PSG KONSULT LIMITED - Tax Matter

Tax Matter

PSG Konsult Limited
(Incorporated in the Republic of South Africa)
Registration Number: 1993/003941/06
JSE Share Code: KST
NSX Share Code: KFS
ISIN Code: ZAE000191417
(“PSG Konsult” or “the Company”)

PSG KONSULT – TAX MATTER

Shareholders are referred to PSG Konsult’s unaudited interim results for the six months ended 31 August
2015, as announced on 7 October 2015, which contained a voluntary disclosure note regarding a
potential tax matter.

Tax assessments received

On 10 December 2015, the Company’s wholly-owned subsidiary, PSG Life Limited (“PSG Life”), received
revised income tax assessments from the South African Revenue Service (“SARS”) in respect of the 2009
to 2014 tax periods. The dispute with SARS relates to certain investment instruments that were last
acquired by PSG Life in 2011. SARS has decided to classify and treat these investments on a basis that
contradicts the senior counsel and independent expert tax advice obtained by PSG Life prior to making
these investments and which has subsequently again been confirmed by independent senior counsel.

PSG Konsult’s position

PSG Life will object to, dispute and contest the above-mentioned tax assessment, which includes an
alleged normal tax payment shortfall of R113 million plus interest of R86 million and understatement
penalties of R169 million, none of which PSG Life believes to be payable.

The PSG Konsult board is satisfied that all known facts have been taken into account in the group’s
current capital plan and that all eventualities can be funded out of current resources and financial
arrangements. The board does not expect this dispute to have a negative impact on the Company’s
current dividend payout policy to shareholders.

This dispute has no relevance to any monies entrusted by clients to the firm or to any contracts that
clients have with the firm. PSG Konsult also does not expect resolution of this tax matter to have any
material bearing on the delivery of its strategic plans.

PSG Konsult recognises that such disputes usually take time to resolve and will keep shareholders
updated once there is greater clarity on the matter.

Tyger Valley
11 December 2015

JSE Sponsor: PSG Capital Proprietary Limited
NSX Sponsor: PSG Wealth Management (Namibia) Proprietary Limited, member of the Namibian Stock
Exchange

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