TKG - Telkom SA Limited - Update regarding the potential strategic venture with

TKG - Telkom SA Limited - Update regarding the potential strategic venture with 
KT Corporation and further cautionary announcement                              
Telkom SA Limited                                                               
(Registration number 1991/005476/06)                                            
JSE share code: TKG                                                             
ISIN: ZAE000044897                                                              
("Telkom" or the "Company")                                                     
UPDATE REGARDING THE POTENTIAL STRATEGIC VENTURE WITH KT CORPORATION ("KT") AND 
FURTHER CAUTIONARY ANNOUNCEMENT                                                 
Shareholders are referred to the cautionary announcements dated 14 October 2011,
21 November 2011, 12 December 2011, 27 January 2012, 9 March 2012, 25 April     
2012, and 8 May 2012 regarding a potential strategic venture ("Potential        
Strategic Venture") between Telkom and KT (collectively "the Companies").       
In the announcement dated 8 May 2012, Telkom informed shareholders that the     
Companies had reached in principle agreement regarding the terms of the         
Potential Strategic Venture, subject to the fulfilment of certain pre-          
conditions, including receipt of in principle support for the Potential         
Strategic Venture by the Government of South Africa.                            
Shareholders are advised that on 31 May 2012 Telkom was informed by the         
Honourable Minister of Communications that the proposed transaction between the 
Companies had been presented to cabinet on 30 May 2012 and that cabinet had     
taken the decision not to support the transaction as proposed. The board of     
directors of Telkom will be engaging with the Honourable Minister of            
Communications to discuss cabinet`s decision and the implications thereof. A    
further announcement will be made in due course.                                
Further cautionary announcement                                                 
Shareholders are accordingly advised to continue exercising caution when trading
in the Company`s securities until a further announcement is made.               
1 June 2012                                                                     
Financial advisor and transaction sponsor to Telkom                             
Deutsche Bank                                                                   
Sponsor to Telkom                                                               
UBS South Africa (Pty) Ltd                                                      
Date: 01/06/2012 07:05:15 Supplied by www.sharenet.co.za                     
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