) – – – –

771 578 (895 073) (484 672) (16 078) (32 966) (196 177) (165 180)

30June2011

Non-derivative financial liabilitiesSecuredsecuritisationloan 300000 (375364) (14019) (164019) (15775) (181551) –

Financeleaseliabilities 4278 (4892) (1292) (540) (2160) (900) –

Tradeandotherpayables 552194 (552194) (552194) – – – –

Securedbankoverdraft 2352 (2352) (2352) – – – –

858824 (934802) (569857) (164559) (17935) (182451) –

Currency risk

30 June 2012 30June2011EURO USD GBP EURO USD GBP

Tradereceivables – 578 – 73 641 0Tradepayables (773) (7 485) – (304) (10335) (2)

Grossstatementoffinancialpositionexposure (773) (6 907) – (231) (9694) (2)Forwardexchangecontracts 410 805 – 405 65 –

Netexposure (363) (6 102) – 174 (9629) (2)

80

Thefollowingsignificantexchangeratesappliedduringtheyear:

Average rate Reporting date mid-spot rate2012 2011 2012 2011

USD1 7.768 6.953 8.189 6.779EUR1 10.383 9.555 10.386 9.822AUD1 8.055 6.940 8.392 7.258CAD1 7.740 6.959 8.039 7.027GBP1 12.323 11.074 12.862 10.873

Sensitivity analysis

A10%strengtheningof theZARagainst the followingcurrenciesat30Junewouldhave (increased)/decreasedequityandprofitor(loss)bytheamountsshownbelow.Thisanalysisassumesthatallothervariables,inparticularinterestrates,remainconstant.Theanalysisisperformedonthesamebasisfor2011.

R’000 Equity Profit or loss

30 June 2012USD (4 997) 4 997EUR (377) 377

30June2011USD (6528) 6528EUR 171 (171)

A10%weakeningof theZARagainst the above currencies at 30 Junewouldhavehad the equal butoppositeeffectontheabovecurrenciestotheamountsshownabove,onthebasisthatallothervariablesremainconstant.

A10%strengtheningof theZARagainst the followingcurrenciesat30Junewouldhave (increased)/decreasedequityandprofitor(loss)bytheamountsshownbelow.Thisanalysisassumesthatallothervariables,inparticularinterestrates,remainconstant.Theanalysisisperformedonthesamebasisfor2011.(Includesforeigngainsorlossesexposureoninter-groupforeigncurrencyloans).

R’000 Equity Profit or loss

30 June 2012USD (12 176) 5 131AUD 12 652 306EUR 10 312 382CAD (122) 122TRY 140 (140)PESO 53 (53)

30June2011USD (10655) 6603AUD 7996 170EUR 10086 (171)CAD 94 (94)TRY – –PESO – –

81

A10%weakeningof theZARagainst the above currencies at 30 Junewouldhavehad the equal butoppositeeffectontheabovecurrenciestotheamountsshownabove,onthebasisthatallothervariablesremainconstant.

Interest rate risk

Profile

Carrying amount

2012 2011

Fixed rate instrumentsFinancialliabilities (254 000) (104691)

(254 000) (104691)

Variable rate instrumentsFinancialassets 121 270 88827Financialliabilities (53 219) (201939)

68 051 (113112)

Fair value sensitivity analysis for fixed rate instruments

TheGroupdoesnotaccountforanyfixedratefinancialassetsandfinancialliabilitiesatfairvaluethroughprofitorloss,andtheGroupdoesnotdesignatederivatives(interestrateswaps)ashedginginstrumentsundera fairvaluehedgeaccountingmodel.Thereforeachange in interestratesat thereportingdatewouldnotaffectprofitorloss.

Cash flow sensitivity analysis for variable rate instruments

A change of 100 basis points in interest rates at the reporting date would have increased/(decreased)equityandprofitorlossbytheamountsshownbelow.Thisanalysisassumesthatallothervariables,inparticularforeigncurrencyrates,remainconstant.Theanalysisisperformedonthesamebasisfor2011.

Loss or profit Equity

100 bpincrease

100 bpdecrease

100 bpincrease

100 bpdecrease

30 June 2012

Variable rate instruments 681 (681) – –Cash flow sensitivity (net) 681 (681) – –

30June2011

Variablerateinstruments (1131) 1131 – –Cashflowsensitivity(net) (1131) 1131 – –

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ANNExURE 7

INTERIM FINANCIAL RESULTS OF GIJIMA FOR THE SIx MONTHS ENDED 31 DECEMBER 2011 AND 31 DECEMBER 2012

The consolidated interim financial results of Gijima for the six months ended 31 December 2011 and31 December2012issetoutbelow.TheannualfinancialstatementsofGijimaforthelastthreefinancialperiodshavebeenauditedbyKPMGInc.Anunqualifiedauditopinionwasissuedinallthreeperiods.TheunauditedfinancialstatementsfortheinterimfinancialresultsofGijimaforthesixmonthsended31December2011and31 December2012willbeavailableforinspectionasdescribedinparagraph13ofthisCircular.

ThisreportoninterimfinancialresultsistheresponsibilityoftheDirectorsofGijima.NomaterialfactorcircumstancehasoccurredbetweenthelatestinterimfinancialresultsofGijimaandtheLastPracticableDate.

No adjustments concerning the correction of fundamental errors or application of changes in accountingpolicieshavebeenmadeinpreparingthereportofhistoricalfinancialinformation.Non-materialadjustmentshavebeenmadeforcomparativepurposesonly.Therehavebeennosubsidiaries,foreignsubsidiariesincluded,whosefinancialreportswerenotcompletedaccordingtoIFRS.

83

GIJIMA GROUP LIMITEDCondensed consolidated income statement for the period ended 31 December 2012

Unaudited31 December

2012(6 months)

R’000

Restated31December

2011(6months)

R’000

Restated30June

2012(12months)

R’000

Continuing operationsRevenue 911 207 1186508 2219239Otheroperatingincome 400 2636 8621

Income 911 607 1189144 2227860

(Loss)/Earnings before interest, tax, depreciation and amortisation charges (EBITDA) (100 260) 56742 (26319)

EBITDAbeforereclassificationofnetinvestment (97 764) 56742 (26319)Reclassificationofcurrencytranslationonnetinvestments (2 496) – –

Depreciationandamortisationcharges (23 100) (23356) (45777)

Operating (loss)/profit (123 360) 33386 (72096)

Financialincome 1 010 3670 6353Financialexpenses (19 476) (15730) (29314)

Net financial expense (18 466) (12060) (22961)

(Loss)/Profit before tax (141 826) 21326 (95057)Incometax 35 621 (8387) 25444

(Loss)/Profit for the period from continuing operations (106 205) 12939 (69613)

Discontinued operationsProfit from discontinued operation, net of tax 82 471 15628 19023

Netlossbeforereclassificationofcurrencytranslationofnetinvestmentsandprofitondisposalofbusiness 9 529) 15628 19023Profitondisposalofbusiness 63 479 – –Reclassificationofcurrencytranslationofnetinvestmentsduetodisposalofbusiness 41 332 – –Taxeffectonadjustments (12 811) – –

(Loss)/Profit for the period (23 734) 28567 (50590)

Total (loss)/profit attributable to:Ownersoftheparent (24 411) 29800 (50785)Non-controllinginterest 677 (1233) 195

(23 734) 28567 (50590)

Weighted average number of shares (000’s) 961 565 961565 961565Diluted number of shares (000’s) 961 565 961565 961565Number of shares in issue (000’s) 961 565 961565 961565Earnings per shareBasic earnings/(loss) per ordinary share (cents) (2.54) 3.10 (5.28)Diluted earnings/(loss) per ordinary share (cents) (2.54) 3.10 (5.28)Headline earnings/(loss) per ordinary share (cents) (10.58) 3.11 (5.27)Diluted headline earnings/(loss) per ordinary share (cents) (10.58) 3.11 (5.27)

84

Unaudited31 December

2012(6 months)

