Proposed settlement with South African Revenue Services Alexander Forbes Equity Holdings Proprietary Limited (Incorporated in the Republic of South Africa) Registration number: 2006/025226/07 PROPOSED SETTLEMENT WITH SOUTH AFRICAN REVENUE SERVICES Shareholders of Alexander Forbes Equity Holdings Proprietary Limited (“AFEH”) and preference shareholders of Alexander Forbes Preference Share Investments Limited are referred to the results announcement for the year ended 31 March 2014 issued by AFEH on 8 June 2014. The results announcement referred to the fact that the group received various requests for information from the South Africa Revenue Services (“SARS”) relating to the 2007 acquisition of the group by a consortium of private equity investors and the associated interest deductions related to the debt introduced at the time. As at the financial year-end and as at the date of finalising the financial statements, no findings were communicated by SARS to the group and the board remained confident that the interest claimed over the years was deductible for tax purposes. However, at the initiative of the group and in order to bring finality to the matter, following recent discussions with SARS, Alexander Forbes has reached an in-principle agreement with SARS towards a full and final settlement of the matter and specifically to settle the tax issue relating to the deduction of interest claimed over the years since the transaction up to and including the financial year ended 31 March 2014. These settlement discussions occurred subsequent to the approval and announcement of the financial statements for the year-ended 31 March 2014. The conclusion of the proposed settlement will result in an additional assessment for cash taxes payable by AFEH in an amount not exceeding R60 million and the waiver of assessed losses carried forward which include assessed losses in respect of which an amount not exceeding R70 million of deferred tax assets were raised and held on the balance sheets of various subsidiaries of the group as at financial year-end. The agreement will be implemented as soon as practicably possible. Johannesburg 20 June 2014 Sponsor RAND MERCHANT BANK (A division of FirstRand Bank Limited) Date: 20/06/2014 02:35:00 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.