Update on Status of Major Operating Subsidiary and Further Cautionary Announcement Erbacon Investment Holdings Limited Incorporated in the Republic of South Africa (Registration number: 2007/014490/06) Share code: ERB ISIN: ZAE000111571 (“Erbacon” or “the Company”) UPDATE ON STATUS OF MAJOR OPERATING SUBSIDIARY AND FURTHER CAUTIONARY ANNOUNCEMENT 1. Result of Meeting of Creditors 1.1 Shareholders are referred to the announcement issued on 20 September 2013 notifying them of a meeting whereat the business rescue practitioner of Civcon Construction (Pty) Limited (“Civcon”) (Erbacon’s major operating subsidiary), presented his business rescue plan for the consideration and adoption by creditors (“the Civcon Business Rescue Plan”). 1.2 Shareholders are advised that the Civcon Business Rescue Plan was accepted and approved by creditors. 2. Exercise of Security over Civcon Shares 2.1 Shareholders are referred to the announcements issued on 07 February 2013 and 28 March 2013 notifying them that all of the shares in the Company’s subsidiaries had been provided as security for financial facilities made available by the Company’s major guarantee provider. 2.2 With respect to the shares of Civcon, the Company’s major guarantee provider has indicated to the Company that it will exercise its rights over the shares in Civcon (“Civcon Shares”). The value to be realized by the Company on the transfer of the Civcon Shares is currently under negotiation. 2.3 Subsequent to the exercise of the security over the Civcon Shares by the major guarantee provider, the Civcon Business Rescue Plan envisages the further transfer of the Civcon Shares to a consortium of new shareholders. 2.4 The net effect of the above transactions is likely to result in a material decrease in the net tangible asset value of the Company compared to the 5 cents per share as at the last year-end of the Company, being 28 February 2013. 3. Further Cautionary Announcement Until an announcement is made in respect of the transfer terms of the shares in Civcon, shareholders are advised to continue exercising caution when dealing in the company’s securities. Johannesburg 2 October 2013 Sponsor PSG Capital (Pty) Limited Date: 02/10/2013 09:04:00 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.