PNG - Pinnacle Point - Statement in relation to th17 Mar 2009
PNG
PNG                                                                             
PNG - Pinnacle Point - Statement in relation to the listing of Pinnacle         
on The Nigerian Stock Exchange and profit forecasts                             
PINNACLE POINT GROUP LIMITED                                                    
(Formerly Acc-Ross Holdings Limited)                                            
(Incorporated in the Republic of South Africa)                                  
(Registration number 2000/000059/06)                                            
Share code: PNG     ISIN: ZAE000127122                                          
("Pinnacle Point" or "the company")                                             
STATEMENT IN RELATION TO THE LISTING OF PINNACLE ON THE NIGERIAN STOCK          
EXCHANGE AND PROFIT FORECASTS                                                   
CHAIRMAN`S STATEMENT                                                            
As chairman of Pinnacle Point Group Limited ("Pinnacle Point") I am pleased     
and humbled to announce that a leading leisure and lifestyle property           
development group, Pinnacle Point is to list on the Nigerian Stock Exchange on  
Wednesday 18 March 2009. The listing aims to give Nigerian investors an         
opportunity to participate in Pinnacle Point`s prospects in all the countries   
in which it operates, i.e. South Africa, Nigeria, Seychelles and Mozambique.    
The Nigerian listing will result in Pinnacle Point being dual listed on the     
JSE Limited and Nigerian Stock Exchange ("NSE").                                
Nigeria remains one of the most exciting countries in Africa for business.      
Over the past five years Nigeria`s GDP has grown by an average of 7%. The non-  
oil sector has been the main driver of the economy, contributing on average     
75% of national output and growing faster than the oil sector.                  
The rationale for the dual listing includes granting Nigerian investors the     
opportunity to participate in the exciting property development opportunities   
in Nigeria, especially in view of the shortage of available prime residential,  
leisure and commercial space, particularly in Lagos.                            
In Nigeria, the head offices of some of the largest international companies     
are based in Lagos, as well as the country`s top financial, oil and telecoms    
companies. Lagos is Nigeria`s commercial nerve centre and over the past 20      
years the city has expanded into the country`s busiest banking and commercial   
hub. It also offers the most sought-after areas to live in.                     
INCORPORATION AND HISTORY OF THE COMPANY                                        
Pinnacle Point was incorporated as Le-Sel Investments Limited in 2000 and       
changed its name to Acc-Ross Holdings Limited in 2005, pursuant to the          
acquisition of two large developments through the acquisition of Accretio       
Property Holdings (Proprietary) Limited and Gardner Ross Holdings Limited.      
The company listed on the Alternative Exchange of the JSE in February 2006.     
In October 2008, the Pinnacle Point group of companies was acquired, resulting  
in an even larger group through a reverse listing, and the name of the company  
was changed to Pinnacle Point.                                                  
The holding company for the Pinnacle Point group of companies was incorporated  
on 12 December 2006 under the name Rowmoor Investments 680 (Proprietary)        
Limited and changed its name to Pinnacle Point Investments (Proprietary)        
Limited ("Pinnacle Point Investments") on the same date. Pinnacle Point         
Investments was incorporated by IC Stratford, who originally owned 100% of the  
shares in the company as a special purpose vehicle to facilitate the sale of    
26% of Property Promotions and Management (Pty) Ltd ("PPM") interest in the     
Pinnacle Point group of companies to the BEE Consortium headed up by Mr Polelo  
Lazarus Zim.                                                                    
The Pinnacle Point group of companies` history dates back to early 2000 when a  
group of like-minded entrepreneurs agreed to join forces to create a property   
development group focusing on the leisure market. Based in Cape Town, the       
Pinnacle Point has since grown into one of the premier developers of golf,      
lifestyle and residential estates in Africa.                                    
The site that started it all for Pinnacle Point is the world-class Pinnacle     
Point Beach and Golf Resort just outside Mossel Bay, located in the heart of    
what has been dubbed the "Costa del Golf". The unique 400-hectare property      
with four kilometres of dramatic cliffs and beaches was developed into a        
residential golf estate adjacent to the Garden Route Casino.  This development  
received a number of awards including "top 10 new golf courses in the world"    
and "best real estate development in South Africa".                             
Largely due to the success of Pinnacle Point Beach and Golf Resort, Pinnacle    
Point has been able to capitalise on a number of other opportunities. There     
are currently twelve developments in Pinnacle Point, four of which are          
complete or nearing completion in terms of their construction. Construction on  
a further three projects will commence during the 2009 financial year or        
thereafter depending on demand and financing. During the past three years       
sales in excess of R2 billion have been generated.Pinnacle Point Group Limited  
is listed on the Alternative Exchange of the JSE.                               
DESCRIPTION OF THE BUSINESS                                                     
Pinnacle Point is a property development company that specialises in obtaining  
rights to develop vacant land into prime residential and resort developments    
throughout Africa and the Indian Ocean Islands. Key features of the             
developments are family living, lifestyle, sports, golf, security and leisure.  
Hotel, commercial and casino developments are a spin off on the larger          
developments.                                                                   
Pinnacle Point`s operations is made up of four separate divisions as follows:   
The leisure resort developments division: which will undertake the development  
of all leisure resort properties from conceptual design through to final        
completion.                                                                     
The residential developments division: which will undertake the development of  
all residential properties from conceptual design through to final completion.  
