Update

Update

Watermark Global

Watermark signed a loan agreement with Trinity Asset Management (Pty) Ltd (“TAM”) as part of the capital raising process when listing MRI in June 2012. Under the loan agreement, TAM agreed to place approximately 105 million MRI shares by 12 September 2012 in order to repay the loan. Watermark also had the option of taking ownership of any of the MRI shares not placed by 12 September 2012 or to sell them. Should Watermark sell the shares at a value of more than R0.20 per share, Watermark would receive 50% of the additional value.

This agreement was extended to 12 January 2013 and in view of the fact that MRI shares continue to trade at a premium to their issue price, the placement date for the balance of the shares has been extended to 12 April 2013 again with interest accruing at 2% above prime rate in South Africa. Your Board continues to believe in the value of ownership of MRI shares which they consider undervalued. In view of the prospects of MRI and the price at which MRI shares are trading the Watermark Board will keep the position regarding the remaining MRI shares under review. A further update will be provided as appropriate.

In terms of Operations at MRI, the DWA recently requested interested parties to submit their proposals for the long term solution to treatment of AMD arising in the Western, Central and Eastern Basins by 31 January 2013 and this MRI fully intends to do through its wholly owned subsidary, Western Utilities Corporation.

As regards their briquetting project, we believe MRI will be providing an update later this month.