Close out of derivative contracts HUGE GROUP LIMITED (Registration number 2006/023587/06) Share code: HUG ISIN: ZAE000102042 (“Huge” or “the Group” or “the Company”) CLOSE OUT OF DERIVATIVE CONTRACTS Huge and its subsidiary companies have held various derivative contracts over the Company’s ordinary shares. Any movement in the price of the Company’s ordinary shares (Reference Instruments) has an impact on the value of these derivative contracts. Huge Telecom Proprietary Limited (HugeTel), a wholly owned subsidiary company of the Company, was the holder of contracts for difference (CFDs) over 3 904 579 Huge ordinary shares (the Huge CFDs). On 8 October 2014, HugeTel closed out the Huge CFDs at a spot price of 170 cents per Reference Instrument (the Close Out). Accordingly, the Group is no longer exposed to the movement in the price of derivative contracts over its own ordinary shares. FINANCIAL EFFECTS OF THE CLOSE OUT The unaudited pro forma financial effects as set out below have been prepared in terms of the JSE Listings Requirements and the Guide on Pro Forma Financial Information, issued by SAICA and are based on the audited results of Huge for the year ended 28 February 2014, to assist shareholders of Huge in assessing the cumulative impact of the Close Out on the earnings per share and net asset value per share of the Company. These pro forma financial effects have been prepared for illustrative purposes only, and because of their nature, may not fairly present Huge’s financial position, financial performance, changes in equity and results of operations and cash flows after the Close Out. It has been assumed for purposes of the pro forma financial information below that the Close Out was prepared using the most recently published results and that the Close Out was effective at 28 February 2014 for compiling the statement of financial position purposes, and 1 March 2013 for compiling the statement of comprehensive income purposes. The directors are responsible for the preparation of the pro forma financial information, which has not been reviewed by the Company’s auditors. Audited Results Before the Pro forma After % Close Out adjustment the change (cents) (cents) Close Out (cents) Basic earnings per share 13.54 (0.43) 13.11 (3.18) Headline earnings per share 13.66 (0.43) 13.23 (3.15) Diluted earnings per share 13.54 (0.43) 13.11 (3.18) Diluted headline earnings per share 13.66 (0.43) 13.23 (3.15) Net asset value per share 269.34 2.98 272.32 1.11 Net tangible asset/(liability) value per share (2.25) 2.98 0.73 132.44 Weighted number of shares in issue after deducting treasury shares (‘000) 89 255 - 89 255 - Number of shares in issue after deducting treasury shares (‘000) 80 255 - 80 255 - NOTES AND ASSUMPTIONS - The figures set out in the “Before the Close Out” column above have been extracted from the Company’s audited results for the year ended 28 February 2014 (the Final Results). - The figures set out in the “After the Close Out” column above reflect the Financial Effects of the Close Out on the Final Results assuming that the Close Out was implemented on 1 March 2013 for earnings and headline earnings per share purposes. In this regard: o The after tax effect of the cost of implied interest charges of R58 262 incurred during to the year ended 28 February 2014 has been reversed, which has an on-going effect; o The after tax effect of the benefit of mark to market variation margins of R585 687 reflected during the year ended 28 February 2014 has been reversed, which has an ongoing effect based on the change in the price of the Reference Instruments; o The after tax effect of the mark to market variation margins determined by taking the difference between the price of the reference instruments underlying the CFDs on 1 March 2013 of 70 cents and the price of the Reference Instruments underlying the CFDs on the date of the Close Out of 170 cents, has been added to earnings and headline earnings for the year ended 28 February 2014, which has a once-off effect. - The figures set out in the “After the Close Out” column above reflect the Financial Effects of the Close Out on the Final Results assuming that the Close Out was implemented on 28 February 2014 for net asset and tangible asset value per share purposes. The after tax effect of the mark to market variation margins determined by taking the difference between the price of the Reference Instruments underlying the CFDs on 28 February 2014 of 85 cents and the price of the Reference Instruments underlying the CFDs on the date of the Close Out of 170 cents has been added to tangible assets and net tangible assets as at 28 February 2014, which has a once-off effect. Johannesburg 10 October 2014 Designated Advisor Afrasia Corporate Finance Proprietary Limited Date: 10/10/2014 05:32:00 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. 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