The retirement developments division: which will undertake the development of   
all residential properties from conceptual design through to final completion   
but with a retirement focus. Currently this function is outsourced to a joint   
venture partner of the Pinnacle Point Group;                                    
The commerical and retail property division: which will specialise in the       
development, management and/or sale of the commercial properties in the         
Group`s portfolio. This function is currently outsourced to a joint venture     
partner of the Pinnacle Point Group.                                            
Other activities in the Group include:                                          
Sales and Marketing which covers.                                               
The sale and marketing of its own developments.                                 
The retention of the rights to the sale and marketing of any resale on all of   
its own developments.                                                           
Golf Course ownership and management.                                           
Pinnacle Point Group carefully selects projects based on feasibility criteria   
that include:                                                                   
-    strategic fit with it`s business model;                                    
-    good profits to be realised after finance costs and taxation;              
-    internal rate of return of at least 30%;                                   
-    whether annuity income and second phase income potential exists;           
-    economic fundamentals such as supply and demand, as well as the ability    
    to deliver the project;                                                     
-    capital and debt funding requirements;                                     
-    geographic location, environmental issues and the potential for            
development rights.                                                         
Pinnacle Point mitigates development risk by:                                   
-    negotiating favourable payment terms on land acquired from land owners     
    and linking payments to the obtaining of approvals and sales performance;   
ensuring that all necessary approvals are in place prior to committing to   
    development expenditure;                                                    
-    conducting a detailed assessment of the prevailing relevant market         
    conditions and product demand and pricing parameters, pror to launching     
the sales effort;                                                           
-    ensuring that the necessary level of qualifying pre-development property   
    sales are in place to justify the level of borrowing required and equity    
    committed to develop the property in question.                              
FUTURE PLANS                                                                    
Pinnacle Point has built up a very credible brand in SA and has set the         
platform to do the same internationally in Lagos and Seychelles.                
Pinnacle Point sees West Africa as a major growth point.  The successful        
delivery of its first development in Lagos will no doubt bring further          
significant projects its way for many years to come. This equally applies to    
the Seychelles Development.  The Seychelles Government is intent on             
capitalising on the natural beauty of the islands and building significant      
tourism hot spots to increase revenue from the tourism sector.                  
In South Africa Pinnacle Point intends to capitalise on its strong asset base   
when the market turns.  Furthermore the Soccer World Cup and the strong demand  
coming out of the emerging middle class will drive property prices beyond the   
international norm over the next 5 years.  Pinnacle Point is well positioned    
to take advantage of that growth.                                               
The investment by one of Pinnacle Point`s major shareholders has also opened    
up new investment opportunities for the Group. They include:                    
A hospitality Joint Venture to develop Hotels and Conference facilities on      
PPG`s resort developments, commencing with Pinnacle Point.                      
Investing in a well known international boutique hotel operator who will act    
as operator for the hotels developed.                                           
To partner them in their global expansion plan in providing the technical       
knowhow and expertise for the developments they undertake.                      
Finally there are numerous development proposals coming Pinnacle Point`s way    
due to its brand recognition.  However timing is not right to pursue these      
proposals at present, but this augers well for the future.                      
SHAREHOLDING STRUCTURE                                                          
The share capital of Pinnacle Point Group is set out below:                     
Authorised                                                                      
10 000 000 000 (ten billion) ordinary shares of R0.0001 each.                   
Issued                                                                          
4 579 782 814 ordinary shares of R0.0001 each     457 978                       
Share premium                                     2 434 500 592.                
The major shareholders in the group are as follows;                             
Name                                      No. of Shares %                       
Pinnacle Point Holdings (Pty) Ltd         1,432,332,668 31.14%                  
ABSA Bank Limited                         1,259,673,700 27.39%                  
New Port Finance Company (Pty) Ltd        556,980,333   12.11%                  
Goldman Assets Management Limited         461,538,462   10.03%                  
Rakeen Developments PJSC (FSC)            400,000,000   8.70%                   
Historical and Forecast information on Pinnacle                                 
Historical information                                                          
A summary of the historical financial information for AccRoss Holdings Limited  
and its subsidiaries for the years endedFebruary 2006 to 2008 is set out        
below. The annual financial statements were prepared in the manner required by  
the Companies Act and in accordance with IFRS and were reported on without      
qualification by Deloitte.                                                      
CONSOLIDATED BALANCE SHEET AT                                                   
29 FEBRUARY 2008                                                                

