Trading Statement AVENG LIMITED (Incorporated in the Republic of South Africa) (Registration number: 1944/018119/06) ISIN: ZAE000111829 - SHARE CODE: AEG ("Aveng", "the Company" or “the Group”) TRADING STATEMENT In terms of paragraph 3.4 (b) of the JSE Limited Listings Requirements, a listed company is required to publish a trading statement as soon as a reasonable degree of certainty exists that the financial results for the upcoming reporting period will differ by more than 20% from those of the previous corresponding period. The Group expects basic earnings per share (“EPS”) and headline earnings per share (“HEPS”) for the year ended 30 June 2017 to be substantially more than 20% lower than the basic EPS loss of (25.4) cents and basic HEPS loss of (75.2) cents reported for the previous comparative period. This follows continued weak market conditions for the South African businesses, operational underperformance and accelerated claims settlements at McConnell Dowell, an increased net interest expense as well as the impact of previously reported settlements and the agreement concluded with the South African government. Shareholders are advised that a further trading statement will be released as soon as there is a reasonable degree of certainty as to the likely range by which the Group’s EPS and HEPS are expected to decrease. QCLNG update As previously announced, the arbitration hearings have been completed. The finding of the Tribunal is awaited and Aveng expects that an award is likely to be reported within the current financial year’s reporting cycle. Other claims Aveng continuously reassesses the position recognised on all its recorded uncertified revenue. The Group has noted increasingly difficult, litigious and costly processes in bringing long outstanding claims to commercial conclusion. Despite the unchanged view of the merits of its existing claims, management is in the process of evaluating previously recognised uncertified revenue considering the abovementioned conditions. This may result in the derecognition of certain previously recorded uncertified revenue. Such an adjustment may lead to a further reduction in earnings beyond currently anticipated results. The Group will continue to robustly pursue its commercial entitlements in relation to these claims. Shareholders are therefore advised to continue to exercise caution when dealing in their Aveng securities until a further announcement is made. The financial information contained in this trading statement has not been reviewed nor reported on by Aveng's independent external auditors. Forward-looking statements This announcement includes forward-looking statements that reflect the current views and expectations of the Board with respect to future events and financial and operational performance. All statements, other than statements of historical fact are, or may be deemed to be, forward-looking statements, including, without limitation, those concerning the Group’s strategy; the economic outlook for the industry; and the Group’s liquidity and capital resources and expenditure. These forward-looking statements speak only as of the date of this announcement and are not based on historical facts, but rather reflect the Group’s current expectations concerning future results and events. The Group undertakes no obligation to update publicly or release any revisions to these forward looking statements to reflect events or circumstances after the date of this announcement. JSE Sponsor UBS South Africa Proprietary Limited 17 May 2017 Jet Park Michael Canterbury Group Executive: Strategy & Investor Relations Tel: 011 779 2979 Email: michael.canterbury@avenggroup.com Date: 17/05/2017 03:00:00 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.