Trading Statement CITY LODGE HOTELS LIMITED “City Lodge” (Reg. No. 1986/002864/06) (Incorporated in the Republic of South Africa) Share Code: CLH ISIN Code: ZAE 000117792 TRADING STATEMENT In terms of rule 3.4(b) of the JSE Listings Requirements, a listed company is required to publish a trading statement as soon as a reasonable degree of certainty exists that the financial results for the next reporting period to be reported on will differ by at least 20% from those of the previous corresponding period. In this regard basic earnings and diluted basic earnings per share for the year ended 30 June 2014, which include the costs and effects of the BEE deal, are anticipated to be between 25% and 30% higher than the previous year. Diluted headline earnings per share are anticipated to be between 5% and 10% higher than the previous year. The difference between basic earnings and headline earnings per share relates to the exclusion of the fair value gain of R45 million on the re-measurement of the initial investment in the Kenyan joint venture following the purchase of the remaining 50% shareholding. Normalised headline earnings, which excludes the costs and effects of the BEE deal, as well as the gain on the re- measurement of the investment in the Kenyan joint venture, are however anticipated to be between 9% and 14% higher than the previous year, whilst normalised diluted headline earnings per share are anticipated to be between 8% and 13% higher than the previous year. The information on which this trading statement has been based has not been reviewed or reported on by the group’s auditors and it is anticipated that the results will be released on SENS on or about 15 August 2014. Bryanston 5 August 2014 Sponsor JP Morgan Equities South Africa Proprietary Limited Date: 05/08/2014 09:58:00 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.