                        Notes  2008/02/29      2007/02/28     2006/02/28        
                               R               R              R                 
Assets                                                                          

Non-current assets                                                              
Property, plant and      4      699,889         994,588        1,219,802        
equipment                                                                       
Inventory / Freehold     5      144,388,948     94,536,260     196,643,322      
land and stands                                                                 
Goodwill                 6      37,605,111      157,772,084    108,634,094      
Loans and receivables    8      69,463,721      5,239,443      4,698,202        
at amortised cost                                                               
Deferred tax assets      20     12,677,725      9,946,689      9,777,650        
Total non-current               264,835,394     268,489,064    320,973,070      
assets                                                                          

Current assets                                                                  
Inventory / Freehold     5      220,145,149     368,321,418    31,936,089       
land and stands                                                                 
Loans and receivables    8      35,085,281      16,378,170     9,651,385        
at amortised cost                                                               
Trade and other          9      20,325,218      35,004,251     46,393,805       
receivables                                                                     
Cash and cash            30     82,215,604      1,638,036      11,191,531       
equivalents                                                                     
                               357,771,252     421,341,875    99,172,810        
Non-current assets held  21     -               25             -                
for sale                                                                        
Total current assets            357,771,252     421,341,900    99,172,810       
Total assets                    622,606,646     689,830,964    426,285,905      
                                                                                
Equity and Liabilities                                                          
                                                                                
Capital and reserves                                                            
Issued capital, share    10     437,773,968     280,600,194    167,043,256      
premium and share-based                                                         
payment reserve                                                                 
Accumulated (loss) /            (143,864,607)   (8,583,287)    9,278,274        
profit                                                                          
Equity attributable to          293,909,361     272,016,907    176,321,530      
equity holders of the                                                           
parent                                                                          
Minority interest               1,299,864       1,980,657      1,123,493        
Total equity                    295,209,225     273,997,564    177,445,023      
Non-current liabilities                                                         
Borrowings               11     106,767,568     205,482,440    133,005,835      
Finance lease            12     317,079         454,537        597,039          
obligation                                                                      
Deferred tax             20     22,868,017      41,149,512     19,815,967       
liabilities                                                                     
Total non-current               129,952,664     247,086,489    153,418,841      
liabilities                                                                     
Current liabilities                                                             
Trade and other          13     33,188,738      45,417,992     34,738,733       
payables                                                                        
Borrowings               11     110,036,309     74,396,014     28,914,204       
Finance lease            12     158,102         137,504        109,261          
obligation                                                                      
Current tax payable      20     33,669,216      16,860,125     13,127,473       
Provisions               14     20,392,392      31,935,276     18,632,370       
Total current                   197,444,757     168,746,911    95,522,041       
liabilities                                                                     
Total liabilities               327,397,421     415,833,400    248,940,882      
Total equity and                622,606,646     689,830,964    426,385,905      
liabilities                                                                     
                                                                                
                      Notes  Year ended       Year ended     Year ended         
28/02/08         28/02/07       28/02/06           
                             R                R              R                  
                                                                                
Revenue                15     215,984,119      154,890,863    189,027,031       
Cost of sales          16     (193,319,900)    (140,178,401)  (157,894,533)     
Gross profit                  22,664,219       14,712,462     31,132,498        
Other gains and        17     2,576,509        30,616,354     16,765,541        
losses                                                                          
Investment revenue     18     10,136,192       806,364        351,752           
Marketing and sales           (11,620,768)     (10,705,793)   (5,000,964)       
expenses                                                                        
Occupancy expenses            (261,055)        (571,036)      (390,804)         
Other expenses                (152,699,420)    (37,395,305)   (23,964,250)      
Finance costs          19     (6,585,904)      (13,845,456)   (9,762,229)       
Loss before tax        22     (135,790,227)    (16,382,410)   9,131,544         
Income tax expense     20     (171,886)        (734,375)      626,673           
Loss for the year             (135,962,113)    (17,116,785)   9,758,217         
Attributableto:                                                                 
Ordinary shareholders         (135,281,320)    (17,861,561)   9,278,274         
of the parent                                                                   
Minority interest             (680,793)        744,776        479,943           
Loss per share                                                                  
Basic loss (cents per  23     (10.61)          (1.76)         1,50              
share)                                                                          
Diluted loss (cents    23     (10.61)          (1.76)         1,24              
per share)                                                                      
                     Share capital  Share       Retained                        
                                    premium     earnings                        
R              R           R                               
                                                                                
Balance at 1 March    87,793         166,334,621 (3,468,453)                    
2006                                                                            
Effect of changes     400            620,442     12,746,727                     
in accounting                                                                   
policies and                                                                    
correction of                                                                   
errors                                                                          
Restated balance at   88,193         166,955,063 9,278,274                      
1 March 2006                                                                    
(Loss) Profit for     -              -           (17,861,561)                   
the year                                                                        
Issue of ordinary     16,550         98,824,452  -                              
shares in                                                                       
settlement of                                                                   
liabilities                                                                     
Issue of ordinary     7,500          18,704,317  -                              
shares for cash                                                                 
Share issue costs     -              (3,995,881) -                              
Acquired from         -              -           -                              
minorities                                                                      
Balance at 28         112,243        280,487,951 (8,583,287)                    
February 2007                                                                   
(Loss) Profit for     -              -           (135,281,320)                  
the year                                                                        
Issue of ordinary     9,424          29,001,766  -                              
shares in                                                                       
settlement of                                                                   
liabilities                                                                     
Allocation of         3,449          22,068,245  -                              
shares to staff and                                                             
directors for                                                                   
services                                                                        
Issue of ordinary     18,200         106,231,800 -                              
shares for cash                                                                 
Share issue costs     -              (159,110)   -                              
Acquired from         -              -           -                              
minorities                                                                      
Balance at 28         143,316        437,630,652 (143,864,607)                  
February 2008                                                                   
                 Attributable   Minority       Total                            
                 to equity      interest                                        
                 holders of                                                     
the parent                                                     
                 R              R              R                                
                                                                                
