THIS CIRCULAR IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION.

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THIS CIRCULAR IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION.

The definitions and interpretation commencing on page 5 of this Circular apply mutatis mutandis to this cover.

ACTION REQUIRED BY GPI SHAREHOLDERS

• This entire Circular is important and should be read with particular attention to the section entitled “Action required by GPI Shareholders”, which commences on page 3.

• If you are in any doubt as to what action you should take, you should consult your CSDP, Broker, banker, legal advisor, accountant or other professional advisor immediately.

• If you have disposed of all of your Shares, please forward this Circular together with the attached form of proxy (yellow), to the purchaser to whom, or the CSDP, Broker or other agent through whom the disposal was effected.

• GPI does not accept responsibility and will not be held liable for any failure on the part of the CSDP or Broker of any holder of Dematerialised Shares to notify such Dematerialised Shareholder of the transactions and actions set out in this Circular.

GRAND PARADE INVESTMENTS LIMITED Incorporated in the Republic of South Africa

(Registration number 1997/003548/06) Share code: GPL ISIN: ZAE000119814

(“GPI” or “the Company”)

CIRCULAR TO GPI SHAREHOLDERS

Relating to:

– the approval of the SunWest and Worcester Transaction; – the approval of the Sibaya Transaction;

– the approval of the GPI Slots Transaction;

– the approval of the GPI Slots Repurchase Call Option; and – the approval of the GPI Slots Forced Sale,

and incorporating:

– the Notice of General Meeting; and

– a form of proxy (yellow) in respect of the General Meeting (for use by Certificated Shareholders and Dematerialised Shareholders with “own-name” registration only).

Lead Corporate Advisor Sponsor and Corporate Advisor

Independent Reporting Accountants and Auditors

Legal Advisor

Date of issue: 21 July 2014

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FORWARD-LOOKING STATEMENT DISCLAIMER

The definitions set out on page 5 of this Circular apply to this forward-looking statement disclaimer.

This Circular contains statements about GPI and/or the GPI Group that are or may be forward looking statements. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. These forward-looking statements are not based on historical facts, but rather reflect current expectations concerning future results and events and generally may be identified by the use of forward-looking words or phrases such as “believe”, “aim”, “expect”, “anticipate”, “intend”, “foresee”, “forecast”, “likely”, “should”, “planned”, “may”, “estimated”, “potential” or similar words and phrases.

By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. GPI cautions that forward-looking statements are not guarantees of future performance. Actual results, financial and operating conditions, liquidity and the developments within the industry in which GPI operates may differ materially from those made in, or suggested by, the forward-looking statements contained in this Circular.

All these forward-looking statements are based on estimates and assumptions made by GPI, as communicated in publicly available documents by GPI, all of which estimates and assumptions, although GPI believes them to be reasonable, are inherently uncertain. Such estimates, assumptions or statements may not eventuate. Factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied in those statements or assumptions include other matters not yet known to GPI or not currently considered material by GPI.

Shareholders should keep in mind that any forward-looking statement made in this Circular or elsewhere is applicable only at the date on which such forward-looking statement is made. New factors that could cause the business of GPI not to develop as expected may emerge from time to time and it is not possible to predict all of them. Further, the extent to which any factor or combination of factors may cause actual results to differ materially from those contained in any forward-looking statement are not known. GPI has no duty to, and does not intend to, update or revise the forward-looking statements contained in this Circular after the date of this Circular, except as may be required by law.

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CORPORATE INFORMATION

The definitions and interpretation commencing on page 5 of this Circular apply mutatis mutandis to this Corporate Information section.

COMPANY SECRETARY LEAD CORPORATE ADVISOR

Lazelle Parton Leaf Capital Proprietary Limited

33 on Heerengracht, Foreshore (Registration number 1997/020724/07)

Cape Town, 8001 5th Floor, Protea Place

(PO Box 6563, Roggebaai, 8012) Cnr Protea Road and Dreyer Street Claremont, Cape Town, 7708 (PO Box 44302, Claremont, 7735)

REGISTERED OFFICE OF THE COMPANY INDEPENDENT REPORTING ACCOUNTANTS

AND AUDITORS 33 on Heerengracht, Foreshore

Cape Town, 8001 Ernst & Young Incorporated

(PO Box 6563, Roggebaai, 8012) (Practice number: 918288) Ernst & Young House

Date of incorporation of GPI 35 Lower Long Street

12 March 1997 Cape Town, 8001

(PO Box 656, Cape Town, 8000) Place of incorporation of GPI

Pretoria

SPONSOR AND CORPORATE ADVISOR TRANSFER SECRETARIES

PSG Capital Proprietary Limited Computershare Investor Services Proprietary Limited (Registration number 2006/015817/07) (Registration number 2004/003647/07)

1st Floor, Ou Kollege Ground Floor

35 Kerk Street 70 Marshall Street

Stellenbosch, 7599 Johannesburg, 2001

(PO Box 7403, Stellenbosch, 7599) (PO Box 61051, Marshalltown, 2107) and at

1st Floor, Building 8

Inanda Greens Business Park 54 Wierda Road West Wierda Valley Sandton, 2196

(PO Box 987, Parklands 2121)

LEGAL ADVISOR INDEPENDENT EXPERT

Bernadt Vukic Potash & Getz Mazars Corporate Finance Proprietary Limited

11th Floor Mazars House

No 1 Thibault Square Rialto Road Grand Moorings Precinct

Cape Town, 8001 Century City, 7441

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Annexure 3 Independent Reporting Accountants’ report on the consolidated pro forma financial information of GPI 55 Annexure 4 Forecast financial information of GPI Slots for the financial years ended 30 June 2014, 30 June 2015 and 30 June 2016 57 Annexure 5 Independent Reporting Accountants’ Report on the forecast financial information of GPI Slots 60 Annexure 6 Historical financial information of GPI for the financial years ended 30 June 2013, 30 June 2012 and 30 June 2011 61

Annexure 7 Interim financial information of GPI for the six months ended 31 December 2013 124

Annexure 8 Historical financial information of SunWest for the financial years ended 30 June 2013, 30 June 2012 and

30 June 2011 as extracted from the financial information of SUI 137 Annexure 9 Historical financial information of Worcester for the financial years ended 30 June 2013, 30 June 2012 and

30 June 2011 as extracted from the financial information of SUI 139 Annexure 10 Historical financial information of Dolcoast for the financial years ended 30 June 2013, 30 June 2012 and

30 June 2011 as extracted from the financial information of GPI 140 Annexure 11 Historical financial information of GPI Slots Group for the financial years ended 30 June 2013, 30 June 2012 and

30 June 2011 141

Annexure 12 Independent Reporting Accountants’ reports on the annual financial statements for the years ended 30 June 2013,

30 June 2012 and 30 June 2011 of GPI Slots 177

Annexure 13 Reviewed condensed interim financial information of GPI Slots for the six months ended 31 December 2013 180 Annexure 14 Independent Reporting Accountants’ report on the reviewed interim financial information of GPI Slots 189

Annexure 15 Material borrowings of the GPI Group 190

Annexure 16 Details of directors of the Subsidiaries in the GPI Group 191

Annexure 17 Occurrence of a GPI Slots Trigger Event in terms of the GPI Slots Forced Sale Provisions 193

Annexure 18 Section 115 and section 164 of the Companies Act: Shareholders’ appraisal rights 195

Annexure 19 GPI Group structure before and after the implementation of the Transactions 200

Notice of General Meeting 202

Annexure A to the Notice of General Meeting: Electronic participation in the General Meeting 207

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ACTION REQUIRED BY GPI SHAREHOLDERS

The definitions commencing on page 5 of this Circular apply mutatis mutandis to this section on the action required by GPI Shareholders. Please take careful note of the following provisions regarding the action required by GPI Shareholders.

