Proposed unbundling of AF Pref’s shareholding in Alexander Forbes and renewal of cautionary announcement Alexander Forbes Preference Share Investments Limited (Incorporated in the Republic of South Africa) Registration number 2006/031561/06 Share code: AFP & ISIN number: ZAE000098067 ("AF Pref" or "the Company") PROPOSED UNBUNDLING OF AF PREF'S SHAREHOLDING IN ALEXANDER FORBES AND RENEWAL OF CAUTIONARY ANNOUNCEMENT REGARDING THE LISTING OF ALEXANDER FORBES GROUP HOLDINGS LIMITED Holders of AF Pref preference shares ("Preference Shareholders") are referred to the cautionary announcements released on the Stock Exchange News Service ("SENS") of the JSE Limited ("JSE") on 17 April 2014 and 5 June 2014 as well as the subsequent announcement on 23 June 2014 whereby Preference Shareholders were referred to the press release issued by Alexander Forbes Group Holdings Limited (previously Alexander Forbes Equity Holdings Proprietary Limited) ("Alexander Forbes") confirming its intention to list on the securities exchange operated by the JSE (the “Listing”), subject to requisite approvals by the JSE. Preference Shareholders are hereby advised that a pre-listing statement ("PLS") has been published by Alexander Forbes today. Copies of the PLS may be obtained from Alexander Forbes’ website www.alexanderforbes.co.za or from the Alexander Forbes head office situated at 115 West Street, Sandton, South Africa, during normal business hours from Monday, 7 July 2014 until Thursday, 17 July 2014 (and certain other locations as communicated in the abridged PLS announcement of Alexander Forbes released on SENS today). Copies are available to Preference Shareholders during this period at no cost. Preference Shareholders are further advised that the Board of Directors of AF Pref (the "Board") has resolved to propose to unbundle the Company’s entire shareholding in Alexander Forbes to its Preference Shareholders, subject to the Listing proceeding (the "Unbundling"). The implementation of the Unbundling will be subject to the requisite approvals of the ordinary shareholder and the Preference Shareholders of AF Pref at a general meeting. The Board has undertaken that the Unbundling will be implemented as soon as practicable, but is likely to require approximately 60 days following the Listing of Alexander Forbes. Furthermore, Preference Shareholders’ attention is drawn to the indicative pricing range communicated by Alexander Forbes in the PLS of between R6.90 and R8.05 per ordinary share of Alexander Forbes. Preference Shareholders of AF Pref currently hold an effective interest of approximately 1.095 ordinary shares in Alexander Forbes for each 1 Preference Share of AF Pref. A further announcement setting out the full terms of the Unbundling including the timetable of its implementation will be released in due course. Preference Shareholders are advised to continue exercising caution when dealing in the Company’s preference shares until a detailed announcement is made. Johannesburg 7 July 2014 Sponsor RAND MERCHANT BANK (A division of FirstRand Bank Limited) Date: 07/07/2014 08:30:00 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.