Trading update and trading statement for the six months ended 27 June 2016 Delta EMD Limited (Incorporated in the Republic of South Africa) Registration number 1919/006020/06 ISIN: ZAE000132817 Share code: DTA (“Delta EMD” or “the Group”) TRADING UPDATE AND TRADING STATEMENT FOR THE SIX MONTHS ENDED 27 JUNE 2016 Trading update The salvage and sale of the plant and equipment formerly located at the Group’s Nelspruit plant site is complete and payment has been received for those assets. Efforts to market and sell the Nelspruit plant site continue, and the Group has determined that an impairment of that asset in not necessary. The purchase of a parcel of land included in the Nelspruit plant site that historically was leased will be completed shortly when payment of R20 million will be made in full. That parcel will be included in an eventual sale of the site. A definitive remediation order for the Nelspruit plant site was received from the Department of Environmental Affairs and the required remediation systems have been installed. Periodic dosing and monitoring of the installed boreholes continues. Trading Statement In terms of paragraph 3.4 (b) of the Listings Requirements of the JSE Limited, companies are required to publish a trading statement in the event that they are satisfied with a reasonable degree of certainty that the earnings per share and headline earnings per share for the period will differ from the previous corresponding reporting period by at least 20%. Delta EMD is currently finalising its results for the six months ended 27 June 2016 (“the period”). The results will be released in September 2016. Shareholders are advised that Delta EMD expects its loss per share for the period to be between 50% and 70% less than the loss per share of 18 cents reported for the previous corresponding reporting period (expected loss per share between 6 and 9 cents). Headline loss per share for the period is expected to be between 50% and 70% less compared to the loss of 19 cents per share reported for the previous corresponding reporting period (expected headline loss per share between 6 and 9 cents). The Group’s expenses relating to the discontinuation of its business are expected to be R5.8 million for the period (2015: R8.6 million), and include salaries for the implementation team, water and power supply, and general expenses mostly made up of security for the Nelspruit plant site. Administration expenses for the period are expected to be R2.5 million (2015: R9.7 million) The forecast financial information on which this trading statement is based has not been reviewed and reported on by the Group’s external auditors. 26 July 2016 Nelspruit Sponsor RAND MERCHANT BANK (a division of FirstRand Bank Limited) Date: 26/07/2016 08:21:00 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.