Letter to our Shareholders

Selective Empowerment Investments LTD July 2017 Newsletter Letter to our Shareholders The SEI Companies are currently going through a process that could see them being among the biggest empowerment companies in South Africa. Company Background The two companies SEI1 & SEI2 have been our investment vehicles since 2008. The company directors recently took control of the management of the two companies. Investment Report For the year 01 July 2016 till 30 June 2017, SEI1 & SEI2 outperformed the JSE All Share index delivering 6.30% and 5.76% respectively News & Updates The SEI Companies are currently going through a process that could see them being among the biggest empowerment companies in South Africa. Celebrating Mandela Day 18 July Everyone can rise above their circumstances and achieve success if they are dedicated to and passionate about what they do. - Nelson Mandela

Mr. Mike Tshishonga Chairman Our Business in Numbers SEI 1 and SEI 2 9 years in operation since inception 45.3% growth since inception 28000+ active shareholders to date R188m total combined asset value Letter to our Shareholders Dear SEI Shareholders The SEI Companies are currently going through a process that could see them being among the biggest empowerment companies in South Africa. Under the current economic conditions, both share portfolios are doing relatively well when compared to the JSE s top 40 index. Plans are in place to build these companies into successful and vibrant BEE companies with solid national presence. On top of the short-term priority list for the companies are: composition of the balanced board of directors, functional board committees, well experienced and qualified management, productive personnel at all levels, annual general meeting, and all other corporate governance issues. In the medium to long-term the focus is on: income generating projects, listing of the companies on the stock exchange, growth through acquisitions and other means, and strategic BEE partnerships with some of the SA giants. As the board, management, staff and together with all our service providers we remain resolute to the well-being of the companies for the benefit of all the shareholders. Thank you for your understanding and continued support. We will keep you updated with what is happening with these companies. In these newsletter, you will find relevant and specific information about the SEI companies. Enjoy! Regards The SEI Management Team

Mr. Mos Maja Executive Director (Marketing) Company Background The two companies SEI1 and SEI2 have been your investment vehicles since 2008. Since formation, until recently these companies and their investments were managed by Virtus Financial Services (Pty) Ltd, the financial services provider company in the StratCorp group. The directors of SEI1 and SEI2 recently took control of the management of the two companies, following the cancellation of the management agreement with Virtus. This has the result that SEI1 and SEI2 are now totally stand-alone companies under the management control of the directors and that, among other things, Virtus will no longer manage the investments of SEI1 and SEI2. Thomas Ramokolo - Operations Manager In conjunction with the powers of the Board of Directors of SEI 1 and SEI 2, the bulk of the investment management function for SEI1 and SEI 2 s investments has been entrusted to Pan-African Asset Management (Pty) Limited (PAM), a fully licensed financial services provider with a fine track record and assets in excess of R5,4billion under management. PAM is a broadly empowered asset manager rated by Empowerdex as a Black-owned and controlled company with unconstrained operational capacity and has an AAA rating as a level one contributor (www.pam-asset.co.za). SEI1 and SEI2 are now operating from their offices at Suite 401 on the 4th floor of the Lougardia Building, 1262 Embankment Road, Centurion. How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case. - Robert G. Allen

