Further detail regarding a proposed rights issue and further cautionary announcement Distribution and Warehousing Network Limited (Incorporated in the Republic of South Africa) (Registration number 1984/008265/06) Share code: DAW & ISIN code: ZAE000018834 (“DAWN” or “the Company” or “the Group”) FURTHER DETAIL REGARDING A PROPOSED RIGHTS ISSUE AND FURTHER CAUTIONARY ANNOUNCEMENT Shareholders are referred to the announcement published by the Company on the Stock Exchange News Service of the JSE Limited on Thursday, 19 January 2017 referring to the consideration of various initiatives by the board of directors of DAWN to, inter alia, strengthen its balance sheet to allow for the alignment of its capital structure to its business model and current environment. DAWN is pleased to announce that we are now in a position to provide further detail on this matter. DAWN intends to raise approximately R350m in gross proceeds through a rights issue (“Proposed Rights Issue”). The Company has agreed terms with a potential underwriter and expects the Proposed Rights Issue to be fully underwritten. In addition, the Company has received undertakings of support for the Proposed Rights Issue from shareholders representing in excess of 60% of DAWN’s issued share capital. The Company plans to post a circular to shareholders on or about 2 February 2017 in order to convene a shareholders extraordinary general meeting (“the EGM”), to approve the necessary resolutions required to implement the Proposed Rights Offer in early March 2017. Accordingly a further announcement will be released providing shareholders with the salient dates and times of the EGM as well as further information relating to the Proposed Rights Offer. FURTHER CAUTIONARY ANNOUNCEMENT Further to the cautionary announcement released on Thursday, 19 January 2017 and the information set out in this announcement, DAWN shareholders are advised to continue exercising caution when dealing in DAWN securities until a further announcement is published. Germiston 25 January 2017 Financial advisor and transaction sponsor Investec Bank Limited Sponsor Deloitte & Touche Sponsor Services (Pty) Ltd Date: 25/01/2017 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.