Appointment of Guardrisk Life Limited to underwrite insurance products for African Bank and Good Bank AFRICAN BANK LIMITED (in Curatorship) (Incorporated in the Republic of South Africa) (Registered bank) (Registration number 1975/002526/06) Company code: BIABL (“African Bank” or “the Bank”) Appointment of Guardrisk Life Limited to underwrite insurance products for African Bank and Good Bank The Bank has made various announcements regarding the intention to create a cell captive insurance provider to replace the existing relationship with The Standard General Insurance Company Limited (“Stangen”), which lapsed with effect from midnight on 16 January 2016. The Curator of African Bank is pleased to announce that African Insurance Group Limited (“InsureCo”), the company which will hold all insurance interests as part of the Good Bank Group under the Good Bank Restructuring Proposal, has concluded an agreement with Guardrisk Life Limited (“Guardrisk”) in respect of a captive cell within that company. InsureCo is a fellow subsidiary of Good Bank, both of which are held 100% by African Bank Holdings Limited (“New HoldCo”). The Guardrisk cell captive commenced providing credit life and other insurance underwriting arrangements for African Bank’s new business with effect from 17 January 2016, and will do so in respect of Good Bank’s new business with effect from the targeted Transaction Effective Date of 4 April 2016 (“TED”). African Bank has concluded a funding arrangement to provide InsureCo with the necessary capital in order to allow the commencement of operations under the agreement. This funding arrangement is expected to be transferred to the Good Bank, on 4 April 2016, subject to the anticipated conclusion of the Good Bank Restructuring Proposal. The insurance arrangements with Stangen in respect of African Bank business, covered by a Stangen policy, remain in full force and effect. The cell captive arrangement enables InsureCo to insure the new African Bank and Good Bank customer risk exposures through an equity participation in Guardrisk known as a "cell". These arrangements typically allow participants to enjoy all the benefits of owning its own insurance company without the inherent cost and administrative implications of doing so. For various reasons, including lower administrative costs and lower capital requirements due to the relatively larger scale of the Guardrisk business, the cell captive arrangement is more economical than the insurance business previously underwritten by Stangen. This will allow African Bank and in due course, the Good Bank, to pass on this benefit to customers in the form of reduced premiums on all new insurance business for the same customer benefits. Commenting on the conclusion of the arrangement Brian Riley, CEO designate of Good Bank, said: “We are extremely pleased with this significant development which provides further impetus to the anticipated finalisation of the restructuring of African Bank in less than three months’ time. The new arrangement with Guardrisk, a leading cell captive insurer, represents a big step forward, and is mutually beneficial for both African Bank and its customers.” On behalf of the Curator of the Bank Midrand 18 January 2016 Debt Sponsor RAND MERCHANT BANK (A division of FirstRand Bank Limited) T Winterboer was appointed as Curator of African Bank Limited on 10 August 2014 by the Minister of Finance of the Republic of South Africa and pursuant to the Banks Act No. 94 of 1990 (as amended) to manage the affairs of African Bank Limited subject to the supervision of the Registrar of Banks. Please note that Mr Winterboer acts in the aforesaid capacity. Notes Stakeholders are referred to the statement regarding the Curatorship of African Bank ("the Curatorship") made by the then Governor of the South African Reserve Bank ("SARB"), Ms. Gill Marcus, on 10 August 2014 ("the SARB statement"). The SARB statement confirmed that Mr. Tom Winterboer was appointed as Curator of African Bank ("the Curator") in terms of the Banks Act No. 94 of 1990 (as amended) on 10 August 2014. At the same time the SARB statement set out a proposal for the restructuring of African Bank, which entailed the creation of a new "Good Bank" ("the Good Bank Restructuring Proposal"). Further detail about the Good Bank Restructuring Proposal has been communicated to stakeholders the SENS announcement released by African Bank on 9 September 2015 (“Publication of Information Memorandum for the Good Bank Restructuring Proposal and Acquisition of The Standard and General Insurance Company Limited (“Stangen”). Information contained in SENS announcements related to the Good Bank Restructuring Proposal between 10 August 2014 and 9 September 2015 was superseded by the contents of the Information Memorandum. Stakeholders are also referred to SENS announcements released by African Bank on 1 October 2015 (“Quarterly update in terms of Section 1.10(c) of the JSE Listings Requirements”), 9 October 2015 (“Extension of comment period on Information Memorandum”), 16 October 2015 (“Termination of proposed acquisition of the Stangen and Supplement to Information Memorandum”), 23 October 2015 (“Timetable to publish the Supplement to the Information Memorandum and revision of the timeline to launch Good Bank”), 8 December 2015 (“African Bank Limited Curatorship update: Release of a Supplementary Memorandum and of the audited annual financial statements for the year ended 30 September 2015”), and 31 December 2015 (“Quarterly update in terms of Section 1.10(c) of the JSE Listings Requirements. Date: 18/01/2016 05:18:00 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.