Update on regulatory status 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”) UPDATE ON REGULATORY STATUS OF BLUE 1. Background: Shareholders are referred to the detailed announcement published on the Stock Exchange News Services (“SENS”) of the JSE Limited (“JSE”) dated the 1st of April 2014 as well as the SENS announcement dated the 31st of October 2013. In light of recent publications in the press, the contents of which has the potential to mislead stakeholders of Blue, the Company deemed it necessary to provide an update in respect of its operations both in South Africa and in Africa. Blue Financial Services Ltd, through its subsidiaries, is currently trading in Ghana, Uganda, Kenya, Malawi, Zambia, Tanzania, Namibia, Botswana, and Swaziland, providing unsecured lending to its customers. In South Africa, Blue Financial Services (South Africa) (Pty) Ltd’s (“Blue South Africa”), a wholly owned subsidiary of Blue Financial Services Ltd, ceased offering unsecured lending products during October 2013 for reasons as set out in the SENS announcement dated 31st of October 2013 and has restructured its business to focus upon asset rehabilitation. 2. Blue South Africa: On the 1st of April 2014 the FSB withdrew Blue South Africa’s authorisation to act as a financial services provider in relation to Blue South Africa being able to offer insurance products linked to any unsecured lending products provided to its customers in South Africa. This follows on the suspension of Blue South Africa authorisation in October 2013 which was due to Blue South Africa failing to furnish the FSB with its Annual Financial Statements for the years ending February 2012 and February 2013. Since the suspension of its authorization, Blue South Africa has not collected the insurance premiums owing to it due in terms of the credit life insurance and home owners insurance cover which forms part of its unsecured lending products sold to its customers in South Africa. The effect of the withdrawal of Blue South Africa’s authorisation to act as a financial services provider on the business of Blue South Africa is that it may no longer collect the insurance premiums due under the credit life insurance and home owners insurance cover forming part of the unsecured lending products sold to its customers. The withdrawal of the authorisation as mentioned herein above does not affect Blue South Africa’s registration as a credit provider with the National Credit Regulator nor does it impact on its right to continue collecting the instalments due in respect of the credit agreements concluded with its customers, and as such Blue South Africa will continue to conduct its business as a asset rehabilitation entity. Blue South Africa is taking all necessary steps in terms of the instructions of the Financial Services Board to advise the relevant third party services providers and its customers of the withdrawal of its authorization to provide insurance products. The withdrawal of Blue South Africa authorisation to act as a financial services provider (as it pertains to the offering of insurance products) does not affect the overall business activities of Blue Financial Services Ltd nor the business activities of its subsidiaries in other geographical jurisdictions in Africa which entities are continuing to provide unsecured lending to their respective customers. Designated Advisor Grindrod Bank Limited Randburg 30 April 2014 Date: 30/04/2014 05:20:00 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.