Investment update African Rainbow Capital Investments Limited (Incorporated in the Republic of Mauritius) (Registration number C148430) JSE share code: AIL ISIN: MU0553S00000 (“AIL” or “the Company”) INVESTMENT UPDATE African Rainbow Capital Investments Limited was listed on the JSE on 7 September 2017. AIL is a Limited Partner in the ARC Fund, an en-commandite partnership. Full details of the structure were disclosed in the Pre-Listing Statement published on 28 August 2017. The purpose of this announcement is to give shareholders an update of the Company’s progress since the listing. As indicated during the listing process AIL undertook to give quarterly feedback, based on calendar quarters, in line with the Company’s June year end. Reporting to the end of September 2017 only would however be of limited value and this high-level report therefore covers the period up to the end of November 2017. At the time of listing, the net asset value (“NAV”) of the ARC Fund amounted to R 8 700m, comprising of a portfolio of investments at a cost of R 4 476m, as described and disclosed in the Pre? Listing Statement, together with cash of R 4 224m. To date the ARC Fund’s invested NAV (excluding any revaluation since listing) has increased to approximately R 6 600m, mainly due to a number of significant investments, which include: 1. The subscription for additional shares in Rain for an amount of R 1 052m, a commitment that was previously disclosed in the Pre-Listing Statement. The ARC Fund owns an interest of 20% in Rain after the additional subscription of 12.3%. 2. The acquisition of a 24.8% interest in the Bluespec Group of companies at a cost of R 509m. The Bluespec Group is a significant player in the supply chain of the short-term insurance industry and its focus ranges from dealerships in exotic and luxury vehicles to motor body repair shops, tow-trucking and motor salvage. After the acquisition by the ARC Fund, the BEE ownership of the Bluespec Group is 51%. 3. The following of a rights issue by ARC Financial Services Holdings (Fin Holdco) for an amount of R239m in order to maintain its 49.9 interest in Fin Holdco. Finholdco acquired a further 5% of AFH for an amount of R 480m with the proceeds of the rights issue. 4. An investment of R 93m in the Last Mile Fund, being a fund that will focus on unique investment opportunities in the mining sector where such investment will have asymmetric potential upside compared to the risk profile as it has been made as the “capital provider of last resort”. The team is led by Mr Bernard Swanepoel and the fund has made its first investment. 5. Two investments in the agricultural sector for an initial amount of R 120m. Subtropico focuses mainly on the services sector and consists of fresh produce and livestock market agents and packing facilities. The RSA Group is a service provider that owns market agencies on all major municipal fresh produce markets. The remaining cash funds amount to approximately R 2 200m. The potential investment pipeline remains healthy. Unlisted investments form the bulk of Arc Fund portfolio and it is not meaningful to provide updated detailed valuations after such a short period. We are however pleased with the performance of the underlying investments and would like to specifically report that: 1. The component of the portfolio comprising listed shares has performed satisfactorily, with the exception of EOH which has significantly reduced in value. 2. Rain, which comprises approximately 27% of the portfolio, has made very good progress over the past 3 months. The roll out of base stations (over 1 500), networks and fixed line connections are on target. Mr Willem Roos, who has been the CEO of Outsurance since its formation, will be joining Rain on 1 January 2018 as the managing director of the Direct Business. 3. Kropz, the phosphate mine in which we have a 26% interest, has recently received negative publicity in the press, specifically about its Water Use License and the fact that the mining and the commissioning of the processing plant have been delayed. We remain very close to developments and are of the view that the issues will be resolved. 4. The ARC Fund advised BKB that it may enter into an option agreement with another BKB shareholder relating to the sale of the ARC Fund’s 20% interest (18.6 million shares) in BKB at a price of R 22 per share. In terms of the agreements between BKB and the ARC Fund the latter may not sell its shares in BKB before the end of May 2018. The ARC Fund acquired the interest at a cost of R 220 million. The Company will be reporting in more detail on its performance after finalisation of the results for the period 7 September 2017 to 31 December 2017. Ebène, Mauritius (with simultaneous circulation in Johannesburg) 5 December 2017 Sponsor RAND MERCHANT BANK (A division of FirstRand Bank Limited) Date: 05/12/2017 08:52:00 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.