Tax implications – Special cash dividend of R23 per share to ordinary shareholders with a share election Datatec Limited Incorporated in the Republic of South Africa (Registration Number: 1994/005004/06) JSE share code: DTC ISIN: ZAE000017745 ("Datatec" or the "Company", JSE: DTC) TAX IMPLICATIONS – SPECIAL CASH DIVIDEND OF R23 PER SHARE TO ORDINARY SHAREHOLDERS WITH AN ELECTION TO RECEIVE NON-RENOUNCEABLE CAPITALISATION ISSUE SHARES IN LIEU OF THE CASH DIVIDEND Shareholders are referred to the circular dated Friday, 8 December 2017 (“Circular”), and the finalisation announcement released by the Company on the Stock Exchange News Service ("SENS") on Friday, 22 December 2017 (“Finalisation Announcement”), in terms of which, inter alia, the Company specified the terms upon which it would pay a special cash dividend of R23,00 per ordinary share (“Share”) to shareholders (“the Cash Dividend”) with an election, in respect of all or a part of their shareholding, to receive a scrip distribution of fully-paid capitalisation Shares ("the Scrip Distribution") in lieu of the Cash Dividend. At the request of the JSE, the Circular and Finalisation Announcement record that a portion of the Cash Dividend will be funded from foreign sources. The JSE now requires the Company to clarify that the Cash Dividend and Scrip Distribution will constitute a local (i.e. South African) distribution and not a foreign distribution. The Company will pay the Cash Dividend and settle the issue price of the Scrip Distribution from a local South African bank account. The reference to the funding of a portion of the Cash Dividend from foreign sources means that the Company will be put in funds to pay the relevant portion of the Cash Dividend and settle the relevant portion of the issue price of the Scrip Distribution from cash generated by one of its foreign subsidiaries and distributed to the Company prior to the payment of the Cash Dividend and issue of Scrip Distribution Shares. It is not intended to mean, and does not mean, that a portion of the Cash Dividend and/or issue price of any capitalisation Shares is paid or settled using foreign cash. Shareholders are nevertheless specifically referred to the tax implications of the Cash Dividend and the Scrip Distribution election as set out in paragraph 3.4 of the Circular. The salient dates for the proposed Cash Dividend and Scrip Distribution alternative, as contained in the Circular, have not been amended and remain unchanged. Any change will be announced on SENS. Johannesburg 8 January 2018 Transaction Sponsor Pallidus Capital Proprietary Limited Corporate Finance Advisor Avior Capital Markets Proprietary Limited Date: 08/01/2018 03:23:00 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.