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 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 or corporation (or any future related or inter related company or corporation), notification is hereby given by the Company 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 an inter-related company. Shareholders are advised that, the Industrial Development Corporation of South Africa Limited (the “IDC”) has approved partial funding for the first phase of the Master Drilling Blind Shaft Boring System (the “BSBS”) development, with roll-out of the project expected to take place in 2019. The BSBS allows for cost-effective and safe access to the ore bodies at great depths and situated in hard substrate. With the entire operation conducted without the need for blasting, noise or fumes which are no longer a feature of the drilling process, and environmental impact is minimal. As part of the arrangements envisaged above, which include co-financing by the IDC, the Company shall provide proportional funding (the “financial assistance”) in the amount of R19 840 000.00 (Nineteen Million Eight Hundred and Forty Thousand Rand) to Master Sinkers (Pty) Ltd with registration number 2000/016508/07 (“MS”) presently a wholly owned subsidiary of the Company, with the IDC providing a like amount. In accordance with section 45 of the Act, the board is satisfied and acknowledges that: i) immediately after providing such financial assistance, the Company would have satisfied the solvency and liquidity test as provided for in section 4 of the Act; and ii) the terms under which such financial assistance would be given are fair and reasonable to the Company. Further opportunities to develop home-grown technologies that support cost-effective, simpler and improved drilling systems are also being explored with the IDC. Fochville 6 October 2017 Sponsor Investec Bank Limited Date: 06/10/2017 01:56:00 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.