1. If you are in any doubt as to what action to take, please consult your CSDP, Broker, banker, attorney, accountant or other professional advisor immediately.

2. If you have disposed of all your Shares in GPI, please forward this Circular together with the attached form of proxy (yellow), to the purchaser of such Shares or to the CSDP, Broker, banker or other agent through whom the disposal was effected.

3. A general meeting of GPI Shareholders will be held at 18h00 on Thursday, 21 August 2014 at Meeting Room 1.4, Cape Town International Convention Centre, Foreshore, Cape Town, Western Cape, to consider and, if deemed fit, to pass the resolutions set out in the Notice of General Meeting attached to this Circular.

4. GENERAL MEETING

4.1 If you hold Dematerialised Shares: 4.1.1 Own-name registration

You are entitled to attend, or be represented by proxy, and may vote at the General Meeting. If you are unable to attend the General Meeting, but wish to be represented thereat, you must complete and return the attached form of proxy (yellow), in accordance with the instructions contained therein, to be received by the Transfer Secretaries, Computershare Investor Services Proprietary Limited, Ground Floor, 70 Marshall Street, Johannesburg, 2001 (PO Box 61051, Marshalltown, 2107) by no later than 18h00 on Tuesday, 19 August 2014. 4.1.2 Other than own-name registration

If your CSDP or Broker does not contact you, you are advised to contact your CSDP or Broker and provide them with your voting instructions. If your CSDP or Broker does not obtain instructions from you, they will be obliged to vote in accordance with the instructions contained in the Custody Agreement concluded between you and your CSDP or Broker. You must not complete the attached form of proxy. In accordance with the Custody Agreement between you and your CSDP or Broker you must advise your CSDP or Broker timeously if you wish to attend, or be represented at the General Meeting. Your CSDP or Broker will be required to issue the necessary letter of representation to you to enable you to attend, or to be represented at the General Meeting.

4.2 If you hold Certificated Shares

You are entitled to attend, or be represented by proxy, and may vote at the General Meeting. If you are unable to attend the General Meeting, but wish to be represented thereat, you must complete and return the attached form of proxy (yellow), in accordance with the instructions contained therein, to be received by the Transfer Secretaries, Computershare Investor Services Proprietary Limited, Ground Floor, 70 Marshall Street, Johannesburg, 2001 (PO Box 61051, Marshalltown, 2107) by no later than 18h00 on Tuesday, 19 August 2014.

4.3 Shareholders’ appraisal rights

Shareholders who wish to exercise their rights in terms of section 164 of the Companies Act, in relation to the SunWest and Worcester Transaction only, are referred to Annexure 18 of this Circular. Shareholders who wish to exercise their rights in terms hereof are required, before the Special Resolution to approve the SunWest and Worcester Transaction is voted on at the General Meeting, to give notice to the Company in writing objecting to the Special Resolution and to vote against the Special Resolution at the General Meeting.

4.4 Electronic participation at the General Meeting

Shareholders or their proxy(ies) may participate in the General Meeting by way of telephone conference call. A total of 20 telecommunication lines will be available for such participation. Shareholders or their proxies who wish to participate in the General Meeting via the teleconference facility must follow the instructions contained in Annexure A attached to the notice of General Meeting.

Shareholders who wish to participate in the General Meeting by phoning in must note that they will not be able to vote during the General Meeting.

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IMPORTANT DATES AND TIMES

The definitions and interpretations commencing on page 5 of this Circular apply mutatis mutandis to this important dates and times section.

2014 Circular containing Notice of General Meeting and form of proxy (yellow) posted to Shareholders on Monday, 21 July

Notice convening the General Meeting released on SENS on Monday, 21 July

Notice convening the General Meeting published in the South African press on Tuesday, 22 July Last day to trade in order to be eligible to vote at the General Meeting Friday, 8 August Record date to be eligible to vote at the General Meeting Friday, 15 August Last day to lodge forms of proxies in respect of the General Meeting by 18h00 on Tuesday, 19 August Last date and time for Shareholders to give notice in terms of section 164 of the Companies Act to

GPI objecting to the Special Resolution approving the SunWest and Worcester Transaction by 18h00 on Thursday, 21 August General meeting of Shareholders to be held at 18h00 on Thursday, 21 August

Results of the General Meeting released on SENS on Thursday, 21 August

Results of the General Meeting published in the South African press on Friday, 22 August

If the SunWest and Worcester Transaction is approved by Shareholders:

Last date on which Shareholders who voted against Special Resolution Number 1 may require the Company to seek court approval in terms of section 115(3)(a) but only if Special Resolution was opposed

by at least 15% of the voting rights exercised thereon Thursday, 28 August Last date on which Shareholders who voted against Special Resolution Number 1 can make application

to the court in terms of section 115(3)(b) of the Companies Act Thursday, 4 September Last date for GPI to send objecting Shareholders notices of the adoption of the Special Resolution

approving the SunWest and Worcester Transaction, in terms of section 164 of the Companies Act Thursday, 4 September

If Shareholders do not exercise their rights in terms of section 115(3)(a) and 115(3)(b) of the Companies Act:

Finalisation announcement in respect of the SunWest and Worcester Transaction released on SENS on Thursday, 4 September

Note

(1) The above dates and times are subject to amendment. Any such amendment will be released on SENS. (2) GPI Shareholders are referred to page 3 of the Circular for information on the action required by Shareholders.

(3) If the General Meeting is adjourned or postponed, forms of proxy submitted for the initial General Meeting will remain valid in respect of any adjournment or postponement of the General Meeting.

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DEFINITIONS AND INTERPRETATION

In this Circular, unless the context indicates otherwise, reference to the singular shall include the plural and vice versa, words denoting one gender include the others, words and expressions denoting natural persons include juristic persons and associations of persons and the following words and expressions bear the meanings assigned to them below:

“the Act” or “Companies Act”

the Companies Act, No 71 of 2008 (as amended);

“Afrisun KZN” Afrisun KZN Proprietary Limited (registration number 1996/007228/07), a private company duly incorporated in accordance with the laws of South Africa, operating as Sibaya Casino and Entertainment Kingdom beneficially owned by the following entities:

• Afrisun KZN Community Development Trust (10.00%); • Afrisun Leisure Investments Proprietary Limited (15.65%); • Dolcoast Investments SPV Proprietary Limited (23.99%); • Foromor Investments No 142 Proprietary Limited (0.02%); • Foromor Investments No 143 Proprietary Limited (0.02%); • Foromor Investments No 146 Proprietary Limited (0.02%); • Foromor Investments No 147 Proprietary Limited (0.02%); • Foromor Investments No 148 Proprietary Limited (0.02%); • Foromor Investments No 1410 Proprietary Limited (0.02%); • Foromor Investments No 1411 Proprietary Limited (0.02%); • Foromor Investments No 1414 Proprietary Limited (0.02%); • Sun International (South Africa) Limited (47.66%); • The Siyakha Development Trust (2.52%); and • The Sun International Employee Share Trust (0.01%);

“Agreements” collectively, the Sibaya Sale Agreement, the SunWest and Worcester Sale Agreement and the GPI Slots Sale Agreement;

“the Board” or “the Directors”

the board of directors of GPI;

“Broker” a “stockbroker” as defined in the Financial Markets Act, or its nominee; “Business Day” any day, other than a Saturday, Sunday or official public holiday in South Africa; “Cents” South African cents;

“Certificated Shareholders”

Shareholders who hold Certificated Shares;

“Certificated Shares” shares which have not been Dematerialised, title to which is represented by a share certificate or other Document of Title;

