Financial Results for the Year Ended December 31, 2018, Toronto Stock Exchange: FAH.U

NO DISTRIBUTION TO UNITED STATES PRESS OR DIFFUSION SERVICES IN THE UNITED STATES

(Note: All dollar amounts in this press release are in US dollars unless otherwise indicated. Financial results are prepared in accordance with the recognition and measurement requirements of International Financial Reporting Standards, unless otherwise indicated, and are not audited.)

TORONTO, Feb. 14 2019 (GLOBE NEWSWIRE) – Fairfax Africa Holdings Corporation (TSX: FAH.U) reports a net loss of $ 60.6 million for fiscal 2018 (net income of $ 1.06 per diluted share), for the year Fiscal year 2017 $ 23.5 million (diluted net earnings per share of $ 0.54), reflecting the decrease in net unrealized gains on investments and foreign exchange gains in fiscal 2018.

The highlights of 2018 (with comparisons to 2017 unless otherwise indicated) are:

• The net loss of $ 60.6 million for fiscal 2018 reflects a net change in unrealized investment losses of $ 40.7 million, mainly due to a decrease in Market price of the company's interest in the Atlas Mara public company that has depreciated $ 49.6 million and an unrealized loss of a derivative bond related to the supply of fees of $ 5.7 million related to Colid's (Consolidated Infrastructure Group Limited) rights offering, partially offset by an increase of $ 18.1 million in the Company's private equity interest in the indirect interest in AFGRI. FY 2018 also suffered the negative impact of net currency losses of $ 25.9 million.
• On December 31, 2018, the Company entered into a second amendment agreement with Nova Pioneer, on the same terms as the previous investment, to provide an additional investment of $ 10.0 million (including bonds and warrants). subscription). On January 11, 2019, approximately $ 4.3 million of additional investment in Nova Pioneer was completed.
• On December 13, 2018, the company signed a second secured loan agreement with AFGRI, under which Fairfax Africa provided $ 13.1 million in financing (180 million South African rand). The facility will earn interest at the South African prime rate plus 2.0%. As of December 31, 2018, the facility was not used by AFGRI. Subsequently, on January 21, 2019, the $ 13.1 million (180 million South African rand) was advanced to AFGRI and will expire on July 19, 2019.
• During the fourth quarter of 2018, the Company purchased for cancellation 108,224 subordinate voting shares under the terms of the normal course issuer bid at a cost of $ 1.0 million. dollars (approximately $ 9.05 per subordinate voting share). After December 31, 2018 and until February 14, 2019, the Company purchased for cancellation 573,737 Subordinate Voting Shares at a cost of $ 5.0 million (approximately $ 8.70 per share). subordinate vote).
• Common shareholders' equity as at December 31, 2018 was $ 603.1 million, or book value per share was $ 9.60, compared to $ 516.7 million, or book value per share was 10.21. $ as at December 31, 2017, a decrease of 6.0% mainly due to a net loss. loss in 2018, partially offset by the issuance of subordinate voting shares at $ 12.25 per share.

After December 31, 2018:

• On January 4, 2019, CIG finalized its previously announced rights offering for $ 57.2 million (800 million South African Rand). At the closing of the CIG Rights Offering, the Company acquired 178,995,353 common shares of CIG for a net cash consideration of $ 49.7 million (Rs. 696 million South African Rand) and invested a total net cash consideration of $ 53.8 million for a 49.1% interest in CIG.

There were 62.9 million and 50.6 million weighted average shares outstanding in the fourth quarters of 2018 and 2017 respectively. As at December 31, 2018, 32,811,965 Subordinate Voting Shares and 30,000,000 Multiple Voting Shares were outstanding.

The unaudited consolidated balance sheets, results and detailed earnings information follow and form part of this press release.

In the presentation of the company's results in this press release, management has included the basic book value per share. The basic book value per share is calculated by the company by dividing the shareholders' equity by the number of common shares outstanding.

Fairfax Africa is a holding company that aims to achieve long-term capital appreciation, while preserving capital, by investing in equity securities and public and private debt securities in Africa and African or international companies. other companies with customers, suppliers or companies mainly in Africa or dependent on it.

This press release may contain forward-looking information within the meaning of applicable securities legislation. Forward-looking statements may relate to the Company's future prospects and anticipated events or results and may include statements with respect to the financial position, business strategy, growth strategy, budgets, operations, financial results, income taxes, income taxes, dividends, projects and goals of the company. In particular, statements regarding the results, performance, achievements, prospects or future opportunities of the company or the African market are forward-looking statements. In some cases, forward-looking statements may be identified using prospective terminology such as "plans", "expect" or "do not expect", "is expected", "budget", "planned", "estimates" "," Anticipates "," intends "," does not anticipate "or" does not anticipate "or" believes ", or variations of those words and expressions or indicates that certain acts, Events or results "could", "could", "", "could", "will" or "will be taken", "will occur" or "will be reached".

Forward-looking statements are based on the opinions and estimates of the Company as at the date of this press release and are subject to known and unknown risks, uncertainties, badumptions and other factors that may cause actual results, the level The business, performance or achievements must be materially different from those expressed or implied in these forward-looking statements, including, but not limited to, the following: the taxation of the Company and its subsidiaries; substantial loss of capital; long-term nature of investment; limited number of investments; geographic concentration of investments; potential lack of diversification; fluctuations in the financial markets; the rate of completion of investments; risk of position or significant control; minority investments; clbadification of business investment and structural subordination; follow-up investments; early repayment of debt securities; risks related to the disposal of investments; interim financing; dependence on key personnel effect of costs; The performance fee could prompt Fairfax to make speculative investments; operational and financial risks of investments; badignment of staff; potential conflicts of interest; the misconduct of an employee by the portfolio advisor could harm the company; evaluation methodologies involve subjective judgments; prosecution fluctuation of foreign currencies; derivative risks; unknown benefits and risks of future investments; resources could be wasted in the search for investment opportunities that are ultimately unfinished; investments may be made in foreign private companies for which information is unreliable or unavailable; illiquidity of investments; competitive market for investment opportunities; use of leverage; invest in leveraged companies; Regulation; restrictions on investment and repatriation; aggregation restrictions; restrictions on debt securities; pricing guidelines; Emerging Markets; corporate disclosure, governance and regulatory requirements; legal and regulatory risks; the volatility of African securities markets; political, economic, social and other factors; governance issues, risk; African tax law; law changes; exposure to a permanent establishment; enforcement of rights; small business risk; due diligence and behavior of potential investment entities; African economic risk; the use of the risks of trading partners; risks of natural disasters; public debt risk; and economic risk. Additional risks and uncertainties are described in the Company's Annual Information Form dated March 9, 2018, available on SEDAR at www.sedar.com and on the company's website at www.fairfaxafrica.ca. These factors and badumptions are not intended to represent a complete list of factors and badumptions that may affect the Company. However, these factors and badumptions must be carefully considered.

Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking statements, there may be other factors that make the results unexpected, estimated or desired. There can be no badurance that such statements will prove to be accurate because actual results and future events could differ materially from those anticipated in such statements. Therefore, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements contained in this document, except as required by applicable securities laws.

Informations about
CONSOLIDATED BALANCE SHEETS
as of December 31, 2018 and December 31, 2017
(unaudited – in thousands of US dollars)

Informations about
CONSOLIDATED INCOME STATEMENT AND OVERALL RESULT
for the three and twelve months ended December 31, 2018 and 2017
(unaudited – in thousands of US dollars, except per share amounts)