Update in respect of the Proposed Transactions by Ecsponent ECSPONENT LIMITED Incorporated in the Republic of South Africa Registration number: 1998/013215/06 JSE Code: ECS - ISIN: ZAE000179594 Debt Issuer Code: ECSP (“Ecsponent” or “the Company”) UPDATE IN RESPECT OF THE PROPOSED TRANSACTIONS BY ECSPONENT Shareholders are referred to the terms announcement released on SENS dated 29 June 2018, in which they were, inter alia, advised that: a) Ecsponent Treasury Services Proprietary Limited, a wholly owned subsidiary of Ecsponent, has entered into an acquisition agreement to subscribe for 100% of the issued ordinary shares of Pink Orchid Limited, an investment holding company yet to be incorporated, from Purple Orchid Limited, a wholly owned subsidiary of Ecsponent Capital (RF) Limited, a related party, for a total consideration of R280 million; b) Ecsponent has entered into a subscription agreement with Invest Solar Africa Limited (“Invest Solar Africa”), a related party, in terms of which the Company has agreed to subscribe for a maximum of 40 000 000 shares in Invest Solar Africa at a subscription price of BWP1.00 (one Botswana Pula) per share, pursuant to a private placement of such shares; c) Ecsponent has entered into an underwriting agreement with Invest Solar Africa, in terms of which Ecsponent has agreed to underwrite and subscribe for all the shares in Invest Solar Africa which are not taken up during the initial public offering of Invest Solar Africa pursuant to the listing of its ordinary shares on the Venture Capital Board of the Botswana Stock Exchange; and d) Ecsponent has entered into an investment management agreement with MHMK Capital Botswana Limited (“MHMK Capital”), a related party, which is controlled by George Manyere, a material shareholder and a non-executive director of the Company, in terms of which MHMK Capital will manage the portfolio of assets and investments owned by Ecsponent Limited incorporated in Botswana a wholly owned subsidiary of the Company; (collectively “the Transactions”). Shareholders were also advised that a circular, containing details of the Transactions, would be distributed to shareholders in due course (“the Circular”). Shareholders are advised that a delay has been encountered due to the finalisation of certain financial information of the target companies, which is required to be included in the Circular. The JSE has, upon written request by the Company, granted the Company an extension of the 60 day rule pursuant to paragraph 9.20(b) of the JSE Listings Requirements, allowing the Company to dispatch the Circular in respect of the Transactions to shareholders by no later than 15 October 2018. Pretoria 28 August 2018 Sponsor and Corporate Advisor Questco Corporate Advisory (Pty) Ltd and Questco Proprietary Limited Date: 28/08/2018 02:10:00 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.