R’000

Restated31December

2011(6months)

R’000

Restated30June

2012(12months)

R’000

Calculation of headline earnings/(loss)Profit/(Loss)attributabletoownersoftheparent (24 411) 29800 (50785)Profitondisposalofbusiness (63 479) – –Reclassificationofcurrencytranslationonnetinvestments (38 836) – –Taxeffectofreclassificationonnetinvestments 24 819 – –Lossonsaleofproperty,plantandequipment 199 175 168Taxeffect (56) (49) (47)

Headline earnings/(loss) (101 764) 29926 (50664)

Earnings per share – continuing operations(Loss)/Profit attributable to:Ownersoftheparent (106 882) 14172 (69808)Non-controllinginterest 677 (1233) 195

(106 205) 12939 (69613)

Basic (loss)/earnings per ordinary share (cents) (11.12) 1.47 (7.26)Diluted (loss)/earnings per ordinary share (cents) (11.12) 1.47 (7.26)Headline (loss)/earnings per ordinary share (cents) (9.59) 1.49 (7.25)Diluted headline (loss)/earnings per ordinary share (cents) (9.59) 1.49 (7.25)

Calculation of headline (loss)/earnings(Loss)/profitattributabletoownersoftheparent (106 882) 14172 (69808)Reclassificationofcurrencytranslationonnetinvestments 2 496 – –Taxeffectonreclassificationonnetinvestments 12 009 – –Lossonsaleofproperty,plantandequipment 188 152 98Taxeffect (53) (43) (27)

Headline (loss)/earnings (92 242) 14281 (69737)

85

GIJIMA GROUP LIMITEDCondensed consolidated statement of comprehensive income for the period ended 31 December 2012

Unaudited31 December

2012R’000

Unaudited31December

2011R’000

Audited30June

2012R’000

(Loss)/Profit for the period (23 734) 28567 (50590)OthercomprehensiveincomeCurrencytranslationdifferencesforforeignoperations 39 361 2849 2844Currencytranslationonthenetinvestmentsforforeignoperations 13 342 10861 11496Reclassificationsofcurrencytranslationoninvestmentsforforeignoperations (39 190) – –Revaluationofproperty,plantandequipment – – 3839Incometaxonothercomprehensiveincome (452) (4925) (34)

Total comprehensive (loss)/income for the period (10 673) 37352 (32445)

Total comprehensive (loss)/income attributable to(Loss)/Profitattributabletoownersoftheparent (11 350) 38585 (32640)Profit/(Loss)attributabletonon-controllinginterest 677 (1233) 195

(10 673) 37352 (32445)

Notes to the condensed consolidated financial statements

1. Statement of compliance

ThecondensedGroupinterimfinancialstatementsarepreparedandpresentedinaccordancewiththeJSELimitedListingsRequirements;theCompaniesAct(Act71of2008);andtherecognitionandmeasurementrequirements of International Financial Reporting Standards and the presentation and disclosurerequirementsofInternationalAccountingStandard34andtheFinancialReportingGuideasissuedbytheAccountingPracticesCommitteeofSAICA,oftheGroup’sunauditedfinancialstatements.

Thesecondensedconsolidatedfinancialstatementsdonotincludealloftheinformationrequiredforfullannualfinancialstatements,andshouldbereadinconjunctionwiththeconsolidatedfinancialstatementsoftheGroupasatandfortheyearended30June2012.

ThecondensedconsolidatedfinancialstatementshavebeenpreparedbyPierreJoubertCA(SA),theGroupManager,FinancialAccounting.

ThesecondensedconsolidatedannualfinancialstatementswereapprovedbytheBoardofDirectorson20 February2013.

2. Significant accounting policies

TheaccountingpoliciesappliedbytheGroupinthesecondensedconsolidatedinterimfinancialstatementsarethesameasthoseappliedbytheGroupinitsconsolidatedfinancialstatementsasatandfortheyearended30June2012.

86

3. Operating profit/(loss)

Thefollowingmaterialitemshavebeenincludedinthecalculationofoperatingprofit

Unaudited31 December

2012R’000

Unaudited31December

2011R’000

Audited30June

2012R’000

Continuing operationsExchangerategains/(losses)ontranslationofforeigncurrency 532 (8503) (8972)Exchangeratelossesonreclassificationofcurrencytranslationonnetinvestments (2 496) – –Reversalofanaccrual – 35970 35970Lossonsaleofproperty,plantandequipment (188) (152) (98)

Discontinued operationsExchangeratelossesontranslationofforeigncurrency (1 063) (1006) (2605)Exchangerategainsonreclassificationofcurrencytranslationonnetinvestments 41 332 – –Profitondisposalofbusiness 63 479 – –Lossonsaleofproperty,plantandequipment (11) (23) (70)

101 585 26286 24225

4. Disposal of subsidiaries

InNovember2012theGijimasolditsminingtechnologyandconsultingbusinesses(MineRPBusinesses).The MineRP Businesses was not classified as held for sale or as a discontinued operation at 30 June2012, and the comparative condensed consolidated income statement has been restated to show the discontinued operation separately from the continuing operations.TheBoardandExecutiveCommitteecommittedtoaplantoselltheMineRPbusinessesearlyinthe2013financialyearandwassubjecttokeyapprovalsforthesaletobevalidsuchastheCompetitionCommissionandJSEapproval.Allapprovalswerecompleted9November2012.

Effect of discontinued operation on the condensed consolidated

Income statement:

Revenue 86 017 150117 310829Expenses (102 568) (129945) (287826)

Results from operating activities (16 551) 20172 23003Netfinancialincome 107 502 771

Results from operating activities, after financial expenses (16 444) 20674 23774Taxation 6 915 (5046) (4751)

Results from operating activities, net of tax (9 529) 15628 19023Gainonsaleofbusiness 63 479 – –Reclassificationofcurrencytranslationonnetinvestments 41 332 – –Taxationonreclassificationofnetinvestments (12 811) – –

Profit for the year 82 471 15628 19023

Basic earnings/(loss) per ordinary share (cents) 8.58 1.63 1.98Diluted earnings/(loss) per ordinary share (cents) 8.58 1.63 1.98Headline (loss)/earnings per ordinary share (cents) (0.99) 1.63 1.98Diluted headline (loss)/earnings per ordinary share (cents) (0.99) 1.63 1.98Cash flows from discontinued operations:Netcashgeneratedfromoperatingactivities 15 559 31460 8315Netcashgeneratedfrom/(usedin)investingactivities 151 134 (3275) (5803)

Effect on cash flows 166 693 28185 2512

87

Effect of discontinued operation on the condensed consolidated

Statement of financial position:

Audited30 June

2012R’000

Property,plantandequipment (7121)Intangibleassets (1387)Deferredtaxassets (5169)Inventories (757)Tradeandotherreceivables (48257)Currenttaxassets (7071)Cashandcashequivalents (22679)Deferredtaxliabilities 70Tradeandotherpayables 31618Currencytranslationdifferences (50768)

Net assets and liabilities (111521)

Considerationreceived,satisfiedincash 175000Cashandcashequivalentsdisposedof (22679)

Netcashinflow 152321

Considerationreceived 175000Netassetsandliabilities (111521)

Profitondisposalofbusiness 63479

Recyclingofnetinvestmentondisposalofbusiness 41332Profitbeforetaxondisposalofbusiness 104811Taxonrecyclingofnetinvestmentondisposalofbusiness (12811)

Profit on disposal of business 92000

5. Contingent liabilities

At31December2012 theGrouphadcontingent liabilities inrespectofregisteredperformancebonds,bankleaseandotherguaranteestothevalueofR17.5million(June2012:R28.8million).

6. Segment analysis

From 1 July 2012 Gijima formally changed to a new reporting structure which comprises of mainlySystemEngineeringandServiceswhichisachangefrompreviouslyreportedProfessionalandManagedServices.Asaresultthesegmentalanalysishavebeenrestated.

