Update on Regulatory Status of Blue 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 announcements published on the Stock Exchange News Service (“SENS”) of the JSE Limited (“JSE”) on 26 June 2013 (“June 2013 SENS”), whereby shareholders were advised of the Company’s voluntary suspension of trading in Blue securities, 26 August 2013 (“August 2013 SENS”), 31 October 2013 (“October 2013 SENS”), 6 December 2013 (“December 2013 SENS”), 1 April 2014 and 30 April 2014 (“April 2014 SENS”) whereby shareholders were updated on the 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 full year February 2013, six months ended 31 August 2013 and the full year ended February 2014 financial results. This announcement serves as further communication to shareholders on the aforementioned matters. 2. UPDATE ON INVESTIGATION COMMISSIONED IN 2010 The forensic investigation commissioned by the Board of the Company in 2010 has been completed. Horwath Forensics SA (“Howard Forensic”) was appointed to undertake the investigation and their forensic report has subsequently been issued. In this regard, the Company has reported to the Directorate of Priority Crimes in terms of section 34 of the Prevention and Combating of Corrupt Activities Act. The Company will continue to offer its full support to all regulatory bodies in their investigation of this matter. The Company has instructed its legal team to start with legal proceedings against such parties as the report has identified. 3. UPDATE ON INVESTIGATION COMMISSIONED IN 2013 In the June 2013 SENS, the Company advised that the Board had commissioned a new forensic investigation in May 2013. In this regard, Horwath Forensics was appointed by the Board of the Company to undertake the investigation, which includes inter alia investigating transactions between the Company and Leonox Investments (Pty) Ltd (“Leonox”). This forensic investigation has been largely finalised and the forensic report has been handed to the Company’s auditors to enable them to review the report. The Company is now in the process of assessing the findings of the report in context of relevant legal and accounting principles with the objective to finalise the entries into its financial records that will appropriately reflect the transactions between The Company, Leonox and related parties. In order to reach finality on this The Company is engaging with its legal team, Auditors and related parties. The Company has reported to the Directorate of Priority Crimes in terms of section 34 of the Prevention and Combating of Corrupt Activities Act. The Company will continue to offer its full support to all regulatory bodies in their investigation of this matter. 4. FEBRUARY 2013, AUGUST 2013 AND FEBRUARY 2014 FINANCIAL RESULTS (“The Financial Results”) The Company is currently engaging its auditors to agree time lines and resources to conclude the 28 February 2013 results as a priority and will use best endeavors to have this concluded by the end of the calendar year. With regards to the 28 February 2014 financial results, it should be noted that the audit has already commenced and it is expected that these results will be finalized in a relative short space of time once the 28 February 2013 numbers have been concluded. The Board of the Company is fully aware of the importance of concluding the Financial Results and would therefore like to give shareholders the comfort that the matter is being given the highest priority. Once the financials have been released, the Company will announce its forward-looking strategy 5. TRADING OF SECURITIES The Board of the Company wishes to advise that it is committed to publishing the Financial Results as soon as practically possible, at which point the company will apply to the JSE to recommence with the trading of Blue securities on the stock exchange operated by the JSE. Designated Advisor Grindrod Bank Limited Randburg 30 September 2014 Date: 30/09/2014 04:15:00 Produced by the JSE SENS Department. 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