Unaudited condensed consolidated financial statements of the Master Drilling Group for the six months ended 30 June Master Drilling Group Limited (Incorporated in the Republic of South Africa) (Registration number 2011/008265/06) JSE share code: MDI ISIN: ZAE000171948 (“Master Drilling” or the “Company”) UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF THE MASTER DRILLING GROUP FOR THE SIX MONTHS ENDED 30 JUNE 2015 In terms of section 8.57 (a) of the Listings Requirements of the JSE Limited (“Listings Requirements”), shareholders of Master Drilling are referred to the Company’s unaudited interim results announcement dated 28 September 2015 and are hereby advised that: ACCOUNTING POLICIES – BASIS OF PREPARATION The unaudited condensed consolidated interim financial statements of Master Drilling Group Limited have been prepared on the historical cost basis, except for certain financial instruments that are stated at fair value. The Group Financial Statements for the six months ended 30 June 2015 have been prepared in compliance with IAS 34: Interim Financial Reporting, International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board and the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and presented in accordance with the minimum content, including disclosures, prepared in accordance with the JSE Limited Listings Requirements and the requirements of the South African Companies Act, 2008 (as amended). The group’s accounting policies used in the preparation of these financial statements are consistent with those used in the Annual Financial Statements for the year ended 31 December 2014. The unaudited financial statements for the six months ended 30 June 2015 have been prepared by the corporate reporting staff of Master Drilling Group Limited, headed by Elzaan Swanepoel (CA (SA)), the Group’s Management Accountant. This process was supervised by André Jean van Deventer (CA (SA)), the Group’s Financial Director. 1 GOING CONCERN Based on the information available to it, the Board of Directors believes that the Group remains a going concern. ISSUED CAPITAL There has been no change to the issued capital since 31 December 2014. OPERATING SEGMENTS There are no changes to the operating segments from those disclosed at 31 December 2014. FUNCTIONAL AND PRESENTATION CURRENCY Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary environment in which the entity operates, i.e. its “functional currency”. The functional currency of the Group is Rands. The consolidated financial statements are presented in US Dollars (the “presentation currency”). Management believes that this currency is more useful to the users of the consolidated financial statements, as this currency most reliably reflects the global business performance of the Group as a whole. Fochville 6th October 2015 Sponsor Absa Bank Limited (acting through its Corporate and Investment Banking division) 2 Date: 06/10/2015 02:55:00 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.