88

GIJIMA GROUP LIMITEDCondensed consolidated segmental analysis for the period ended 31 December 2012

Unaudited31 December

2012R’000

Restated31December

2011R’000

Restated30June

2012R’000

RevenueSystemsEngineering 109 280 278269 431593Services 569 012 738480 1433171DiscreteSolutions 240 789 183529 381557MineRPBusinesses 86 017 150117 310829

1 005 098 1350395 2557150Eliminationofdiscontinuedoperations (86 017) (150117) (310829)Internalrevenueadjustment (7 874) (13770) (27082)

Consolidated revenue 911 207 1186508 2219239

Segment resultsSystemsEngineering (132 853) (574) (60061)Services 8 591 54352 21156DiscreteSolutions 21 753 11891 29407MineRPBusinesses 82 335 11422 901

MineRPBusinessessegmentresults (22 476) 11422 901Reclassificationofcurrencytranslationonnetinvestmentsaspartofdisposalofbusiness 41 332 – –Profitondisposalofbusiness 63 479 – –

Consolidatedsegmentresults (20 174) 77091 (8597)Discontinuedoperations (89 323) (21178) (25608)

Eliminationofdiscontinuedoperations 15 488 (21178) (25608)Eliminationofreclassificationofcurrencytranslationonnetinvestmentsaspartofdisposalofbusiness (41 332) – –Eliminationofprofitondisposalofbusiness (63 479) – –

(109 497) 55913 (34205)Unallocatedexpenses (32 329) (34587) (60852)

Othercorporateexpenses (11 899) (14024) (28919)Reclassificationofcurrencytranslationofnetinvestments (2 496) – –Exchangerategains/(losses)ontranslation 532 (8503) (8972)Netfinancialexpense (18 466) (12060) (22961)

Consolidated (loss)/profit before tax of continuing operations (141 826) 21326 (95057)

89

GIJIMA GROUP LIMITED

Condensed consolidated statement of financial position as at 31 December 2012

Unaudited31 December

2012R’000

Unaudited31December

2011R’000

Audited30June

2012R’000

ASSETS

Non-current assets 401 538 354450 408276

Property,plantandequipment 77 013 84657 89828Intangibleassets 131 245 147965 141799Tradeandotherreceivables – – 18213Deferredtaxassets 193 280 121828 158436

Current assets 550 690 820538 696535

Inventories 39 195 27602 34459Tradeandotherreceivables 421 988 591857 539887Currenttaxassets 436 187 919Cashandcashequivalents 89 071 200892 121270

Total assets 952 228 1174988 1104811

EQUITY AND LIABILITIES

Equity attributable to owners of the parent 221 552 304370 232902

Non-controlling interest (2 333) (4438) (3010)

Non-current liabilities 336 677 225499 371887

Interest-bearingliabilities 256 501 152291 301980Operatingleaseliability 18 697 20761 19336Amountsduetovendors – 1019 –Deferredtaxliabilities 61 479 51428 50571

Current liabilities 396 332 649557 503032

Tradeandotherpayables 365 378 480809 464359Short-termborrowings – 150000 –Operatingleaseliability 2 066 5294 4451Provisions 28 888 2158 28020Bankoverdrafts – 1792 4235Amountsduetovendors – 1613 1967Currenttaxliabilities – 7891 –

Total equity and liabilities 952 228 1174988 1104811

90

GIJIMA GROUP LIMITED

Condensed consolidated statement of cash flows for the period ended 31 December 2012

Unaudited31 December

2012R’000

Unaudited31December

2011R’000

Audited30June

2012R’000

Cash flows from operating activities

Cashgenerated(usedin)/fromoperationsbeforeworkingcapitalchanges (114 101) 94293 36120Workingcapitalchanges 21 866 42521 48014Netfinancialexpense (25 051) (11276) (13690)

Interestreceived 1 169 4522 7214Interestpaid (26 220) (15798) (20904)

Dividendpaid – – –Taxpaid (5 898) 10866 3300

Netcash(usedin)/generatedfromoperatingactivities (123 184) 136404 73744

Cash flows from investing activitiesPurchaseofintangibleassets (1 097) (3433) (7577)Purchaseofproperty,plantandequipment (8 610) (18222) (33172)Decreaseinamountsduetovendors (1 915) (1686) (1686)Proceedsfromthedisposalofbusiness 175 000 – –Cashandcashequivalentsfromdisposalofbusiness (22 679) – –

Netcashgeneratedfrom/(usedin)investingactivities 140 699 (23341) (42435)

Cash flows from financing activitiesRepaymentofshort-termborrowings (479) (438) (150749)Repaymentofinterest-bearingborrowings (45 000) – –Increaseinshort-termloans – – 150000Increaseinfinanceliability – – –

Netcash(usedin)/generatedfromfinancingactivities (45 479) (438) (749)

Net increase/(decrease)in cash and cash equivalents (27 964) 112625 30560Cash and cash equivalents at the beginning of the year 117 035 86475 86475

Cash and cash equivalents at the end of the period 89 071 199100 117035

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92

ANNExURE 8

INFORMATION ON THE DIRECTORS AND SENIOR MANAGEMENT OF GIJIMA AND ITS MAJOR SUBSIDIARIES

NON-ExECUTIVE DIRECTORS OF GIJIMA

Robert Wellington GumedePosition Non-executiveChairmanAppointed May2005Age 49Nationality SouthAfricanBusiness address GumaHouse,54PeterPlaceRoad,PeterPlaceOfficePark,Bryanston,2191Qualification BJurisExperience In 1992, Robert moved to Johannesburg where he assumed several key

positions: Business Development Director for Africa at Sukhulu Holdings(Proprietary)Ltd (1992-1994),BusinessDevelopmentExecutiveatLTALtdandDirectorofLTABuilding(Proprietary)LtdandLTAHousing(Proprietary)Ltd (1994-1996). The business industry and its leadership acknowledgedRobert’s remarkable ability as a strategist, salesman and entrepreneur bynominatingandvotinghimastheSouthAfricanChapterrunner-upcandidatefortheWorldEntrepreneuroftheYear2005.

Other directorships in the past five years

AmitrixInvestments;BlackInvestorGroup;Conymanzi;Conytrix;Conyvision;Conywiz; Duozone Investments; Four Rivers Trading 21; Gamele Trading;Gentechnologies; Gijima Group; Gijima Holdings; Gradocel; Grazipoint;GumaAfrikaConsulting;GumaCapital;GumaGroup;GumaIncentiveTrust;GumaInvestmentHoldings;GumaPrepaidServices;GumaPropertyHoldings;Guma Resources; Guma Smart Card Technologies; Guma Support; GumaTech; Guma Tech Group; Keni Afrika Properties; Kismet Investments 57;Magnolia Ridge Properties 29; Melody Street Trading 63; Mentor TradingAnd Investment 103; Mezotype; Moxirex; Nicha Beleggings; PrimetimeTrading 6; Prostart Properties 74; Ramistax; Rotifield (Rf); SheshisaInvestmentHoldings;Tarowiz;UnityFireTrading11;Volubiz;Volubyte;YeboGumaInvestments;andYesGroup.

Ashwin Hirjee TrikamjeePosition IndependentNon-executiveDirectorAppointed August2010Age 68Nationality SouthAfricanBusiness address 7TorsvaleCrescent,LaLuciaRidgeOfficeEstate,Durban,4319Qualification BJurisExperience Ashwinhasservedasanon-executivedirectorofSAPostOfficeLtdaswellas

theSABC.Hehasbeenapractisingattorneysince1974andhasactedasahighcourtjudgeonmanyoccasionsintheHighCourtofSouthAfrica.

Other directorships in the past five years

SouthAfricanBroadcastingCommissionSOCLtd;KZNGaming&Betting;OldMutualLifeAssuranceCompany(SA)Ltd;OldMutualHoldings(SA)Ltd;GijimaGroupLimited;GijimaHoldings(Pty)Ltd;andG10Investments(Pty)Ltd.

