ABAGOLD SHARE-TRADING

Introduction

Since the conversion of Abagold to a public company in 2008, trade in its shares was facilitated by means of an “over the counter” (OTC) trading platform which was developed and hosted by a third party service provider, FNB Securities.

Following the introduction of the Financial Markets Act, No. 19 of 2012 (“Financial Markets Act“), the Financial Services Board (“FSB“) has taken the view that such OTC share trading mechanisms fall within the definition of an “exchange” and have to be licensed as such in terms of the Financial Markets Act. FNB Securities has indicated that it will not seek an exchange license, and as a result the board of Abagold (“Board“) had to suspend trading in Abagold shares on the OTC platform of FNB Securities with effect from 19 September 2014.

Abagold itself will not apply for an “exchange” license for trading in its shares, due to the costs involved and the onerous administrative burden that that would place on Abagold.

The Board however wishes to continue facilitating trade in Abagold shares in a manner that would not contravene the provisions of the Financial Markets Act. Accordingly, the Board has introduced an alternative procedure in terms of which Abagold will endeavour to put prospective purchasers and sellers into contact with one another for them to reach agreement on the sale and purchase (including the price) of any Abagold shares.

Alternative procedure

Prospective sellers or buyers of Abagold shares may send an email to the company secretary of Abagold at johan@abagold.co.zasetting out their full names and contact details where prospective sellers/buyers of Abagold shares can contact them. By sending this email to the company secretary of Abagold each shareholder agrees that its names and contact details may be sent to any prospective counter party.

It would then be up to the prospective purchasers and sellers to negotiate a transaction, including the purchase price payable.

Once a prospective purchaser and seller have agreed on the sale of any Abagold shares, they should contact the company secretary at johan@abagold.co.zawho will assist the parties in effecting the payment and transfer of the relevant Abagold shares with its transfer secretaries, Link Market Services.

For questions relating to this interim procedure, please contact Johan Hugo (company secretary) on 028 313 8571