AECI LIMITED
Incorporated in the Republic of South Africa
(Registration No. 1924/002590/06)
Share code:  AFE     ISIN No. ZAE000000220
(“AECI”)

1.Introduction

Shareholders of AECI (“Shareholders”) are referred to the following announcements released on the Securities Exchange News Service of the JSE Limited on 26 July 2011:

-the cautionary announcement relating to the proposed acquisition by AECI of the 25,1% equity interest in AECI’s explosives business, AEL Mining Services, held by an empowerment consortium led by Kagiso Tiso Holdings (Proprietary) Limited, in exchange for ordinary shares in AECI (“the KTH Transaction”); and

-the detailed cautionary announcement relating to the proposed new Broad-Based Black Economic Empowerment transaction to be undertaken by AECI involving employees and a community trust (“the New B-BBEE Transaction”).

2.The KTH Transaction

Shareholders are advised that a further announcement will be made upon the fulfillment of the conditions precedent relating to the KTH Transaction, which is expected to take effect by the end of November 2011. Accordingly, Shareholders are advised to exercise caution when dealing in AECI shares until a further announcement is made.

3.The New B-BBEE Transaction

Shareholders are advised that AECI is in the process of finalising the full terms of the New B-BBEE Transaction, including its salient dates and pro forma financial effects.  A further announcement setting out these full terms will be made in due course.  Accordingly, Shareholders are advised to exercise caution when dealing in AECI shares until a further announcement is made.

Woodmead
6 September 2011

Investment bank and transaction sponsor to AECI
Standard Bank

Legal advisors to AECI
Webber Wentzel

Corporate sponsor to AECI
RAND MERCHANT BANK (a division of FirstRand Bank Limited)