93

Jacobus Carolus Lodewiekus van der WaltPosition IndependentNon-executiveDirectorAppointed April1999Age 71Nationality SouthAfricanBusiness address 61RiverlaneRoad,101JohanRissikDrive,170Waterkloofrif,0181Qualifications BScEngineering(Industrial)Experience Jac’scareerof35yearsinthesteelandminingindustrystartedinIndustrial

Engineering and he was later part of the initial team responsible for theplanning and building of the Newcastle Steel Plant of Iscor Ltd. He thenmovedtothePretoriaSteelWorksheadingtheManagementServicesDivisionresponsible for long-term business planning, organisation development,productivityimprovement,materialsprocurementandlogistics,productionscheduling and industrial engineering. His last 10 years at Iscor he wasGeneralManager,InformationManagement,fortheGroup,responsiblefortheITservicesoftheGroup,includingtheroleofChiefInformationOfficer.HewasresponsibleforcommercialisingtheITDivisionwhichwaslaterlistedasASTLtd.HewasalsoamemberoftheIscorGroupExecutiveCommittee.

Other directorships in the past five years

MukhanyoTheologicalCollege.None

Andrew Fana Bambaphansi MthembuPosition IndependentNon-executiveDirectorAppointed June2005Resigned May2013Age 57Nationality SouthAfricanBusiness address 75GraystonDrive,SandtonQualifications BSc (Chemistry, Biology), BSc (Civil Engineering), MSc (Construction

Management),AdvancedManagementProgramme(AMP)andtheExecutiveManagementProgramme(EMP)

Experience AndrewhasheldthepositionofManagingDirectorofVodacom(Pty)LtdandVodacom International (Pty) Ltd for three years. He has also worked as aspecialICTAdvisortotheMinisterofPublicEnterprisesadvisingtheMinisterontherationalisationofICTinthestateownedenterprises.Andrewhasalsoheld a number of senior management positions in various companies,including,Tolcon,Otis,DevelopmentBankofSouthAfrica(DBSA)andtheMinistryofWorksandCommunication(Swaziland).

Other directorships in the past five years

Gijima Group Limited; Egoliwood Studios (Pty) Ltd; Johannesburg ExpoCentre (Pty) Ltd; Friedshelf 1049 (Pty) Ltd; Garmap (Pty) Ltd; GarminDistributionAfrica(Pty)Ltd;BRASAAdvisoryServices(Pty)Ltd;LinkafricaGroup(Pty)Ltd;H2ONetworksSouthAfrica;Linkafrica(Pty)Ltd;ImphandzeMarine(Pty)Ltd;ImphandzeMarineLogistics(Pty)Ltd;ImphandzeShipping(Pty)Ltd;ImphandzeSubtelServices(Pty)Ltd.

94

Malcolm MacdonaldPosition IndependentNon-executiveDirectorAppointed April1999Age 71Nationality SouthAfricanBusiness address 37DawsAvenue,Bedfordview,2008Qualifications BCom,CA(SA),ACIMAExperience MalcolmhasbeenaDirectorofAstralfoodsandGijimasincebefore2008and

adirectorofArcelorMittalSouthAfricasinceFebruary2010.Hewasalsoadirector of Coris Capital (a pension fund administrator and now part ofSanlam)untilFebruary2012.

Other directorships in the past five years

ArcelorMittal South Africa; Astral Foods; Coris Capital; Gijima Holdings;CorisCapitalHoldings.

Mark BussinPosition Independentnon-executiveDirectorAppointed March2012Age 50Nationality SouthAfricanBusiness address 12BoltonRoad,CornerSussex,Rosebank,2196Qualifications BSc,HDPM,MM,MCom,DComExperience Over 20 years’ remuneration and HR experience in executive positions in

multinational companies and in consulting organisations; immediate pastchairpersonofSMSRemunerationpanelfortheDepartmentofPublicServiceAdministration. Fellow of Institute of People Management (IPM), MasterPractitioner of SABPP (SA Board of People Practices), Global RewardPractitionerandTutorforWorldatWorkacrosstheglobe.

Other directorships in the past five years

Gijima Holdings; 21st Century Pay Solutions; 21 Century Pay SolutionsGroup; Blair Business Solutions; Cell-Bet Marketing Concepts; Servimark121;VIPHospitalitySolutions;WhiteCollarRenovations;andRegnum.

Victoria Nolitha FakudePosition FormerIndependentnon-executiveDirectorAppointed November2010Resigned March2013Age 49Nationality SouthAfricanBusiness address 1SturdeeAvenue,Rosebank,2196Qualifications BA(Hons)inPsychologyExperience Nolitha is an Executive Director of Sasol Limited and is responsible for

sustainability and business transformation. Her portfolio includes groupstrategyandpublicpolicyandregulatoryaffairs,grouphumanresources,Sasolsharedservicesandgroupstakeholderrelations.BeforejoiningSasolshe was a member of the group executive committee at Nedbank GroupLimited.ShewasalsodirectorofHarmonyGoldMiningCompanyLimited,BMFInvestmentLimitedandWoolworthsHoldingsLimited.SheisaformerNationalPresidentoftheBlackManagementForum(BMF).

Other directorships in the past five years

SasolGasLtd;SasolGroupServices(Pty)Ltd;SasolMining(Pty)Ltd;SasolMiningHoldings(Pty)Ltd;SasolNewEnergyHoldings(Pty)Ltd;SasolOil(Pty) Ltd; Sasol Chemical Industries Limited; Sasol Synfuels (Pty) Ltd;Free FallTrading178(Pty)Ltd;LosikaTrading(Pty)LtdandHuntrex192(Pty) Ltd.

95

John MillerPosition FormerIndependentnon-executiveDirectorAppointed October2000Resigned February2013Age 72Nationality SouthAfricanBusiness address RetiredQualification AEPExperience John joinedwhat became the IT industry in1961.Hehas extensive sales,

marketingandgeneralmanagementexperienceintheICTindustry.Hehelda position as Managing Director of Unisys Africa, Executive Director ofUnidata, Managing Director of Compusons and National Sales Director ofICL.HewasappointedatASTasMarketingDirectorin2001andthenlaterasChiefExecutiveOfficer(CEO)ofASTinDecember2002.HeretiredasCEOon1July2007andjoinedtheBoardofDirectorsasaNon-executiveDirectoruntilFebruary2013.

Other directorships in the past five years

A-finCapital;AfrodizzyLeisure;ASTAbraxasITSolutions;ASTDistributedTechnology Services; AST Enterprise Hosting; AST Enterprise SolutionsManagement; Bentley West Strategic Consulting; Business and DesignSoftware;CMSProcessPerformanceImprovementSolutions;CortechSales;GijimaHoldings;ModjadjiLodge;andUnisysAfricaLimited.

ExECUTIVE DIRECTORS OF GIJIMA

Eileen WiltonPosition InterimChiefExecutiveOfficerAppointed June2012Age 53Nationality SouthAfricanBusiness address 47LandmarksAvenue,Kosmosdal,Samrand,0057Qualifications BCom(Hons),TTHDEHigherDiplomainEducationExperience EileenheldtwoCIO(ChiefInformationOfficer)positionsatlargeinternational

companies,namelyAngloAmericanandOldMutualSouthAfrica.Atthesecompanies she was responsible for developing and implementing their ITstrategies and all aspects of ICT service delivery. In addition she wasresponsibleforglobalICTsourcingarrangementsandsignedin2007whatwas then South Africa’s largest ICT service outsource deal between OldMutual, Mutual & Federal and T-Systems. She also worked as principalconsultantforvariousconsultingcompaniesdevelopingICTstrategiesandGovernance models, as well implementing SAP programmes. Her currentresponsibilities at Gijima involve developing and delivering industrialisedservicedeliverycapabilities.In2009,shewasawardedtheWoman’sLeadershipaward.

Other directorships in the past five years

GlobalEdgeTechnologies(Pty)Ltd,awhollyownedsoftwarecompanyofOldMutual.Deliversthefundsupermarketplatform,forOldMutual’snon-SouthAfricancompanies.In2009,Eileenwasawardedaccoladesforbeingthebestfundsupermarketplatform.

