Fraction Rate Announcement VUNANI LIMITED (Incorporated in the Republic of South Africa) (Registration number 1997/020641/06) JSE code: VUN ISIN: ZAE000110359 ("Vunani" or "the company") FRACTION RATE ANNOUNCEMENT Shareholders are referred to the company’s announcement on the Stock Exchange News Service (“SENS”) dated 1 August 2016, in which the company declared a fully paid capitalisation share issue award for the 14 months ended 29 February 2016, by way of the issue of fully paid Vunani ordinary shares in the ratio of 4 ordinary shares of no par value for every 100 ordinary shares of no par value held, to ordinary shareholders recorded in the Vunani register on the record date, being Friday, 26 August 2016 (“capitalisation share issue award”). As an alternative, ordinary shareholders will be entitled to elect to receive a gross cash dividend of 6 cents per share in respect of all or part of their shareholdings, which will be paid to those shareholders who elect to receive the cash dividend, on the record date, Friday 26 August 2016 (“cash dividend alternative”). The ratio of entitlement announced on SENS on 1 August 2016, is based on the five day volume weighted average traded price per Vunani share on the JSE Limited from 18 to 24 May 2016, of 160 cents per share, which will be the issue price per Vunani share (“the issue price”). Shareholders were advised that where a shareholder’s entitlement to new ordinary shares calculated in accordance with the capitalisation issue share award formula gives rise to a fraction of a new ordinary share, such entitlement will be rounded down to the nearest whole number resulting in allocations of whole securities and a cash payment to the shareholder for the fraction. Any fractional entitlement payment will also be subject to 15% dividend withholding tax. The Fraction rate is 148,5 cents per share and has been calculated at 165 cents per share, the volume weighted average price of a Vunani share traded on the JSE on Wednesday, 24 August 2016 (being the day on which the Vunani share began trading ‘ex’ the entitlement to receive the capitalisation share issue award or cash dividend alternative), discounted by 10% in accordance with schedule 18 of the JSE listings requirements. The net fraction rate paid will be 126,225 cents per share, unless dividend withholding tax exemptions apply. Example of fractional entitlement Assuming a shareholder holds 120 Vunani shares on Tuesday 23 August 2016 (Last day to trade), unless the shareholder elects to receive cash dividends, the shareholder will receive 120 *4 / 100 = 4.8 shares. This is rounded down to 4 shares. The fraction of 0.8 shares is paid at the fraction rate 148,5 cents per share = 118,8 cents per share before a deduction for any dividend withholding tax is applicable. 25 August 2016 Designated Adviser Grindrod Bank Limited Date: 25/08/2016 10:00:00 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.