General trading 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”) GENERAL TRADING UPDATE Subsequent to the update on, inter alia, general trading conditions and the trading statement issued on the 19th December 2017, the group has finalised most material aspects of its interim results for the six months ended 31 December 2017. However, the assessment of operating conditions on specifically the independent gas- and oil-fired combined cycle power plant EPC contract (Kpone contract) in Ghana remains in progress. The group is in the final completion phase of this contract. Management is currently confirming the final completion date, and the associated completion costs. The abovementioned assessment is being conducted by Group Five with the client, and is also being supported by an independent external professional review to provide an independent assessment of the time and cost to completion. The results of this review will inform the group’s assessment of the expected financial performance of the Kpone contract and the resultant impact on the previously-released trading statement. As advised in the SENS announcement of 19 December 2017, possible delay penalties are capped at $62.5 million. Against these possible delay penalties, the group is progressing its own contractual claims. The contract continues to receive daily senior and executive management attention, and ongoing direct involvement from the CEO, CFO and the main board risk sub-committee. This contract, together with the ongoing pressure in the South African construction market, as well as the initial short-term costs of the further rationalisation of overheads in the construction businesses and the corporate office, continues to place pressure on the group’s free cash resources. The group has been able to contribute positively to the free cash on hand through the recovery of long-outstanding debtors and other cash-enhancing initiatives. These cash recoveries and initiatives are expected to provide an enhancement to the group’s cash position over an 18-month period, with some initiatives already converting into free cash in Q2 F2018. The group is currently in discussions with its funding partners in an endeavour to establish short-term bridging funding where there is a mismatch between the timing of the expected cash recoveries from these initiatives and its short-term funding requirements. Regarding the sale of the Manufacturing cluster, multiple revised non-binding offers have been received by the board. In January 2018, the Independent Board selected its preferred bidder list, which has now progressed to initial due diligence stage. The disposal programme remains on track. Expressions of interest continue to be received for the group’s Investments & Concessions assets and operations. The board of directors of Group Five continues to objectively assess these, with a view to maximising shareholder value, notwithstanding that these assets and operations are deemed to be core to the group. The group will issue a detailed trading update and simultaneously confirm the date of release of its H1 F2018 results shortly. 01 March 2018 Sponsor Nedbank Corporate and Investment Banking Date: 01/03/2018 05:18:00 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.