B-BBEE Transaction In Respect Of KAP’s South African Logistics Business Implemented KAP INDUSTRIAL HOLDINGS LIMITED Incorporated in the Republic of South Africa (Registration Number 1978/000181/06) Share code: KAP ISIN: ZAE000171963 (“KAP” or “the Company”) B-BBEE TRANSACTION IN RESPECT OF KAP’s SOUTH AFRICAN LOGISTICS BUSINESS IMPLEMENTED 1. Introduction Shareholders are referred to the announcement published by the Company on 18 May 2018, regarding the agreement reached between KAP, Sakhumzi Foundation Empowerment Trust (“Sakhumzi”) and the FWG Pieters Trust (“Pieters Trust”), in terms of which Sakhumzi and Pieters Trust would, through two wholly owned subsidiaries, subscribe for newly issued share capital in Unitrans Supply Chain Solutions (Pty) Ltd (“USCS”), an indirectly wholly owned subsidiary of KAP, housing it’s South African contractual logistics and supply chain operations (“the B-BBEE Transaction”). As part of the B-BBEE Transaction, USCS would also acquire the equity in Xinergistix (Pty) Ltd (“Xinergistix”) not already owned by USCS from an entity associated with the Pieters Trust, being the CGL Custodian Trust No 124 (collectively the “Xinergistix Transactions”). All the conditions precedent contained in the agreements required to implement the BBBEE Transaction and the Xinergistix Transactions have been fulfilled and accordingly these transactions were successfully implemented on 3 September 2018. The ownership structure of USCS, following the implementation of the aforementioned transactions, was verified by an independent verification agency. The Company is pleased to confirm that the implementation of the B-BBEE Transaction resulted in USCS’ ownership structure being greater than 51% black owned and greater than 30% black women owned in terms of the B-BBEE Amended Codes of Good practice. By order of the Board 4 September 2018 Stellenbosch JSE Sponsor and corporate advisor: PSG Capital Proprietary Limited 1 Date: 04/09/2018 01:15:00 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.