Competition Complaint Phumelela Gaming & Leisure Limited (Incorporated in the Republic of South Africa) (Registration number 1997/016610/06) Share code: PHM ISIN: ZAE000039269 (“Phumelela”) COMPETITION COMPLAINT BY THE GAUTENG OFF-COURSE BOOKMAKERS’ ASSOCIATION AND OTHERS AGAINST PHUMELELA, GOLD CIRCLE, KENILWORTH RACING, TELLYTRACK AND OTHERS Shareholders are advised that on 20 March 2014, the Gauteng Off-Course Bookmakers’ Association (“GOBA”) and others lodged a complaint with the Competition Commission. The complaint was lodged against Phumelela, Gold Circle, Kenilworth Racing, Tellytrack and others. The complainants alleged, inter alia, that the conduct of Tellytrack and its partners (Phumelela, Gold Circle and Kenilworth Racing) of increasing the subscription fee for bookmakers was not only excessive, but also with the intent and effect of lessening or preventing competition by 3 rd party bookmakers in the downstream market. The complainants alleged that the conduct of Tellytrack and its partners contravenes numerous sections of the Competition Act. On 22 July 2016, the Competition Commission advised that it had considered the complaint and decided not to refer any part of it to the Competition Tribunal for determination. The complainants have 20 business days to refer the complaint to the Tribunal. From the letters received from the Competition Commission on 15 July 2016 (The KZN Bookmakers’ Complaint), 20 July 2016 (The Hollywood Complaint) and 22 July 2016 (the GOBA Complaint) Phumelela concludes that the Competition Commission did not find the Tellytrack licence fee excessive. Phumelela wishes to remind all Bookmakers who have not been licensed by Tellytrack to display its service in their shops and are doing so, that Tellytrack will take all the necessary steps to stop the infringement of its intellectual property. Such steps include civil as well as criminal proceedings. Johannesburg 27 July 2016 Sponsor Investec Bank Limited Date: 27/07/2016 09:15:00 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.