eXtract GROUP LIMITED - Late release of interim results, changes to the board of directors and renewal of cautionary

Late release of interim results, changes to the board of directors and renewal of cautionary

EXTRACT GROUP LIMITED
(previously Eqstra Holdings Limited)
(Incorporated in the Republic of South Africa)
(Registration number 1998/011672/06)
JSE share code: EXG       ISIN: ZAE000223202
(“eXtract” or “the Company”)


LATE RELEASE OF INTERIM RESULTS, CHANGES TO THE BOARD OF DIRECTORS AND RENEWAL OF CAUTIONARY


Shareholders are referred to the cautionary announcement released on SENS on 13 March 2017 wherein shareholders
were advised that the company is embarking on a strategic review process in relation to all aspects of its business.

Following the implementation of the transaction concluded between the company and enX Group Limited (“enX”)
whereby, inter alia, enX acquired the company’s industrial equipment and fleet management businesses in November
2016, the board of directors of eXtract was reconstituted. The reconstituted board of directors believes it is necessary
to review the company’s strategy to align the company’s capital allocations with the current mining environment and
are reviewing the company’s business model and contractual arrangements. Following the strategic review, eXtract
will look to allocate capital to areas where the board of directors believes eXtract can deliver appropriate returns and
create shareholder value. Pursuant to this strategic review process, a number of key outcomes have been identified
and eXtract is currently engaging with various stakeholders in this regard. Key outcomes of the strategic review
include:

-     the termination of non-profitable contracts and transitioning the counterparties to such contracts to an
      owner/operator model where the contracts and underlying assets are sold by eXtract to such counter-parties as a
      going concern;
-     the disposal of further excess assets;
-     significantly reducing the eXtract group’s overhead costs, including a reduction in headcount;
-     changes to the management of eXtract, as set out below;
-     significantly reducing eXtract’s debt levels; and
-     exploring a new funding model for potential future resources investments.

Due to the material nature of the strategic review and the fact that the company is still engaging with various
stakeholders to achieve the key outcomes set out above, there is insufficient certainty of the economic and financial
outcomes of the strategic review to allow the company to finalise its interim results for the six months ended
31 December 2016. Shareholders are accordingly advised that the company’s results for the six months ended
31 December 2016 will be delayed. It is anticipated that the company’s results for the six months ended
31 December 2016 will be released by 18 April 2017.

Shareholders are further advised that as part of this strategic review process the following changes have been made to
the board of directors of eXtract:

-     Non-Executive Director, Mr Michael Teke has resigned as a director of eXtract, effective from 29 March 2017.
      This follows a potential for conflicts of interest as a result of eXtract’s change in business strategy;

-     By mutual agreement, Mr Justin Colling has stepped down as Chief Executive Officer, effective from
      29 March 2017. Mr Colling will remain available to the company on a consultancy basis until 31 May 2017 in
      order to assist the board with the transition to the revised strategy;

-     Mr Bernard Swanepoel, the current chairman of the board, has been appointed as Executive Chairman, effective
      from 29 March 2017, to oversee the strategic review and the implementation of the resultant changes;

-     Non-Executive Director, Mr Clinton Halsey, has been appointed as Chief Investment Officer, effective from
      31 March 2017, and will also serve as Interim Chief Executive Officer to oversee operations until a new Chief
      Executive Officer is appointed.
Mr Swanepoel thanked both Mr Teke and Mr Colling for their valuable contribution to the Board and wished them
much success in their new ventures.

eXtract will keep shareholders informed of the outcomes of the strategic review. Pending further announcements
shareholders are advised to exercise caution when dealing in the company’s securities.

31 March 2017


Sponsor and joint corporate advisor                           Joint corporate advisor
Java Capital                                                  BSM Black


For further information please contact:

eXtract Group Limited
Jannie Serfontein                                                +27(0) 11 966 2000      +27(0) 82 419 0987

Date: 31/03/2017 10:03:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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