Voluntary update in respect of the Strategic Review ELB GROUP LIMITED Incorporated in the Republic of South Africa (Registration number 1930/002553/06) ISIN: ZAE000035101 JSE Code: ELR (“ELB” or “the Company” or “the Group”) VOLUNTARY UPDATE IN RESPECT OF THE STRATEGIC REVIEW Shareholders are referred to the cautionary announcement and subsequent renewals thereof, the last of which was dated 30 April 2019, and the withdrawal of the cautionary announcement dated 17 May 2019, in terms of which shareholders were advised, inter alia, that ELB had commenced a strategic review of the Company, its operations and capital structure, with a view to positioning it to ensure the sustainability of operational performance and working capital requirements (“the Strategic Review”). The Company wishes to provide shareholders with further information as to the reasons for the cautionary announcement and the subsequent withdrawal thereof. As the Company indicated in the interim results for the period ended 31 December 2018, released on SENS on 5 April 2019, the results for the period were dominated, and severely impacted, by the losses incurred on the Gamsberg Zinc project in the Northern Cape (“the Project”), currently in the final stages of performance testing by ELB Engineering Services Proprietary Limited (“Engineering Services”). The delay in the final performance testing on the Project negatively impacted the timing of the cashflows, and along with the losses incurred on the Project, the Engineering Services segment was placed under severe working capital constraints. The losses incurred on the Project had a negative impact on Group operations and cashflow and as a consequence the Company was required to undertake the Strategic Review. The Strategic Review process included the conclusion of a final contract close-out agreement with the Project client, the conclusion of settlement agreements with all the Project external creditors, the sale of B&W Instrumentation and Electrical Proprietary Limited (“B&W”) (as announced on SENS on 26 April 2019) and negotiating additional financing facilities with the Group’s existing lenders, insurers, and other financial institutions. Following the conclusion of the aforementioned final contract close-out agreement with the Project client, the conclusion of settlement agreements with all the Project external creditors and the sale of B&W, the board of directors of ELB is satisfied that the Strategic Review has been completed, with no further immediate quantifiable changes expected to the Company, its operations or its capital structure, that are not in the ordinary course of business. All other projects in the Engineering Services segment continue to perform in line with budget and expectation and similarly the other segments of the Group continue to perform in line with budget and expectation. The information contained in this announcement is the sole responsibility of the board of directors of ELB and has not been reviewed or reported on by the Company’s auditors. Rivonia 28 May 2019 Sponsor and Corporate Advisor Questco Corporate Advisory Proprietary Limited Date: 28/05/2019 05:39:00 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.