Royal Bafokeng Holdings investment in Transaction Capital through a specific issue of shares Transaction Capital Limited TransCapital Investments Limited (Incorporated in the Republic of South Africa) (Incorporated in the Republic of South Africa) Registration number: 2002/031730/06 (Registration No. 2016/130129/06) JSE share code: TCP Bond Company code: TCII ISIN: ZAE000167391 ("Transaction Capital" or the "Company" or the "Group") ROYAL BAFOKENG HOLDINGS INVESTMENT IN TRANSACTION CAPITAL THROUGH A SPECIFIC ISSUE OF SHARES EXECUTIVE SUMMARY Transaction Capital is pleased to announce Royal Bafokeng Holdings Proprietary Limited’s ("RBH") intention to invest, through its wholly owned subsidiary company Royal Bafokeng Resources Holdings Proprietary Limited, an initial R500 million in the Company as a long-term strategic shareholder. To this end, 12 million ordinary shares (representing 1.8% of existing ordinary shares in issue) were acquired via a secondary purchase in an off-market transaction on 19 November 2020. Furthermore, Transaction Capital and RBH will enter into a Subscription Agreement in terms of which RBH is expected to increase its holding in the Company, in terms of a specific issue for cash (the "Specific Issue"), by subscribing for a further 12.4 million ordinary shares at R20 per share (representing a 7,4% discount to the 30-day VWAP of Transaction Capital up to and including 23 November 2020) in January 2021, subject to shareholder approval. A circular to shareholders and notice of general meeting will be distributed in due course. RATIONALE FOR THE TRANSACTION RBH is a highly regarded and respected South African investment firm and thus the board of the Company is fully supportive of the Specific Issue which will be the start of a long-term strategic relationship between RBH and Transaction Capital. RBH strives to continually improve the economic wellbeing and quality of life of the Royal Bafokeng Nation community by investing in businesses that will generate exceptional returns over the long term, thus enabling it to contribute directly to the upliftment of the Royal Bafokeng Nation community, both today and into the future. INTENDED USE OF THE FUNDS Transaction Capital continues to leverage its high-IP, technologies and low-cost operational infrastructure to grow in adjacent market segments, related alternative asset classes and new geographies. As market dynamics in the aftermath of COVID-19 become clearer, certain strategic growth initiatives in the TCRS Group and TC Global Finance provide unprecedented opportunities to accelerate capital deployment for attractive risk-adjusted returns. The Group’s financial position is robust, with ample access to liquidity. However, given the protracted impact of COVID-19, Transaction Capital believes it is prudent at this time to enhance the Group’s financial flexibility and strategic agility. The capital raised pursuant to the Specific Issue will support these strategic initiatives. Hyde Park 24 November 2020 Transaction Capital Limited Investor Relations – Phillipe Welthagen +27 (0) 84 512 5393 Sponsor Rand Merchant Bank (A division of FirstRand Bank Limited) South African Legal Counsel to the Company ENSafrica Date: 24-11-2020 03:34:00 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.