96

Carlos Jorge Henriques FerreiraPosition ChiefFinancialOfficerAppointed May2005Age 42Nationality SouthAfricanBusiness address 47LandmarksAvenue,Kosmosdal,Samrand,0057Qualification BCom(Hons),MBAExperience CarlosholdsaBComm(Hons)degreeandanMBAfromManchesterBusiness

School and has worked in the corporate and merchant banking arena for12 yearsforinstitutionsincludingAbsa,StandardBankGroupLimitedandTA Bank Limited. He is experienced in not only traditional financialaccounting, but also in corporate banking, corporate finance and privateequity.Carlos was appointed at Guma to head up group finance and to assist incorporatefinanceactivities,includingtheassessmentofpotentialmergerandacquisitionopportunities.HewasappointedtheFinancialDirectorofGijimain2005afterthesuccessfulmergerofGijimaandAST,hewasinstrumentalinthefinancialturnaroundoftheCompany.Carlos is also responsible for the merger, acquisitions and finances of theGijimaGroup.Carlos has played a major role in the development and growth of Gijimabringingprudenceandfinancialdiscipline.

Other directorships in the past five years

Cast Arena Trade and Invest 112; Duozone Investments; Gradocel; GumaSupply Chain Management; Kismet Investments 57; Moxirex; PrimetimeTrading6;Ramistax;Rotifield;TourvestGroup;TourvestHoldings;Volubiz;Volubyte;MainStreet700;Baziphase;YeboGuma;GumaTech;GumaSupport;GumaInvestmentHoldingsandGumaTechGroup.

Jonas BogoshiPosition FormerChiefExecutiveOfficerAppointed July2007Resigned December2012Age 47Nationality SouthAfricanBusiness address 47LandmarksAvenue,Kosmosdal,Samrand,0057Qualification BScComputerScienceExperience JonasBogoshiwastheChiefExecutiveOfficerofGijimaGroupLimitedsince

2007,heresignedeffective31December2012.Hehasspent20yearsworkingforsomeofSouthAfrica’sleadingprivateandpublicsectorinformationandcommunicationtechnologyplayers.HehasworkedforbluechipcompaniessuchasIBMandCiscoSystems.

Other directorships in the past five years

DigitalPartnersSouthAfrica;BengBaMmeMining;EnsaladaInvestments504;GamoimaInvestmentHoldings;andGijimaHoldings.

SENIOR MANAGEMENT OF GIJIMA

Thandisizwe kopoloPosition ChiefClientOfficer:PublicServicesAppointed August2011Age 37Nationality SouthAfricanBusiness address 47LandmarksAvenue,Kosmosdal,Samrand,0057Qualification DiplomainSoftwareDevelopmentExperience Thandisizwehas15years’experienceinIT.Hehasextensiveexperiencein

thepublicsectorandstate-ownedenterprisespaceasaseniorconsultantinITnetworksandITsecurity,projectmanagement.HehasworkedfortheStateInformation Technology Agency, consulting and advising the criminal,justice and security cluster onall IT security relatedmatters.His currentresponsibilities involve managing a team of key account executives indevelopingandexecutingnewbusinessdevelopmentstrategieswithinvariousGijimakeyGovernmentaccounts.

Other directorships in the past five years

None

97

Michael FerreiraPosition ManagingExecutive,HumanResourcesAppointed May1999Age 49Nationality SouthAfricanBusiness address 47LandmarksAvenue,Kosmosdal,Samrand,0057Qualifications BCom(Hons)IndustrialPsychology,DiplomaLabourRelationsExperience Michael successfully held three Human Capital Director positions at top

SouthAfricancompanies,namelyDenel,EDSandGijima.Theseinvolvedthedevelopment,definition,andimplementationoftheHumanCapitalstrategy,as well as major people related projects such as SAP implementations,establishing Internal Communications and Learning Centers and theachievementoftransformationobjectivestobethemostempoweredcompanyintheICTsector.Inaddition,heimplementedvariousBusinessImprovementProgramsnecessarytoachievechangeonalargescale.Healsoestablishedemployeebenefit,supportandincentiveprogramsforvariousorganisations.

Other directorships in the past five years

None

Shane CooperPosition StrategyExecutionOfficerAppointed July2010Age 36Nationality SouthAfricaBusiness address 47LandmarksAvenue,Kosmosdal,Samrand,0057Qualifications Bcompt(Hons),PalladiumGraduateExperience 12 years in ICT, with extensive experience in the financial aspects of ICT

service delivery. Significant experience in business turnaround activities,alongwithstrategyformulation,planninganddevelopment.FouryearswithKPMG

Other directorships in the past five years

None

Ulli ReynekePosition ChiefClientOfficer:FinancialServicesAppointed June2012Age 55Nationality SouthAfricanBusiness address 47LandmarksAvenue,Kosmosdal,Samrand,0057Qualifications BScComputerScience,IBMInternationalCertifiedClientExecutiveExperience 31yearsofICTexperienceOther directorships in the past 5 years

Cornastone Consulting Group (Pty) Ltd; Cornastone Consulting (Pty) Ltd;Cornastone Software Solutions (Pty) Ltd; Cornastone Mobile Solutions(Pty) Ltd;CornastoneServices(Pty)Ltd.

98

Tony de SousaPosition ProductsExecutiveAppointed October2011Age 53Nationality SouthAfricanBusiness address 47LandmarksAvenue,Kosmosdal,Samrand,0057Qualification ACIS–InstituteofCharteredSecretariesandAdministratorsExperience Tonyhasover20years’experiencebuildingandleadinghighperformance

teams selling into the enterprise market, and developing new marketopportunities in Europe and North America, with focus on applicationdevelopment, cloud computing, mobility and convergence of emergingtechnologies.After18yearsabroad,TonyrelocatedbacktoSouthAfricainOctober2011andjoinedGijimaasExecutiveresponsibleforProductsanddevelopmentofMobility business. Tony is currently responsible for Gijima’s go-to-marketofferingsandstrategy.PriortoGijima,TonyheldanumberofseniorpositionsincludingEVPSalesatOutSystems,VPEMEAatSelectica,VPSalesatMotive,VPSalesNorthAmericaatSterlingSoftware,andErnest&Young.

Other directorships in the past five years

None

99

ANNExURE 9

ExTRACTS FROM THE MOI

13.1 Composition of the Board

TheBoardshallcomprisenot less than theminimumnumberofDirectorsrequired in termsof theCompaniesActbutalwayssubjecttotheminimumnumberofDirectorsrequiredintermsoftheListingsRequirements,being4(four)DirectorsasatthedateoftheadoptionofthisMOI.

13.2 Appointment of Directors

13.2.1 Election by Shareholders

Subjecttoarticle13.2.4,alloftheDirectorsmustbeelectedbyShareholdersentitledtoexercisevotingrightsatanygeneralmeetingorannualgeneralmeeting(providedthatsuchmeetingmaynotbeconductedintermsofsection 60oftheCompaniesAct),ascontemplatedintheListingsRequirements, andShareholders shallhave the right tonominateanyperson for electionasaforesaid.

13.2.2 Eligibility or qualification criteria for Directors

Inadditiontosatisfyingthequalificationandeligibilityrequirementssetoutinsection 69oftheCompaniesAct,withoutlimitingtherightsofShareholdersandDirectorstoremoveaDirectorundercertaincircumstancesundertheCompaniesAct,aDirectororPrescribedOfficershallnotbeentitledtoremainservingasaDirectororaPrescribedOfficeroftheCompanyifheorsheisemployedwiththeCompanyintermsofanycontractofemployment,andsuchemploymentcontractisterminated.

13.2.3 Employment of Directors in other capacities

ADirectormaybeemployedinanyothercapacityintheCompanyorasaDirectororemployeeofacompanycontrolledby,oritselfasubsidiaryoftheCompany,inwhicheventtheappointmentand remuneration of such Director in respect of such other office must be determined by adisinterestedquorumofDirectors.

