Trading statement and capital distribution out of share premium in lieu of dividend Purple Group Limited (Formerly Purple Capital Limited) (Incorporated in the Republic of South Africa) (Registration number 1998/013637/06) Share code: PPE ISIN: ZAE000185526 (“Purple Group” or “the Company”) Trading Statement and Capital Distribution out of share premium in lieu of dividend Trading Statement Purple Group’s core derivatives trading and asset management businesses generated an EBITDA of R20.8 million for the year ended 31 August 2014, a 56% increase over the prior year. As announced on SENS on 21 August 2014, the Company’s indirect investment in Real People Investment Holdings (Pty) Limited, has been written down by R26.3 million (net of tax), to zero. In accordance with paragraph 3.4(b) of the JSE Limited’s Listings Requirements, shareholders are advised that Purple Group is expecting a decrease of 846% in basic earnings per share from a basic profit per share of 0.28 cents to a basic loss per share of 2.09 cents and an 11% decrease in headline loss per share from 2.25 cents to 2.01 cents per share, in comparison to the previous corresponding 12 month period. The financial information on which this trading statement is based has not been reviewed or reported on by Purple Group`s auditors. The Company’s annual results for the twelve months ended 31 August 2014 are expected to be published on SENS on or about 7 November 2014. Capital distribution The board of directors of Purple Group have approved an R8.2 million capital distribution out of share premium, by way of a reduction of Contributed Tax Capital of 1 cent per share, in lieu of a dividend, on the ordinary shares of the Company in respect of the year ended 31 August 2014, to Purple Group shareholders recorded in the register on Friday 28 November 2014 (“the Distribution”). The directors have determined that the capital distribution shall be paid out of qualifying contributed tax capital as contemplated in the definition of “contributed tax capital” in section 1 of the Income Tax Act, 1962. In accordance with the settlement procedures of Strate, the Company has determined the following salient dates for the payment of the Distribution: Last day to trade cum the capital distribution Friday, 21 November 2014 Shares commence trading ex the capital distribution Monday, 24 November 2014 Record date Friday, 28 November 2014 Payment of capital distribution Monday, 1 December 2014 Share certificates may not be dematerialised/rematerialised between Monday, 24 November 2014 and Friday, 28 November 2014, both days inclusive. Relative to this Distribution, the directors have confirmed that the Company will satisfy the solvency and liquidity test immediately after completing the Distribution. For income tax purposes, shareholders are advised that the Distribution will be paid out of qualifying contributed tax capital as contemplated in the definition of “contributed tax capital” in section 1 of the Income Tax Act, 1962, and as it will be regarded as a return of capital, consideration should be given to the potential capital gains tax consequences. Purple Group shareholders are, therefore, advised to consult their tax advisors with regard to how they may be impacted by the Distribution. Johannesburg 4 November 2014 Sponsor Deloitte & Touche Sponsor Services Proprietary Limited Date: 04/11/2014 05:15:00 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.