Kpone Gas- and Oil-fired combined cycle EPC power plant update and continuation of cautionary announcement 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’) KPONE GAS- AND OIL-FIRED COMBINED CYCLE EPC POWER PLANT UPDATE AND CONTINUATION OF CAUTIONARY ANNOUNCEMENT As announced on 6 December 2018, Group Five’s client Cenpower instituted a claim of US$60,5 million and a written demand to the Group’s bank guarantee providers requesting that an amount of US$43,8 million of the US$60,5 million claim be paid to the client. This claim of US$60,5 million represents the client’s evaluation of the costs to be incurred to complete the works on the contract, as well as amounts relating to the recoupment of estimated losses and damages the client believes it incurred. The Group strongly disputes the amount claimed and the demand for its payment, as the client themselves confirmed that the construction on the plant was complete, with only testing and commissioning to be performed. As an update, Group Five informs the market that the demand of US$43,8 million was paid to Cenpower by the Group’s guarantee providers. Payment was made on the basis of the legal requirements of on-demand bonds and not on the merits of the contractual claims presented by the client. In terms of the contract, any amount the Group will be held liable for (and/or entitled to) needs to either be agreed between the parties or determined through the dispute resolution mechanism in the contract prior to payment thereof. This demand has not been independently determined and does not reflect the counter claims the Group is legally entitled to and is pursuing. The Group’s financial partners and lenders have confirmed their support in managing any potential liquidity event. This includes lenders agreeing to abide by the creditors’ standstill agreement, established when the Group entered into its Senior Bridging Facilities Agreement. The standstill agreement imposes limitations on the standstill creditors to take enforcement action against the Group. Further terms and conditions of this support, including the terms of repayment of any debt, are being finalised with the lenders, thus supporting the Group’s liquidity status. In terms of the contractual process, the Group will continue to progress its contractual rights and entitlements for payment of all amounts due and owing under the contract, including the recovery of delay damages (paid in terms of the guarantees) and claims against the client. This includes a submission to the International Chamber of Commerce (ICC) in Paris for the resolution of a dispute through expert proceedings, which is a considerably quicker process for resolution of disputes than arbitration. Good progress has been made in this regard. Cautionary announcement The cautionary announcement released on 30 November 2018 remains in place as the above may have a material impact on the price of Group Five’s securities. Shareholders are advised to continue to exercise caution when trading in the Company’s securities until a further announcement is made. 11 December 2018 Sponsor Nedbank Corporate and Investment Banking Date: 11/12/2018 08:10:00 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.