BLUE FINANCIAL SERVICES LIMITED - Cautionary Announcement

Cautionary Announcement

Blue Financial Services Limited
(Incorporated in the Republic of South Africa)
(Registration Number: 1996/006595/06)
JSE Share code: BFS
ISIN: ZAE000083655
(Blue or the Company or the Group)


CAUTIONARY ANNOUNCEMENT


Shareholders are hereby advised that the Company is in
negotiations   with   Mayibuye   Group   Proprietary   Limited
(Mayibuye), the 51% controlling shareholder of Blue and
therefore a related party, which if successfully concluded may
have a material effect on the price of the Company's
securities.

The   negotiations    pertain   to   the    proposed   further
recapitalisation of the Company, which is likely to involve
the injection by Mayibuye of certain of its assets and new
debt capital into Blue. The negotiations are at a relatively
early stage and are expected to only be concluded in the first
quarter of 2013.

Shareholders should therefore exercise caution when dealing in
the Company's securities until a further announcement is made.


Johannesburg
21 January 2013


Designated Adviser
Grindrod Bank Limited

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