REVIEW OF OPERATIONS: CONCLUSION

Despite the turbulence in global markets and the severe effects of the economic crisis on financial markets, AECI emerged from 2009 with its strategy intact and with the strength of its balance sheet improved. Pleasing progress was made in implementing the Group's capital expenditure projects and, overall, AECI's businesses succeeded in retaining market share and margins through the crisis. This will provide a firm base for growth in the Group's activities in 2010.

AECI's vision remains to be the chemical and mining services supplier of choice for customers in its chosen markets. The Company aims to provide above average returns to its shareholders by:

• ensuring that it has a globally competitive cost base for all its operations;
• continuing to invest in world class technology;
• maintaining customers as the centre of focus and striving for truly excellent customer service; and
• providing and enabling appropriate governance frameworks for its businesses and ensuring that each business complies with Group standards. At the same time, entrepreneurial flair must be encouraged and enhanced. Accordingly, organisational structures that will enable this philosophy of "freedom in a framework" are being implemented.

The focus of the executive management team for 2010 will be to maintain the integrity of these strategic pillars, while building on the sound platform established in 2009. Specifically, the ramp-up of new plants will provide AECI with a globally competitive cost base and world class technology, as well as new opportunities for customer service excellence.

The capital investment projects, which were all mechanically complete by the end of 2009, are company-transforming initiatives for AEL and Senmin in particular and they will have a major impact on the Group as a whole.

Throughout 2010 management will continue to focus on cash management, particularly in regard to working capital. Although some improvement in trading conditions is expected in 2010, the Company will nonetheless be extremely careful with its expenditure and risk management since it is also expected that the business environment will remain volatile.

In summary, AECI is well positioned to benefit from any improvement in economic conditions in 2010, and from the ramp-up of its capital projects.

I would like to thank our customers, suppliers, shareholders and employees for supporting AECI in what was a very difficult year and look forward to improved results for the benefit of all our stakeholders in 2010.

Graham Edwards

Chief executive
Woodmead, Sandton

30 March 2010