SeIective Empowerment Investments Investment Report Selective Empowerment Investments 1 Ltd Inception Date 1 April 2008 Selective Empowerment Investments 2 Ltd Inception Date 11 September 2009 Net asset value per share R1.13 * Net asset value per share R1.62* Total net asset value of SEI1 R157 028 441* * (Unaudited) Investment Objective Selective Empowerment Investments 1 Ltd (SEI1) targets high growth investment opportunities mainly in listed instruments that offer the maximum potential for growth over the medium to long term. The investment portfolio of SEI1 is managed by Pan African Asset Management (Pty) Ltd ( PAM ) (Reg. No 1996/008413/07) an authorised Financial Service Provider (FSP 620). Fees PAM charges SEI1 a fixed fee at 0.6% per annum of the assets under management and is calculated and deducted on a monthly basis. No performance fees are charged on the investment portfolio. Underlying Holdings Share / Fund Share Code % of portfolio MTN Zakhele ** MTNZ 8.57% British American Tobacco BTI 7.33% Phuthuma Nathi ** PN 6.73% SABMiller SAB 6.08% BHP Billiton BIL 6.06% Coronation Global Managed COGM 5.72% Allan Gray - Orbis Global Equity FF AGOE 5.59% Compagnie Financiere Richemont CFR 5.17% Cash and other investment under 5% 48.75% Total Net Assets 100.00% Total net asset value of SEI2 R8 297 943* *(Unaudited) Investment Objective Selective Epowerment Investments 2 Ltd(SEI2), targets hight growth by investing up to 75% of its capital into high growth companies (equities), the balance invested in property, bonds, preference shares & money market. The investment portfolio of SEI2 is managed by Pan African Asset Management (Pty) Ltd ( PAM ) (Reg. No 1996/008413/07) an authorised Financial Service Provider (FSP 620). Fees PAM charges SEI2 a fixed fee at 0.6% per annum of the assets under management and is calculated and deducted on a monthly basis. No performance fees are charged on the investment portfolio. Underlying Holdings Share / Fund Share Code % of portfolio Phuthuma Nathi ** PN1 14.40 Coronation Global Managed Feeder Fund COGM 9.24 MTN Zakhele ** MTNZ 9.17 Foord International Feeder Fund FIFF 8.15 Richemont CFR 4.56 SAB Miller SAB 4.12 FirstRand FSR 2.83 Woolworths WHL 2.25 Cash and other investments under 2% - 45.28% Total Net Assets 100.00% ** Unlisted shares

Investment Summary For the year 01 July 2016 till 30 June 2017, SEI1 outperformed the JSE All Share index delivering 6.30%. Similarly, SEI2 outperformed the JSE All Share index by delivering a return of 5.76%. Both SEI1 and SEI2 benefitted from being exposed to a diversified portfolio with largest single weights in counters with exposure to the British Pound, Euro and US Dollar. The Pan-African IP Income Hunter (PAIH) was added to both SEI1 and SEI2 for further diversification benefits. The Pan-African IP Income Hunter fund (PAIH) has returned 11% over the last year, ended June 2017. The largest single counters in SEI1 include the Pan-African IP Income Hunter Fund (PAIH), BHP Billiton Plc (BIL), British American Tobacco Plc (BTI), and Allan Gray Orbis Global Equity Feeder (AGOE). SEI 2 s largest single counters include the Coronation Global Managed Fund A (COGM), Foord International Feeder Fund (FIFF), Pan-African IP Income Hunter Fund (PAIH), and BHP Billiton Plc (BIL). Both funds have a healthy cash exposure, and this will allow both funds to buy companies presenting growth opportunities at reasonable prices. A new mining charter was announced by the Minister of Mineral Resources Mosebenzi Zwane. As a result, mining company shares on the JSE plummeted, with more than R30bn in market value disappearing on the day of the announcement. Mining companies with exposure to South Africa were particularly hard hit. Anglo American (AGL) with its two major subsidiaries in South Africa, Kumba Iron Ore (KIO) and Anglo Platinum (AMS), lost 7% of their value on the day of the announcement. Both SEI1 and SEI2 sold out of Anglo American (AGL) months earlier, as fundamentals warranted exposure to BHP Billiton instead. SEI 1 has received R1 054 584 in the form of interest, and R2 648 881 in the form of dividends over the reporting period. Comparably, SEI 2 has received R54 002 in the form of interest, and R78 681 in the form of dividends over the reporting period. Overview Over the same period, the South African All Share Index (ALSI) delivered a return of -1.16%. All three super sectors returned negative returns over this period, with the Resource 20 index being flat at -0.05%. The Financial 15 index returned -1.66%, and the Industrial 25 index returned -0.62%. Rand strength of 11.22% against the dollar was a key factor holding back returns for much of the year, while political events hurt domestically-focussed sectors. The South Africa s economy slipped into a technical recession in the first quarter of 2017, with GDP shrinking by 0.7% quarter on quarter, after contracting by 0.3% in the final quarter of 2016. This is the second recession experienced post 1994. The statistics point to sharply lower production and sales reported in construction, manufacturing and transport. This reflects subdued demand throughout the South African economy. Outlook Rand strength remains a risk to both SEI1 and SEI2, as foreign investors search for positive real yields in a low return and negative interest rate environment. The fund believes that it would be prudent to wait and see how the political landscape unfolds, at least until the ANC s elective conference in December 2017, and the subsequent response from the rating agencies. Growth in the South African economy is expected to remain subdued, and along with-it revenue collections for the South African Government. The rating agencies will review South Africa s credit worthiness again in the fourth quarter of 2017, and the fund foresees the risk of a downgrade to sub-investment grade only in 2018. Both funds remain committed to seeking quality companies which exemplify growth. Diversification will play a key role in the next financial year, as volatility in 2017 is expected to continue as global imbalances and political pressures continue to build. Disclaimer The material in this presentation has been prepared by Pan-African Asset Management (PAM) for investors (and potential investors) solely for informational purposes. Whilst great care is taken in the preparation of this presentation and the information contained herein has been prepared to assist investors (and prospective investors) in making their own evaluation of PAM s capabilities, it does not purport to be all-inclusive, nor that contains all of the information required to formulate projections and assumptions made in this presentation. Before acting on any information, investors (and prospective investors) should consider the appropriateness of the information having regard to time, and whether they have the necessary expertise to make informed decisions about the information disseminated in this presentation. Where applicable, investors (and prospective investors) should seek independent financial advice. Investors (and prospective investors) will be expected to conduct their own due diligence investigation regarding these and all other matters pertinent to this presentation. Past performance is not a reliable indication of future performance.

