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MASTER DRILLING GROUP LIMITED - Voluntary announcement to shareholders, the expansion into two new geographies

Release Date: 01/11/2017 16:05
Code(s): MDI     PDF:  
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Voluntary announcement to shareholders, the expansion into two new geographies

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”)

Voluntary announcement to shareholders, the expansion into two new geographies:

Master Drilling, the world leader in the raise bore drilling services industry, today announced its
expansion into India and Australia, diversifying across two new geographies.

In India, Master Drilling will support Vedanta Limited, a London Stock Exchange listed, globally
diversified natural resources major with interests in zinc, lead, silver, copper, iron ore, aluminium, power
and oil & gas. The company will deploy one large raisebore machine to one of Hindustan Zinc’s mines
in India at an initial contract value of approximately US$ 6 million.

In Australia, a large raisebore machine will be contracted out to an internationally renowned specialist
underground mining contractor, on a gold project. The rental contract, the first such agreement which
sees Master Drilling supply the machine without manpower, will run for an initial period of one year.

Master Drilling’s Chief Executive Officer, Danie Pretorius said: "These two deals mark our entry into
India and Australia which are two new geographies for Master Drilling. Both contracts are also
in commodities targeted in our strategic plan, being gold and zinc. We will continue to explore
new geographies and further diversify our contracting approach to maximise the utilisation
rates of our machines and further develop our global footprint.”

Both contracts relate to underground ventilation works to be completed over the next two years. The
Indian contract has the potential to develop India as another expansion hub for the group, while the
Australian contract is the first rental agreement where Master Drilling shall supply the raisebore machine
and technical support whilst the client takes care of the operations.

“The two contracts are proof of our ability to provide our clients with specialised, adaptive and
integrated drilling solutions to suit specific drilling technology challenges whilst driving growth
by unlocking value across the geographies, sectors and commodities we operate in,” concluded
Pretorius.

Fochville
1 November 2017

Sponsor
Investec Bank Limited


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