Balance at 1      162,953,961    867,831        163,821,792                     
March 2006                                                                      
Effect of         13,367,569     255,662        13,623,231                      
changes in                                                                      
accounting                                                                      
policies and                                                                    
correction of                                                                   
errors                                                                          
Restated balance  176,321,530    1,123,493      177,445,023                     
at 1 March 2006                                                                 
(Loss) Profit     (17,861,561)   744,776        (17,116,785)                    
for the year                                                                    
Issue of          98,841,002     -              98,841,002                      
ordinary shares                                                                 
in settlement of                                                                
liabilities                                                                     
Issue of          18,711,817     -              18,711,817                      
ordinary shares                                                                 
for cash                                                                        
Share issue       (3,995,881)    -              (3,995,881)                     
costs                                                                           
Acquired from     -              112,388        112,388                         
minorities                                                                      
Balance at 28     272,016,907    1,980,657      273,997,564                     
February 2007                                                                   
(Loss) Profit     (135,281,320)  (680,793)      (135,962,113)                   
for the year                                                                    
Issue of          29,011,190     -              29,011,190                      
ordinary shares                                                                 
in settlement of                                                                
liabilities                                                                     
Allocation of     22,071,694     -              22,071,694                      
shares to staff                                                                 
and directors                                                                   
for services                                                                    
Issue of          106,250,000    -              106,250,000                     
ordinary shares                                                                 
for cash                                                                        
Share issue       (159,110)      -              (159,110)                       
costs                                                                           
Acquired from     -              -              -                               
minorities                                                                      
Balance at 28     293,909,361    1,299,864      295,209,225                     
February 2008                                                                   
Forecast information on Pinnacle and 2008 results                               
In addition, the actual results in accordance with IFRS for the new Pinnacle    
group, a reviewed profit estimate for the year ended 28 February 2009 and       
reveiwed forecast financial information for Pinnacle for the years ending 28    
February 2010 and 2011 is set out below:                                        
FORECAST      FORECAST     ESTIMATE    ACTUAL            
                       Reviewed      Reviewed     Reviewed                      
                       2011          2010         2009        2008              
                       R`000         R`000        R`000       R`000             

Revenue                 3,175,193     737,079      98,836      57,814           
Cost of sales           (1,697,579)   (447,585)    (64,319)    (41,866)         
Gross profit            1,477,614     289,494      34,517      15,948           
Other gains and losses  123,400       13,000       40,118      37,155           
Marketing and sales     (268,726)     (70,379)     (8,365)     (2,610)          
expenses                                                                        
Other operating         (71,467)      (52,205)     (43,315)    (92,602)         
expenses                                                                        
Finance costs           -             -            (4,445)     (14,858)         
Profit (loss) before    1,260,821     179,910      18,510      (56,967)         
tax                                                                             
Income tax (expense) /  (207,148)     (32,727)     (2,865)     6,785            
income                                                                          
Profit (loss) for the   1,053,673     147,183      15,645      (50,182)         
period                                                                          

Attributable to:                                                                
Minority interest       517,024       66,808       762         -                
Ordinary shareholders   536,649       80,375       14,883      (50,182)         
of the parent                                                                   
                                                                                
Earnings per share:                                                             
Basic earnings/(loss)   11.67         1.75         0.40        (3.93)           
per share (cents)                                                               
Diluted earnings (loss) 11.67         1.75         0.40        (3.93)           
per share (cents)                                                               
                                                                                