NEWS updates Annual General Meeting (AGM) after finalising the Financial Statements As we finalise the shareholder s register, our next step will be to organise the Annual General Meeting (AGM) which is long over-due. The AGM will give shareholders the opportunity to weigh in on the company s performance and standing on matters of governance and leadership. SEI Listing on JSE for tradability of shares One of the many issues raised by shareholders is their wish to be afforded the ability to trade their shares or cash in their investment. It is our aim to initiate a process of listing the companies, both SEI 1 and SEI2 on the Securities Market platform (e.g. JSE main board or AltX, etc.) Shareholder queries to either SEI office With the understanding that from time to time, you may have queries regarding your investment. We request that you direct all queries to the SEI offices (see contact details on back page), but not to recruiters or presenters. They are not company employees or representatives and therefore may not have all the information you require. Matters regarding shareholding in SEI1 and SEI2 companies must be referred to SEI office. Please provide us with your current contact details on the attached form. It is in your best interest that you complete the feedback form attached to update your details with us. Your updated details will ensure that you get the correct information from SEI about any developments regarding your investment. Meet Our Client Services Team Moloko Chula - Client Services Josias Skhosana - Client Services Stephen Merriman - Client Services

Communicating with Shareholders The Directors of SEI1 and SEI2 fully realise the need for effective communication with the shareholders and wish to ensure that we have your correct contact details. Previously when we have met with many of our shareholders, they indicated that the need for shareholders to be kept informed about the state of their investments and about developments in their companies. We endeavour to maintain an open line of communication to ensure that you are always informed of any developments and update on your investment. The directors wish to emphasise that SEI1 and SEI2 belong to their shareholders and not to any manager or individual or the StratCorp group. Feel free to contact us with your questions, and we shall endeavour to be of assistance. SEI1 and SEI2 are now operating from their offices at Suite 401 on the 4th floor of the Lougardia Building, 1262 Embankment Road, Centurion. Comments: Signature Date

Contact Us SELECTIVE EMPOWERMENT INVESTMENTS 1262 Embankment Road Suite 401 Lougardia Building Centurion, 0157 P O Box 11379 Die Hoewes 1, 0163 087 095 3160 Tel Nr: +27 (0) 12 942 0038 or Tel Nr: +27 (0) 12 942 0039 Fax Nr: +27 (0) 86 416 8457 info@seinvest.co.za www.seinvest.co.za CONTACT DETAILS FORM Please complete the following, bearing in mind that it will enable the company to communicate with you more efficiently, Mobile numbers and addresses are most important due to the unreliability of postal delivery: First Name Surname Contact Nr (C) Middle Name ID Number (W/H) Email Address Address Code