Highlights:

· Announcement of a conditional agreement with Solenta, a specialist African commercial aviation group based in Johannesburg, for the provision and operation of three wet-leased aircraft on a full ACMI basis and the supply of other services over the next five years

· Solenta currently operates 49 aircraft under 5 of its own African AOCs and has strategic alliances, or AOCs pending, in a further 7 African countries

· Solenta has proven experience of providing ACMI/wet-lease services in Africa and has experience and regulatory approvals in operating the Embraer aircraft to which fastjet is transitioning

· Agreement will see Solenta become a c. 28% shareholder in fastjet

o fastjet has agreed to issue Solenta c. 95.6 million new ordinary shares to acquire a Solenta group SPV that will own the right to enter into the three ordinary course wet-leases and to receive discounts to the value of US$19.2 million on the future cost of services provided by Solenta

· fastjet also announces a proposed Placing by way of an Accelerated Book Build to raise gross proceeds of not less than US$28.8 million, which is supported by the Company’s major institutional shareholders

· Issue Price of 16.3 pence per share is a c.2% discount to the closing price on 4 January 2017

· Together, the Solenta Agreement and the Placing will, the Board believes:

o provide fastjet with the necessary infrastructure and capital to implement the final stages of its Stabilisation Plan and reach cash flow break even by Q4 2017

o further improve the cash flow profile of the business going forward

o allow the Company to leverage Solenta’s existing African business and provide the platform to grow and scale fastjet flexibly and cost effectively

o provide further working capital to pursue new strategic/growth opportunities

· Solenta will have the right to nominate two directors to the Board of fastjet. The Company also intends to further strengthen and balance the Board with additional Non-Executive Directors at the appropriate time.

Nico Bezuidenhout, Interim Chairman and CEO, commented:

“Our agreement with Solenta represents a good operational and strategic fit. It provides fastjet with access to fleet and related services which, together with the funds raised through our proposed Placing, will allow us to successfully implement the final stages of our Stabilisation Plan. We have made good progress with the Plan and the near-term priority continues to be to fully stabilise the business and to reach cash flow break even by the fourth quarter of this year. As well as helping us to achieve this objective, the fundraising and Solenta Agreement will also provide the platform from which to flexibly and cost-effectively pursue fastjet’s medium to long-term objective of becoming the first truly pan-African low-cost airline.”

This announcement contains inside information which is disclosed in accordance with the Market Abuse Regulation.