Further update to shareholders 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”) FURTHER UPDATE TO SHAREHOLDERS 1. BACKGROUND Shareholders are referred to the announcements published on the Stock Exchange News Service (“SENS”) of the JSE Limited (“JSE”) on 31 October 2013 (“October 2013 SENS”) and 26 August 2013 (“August 2013 SENS”), whereby shareholders were updated on the significant developments at Blue. This includes the conversion of debt in terms of the debt rescheduling agreement (“DRA”), the restructuring of Blue Financial Services South Africa Proprietary Limited (“Blue SA”), the forensic investigations launched in 2010 and 2013 respectively and the status of the February 2013 financial results. This announcement serves as further communication to shareholders on the aforementioned matters where referenced. 2. FEBRUARY 2013 FULL YEAR AND AUGUST 2013 INTERIM FINANCIAL RESULTS In the October 2013 SENS it was indicated to shareholders that Blue anticipated to release its February 2013 full year results by the end of November 2013. Furthermore, in terms of the Listings Requirements of the JSE Limited paragraph 3.15, Blue is required to publish its interim results for the six months ended 31 August 2013 by no later than 30 November 2013. Shareholders are referred to the August 2013 SENS regarding the forensic investigations launched by Blue including the investigation of transactions between the Company and Leonox Investments Proprietary Limited (“Leonox”). Due to the extent and complexity of these transactions and the resultant delay this has had on the finalisation of the audit of the Company’s financial results, Blue regrettably advises shareholders that the financial results for the year ended 28 February 2013 and the interim results for the six months ended 31 August 2013 will only be released in the first quarter of 2014. The Board of Directors of Blue remains committed to giving this matter the utmost priority. 3. UPDATE ON INVESTIGATION COMMISSIONED 2013 As referred to in the August 2013 SENS, Horwath Forensics SA was appointed by the Board to undertake the investigation, which includes inter alia investigating transactions between the Company and Leonox Investments (Pty) Ltd. This investigation is broadly finalised. Blue is currently awaiting legal opinion on certain of these aspects. The Company’s external auditors are in the process of auditing the related transactions and the appropriate treatment in accordance with IFRS. 4. LOOKING FORWARD The Board will apply to the JSE to recommence trading of Blue securities on the JSE once the February 2013 full year financial results and August 2013 interim results have been published on SENS. Until such time the voluntary suspension of trading of Blue’s securities will remain in effect. Randburg 6 December 2013 Designated Advisor Grindrod Bank Limited Date: 06/12/2013 03:45:00 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.