EQSTRA HOLDINGS LIMITED - Cautionary announcement

Cautionary announcement

Eqstra Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 1998/011672/06)
Share code: EQS
ISIN: ZAE000117123
(“the Company” or “Eqstra” or “the Group”)

CAUTIONARY ANNOUNCEMENT

The Benga Coal Mining Contract (“Contract”) that operated in
Mozambique for the past five years as part of Eqstra Mozambique
Limitada, a wholly owned subsidiary of Eqstra, concluded on 31
December 2015.

Eqstra shareholders are advised that Eqstra Mozambique Limitada has
signed a memorandum of intent with Minas de Benga Limitada (“the
client”), for the disposal of all plant and equipment assets (“the
proposed sale assets”) used in the provision of mining services under
the terms of the Contract to the client.

The intention to enter into these negotiations was previously
discussed at the September 2015 annual results presentation of Eqstra.
The proposed sale of the assets is in line with Eqstra’s stated
strategy to reduce its exposure to the mining industry. The proceeds
of the proposed sale assets would enhance the Group’s cash liquidity
position.

The proposed sale of assets in terms of this Contract is material to
Eqstra and, if successfully concluded, the proposed sale will
constitute a Category 1 transaction for the Company in terms of the
JSE Limited Listing Requirements, requiring, inter alia, Eqstra
shareholder approval. Upon signature of the proposed sale agreement a
further detailed announcement will be published.

Shareholders are therefore advised to exercise caution when dealing in
Eqstra securities until a further announcement is made.


Kempton Park
3 February 2016

Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)

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