STRATCORP LIMITED - Announcement re investigation

Announcement re investigation

STRATCORP LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 2000/031842/06)
JSE code: STA
ISIN: ZAE 000034294
("StratCorp" or “the Company”)

ANNOUNCEMENT RE INVESTIGATION

Shareholders are referred to the various cautionary announcements
released between September 2012 and November 2013 relating to the
investigation by the Financial Services Board ("the FSB") of a
subsidiary of the Company, the last of which was published on 6
November 2013. The cautionary announcement was withdrawn in respect
of the FSB investigation (“2009 Investigation”) on 11 December 2013.

Shareholders are informed that the FSB delivered a new notice of 97
pages (“2014 Notice”) to the same subsidiary of the Company on 9 May
2014 containing virtually the same alleged contraventions as
previously stated.

Background

The investigation by the FSB into the affairs of a subsidiary of the
group commenced during 2009. On 18 October 2011 the subsidiary
provided the FSB with its response to the draft report. The final
inspection report was issued by the FSB on 15 December 2011.

During September 2012, the FSB issued a Notice to the subsidiary
that contained a number of alleged contraventions in terms of the
FAIS Act (“2012 Notice”). The subsidiary replied comprehensively to
the alleged contraventions on 3 December 2012.

The FSB subsequently made an onsite visit to the subsidiary’s offices
during March 2013. The subsidiary’s officials also met with FSB
during April 2013 on this matter. As a consequence the FSB withdrew
the 2012 Notice.

2014 Notice and requirement to reply thereto

The subsidiary in question is confused by the 2014 Notice by the FSB
inter alia insofar as:

A. the Notice states that the FSB will not at this stage respond to
   the subsidiary’s reply to the 2012 Notice; and

B. the Notice confirms that the FSB conducted an onsite visit at the
   subsidiary’s office during March 2013 and based on the FSB’s
   findings of the onsite visit, the Registrar of the FSB decided
   to withdraw its 2012 Notice. The subsidiary was not previously
   informed of the withdrawal.
The 2014 Notice affords the subsidiary the opportunity to reply to
the allegations contained in the 2014 Notice to the FSB by 27 May
2014.

The subsidiary will seek clarity from the FSB on the contents and
interpretation of the 2014 Notice.

The outcome is uncertain and therefore the impact on the company,
if any, cannot be determined at this time. Depending on how matters
develop, it may have a material effect on the price of the company’s
securities.

Shareholders will    be   updated   as   and   when   there   are   further
developments.


14 May 2014
Centurion
Designated Adviser
Exchange Sponsors

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