Pinnacle : General Repurchase of Shares

PINNACLE HOLDINGS LIMITED

(Registration number: 1986/000334/06)

Share code: PNC

ISIN: ZAE0000184149

('the Company' or 'Pinnacle' or 'the Group')

GENERAL REPURCHASE OF SHARES

1. INTRODUCTION

The board of directors of Pinnacle ('the Board') hereby advises shareholders that Pinnacle has cumulatively repurchased 4 493 492 ordinary shares, representing 2.7% of the Company's issued share capital (excluding treasury shares), in terms of the general authority granted by shareholders at the annual general meeting ('AGM') held on 3 December 2015 ('Repurchase').

2. DETAILS OF THE GENERAL REPURCHASE

Details of the Repurchase are as follows:

Dates of repurchases: 4 July 2016 to 28 September 2016

Number of shares repurchased: 4 493 492

Lowest repurchase price per share: R 14.64

Highest repurchase price per share: R 16.05

Total value of shares repurchased: R 70 601 804

All of the shares repurchased were done so during a closed period and were effected pursuant to a repurchase programme put in place prior to the commencement of the closed period, in accordance with the JSE Listings Requirements.

Application will be made to the JSE for the delisting and cancellation of the ordinary shares. It is expected that the delisting and cancellation will become effective on or about 17 October 2016.

The Repurchase was effected through the order book operated by the JSE and done without any prior understanding or arrangement between the Company and the counter parties.

Pinnacle holds 12 069 974 shares as treasury shares, representing 6.75 % of the Company's issued share capital. The Repurchase had no effect on the number of treasury shares.

Following the Repurchase, the extent of the general authority to repurchase shares outstanding is 26 691 003 ordinary shares, representing 17.12 % of the total issued share capital of Pinnacle,at the time the authority was granted.

3. OPINION OF THE BOARD

The Board has considered the effect of the Repurchase and is of the opinion that, for a period of 12 months following the date of this announcement:

- the company and the Group will be able, in the ordinary course of business, to repay their debts;

- the assets of the company and the Group will be in excess of the liabilities of the company and the Group;

- the company and the Group's ordinary capital and reserves will be adequate for ordinary business purposes; and

- the company and the Group will have adequate working capital for ordinary business purposes.

4. FINANCIAL INFORMATION PERTAINING TO THE GENERAL REPURCHASE

The impact of the Repurchase has been calculated and the Board can confirm that the implementation of the Repurchase is limited only to a reduction in cash of R70 601 804 as the Repurchase was funded from the Company's available cash resources.

Johannesburg

3 October 2016

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