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GRAND PARADE INVESTMENTS LIMITED - Reviewed results for the year ended 30 June 2012

Release Date: 28/08/2012 10:17
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Reviewed results for the year ended 30 June 2012

Grand Parade Investments Limited  
Incorporated in the Republic of South Africa
Registration number: 1997/003548/06
ISIN: ZAE000119814
Share code: GPL 
("GPI" or "the company" or "the group")

Reviewed results for the year ended 30 June 2012

Highlights

-  Concluded agreement with Sun International to restructure certain common assets
-  Increased Revenue by 33%
-  Increased LPM GGR by 25%
-  Increased Net profit after tax by 1 206%
-  Increased Adjusted HEPS by 30%
-  Net cash generated of R335,9 million
-  Special dividend of 60 cents per share paid during January 2012 from the proceeds of the Sun International deal
-  Final ordinary dividend of 12,5 cents per share and a special dividend of 7,5 cents per share totaling 20 cents 
   per share recommended, representing 100% increase

CONDENSED GROUP STATEMENT
OF COMPREHENSIVE INCOME
                                                     Reviewed    Audited
                                                      30 June    30 June  
                                                         2012       2011          %
                                           Notes       R'000s     R'000s     change
Revenue                                    1          435 667    326 442        33%
Cost of sales                              2        (231 248)  (184 343)        25%
Gross Profit                                          204 419    142 099        44%
Operating costs                            3        (146 209)  (124 539)        17%
Profit from operations                                 58 210     17 560       231%
Profit from equity-accounted
investments                                4          130 465    119 566         9%
Profit on disposal of investments          5           60 248        151          
Reversal of impairment of investment       6              336     15 000          
Realisation of fair value reserve          7           35 588                    
Impairment of investment                                      (128 485)          
Net income before finance costs and  
taxation                                              284 847     23 792     1 097%
Finance income                                          1 781      1 745         2%
Finance costs                              8         (24 225)   (32 916)      (26%)
Net profit/(loss) before taxation                     262 403    (7 379)     3 656%
Taxation                                   9         (11 598)   (15 292)      (24%)
Net profit/(loss) for the year                        250 805   (22 671)     1 206%
Other comprehensive income
Unrealised fair value losses on available-
for-sale investments, net of tax                      (5 676)    (4 491)
Realisation of fair value reserve                    (35 588)          
Changes in reserves from equity
accounted investments, net of tax                                13 197
Total comprehensive income/(loss) for
the year                                              209 541   (13 965)
Net profit/(loss) for the year
attributable to:  
 Ordinary shareholders                               250 805   (22 671)
                                                      250 805   (22 671)
Total comprehensive income/(loss)
attributable to:
 Ordinary shareholders                               209 541   (13 965)
                                                      209 541   (13 965)
Basic and diluted earnings/(loss) per  
share (cents)                                           53,45     (4,89)     1 193%
Adjusted basic and adjusted diluted
earnings/ (loss) per share (cents)                      53,68     (4,95)     1 184%
Headline and diluted headline earnings 
per share (cents)                         10            34,75      19,13        82%
Adjusted headline and diluted adjusted
headline earnings per share (cents)       10            29,09      22,38        30%
Dividends paid per share (cents)*                       70,00       7,50       833%
  
* Final dividend declared in respect of the previous financial year and
  paid in December, which include the special dividend of 60 cents paid in
  January 2012.

                                           Reviewed      Audited
                                            30 June      30 June
                                               2012         2011
Headline earnings reconciliation              R'000       R'000s
Net profit/(loss) attributable to
ordinary shareholders                       250 805     (22 671)
Realisation of fair value reserve          (35 588)            
Reversal of impairment of investment          (336)     (15 000)
Profit on disposal of investments          (60 248)        (151)
Loss on sale of property, plant and
equipment                                       447          759
Impairment of investment                                128 485
Adjustments by jointly-controlled
entities                                                    412
 Loss on disposal of plant and
equipment                                                   412
Adjustments by associates                               (2 855)
 Realised investment profits                           (1 987)
 Profit on sale of investment                            (868)
Tax effect of above                           7 950        (285)
Headline earnings                           163 030       88 694
Reversal of employee share trust               (95)          751
Reversal of transaction costs                13 907        2 133
Change in intended recovery of jointly-
controlled entity                          (10 918)       10 918
Preference share redemption fee               2 100            
Reversal of cancellation fees              (32 271)            
Tax effect on above                             170            
Adjusted headline earnings                  135 923      102 496
Reconciliation of shares
Shares in issue (before deducting
treasury shares) (000's)                    460 680      470 460
Shares in issue (after deducting
treasury shares) (000's)                    459 510      468 240
Weighted average number of shares in
issue (000's)                               469 195      463 757
Adjusted weighted average number of
shares in issue (000's)                     467 166      457 937

