Notice of financial assistance in terms of Section 45(5) of the Companies Act of 2008 Telkom SA SOC Limited (Registration number 1991/005476/30) JSE share code: TKG ISIN: ZAE000044897 (“Telkom” or “the company”) NOTICE OF FINANCIAL ASSISTANCE IN TERMS OF SECTION 45(5) OF THE COMPANIES ACT OF 2008 Shareholders are referred to Special Resolution Number 4 relating to the provision of direct or indirect financial assistance in terms of Section 45 of the Companies Act, No 71 of 2008 (“the Companies Act”) to related or inter-related companies, which was approved at the annual general meeting of the company held on 24 August 2016. We hereby notify the shareholders that the Board of Directors of the company has adopted a resolution granting financial assistance, as contemplated in section 45 of the Companies Act, to Business Connexion Proprietary Limited (“BCX”), in the amount of R1,000,000,000 to provide for working capital requirements, settle certain debt commitments, as well as to provide funding for future expansion. This is aligned with our announced strategy of integrating our Enterprise Business with BCX as our go to market entity providing a truly converged business offering end to end solutions to our Enterprise customers. Shareholders are hereby further notified of financial assistance of R155,000,000 to Acajou Investments Proprietary Limited, a 100% subsidiary that has been converted for purposes of housing and funding a new business venture in the digital gaming arena and to be renamed Digital Gaming League Holdings Pty Ltd. A centralised Group Treasury function has been created as we seek to fund Group operations and growth in the most efficient and effective manner. The Board confirms that immediately after providing the financial assistance, the company continues to satisfy the solvency and liquidity test as contemplated in Section 4 of the Companies Act in that: a) the assets of the company, as fairly valued, would be equal to or exceed the liabilities of the company, as fairly valued; and b) the company would be able to pay its debts as they became due in the ordinary course of business for a period of 12 (twelve) months after the date on which the test was considered or 12 (twelve) months following the granting of the financial assistance. The Board furthermore confirms that the terms and conditions of the financial assistance are fair and reasonable to the Company. Centurion 19 December 2016 Sponsor The Standard Bank of South Africa Limited Date: 19/12/2016 11:05:00 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.