Update to shareholders Stefanutti Stocks Holdings Limited (Registration number 1996/003767/06) Share code: SSK ISIN: ZAE000123766 (“Stefanutti Stocks” or “the company” or “the group”) UPDATE TO SHAREHOLDERS The board of Stefanutti Stocks hereby provides shareholders with an update on the following two issues as reported in the Reviewed Condensed Consolidated Results of Stefanutti Stocks for the 12 months ended 28 February 2019 (Results): 1. Funding Plan update As outlined in the Results, the group is pursuing raising funding through the Funding Plan as a result of short-term liquidity pressure. Shareholders are advised that R120 million has been received by the group as specific ring-fenced project funding through the first component of the Funding Plan. Further projects are being evaluated to raise additional ring-fenced project funding as part of the Funding Plan. The remaining aspects of the Funding Plan are also being separately pursued in the manner envisaged in the Funding Plan, and shareholders will be advised accordingly. 2. Dispute Adjudication Board (DAB) ruling With respect to the large public sector power project in which the group is in dispute with the relevant client (employer), a ruling has been received from the DAB relating to the group's (as contractor) ongoing funding of the Preliminary & General (P&G) costs (prolongation costs). The DAB found that the employer’s interferences with the engineer's determinations was a breach of the relevant contract, and consequently the DAB set aside the engineer’s nil returns for prolongation costs for the months of December 2018 to February 2019. The DAB did not grant the order for payment sought by the contractor but ruled that the monthly claims are to be returned to the engineer for its fair determination in accordance with the terms of the contract. On the basis of the ruling by the DAB, which requires the engineer to fairly determine the amounts due to the contractor, the group will continue to pursue payment of prolongation costs for December 2018 to February 2019 and for the period post February 2019. The group continues to deal with this specific matter whilst also pursuing its other contractual entitlements with respect to other claims and/or compensation events in terms of the claim and dispute resolution processes set out in the relevant contract. In addition, shareholders are advised that, the group’s order book at the end of June 2019 was R12,6 billion. 26 July 2019 Johannesburg Sponsor: Bridge Capital Advisors Proprietary Limited Date: 26/07/2019 09:44:00 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.