The shares in issue and weighted average number of shares in issue have
been reduced by 1 170 000 treasury shares held by the GPI Share Incentive
Trust.

CONDENSED GROUP STATEMENT
OF FINANCIAL POSITION
                                                                 Reviewed        Audited
                                                                  30 June        30 June
                                                                     2012           2011
                                                    Notes          R'000s         R'000s
ASSETS
Non-current assets                                  11          1 405 914      1 631 715
Non-current asset held for sale                     12                        451 000
Current assets                                      13            461 804        112 179
Total Assets                                                    1 867 718      2 194 894
EQUITY AND LIABILITIES
Total equity                                        14          1 616 869      1 756 792
Non-current liabilities
 Deferred tax liabilities                                         11 525         23 618
 Cumulative redeemable preference shares           15            101 670        193 157
 Interestbearing loans and borrowings             15             37 134         89 500
 Provisions                                                          173            126
Current liabilities                                 16            100 347        131 701
Total Equity & liabilities                                      1 867 718      2 194 894
Net asset value (before deducting treasury
shares) (cents)                                                       351            373
Adjusted net asset value (after deducting treasury
shares) (cents)*                                                      352            375
Tangible net asset value (before deducting
treasury shares) (cents)                                              312            347
Adjusted tangible net asset value (after deducting
treasury shares) (cents)*                                             313            349
  
* The adjusted net asset value and adjusted tangible net asset value have
  been reduced by goodwill and intangible assets.

CONDENSED GROUP STATEMENT
OF CASH FLOWS
                                                         Reviewed      Audited
                                                          30 June      30 June
                                                             2012         2011
                                                           R'000s       R'000s
Cash flows from operating activities
Net profit/(loss) before taxation                         262 403      (7 379)
Non cash flow items
 Depreciation and amortisation                            38 610       36 010
 Loss on sale of property, plant and equipment               447          759
 Profit on disposal of investments                      (60 248)        (151)
 Reversal of impairment of investment                      (336)     (15 000)
 Realisation of fair value reserve                      (35 588)            
 Impairment of loans                                         217            
 Profit from equity-accounted investments              (130 465)    (119 566)
 Impairment of investment                                            128 485  
 Realisation of expenses previously recognised
  against share premium                                     1 189            
Adjustments for:  
 Finance costs per the statement of comprehensive
  income                                                   24 225       32 916  
 Finance income per the statement of comprehensive
  income                                                  (6 797)      (3 405)  
 Dividends received per the statement of
  comprehensive income                                   (26 971)      (2 009)
Net working capital changes                              (18 342)     (28 491)
Income tax paid                                          (25 704)     (11 907)
Finance income  operations                                 1 781        1 745
Net cash inflow from operating activities                  24 421       12 007
Cash flows from investing activities
Acquisition of plant and equipment                       (35 647)     (28 299)
Acquisition of land and buildings                        (25 002)            
Acquisition of intangible assets                          (3 672)      (2 577)
Proceeds from the disposal of plant and equipment             117          127
Proceeds from the disposal of investments                 733 935            
Loans advanced                                            (1 257)            
Proceeds from loan repayments                               1 110            
Net investments made in jointly controlled investment                (32 839)
Net cash paid for business combination                                (5 976)
Finance income  investments                                5 016        1 660
Dividends received                                        182 686      143 683
Net cash inflow from investing activities                 857 286       75 779
Cash flows from financing activities
Finance costs paid                                       (20 735)     (28 304)
Shares bought back                                       (24 321)            
Preference shares redeemed                              (125 726)     (24 163)
Dividends paid                                          (322 405)     (33 666)
Loans repaid                                             (52 000)     (16 000)
Finance lease raised                                          424        2 915
Finance lease repaid                                      (1 045)        (479)
Share issue expenses on new share issue                                  (33)
Net cash outflow from financing activities              (545 808)     (99 730)
Net increase/(decrease) in cash and cash equivalents      335 899     (11 944)
Cash and cash equivalents at the beginning of the
year                                                       69 248       81 192
Cash and cash equivalents at the end of the year          405 147       69 248

