Calgro M3 venture outside of South Africa to grow existing pipeline Calgro M3 Holdings Limited (Incorporated in the Republic of South Africa) (Registration number: 2005/027663/06) Share code: CGR ISIN: ZAE000109203 (“Calgro M3” or “the company” or “the Group”) CALGRO M3 VENTURE OUTSIDE OF SOUTH AFRICA TO GROW EXISTING PIPELINE Calgro M3 is issuing this voluntary business update to inform its stakeholders that a project was awarded to the company in Namibia. The company will therefore expand its operations into Africa to grow its existing pipeline of secured projects and diversify its exposure to housing in South Africa. The R812 million Otjomuise project in Windhoek, awarded by the National Housing Enterprise (NHE) of Namibia, consists of the construction of 2523 residential units and is programmed for completion in three years and six months. This project will be the Company’s first venture outside the borders of South Africa with all construction being subcontracted to a local contractor in terms of the appointment. With the NHE taking ownership of all units, and in line with the Company’s South African policy, no construction will be undertaken on risk. Management is satisfied that project and payment risk can be controlled and managed in terms of the contract. The project in Namibia will complement the strong pipeline of existing projects to be rolled out over the next 5 to 6 years in South Africa. Construction on the existing R17 billion pipeline of secured projects has commenced with R15 billion worth of revenue still to be accounted for over the next 5 to 6 years. Taking development risk into account, management is of the view that about R 10 billion of the pipeline can be executed over the next 5 to 6 years. A healthy balance in exposure to the Public and Private sectors ensures that sufficient flexibility with regards to exposure to specific segments of the market exists. With construction on six projects in three different provinces currently contributing to revenue, risk and exposure to development partners is currently well balanced. Construction on another four projects will commence during 2014 which will not only contribute to revenue but will spread risk even further. The pipeline consists of more than 50 000 residential units, being a combination of Fully Subsidized, Social housing, GAP FLISP (Finance Linked Individual Subsidy Programme) and Rental housing, Affordable Housing and a small portion of exposure aimed at the mid to high segment of the residential market. In order to address capacity, the company has appointed an external contractor to assist with the construction of units in the Western Cape and structures have been implemented to ensure that quality remains of the highest standard. BP Malherbe (Chief executive officer) WJ Lategan (Financial director) Johannesburg 20 February 2014 Directors: PF Radebe (Chairperson)*, BP Malherbe (Chief executive officer), WJ Lategan (Financial director), FJ Steyn, DN Steyn, JB Gibbon*#, H Ntene*, R Patmore*# ,ME Gama*#) (*Non-executive) (#Independent) Registered office: 1st Floor, Cedarwood House, Ballywoods Office Park, 33 Ballyclare Drive, Bryanston 2196. (Private Bag X33, Craighall 2024) Transfer secretaries: Computershare Investor Services (Pty) Ltd 70 Marshall Street, Johannesburg 2001 (PO Box 61051, Marshalltown 2107) Sponsor: Grindrod Bank Limited Auditors: PricewaterhouseCoopers Inc. www.calgrom3.com Date: 20/02/2014 09:00:00 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.