MACMAHON HOLDINGS LIMITED — Capital/Financing Update 2017

Apr 2, 2017

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3 April 2017

Macmahon selected as preferred mining contractor to develop Byerwen Coal Mine in Queensland

Macmahon Holdings Limited ACN 007 634 406 ( Macmahon or the Company , ASX:MAH) is pleased to announce its selection as the preferred mining contractor for the establishment and operation of the new Byerwen Coal Mine near Glenden in Queensland’s Bowen Basin, subject to the grant of Mining Leases.

Macmahon has today been notified by the project proponent, QCoal Pty Ltd, of its intention to enter into exclusive negotiations with Macmahon in order to finalise terms and execute a mining services contract for the Byerwen Mine. The proposed contract is expected to be based initially on a cost reimbursable model, moving to a hybrid of schedule of rates and cost reimbursable model within the first year.

Macmahon will now commence mobilisation and other preparatory activities, with its scope of work in the proposed contract expected to include the full range of open cut mining and bulk earthworks related services for at least three years. At this stage, the potential total material movement over this period is indicatively 50 million bank cubic metres per year. The potential value of the mining contract over its life, if ultimately agreed between the parties, is still to be determined.[1]

Macmahon Chief Executive Officer, Michael Finnegan, said Macmahon was very encouraged to be selected by QCoal as the preferred contractor for the Byerwen Mine.

“This is a quality project which will deliver significant benefits to the local and State economy,” Mr Finnegan said.

“While there is still a lot of detail to be negotiated, we are buoyed by our selection as preferred contractor, which highlights our ability to compete for desirable new projects.”

“If we are successful in securing this opportunity, the project will mark our re-entry into the Queensland coal market following the successful conclusion of our Cameby Downs contract in 2013 and our Eaglefield contract in 2014 where we operated for 10+ years,” Mr Finnegan said.

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For further information, please contact:

Christian Sealey General Manager – Investor Relations & Communications +61 497 828 300

About Macmahon

Macmahon is a leading Australian company offering the complete package of mining services to miners throughout Australia and in New Zealand, South East Asia and Africa.

An ASX listed company, Macmahon’s diverse and comprehensive capabilities provide an end to end service offering to its mining and engineering clients.

1 To avoid any doubt, there is no guarantee that a final contract for Macmahon to perform the mining works will eventuate, and Macmahon makes no representation about the financial implications for the Company if a final contract were to eventuate.

Macmahon Holdings Ltd ABN 93 007 634 406 15 Hudswell Road, Perth Airport, WA 6105 PO Box 198 Cannington WA 6987 T (08) 9232 1000 F (08) 9232 1001 info@macmahon.com.au www.macmahon.com.au

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Macmahon’s extensive experience in both surface and underground mining has established the Company as the contractor of choice for resources projects across a range of locations and commodity sectors.

With an international footprint, 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.

DISCLAIMER AS TO FORWARD LOOKING STATEMENTS

This announcement contains forward looking statements, including statements of current intention, statements of opinion and predictions as to possible future events. These forward looking statements are based on, among other things, Macmahon's assumptions, expectations, estimates, objectives, plans and intentions.

Forward looking statements are subject to inherent risks and uncertainties. Although Macmahon believes that the expectations reflected in any forward looking statement included in this announcement are reasonable, no assurance can be given that such expectations will prove to be correct. Actual events, results or outcomes may differ materially from the events, results or outcomes expressed or implied in any forward looking statement.

Except as required by applicable law or the ASX Listing Rules, Macmahon does not undertake to update or revise these forward looking statements, nor any other statements whether written or oral, that may be made from time to time by or on behalf of Macmahon, whether as a result of new information, future events or otherwise. None of Macmahon (nor any of its officers and employees), or any other person named in this announcement, or any person involved in the preparation of this announcement makes any representation or warranty (express or implied) as to the accuracy or likelihood or fulfilment of any forward looking statement, or any events or results expressed or implied in any forward looking statement, except to the extent required by law. You are cautioned not to place undue reliance on any forward looking statement.

The forward looking statements in this announcement reflect views held only as at the date of this announcement. This announcement does not take into account the individual investment objectives, financial or tax situation or particular needs of any person. It does not contain financial advice.

Macmahon Holdings Ltd ABN 93 007 634 406 15 Hudswell Road, Perth Airport, WA 6105 PO Box 198 Cannington WA 6987 T (08) 9232 1000 F (08) 9232 1001 info@macmahon.com.au www.macmahon.com.au