“the Circular” this bound document distributed to Shareholders, dated Monday, 21 July 2014, including its annexures, the notice of General Meeting and a form of proxy (yellow) and prepared in accordance with the JSE Listings Requirements;

“Companies Regulations” the regulations published by the Minister of Trade and Industry in terms of section 223 of the Companies Act, and which include regulations relating to the functioning of the TRP;

“Competition Act” the Competition Act, No 89 of 1998;

“Competition Authorities” means the commission established pursuant to Chapter 4, Part A of the Competition Act or the tribunal established pursuant to Chapter 4, Part B of the Competition Act or the appeal court established pursuant to Chapter 4, Part C of the Competition Act;

“CSDP” a central securities depository participant registered in terms of the Financial Markets Act, with whom a beneficial holder of Shares holds a dematerialised Share account;

“CTICC” Cape Town International Convention Centre;

“Custody Agreement” the agreement which regulates the relationship between the CSDP or Broker and each beneficial holder of Dematerialised Shares;

“Dematerialised Shares” shares which have been incorporated into the Strate system and which are no longer evidenced by certificates or other physical documents of title;

“Dematerialised Shareholders”

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“Dematerialised Own-Name Shareholders”

shareholders who hold Dematerialised Shares and who have instructed their CSDP to hold their shares in their own name on the sub-register;

“Documents of Title” share certificates, certified transfer deeds, balance receipts or any other physical documents of title pertaining to the GPI Shares in question acceptable to the Board;

“Dolcoast” Dolcoast Investments Limited (registration number 1995/07115/06), a public company duly incorporated in accordance with the laws of South Africa and beneficially owned by the following parties:

• Adprops 3 Proprietary Limited (3.0%); • CBF Leisure Investments Limited (30.86%); • Grand Casino Investments KZN Proprietary Limited (24.9%); • Ibonda Investments Holdings Proprietary Limited (4.00%); • Investment Progress Group Holdings Proprietary Limited (15.00%); • Khangela Investments Proprietary Limited (3.00%); • Kipam Investments Proprietary Limited (3.25%); • KZN Inyanda Limited (10.00%); and • Mzwandile Investment Holdings Proprietary Limited (6.00%); “EBITDA” earnings before interest, taxes, depreciation and amortisation;

“Ernst & Young” Ernst & Young Incorporation (Practice number: 908207), an incorporation incorporated under the laws of South Africa, being the auditors and reporting accountants of the Company;

“the Existing

Management Agreement”

the agreement entered into between GPI Management Services and Slots Shared Services, in terms of which GPI Management Services provides certain management to the GPI Slots Group Companies for which it earns a monthly fee;

“the Existing ICT Services Agreement”

the agreement entered into, to or to be entered into, between GPI Technology, GPI Slots, GPI and SISA in terms of which GPI Technology will provide certain information and communications technology services to the GPI Slots Group Companies for which it earns a monthly fee;

“Financial Markets Act” the Financial Markets Act, No. 19 of 2012;

“FY2014” means the 12 month period ending on 30 June 2014; “FY2015” means the 12 month period ending on 30 June 2015; “FY2016” means the 12 month period ending 30 June 2016;

“General Meeting” the general meeting of GPI Shareholders to be held at 18h00 on Thursday, 21 August 2014, at Meeting Room 1.4, Cape Town International Convention Centre, Foreshore, Cape Town, Western Cape , to consider and, if deemed fit, approve the Resolutions proposed in the Notice of General Meeting;

“GPI” or “the Company” Grand Parade Investments Limited (registration number 1997/003548/06), a public company duly incorporated in accordance with the laws of South Africa and listed on the JSE;

“GPI Management Services”

means GPI Management Services Proprietary Limited (registration number 2012/117635/07), a private company duly incorporated in accordance with the laws of South Africa and a wholly-owned subsidiary of GPI;

“GPI Shareholders” or “Shareholders”

holders of GPI Shares;

“GPI Shares” or “Shares” ordinary shares of no par value in the issued share capital of the Company;

“GPI Slots” GPI Slots Proprietary Limited (registration number 2003/005175/07), a limited liability private company duly incorporated in accordance with the laws of South Africa and which is a wholly-owned subsidiary of GPI; “GPI Slots Closing

Date Accounts”

means the GPI Slots Investment One Closing Date Accounts and the GPI Slots Investment Two Closing Date Accounts;

“GPI Slots Effective Date” means either the GPI Slots Investment One Effective Date of the GPI Slots Investment Two Effective Date or the GPI Slots Investment Three Effective Date, or any of such dates as required by the context;

“GPI Slots Group Companies”

GPI Slots and each of its subsidiaries;

“GPI Slots Forced Sale” means the forced sale by the GPI Slots Forced Seller of the GPI Slots Forced Sale Equity, pursuant to the occurrence of a GPI Slots Forced Sale Trigger Event;

“GPI Slots Forced Sale Equity”

means all of the shares in and loan accounts against GPI Slots held by a GPI Slots Forced Seller upon the occurrence of a GPI Slots Forced Sale Trigger Event;

“GPI Slots Forced Sale Provisions”

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“GPI Slots Forced Seller” means SISA or GPI, as the context may require; “GPI Forced Sale

Trigger Event”

means any act or omission by SISA or GPI which will result in any of the events as set out in Annexure 17 occurring and which Forced Sale Trigger Event, will result in the GPI Slots Forced Sale;

“GPI Slots Initial Conditions Precedent”

means the outstanding conditions precedent to which the GPI Slots Transaction is subject to, as set out in paragraph 2.3.4 of this Circular;

“GPI Slots Investment One Effective Date”

means midnight between the last day of FY2014 and the 1st (first) day immediately succeeding such last day;

“GPI Slots Investment One Purchase Consideration”

the amount payable by SISA to GPI for the GPI Slots Investment One Sale Equity in terms of the GPI Slots Sale Agreement, amounting to R225,448,200 (two hundred and twenty five million four hundred and forty eight thousand and two hundred rand) in respect of the GPI Slots Investment One Sale Shares plus the face value of the GPI Slots Investment One Sale Claims, which amount is subject to adjustment as set out in paragraph 2.3.3.1.2 below;

“GPI Slots Investment One Sale”

the sale in terms of which, GPI sells to SISA and SISA purchases from GPI the GPI Slots Investment One Sale Equity;

“GPI Slots Investment One Sale Claims”

means 25.1% (twenty five point one percent) of all amounts of whatsoever nature owing by GPI Slots to GPI on the GPI Slots Investment One closing date on shareholder loan account, and includes any interest accrued thereon;

“GPI Slots Investment One Sale Equity”

The GPI Slots Investment One Sale Shares and the GPI Slots Investment One Sale Claims, provided that if there are no GPI Slots Investment One Sale Claims then any reference to “GPI Slots Investment One Sale Equity” shall be construed as a reference to the GPI Slots Investment One Sale Shares only;

“GPI Slots Investment One Sale Shares”

means 251 (two hundred and fifty one) GPI Slots Shares, constituting (immediately after the GPI Slots Investment One closing date) 25.1% (twenty five point one percent) of all the issued GPI Slots Shares; “GPI Slots Investment

Three Conditions Precedent”

means the outstanding conditions precedent to which the GPI Slots Investment Three Sale is subject to, the details of which has been set out in paragraph 2.3.4 of this Circular;

“GPI Slots Investment Three Effective Date”

“GPI Slots Investment Three Purchase Consideration”

means the amount payable by SISA to GPI for the GPI Slots Investment Three Sale Equity in terms of the GPI Slots Sale Agreement calculated in the manner set out in paragraph 2.3.3.3 of this Circular;

“GPI Slots Investment Three Option”

the option granted by SISA to SUI to purchase the GPI Slots Investment Three Sale Equity;

