Repudiation and Termination of Leonardo Contract AVENG LIMITED (Incorporated in the Republic of South Africa) (Registration number: 1944/018119/06) Share code: AEG Share ISIN: ZAE000194940 ("Aveng", "the Company") REPUDIATION AND TERMINATION OF LEONARDO CONTRACT Aveng has received a notice purporting to terminate the contract for the construction of the Leonardo in Sandton (“the Contract”) from Seventy Five on Maude (Pty) Limited, which is part of Mr. Bart Dorrestein’s Legacy Group (“the Employer”). Aveng entered into the Leonardo Contract in October 2015. In the intervening period, the project suffered delays, the responsibility and consequence of which are the subject of various disputes, dealt with in terms of the agreed dispute resolution mechanisms. Aveng’s position is that the grounds for termination relied on by the Employer are incorrect, inaccurate and ill- conceived, and are accordingly denied. Furthermore, Aveng is of the view that the Employer is itself in material breach of the Contract, which precludes the possibility of a valid termination. Therefore, the action taken by the Employer amounts to a clear repudiation of the Contract. Aveng has accepted the repudiation and as a result has consequently terminated the Contract on the basis of this repudiation. Aveng has fully reserved its rights and intends to recover its damages resulting from the termination. Aveng considers the building to be practically complete for the purposes of its intended use. The Employer has made a call on the Construction Guarantee (“the Bond”), procured by Aveng as part of the Contract. The call was made on the basis of the Employer's termination of the Contract. The value of the Bond is R87.4 million. This will be dealt with within Aveng’s existing financing arrangements. Aveng is accordingly considering its position and taking advice as to what remedies it will have recourse to in respect of this, as it considers the call on the Bond to be incorrect for the reasons outlined above. Melrose Arch 09 January 2020 JSE Sponsor UBS South Africa Proprietary Limited Legal advisors Pinsent Masons Michael Canterbury Group Executive: Strategy & Investor Relations Tel: 011 779 2979 Email: michael.canterbury@avenggroup.com Date: 09-01-2020 02:00:00 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.