Operational Update and Trading Statement ROLFES HOLDINGS LIMITED (Incorporated in the Republic of South Africa) (Registration number 2000/002715/06) Share Code: RLF & ISIN: ZAE000159836 ("Rolfes" or "the Company") OPERATIONAL UPDATE AND TRADING STATEMENT Rolfes is a black empowered, platform chemical group targeting the need for food security and clean water through its agricultural, food, industrial and water divisions expanding progressively in domestic, developed and foreign emerging markets. Rolfes’ focus during the past five months was on increasing markets share, working capital management, improving operating profit margin performance and increasing return on capital invested. The board is pleased to provide the following operational update to the market regarding current operational performance. Agriculture The division supplies foliar feed, organic and adjuvant products into mostly high-value permanent and semi-permanent crops situated around irrigation areas therefore providing a natural barrier against drought conditions. Drought conditions improved towards the latter part of November 2016 resulting solid growth on operating profit level on the comparative July to November period. Food The division distributes food ingredients into various industries. Operating profit growth has been driven by national market share gains in Gauteng and in coastal regions established during the previous financial year, rising food prices and increased staple demand. Industrial The division supplies traded products into the industrial, manufacturing, agriculture and water industries. Local market share growth, good cost control and effective management of resources contributed to the pleasing growth in operating profit of the business. Water The water division provides specialized water purification products and solutions into the water filtration industrial and mining industries. New management on board and divisional restructuring initiatives contributed to an improved operating profit performance. Trading update With three (3) weeks of trading remaining for the six months to 31 December 2016, current estimates indicate that headline earnings per share ("HEPS") and earnings per share ("EPS") will be in excess of 25% higher (Expected HEPS and EPS in excess of 35, 4 cents and 35, 4 cents respectively) compared to the six months to 31 December 2015(HEPS and EPS of 28, 4 cents and 28, 3 cents respectively). Once the Company has further certainty on expected HEPS and EPS, a further trading statement will be released on SENS. The information in this operational and trading update has not been reviewed or reported on by the Company’s auditors. The company intends to publish its interim financial results for the period ending 31 December 2016 on SENS by close of business on 20 February 2017. Johannesburg 12 December 2016 Sponsor: Grindrod Bank Limited Investor relations: Singular Systems Date: 12/12/2016 07:05:00 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.