SEGMENTAL ANALYSIS
IFRS 8: Operating segments require a "management approach" whereby
segment information is presented on the same basis as that used for internal
reporting purposes to the chief operating decision maker/s who have
been identified as the Board of Directors. During the year management
changed their approach to reviewing the performance of the group from
an investment ownership approach to an industry approach. The approach
was changed to review the risks of the group more effectively.

                                    Revenue          Finance Income
                              Reviewed   Audited   Reviewed    Audited
                               30 June    30 June   30 June    30 June
                                  2012       2011      2012       2011
                                R000's     R000's    R000's     R000's
Land Based Casinos              18 821      2 009                   
Limited Payout Machines        403 583    322 222     1 500      1 443
Management Services(1)              96        532       281        302
Property                                                          
Other                           13 167      1 679                   
                               435 667    326 442     1 781      1 745

(1) The intercompany charges have been set off against this amount.

                                                     Depreciation and
                                 Finance costs         Amortisation
                             Reviewed     Audited  Reviewed    Audited
                              30 June     30 June   30 June    30 June
                                 2012        2011      2012       2011
                               R000's      R000's    R000's     R000's
Land Based Casinos                                                
Limited Payout Machines         (195)       (844)   (15 661)  (13 295)
Management Services           (5 429)     (7 199)   (22 785)  (22 604)
Property                                                          
Other                        (18 601)    (24 873)      (164)     (111)
                             (24 225)    (32 916)   (38 610)  (36 010)

                              Profit from equity-
                            accounted investments         Taxation
                             Reviewed     Audited   Reviewed   Audited
                              30 June     30 June    30 June   30 June
                                 2012        2011       2012      2011
                               R000's      R000's     R000's    R000's
Land Based Casinos            130 465     119 566                   
Limited Payout Machines                            (9 826)   (6 259)
Management Services                                (3 015)     2 948
Property                                                55         
Other                                                1 188  (11 981)
                              130 465     119 566   (11 598)  (15 292)

                                Profit After Tax         Total Assets
                             Reviewed     Audited   Reviewed   Audited
                              30 June     30 June    30 June   30 June
                                 2012        2011       2012      2011
                               R000's      R000's     R000's    R000's
Land Based Casinos            231 032       4 514  1 109 060 1 811 118
Limited Payout Machines        24 026      18 479    273 277   254 448
Management Services             7 741     (4 620)     72 270    77 914
Property                        (140)                28 574         
Other                        (11 854)    (41 044)    384 537    51 414
                              250 805    (22 671)  1 867 718 2 194 894

                                Total Liabilities
                             Reviewed     Audited
                              30 June     30 June
                                 2012        2011
                               R000's      R000's
Land Based Casinos            (1 769)    (13 697)
Limited Payout Machines      (38 982)    (39 266)
Management Services          (70 570)    (82 862)
Property                        (216)           
Other                       (139 312)   (302 277)
                            (250 849)   (438 102)

ACCOUNTING POLICIES
AND BASIS OF PREPARATION

The condensed consolidated annual financial information has been prepared
on the historical cost basis, except where stated otherwise, and in accordance
with International Financial Reporting Standards (IFRS) and the Listing 
Requirments of the JSE, and is presented in terms of disclosure requirements 
set out in IAS 34: Interim Financial Reporting and the Companies Act of South Africa 
No. 71, of 2008, as amended. The accounting policies applied are consistent with those 
applied in the financial results for the year ended 30 June 2011, with the exception 
of the following new and amended standards which are effective for the financial year
beginning on or after 1 January 2011:

-  IAS 24  Related Party Transactions (Amendment), which clarifies the
   definitions of a related party. The adoption of the amendment did not have
   any impact on the financial position, performance, cash flows or disclosure
   of the group.
-  IFRIC 14  Prepayments of a minimum Funding Requirement (Amendment),
   which permits a prepayment of future service costs by the entity to be
   recognised as a pension asset. The group is not subject to minimum funding
   requirements, and therefore the amendment of the interpretation has no
   effect on the financial position or performance of the group.
-  IFRS 7  Financial Instruments: Disclosures (Amendment) Transfers of
   Financial Assets, which requires additional quantitative and qualitative
   disclosures relating to transfers of financial assets. The amendment is not
   expected to impact the group.

