Zccm Investments Holdings Plc Regulatory News (ZCC)

ZCCM INVESTMENTS HOLDINGS PLC

[Incorporated in the Republic of Zambia]

Company registration number: 771

Share Code: ZCCM-IH

ISIN: ZM0000000037

PRESS RELEASE

ZCCM INVESTMENTS HOLDINGS PLC

ZCCM Investments Holdings PLC (ZCCM-IH) today announces that it has concluded the restructuring of its balance sheet. This momentous achievement is the result of the efforts by the Government of the Republic of Zambia (GRZ), in its capacity and role as the majority shareholder, to strengthen ZCCM-IH's balance sheet in order to reposition and attract new investment into the company. As part of the said restructuring, GRZ has converted the debt owed to it by ZCCM-IH into equity through a share rights issue conducted on the Lusaka Stock Exchange (LuSE).

By a Debt Settlement Agreement between GRZ and ZCCM-IH signed on 25 March 2014, ZCCM-IH's net indebtedness of ZMW 1,829,298,173.06 to GRZ was converted into equity, thereby satisfying the issuance and subscription for 87.6% of the new rights offer shares by GRZ.

Simultaneously, ZCCM-IH has raised fresh capital on the 12.4% portion of the rights offer which has been underwritten by the National Pension Scheme Authority (NAPSA) on a Claw-Back basis. The Claw- Back arrangement allows the Minority shareholders of ZCCM-IH who hold 12.40% shareholding in the Company to also fully participate in the share rights offer at the same price as GRZ.

At the Extra Ordinary General Meeting held by ZCCM-IH on 24 February, 2014, the shareholders unanimously resolved to recapitalize ZCCM-IH via a Claw back rights offer transaction.

This development means that the huge historical debt owed to GRZ by ZCCM-IH has now been expunged from the balance sheet of ZCCM-IH. The Company now has a clean balance sheet, fresh capital injection and is repositioned to unlock and maximize value for the benefit of all shareholders going forward.

CONTACTS

For further information, the Company Secretary can be contacted as follows:-

Mr. Chabby Chabala,

Company Secretary:

Telephone: + 260 211 221023 / 228833

Email: cchabala@zccm-ih.com.zm

www.zccm-ih.com.zm

By Order

Company Secretary

25 March 2014