“GPI Slots Investment Three Sale”

following the exercise by SISA of the Investment Three Option (in the event of SISA exercising such option), the sale in terms of which GPI sells to SISA and SISA purchases from GPI the GPI Slots Investment Three Sale Equity;

“GPI Slots Investment Three Sale Claims”

that portion of all amounts of whatsoever nature owing by GPI Slots to GPI at the time of the GPI Slots Investment Three closing date on shareholder loan account, including interest accrued thereon as will in terms of such closing result in SISA’s claims on such shareholder loan account equating to 70% (seventy percent) of all amounts of whatsoever nature owing by GPI Slots on all shareholder loan accounts, including interest thereon;

“GPI Slots Investment Three Sale Equity”

the GPI Slots Investment Three Sale Shares and the GPI Slots Investment Three Sale Claims, provided that if there are no GPI Slots Investment Three Sale Claims then any reference to “GPI Slots Investment Three Sale Equity” shall be construed as a reference to the GPI Slots Investment Three Sale Shares only;

“GPI Slots Investment Three Sale Shares”

means so many GPI Slots Shares as will, immediately after the GPI Slots Investment Three closing, result in SISA holding 70% (seventy percent) of all the GPI Slots Shares then in issue;

“GPI Slots Investment Two Conditions Precedent”

means the conditions precedent to which the GPI Slots Investment Two Sale is subject to, the detail of which has been set out in paragraph 2.3.4 of this Circular;

“GPI Slots Investment Two Effective Date”

“GPI Slots Investment Two Option”

the option granted by GPI to SISA to purchase the GPI Slots Investment Two Sale Equity calculated in the manner set out in paragraph 2.3.3.2.1 and 2.3.3.2.2 of this Circular;

“GPI Slots Investment Two Purchase Consideration”

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“GPI Slots Investment Two Sale”

following the exercise by SISA of the Investment Two Option (in the event of SISA exercising such Option), in terms of which GPI sells to SISA and SISA purchases from GPI the GPI Slots Investment Two Sale Equity; “GPI Slots Investment

Two Sale Claims”

means that portion of all amounts of whatsoever nature owing by GPI Slots to GPI at the time of the GPI Slots Investment Two closing on shareholder loan account, including interest accrued thereon, as will in terms of such closing result in SISA’s claims on such shareholder loan account equating to 50.1% (fifty point one percent) of all amounts of whatsoever nature owing by GPI Slots on all shareholder loan accounts, including interest thereon;

“GPI Slots Investment Two Sale Equity”

means the GPI Slots Investment Two Sale Shares and the GPI Slots Investment Two Sale Claims, provided that if there are no GPI Slots Investment Two Sale Claims then any reference to “GPI Slots Investment Two Sale Equity” shall be construed as a reference to the GPI Slots Investment Two Sale Shares only;

“GPI Slots Investment Two Sale Shares”

means so many GPI Slots Shares as will, immediately after the GPI Slots Investment Two closing date, result in SISA holding 50.1% (fifty point one percent) of all the GPI Slots Shares then in issue;

“GPI Slots Option” means, as required by the context, either the GPI Slots Investment Two Option or the GPI Slots Investment Three Option granted by GPI to SISA;

“GPI Slots Purchase Consideration”

means the GPI Slots Investment One Purchase Consideration, the GPI Slots Investment Two Purchase Consideration and the GPI Slots Investment Three Purchase Consideration;

“GPI Slots Repurchase Warranties Agreement”

means the agreement entered into between GPI Slots, GPI, SISA and SUI regulating the warranties to be provided by SISA to GPI in relation to GPI Slots Repurchase Sale and SISA‘s liability to GPI thereunder; “GPI Slots Repurchase

Call Option”

means the repurchase call option granted by SISA to GPI in the event that SISA does not exercise the GPI Slots Investment Two Option or the GPI Slots Investment Three Option, as the case may be, the detail of which has been set out in paragraph 2.3.5 below;

“GPI Slots Repurchase Claims”

means all amounts of whatsoever nature owing by GPI Slots to SISA at the time of the GPI Slots Repurchase closing on shareholder loan account, including accrued interest thereon;

“GPI Slots Repurchase Equity”

means the GPI Slots Repurchase Shares and the GPI Slots Repurchase Claims, provided that if there are no GPI Slots Repurchase Claims, then any reference to “GPI Slots Repurchase Equity” shall be construed as a reference to the “GPI Slots Repurchase Shares” only;

“GPI Slots Repurchase Sale”

means following the exercise by GPI of the GPI Slots Repurchase Call Option (in the event of GPI exercising such option), the sale in terms of which SISA will sell to GPI the GPI Slots Repurchase Equity;

“GPI Slots Repurchase Shares”

means all those GPI Slots Shares held by SISA at the time that the GPI Slots Repurchase Call Option is exercised;

“GPI Slots Sale Agreement”

means i) the sale of shares and claims agreement concluded between GPI, GPI Slots and SISA, dated 13 May 2014, regulating inter alia, the GPI Slots Transaction; ii) the GPI Slots Repurchase Warranties Agreement; each as amended from time to time;

“GPI Slots Sale Claims” means either the GPI Slots Investment One Sale Claims or the GPI Slots Investment Two Sale Claims or the GPI Slots Investment Three Sale Claims, or any of such categories of claims as required by the context; “GPI Slots Sale Equity” means the GPI Slots Investment One Sale Equity, the GPI Slots Investment Two Sale Equity and the GPI

Slots Investment Three Sale Equity;

“GPI Slots Sale Shares” means the GPI Slots Investment One Sale Shares, the GPI Slots Investment Two Sale Shares and the GPI Slots Investment Three Sale Shares;

“GPI Slots Signature Date”

means the date of signature of the GPI Slots Sale Agreement, being 13 May 2014;

“GPI Slots Share” means 1 (one) ordinary share in the issued share capital of GPI Slots, having a par value of R1.00 (one Rand) each;

“GPI Slots Subsidiaries” means Slots Central Services, Grand Gaming Western Cape, Grand Gaming KwaZulu-Natal, Grand Gaming Mpumalanga, Grand Gaming Hotslots, Grand Gaming Gauteng and Slots Shared Services, or any one or more of them as required by the context;

“GPI Slots Transaction” means the GPI Slots Investment One Sale, the GPI Slots Investment Two Sale and the GPI Slots Investment Three Sale and also incorporates the GPI Slots Repurchase Call Option and the GPI Slots Forced Sale; “GPI Technology” means Grand Technology Proprietary Limited (registration number 2012/079510/07), a private company duly

incorporated in accordance with the laws of South Africa and a wholly-owned subsidiary of GPI;

“GGR” Gross Gaming Revenue;

“Grand Casino Investments”

Grand Casino Investments Proprietary Limited (registration number 2000/029598/07, a private company duly incorporated in accordance with the laws of South Africa and a wholly-owned subsidiary of GPI;

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“Grand Casino Investments KZN”

Grand Casino Investments KZN Proprietary Limited (registration number 2001/007015/07, a private company duly incorporated in accordance with the laws of South Africa and a wholly-owned subsidiary of GPI; “Grand Gaming

Gauteng”

Grand Gaming Gauteng Proprietary Limited (registration number 2004/023074/07), a limited liability private company duly incorporated in accordance with the laws of South Africa and 69.4% (sixty nine point four percent) of which company’s issued shares are owned by GPI Slots, as beneficial owner and registered holder;

“Grand Gaming Hotslots” Grand Gaming Hotslots Proprietary Limited (and previously Bohwa 1 Gaming Proprietary Limited ) (registration number 2003/015499/07), a limited liability private company duly incorporated in accordance with the laws of South Africa and a wholly-owned subsidiary of GPI Slots, trading as “Hot Slots”;

