THE DON GROUP LIMITED - Disposals Update

Disposals Update

                                    THE DON GROUP LIMITED
                              Incorporated in the Republic of South Africa
                                (Registration number 1946/023123/06)
                              Share code: DON ISIN: ZAE000008462
                                              (“The Don”)


                                          DISPOSALS UPDATE



 DISPOSALS UPDATE

 Shareholders are referred to the announcements released on SENS on 11 July 2012, 8 August 2012,
 22 August 2012 and 5 September 2012 and using the terms defined therein unless otherwise stated,
 are advised that the circular containing full details of the disposals of the Sandton 3 and Sandton 1
 Properties, the Beach Road Property and the Sandton 4 Property (“the Disposals”) is currently being
 finalised. It is intended that the circular will be distributed to shareholders on or about 25 September
 2012.

 PRO FORMA FINANCIAL EFFECTS
 The table below sets out the unaudited pro forma financial effects of the Disposals on The Don’s
 earnings per share, headline earnings per share, net asset value per share and tangible net asset
 value per share.
 The unaudited pro forma financial effects have been prepared to illustrate the impact of the Disposals
 on the reported financial information of The Don for the six months ended 31 December 2011, had
 the Disposals occurred on 1 July 2011 for statement of comprehensive income purposes and on
 31 December 2011 for statement of financial position purposes.
 The unaudited pro forma financial effects have been prepared using accounting policies that comply
 with IFRS and that are consistent with those applied in the audited results of The Don for the twelve
 months ended 30 June 2011 as well as the unaudited results for the six months ended 31 December
 2011.
 The unaudited pro forma financial effects which are the responsibility of the directors are provided for
 illustrative purposes only and, because of their pro forma nature may not fairly present The Don’s
 financial position, changes in equity, results of operations or cash flow.

                                               After
                                          Sandton 3
                                       and Sandton
                                        1 Properties
                                       Disposal and                    After
                                          Sandton 4              Beach Road
                            Before the     Property           %     Property     %                After all   %
                            Disposals      Disposal       Change    Disposal Change             Disposals Change
Basic earnings per share
(cents)                          (6.89)          (5.98)    (13.17)           (5.62)   (18.40)      (4.44)   (35.35)
Headline earnings per
share (cents)                    (5.99)          (4.80)    (19.90)           (6.78)    13.15       (4.46)   (25.57)
Net asset value per share
(cents)                          38.92           37.54       (3.53)          39.38      1.18       38.00     (2.35)
Tangible net asset value
per share (cents)                38.92           37.54       (3.53)          39.38      1.18       38.00     (2.35)
Weighted average
number of shares in issue
(000’s)                          294 485           294 485                     294 485                  294 485
Total number of shares in
issue (000’s)                    294 485           294 485                     294 485                  294 485
 Notes:
 1.   The amounts in the "Before the Disposals" column have been extracted from the interim consolidated
      financial results of The Don at 31 December 2011. The Company's financial year end is 30 June.
 2.   The "After Sandton 3 and Sandton 1 Properties Disposal and Sandton 4 Property Disposal" column reflects
      the effects of the disposal of the Sandton 3 and Sandton 1 Properties for a total consideration of
      R54.5 million and the Sandton 4 Property for a total consideration of R12.9 million.
      Interest paid has been reduced on the assumption that the liabilities within the group will be settled upon
      receipt of the cash proceeds from disposal.
 3.   The "After Beach Road Property Disposal" column reflects the effects of the disposal of the Beach Road
      Property for a total consideration of R23.0 million.
      Interest paid has been reduced on the assumption that the liabilities within the group will be settled upon
      receipt of the cash proceeds from disposal.
 4.   The effects on basic earnings per share and headline earnings per share are calculated based on the
      assumption that the Disposals were effected on 1 July 2011.
 5.   The effects on net asset value per share and tangible net asset value per share are calculated based on the
      assumption that the Disposals were effected on 31 December 2011.
 6.   The "After Sandton 3 and Sandton 1 Properties Disposal and Sandton 4 Property Disposal" column
      represents the financial effects on the “Before the Disposals” column.
 7.   The "After Beach Road Property Disposal" column represents the financial effects on the “Before the
      Disposals” column.
 8.   The “After all Disposals” column represents the financial effects, after the "After Sandton 3 and Sandton 1
      Properties Disposal and Sandton 4 Property Disposal" column and the "After Beach Road Property
      Disposal" column on the “Before the Disposals” column.


 Johannesburg
 19 September 2012

 Sponsor
 Merchantec Capital

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