Late submission of results, voluntary suspension of trading in securities and renewal of cautionary announcement BLUE FINANCIAL SERVICES LIMITED (Incorporated in the Republic of South Africa) (Registration Number: 1996/006595/06) JSE Code: BFS ISIN: ZAE000083655 ("Blue" or "the Company" or “the Group”) LATE SUBMISSION OF FINANCIAL RESULTS AND CONSEQUENT REQUEST FOR THE VOLUNTARY SUSPENSION OF TRADING IN BLUE SECURITIES AND RENEWAL OF CAUTIONARY ANNOUNCEMENT 1. BACKGROUND The Group in December 2010, under the guidance and support of its controlling (54%) shareholder Mayibuye Group (Pty) Limited (“Mayibuye”), initiated an extensive three year turnaround strategy, which has already delivered much needed improvements to the overall operations of the Company together with additional capitalization to the tune of R840 million. The key objective of this turnaround strategy was to reposition the Group with a balance sheet that supported further fund raising which is paramount in driving the future growth and sustainability of the Group, whilst proactively dealing with various legacy issues. 2. PROPOSED CORPORATE ACTION AND RENEWAL OF CAUTIONARY ANNOUNCEMENT Shareholders are referred to the cautionary announcement published on the Securities Exchange News Service (“SENS”) of the JSE Limited (“JSE”) on 21 January 2013 whereby shareholders were advised that the Company is in negotiations with Mayibuye regarding the further recapitalisation of Blue, and the subsequent renewal of cautionary announcements published 4 March 2013, 16 April 2013 and 29 May 2013. Negotiations are continuing and progressing, but are not yet finalised. Shareholders should therefore exercise caution when dealing in the Company's securities until a further announcement is made. 3. LATE SUBMISSION OF FINANCIAL RESULTS AND CONSEQUENT REQUEST FOR VOLUNTARY SUPENSION Shareholders are referred to the trading update published on SENS on 17 May 2013, whereby the Company advised that it anticipates earnings per share and headline earning per share for the financial year ended 28 February 2013 to be at least 20% lower than the comparative period. In relation to the trading update referred to above, shareholders are hereby advised that the Company will not be in a position to publish its consolidated results of the Group for the financial year ended 28 February 2013 (“February 2013 results”), within the period prescribed by the JSE listing requirements which is 28 June 2013. Accordingly, and after giving due consideration to the factors listed below, the board of directors of Blue (“Board”) deems it prudent to request the JSE to temporarily suspend, with immediate effect, the trading in Blue Securities on the stock exchange operated by the JSE until a further announcement is made. In arriving at the decision above, the Board has considered the following key factors: - That the Debt Restructuring Agreement ("DRA") terminates in January 2014 and will impact inter alia the extent to which certain funders of the Group may be required to convert debt into equity. As such any financial impact thereon needs to be considered in the February 2013 results. - The negotiations pursuant to the proposed corporate action referred to in paragraph 2 above remain key in achieving the Group’s objective of securing a stronger balance sheet in order to raise future funding, considering the importance of this to the sustainability of the Group. These negotiations have yet to be finalised. - The outcome of the forensic investigation commissioned by the Board in 2010 is nearing finalisation. In addition the Board recently commissioned a new forensic investigation, which is ongoing. The Board wishes to gain further certainty of the impact, if any, of these investigations on the February 2013 results. - The resignation of the incumbent financial director, Mr Deon Bekker, as announced on SENS on 30 April 2013. 4. WAY FORWARD The Board wishes to advise that it is committed to publishing the February 2013 results as soon as practically possible, at which point the company will apply to the JSE to recommence with the trading of Blue securities on the stock exchange operated by the JSE. Johannesburg 26 June 2013 Designated Advisor Grindrod Bank Limited Date: 26/06/2013 08:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.