MASTER DRILLING GROUP LIMITED - Notice, as required in terms of section 45(5) (a) of the Companies Act, 71 of 2008

Notice, as required in terms of section 45(5) (a) of the Companies Act, 71 of 2008

Master Drilling Group Limited
(Incorporated in the Republic of South Africa)
(Registration number 2011/008265/06)
JSE share code: MDI
ISIN: ZAE000171948
(“Master Drilling” or the “Company”)



NOTICE, AS REQUIRED IN TERMS OF SECTION 45(5) (a) OF THE COMPANIES ACT,
71 OF 2008 (THE ACT) FOR THE GRANTING OF FINANCIAL ASSISTANCE


In terms of the provisions of section 45(5)(a) of the Companies Act, 71 of 2008 ("the Act")
and pursuant to a special resolution passed by shareholders authorising the board of
directors ("the board") to provide direct or indirect financial assistance to a related and inter-
related company, shareholders are advised that the board adopted a resolution in terms of
sections 45(3)(b) and 45(4) of the Act, authorising the Company to grant financial assistance
to its subsidiary, Master Drilling Chile SA (“MD Chile”), in the form of a parent company
guarantee in favour of Consortio Züblin Geovitta SpA (“Züblin Chuquicamata”) for the due
performance by MD Chile of its obligations under a subcontract between Züblin
Chuquicamata and MD Chile. The sub-contract relates to certain raiseboring works to be
performed by MD Chile, and has a contract value of approximately USD30 000 000.


As required by section 45 of the Act, the board had satisfied itself and confirms that:


   (i)     immediately after providing such financial assistance, the Company satisfied the
           solvency and liquidity test as provided for in section 4 of the Act; and
   (ii)    the terms under which such financial assistance is given are fair and reasonable
           to the Company.


Fochville
26 April 2017

Sponsor
Investec Bank Limited




                                                                                                     

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