Audit opinion
Our auditors, Ernst & Young Inc., have reviewed the condensed consolidated
financial information contained herein. Their reviewed report in which
they expressed their unqualified opinion is available for inspection at the
company's registered office.

CONDENSED GROUP STATEMENT OF CHANGES IN EQUITY
                                                     Capital                                        Available-
                                                  redemption   Ordinary                               for-sale          Non-
                                                     reserve      share       Share     Treasury    fair value   controlling      Accumulated
                                                        fund    capital     premium       shares       reserve      interest          profits         Total
                                                      R'000s     R'000s      R'000s       R'000s        R'000s        R'000s           R'000s        R'000s
Balance at 30 June 2010                                  277        115     727 186      (11 669)       40 690         4 978        1 010 803     1 772 380
Total comprehensive income/(loss) for the year                                                       8 706                      (22 671)      (13 965)
Dividends paid                                                                                                                 (34 238)      (34 238)
Ordinary shares issued                                               2      23 168                                                              23 170
Share issue expense                                                          (33)                                                                (33)
Transfer to capital redemption reserve fund               24                                                                        (24)             
Treasury shares issued                                                      3 726        7 218                                                  10 944
Acquisition of non-controlling interest                                                                         (4 978)            3 512       (1 466)
Balance at 30 June 2011                                  301        117     754 047      (4 451)        49 396                       957 382     1 756 792
Total comprehensive income/(loss) for the year                                                    (41 264)                       250 805       209 541
Dividends paid                                                                                                                (327 768)     (327 768)
Share bought back                                                  (2)    (24 319)                                                            (24 321)
Treasury shares issued                                                        520        2 105                                                   2 625
Balance at 30 June 2012                                  301        115     730 248      (2 346)         8 132                       880 419     1 616 869

NOTES TO THE FINANCIAL STATEMENTS

1.  Revenue
    Revenue comprises Gross Gaming Revenue ("GGR") from our Limited Payout Machines ("LPM") operations, dividends
    received from National Casino Resort Manco (Proprietary) Limited ("National Manco") and Real Africa Holdings Limited
    ("RAH"), interest earned on positive cash balances and other LPM operating cost recoveries.

    GGR is the term used for the net revenue generated by an LPM from the amount of cash played through the LPM
    less pay-outs to players.
                                                                                                               Reviewed       Audited
                                                                                                                30 June       30 June
                                                                                                                   2012          2011
                                                                                                                 R000's        R000's
    Gross Gaming Revenue                                                                                        395 606       316 192
     Grandslots                                                                                                249 634       213 597
     Kingdomslots                                                                                              119 259        99 550
     Grand Gaming: Slots                                                                                        26 713         3 045
    Other operating income                                                                                        8 074         6 581
    Other investment income                                                                                      31 987         3 669
    Revenue                                                                                                     435 667       326 442

    Other investment income increased from the prior year due to dividends of R13,2 million received from RAH, dividends of R4,4 million
    received from National Manco and dividends of R1,2 million received from Winelands Manco. In addition R8,1 million of preference
    share dividends was received and interest earned on positive cash balances.

2.  Cost of sales
    Cost of sales is directly related to GGR and comprises direct costs such as commissions to site owners, gambling levies
    and monitoring fees, and has increased by 25.4% in line with the increase in GGR.

3   Operating costs
    Operating costs include transaction costs of R13,9 million, which are expensed and reversed for adjusted headline 
    earnings per share.

4.  Profit from equity-accounted investments
    Profit from equity-accounted investments comprises profits from jointly-controlled entities and profits from associates.

    Overall profits from equity-accounted investments for the financial year increased by R10,9 million or 9.1% from the
    prior year.

