Introduction The HCI board of directors (“Board”) has completed a process of assessing the strategic options in respect of HCI’s investment in Montauk Energy Holdings, LLC (“Montauk”), and is pleased to confirm its intention to proceed, subject to the receipt of necessary regulatory approvals, with a separate listing of HCI’s interest in Montauk on the securities exchange operated by the JSE Limited ("JSE") (“Montauk Listing”) and the unbundling of HCI’s interest in Montauk to HCI shareholders (“Unbundling”). The Board is of the view that the proposed Montauk Listing and the Unbundling will best serve the interests of HCI shareholders, will improve the public profile and general public awareness of Montauk and will enhance HCI shareholder value. The Montauk Listing and Unbundling will also allow HCI shareholders the flexibility to maintain, increase or decrease their investment in Montauk based on their assessment of Montauk’s prospects. Overview of Montauk Montauk, a private company headquartered in Pittsburgh, Pennsylvania in the United States, is an alternative energy company that for over 20 years has engaged solely in the development, ownership and operation of landfill methane recovery and processing facilities. Montauk produces and markets pipeline quality biomethane and renewable electricity produced from landfill methane to end users. In addition, it produces and markets greenhouse gas reduction credits from the beneficial destruction of landfill methane. Montauk’s experience and expertise includes: - Pipeline quality renewable natural gas production - Renewable electric power generation - Carbon reduction and offset credits - Renewable energy credits - Landfill gas collection system operations Montauk has thirteen operating projects located in Pennsylvania, New Jersey, Oklahoma, Ohio, Texas, and California. Montauk’s current portfolio of operating assets include four landfill methane to pipeline quality renewable natural gas facilities with an installed capacity to produce approximately thirty-five million standard cubic feet per day of landfill gas and nine landfill methane to renewable electric power generation facilities with an installed capacity to produce approximately forty-five megawatts of renewable electric power. The Montauk Listing and Unbundling HCI International Holdings Limited (“HCI International”) is a subsidiary of HCI which holds the Group’s indirect interest in Montauk. The Montauk Listing and Unbundling will be implemented by listing HCI Internationals’ ordinary shares on the JSE and subsequently unbundling these shares to HCI shareholders on a pro rata basis. HCI International will issue a pre-listing statement to HCI shareholders in which additional information will be provided in respect of the proposed Montauk Listing and Unbundling. It is expected that the Montauk Listing will take place in the second half of 2014, and there is no intention to raise fresh capital on Listing as HCI International is well capitalised for its current requirements. The Montauk Listing and the Unbundling are subject to various conditions including JSE and South African Reserve Bank approval. A further announcement regarding the Montauk Listing and Unbundling will be made to HCI shareholders in due course.