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TRADING STATMENT

TRADING STATEMENT

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

HCI`s shareholders are informed that it is expected that HCI`s headline earnings per share for the six months ended 30 September 2008 will be between 120 cents and 130 cents, compared to 227 cents last year, and the basic earnings per share will be between 160 cents and 170 cents, compared to 339 cents last year. The drop in both the headline earnings per share and basic earnings per share is primarily due to the following non cash, non recurring charges to the group income statement:

R136 million fair value losses charged by Tsogo Sun to its income statement. These fair value losses relate to the mark to market of the group`s initial 5% investment in the issued share capital of Gold Reef Resorts Limited (“GRR”).

The group`s USA subsidiary Montauk Energy Corporation LLC (MEC) had as part of its price hedging strategy purchased natural gas price put contracts from Lehman Brothers Commodity Services, Inc. (LBCS). As a result of the credit impairment and subsequent bankruptcy of LBCS, MEC has at 30 September 2008 fully impaired the carrying value of the LBCS put contracts. The total pre-tax loss recognized by MEC in the six months under review relating to the LBCS hedges amounted to approximately $8.6 million (R70,6m).

The above information has not been reviewed or reported on by the Company`s auditors and the Company`s results for the six months ended 30 September 2008 are expected to be published on or about 13 November 2008.