Trading update and trading statement update Group Five Limited (Incorporated in the Republic of South Africa) (Registration number: 1969/000032/06) Share code: GRF ISIN: ZAE000027405 ("Group Five” or “the Company” or “the Group”) TRADING UPDATE AND TRADING STATEMENT UPDATE Introduction Subsequent to the general trading update issued on 1 March 2018, Group Five wishes to inform shareholders that it has now finalised the remaining aspects of its interim results for the six months ended 31 December 2017. In the March 2018 update, the Group disclosed that the assessment of operating conditions on specifically the independent gas- and oil-fired combined cycle power plant EPC contract (Kpone contract) in Ghana remained in progress. The Group has now received an independent assessment of the time and cost to completion and an assessment of claims for this contract from its appointed independent professional expert. The Board has applied this assessment in its determination of the interim financial results. Based on this analysis, the final completion date for the Kpone contract has been agreed as June 2018, which is deemed to be the most reliable date for completion. As was advised in the SENS announcement of 19 December 2017, possible delay penalties are capped at $62,5 million and therefore represent the gross maximum penalty exposure possible, assuming the Group is responsible for a six-month delay in completion of the contract. This penalty amount is a gross amount and does not reflect the counter, and other, claims that the Group is legally entitled to. Against these possible penalties, the Group continues to progress its own contractual claims. Trading statement update The Group advises that it expects to report a loss of approximately 773 cents per share and a headline loss of approximately 779 cents per share in H1 F2018. This represents a 156% increase in the loss per share (31 December 2016: 302 cents loss per share) and a 151% increase in the headline loss per share (31 December 2016: 310 cents loss per share) when compared with the prior period. It represents a R371 million increase in the loss over that guided in the previously-released trading statement. Following engagement with the appointed independent professional expert and based on an evaluation from management, the Group can confirm that reasons for the increased loss include additional resources allocated to the contract to ensure focused execution, and the cost of specialists, technical advisors and employees who will be on site for longer due to the contract finalisation delay. It also includes additional costs accepted by the Board to ensure acceleration of the contract completion to its earliest possible completion date. The increase in the loss also includes unexpected costs, incurred outside of the Group’s control, against which the Group will be claiming recovery. Group liquidity As outlined in the SENS announcement of 1 March 2018, the Kpone contract, together with the ongoing pressure in the South African construction market, and the further rationalisation of overheads in the construction businesses and the corporate office, continue to place pressure on free cash resources. The Group previously advised that it was in discussions with its funding partners to establish short-term bridging funding where there is a mismatch between the timing of the expected cash recoveries from these initiatives and the Group’s short-term funding requirements. The Group is pleased to advise that it has signed and executed a term sheet with a funding consortium which sets out the terms and conditions on which the funding consortium, subject to the fulfilment of conditions precedent, is willing to provide up to R650 million of short-term bridge funding. This will be sufficient to satisfy the Group’s cash requirements on a sustainable basis. Reporting The above information has not been reviewed or reported on by the Company’s auditors. In discussions with the JSE, the Company committed to release its interim results in early April 2018. The Group therefore advises that it will announce its results on 12 April 2018, together with an update to the market on the Group’s business. 29 March 2018 Sponsor Nedbank Corporate and Investment Banking Date: 29/03/2018 05:10:00 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.