Cautionary announcement - restructuring of Engineering Serv and Group Central and possible sale of ELB Australasia ELB GROUP LIMITED Incorporated in the Republic of South Africa (Registration number 1930/002553/06) ISIN: ZAE000035101 JSE Code: ELR (“ELB” or “the Company”) CAUTIONARY ANNOUNCEMENT IN RESPECT OF THE RESTRUCTURING OF THE ENGINEERING SERVICES BUSINESS AND GROUP CENTRAL FUNCTIONS AND POSSIBLE SALE OF ELB AUSTRALASIA The Board of Directors of ELB would like to inform shareholders that ELB will be undertaking a restructuring of its Engineering Services Business; a downsizing of its head office function; and a potential sale of its Australian equipment business, ELB Australasia (collectively the “Proposed Initiatives”). The requirement to implement the Proposed Initiatives has been driven by the depressed trading environment as well as the losses incurred on the Gamsberg Zinc Project. Following completion of the Proposed Initiatives, the Company is expected to be appropriately structured for the current market environment and will consist of a market leading African equipment distribution business offering a range of earthmoving, construction, mining and quarrying equipment from a single supplier; and a restructured and refocussed Engineering business operating within a clearly defined area of expertise. Depending on the timing of the completion of the Proposed Initiatives, and to the extent necessary, the Company may utilise bridging finance and/or undertake a capital raise in an appropriate form. The Proposed Initiatives will be subject to customary conditions precedent, including obtaining of shareholder and regulatory approvals as may be required. Further announcements relating to the Proposed Initiatives will be made in due course. The Proposed Initiatives may have a material impact on the Company’s share price, and accordingly, shareholders are advised to exercise caution when dealing in the Company’s securities, until detailed announcements are made. By order of the Board Johannesburg 8 January 2020 Corporate Advisor Apex Partners Holdings Proprietary Limited Sponsor Questco Corporate Advisory Proprietary Limited Date: 08-01-2020 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.