Weighted average shares 4,599,378     4,599,378    3,704,805   1,275,558        
in issue (`000)                                                                 
Weighted average shares 4,599,378     4,599,378    3,704,805   1,275,558        
in issue for dilution                                                           
(`000)                                                                          
In terms of IFRS3 - Business Combinations the acquisition by the former Acc-    
Ross Holdings Limited group of various companies of the former Pinnacle Point   
group on 1 November 2008 has been accounted for as a reverse acquisition. As a  
result Pinnacle Point Investments and its subsidiaries ("PPI Group") are        
treated as the acquiring entity. Accordingly, the historical results presented  
for the year ended 29 February 2008 are those of PPI Group.                     
The profit estimate and profit forecasts have been reviewed by Mazars Moores    
Rowland.  The review report is available for inspection at the company`s        
registered office.                                                              
The basis and key assumptions on which the profit forecasts for the years       
ending 28 February 2010 and 28 February 2011 have been prepared are set out     
below.                                                                          
The following major bases and assumptions, which are outside the control of     
the directors, have been included in the profit forecasts:                      
1.   Interest rates are expected to decrease during the 2009 year which should  
improve sales.                                                              
2.   Trading conditions are expected to improve from the second half of the     
    2009 year onwards.                                                          
3.   There will be no material change to the business of the Pinnacle Point     
Group or the manner in which it conducts its business.                      
4.   There will be continuity in the Pinnacle Point Group`s management and      
    trading policies.                                                           
These have been successful and are expected to remain so in the future.         
The following major bases and assumptions, which are within the control of the  
directors, have been included in the profit forecast:                           
5.   Forecast revenue for the year ending 28 February 2009, 28 February 2010    
    and 28 February 2011, is based on an estimate of revenue from contracts     
that are currently in the sales pipeline as well as the directors of the    
    Group`s best estimates based on historical experience and future            
    expectations of property trends and prices.                                 
6.   Gross profit percentages are development specific and have been forecast   
per development based on the Group`s best estimates based on historical     
    experience and future expectations of property trends and prices.           
7.   Operating costs have been forecast taking into account factors such as     
    historical trends, inflation, assumed growth of the business and            
improvements in infrastructure.                                             
8.   It was considered that no impairment of goodwill in the profit estimate    
    and forecasts in the years ending 28 February 2009, 28 February 2010 and    
    28 February 2011 was necessary. The allocation of the purchase price in     
terms of IFRS 3: Business Combinations will be allocated in the next        
    couple of months and may result in the amount allocated to goodwill being   
    split between goodwill and intangible assets if any are identified. This    
    will result in an increase in intangible assets which will be amortized     
over their estimated useful lives.                                          
9.   Commission has been calculated at 5% on all sales.                         
10.  Taxation has been provided for at 28% for local developments and at 15%    
    for the Nigerian development.                                               
11.  Provision has been made for the minority share of profit in respect of     
    the 26% of the shares in Wedgewood that have been ceded to Nedbank          
    Limited to be held on behalf of Sangena Property Investments                
    (Proprietary) Limited until the development debt in respect of Wedgewood    
has a been expunged.                                                        
12.  Lagos Keys development is to come on line in 2009, bringing revenue into   
    the forecast from January 2010.                                             
13.  The Group`s effective interest in the Lagos Keys development will be       
45.9%, although Pinnacle controls the development.  Provision in the        
    forecast has therefore been made for the minority share of profits of an    
    effective 54.1% in this development.                                        
14.  In line with the group`s accounting policies, project finance costs are    
is capitalised into the cost of the development, which cost is then         
    expensed through cost of sales.                                             
15.  Anticipated results from the two primary segments are set out below.       
                   2011                   2010                                  
NIGERIA    SOUTH       NIGERIA    SOUTH                      
                              AFRICA                 AFRICA                     
                   R`000      R`000       R`000      R`000                      
   Revenue         3 035 233  139 960     451 183    285 896                    

   Cost of Sales   1 608 739  88 840      239 578    208 006                    
                                                                                
   Gross Profit    1 426 494  51 120      211 605    77 889                     

   Other Income               123 400                13 000                     
                                                                                
   Operating       304 331    35 861      75 847     46 738                     
Expenses                                                                     
      Overheads    61 513     9 954       14 277     21 477                     
      Marketing    91 057     18 909      13 529     13 729                     
      Costs                                                                     
Commissions  151 762    6 998       10 482     11 532                     
                                                                                
   Operating       1 122 163  138 659     135 758    44 151                     
   Profit                                                                       

   Finance Cost                                                                 
                                                                                
   Profit before   1 122 163  138 659     135 758    44 151                     
Taxation                                                                     
                                                                                
   Taxation        168 324    38 824      20 364     12 363                     
                                                                                
Profit after    953 839    99 835      115 394    31 789                     
   Taxation                                                                     
                                                                                
   Minority        516 027    997         62 428     4 380                      
interest                                                                     
                                                                                
   Attributable    437 812    98 838      52 966     27 409                     
   Earnings                                                                     

PROFILES OF DIRECTORS                                                           
The name, age, qualification, nationality, occupation and business address of   
each of the directors of Pinnacle Point Group are below:                        
Business                            
Name        Age   Qualification   National-  Address            Function        
                                 ity                                            
Polelo      48    BCom (Hons),    South      135 West Street,   Non executive   
Lazarus Zim       Mcom, Dcom      African    Sandton            Chairman        
                                                                                
Ivor        62    B Com           South      7 Bishops Court    Non executive   
Charles           CTA             African    Drive, Bishops     Deputy          
Stratford         CA(SA)                     Court              Chairman        
                                                                                