“Grand Gaming KwaZulu-Natal”

Grand Gaming KwaZulu-Natal Proprietary Limited (registration number 2003/027516/07), a limited liability private company duly incorporated in accordance with the laws of South Africa and a wholly-owned subsidiary of GPI Slots;

“Grand Gaming Mpumalanga”

Grand Gaming Mpumalanga Proprietary Limited (registration number 2004/009776/07), a limited liability private company duly incorporated in accordance with the laws of South Africa and a wholly-owned subsidiary of GPI Slots;

“Grand Gaming Western Cape”

Grand Gaming Western Cape Proprietary Limited (registration number 2003/016213/07), a limited liability private company duly incorporated in accordance with the laws of South Africa and a wholly-owned subsidiary of GPI Slots;

“the Group” or “the GPI Group”

the Company and its Subsidiaries;

“ICT Services Agreement”

means the agreement between GPI Technology, GPI Slots, GPI and SISA regulating, amongst other things, (a) the ongoing provision of information and communications technology services by GPI Technology to the GPI Slots Group Companies after the GPI Slots Investment One closing, (b) the establishment and/or maintenance of a governance committee for the purpose of determining information and communications technology policy and strategy with reference to the GPI Slots Group Companies, and (c) the right of SISA to be represented on such committee with effect from the GPI Slots Investment One closing;

“IFRS” International Financial Reporting Standards as issued by the Board of the International Accounting Standards Committee, from time to time;

“Income Tax Act” Income Tax Act, No. 58 of 1962, as amended;

“Independent Board” means the independent board appointed by the GPI Board to evaluate the SunWest and Worcester Transaction as required in terms of the Companies Regulations and consisting of the following directors Norman Maharaj, Walter Geach, Colin Priem and Nombeko Mlambo;

“Independent Expert” means Mazars Corporate Finance Proprietary Limited (registration number 2003/029561/07) a private company duly incorporated in accordance with the laws of the Republic of South Africa;

“Independent Reporting Accountants to GPI”

Ernst & Young;

“JSE” the exchange, licensed under the Financial Markets Act, operated by the JSE Limited (registration number 2005/022939/06), a public company duly incorporated in accordance with the laws of South Africa; “JSE Listings

Requirements”

the Listings Requirements of the JSE;

“Last Practicable Date” the last practicable date before finalisation of this Circular, being Thursday, 10 July 2014;

“KZN Manco” Afrisun KZN Manco Proprietary Limited (registration number 1998/001247/07, a private company duly incorporated in accordance with the laws of South Africa, beneficially owned by the following parties; • Afrisun KZN Community Development Trust (12.46%);

• Dolcoast Investments SPV Proprietary Limited (29.92%); • National Casino Resort Manco Proprietary Limited (52.25%); and • The Siyakha Development Trust (5.37%);

“LPM” limited pay-out machine; “the Management

and ICT Services Cancellation Agreement”

the agreement to be entered into between GPI Management Services, GPI Technology, GPI, Slots Shared Services, GPI Slots and SISA, in terms of which the Existing Management and ICT Services agreement will be cancelled with effect from the end of June 2014 for a fee of R20 million (inclusive of any Value-Added Tax) payable to GPI;

“Memorandum of Incorporation”

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“Notice of General Meeting”

the notice of the General Meeting forming part of this Circular;

“Ordinary Resolutions” the ordinary resolutions contained in the Notice of General Meeting, which will be tabled at the General Meeting and in terms whereof Shareholders will, subject to the passing thereof, authorise the SunWest and Worcester Transaction, the GPI Slots Transaction and the Sibaya Transaction, as is required in terms of the JSE Listings Requirements and the Companies Act;

“Own-name Registration” the registration of Shareholders who hold Shares that have been dematerialised and are recorded by the CSDP on the sub-register kept by that CSDP in the name of such Shareholder;

“PSG Capital” PSG Capital Proprietary Limited (registration number 2006/015817/07), a limited liability private company duly incorporated in accordance with the laws of South Africa;

“Rand” or “R” South African Rand, the official currency of South Africa;

“Register” the register of Certificated Shareholders maintained by the Transfer Secretaries and the sub-register of Dematerialised Shareholders maintained by the relevant CSDPs;

“Resolutions” the Ordinary Resolutions and the Special Resolution; “SENS” the Stock Exchange News Service of the JSE;

“Sibaya” Afrisun KZN Proprietary Limited (registration number 1996/007228/07), a private company duly incorporated in accordance with the laws of South Africa, operating as Sibaya Casino and Entertainment Kingdom, beneficially owned by the following parties:

• Afrisun KZN Community Development Trust (10.00%); • Afrisun Leisure Investments Proprietary Limited (15.65%); • Dolcoast Investments SPV Proprietary Limited (23.99%); • Foromor Investments No 142 Proprietary Limited (0.02%); • Foromor Investments No 143 Proprietary Limited (0.02%); • Foromor Investments No 146 Proprietary Limited (0.02%); • Foromor Investments No 147 Proprietary Limited (0.02%); • Foromor Investments No 148 Proprietary Limited (0.02%); • Foromor Investments No 1410 Proprietary Limited (0.02%); • Foromor Investments No 1411 Proprietary Limited (0.02%); • Foromor Investments No 1414 Proprietary Limited (0.02%); • Sun International (South Africa) Limited (47.66%); • The Siyakha Development Trust (2.52%); and • The Sun International Employee Share Trust (0.01%); “the Sibaya Sale

Agreement”

means the agreement concluded between SISA, Grand Casino Investments KZN, Grand Casino Investments and GPI, regulating inter alia, the Sibaya Transaction;

“the Sibaya Transaction” the proposed acquisition by SUI, through its wholly-owned subsidiary SISA, from Grand Casino Investments KZN, of a 24.9% interest in Dolcoast, which effectively translates to an additional 5.6% of Sibaya and 7.5% of KZN Manco for the Sibaya Transaction Purchase Consideration;

“the Sibaya Transaction Conditions Precedent”

the conditions precedent to which the Sibaya Transaction is subject to, the details of which have been set out in paragraph 2.2.3 of the Circular;

“the Sibaya Transaction Purchase Consideration”

the purchase consideration payable in terms of the Sibaya Transaction, being an amount of R130 million, further details of which have been set out in paragraph 2.2 of the Circular;

“SISA” Sun International (South Africa) Limited (registration number 1977/071333/06), a public company duly incorporated in accordance with the laws of South Africa and a wholly-owned subsidiary of SUI;

“Slots Shared Services” Slots Shared Services Proprietary Limited (registration number 2008/011456/07), a limited liability private company duly incorporated in accordance with the laws of South Africa and a wholly-owned subsidiary of GPI Slots;

“South Africa” the Republic of South Africa;

“Special Resolution” means the special resolution which will be tabled at the General Meeting and in terms whereof Shareholders will, subject to the passing thereof, authorise the disposals by the Company and Grand Casino Investments of their entire interest in SunWest and Worcester contemplated by the SunWest and Worcester Transaction, as is required in terms of section 112 read with section 115 of the Companies Act;

“Strate” Strate Limited (registration number 1998/022242/06), a public company duly incorporated in accordance with the laws of South Africa, a central securities depository licensed in terms of the Financial Markets Act and responsible for the electronic clearing and settlement system provided to the JSE;

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“Subsidiary” a subsidiary as defined in the Companies Act;

“SUI” Sun International Limited (registration number 1967/007528/07, a public company duly incorporated in accordance with the laws of South Africa and listed on the JSE;

“SunWest” SunWest Proprietary Limited (registration number: 1994/003869/07, a private company duly incorporated in accordance with the laws of South Africa, beneficially owned by the following parties:

• Afrisun Leisure Proprietary Limited (14.87%); • Grand Casino Investments Proprietary Limited (17.10%); • Grand Parade Investments Limited (8.00%); • SI Employee Share Trust (3.30%); • Sun International (South Africa) Limited (55.87%); • SISA Investments No. 140 Proprietary Limited (0.21%); • SISA Investments No. 141 Proprietary Limited (0.21%); • SISA Investments No. 145 Proprietary Limited (0.21%); and • SISA Investments No. 149 Proprietary Limited (0.21%); “the SunWest and

Worcester Sale Agreements”

means i) a transaction implementation agreement between inter alia SUI, Tsogo, GPI, Grand Casino Investments and SISA; ii) a share repurchase agreement between GPI, Grand Casino Investments and Sunwest; and iii) a share repurchase agreement between GPI and Worcester Casino. For clarity, only agreements to which GPI or Grand Casino Investments are a party have been listed but there are additional agreements related to the SunWest and Worcester Transaction to which GPI or Grand Casino Investments are not parties;

“the SunWest and Worcester Transaction”

the proposed disposal to Tsogo by SUI (through its subsidiary companies) of a 14.9% interest in SunWest and Worcester for an aggregate cash consideration of R635 million, the proposed subscription by Tsogo for a new class A ordinary shares in each of SunWest and Worcester for an aggregate subscription price of R1.55 billion and a proposed share repurchase to be undertaken by each of SunWest and Worcester such that the entire interest held by GPI and Grand Casino Investments, being 25.1% in each of SunWest and Worcester, will be repurchased for an aggregate cash consideration of R1.55 billion;

“the SunWest and Worcester Transaction Conditions Precedent”

the conditions precedent to which the SunWest and Worcester Transaction is subject to, the details of which have been set out in paragraph 2.1.3 of the Circular;

“the SunWest and Worcester Transaction Purchase Consideration”

the purchase consideration of R1.55 billion payable by SunWest and Worcester to GPI;

“Takeover Panel” the Takeover Regulation Panel established in terms of section 196 of the Companies Act; and

“Transactions” Collectively, the Sibaya Transaction, the SunWest and Worcester Transaction and the GPI Slots Transaction; “Transfer Secretaries” or

“Computershare”

Computershare Investor Services Proprietary Limited (registration number 2004/003647/07), a private company duly incorporated in accordance with the laws of South Africa.

“Tsogo” Tsogo Sun Holdings Limited (registration number 1989/002108/06, a public company duly incorporated in accordance with the laws of South Africa;

“Worcester Casino” Worcester Casino Proprietary Limited (registration number 1998/016221/07, a private company duly incorporated in accordance with the laws of South Africa, beneficially owned by the following parties: • Afrisun Leisure Proprietary Limited (10.05%);

• Grand Parade Investments Limited (25.10%); • SI Employee Share Trust (3.50%); and

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GRAND PARADE INVESTMENTS LIMITED (Incorporated in the Republic of South Africa)

(Registration number 1997/003548/06) Share code: GPL ISIN: ZAE000119814

(“GPI” or “the Company”)

Directors

Hassen Adams (Executive Chairman) Anthony William Bedford*

Alan Edward Keet (Chief Executive Officer) Norman Victor Maharaj (Lead Independent Director)*# Sukena Petersen (Financial Director) Nombeko Mlambo*#

Alexander Abercrombie (Executive Director, Gaming Operations) Colin Michael Priem*# Walter Geach*# * Non-executive

#_Independent

CIRCULAR TO GPI SHAREHOLDERS

1. INTRODUCTION

1.1. GPI Shareholders were advised on Tuesday, 13 May 2014 on SENS and in the South African press that GPI had, subject to GPI Shareholder approval and the Sibaya Transaction Conditions Precedent, the SunWest and Worcester Transaction Conditions Precedent and the GPI Slots Transaction Conditions Precedent, concluded the Agreements regulating, inter alia, the Sibaya Transaction, the SunWest and Worcester Transaction and the GPI Slots Transaction and that a circular would be issued to Shareholders in due course containing further details of the Transactions.

1.2. Shareholders should note that the Transactions are independent divisible transactions and not inter-conditional. 1.3. In terms of the SunWest and Worcester Transaction it is proposed that SUI (through its subsidiary companies) will

dispose of a 14,9% interest in SunWest and Worcester for an aggregate cash consideration of R635 million, Tsogo will subscribe for a new class of A ordinary shares in each of SunWest and Worcester for an aggregate subscription price of R1.55 billion and a specific share repurchase will be undertaken by each of SunWest and Worcester such that the entire interest held by GPI and Grand Casino Investments, being 25.1% in each of SunWest and Worcester, will be repurchased for an aggregate cash consideration of R1.55 billion.

1.4. In terms of the Sibaya Transaction it is proposed that SISA will acquire from Grand Casino Investments KZN, a 24.9% interest in Dolcoast, which effectively translates to an additional 5.6% of Sibaya and 7.5% of KZN Manco in exchange for the Sibaya Transaction Purchase Consideration.

1.5. In terms of the GPI Slots Transaction it is proposed that GPI will dispose of up to an aggregate shareholding of 70% in GPI Slots to SISA in three separate tranches. The GPI Slots Transaction incorporates the GPI Slots Repurchase Call Option and the GPI Slots Forced Sale.

1.2. Purpose of this Circular

The purpose of this Circular is to provide Shareholders with the requisite information in accordance with the JSE Listings Requirements and the Companies Act in regard to the Transactions and to enable Shareholders to make an informed decision as to how they will vote in respect of the Resolutions set out in the Notice of the General Meeting enclosed with this Circular.

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2. DETAILS OF THE TRANSACTIONS

2.1. THE SUNWEST AND WORCESTER TRANSACTION

2.1.1. Overview

GPI currently holds 25.1% in each of SunWest and Worcester. In terms of the SunWest and Worcester Transaction it is proposed that SUI (through its subsidiary companies) will dispose of a 14,9% interest in SunWest and Worcester for an aggregate cash consideration of R635 million. Tsogo will subscribe for a new class of A ordinary shares in each of SunWest and Worcester for an aggregate subscription price of R1.55 billion and a specific share repurchase will be undertaken by each of SunWest and Worcester such that the entire interest held by GPI and Grand Casino Investments, being 25.1% in each of SunWest and Worcester, will be repurchased for an aggregate cash consideration of R1.55 billion.

2.1.2. Rationale for the SunWest and Worcester Transaction

The SunWest and Worcester transaction will realise significant value for GPI Shareholders and represents an excellent return on investment. GPI has been invested in SunWest and Worcester Casino as SUI’s initial BEE partner for 16 years, but believes that the timing and terms of the SunWest and Worcester Transaction support GPI’s strategy to pursue new investment opportunities. Importantly, SUI and Tsogo have the necessary financial capability, requisite BEE credentials, regulatory and industry knowledge to implement the SunWest and Worcester Transaction at a valuation that meets GPI’s expectations.

GPI has identified a number of advantages to the SunWest and Worcester Transaction, which include the following:

• compelling valuation and returns;

• GPI currently owns minority stakes in both SunWest and Worcester Casino and the SunWest and Worcester Transaction will provide GPI with the financial resources to control its own future;

• the anticipated proceeds place GPI in a strong cash position with the flexibility to invest in its existing growth assets and to pursue new investment opportunities that have been identified; and

• GPI will be well-placed to compete for new deals given its balance sheet, BEE ownership credentials and ability to provide strategic input.

