Supplementary Announcement to the Announcement Dated 4 June 2019 and Renewal of Cautionary Announcement. AYO TECHNOLOGY SOLUTIONS LIMITED (Incorporated in the Republic of South Africa) Registration number: 1996/014461/06 JSE share code: AYO ISIN: ZAE000252441 ("AYO" or "the Company") SUPPLEMENTARY ANNOUNCEMENT TO THE ANNOUNCEMENT DATED 4 JUNE 2019 AND RENEWAL OF CAUTIONARY ANNOUNCEMENT. Shareholders are referred to the announcement (“Announcement”) released on SENS on Tuesday, 4 June 2019 regarding findings of an internal management review pursuant to the Agreed Upon Procedures (“AUP”) performed by BDO Cape Incorporated (“BDO”). This supplementary announcement is being released by the Company to provide shareholders with additional information in order to clarify certain aspects of the Announcement: 1. Pursuant to the AUP performed by BDO, management conducted its own internal review based on the findings contained in BDO’s Factual Findings Report. 2. Following management’s internal review, the Company was of the view that it was in possession of price sensitive information and accordingly, released the Cautionary Announcement to demonstrate the effect of the misstatements identified during management’s review on the statement of comprehensive income, statement of financial position, statement of changes in equity and statement of cash flows contained in the published 28 February 2018 interim results. Despite including the words ‘revised’, the Announcement is not a restatement of AYO’s interim results for the six months ended 28 February 2018 (“2018 Interim Results”) in accordance with IAS 34 and IAS 8. 3. The Announcement dealt with the material adjustments identified by management in its internal review and was not intended to deal with all matters identified in BDO’s Factual Findings Report, 4. The Company has engaged its external auditors, BDO, to commence with the audit of the 2018 Interim Results. On completion of the audit, the Company will release restated audited 2018 Interim Results and provide all the necessary disclosure as required by IFRS, the Companies Act, 71 of 2008 and the JSE Listings Requirements (including full details of the errors in the application of IFRS). 5. Although there are misstatements in the 2018 Interim Results, it is important to note that the board of directors believe that these had no material effect on the audited results for the year ended 31 August 2018. 6. BDO have confirmed that, based upon the information obtained during the AUP engagement they do not believe that their unqualified audit opinion of those annual financial statements will change. 7. The Company refers shareholders to the following sections in the Announcement which contained errors and /or were incomplete: 7.1 In the table headed “Condensed Statement of Changes in Equity”: The third column titled as “% change 28 February 2018” should be titled “Revised Unaudited at 28 February 2018”. 7.2 In the table headed “Summarised Consolidated Statement of Cash Flows”: The third column titled “% change 28 February 2018” should be titled “Revised Unaudited at 28 February 2018”. 7.3 The adjustment of R51 084 000 in the table headed “Summarised Consolidated Statement of Cash Flows”: The adjustment is a reclassification from “cash flows from investing activities” to “cash flows from financing activities”. The adjustment relates to the repayment of a loan from a shareholder incorrectly recorded as investing activities. 7.4 Note 1. Cost of sales: The Company wishes to point out that the original adjustment of R18 million was not based on any factual underlying information. An estimate was made at the time based upon an analytical review which revealed that the gross profit margin for a subsidiary was lower than anticipated. Pursuant to the process referred to in 1 above, management was able to verify R11,3 million of invoices against the journal entry of R18 million. This results in the understatement of cost of sales by R6,7 million. 7.5 Note 2. Other operating expenses: The Company points out that the adjustment of R10 million to the commission expense was based on an analytical review performed, which revealed that the average commission paid at a subsidiary had risen by 5% compared to historical levels. When, pursuant to the process referred to in point 1 above, the employment contracts were subsequently inspected, it was noted that as the commission structure was embedded in the existing employment contracts it should have been accounted for and not reversed. Furthermore, there was an error in the analytical review and that the commission was not out of line with the past. 7.6 Note 4. Listing cost expenses: The Company also points out that the capitalisation of the costs was an error, and not the incorrect application of judgement. RENEWAL OF CAUTIONARY ANNOUNCEMENT Shareholders are referred to the cautionary announcement released on 4 June 2019 advising shareholders to exercise caution when dealing in the securities of the Company until the audit of the 28 February 2018 interim financial results is completed and published on SENS. Shareholders are advised that the above audit is still not completed and hence are advised to continue exercising caution when dealing in their shares in the Company until the audit is complete. Cape Town 12 June 2019 Joint Sponsor Vunani Corporate Finance Joint Sponsor Merchantec Capital Date: 12/06/2019 05:15:00 Produced by the JSE SENS Department. 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