Wilfred     53    B Com           South      1st floor, MH      Chief           
Robinson          B Acc           African    House, Capricorn   Executive       
CA(SA                      Road,              Officer          
                                            Paulshof Ext 40                     
Steven      46    B Com           South      1st Floor,         Chief           
Kruger            B Com (Hons)    African    Travers House,     Operating       
CA(SA)                     BoundaryTerraces,  Officer          
                                            1 Mariendahl                        
                                            Lane,                               
                                            Newlands                            
Khehla      53    B Com,          South      Wananchi Leisure,  Independent     
Samuel            Management      African    58 8th Avenue,     Non executive   
Mtembu                                       Highlands North    director        
Ragavan     44    Masters         South      135 West Street,   Non-executive   
Moonsamy          degree:         African    Sandton            Director        
                 Political                                                      
                 Science (USA)                                                  
Bright      47    Masters         South      90 Ascot Ride,     Non executive   
Igbinedion        degree:         African    Saddlebrooke       Director        
                 Political                  Estate, Kyalami                     
                 Science (USA)                                                  
Adegboyega  44    D.Phil, LL.M.,  Nigerian   2a Osborne Road,   (Alternate)     
Oluwarotimi       LL.B(Hons.)                Ikoyi, Lagos,      Non executive   
Austen-                                      Nigeria            Director        
Peters                                                                          
Yvonne      43    National        South      5 Squires Walk     Independent     
Thato             diploma in      African    Paulshof           Non executive   
(Thabiso)         accounting,                                   Director        
Moerane           National                                                      
                 higher diploma                                                 
in                                                             
                 taxation, MBA                                                  
Andrew Vusi 48    Honours         South      The Oval Office    Non executive   
Fasedemi          degrees in      African    Park, Willowmore   Director        
Economics,                 Building, cnr                       
                 Communications             Sloane &                            
                 and Politics               Meadowbrooke                        
                                            Street, Bryanston                   
Curriculum Vitae                                                                
Polelo Lazarus Zim                                                              
Mr Polelo Lazarus Zim is the Executive Chairman of Afripalm Resources, and a    
director of various other entities in the Afripalm group of companies. He is    
also Chairman of Kumba Iron Ore Limited, Mvelaphanda Resources Limited and      
Northam Platinum Limited and a director of, inter alia, Sanlam Limited and      
Trans Hex Group Limited. Mr Zim is the former Managing Director of MTN          
International, where he led all MTN operations outside South Africa including   
the establishment of MTN in Nigeria.                                            
From 1994 to 2001 he held several positions in the pay television group, MIH,   
where he ended up as Chief Executive of MIH SA, responsible for M-Net,          
SuperSport, Multichoice SA (DSTV) and Oracle Air Time Sales. Mr Zim is          
currently an entrepreneur based in South Africa, from where he pursues and      
develops business opportunities primarily in resources, property development    
and ICT. He also provides strategic advice to companies on doing business in    
Africa. He was voted the African Business Leader of the Year in 2005.           
Ivor Charles Stratford                                                          
Mr Stratford is a qualified Chartered Accountant and ex-partner of Deloitte.    
For the past fifteen years he has been involved in property development,        
mainly in the tourism industry throughout South Africa. He was responsible for  
the design and development of all five casinos in the Gold Reef Casino Group.   
In addition, he has developed a number of hotels including the Blue Lagoon      
Beach Hotel in East London. He also pioneered time share selling in South       
Africa. He has guided the strategy of the Pinnacle Point Group since its        
inception.                                                                      
Wilfred Robinson                                                                
Mr Robinson was appointed Chief Executive Officer of Acc-Ross on 22 June 2006.  
He is a Chartered Accountant who started and developed his career in the        
financial services sector. He has a number of finance and management related    
qualifications and gained experience in a number of disciplines during his      
banking career. He worked in branch banking for Barclay`s Bank and for the      
bank`s training centre as a Trainer, Manager Strategic Planning, Manager        
Strategic Marketing, Senior Manager Group Finance as Barclay`s Bank`s           
commercial financial manager, Deputy Treasurer Allied Bank Limited, General     
Manager Group Finance of ABSA Bank Limited and finally Chief Executive Officer  
of ABSA Private Bank. Wilf joined Barclays Bank in South Africa in 1973 and     
retired in 2006 from ABSA Bank Limited.                                         
Steven Kruger                                                                   
After completing his articles with KPMG and qualifying as a Chartered           
Accountant, Mr Kruger decided to pursue a career in commerce with Irvin &       
Johnson Limited, a company then listed on the JSE and specialising in the Food  
Processing and Distribution Industry. He was with the Irvin & Johnson Group     
for fourteen years and during his tenure was promoted to the position of Group  
Financial Director. He then joined the Pep Limited Group, an Apparel Retailer   
and Manufacturing Group as Director of Finance and Information Technology.      
Whilst at the Pep Limited Group, Mr Kruger also filled the post of Managing     
Director of Pep Clothing, one of the largest clothing manufacturers in South    
Africa, for a period of one year. As part of Mr Kruger`s undergraduate studies  
he successfully completed a course in Real Estate Economics and has also        
completed a Retail Strategic Planning Course at Babson College in Boston,       
United States of America. Mr Kruger joined the Pinnacle Point Group effective   
1 December 2005 as Financial Director and was promoted to the position of       
Chief Operating Officer in October 2007.                                        
Khehla Samuel Mtembu                                                            
Mr Mtembu was appointed non-executive director of the Issuer in October 2005.   
He holds a BCom degree from the University of South Africa. In July 2003, he    
was appointed as Group Executive Director of Old Mutual South Africa in         
Gauteng and in July 2004 was appointed Head of Public Affairs. He resigned      
from Old Mutual during 2007 to pursue his own business interests in the         
leisure sector and has recently been appointed as Group Executive Director of   