13.2.4 Board’s authority to fill a casual vacancy

13.2.4.1 The Board has the authority to appoint a person to fill a casual vacancy or as anaddition to the Board, subject to confirmation by Shareholders at the next annualgeneralmeetingoftheCompany,failingwhichtheappointedpersonmustvacatehisorheroffice.

13.2.4.2 TheCompanyingeneralmeetingmayfillthevacatedofficesbyelectingalikenumberofpersonstobeDirectors,andmayfillothervacancies.

13.2.5 Appointment of additional Directors to constitute prescribed minimum

ShouldthenumberofDirectorsfallbelowtheminimumnumberprovidedforinarticle0,theremainingDirectorsmustassoonaspossibleandinanyeventnotlaterthan3(three)monthsfrom thedate onwhich thenumberofDirectors fall below theprescribedminimum,fill thevacanciesorcallageneralmeetingforthepurposeoffillingthevacancies.ThefailurebytheCompanytohavetheminimumnumberofDirectorsprovidedforinarticle0ofthisMOIduringthe 3 (three) month period does not limit or negate the authority of the Board or invalidateanythingdonebytheBoardortheCompanyduringsuchperiod.Aftertheexpiryofthe3(three)monthperiod,theremainingDirectorsshallonlybepermittedtoactforthepurposeoffillingvacanciesorcallinggeneralmeetingsoftheCompany.

13.3 No life Directorships or Directorships for indefinite periods

LifeDirectorshipandDirectorshipsforanindefiniteperiodshallnotbeallowedintheCompany.

13.4 Rotation of non-executive Directors

13.4.1 Attheannualgeneralmeeting(providedthatsuchmeetingisnotconductedintermsofsection 60oftheCompaniesAct)heldineachyear1/3(one-third)ofthenon-executiveDirectors,oriftheirnumberisnotamultipleof3(three),thenthenumbernearestto,butnotlessthan1/3(one-third)ofthenon-executiveDirectors,shallretirefromoffice.

13.4.2 Thenon-executiveDirectorstoretireintermsof article0shallbethosewhohavebeenlongestinofficesincetheirlastelectionprovidedthat:

100

13.4.2.1 ifmorethanoneofthemwereelectednon-executiveDirectorsonthesameday,thosetoretireshallbedeterminedby lotunless thoseDirectorsagreeotherwisebetweenthemselves;

13.4.2.2 ifatanyannualgeneralmeetinganynon-executiveDirectorwillhaveheldofficefor3  (three) years sincehis orher election,he or she shall also retire at suchannualgeneralmeeting;

13.4.2.3 the length of time a non-executive Director has been in office shall, subject to theprovisionsofarticle 13.4.2.2,bereckonedfromthedateofhisorherlastappointmentasanon-executiveDirector;

13.4.2.4 ifanon-executiveDirectorisrequiredtoretireatanygeneralmeetingthenheorsheshall continue to be a non-executive Director until the election of Directors at thatmeetingisconcluded; and

13.4.2.5 a retiring non-executive Director may be re-elected, provided that they are eligibleforre-election,andtheBoard,throughthenominationcommittee,shouldrecommendeligibility,takingintoaccountpastperformanceandcontributionmade,providedthatthere-electionofanysuchnon-executiveDirectormaynotbeconductedintermsofsection 60oftheCompaniesAct.

13.8 Directors’ remuneration

Theauthority of theCompany topay remuneration to theCompany’sDirectors for their services asDirectorsoftheCompany,inaccordancewithaspecialresolutionapprovedbytheCompany’sShareholderswithintheprevioustwoyears,assetoutintheCompaniesActisnotamended.

13.9 Directors’ expenses

TheDirectorsmaybepaidalltheirtravellingandotherexpensesproperlyandnecessarilyincurredbytheminandaboutthebusinessoftheCompanyandinattendingmeetingsoftheBoardorcommitteesthereof,andifanyDirectorisrequiredbytheCompanytoperformanyservicesinadditiontohisorherservicesasaDirector,ortoresideabroad,orshallbespecificallyoccupiedabouttheCompany’sbusiness,suchDirectormaybeentitledtoreceivesuchremunerationasisdeterminedbyadisinterestedquorumofDirectorsintheirsolediscretion,whichremunerationmaybeinadditiontoorinsubstitutionforanyotherremunerationpayable,itbeingrecordedthattheCompanyisnotobligedtomakeanypaymentcontemplatedinthisarticle…

13.11 Borrowing powers

13.11.1FromtimetotimetheDirectorsmayborroworraiseforthepurposesoftheCompanysuchsumsastheydeemfit.

13.11.2TheDirectorsmayraiseorsecurethepaymentorrepaymentofsuchmoneysinsuchmanneranduponsuchtermsandconditionsinallrespectsastheythinkfit,andinparticularbymortgagebond.

13.11.3Thegrantingofspecialprivilegestoholdersofdebtinstruments,asdefinedinsection43(1)oftheCompaniesAct,suchasattendingandvotingatgeneralmeetingsandtheappointmentofDirectors,isprohibited.

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103

ANNExURE 11

CORPORATE GOVERNANCE

CORPORATE PRACTICE AND CONDUCT

We affirm our commitment to the principles of openness, integrity and accountability and to providingtimeous,relevantandmeaningfulreportingtoallstakeholdersassetoutintheKingReportonGovernanceforSouthAfrica,2009 (“King III”).During thepreviousfinancialyear, theaudit committee evaluated theGroup’sgovernanceprocessesandpracticesagainsttherecommendationsofKingIIIonbehalfoftheBoardinordertoidentifygapsandtoimplementappropriatemeasuresinordertoaddressthesegapswhereitbelievesthistobeinthebestinterestoftheCompany.

Theinformationbelowisbasedonthecurrentgovernancepracticesandprocesses.

STATEMENT OF COMPLIANCE

JSELimited

TheCompanyissubjectto,andremainscompliantwith,theListingsRequirementsoftheJSELimited.

KingReportonGovernanceforSouthAfrica,2009

Aspartofitscommitmenttogoodcorporategovernance,theCompanycontinuestoapplytherecommendationsascontainedinKingIIIandtoidentifyareaswheresuchapplicationcanbyenhancedinthebestinterestoftheCompany.

BOARD OF DIRECTORS

GijimahasaunitaryBoardstructurecomprisingofNon-executiveandExecutiveDirectors.ThemajorityofNon-executiveDirectorsareindependent.Assuch,thereexistsacleardivisionofresponsibilitiesatBoardleveltoensureabalanceofpowerandauthority,andnooneindividualhasunfetteredpowersofdecision-making.

TheBoard isresponsible fordirectingandcontrollingstrategyandactivitiesandforproviding leadershipand guidance to executive management in terms of an approved charter which delegates authority to theChiefExecutiveOfficer.TheBoardhasaformalcharterwhichsetsoutitsroleandresponsibilitiesinareassuchasethicalleadership,strategy,financialmanagement,riskmanagement,compliance,sustainabilityandgovernanceingeneral.ThecharteraddressesthespecificdutiesofindividualDirectorsbothintermsofthecommonlawaswellastheprovisionsoftheCompaniesActof2008.ImportantelementsofgoodgovernancethatarealsocoveredinthecharterincludetheroleoftheChairmanandtheChiefExecutiveOfficer,thefocusonstakeholderrelationships,theimplementationofaproperdelegationofauthorityandthecompositionandevaluationoftheBoardanditsvariouscommittees.TheBoardissatisfiedthat,fortheyearunderreview,ithascompliedwith thetermsofitscharter.

At30 June 2012,theBoardcomprisedtwoExecutiveDirectors(MessrsBogoshiandFerreira)andeightNon-executiveDirectors(MessrsGumede,Macdonald,Miller,Mthembu,VanderWaltTrikamjee,DrBussinandMsFakude).InviewofthefactthatthechairmanoftheBoard,MrRWGumede,isnotanindependentnon-executiveDirector,MrMthembahasbeenappointedtofulfiltheroleofLeadIndependentDirectorasrecommendedinKingIII.

