Acquisition of a stake in Greenbay Properties Ltd LODESTONE REIT LIMITED (Incorporated in the Republic of South Africa) (Registration number: 2010/017830/06) (JSE share code: LDO) (ISIN: ZAE000197935) (Approved as a REIT by the JSE) (“Lodestone” or “the company”) ACQUISITION OF A STAKE IN GREENBAY PROPERTIES LTD 1. Introduction Shareholders are referred to the announcements released by Greenbay Properties Ltd (“Greenbay”) on SENS on 31 May 2016 and 1 June 2016 relating to an accelerated bookbuild undertaken by Greenbay (“bookbuild”). In terms of the bookbuild, Lodestone acquired 125 000 000 Greenbay shares for a total consideration of R150 000 000 (“the acquisition”). The Greenbay shares were registered in Lodestone’s name on 8 June 2016. The acquisition resulted in Lodestone directly owning a circa 3.8% stake in Greenbay post the issue of new Greenbay shares in terms of the bookbuild. 2. Description of Greenbay Greenbay (formerly known as Green Flash Properties Ltd and changed its name to Greenbay Properties Ltd with effect from 16 March 2016) is a Category One Global Business Licence Company registered in Mauritius. Greenbay has a primary listing on the Stock Exchange of Mauritius Ltd and a secondary listing on the Alternative Exchange of the Johannesburg Stock Exchange. Its objectives are investing in global real estate assets and listed companies, predominantly in the retail sector. 3. Rationale Lodestone continues to seek investment opportunities which will create long-term value for its shareholders. The acquisition is in line with Lodestone’s strategy of diversifying into global markets that demonstrate favourable returns on a risk- weighted basis. 4. Consideration for the acquisition Lodestone paid a cash consideration of R150 000 000, settled by way of bank funding, for the 125 000 000 Greenbay shares. 5. Conditions precedent The acquisition is not subject to any conditions. 6. Value and profits attributable to the net assets As announced on SENS on 12 May 2016, the value of the net assets of Greenbay as at 31 March 2016, the last reported date, was GBP1 200 961 and the net losses attributable to the net assets of Greenbay for the six months ended 31 March 2016 were GBP(450 153). 7. Categorisation The acquisition is a category 2 transaction in terms of the JSE Listings Requirements and accordingly does not require approval by shareholders. 9 June 2016 Designated advisor Java Capital Date: 09/06/2016 05:45:00 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.