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EQS - Eqstra Holdings Limited - Trading Statement Eqstra Holdings Limited (Incorporated in the Republic of South Africa) (Registration number 1998/011672/06) ISIN: ZAE000117123 Share code: EQS ("Eqstra") TRADING STATEMENT In compliance with section 3.4(b)(iii)(3) of the JSE Listings Requirements, issuers are required to publish a trading statement containing a minimum percentage difference together with any other relevant information that the issuer has at its disposal in instances where the issuer has reasonable certainty in respect of paragraph 3.4(b)(i) but it does not have the certainty to provide guidance in respect of the variance range. In an announcement dated 22 February 2010 Eqstra advised shareholders that: "The year to June 2010 will remain a challenge for Eqstra as the economy is seen to be sluggish and it is anticipated that the company will not achieve growth in earnings as announced in August 2009." These predictions are anticipated to materialise and are expected to result in negative earnings and negative headline earnings per share for the financial year ended 30 June 2010, compared to the previous corresponding period`s earnings and headline earnings per share of 16.6 cents and 12.0 cents respectively. Although the group is expected to be profitable before taxation, there are impairments to deferred tax assets in the construction and mining distributorships that will result in an overall loss after taxation. The decrease in profitability from the prior year is mainly as a result of low sales volumes in the construction and mining distributorships and the effect high rainfall and industrial actions had on contract mining production. Management is confident that banking covenants for the period ended 30 June 2010 will be met. Eqstra has successfully raised R650 million through a renounceable rights offer, increasing the issued shares by 154 761 905. The rights offer closed on Friday 25th June 2010. Proceeds from the rights offer will be used to repay short term debt and fund the equity required for the awarded Benga Coal project in Mozambique. Management is confident that the equity raised will adequately capitalise Eqstra through the bottom of the business cycle and strengthen the balance sheet. The financial information, on which this trading statement is based, has not been reviewed or reported on by Eqstra`s auditors. The statement is based on financial information available at the time of this publication. Eqstra will publish a revised trading statement in accordance with paragraph 3.4(b)(iv) as soon as it becomes reasonably certain of the percentage difference or variance range. Eqstra`s financial year end results are expected to be released on SENS on or about 24 August 2010. Johannesburg 29 June 2010 Sponsor: Merrill Lynch South Africa (Pty) Limited Date: 29/06/2010 11:19:09 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.
