Repurchase of treasury shares Indequity Group Limited Incorporated in the Republic of South Africa Registration number 1998/015883/06 Share code: IDQ ISIN Code ZAE000016606 (“Indequity” or “the Company” or “the Indequity Group”) REPURCHASE OF TREASURY SHARES 1. INTRODUCTION Indequity Specialised Insurance Limited (“Indequity Insurance”), a wholly owned subsidiary of Indequity, holds 1 316 000 ordinary shares in the issued share capital of Indequity (“Treasury Shares”). The Treasury Shares constitute 10% of Indequity’s issued ordinary share capital and were repurchased over a period of time from 4 November 1998 to 31 July 2013 in terms of general authorities to repurchase shares granted to Indequity and its subsidiaries by Indequity shareholders (“Shareholders”) at each of the annual general meetings of the Company from the date of listing, being 4 November 1998. Shareholders are advised that Indequity has undertaken a specific repurchase of 655 000 of the Treasury Shares at a price of R4.90 per share (“the Repurchase”). The total consideration paid by Indequity in respect of the Repurchase is R3.2 million. The Repurchase was authorised by the board of directors of Indequity (“the Board”) on Monday, 5 August 2013, subject to the approval by the JSE Limited (“JSE”) in respect of the cancellation of the repurchased Treasury Shares. The Repurchase was concluded on Thursday, 15 August 2013 and constitutes a repurchase of 4.97% of the issued ordinary share capital of Indequity in terms of paragraph 5.69 of the Listings Requirements of the JSE (“the Listings Requirements”). 2. SOURCE OF FUNDS The Repurchase was funded out of the proceeds from a cash dividend declared by Indequity Insurance to Indequity Insurance Holdings Limited (“Indequity Holdings”), a wholly owned subsidiary of Indequity and the holder and beneficial owner of 100% of the issued share capital of Indequity Insurance. Indequity Holdings in turn declared a cash dividend to Indequity. 3. PRO FORMA FINANCIAL EFFECTS As the Repurchase constitutes a repurchase of Treasury Shares, the Repurchase will have no financial effect on the Company and, therefore, no pro forma financial effects have been presented. 4. STATEMENT BY THE DIRECTORS Having considered the effect of the Repurchase, the Board is of the opinion that: - the Company and the Indequity Group will be able, in the ordinary course of business, to pay its debts for a period of twelve months after the date of this announcement; - the assets of the Company and the Indequity Group will be in excess of the liabilities of the Company and the Indequity Group for a period of twelve months after the date of this announcement. For this purpose, the assets and liabilities have been recognised and measured in accordance with the accounting policies used in the latest audited consolidated annual financial statements of the Indequity Group; - the share capital and reserves of the Company and the Indequity Group will be adequate for ordinary business purposes for a period of twelve months after the date of this announcement; and - the working capital of the Company and the Indequity Group will be adequate for ordinary business purposes for a period of twelve months after the date of this announcement. The Board has passed a resolution to the effect that subsequent to the Repurchase the solvency and liquidity test will be satisfied by the Indequity Group and that there will be no subsequent material change to the financial position of any company in the Indequity Group 5. Listing on the JSE of the repurchased Treasury Shares Indequity has applied for the delisting of the repurchased Treasury Shares on the JSE, subsequent to which the relevant Treasury Shares will be cancelled. Following the Repurchase, Indequity Insurance will hold 661 000 Treasury Shares constituting 5.28% of the total issued ordinary share capital of Indequity. Johannesburg 16 August 2013 Sponsor: KPMG Services (Pty) Ltd Date: 16/08/2013 02:11:00 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.