Trading Statement and Notification Regarding Debt Funding Facility RARE HOLDINGS LIMITED (Incorporated in the Republic of South Africa) Registration Number: 2002/025247/06 Share Code: RAR ISIN: ZAE000180626 ("Rare" or "the Company") TRADING STATEMENT AND NOTIFICATION REGARDING DEBT FUNDING FACILITY TRADING STATEMENT In compliance with paragraph 3.4 of the Listings Requirements of the JSE Limited, a listed company is required to publish a trading statement as soon as they are satisfied that a reasonable degree of certainty exists that the financial results for the next period to be reported on are likely to vary by more than 20% from the previous corresponding period. Shareholders are advised that the Company expects the loss per share and headline loss per share for the year ended 30 June 2016 to increase by at least 100% compared with that of the prior comparative period, being the year ended 30 June 2015. Rare continued to suffer operating losses in an extremely difficult market. Contraction in demand combined with an oversupply of HDPE pipe products in the South African market contributed largely to the operating loss. The pipeline services division did not secure an ‘anchor’ transaction for the year and its performance continues to be adversely affected by a reduction and/or postponement of capital projects in South Africa and neighbouring countries. The trading division performed more or less in line with the previous year, but uncertainty with regards to the renewal of major contracts is a concern going forward. The water division did not produce any sales during the period under review. A further more detailed trading statement will be published in due course. The information in this trading statement has not been reviewed or reported on by the Company`s auditors. DEBT FUNDING FACILITY Shareholders are referred to the R50 million loan (“Loan”) granted to Rare by Mayfair Speculators (Pty) Limited (“Mayfair”) as set out in the Company’s annual report, which Loan including accrued interest was due to be repaid on 31 July 2016. At year end of 30 June 2016 the Loan including accrued interest amounted to R58 723 800. Mayfair has notified Rare that it will postpone the repayment date of the Loan to 31 October 2016. Mayfair has financed Rare notwithstanding the tough trading conditions experienced by Rare and a declining market all of which has resulted in losses by Rare over a period of more than three years. In light thereof, Mayfair has indicated to Rare that the current pricing of the Loan does not reflect the associated credit risk and will require review. Mayfair has reaffirmed its commitment to Rare as a major shareholder and more recently, in its role as a consortium partner to the offer to minorities announced on SENS on 22 June 2016. Rare has started engaging with commercial funders for a revised funding line. By order of the Board Kliprivier 15 August 2016 Designated advisor: PSG Capital (Pty) Limited Date: 15/08/2016 09:10:00 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.