SACOIL HOLDINGS LIMITED

(Incorporated in the Republic of South Africa)

(Registration number 1993/000460/06)

JSE Share Code: SCL AIM Share Code: SAC

ISIN: ZAE000127460

(“SacOil” or “the Company” or “the Group”)

UPDATED TRADING STATEMENT FOR THE YEAR ENDED 28 FEBRUARY 2017

Shareholders are referred to the announcement released on the Johannesburg Stock Exchange News Service (“SENS”) and the Regulatory News Service of the London Stock Exchange (“RNS”) on 8 May 2017 in which the Company advised that earnings per share and headline earnings per share for the year ended 28 February 2017 are expected to be at least 20% lower relative to the prior comparative period (“the Announcement”). The Announcement indicated that the Company would provide a detailed trading statement which would highlight reasons for this deviation as set out below.

Foreign exchange losses

A significant component of the Group’s asset base is denominated in United States Dollars (“US$”). The strengthening of the Rand against the US$ during the period resulted in foreign exchange losses of R125 million which eroded this asset base. Future developments within the currency markets will continue to impact the Group’s assets. In comparison, the results of the Group for the year ended 29 February 2016 included foreign exchange gains totalling R155 million arising from the weakening of the Rand against the US$ during the period. These gains which arose from the revaluation of the US$ denominated asset base contributed to the overall profit recorded by the Group for the year ending 28 February 2016.

Provision for impairment of financial assets

The SacOil board of directors continues to pursue the recovery of US$19 million (R249 million as at 28 February 2017) owed to the Group by Transcorp pursuant to the termination of the Group’s participation in OPL281. Our legal counsel has estimated that the matter will likely be resolved during the second half of 2018. This continued delay has affected the valuation of the receivable and a provision for impairment of R55 million has been recognised to take into account the impact of the time value of money.

The Group has commenced a legal process to recover R116 million owed by Encha, however, as reported in our interim results the amount was fully impaired due to limited public information available to determine Encha’s net asset position as a basis to support the recovery of the amount owed. A provision for impairment of R116 million has therefore been raised.

The results of the Group as at 28 February 2017 therefore include an impairment provision of
R171 million relating to the Transcorp and Encha receivables as highlighted above. The board of directors remains confident in its ability to recover these amounts owed.

Reversal of provision for impairment of financial assets

Although the performance at Lagia fell below expectations, future estimates of oil prices and related costs have supported the reversal of R62 million of the Lagia impairment loss, compared to the impairment charge of R77 million in 2016.

Developments on Block III in the DRC have supported the reversal of the contingent bonus impairment of R31.8 million primarily due to changes in the estimated First Investment Date (“FID”) and First Oil Date (“FOD”) attributable to Block III (2016: FID: 2021, FOD: 2025). The fact that an agreement has been reached on the route of the oil export pipeline from Uganda has removed some of the timing risk.

Financial performance

As a result of the above, shareholders are advised that the basic loss per share for the year ended 28 February 2017, is expected to be between 6.31 cents and 6.64 cents, representing a decrease of between 485% and 505% from the basic earnings per share of 1.64 cents recorded for the year ended 29 February 2016.

The basic headline loss per share for the year ended 28 February 2017, which excludes the impact of any re-measurements of assets or liabilities, is expected to be between 7.74 cents and 7.95 cents, representing a decrease of between 844% and 864% from the basic headline earnings per share of 1.04 cents recorded for the year ended 29 February 2016.

The net asset value per share as at 28 February 2017 is expected to be between 18.23 cents and
23.85 cents, a decrease of between 15% and 35% when compared to the net asset value per share of 28.11 cents at 29 February 2016.

The results for the year ended 28 February 2017 will be released on SENS and RNS on or about Wednesday, 31 May 2017.

The financial information on which this trading statement is based has not been reviewed, audited or reported on by the Company’s external auditors. This statement is issued in compliance with paragraph 3.4(b) of the Listings Requirements of the JSE Limited.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

JSE Sponsor

PSG Capital Proprietary Limited

26 May 2017

For further information please contact:

SacOil Holdings Limited

Damain Matroos

+27 (0)10 591 2260

finnCap Limited (Nominated Adviser and broker)

Christopher Raggett and James Thompson

+44 (0) 20 7220 0500

Buchanan (Financial PR adviser) – UK

Ben Romney / Chris Judd / Madeleine Seacombe

+44 (0)20 7466 5000

ABOUT SACOIL

SacOil is a South African based independent African oil and gas company, dual-listed on the JSE and AIM. The Company has a diverse portfolio of assets spanning production in Egypt; exploration and appraisal in the Democratic Republic of Congo, Malawi and Botswana; and midstream projects including crude trading in Nigeria and a terminal project in Equatorial Guinea. Our focus as a Group is on delivering energy for the African continent by using Africa’s own resources to meet the significant growth in demand expected over the next decade. The Company continues to evaluate industry opportunities throughout Africa as it seeks to establish itself as a leading, full-cycle pan-African oil and gas company.