Trading statement and update on the recapitalisation transactions CONSOLIDATED INFRASTRUCTURE GROUP LIMITED (Incorporated in the Republic of South Africa) (Registration number 2007/004935/06) JSE share code: CIL ISIN: ZAE000153888 ("Consolidated Infrastructure" or "CIG" or "Group") TRADING STATEMENT AND UPDATE ON THE RECAPITALISTATION TRANSACTIONS Trading statement In terms of the JSE Listings Requirements, companies are required to publish a trading statement as soon as they are satisified that a reasonable degree of certainty exists that the financial results for the reporting period will differ by at least 20% from the financial results for the previous corresponding period. Accordingly shareholders are advised that CIG's earnings/loss per share ("EPS") for the financial year ended 31 August 2018 is expected to be a loss of between 1020 cents per share and 1050 cents per share, compared to the loss of 77.47 cents per share for the financial year ended 31 August 2017. The headline earnings/loss per share ("HEPS") for the financial year ended 31 August 2018 is expected to be a loss of between 720 cents per share and 750 cents per share, compared to the headline loss of 77.94 cents per share for the financial year ended 31 August 2017. The full year results include the ongoing restructuring initiatives highlighted in the interim results for the six months ended 28 February 2018 ("Interim Results"), including the write-down of R609 million of goodwill and the carrying value of investments in joint arrangements, which together with the reversal of approximately R400 million of deferred tax assets previously recognised at the interim period, had a material impact on the results of CIG. Overall, cash generated from operations was positive, reflecting an improved contribution from the Group's non-EPC (Engineering, Procurement and Construction) businesses. As indicated in the Interim Results, while restructuring initiatives at Consolidated Power Projects Group Limited are delivering improvements, the costs associated with the process remain high and continue to impact negatively on profitability. The information on which the trading statement has been based has not been reviewed or reported on by CIG’s auditors. The reviewed results for the year ended 31 August 2018 will be released on or before 30 November 2018. Update on the Recapitalisation Transactions CIG shareholders are referred to the various announcements released on SENS on Friday, 18 May 2018, Monday, 30 July 2018 and Wednesday, 29 August 2018, regarding the R1.1 billion recapitalisation of CIG ("the proposed transaction"). The R300 million Upfront Loan was advanced by Fairfax Africa Holdings Corporation ("Fairfax") before the end of the financial year and was applied to boost the Group's cash resources. In respect of the R800 million Rights Offer, which is fully underwritten by Fairfax, all conditions to give effect thereto have been met, barring the approval from the Tanzanian competition authorities, which approval is expected to be received in the near future. This may result in the Rights Offer period running during the second half of December 2018, which may be an inconvenient time for certain CIG shareholders. CIG wishes to inform CIG shareholders of this possibility and to confirm that notwithstanding the inconvenience, CIG is committed to concluding the Rights Offer as soon as possible. 22 November 2018 Unless otherwise defined, all capitalised terms have the same meaning as defined in the circular detailing the proposed transaction. Sponsor Java Capital Date: 23/11/2018 07:05:00 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.