Business Update And Trading Statement For The Six Months Ended 27 June 2018 And Cautionary Announcement Delta EMD Limited Incorporated in the Republic of South Africa) Registration number 1919/006020/06 ISIN: ZAE000132817 Share code: DTA (“Delta EMD” or “the Group”) BUSINESS UPDATE AND TRADING STATEMENT FOR THE SIX MONTHS ENDED 27 JUNE 2018 AND CAUTIONARY ANNOUNCEMENT. Business Update A final external audit of the environmental conditions on the Group’s Nelspruit plant site was conducted and the report was submitted to the Department of Environmental Affairs. The results of the audit indicate that 98% of the requirements of the outstanding Order issued by the Department of Environmental Affairs have been met. The plant site will continue to be monitored for 12 months to confirm continuing favourable trends and then the company will request that the Department close out the Order. Efforts to market and sell the Nelspruit plant site continue. The directors have, based on experience trying to sell the plant site during the past several years and valuations indicated by potential buyers, decided to impair the value of the plant site from R 25 949 000 to R 10 000 000, resulting in a per share impairment expense of 32.4 cents per share. Cautionary Announcement Shareholders are advised that the Company is in discussions with potential parties interested in the purchase of the Nelspruit plant site. If any is successfully concluded, it may have a material effect on Delta’s share price. Accordingly, shareholders are advised to exercise caution when dealing in the Company’s securities until a further announcement in this regard is made. Trading Statement Paragraph 3.4 (b) of the Listings Requirements of the JSE Limited requires a company to publish a trading statement in the event that the company is satisfied with a reasonable degree of certainty that its earnings per share and headline earnings per share for the period will differ from the previous corresponding reporting period by at least 20%. Delta EMD is currently finalising its results for the six months ended 27 June 2018 (“the period”). The results will be released towards the end of September 2018. Shareholders are advised that, due in large part to the impairment expense, Delta EMD expects its loss per share for the period, to be between 31.1 cents and 32.0 cents, or between 591% and 611% more than the loss per share of 4.5 cents for the previous corresponding reporting period. Delta EMD also expects its headline earnings per share, which excludes the impairment expense, to be between 0.7 cents and 0.8 cents, compared to the headline loss per share of 4.5 cents for the previous corresponding reporting period. The forecast financial information on which this trading statement is based has not been reviewed nor reported on by the Group’s external auditors. 6 September 2018 Nelspruit Sponsor Deloitte & Touche Sponsor Services Proprietary Limited Date: 06/09/2018 01:52:00 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.