Trading Statement QUANTUM FOODS HOLDINGS LIMITED (Incorporated in the Republic of South Africa) Registration Number: 2013/208598/06 Share Code: QFH ISIN Code: ZAE000193686 ("Quantum Foods" or "the Company") TRADING STATEMENT In terms of the Listings Requirements of the JSE Limited, a listed company is required to issue a trading statement once it is satisfied that a reasonable degree of certainty exists that the financial results for the period to be reported upon next will differ by at least 20% from the financial results for the previous corresponding period. Shareholders are hereby advised that a reasonable degree of certainty exists that the headline earnings per share of the Company for the six month period ending 31 March 2016 will reflect a minimum decrease of 38% or 10.0 cents per share when compared to the 26.3 cents per share for the previous corresponding period. Shareholders are further advised that a reasonable degree of certainty exists that earnings per share of the Company for the six month period ending 31 March 2016 will not differ by more than 20% when compared to the previous corresponding period. Shareholders are advised that a further trading statement will be issued as soon as there is a reasonable degree of certainty as to the likely range within which the Company’s headline earnings per share is expected to decrease and the likely range within which the Company’s earnings per share is expected to increase or decrease. The results for the six months ending 31 March 2016 have been affected by: - Significantly increased raw material costs, associated with the drought in South Africa that lead to record high maize prices on the Safex and continued ZAR weakness, which negatively impacted the cost of imported raw materials. This has specifically impacted earnings in the eggs and layer livestock business where price recovery has not been sufficient. - Lower production and sales volumes in the egg business due to an increased prevalence of diseases negatively impacting poultry productivity. - Lower earnings from African operations, impacted by instability in currencies, higher input costs and lower sales volumes due to increased pressure on the consumer. - The implementation of the revised broiler business model, which resulted in the exit of the broiler meat market and the Company becoming a livestock farmer, supplying other abattoirs. This was completed with the sale of the Hartbeespoort abattoir in October 2015 and has resulted in largely de-risking the broiler business with earnings more dependent on volumes and farming efficiencies and being less dependent on the raw material costs and selling price of broiler meat equilibrium. This business model change is expected to contribute positively to earnings at the half year when compared to that of the corresponding period for this segment. The profit from the sale of the Hartbeespoort abattoir is included in the expected earnings per share for the six months ending 31 March 2016. The financial information on which this trading statement is based has not been reviewed or reported on by the Company´s auditors. Quantum Foods´ financial results for the 6 month period ending 31 March 2016 are expected to be released on SENS on or about Thursday 26 May 2016. Wellington 24 March 2016 Sponsor PSG Capital (Pty) Ltd Date: 24/03/2016 09:00:00 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.