Joint announcement update: Firm intention by Telkom -TKG/BCX BUSINESS CONNEXION GROUP LIMITED TELKOM SA SOC LIMITED (Incorporated in the Republic of South Africa) (Incorporated in the Republic South Africa) (Registration number 1988/005282/06) (Registration number 1991/005476/30) JSE code: BCX JSE code: TKG ISIN: ZAE0000154631 ISIN: ZAE000044897 ("BCX" ) ("Telkom") JOINT ANNOUNCEMENT UPDATE: FIRM INTENTION BY TELKOM TO MAKE A CASH OFFER TO ACQUIRE THE ENTIRE ISSUED SHARE CAPITAL OF BCX 1. INTRODUCTION Unless defined, terms used in this announcement shall bear the same meaning as per the circular published by BCX on 11 July 2014 (“Circular”). Shareholders of BCX and Telkom (“Shareholders”) are referred to the announcements released on the Stock Exchange News Service of the JSE Limited ("JSE"), dated: - 11 August 2014, relating to the results of the general meeting; - 20 October 2014, being an update announcement relating to the regulatory approvals; and - 21 October 2014, being a clarification announcement relating to the regulatory approvals to the announcement on 20 October 2014. 2. UPDATE ON REGULATORY APPROVALS The Parties wish to inform Shareholders that both BCX and Telkom are awaiting the following regulatory approvals to the extent required: - The Competition Commission of South Africa; - The Common Market for Eastern and Southern Africa (COMESA) Commission; and - The Independent Communications Authority of South Africa (ICASA). Upon receipt of the above approvals, final approval will be sought from the Takeover Regulations Panel and the JSE. Unconditional approvals have been obtained from the following regulatory bodies: - The Namibian Competition Commission on 8 October 2014 - The Tanzania Fair Competition Commission on 13 October 2014 - The Competition Authority of Botswana on 4 November 2014 3. AMENDMENT TO THE IMPLEMENTATION AGREEMENT Shareholders are further advised that the implementation agreement entered into between the Parties on 21 May 2014, as amended by addenda entered into on 29 January 2015 have extended the Long Stop Date (as defined in the Circular) from 31 January 2015 to 31 March 2015, in order to extend the time available for the completion of the regulatory approval processes outlined above. Midrand 30 January 2015 Investment bank and corporate advisor to BCX: Investec Bank Limited Transaction sponsor to BCX: Investec Bank Limited Investment bank and corporate advisor to Telkom: Absa Bank Limited Transaction sponsor to Telkom: Absa Bank Limited Legal advisor to BCX and Telkom: Edward Nathan Sonnenbergs Incorporated Sponsor to BCX: One Capital Sponsor Services (Proprietary) Limited Sponsor to Telkom: The Standard Bank of South Africa Limited Date: 30/01/2015 02:30:00 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.