Trading and operatinal statement RBA HOLDINGS LIMITED (Incorporated in the Republic of South Africa) (Registration number 1999/009701/06) (JSE code: RBA ISIN: ZAE000104154) (“RBA” or the “Company”) TRADING AND OPERATIONAL UPDATE RBA is issuing this Trading Update in terms of section 3.4(b) of the JSE Listings Requirements to: provide more detail of the performance of the Company in the first half of 2014; give shareholders an indication of the Company’s expected performance during the remainder of 2014; and to give shareholders an indication of some of the key actions that are being taken to ensure the future growth and sustainability of the Company. Trading Update The Company is in the process of finalising its interim results for the 6 month period ended 30 June 2014 and RBA advises shareholders of the following: - the basic loss is expected to be between 3.53 and 3.73 cents per share compared to a loss of 2.53 cents per share for the comparable period; - the headline loss is expected to be between 3.47 and 3.67 cents per share compared to headline loss of 2.68 cents per share for the comparable period. The financial information on which this trading update is based has not been reviewed or reported on by the Company`s auditors. Operational Update The Company’s stock of available serviced land continued to improve in line with expectations. As a result, RBA is currently constructing houses on seven sites. The only land development project that has experienced significant delays is Atteridgeville. This project was expected to be ready for top structure construction in April 2014. However, delays due to the illegal occupation of a portion of the property have caused the completion date to be extended to end September 2014. After this, the Company’s active project pipeline is expected to be sufficient to allow the Company to operate at above breakeven levels of production. Sales levels during the period continued to improve with an average of 76 bank approvals per month for the first 6 months of the year and average bank approval levels from July 2014 in excess of 100 per month. These sales levels are above breakeven and in line with RBA’s previous best performance in 2006/2007. In terms of construction activity, RBA started construction on 119 new houses during the first quarter of 2014 versus 225 houses during the second quarter of 2014. In addition, the Company handed over 136 completed houses during the first quarter versus 198 completed houses during the second quarter of 2014. The major constraint to performance during the first three months was the tight liquidity position as the Company expanded operations while operating below breakeven levels. RBA concluded a R 31,2 million loan, debenture subscription and share option agreement during the period and the Company received R 23,7 million during the second quarter of the six month period with the balance of R 7,5 million being received during July 2014. The improved liquidity position that resulted from this funding allowed the Company to improve operational performance in the second quarter demonstrating that the Company’s construction system has sufficient capacity to operate at levels in excess of profitable levels. In line with the turnaround strategy adopted in 2012, over the past two years the Company has increased the number of serviced stands available for sale, improved its project pipeline, increased its construction capacity and it is recording record levels of sales and marketing performance. With these building blocks in place the major constraint now preventing the Company from operating at levels above breakeven is further working capital finance. In order to decisively address this and improve the Company’s balance sheet position RBA plans to complete a transaction to recapitalise the business during the fourth quarter of 2014. In this regard, shareholders are referred to the cautionary announcement made on 22 September 2014. The interim results announcement for the 6 month period ended 30 June 2014 will be released on 30 September 2014. Johannesburg 26 September 2014 Designated Advisor Exchange Sponsors Date: 26/09/2014 07:55:00 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.