Growth-focused, SA-based drilling company lists on JSE

Johannesburg, South Africa. 20 December 2012. Leading global specialised drilling services company Master Drilling Group Limited (“Master Drilling” or “the Company”) listed its ordinary shares in the “Industrial Machinery” sector of the Main Board of the Johannesburg Stock Exchange (JSE) today, under the share code MDI.

The listing follows a successful private placement of 44.9 million new ordinary primary shares, 5.6 million secondary shares and 5.5 million over-allotment shares at R7.85 per share, which has raised R439 600 000 before expenses.

The Company intends using these proceeds primarily to fund its ambitious global growth strategy. Key will be the purchase of new drill rigs and associated equipment, so that Master Drilling can expand into new geographical markets.

At listing, Master Drilling has 148 265 491 ordinary shares in issue.

Founded in South Africa in 1986 by current MD Danie Pretorius and headquartered in Fochville, Master Drilling provides drilling services to major, mid-tier and junior mining companies – across a range of commodities and resources – throughout southern Africa, Latin America, Europe and the Middle East.

It also provides drilling services for civil engineering applications in a variety of emerging markets.

Directly and indirectly, the Company currently has 154 drill rigs deployed across its global footprint.

Elaborating on the Company’s track record and future strategy, Pretorius says: “Since its founding 26 years ago, Master Drilling has grown rapidly to become one of the global leaders in raisebore drilling. We have loyal, bluechip clients across Africa and Latin America, several of whom have used our services continuously for more than 20 years.

“Through both organic growth and strategic acquisitions, we intend to develop existing markets and to create new markets globally, while enhancing operational efficiencies and continuing our dedicated focus on quality and safety.

“We are proudly South African – ‘born and bred’ here, based here, and now listed here.

“We are bullish about the medium- and long-term prospects for the resources sector at home, on the African continent and globally, and we are extremely confident that our expertise, experience and South African pedigree will continue to serve our new shareholder base well into the future.”

Nicky Newton-King, JSE CEO, said: “We are delighted to welcome a local company with a successful global footprint to the JSE Main Board. Almost 30% of the JSE’s market capitalisation has a mining focus so it is appropriate that we offer another investment option which operates in support of this sector. We wish Master Drilling a successful listing experience and appreciate that it chose South Africa as its primary listing destination.”

For further information please contact:

Master Drilling Group Limited
Danie Pretorius, Chief Executive Officer
Andre Van Deventer, Chief Financial Officer
+27 (0)18 771 8100

Sasfin Capital (JSE Sponsor)
Noah Greenhill/Angela Teeling-Smith
+27 (0)11 809 7500

Renaissance Capital (Bookrunner)
John Porter
+44 (0)207 367 7777

Russell and Associates
James Duncan/Leigh King
+27 (0) 11 880 3924

Disclaimer

This media release has been prepared by Master Drilling Limited (“Master Drilling” or the “Company”) and contains information concerning Master Drilling, its subsidiaries, the proposed offering by Master Drilling, of its ordinary shares (the “Offer”) and the proposed listing on the securities exchange operated by the JSE Limited. This announcement has been prepared for information purposes only and may not be used for any other purpose.

This media release is only directed at persons who (i) are “qualified investors” within the meaning of Article 2(1)(e) of Directive 2003/71/EC (together with any applicable implementing measures in any Member State, the “Prospectus Directive”) as may be amended from time to time, (ii) are outside the United Kingdom and/ or (iii) have professional experience in matters relating to investments who fall within the definition of “investment professionals” contained in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) (the “Order”), or are persons falling within Article 49(2)(a) to (d) (high net worth companies, unincorporated associations, etc.) of the Order, or fall within another exemption to the Order (all such persons referred to in (i) to (iii) above together being referred to as “Relevant Persons”). Any person who is not a Relevant Person must not act or rely on this media release or any of its contents. Any investment or investment activity to which this media release relates is available only to Relevant Persons and will be engaged in only with Relevant Persons.”

This media release is not an advertisement for the purposes of the Prospectus Directive as may be amended from time to time and the Prospectus Rules of the Financial Services Authority in the United Kingdom. This media release does not constitute or form part of any offer for sale or subscription or any solicitation of any offer to buy or subscribe for any securities and neither this media release nor any part of it forms the basis of or may be relied on in connection with or act as an inducement to enter into any contract or commitment whatsoever.

Certain statements included herein may constitute forward-looking statements that involve a number of risks and uncertainties. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future.