    Profit from jointly-controlled entities
    SunWest International (Proprietary) Limited ("SunWest") attributable earnings consists of attributable earnings from
    GrandWest Casino and Entertainment World ("GrandWest") and The Table Bay Hotel. Western Cape Casino Resort
    Manco (Proprietary) Limited ("Western Cape Manco") attributable earnings consist of management fees received
    from SunWest.

    Profit from associates
    Profit from associates consists of attributable earnings from Akhona Gaming Portfolio Investments (Proprietary)
    Limited ("Akhona GPI").

5.  Profit on disposal of investments
    As disclosed in the interim results, the restructure of common assets with Sun International Limited ("SUI") ("restructure")
    was concluded on 2 December 2011. The group received proceeds of R733,9 million from SUI for the disposal of these
    investments and recognised a profit on the disposal of R60,3 million.

6.  Reversal of impairment of investment
    In terms of IAS 36  Impairment of Assets, an entity must determine whether there is any indication of impairment
    at each reporting date. IAS 36 requires assets to be impaired to the higher of market value or value in use based on
    discounted cash flow valuations. At year-end there is no indication that any investment must be impaired.

    As disclosed in the interim results, the group reversed R0,3 million of previously recognised impairment losses of its
    investment in Worcester Casino (Proprietary) Limited ("Golden Valley Casino").

7.  Realisation of fair value reserve
    As a result of the disposal of the group's interest in RAH and in terms of IAS39  Financial instruments Recognition
    and Measurement, R35,6 million of previously recognised fair value adjustments were realised through the statement
    of comprehensive income.

8.  Finance costs
    Finance costs decreased by 26.4% due to lower debt levels. The group repaid its R40,0 million term loan with Grindrod
    Bank Limited ("Grindrod") and redeemed R125,7 million preference shares with Sanlam Capital Markets ("SCM") from
    the cash received from the restructure. The group also repaid R12,0 million of its term loan with SCM.

9.  Taxation
    The taxation in the statement of comprehensive income is relatively low compared to the profit before taxation due
    to exempt income earned, permanent differences as well as differences between the accounting and tax values of the
    investments sold in the restructure.

10. Headline and adjusted headline earnings
    Headline earnings per share increased by 81.7%, whilst adjusted headline earnings per share increased by 30.0% to 29.09 (2011:
    22.38) cents per share. The increase primarily arises from the returns on available cash, the decreased finance charges
    as well as the improved performance of the Slots group.

11. Non-current assets
    Non-current assets decreased mainly as a result of the SUI restructure.

    During May 2012 GPI acquired an office building in a prime location in Adderley Street, Cape Town. The acquisition is
    focused on reducing the rental expense in the group and to establish a landmark Head Office for the GPI group. The
    building is currently being redeveloped and we expect to take occupation during February 2013.
   
12. Non-current asset held for sale
    As disclosed in the results at 30 June 2011 the investment in RAH was reclassified as a non-current asset held for sale.
   
    The investment was sold as part of the restructure.

13. Current assets
    Current assets have increased due to the cash received as part of the restructure and consists of cash and cash
    equivalents of R405,1 million, inventory of R2,1 million and other receivables of R54,6 million.
   
14. Total equity
    GPI acquired 9,78 million (2.1%) of its own shares during the year at an average price of 249 cents per share.

15. Non-current liabilities
    By utilising part of the R794,1 million cash received from SUI in terms of the restructure, the group repaid its R40,0 million
    term loan with Grindrod and redeemed R125,7 million preference shares with SCM.
   
    The cumulative redeemable preference shares outstanding relate to the facility with The Standard Bank of South Africa
    Limited and Depfin Investments (Proprietary) Limited.

    The balance on the interest-bearing borrowings mainly relates to the term loan with SCM, of which R12,0 million was
    repaid during the year.

16. Current liabilities
    Current liabilities consist of the current portion of the SCM term loan of R16,0 million, the cumulative redeemable
    preference share current portion of R30,6 million and trade and other payables of R53,8 million.

COMMENTARY

RESTRUCTURE WITH SUI

The restructure was the most significant transaction during the year and had a
material effect on this year's results. The effects of this transaction have however
been removed from the adjusted headline earnings for the year in order to normalise
the earnings.

On 2 December 2011 the restructure with SUI was completed, resulting in our
economic interests in SunWest and Golden Valley Casino reducing to 25.1% each and
the disposal of our entire interest in RAH.

