Basil Read : TRADING STATEMENT

Basil Read Holdings Limited

(Incorporated in the Republic of South Africa) Registration Number 1984/007758/06

Share Code: BSR ISIN: ZAE000029781

("Basil Read" or "the Company")

In terms of the Listings Requirements of JSE Limited, companies are required to publish a trading statement as soon as they become reasonably certain that the financial results for the period to be reported on will differ by more than 20% from that of the previous corresponding period.

The company is finalising its results for the year ended 31 December 2016 and is required, in terms of paragraph 3.4(b) of the Listings Requirements of JSE Limited ("JSE"), to provide the guidance as set out therein.

Basil Read expects a loss per share for the year ended 31 December 2016, of between 84 and 103 cents (and a loss per share from continuing operations of between 39 and 48 cents) compared to the earnings per share of 137.27 cents for the previously reported corresponding period.

Shareholders are advised that Basil Read expects its headline loss per share for the year ended 31 December 2016, to be between 80 and 98 cents (and headline loss per share from continuing operations of between 35 and

42 cents), compared to the headline earnings per share of 143.87 cents for the previously reported corresponding period.

The financial information on which this trading statement is based has not been audited nor reviewed by the external auditors.

Shareholders are advised that the operating profit from continuing operations was negatively affected by the losses incurred on the Olifant's River water resource development project for the Trans Caledon Tunnel Authority ("TCTA") of R100 million, where the full loss is a subject of a claims process;

Further the profit before tax was affected by the following material and

/or non-recurring items:

• A present value charge of R41 million (R120 million payable over 12 years) for the expense pertaining to the settlement agreement (the "Settlement") concluded on 11 October 2016 with the South African government;

• A non-recurring loss of R32 million on the discontinued operations of the Pipeline business which now forms part of the Civils sub-division within Construction;

• A non-recurring loss of R34 million on the disposal of SprayPave (Pty) Ltd concluded on 1 February 2016.

Basil Read will publish its reviewed results for the year ended 31 December 2016, on Friday, 10 March 2017 on the Stock Exchange News Service ("SENS") of the JSE. An investor presentation will be hosted in Johannesburg only at 10:00 (SA time) on the same day. The company will provide the following investor services on Friday 10 March 2017, at 10:00 (SA time):

1. Live Call Access

PARTICIPANT TELEPHONE NUMBERS (Assisted)

Johannesburg (Telkom) 010 201 6800

South Africa (Toll Free) 0 800 200 648

Johannesburg (Neotel) 011 535 3600

CONFERENCE REPLAY

South Africa: 011 305 2030

UK Toll Free: 0 808 234 6771

Australia Toll Free: 1 800 091 250

USA and Canada Toll Free: 1 855 481 5363

International Toll: +27 11 305 2030 Replay Access Code: 11094

End Date: Mar 16, 2017

Available 1 hour after the end of the conference.

Participants will be required to state their name and company upon entering the call.

3. Live Webcast

A live webcast will also be available on www.basilread.co.za.

All related documents will be made available for download from www.basilread.co.za.

Johannesburg

28 February 2017

Company Secretary Andiswa T Ndoni

JSE Sponsor

Grindrod Bank Limited