Tourvest Limited.                                                               
Ragavan Moonsamy                                                                
Mr Moonsamy is currently managing director of Unipalm Investment Holdings       
(Proprietary) Limited, a broad-based group with a 15% shareholding in Afripalm  
Resources (Proprietary) Limited. He was a founding member of Kascara Financial  
Investment Brokers in 1987. Since 1994, he has played a leading role in         
various empowerment initiatives. He serves on a number of boards such as        
Growthpoint Properties Limited, Draft FCB Advertising, Afripalm Resources       
(Proprietary) Limited and Sahara Computers (Proprietary) Limited.               
Bright Igbinedion                                                               
Mr. Igbinedion controls ten companies operating primarily in the construction,  
motor, engineering and trading sectors. He is a previous director of Okada Air  
Nigeria and is a current member of the governing council of the Igbinedion      
University, Nigeria. In addition, he is the Chairman of Coral Oil and Gas, one  
of Nigeria`s leading petroleum sector companies. Mr. Igbinedion is a highly     
successful businessman based in Nigeria with interests in South Africa. He is   
the joint venture partner of Lagos keys development and has been, and will      
continue to be, instrumental in the formulation and rollout of the Issuer`s     
business activities in Nigeria and the rest of West Africa.                     
Adegboyega Oluwarotimi Austen-Peters                                            
Dr Austen-Peters obtained an LL.B (Hons) from the London School of Economics    
and Political Science, University of London in June 1985. In 1986 he was        
called to the Nigerian Bar Council for Legal Education, Lagos - Nigeria. In     
June 1987 he obtained a LL.M. from Magdalene College, University of Cambridge   
and in September 1998 he obtained a D.Phil (doctorate in law: custody of        
financial assets) from Pembroke College, University of Oxford. On 16 January    
2004 he was sworn in as a Notary Public of the Federal Republic of Nigeria.     
From September 1987 to September 1991 he worked as an Officer at the Centre     
for Human Rights - United Nations Office at Geneva. From November 1991 to       
September 1994 he worked as a Senior Associate for Irving & Bonnar. From March  
to September 1999 he worked as a Legal Consultant for African Development       
Bank. From November 1999 to the present date, he has been the Principal         
Partner at Austen Peters & Co where he provides advice to Nigeria`s National    
Pension Commission, Securities and Exchange Commission, Bureau of Public        
Enterprises, banks, fund managers and stock broking firms and various general   
commercial enterprises.                                                         
Yvonne Thato Moerane                                                            
Ms Moerane is currently the Managing Director of Khulumanjalo Group             
(Proprietary) Limited. She has a National Diploma in Accounting from the        
University of Johannesburg (previously Technikon Witwatersrand), a National     
Higher Diploma in Taxation from the University of South Africa (previously      
Technikon Southern Africa) and a MBA from Duke University (USA). She is a DBA   
(Doctorate in Business Administration) Candidate with Instituto de Empresa      
Business School in Madrid, Spain. In 1988, she joined Randfontein Estates Gold  
Mining Company as a Supervisor in the accounts department. In 1993 she          
transferred to the JCI Limited accounts department where she worked as an       
Accounting Assistant until 1995. In 1995, she started her own information       
technology company called Ideal Data CC which later merged with five other      
companies and became Kwetliso Holdings (Proprietary) Limited. Between 1999 and  
2001 she worked as a financial and taxation consultant.                         
Between 2001 and 2006 she was the Managing Director of Black Information        
Technology Empowerment Company Limited ("Blitec") which is an investment        
holding company that was started by the Black Information Technology Forum in   
1997. Thabiso has served on the boards of Sentech and, more recently, as chair  
of Data Pro Group Limited (now Vox Telecom) and is a non-executive director of  
Securedata Limited.                                                             
Andrew Vusi Fasedemi                                                            
Mr Fasedemi graduated from the University of Lagos with a triple Honours        
degree in Economics, Communications and Politics and his working career spans   
South Africa and Nigeria. He worked for Cadbury Nigeria as a Brand Manager and  
Senior Brand Manager for their largest brand and he worked for LenOil, the      
largest independent oil company in Nigeria, as Global Corporate Affairs         
Manager. In 1995, he joined the second largest public relations company in      
South Africa, Sussens Mann as Accounts Director and later that year started a   
marketing consultancy, within the Group, Sussens Mann Fasedemi, of which he     
was the Managing Director. In 1997, he took over the public relations           
consultancy within the Leo Burnett Group as Chief Executive Officer and within  
one year was appointed Managing Director of the largest company within the      
Group, Sonnenberg Murphy Leo Burnett. A year later, Mr Fasedemi took over as    
Group Chief Executive and was subsequently given additional responsibility as   
Regional Managing Director for seven sub-Saharan African countries. He started  
the Business Marketing Consultancy - Wisdom Keys Group in 2001 and three years  
later he started Wisdom Keys Investment Holdings. Mr Fasedemi is currently the  
Executive Chairman of Wisdom Keys and drives new business development and       
acquisition. He has been Deputy Chairman of the Advertising Association of      
South Africa, President of the Direct Marketing Association and Director of a   
number of other companies and has advised corporates and organisations such as  
NEPAD, COMESA, MultiChoice, South African Post Office, Coca Cola, McDonald`s,   
Department of Transport, M-Net, Central Energy Fund, Nampak, MARS Africa, SA    
Tourism, Gauteng Tourism amongst many others.                                   
SENIOR MANAGEMENT OF PINNACLE POINT GROUP                                       
The name, age, qualification, nationality, occupation and business address of   
each of the senior management of Pinnacle Point Group are set out below:        
                                         Business                               
Name        Age    Qualificat  National   Address            Function           
                  ion         ity                                               
David Paul  55     National    South      1st Floor,         Sales &            
McGregor           Diploma in  African    Travers House,     Marketing          
Public                 Boundary Terraces  Executive           
                  Administra             1 Mariendahl                           
                  tion 1972              Road,                                  
                                         Newlands, Cape                         
Town                                   
Lance       63     Qualified   British    1st Floor,         Developmen         
Kinnear            as an                  Travers House,     ts                 
                  architect              Boundary Terraces  Executive           
in 1965 in             1 Mariendahl                           