AsfaraschangestotheBoardareconcernedduringtheperiodunderreview,MsZwane-Chikuraresignedwitheffectfrom2March2012.DrBussinwasappointedtotheBoardasanewIndependentnon-executiveDirectoronthesamedate.

TheNon-executiveDirectorsandIndependentnon-executiveDirectorscontributeanobjectiveandindependentviewpointonallmajordecisionprocessesandstandardsofconduct.TheCompanyprovidesaformalinductionprocessfornewlyappointedDirectors.TheofficesofChairmanandChiefExecutiveOfficerareseparated.TheRemunerationandNominationCommitteeassessestheperformanceoftheChairman,ChiefExecutiveOfficerandExecutiveDirectors.ThetermofofficeofExecutiveDirectorsis36months.

TheBoardmeetsquarterlywhenpracticallypossible,withadditionalmeetingswhennecessary,andalthoughspecificauthorityhasbeendelegatedtoBoardcommitteesandmanagementasappropriate,theBoardretainsfullandeffectivecontrolovertheCompanyandmonitorsmanagement’simplementationoftheBoard’sapprovedplansandstrategy.

AsaresultofthehighlevelofactivityduringtheperiodunderreviewanumberofspecialBoardmeetingshadtobecalledatshortnoticeresultinginnotallDirectorsbeingabletoattendeverymeeting.ThefollowingBoardmeetingswereheldduringtheperiod1July2012to3April2013:

104

03/08/2012

21/08/2012

24/08/2012

20/09/2012

01/10/2012

25/10/2012

23/11/2012

18/02/2013

20/02/2013

28/02/2013

13/03/2013

22/03/2013

18/04/2013

S v

Tel

econ

S B

oard

S v

Tel

econ

S B

oard

S v

Tel

econ

S v

Tel

econ

S v

Tel

econ

Str

at

Ses

s

S B

oard

MemberGumedeRW P A P P P P P P P A P A P

BogoshiPJ P P P P R R R R R R R R R

VanderWaltJCL P P P P P P P P P P P P P

FerreiraCJH P P P P A P P P P P P P P

MacDonaldM P P P P P P P P P P P P P

MillerJE P P P P P P R R R R R R R

MthembuAFB P P P A P P P P P P P P P

TrikamjeeAH P P P P P P P P P P A P P

FakudeNV A P A P P A P# A A P P R R

MBussin A P P P A P P P P A P P A

WiltonEA N/A N/A N/A N/A N/A P P P P P P P P

key:

P------------------- Present

A------------------- Apology

R------------------- Resigned

N/A---------------- Notapplicable

P#------------------- Viatelephone

*--------------------- Partofthemeeting

SvTelecon------ SpecialMeetingviaTelecon

SBoard----------- SpecialBoardMeeting

StratSess------- StrategicSession

AllDirectorshaveaccesstotheservicesandadviceoftheCompanySecretaryandareentitledtoseekindependentprofessionaladviceattheCompany’sexpense.TheBoardhasunrestrictedaccesstoallinformation,documentsandproperty.AllDirectorsareprovidedwithappropriateandtimelyinformation,includingdetailedBoardpackspriortoallBoardandBoardcommitteemeetings.

TheperformanceoftheBoardanditscommitteesisevaluatedonanannualbasis.Aftermakinguseoftheservicesofanexternalpartyduringthepreviousfinancialyear,theBoardconductedaself-assessmentprocessduringtheperiodunderreview.

IntermsofthememorandumofincorporationonethirdofDirectorsretireeveryyear,butifeligibletheymaybere-electedbyshareholdersattheannualgeneralmeeting.Atthelastannualgeneralmeeting(December2011),MessrsGumede,MacdonaldandMsFakudewerere-electedasDirectorstotheBoard.ItisproposedthatMessrsMiller,VanderWaltandMthemburetirebyrotationattheforthcomingannualgeneralmeeting.TheBoard,withtheassistanceoftheRemunerationandNominationsCommittee,hasassessedtheindependenceofallIndependentnon-executiveDirectorswithaparticularfocusonthoseDirectorswhohaveservedformorethan9years.TheBoardhassatisfieditselfthatallIndependentnon-executiveDirectors,notwithstandingtheirtermofoffice,havedisplayedtherequiredlevelofindependence.TheBoardfurthermorerecommendsthere-electionofDirectorsretiringbyrotationandconfirmsthatitissatisfiedwiththeperformance,contributionandobjectivityoftheDirectorsstandingforre-election.

BOARD COMMITTEES

Various Board committees have been established and operate within charters approved by the Board. TheBoardcommitteesarefreetotakeindependentoutsideprofessionaladvicewhenrequiredandattheexpenseoftheCompany.

At30June2012,theseBoardcommitteescomprised:

• AuditandRiskcommittee;

• Social,EthicsandTransformationcommittee;and

• RemunerationandNominationcommittee.

AUDIT AND RISk COMMITTEE

TheAuditandRiskCommitteecompriseofIndependentnon-executiveDirectorsonly.IntermsoftheAct,allmembersofthecommitteearerequiredtobeNon-executiveDirectorswhoactindependently.Thecommitteeisresponsibleformonitoringtheadequacyoffinancialcontrolsandreporting.Itischargedwith,interalia,reviewingtheauditplansoftheexternalandinternalauditors,ascertainingtheextenttowhichthescopeof

105

theauditscanbereliedupontodetectweaknessesininternalcontrolsandensuringthatinterimandyear-endfinancialreportsmeetacceptedaccountingstandards.TheAuditandRiskCommitteealsosetstheprinciplesforrecommendingtheuseof theexternalauditors fornon-auditservices.RegularmeetingsarescheduledandattendedbytheChiefExecutiveOfficer,ChiefFinancialOfficerandrepresentativesfromtheexternalandinternalauditors.ExternalandinternalauditorshavedirectaccesstotheChairmanoftheAuditandRiskCommittee.

Thefollowingpersonsweremembersasat30June2012:

MrMMacdonald ChairmanandIndependentnon-executiveDirector

MrJCLvanderWalt Independentnon-executiveDirector

MrAMthembu Independentnon-executiveDirector

All risk matters are addressed by the Audit and Risk Committee. In line with King III recommendationstheinternalauditfunctionreportsdirectlytotheAuditandRiskCommitteeandtheinternalauditcharterisauthorisedandapprovedbytheBoard.InternalaudithasaccesstothechairmanoftheAuditandRiskCommittee and the Board. The internal audit function reviews internal controls and makes appropriaterecommendationsviatheAuditandRiskCommitteetotheBoard.TheAuditandRiskCommitteerecommendstheriskreviewandriskevaluationtotheBoard.

During theperiod1July2012 to3April2013,meetingsof theAuditandRiskCommitteewereheldandattendedasfollows:

Member2012/09/19

2012/10/12S Meeting 2013/03/20

MMacDonald P P P

JCLVanderWalt P P P

AFBMthembu A A A

key:

P--------- Present

A--------- Apology

AsrequiredbytheJSEListingsRequirements,andrecommendedbyKingIII,thecommitteehassatisfieditselfwiththeappropriatenessandexpertiseoftheFinancialDirector,MrFerreira,andthefinancefunction.

RISk MANAGEMENT

TheBoardhasoverallresponsibilitytoprovideleadership,directionandoversightoverthedesign,developmentandoperationofriskmanagementstructures,processesandactivities.TheBoardalsodeterminesthelevelofriskitiswillingtomanageinthepursuitofgrowthandinmaximisingopportunities.TheAuditandRiskcommitteeassiststheBoardintheexecutionofitsfiduciarydutiesregardingriskmanagement,thescopeofwhichincludes:

• riskmanagementpolicyandframework;

• riskmanagementimplementationplanandprogressagainstit;

• riskmanagementinfrastructure,processesandculture;

• riskprofiling,mitigationandreporting;

• combinedassuranceactivities;

• stakeholderdisclosures;and

• riskmanagementeffectiveness.

