Memorandum of understanding with Prime Kapital update MAS Real Estate Inc. Registered in the British Virgin Islands Registration number 1750199 SEDOL (EMTF): B96VLJ5 SEDOL (JSE): B96TSD2 JSE share code: MSP ISIN: VGG5884M1041 LEI code: 213800T1TZPGQ7HS4Q13 ("MAS" or "the Company") MEMORANDUM OF UNDERSTANDING WITH PRIME KAPITAL UPDATE On 4 June 2019, MAS announced that the board of directors (the "Board") had undertaken an in-depth review of the Company’s strategy. The impressive performance and growth of the Central and Eastern Europe ("CEE") portfolio has led the Board to consider that the continued expansion into CEE, combined with full divestment from Western Europe, is the most appropriate strategy for the group. The Board also recognised the importance of being able to manage the income-generating investment properties directly without reliance on third parties. In this context, MAS announced that it had entered into a Non-Binding Memorandum of Understanding with Prime Kapital Holdings Limited ("PK") to acquire a call option to purchase PK's effective 20% interest in the investment joint venture, together with the PK management platform, exercisable between 30 June 2022 and 30 June 2024, at an option premium of EUR 2 million. MAS wishes to advise shareholders that the negotiations with PK have now been terminated without the conclusion of a binding call option agreement. MAS remains committed to its strategy of continued expansion into CEE and will look to invest directly as it grows its asset management capability in the region. MAS will further continue to benefit from the relationship with PK through the exclusive development joint venture, as well as the existing portfolio that is managed in the investment joint venture. MAS will release its Annual Results on Thursday, 5 September 2019 and will host a conference call at 14:00 (SA time). The pre-registration link for the conference call is available at: http://www.diamondpass.net/2586126. The executive team will also host Investor Presentations in both Cape Town and Johannesburg on 11 and 13 September 2019 respectively, to present an overview of the Company’s strategy and results. MAS is listed on the Main Board of the JSE and is listed and admitted to trading on the Euro MTF market of the Luxembourg Stock Exchange. 28 August 2019 For further information please contact: Sarah King, Acting Company Secretary, MAS Real Estate Inc. +44 1624 625000 Java Capital, JSE Sponsor +27 11 722 3050 Harneys Luxembourg, Luxembourg Stock Exchange Listing Agent +352 278 671 02 Investor Relations, Lizelle du Toit +27 82 465 1244 Date: 28/08/2019 11:00:00 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.