Exercise of call option to acquire remaining 60% of the shares in Bergteamet Raiseboring Europe AB 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”) EXERCISE OF CALL OPTION TO ACQUIRE REMAINING 60% OF THE SHARES IN BERGTEAMET RAISEBORING EUROPE AB (“BERGTEAMET RAISEBORING”) 1. INTRODUCTION Shareholders are referred to the announcement of 24 November 2015 which advised shareholders that Master Drilling International Limited (“MDI”), a subsidiary of Master Drilling, had acquired from Bergteamet AB (“Bergteamet”) a 40% stake in Bergteamet Raiseboring, a major raisebore drilling operator in Scandinavia, for a consideration of Euro 5.0million. In terms of that acquisition MDI had a call option to acquire the remaining 60% shareholders interests in Bergteamet Raiseboring (“the call option”). 2. EXERCISE OF CALL OPTION AND PURCHASE CONSIDERATION MDI has now exercised the call option and thus acquired the remaining 60% of the shares in and shareholder claims against Bergteamet Raiseboring by any/all of its affiliates or associates for a consideration of approximately 69.8million Swedish Krone, approximately Euro 6.9million (“the Acquisition”). 3. RATIONALE The Acquisition is part of Master Drilling’s long-term growth strategy and an effective entry into the Scandinavian region. With Bergteamet Raiseboring’s dominant market share in Sweden, Norway and Finland, Master Drilling will continue to diversify into the European market. Bergteamet Raisboring owns a fleet of 18 raisebore drilling rigs and is ranked in the top five globally. The purchase consideration will be financed from internal resources. 4. CONDITIONS PRECEDENT 4.1 The exercise of the call option is subject to the following conditions precedent being fulfilled by no later than 15 March 2018 or such later date as agreed between Bergteamet and MDI: 4.1.1 to the extent required, approval by the Competition Authorities having jurisdiction over the acquisition on terms and conditions acceptable to MDI; 4.1.2 information to the labour unions and employee representative of Bergteamet Raiseboring; 4.1.3 the waiver of any right to cancel or terminate any major contract of Bergteamet Raiseboring in consequence of the change in control of or change in shareholding in Bergteamet Raiseboring; 4.1.4 the approval by ABSA Bank Limited of the acquisition; 4.1.5 the approval of the acquisition by the bankers and financiers of Bergteamet, and the waiver by them of any rights to accelerate the repayment and/or amend the terms and/or amend the terms and conditions of banking or financial facilities. 4.2 The parties shall be entitled, provided same is in writing and signed by all parties: 4.2.1 to extend the time for fulfilment of any of the conditions precedent; 4.2.2 to waive the fulfilment of any of the conditions precedent. 5. EFFECTIVE DATE The effective date of the Acquisition is 1 April 2018. 6. VALUE OF THE NET ASSETS ACQUIRED AND PROFITS AFTER TAX Bergteamet Raiseboring’s net asset value as at 31 August 2017 (being the audited financial results prepared in terms of Generally Accepted Accounting Principles in Sweden) was USD10.3million, with profit after tax of USD 2.2million. 7. CATEGORISATION The Acquisition is a Category 2 transaction as contemplated in the Listings Requirements of the JSE Limited. 8. FURTHER ANNOUNCEMENT Shareholders will be notified once the last of the conditions precedent has been fulfilled or waived. Fochville 12 March 2018 Sponsor Investec Bank Limited 3 Date: 12/03/2018 04:50:00 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.