Executivemanagement isresponsiblefordesigning, implementingandmonitoringthesystemandprocessof riskmanagement and its integration into theday-to-day activities of the company.Management is alsoaccountabletotheBoardforprovidingassurancethatithasfulfilleditsmandateandthemannerinwhichthishasbeendone.Executivemanagementconsidersbusinessriskswhensettingstrategicobjectives,approvingbudgets,contractingbalancedscorecardsandmonitoringprogressagainstbalancedscorecardsandbudgets.

Acorporateriskmanagementfunctionisresponsibletoassistwiththeidentification,assessing,mitigationandreportingofmaterialrisks.AnindependentHotlineserviceisalsoinplaceprovidingemployeeswithaconfidential,yeteffectivemeanstovoiceanyconcerns.

106

SOCIAL, ETHICS AND TRANSFORMATION COMMITTEE

Aspreviouslyreported,theNomination,TransformationandEthicscommitteewasreplacedbyaSocial,EthicsandTransformationcommitteeinAugust2011incompliancewiththestatutoryrequirementsascontainedintheCompaniesActof2008andtheCompaniesRegulations2011.ThisisaformalcommitteeoftheBoardwhichhasspecificpowersdelegatedtoitbytheBoard.

TheSocial,EthicsandTransformationcommitteehasadualrole:

• actingasa socialandethics committee for theGijimagroupof companiesas required in termsof theCompaniesActof2008;and

• monitoringtheGroup’sperformanceandprogressinrespectof itstransformationstrategies,plansandprocesses.

Regulation 43(5) to the Companies Act of 2008 spells out the functions of a social and ethics committee.A distinctionismadeforpurposesofthecharterofthecommitteebetweenthosefunctionswherethecommitteehasadirectlineofsightandthosewhichhavebeenallocatedtoothercommitteesoftheboardandwherethecommitteewillonly fulfilanoversightrole.Asrequired in termsof theAct, theCommitteeshallmonitortheactivitiesoftheCompanyandrelevantsubsidiaries,havingregardtoanyrelevantlegislation,otherlegalrequirementsorprevailingcodesofbestpractice, intheareasasprescribedbylaw.Theannualworkplanof thecommitteehasbeenupdated to include themonitoringof thoseaspects thatwerenotalreadybeingmonitoredbythecommitteepriortoitsreconstitution.

ThemembersoftheSocial,EthicsandTransformationcommitteeasat30 June 2012were:

MsNFakude ChairpersonandIndependentnon-executiveDirector

MrMMacdonald ChairmanandIndependentnon-executiveDirector

MrRWGumede Non-executiveDirector

MrJEMiller Non-executiveDirector

TheCommitteealsoassiststheBoardinimplementingandmonitoringtheblackeconomicempowermentandemploymentequityprogrammesandpolicies,directingaffirmativeprocurement initiatives,monitoringtheskillsdevelopmentpolicyandthedevelopmentofasocialresponsibilityprogramme.TheCommitteemandatedtheEmploymentEquityForum.TheForum,underthegovernanceoftheCommittee,focusesonallemploymentequity issues in compliancewith theEmploymentEquityAct (Act 55 of 1998).TheForum (comprisingofmembersrepresentingfemaleemployeesthroughoutalllevelsoftheorganisation)aimsatassistingGijimatoachieveitsstrategicbusinessobjectives.

Duringtheperiod1July2012to3April2013,meetingsoftheCommitteewereheldandattendedasfollows:

Member 18/09/2012

VNFakude PRWGumede AJEMiller PMMMacdonald P

key:P--------- Present

A--------- Apology

REMUNERATION AND NOMINATIONS COMMITTEE

TheRemunerationandNominationscommitteeisprimarilyresponsiblefor:

• formulatingremunerationstrategyandpoliciesandthetermsandconditionsofemploymentofexecutivedirectorsandseniorexecutives;and

• makingrecommendationstotheBoardontheappointmentofnewExecutiveandNon-executiveDirectors,includingrecommendationsonthecompositionoftheBoardgenerallyandthebalancebetweenexecutiveandNon-executiveDirectors.

ThenominationprocessitselfisformalandtransparentandamatterofconsiderationfortheBoardasawhole.ThecommitteeisalsoresponsibleforidentifyingandnominatingcandidatestofillBoardvacanciesandtoputsuccessionplansinplace

ThefollowingpersonsweremembersoftheRemunerationandNominationscommitteeasat30June2012:

MrAMthembu Independentnon-executiveDirector

MrJCLvanderWalt Independentnon-executiveDirector

MrRWGumede Non-executiveDirector

DrMHRBussin IndependentNon-executiveDirector

MrAHTrikamjee Independentnon-executivedirector

107

MeetingsoftheRemunerationandNominationscommitteetookplaceonthefollowingdates:

Member 11/09/2012 13/02/2013

AFBMthembu P PJCLvanderWalt P PMHRBussin P PRWGumede A AAHTrikamjee P P

key:

P--------- Present

A--------- Apology

ExECUTIVE COMMITTEE

Theday-to-dayrunningoftheCompanyisconductedbytheExecutiveCommittee,whichmeetsonamonthlybasisandconsistsofExecutiveDirectorsandseniormanagingexecutivesofdivisions. It isresponsibleforsettingthestrategicdirectionoftheCompany,forthestrategicmanagementofthecompanyandformonitoringtheimplementationthereofaccordingtotheBoard’sdirectives.

COMPANY SECRETARY

iThembaGovernanceandStatutorySolutions (Pty)Ltd,representedbyMsAnnamarievanderMerweactsasCompanySecretary.Theappointmentandremovalof theCompanySecretary isamatter for theBoard.All DirectorshaveaccesstotheadviceandservicesoftheCompanySecretary,whoisresponsibletotheBoardforensuringcompliancewithproceduresandregulationsofastatutorynature.FurthermoreallDirectorsareentitledtoseekindependentprofessionaladviceconcerningtheaffairsoftheCompanyandtheGroupattheCompany’sexpense.

The Company Secretary attends all Board and committee meetings, and has full access to employees,informationandresources.

TheBoardofDirectorshasnotedtherequirementtoannuallysatisfyitselfonthecompetence,qualificationsandexperienceoftheCompanySecretary,whichrequirementiseffectiveforannualreportandcircularsissuedafter1December2012.Suchannualassessmentwill formpartof the formalyear-endassessmentprocesswitheffectfromtheendofthecurrentfinancialyear.IntheinterimandforpurposesofthisCircular,theBoardwishestoconfirmthatitissatisfiedwiththecompetence,qualificationsandexperienceoftheCompanySecretary.iThembaGovernanceandStatutorySolutions(Pty)Limited,theappointedCompanySecretary,isrepresentedbyMsAnnamarievanderMerwe(BIuris,LLB,LLM)whohas23years’experienceasacorporatelawyerandcompanysecretaryinthelistedenvironment.SheisamemberoftheKingCommitteeaswellastheJSEAdvisoryCommittee.MsvanderMerweplaysanactiveandpivotalroleinprovidingguidancetotheBoardonmattersofcompliancetotheCompaniesActandallcorporategovernancematters.

SHARE DEALINGS

ThereareprocessesinplacetoensurethatnoDirectorsandofficersoftheCompanymaytradeintheCompany’ssharesduringaclosedperioddeterminedbytheBoard,intermsofaformalpolicy.

NoDirectororemployeemaydeal,whetherdirectlyorindirectly,inSharesonthebasisofunpublishedprice-sensitiveinformation.DirectorsandemployeesaresubjecttoanembargoontradinginSharesduringclosedperiodswhentheCompanyisoperatingunderacautionaryannouncementandintheperiodbetweenthecloseofannualandhalf-yearlyreportingperiodsandthepublishingofresults.

108 PRINTEDBYINCE(PTY)LTD REF.W2CF16117