Trading statement for the six months ended 31 August 2018 Verimark Holdings Limited Incorporated in the Republic of South Africa Registration number: 1998/006957/06 JSE share code: VMK ISIN number: ZAE000068011 ("Verimark" or "the Company") TRADING STATEMENT FOR THE SIX MONTHS ENDED 31 AUGUST 2018 The first six months of trading has been difficult given the volatility of the rand against foreign currencies. The South African economy is in a technical recession and consumer confidence has suffered as a result. Although Verimark’s revenue is only marginally down compared to the six months ended 31 August 2017 (“comparative period”), the Company incurred a loss before tax compared to a profit before tax in the comparative period. This is due to certain costs being incurred to improve revenue, which will only reflect financial benefits in future months. Shareholders are advised that a reasonable degree of certainty exists that earnings for the six months ended 31 August 2018 will be lower than the comparative period, as Verimark: • is expected to record a loss before taxation of between R4.5 million and R4.0 million, which is lower than the profit before taxation of R2.2 million reported for the comparative period; • headline (loss)/earnings per share is expected to be in the range of (0.13) and 0.07 cents per share, which is lower than the headline earnings of 1.03 cents per share reported for the comparative period; and • earnings/(loss) per share is expected to be in the range of (0.13) and 0.07 cents per share, which is lower than the headline earnings of 1.03 cents per share reported for the comparative period. The financial information on which this trading update was based has not been reviewed or reported on by the Company’s external auditors. The Company`s financial results for the six months ended 31 August 2018 will be published on or about 22 October 2018. 27 September 2018 Sponsor Grindrod Bank Limited Date: 27/09/2018 05:20:00 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.