The group received R794,1 million in cash from the transaction, R733,9 million was
received due to the sale of investments and R60,2 million via dividends from the
Western Cape Manco as a result of it receiving management contract cancellation
fees from SunWest. The proceeds were utilised to redeem R125,7 million in preference
shares from SCM, repay a R40.0 million term loan from Grindrod and to pay a special
dividend of 60 cents per share, totalling R282,3 million.

REVIEW OF GPI'S JOINTLY-CONTROLLED ENTITIES

SunWest
GrandWest's revenue increased by 7.9% compared to the prior year whilst its
attributable earnings after the payment of the once-off cancellation fee increased
by 5.9% despite the adverse economic environment in the Western Cape over the
last year. GrandWest's EBITDA margin recovered by 19.8% from R627,4 million last
year to R751,7 million this year.

GrandWest's initial 10-year casino exclusivity in the Cape Metropole expired during
December 2010. The Provincial Government of the Western Cape is still considering
whether to permit the relocation of one of the other casino licenses in the Western
Cape Metropole to the CBD. We continue to monitor any further developments
in this regard.

The Table Bay Hotel's revenue increased by 4.0% compared to the prior year, whilst
its attributable loss increased by 37.2% mainly due to a 5.3% drop in the average
room rate year-on-year from R2 060 last year to R1 956 this year and the occupancy
rate decreasing from 48.1% to 47.5%.

Golden Valley Casino
On 2 December 2011 the group sold 21.3% of its investment in Golden Valley Casino to
SUI, which reduced its economic stake in Golden Valley Casino to 25.1% (2011: 45.4%).

Golden Valley Casino's revenue increased by 6.7% compared to the prior year, whilst
its attributable earnings before the payment of the once-off cancellation fees
increased by 158.4%. After the payment of the cancellation fees its attributable loss
decreased by 66% compared to the prior year.

The investment is yet to produce a positive earnings contribution, however
management expects this investment to generate earnings over the short term.

Western Cape Manco
Western Cape Manco attributable earnings increased by 421.2% for the year, due to
the cancellation fee received in respect of the management contract with SunWest,
which formed part of the restructure. Going forward Western Cape Manco will not exsist.

REVIEW OF GPI'S ASSOCIATE INVESTMENTS

Akhona GPI
GPI's share of Akhona GPI's earnings decreased by 30.0% mainly as a result of GPI's decreased
shareholding from 74.05% to 59.0%. Akhona GPI did not equity account its investment
in Dolcoast due to the information not being available at this time. Akhona GPI recognised
R6,5 million as its share of equity accounted profit from Dolcoast during the prior year.


PERFORMANCE OF GPI'S LPM SLOTS OPERATIONS

Western Cape
The Western Cape LPM market continued to be the best performing province in the
country in terms of LPM revenue. As at 30 June 2012, with two licenced operators in
the Western Cape, Grandslots enjoyed a 56.8% (2011: 56.4%) market share.

With the Western Cape being the biggest contributor to our LPM revenues, it is very
encouraging that Grandslots achieved a 16.9% increase in its revenue to R249,6 million,
despite a 2.0% decrease in the number of active LPMs.
 
KwaZulu-Natal
Our KwaZulu-Natal based LPM operations, Kingdomslots, showed exciting growth
during the year where it achieved a 19.3% increase in revenue to R119,3 million.
Kingdomslots remained the market leader in the province: with four licensed
operators Kingdomslots enjoyed a 41.2% (2011: 42.6%) market share at 30 June 2012.
Kingdomslots increased its number of active LPM's slightly during the year by 1.9%.

Gauteng
Grand Gaming Slots achieved revenue of R26,7 million during its first full year of
operations. Legislative delays at the Provincial Gambling Board resulted
in a slow roll out of only 62 machines during the year. However it is encouraging
that we were able to increase our overall market share in Gauteng by 1% to 14.5%
at 30 June 2012 (2011: 13.6%).

RELATED PARTY TRANSACTIONS

The group, in the ordinary course of business, entered into various arm's-length
transactions with related parties. Any intra-group related party transactions and
balances are eliminated in the preparation of the financial statements of the group
as presented.

