Trading Statement and Restatement of Prior Year Results HULISANI LIMITED Incorporated in the Republic of South Africa (Registration number: 2015/363903/06) Share code: HUL ISIN: ZAE000212072 (“Hulisani” or “the Company”) TRADING STATEMENT AND RESTATEMENT OF PRIOR YEAR RESULTS In terms of the JSE Limited Listings Requirements, a listed company is required to publish a trading statement as soon as it becomes reasonably certain that the financial results for the next period to be reported on will differ by 20% or more from the financial results for the previous corresponding period. Investors are reminded that management and the Board consider cash generation to be the best measure of performance of the group, as it reflects the underlying strength of the assets held as investments. For purposes of this trading statement, it is necessary to compare the loss per share and the headline loss per share for the period ended 29 February 2020 to the restated figures for the period ended 28 February 2019 as set out below. Accordingly, the Company hereby advises that a reasonable degree of certainty exists that for the period ended 29 February 2020: Loss per share and headline loss per share will be between 54.0 cents and 64.0 cents, representing an increase of between 8% and 28% compared to the restated loss and headline loss per share of 50 cents for the period ended 28 February 2019. In line with our decision to focus on South Africa in the short to medium-term, we have taken the decision to write off our investment in Ignite Energy Projects (Pty) Ltd (“Ignite”). Ignite is a company focused on the development of short to medium term flexible power solutions throughout Africa. What distinguishes the Ignite business from other IPP developers is that the power solutions offered by Ignite are capable of fast implementation and are able to reach even the most remote areas on the continent. The potential for providing such solutions throughout Africa was the rationale for this transaction, but the environment has not been favourable to realising this vision and travel restrictions imposed after year-end have further impeded the asset’s ability to operate effectively. During the year, we reclassified interest earned from Legend Power Solutions (Pty) Ltd (“LPS”) to revenue. The reclassification is to align the disclosure of the income with the management of the Company’s investment portfolio and strategy of the business. As a result, revenue for the year has increased year-on-year. Group - Net cash from investing activities amounted to R32.8m for the current period compared to R8.4m in the prior period, while net cash movement for the period amounted to a cash outflow of R4m, compared to a cash outflow of R8.4m in the prior period. Company - Net cash from investing activities amounted to R44.9m for the current period compared to R14.4m in the prior period, while net cash movement for the period amounted to a cash inflow of R1.8m, compared to a cash outflow of R14.4m in the prior period. Our cash position is expected to be stronger year-on-year as our assets continue to report positive cash flow. We are confident that the underlying fundamentals of our assets will remain strong. Group results include the companies in the group, whereas company results relate to the results of Hulisani Limited, the holding company. RESTATEMENT OF PRIOR YEAR RESULTS As detailed in the condensed consolidated interim financial results, it was identified during the current financial period that an existing written put option (the “Put Option”) was not considered when accounting for an investment in GRI Wind Steel South Africa (Pty) Ltd (“GRI”) in the prior year. This Put Option obliges GRI Renewable Industry, S.L., Hulisani’s co-shareholder and the majority shareholder in GRI, to acquire all (and not a portion) of Hulisani’s shares in GRI, which provide significant downside protection to Hulisani’s investment for Hulisani. Accordingly, the equity investment in GRI has therefore been derecognised and a derivate financial asset has been recognised. The derivative financial asset is held at fair value with gains and losses relating to the fair value measurement recognised through profit or loss. As a result of the adjustment, loss per share and headline loss per share for the period ended 28 February 2019 have been restated. The restatement has resulted in an improvement in loss per share and headline loss per share of 31 cents per share. Previously reported Restated results results 28 February 29 February 2019 2019 cents cents Loss per share 81 50 Headline loss per share 81 50 The financial information on which this trading statement is based has not been reviewed or reported on by the auditor of the Company. The audited results for the period ended 29 February 2020 are expected to be published on or about 29 May 2020. Johannesburg 22 May 2020 Sponsor PSG Capital Date: 22-05-2020 03:45:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 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