JSE : Voluntary announcement regarding commercial arrangement with and investment in Globacap Technology Limited

JSE LIMITED

(Incorporated in the Republic of South Africa) Registration number: 2005/022939/06

Share Code: JSE

ISIN Code: ZAE000079711

LEI: 213800MZ1VUQEBWRFO39 ("JSE" or "Group")

VOLUNTARY ANNOUNCEMENT REGARDING COMMERCIAL ARRANGEMENT WITH AND INVESTMENT IN GLOBACAP TECHNOLOGY LIMITED

Shareholders are advised that the JSE has agreed the terms of a commercial arrangement with Globacap Technology Limited ("Globacap") to establish a blockchain-enabled private placements platform to enable the raising of infrastructure finance and to allow small-to-medium sized issuers to raise capital in South Africa (the "Commercial Arrangement"). The Commercial Arrangement includes digital registry services, and remains subject to licensing approval requirements.

Rationale for Commercial Arrangement

As private capital markets continue to grow in importance, and are an increasingly attractive alternative source of capital for issuers, the JSE intends to create a centralised platform for issuers to effectively and efficiently raise capital. These efforts align directly with the Group's stated growth strategy.

Information on Globacap

Globacap is a next-generation capital markets fintech company offering blockchain solutions for private capital markets and digital registry services. Globacap is registered and headquartered in the United Kingdom ("UK"), and through its regulated private placement and capital management platform, digitally administers over £1 billion of private shares and debt instruments for 60 companies and over 8 000 shareholders worldwide.

The Globacap platform provides seamless, end-to-end fund raising management tools designed to automate private issuances in the equity and debt capital markets. The platform also offers second round liquidity capabilities that enable holders of equity or debt instruments to exit or syndicate their original investment. Additionally, Globacap offers a complementary digital registrar service that digitises and simplifies the administration of shareholder registers.

Investment in Globacap

In support of the Commercial Arrangement and in line with the JSE's intention to build a longer term strategic relationship with Globacap to enhance and expand the Group's product offering, the JSE will invest GBP4 million for a minority stake in Globacap (the "Investment"). The Investment remains subject to the

fulfilment of conditions precedent, including approval from the Financial Conduct Authority in the UK.

Rationale for the Investment and source of funds

The Investment allows the JSE to forge a closer working association with Globacap in developing the requisite skills, expertise and relationships to digitise products and services, and implement next-generation technologies. Through this collaboration, the JSE intends to replicate and adapt Globacap's private markets and registry strategy and product offering across African markets, while reducing the execution risk of expanding into new markets and products.

The Investment will be funded from the Group's existing cash reserves and is expected to be finalised during Q1 2021.

The information provided in this announcement has not been reviewed or reported on by the Group's external auditors.

Sandton

5 November 2020

Transaction Advisor and Sponsor

RAND MERCHANT BANK (A division of FirstRand Bank Limited)