DIVIDENDS

Notice is hereby given of the declaration of an ordinary cash dividend of 20 cents
(gross) per share (2011: 10 cents per share), subject to the applicable tax levied in
terms of the Income Tax Act (Act No 58 of 1962, as amended). The 20 cents dividend
consists of a 12.5 cents ordinary dividend per share and a 7.5 cents special dividend per share.

In terms of paragraphs 11.17(a)(i) to (x) and 11.17(c) of the JSE Listing Requirements
the following additional information are disclosed:

-  The dividend has been declared out of income reserves;
-  Local dividends tax rate is 15%;
-  Gross local dividend amount is 20 cents per share;
-  Net local dividend amount is 20 cents per share;
-  GPI has Secondary Tax on Companies (STC) credits that it will utilise. The full dividend of 20 cents
   per share will be covered by STC credits.
-  Income tax reference number 9037038024
-  Ordinary shares in issue 460 679 901

In compliance with the requirements of Strate and the JSE Limited, the following salient
dates will apply to the payment of the dividend:

  Dividend declared	                        Monday, 27 August 2012
  Last date to trade "cum" the dividend   Thursday, 20 September 2012
  Trading commences "ex" the dividend	     Friday, 21 September 2012
  Record date	                             Friday, 28 September 2012
  Date of payment of the dividend	        Monday, 1 October 2012

Shares certificates cannot be dematerialised or rematerialised between Friday,
21 September 2012 and Friday, 28 September 2012, both days inclusive.

SUBSEQUENT EVENTS

On 18 July 2012 Grand Gaming Slots opened the first Type B LPM licenced site in
Gauteng. The Type B licence permits the site to operate up to 40 LPM's in a single
venue as opposed to the current Type A licence which only permits the site to operate up to
five LPM's per venue. This is the first license of its type in Gauteng.

Our offer to acquire the
remaining 41% we do not already own in Akhona GPI, in order to give the group full control of this
investment was concluded on 17 August 2012 for R27,8 million. The acquisition will give the group greater exposure to Sibaya Casino.

DIRECTORATE

Although there were some changes to the Board of GPI during the year, we believe
that every member has contributed to the success and growth of our business.
Since the interim results, Mr Ralph Freese resigned as a non-executive director, and
Mr Alex Abercrombie, a non-executive director, was appointed as an executive
director. On 20 August 2012 Mr Colin Priem was appointed to the Board of Directors
as a non-executive director.

PROSPECTUS

The group is committed to investing in gaming operations in order to achieve its
stated objective of becoming a major and respected force in the African gaming and
leisure industry. To this extent we will continue to play an active role to maximise the
value of our investments.

We will, via our Slots operations, look to increase our LPM footprint by investing
in new and existing route operator licences in jurisdictions that prove to be
economically viable. We will also look to expand our number of Type B licences
to offer more widely based gaming entertainment facilities, to expand on our
current client base and to increase our market share in the Gauteng market, and to
maintain our status as the market leader in the Western Cape and KwaZulu-Natal.

Via Grand Capital we will look to invest in non-gaming assets that will have a positive
impact on the overall value of the group.

Directors: H Adams (Executive Chairman), A Abercrombie, AE Keet CA(SA)
(Chief  Executive Officer), AW Bedford #, RJ Hoption CA(SA), Dr NV Maharaj #*,
N Mlambo#, MF Samaai#, S Petersen CA(SA) (Financial Director), C Priem#
(# non-executive * lead independent)

Registered office: 12th Floor Convention Tower, Heerengracht Street, Foreshore,
Cape Town, 8001. (PO Box 6563, Roggebaai, 8012)

Registration number: 1997/003548/06
ISIN: ZAE000119814
Share code: GPL

Company Secretary: LC Parton

Transfer secretaries: Computershare Investor Services (Proprietary) Limited,
70 Marshall Street, Johannesburg, 2001

Attorneys: Bernadt Vukic Potash & Getz Attorneys

Corporate advisors: Leaf Capital (Proprietary) Limited

Sponsor: PSG Capital (Proprietary) Limited

For and on behalf of the board

H Adams           AE Keet                         S Petersen	
Chairman          Chief Executive Officer         Financial Director

Cape Town		
27 August 2012	

Prepared by D Pienaar CA(SA)
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