2.1.3. The SunWest and Worcester Transaction Conditions Precedent

The SunWest and Worcester Transaction is conditional upon the fulfilment or waiver, as the case may be of, inter alia, the following outstanding conditions precedent:

2.1.3.1. shareholders of GPI approving the terms of the SunWest and Worcester Transaction in the General Meeting and the requisite resolutions of the shareholders of GPI not being set aside by the court in accordance with section 115(7) of the Act;

2.1.3.2. the shareholders of SUI approving the placing of shares under the control of the directors of SUI to give effect to an undertaking in terms of which, in the event that an offeror acquires 35% of the issued shares of SUI, SUI may be required to issue shares in SUI to Tsogo in exchange for some or all of Tsogo’s shares in SunWest and Worcester;

2.1.3.3. the release of GPI and Grand Casino Investments’ shares in SunWest and Worcester from the security interests held over them;

2.1.3.4. the shareholders and directors of SunWest and Worcester passing the necessary resolutions for implementation of the SunWest and Worcester Transaction and any applicable notices of amendment to the SunWest and Worcester memorandum of incorporation required to facilitate the creation of the A shares being filed in the manner prescribed in the Act;

2.1.3.5. independent experts appointed by each of SunWest and Worcester in terms of section 114(2) of the Act delivering to the respective boards and the shareholders of those companies the report referred to in section 114(3) of the Act in respect of the specific repurchase of shares under the SunWest and Worcester Transaction;

2.1.3.6. the Western Cape Gambling and Racing Board providing their consent to the SunWest and Worcester Transaction;

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2.1.3.7. to the extent required, obtaining all such approvals for the SunWest and Worcester Transaction that may be required by the TRP and/or any other applicable regulatory authorities; and 2.1.3.8. the SunWest and Worcester Transaction being approved by the Competition Authorities in terms

of the Competition Act.

2.1.4. The effective date of the SunWest and Worcester Transaction

The SunWest and Worcester Transaction has an effective date that is three business days after the fulfilment or waiver, as the case may be, of the SunWest and Worcester Transaction Conditions Precedent as set out in paragraph 2.1.3 above. The Sunwest and Worcester Transaction Conditions Precedent are subject to a May 2015 long-stop date, although it is anticipated that they will be fulfilled or waived before this date. 2.1.5. Other significant terms of the SunWest and Worcester Sale Agreements

2.1.5.1. The SunWest and Worcester Sale Agreements contain warranties and indemnities that are customary for agreements of this nature.

2.1.5.2. The disposals by the Company and Grand Casino Investments as contemplated by the SunWest and Worcester Transaction are indivisibly linked to the implementation of the remaining elements of the Sunwest and Worcester Transaction specifically those related to the sale by SUI of a portion of its shares in Sunwest and Worcester to Tsogo and subscription by Tsogo to a new class of shares in Sunwest and Worcester.

2.1.6. Categorisation of the SunWest and Worcester Transaction

2.1.6.1. In terms of the Listings Requirements of the JSE, as the value of the SunWest and Worcester Transaction, in so far it relates to GPI, exceeds 25% of GPI’s market capitalisation, the SunWest and Worcester Transaction is regarded as a category 1 transaction as contemplated in section 9 of the Listings Requirements of the JSE.

2.1.6.2. In terms of section 112 of the Companies Act, the SunWest and Worcester Transaction is regarded as a disposal of the greater part of the assets or undertaking of GPI and therefore is an affected transaction and that will require approval by Shareholders by way of a special resolution. Shareholders are referred to the fair and reasonable opinion from the Independent Expert set out in Annexure 1 in relation to the SunWest and Worcester Transaction.

Shareholders’ appraisal rights

Shareholders who wish to exercise their rights in terms of section 164 of the Companies Act, in relation to the SunWest and Worcester Transaction are referred to Annexure 18 of this Circular. Shareholders who wish to exercise their rights in terms hereof are required, before the Special Resolution to approve the SunWest and Worcester Transaction is voted on at the General Meeting, to give notice to the Company in writing objecting to the Special Resolution and to vote against the Special Resolution at the General Meeting.

2.1.7. Financial information of SunWest and Worcester 2.1.7.1. SunWest:

The audited annual financial statements of SunWest for the financial years ended 30 June 2013, 30 June 2012 and 30 June 2011 as extracted from the financial information of SUI have been included in Annexure 8.

2.1.7.2. Worcester:

The audited annual financial statements of Worcester for the financial years ended 30 June 2013, 30 June 2012 and 30 June 2011 as extracted from the financial information of SUI have been included in Annexure 9.

2.1.8. Special arrangements, undertakings or agreements

There are no arrangements, undertakings or agreements between GPI and SUI and persons acting in concert with either of them in relation to the SunWest and Worcester Transaction.

There are further no agreements, arrangements or understanding between SUI or any person acting in concert with it and any of the Directors of GPI, or any persons who were Directors of GPI in the 12 months preceding

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the SunWest and Worcester Sale Agreement or with GPI Shareholders or persons who were GPI Shareholders in the 12 months preceding the SunWest and Worcester Sale Agreement, which has any connection with or dependence upon the SunWest and Worcester Transaction.

2.1.9. Independent Board’s responsibility statement, opinion and recommendation regarding the SunWest and Worcester Transaction

The Independent Board, consisting of Norman Maharaj, Walter Geach, Colin Priem and Nombeko Mlambo, accepts responsibility for the information included in this Circular, confirms that to the best of its knowledge and belief, the information contained in this Circular is true, and confirm that the Circular does not omit anything likely which could affect the importance of the information contained in this Circular.

The Independent Board has considered the terms and conditions of the SunWest and Worcester Transaction, and, after taking into account the report of the Independent Expert, is of the opinion that the SunWest and Worcester Transaction is fair to GPI Shareholders. Accordingly, and with due consideration to the prospects of the GPI business and all material information relevant to the SunWest and Worcester Transaction, the Independent Board recommends to shareholders to vote in favour of the SunWest and Worcester Transaction. The Directors who are eligible to vote, intend voting in favour of the relevant Resolutions.

2.2. THE SIBAYA TRANSACTION 2.2.1. Overview

GPI, through Grand Casino Investments KZN, currently owns 24.9% in Dolcoast. In terms of the Sibaya Transaction it is proposed that SISA will acquire from Grand Casino Investments KZN, a 24.9% interest in Dolcoast, which effectively translates to an additional 5.6% of Sibaya and 7.5% of KZN Manco in exchange for the Sibaya Transaction Purchase Consideration.

2.2.2. Rationale for the Sibaya Transaction

The Sibaya Transaction is an opportunity for GPI to exit a minority investment at a compelling valuation. Furthermore, it is GPI’s strategy to acquire meaningful stakes in businesses to which it can add strategic value, and the investment in Dolcoast (and indirectly Sibaya Casino) no longer satisfies this criteria.

2.2.3. The Sibaya Transaction Conditions Precedent

The Sibaya Transaction is conditional upon the fulfilment or waiver, as the case may be of, inter alia, the following outstanding conditions precedent:

2.2.3.1. SISA delivering a written notice confirming that it is satisfied with the outcome of the due diligence investigation on Dolcoast and its wholly-owned subsidiary;

2.2.3.2. the requisite approval from the KwaZulu-Natal Gaming and Betting Board for the Sibaya Transaction (including any revisions to the memorandum of incorporation and shareholders agreement for Dolcoast);

2.2.3.3. to the extent necessary the Sibaya Transaction being approved by the Competition Authorities in terms of the Competition Act;

2.2.3.4. the remaining shareholders of Dolcoast waiving any rights (including but not limited to pre-emptive rights) in relation to SISA’s acquisition of the shares in Dolcoast;

2.2.3.5. the shareholders of Grand Casino Investments KZN having passed a special resolution in terms of section 112(2) of the Act, approving the terms of the Sibaya Transaction;

2.2.3.6. to the extent required, all required regulatory approvals having been obtained;

2.2.3.7. SISA does not, prior to the fulfilment of the other conditions precedent, give notice that SISA is aware of any material adverse change in the condition of Dolcoast or its wholly-owned subsidiary; and

2.2.3.8. a SUI fairness opinion having been obtained from an independent expert indicating that the terms of the Sibaya Transaction are fair as contemplated in paragraph 2.2.3 of the Listings Requirements.