                  the UK                 Road,                                  
                                         Newlands, Cape                         
                                         Town                                   
Madeleine   35     B Rek       South      1st Floor,         Financial          
du Plessis         B Rek       African    Travers House,     Executive          
                  (Hons)                 Boundary Terraces                      
                  CA(SA)                 1 Mariendahl                           
Road,                                  
                                         Newlands, Cape                         
                                         Town                                   
Erika       33     B Rek       South      1st Floor, MH      Financial          
Rossouw            B Rek       African    House, Capricorn   Executive          
                  (Hons)                 Road,                                  
                  CA(SA)                 Paulshof Ext 40                        
                  CIMA                                                          
Wayne       37     A class     South      1st Floor,         Golf               
Krambeck           PGA         African    Travers House,     Executive          
                  profession             Boundary Terraces                      
                  al                     1 Mariendahl                           
Road,                                  
                                         Newlands, Cape                         
                                         Town                                   
Curriculum Vitae                                                                
David Paul McGregor                                                             
Mr McGregor spent twelve years as the head of personnel recruitment of a large  
corporation. He ran his own business for a further thirty years which offered   
services in respect of the promotion and organisation of all major motor        
racing events in South Africa (Formula One Grand Prix, Motor GP, Paris - Le     
Cap, Grand Prix Masters). He was involved in the handling of sponsorship sales  
and marketing and promotion of the events. Mr McGregor was responsible for      
sponsorship procurement for the 1997 World Cup of Golf in South Africa and the  
SA Open Golf Tournament from 1998 to 2002. He has recently successfully         
negotiated the hosting rights for the Pilsner Urquell Shootout in 2007 through  
2010 at the Pinnacle Point Golf course.                                         
Lance Kinnear                                                                   
Mr Kinnear started his career with Selsick Wolpe and Partners Architects in     
1966, the name of which later changed to Selsick Kinnear Mitchell (now SKM      
Architects). In 1988, he started his own practice called Lance Kinnear          
Architects in Gauteng through which he was responsible for the design and       
creation of Sun City, under the direction of Sol Kerzner, and the majority of   
the Southern Sun Hotels such as Elangeni and Maharani. Furthermore, under the   
direction of Ivor Stratford he was responsible for the design and creation of   
the Gold Reef Casino and Hotels. Mr Kinnear joined the Pinnacle Point Group as  
a director of Developments (Architect and Developer) in May 2005.               
Madeleine du Plessis                                                            
Ms du Plessis is a qualified Chartered Accountant and served her articles with  
Ernst & Young (Cape Town) from January 1996 to October 2000 during which        
period she became a Corporate Audit Manager. In November 2000, Ms du Plessis    
was transferred to Ernst & Young in London where she acted as a Financial       
Services Executive for the period November 2000 to March 2002 and as a          
Corporate Finance Executive in the Strategic Financial Services Department      
from April 2002 to March 2003. Thereafter she returned to Cape Town and joined  
the Pinnacle Point Group in 2003 as Financial Executive.                        
Erika Rossouw                                                                   
After completing her articles with Arthur Andersen and qualifying as a          
Chartered Accountant, Ms Rossouw joined the University of Pretoria as a         
lecturer. She then joined PriceWaterhouseCoopers as a Corporate Finance         
Manager based in Papua New Guinea for just less than three years. Upon          
returning to South Africa she joined ABSA Bank Limited as a Corporate Asset     
Finance Consultant. She then moved into commerce and joined Marsh Inc as the    
Financial Controller for Africa. Ms Rossouw joined Acc-Ross in January 2008 as  
Head of Finance and Operations. Ms Rossouw is also qualified as an Associate    
Chartered Management Accountant with the Chartered Institute of Management      
Accountants in London.                                                          
Wayne Krambeck                                                                  
Mr Krambeck has had various management roles at some of the most prestigious    
Golf courses and estates in South Africa and internationally. They include      
eight years at Fancourt, five years with a Malaysian Group, running Pecanwood   
Golf & Country Club for three years and thereafter their Mines Golf Club in     
Malaysia for two years and two years at Steenberg Golf Estate. Other            
leadership roles include four years on the Board of Directors of the            
Professional Golfers Association of South Africa and serving as Chairman of     
the Professional Golfers Association of Gauteng.                                
GROUP STRUCTURE                                                                 
The group structure of the Pinnacle Point Group can be found on the company`s   
website at www.pinnaclepointgroup.co.za                                         
SALIENT DATES AND TIMES                                                         
The company intends listing on the Nigerian Stock Exchange from commencement    
of business on Tuesday, 17 March 2009.  These dates and times are subject to    
amendment. Any such amendment will be released on SENS and in the Nigerian      
press.                                                                          
Mr Polelo Lazarus Zim                                                           
Chairman                                                                        
16 March 2009                                                                   
Designated       Financial Advisor           Stockbroker to the NSE             
Advisor:                                     Listing                            
                Goldman Asset Management    Capital Assets                      
Arcay Moela      Limited                                                        
Sponsors                                                                        
(Proprietary)                                                                   
Limited                                                                         
Reporting                                    Solicitors to the NSE              
accountants                                  Listing                            
Mazars Moores                                Austen-Peters & Co                 
Rowland                                      Barristers, Solicitors and         
Notary Public                       
                                                                                
Date: 17/03/2009 07:30:01 Produced by the JSE SENS Department.                  
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