MITCHELL SERVICES LIMITED — Capital/Financing Update 2016

Feb 3, 2016

4 February 2016

MITCHELL SERVICES LIMITED (ASX: MSV)

ASX Announcement

Major contract award and approval of ESOP

Mitchell Services Limited ( the Company ) is pleased to announce that it has secured a three-year contract with mining company South 32 Limited at its Cannington mine site.

The contract is for provision of surface and underground drilling and is anticipated to be worth approximately $14 million in revenue over the three year period.

In announcing the award, Chairman Nathan Mitchell said:

“Ensuring continuation of the surface work and securing the new underground work is extremely rewarding as it demonstrates the excellent working relationship that the two companies have fostered over the past 15 months.”

The Company will purchase a new underground rig to meet the requirements of the contract. This capital expenditure will be financed using traditional long term equipment finance with a commercial lender.

The Company also announces it has approved a long term incentive plan for Senior Management in the form of the Mitchell Services Employee Share and Option Plan (ESOP).

In speaking of the ESOP, Nathan Mitchell said:

“Following the recent asset sales, debt reduction and material contract awards the Company is set to take advantage of our strong position in the drilling market and capitalise on long term revenue streams from high quality Tier 1 clients. The Board agreed that the time is right to approve the ESOP with the focus including incentivising and retaining key management.”

Disclaimer

The announcement contains certain “forward-looking statements.” The words “anticipate”, “believe”, “expect”, “project”, forecast”, “estimate”, “likely”, “intend”, “should”, “could”, “may”, “target”, “plan” and other similar expressions are intended to identify forward-looking statements. Due care and attention has been used in the preparation of forecast information. Such forward looking statements are not guarantees of future performance and include known and unknown risks uncertainties and other factors, many of which are beyond the Companies control and may cause actual results to differ from those expressed or implied in such statements. There can be no assurance that actual outcomes will not differ materially from these statements.