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2.2.4. Effective date of the Sibaya Transaction

The effective date of the Sibaya Transaction is the 5th business day after the fulfilment or waiver, as the case may be, of the Sibaya Conditions Precedent as set out, inter alia, in paragraph 2.2.3 above. The Sibaya Conditions Precedent are anticipated to be fulfilled or waived by November 2014.

2.2.5. Other significant terms of the Sibaya Agreement

The Sibaya Agreement contains warranties and indemnities that are customary for agreements of this nature. 2.2.6. Categorisation of the Sibaya Transaction

In terms of paragraph 9.13 of the Listings Requirements of the JSE, the JSE requires that transactions which are entered into by a company with the same party or associates thereof, be aggregated and where the aggregation results in a category 1 transaction as contemplated in terms of the Listings Requirements, shareholder approval is required. Given that the Sibaya Transaction and the GPI Slots Transaction have been entered into between the same parties, the JSE requires that the transactions be aggregated.

Accordingly, with the rule of aggregation being applied as contemplated in terms of the Listings Requirements, the Sibaya Transaction is regarded as a category 1 transaction and requires approval by Shareholders in general meeting by way of an ordinary resolution.

Although the Sibaya Transaction is also deemed to be a disposal of all or greater part of the assets or undertaking of Grand Casino Investments KZN, the Sibaya Transaction does not constitute an “affected transaction” as defined in terms of the Companies Act.

2.2.7. Additional information relating to the Sibaya Transaction Financial information of Sibaya

The audited annual financial statements of Dolcoast for the financial years ended 30 June 2013, 30 June 2012 and 30 June 2011 as extracted from the financial information of GPI have been included in Annexure 10. 2.2.8. GPI has received notice from Dolcoast shareholders that they wish to pursue the acquisition of GPI’s interest in

Dolcoast and as such will neither allow SISA to commence the due diligence nor waive their pre-emptive rights until such time as this acquisition has been fully explored. Accordingly, GPI, Dolcoast and its shareholders are in the process of negotiating the manner in which such acquisition may be implemented, which may be by way of a share buy-back. To the extent that GPI, Dolcoast and its shareholders reach an agreement in relation to the acquisition of GPI’s interest by Dolcoast shareholders or by Dolcoast, by way of a buy-back, then the conditions precedent set out in paragraphs 2.2.3.1 and 2.2.3.4 will not be fulfilled and the Sibaya Transaction will fall away and be of no further force or effect. To the extent that GPI, Dolcoast and its shareholders do not reach an agreement in relation to the acquisition of GPI’s interest by Dolcoast shareholders or by Dolcoast, by way of a buy-back, then Dolcoast shareholders will consider allowing SISA to commence the due diligence and waive their pre-emptive rights.

2.3. THE GPI SLOTS TRANSACTION 2.3.1. Overview

GPI currently holds 100% of GPI Slots. In terms of the GPI Slots Transaction it is proposed that GPI will dispose up to an aggregate shareholding of 70% in GPI Slots to SISA in three separate tranches. The GPI Slots Transaction incorporates the GPI Slots Repurchase Call Option and the GPI Slots Forced Sale.

2.3.2. Rationale for the GPI Slots Transaction

The GPI Slots Transaction is an opportunity for GPI to maximise the long-term growth potential of GPI Slots and to realise significant value for shareholders today. GPI has achieved considerable and rapid growth in GPI Slots but recognises that the market is evolving and that future growth will be best achieved through partnership.

GPI will retain a meaningful, non-operational stake (a minimum of 30%) in GPI Slots and will therefore benefit from the new growth opportunities afforded by partnering with SUI, which brings a substantial local and international platform to the business. GPI has identified a number of strategic advantages and opportunities to the GPI Slots Transaction, which are consistent with GPI’s strategy as an investment holding company: •

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• the GPI Slots Transaction will ensure that GPI’s operational involvement in GPI Slots is appropriate to the stage of growth of the asset. The costs of holding the investment will therefore be minimised;

• GPI Slots will be well-positioned to leverage SUI’s expertise and infrastructure. In particular, GPI Slots will be positioned to expand operations internationally;

• the GPI Slots Transaction is expected to accelerate the growth of GPI’s gaming and betting machine manufacturing business, Grand Merkur. GPI has ambitions to establish this business as South Africa’s first gaming machine manufacturer, supplying both local and international markets; and

• an opportunity to lead the market in the development of new alternative gaming assets through collaboration with SUI in GPI Slots.

2.3.3. The Transactions Steps Comprising the GPI Slots Transaction The GPI Slots Transaction is to be effected as follows:

2.3.3.1. The GPI Slots Investment One Sale

2.3.3.1.1. SISA will acquire an initial 25.1% interest in GPI Slots for the GPI Slots Investment One Purchase Consideration, which represents the purchase consideration for both the GPI Slots Investment One Sale Shares and the GPI Slots Investment One Sale Claims. It is anticipated that the GPI Slots Investment One Purchase Consideration will amount to R268.2 million.

2.3.3.1.2. The portion of the GPI Slots Investment One Purchase Consideration pertaining to the GPI Slots Investment One Sale Shares is subject to adjustment if there is a variance in the equity value of GPI Slots of 3% or greater, as determined based on the actual consolidated EBITDA of the GPI Slots Group of Companies, achieved for the FY2014 period, taking into account the net debt of the GPI Slots Group of Companies as at 30 June 2014.

2.3.3.1.3. The GPI Slots Investment One Sale Claims will have a purchase consideration equal to the face value thereof on the implementation date of the GPI Slots Investment One Sale, being the later of the 5th business day following the day (a) on which all the GPI Slots Conditions Precedent are fulfilled, or (b) on which the financial results of GPI Slots for the F2014 period are finalised.

2.3.3.1.4. The effective date of the GPI Slots Investment One Sale is 1 July 2014. 2.3.3.2. The GPI Slots Investment Two Sale

2.3.3.2.1. In terms of the GPI Slots Investment Two Sale, GPI has granted SISA an option to acquire additional GPI Slots Shares and an additional share of the shareholder loan account for cash such that SISA’s total shareholding and shareholder loan account in GPI Slots post exercise of the option will be 50.1%, being the GPI Slots Investment Two Option. It is anticipated that the GPI Slots Investment Two Purchase Consideration will amount to R303.4 million.

2.3.3.2.2. The GPI Slots Investment Two Option is exercisable within 30 days of the financial results of GPI Slots for the FY2015 period being finalised. If the GPI Slots Investment Two Option is exercised, the effective date of the GPI Slots Investment Two Sale will be 1 July 2015.

2.3.3.2.3. Should the GPI Slots Investment One Sale not be completed for any reason other than breach by GPI of the GPI Slots Sale Agreement, the GPI Slots Investment Two Option cannot be exercised.

2.3.3.2.4. The GPI Slots Investment Two Purchase Consideration will, in so far as the GPI Slots Investment Two Sale Shares are concerned, be calculated on an equity value of GPI Slots determined by applying a 7.5 times multiple to the actual consolidated EBITDA achieved by the GPI Slots Group Companies for the FY2015 period, and thereafter deducting net debt.

2.3.3.2.5. The GPI Slots Investment Two Sale Claims will have a purchase consideration equal to the face value of the relevant share of the loan account on the implementation date of the GPI Slots Investment Two Sale.

THIS CIRCULAR IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION.