Emeco

Better Equipped | Equipment Solutions for Mining

Receipt of Unsolicited, Non-Binding Proposal

8 April 2015

On 7 April 2015, Emeco received an unsolicited, non-binding proposal from Orionstone Pty Ltd ("Orionstone") to effect a nil-premium merger of the two companies.

Orionstone is a private company that competes with Emeco in the rental of mining equipment in Australia. A number of the elements of the Orionstone proposal are incomplete including not having funding in place to effect the transaction.

Accordingly, there is no certainty that the Orionstone proposal will lead to a transaction and Emeco recommends that shareholders take no action at this time.

Emeco's Board and Management have extensively reviewed acquisition opportunities in the sector as part of the new strategy for Emeco, which was released to the market at the November 2014 AGM. Emeco remains actively engaged in considering a number of potential opportunities, including Orionstone.

Emeco has improved the strength of its business over the past year, with an improved competitive position, significant increases in its utilisation and a more flexible financing structure. The challenging market conditions in the mining sector are giving rise to potential opportunities and Emeco's improvements have enabled us to pursue them.

Emeco will make a further announcement in the event of any material developments.

Emeco has retained Macquarie Capital as its financial adviser.

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