MACMAHON HOLDINGS LIMITED — Capital/Financing Update 2012

Dec 19, 2012

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20 December 2012

NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES

Macmahon issues shares under the institutional component of its Entitlement Offer

Macmahon Holdings Ltd (ASX:MAH) is pleased to announce it has successfully completed the issue of fully paid ordinary shares to institutional shareholders following the entitlement offer announced on Wednesday, 12 December 2012 ("Entitlement Offer").

Macmahon has today issued 263,521,900 new shares under the institutional component of the Entitlement Offer, raising gross proceeds of approximately $42 million. These shares will commence trading on the ASX tomorrow, Friday, 21 December 2012.

Following the issue of the above shares under the institutional component of the Offer, the number of Macmahon shares on issue is 1,020,539,461.

The retail component of the Entitlement Offer ("Retail Entitlement Offer") opened on Wednesday, 19 December 2012, and will close at 5.00pm (Perth time) on Monday, 14 January 2013. The dispatch of the retail offer booklet to eligible retail shareholders occurred on Wednesday, 19 December 2012.

The Retail Entitlement Offer is fully underwritten and is expected to raise gross proceeds of approximately $38 million.

Shareholder enquiries

Any questions regarding the Retail Entitlement Offer should be directed to the Macmahon Entitlement Offer Information Line on 1300 380 630 (within Australia) or +61 (03) 9415 4679 (from outside Australia) at any time from 9.00am to 5.00pm (Perth time) Monday to Friday during the Retail Entitlement Offer period or contact your stockbroker, accountant or other independent professional adviser.

Further information in relation to the matters described in this announcement is set out in an investor presentation released on Wednesday, 12 December 2012 to ASX by Macmahon and the retail offer booklet released to ASX by Macmahon on Wednesday 19 December 2012. The investor presentation and retail offer booklet contain important information, including important notices, key risks and key assumptions in relation to certain forward-looking information in this document.

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Not for release or distribution in the United States

This announcement has been prepared for publication in Australia and may not be released or distributed in the United States. This announcement does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States. The new shares to be offered and sold in the Entitlement Offer have not been, and will not be, registered under the U.S. Securities Act of 1933 (as amended) (the “Securities Act”) and may not be offered or sold in the United States except in transactions exempt from, or not subject to, the registration requirements of the Securities Act and applicable U.S. state securities laws.

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For further information, please contact:

Investor Relations Theresa Mlikota Chief Financial Officer +61 407 470 859 Media Relations Joeley Pettit-Scott Acting Group Communications Manager +61 467 775 376

About Macmahon

Macmahon is a leading Australian contract mining and construction company with major projects throughout Australia, in New Zealand, South East Asia and Africa.

An ASX listed company, Macmahon has played a major role in the delivery of many of Australia’s largest multi-disciplinary mining and construction projects throughout its 49 year history.

Macmahon offers the full range of underground and surface mining services and comprehensive construction capabilities spanning transport, marine, water and resource infrastructure services.

With a commitment to providing end to end services, Macmahon’s reputation for outstanding teamwork, integrity and commitment to the environment is underpinned by the company’s core value - safety.

Visit www.macmahon.com.au for more information.

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