Update on Milost and Willows Fountain transactions and proposed recapitalisation W G WEARNE LIMITED (Incorporated in the Republic of South Africa) (Registration number: 1994/005983/06) (Share Code: WEA ISIN Code: ZAE000078002) (“Wearne” or “the Company” or “the Group’’) Update on the Milost transaction, update on the proposed joint venture at the Willows Fountain Quarry at Pietermaritzburg and discussions with current major shareholders regarding the recapitalisation of Wearne 1. Update on the Milost transaction Shareholders are referred to the announcement released on SENS on 23 October 2017. Shareholders are advised that Milost Global Inc (“Milost”) has not fulfilled its obligations on the funding obligation of the first drawdown notice. Wearne has put Milost on terms to fulfill its obligation, failing which the funding agreement will be terminated. 2. Joint venture in respect of Willows Fountain Quarry at Pietermaritzburg Shareholders are referred to the SENS announcements dated 10 July 2017 and 23 October 2017 regarding the joint venture entered into between Wearne and Wearne Aggregates (Pty) Ltd, a wholly owned subsidiary of Wearne, and Right Gold Machinery Proprietary Limited in respect of the Willows Fountain Quarry situated at Pietermaritzburg. Shareholders are advised that following the above SENS announcements one of the major shareholders in Wearne, without whose support the necessary shareholders’ resolution will not be passed, has indicated that they do not support the transaction in its current form and will vote against the transaction at a shareholders meeting. The Company is currently evaluating alternative transaction structures that will not require shareholders’ approval. The upgrading of the plant at Willows Fountain Quarry is critical to enable the Group to increase production and profitability at the quarry. 3. Discussion with major shareholders regarding recapitalization of Wearne Shareholders are advised that the Company has entered into discussions with its major shareholders regarding the recapitalization of the Group. Shareholders will be updated regarding the outcome of these discussions. Randfontein 14 February 2018 Exchange Sponsors Designated Adviser Date: 14/02/2018 02:20:00 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.