LESAKA TECHNOLOGIES INC

Under

the

supervision

and

with

the

participation

of

our

management,

our

executive

chairman

and

our

group

chief

financial officer, we conducted

an evaluation of our disclosure controls and procedures, as such term is defined

under Rule 13a-15(e)

promulgated under the Securities Exchange Act of 1934, as amended, as of

We previously identified and disclosed in Part II, Item 9A of our Annual Report on Form 10-K for the

year ended June 30, 2025,

material weaknesses in our internal control over financial reporting related

to:

(1)

Our

lending

process,

specifically

risk

assessment

and

monitoring

to

changes

in

systems

and

over

and

from

service

design

and

implementation

of

technology

general

(“ITGCs”),

over

service

resulting

in

ineffective

process

level,

a

lack

of

validation

of

the

completeness

and

accuracy

of

information used within the process;

(2)

Our payroll process, specifically

insufficient risk assessment

and monitoring activities relating

to changes over the

transfer

of

ownership

to

the

centralized

payroll

over

from

service

insufficient design

and implementation

of ITGCs, controls

over service organizations

resulting in ineffective

process level

including a lack of validation of the completeness and accuracy of information used

within this process;

(3)

Our annual

goodwill impairment

process,

specifically

related

to insufficient

risk assessments,

and

ineffective

design and

implementation of controls resulting in ineffective process level

controls;

(4)

Our business combination

process, specifically insufficient

risk assessments, and

ineffective design

and implementation of

over the

purchase price

allocation of

the Adumo

and Recharger

acquisitions including

controls over

information resulting in ineffective process level controls including a lack of validation of the completeness and accuracy

of

information used;

(5)

Our

revenue

recognition

process

to

prepaid

airtime

sold

and

processing

fees

to

certain

agreements,

specifically insufficient risk assessment and ineffective design and implementation of

controls related to our judgement over

revenue recognized

either as principal

versus as agent

resulting in

ineffective controls

and a material

misstatement as well

as the requirement to restate revenue, cost of goods sold, IT processing, servicing and support and related disclosures for all

quarters as described below;

(6)

Our journal

entry process, specifically

relating to

insufficient risk

assessments, and

ineffective design

and implementation

of controls including insufficient controls over information resulting in ineffective process level controls including a lack of

validation of the completeness

of the journal entry

population and a lack of

validation of the completeness

and accuracy of

information used within the process; and

(7)

An insufficient number of experienced and trained resources and an insufficient understanding

of the application of internal

controls over

financial reporting

across the Southern

African businesses resulting

in ineffective

design, implementation

of

controls.

As a result of

insufficient time to design, implement and

fully test controls to

ensure we have remediated the

material weaknesses

discussed in our

Annual Report on

Form 10-K for

our fiscal year

ended June 30,

2025 (as described

above), the executive

chairman

and the

group chief

financial officer

concluded that

our disclosure

controls and

procedures were

not effective

as of

30,

Notwithstanding

the

previously

identified

material

weaknesses,

management

believes

the

statements included

in this Quarterly

Form 10-Q fairly

present, in

all material respects,

our financial

condition, results

of

operations and cash flows as of and for the periods presented in accordance with

U.S. GAAP.

Remediation Plan

Management has made

progress and continues

to actively work

on remediating the

identified material weaknesses

and remains

committed to

remediating the

material weaknesses

in a

timely manner.

Our remediation

process is ongoing

and includes,

but is

not

limited to, the following steps:

(1)

developing

and

implementing

a

remediation

plan

that

specific

actions

aimed

at

embedding

accountability

with

control

owners

related

to

the

operation

and

importance

of

over

reporting,

the principles

and requirements

of each

control, with

a

focus

on the

impacted

over

service

organizations, ITGCs, other process level controls;

(2)

mandating improved risk assessment procedures with governance requirements upon implementing new systems within our

company together with the design, implementation and monitoring

of control activities;

(3)

the recruitment of additional

appropriately skilled resources

across the Finance

and Risk and

Compliance disciplines coupled

with the further upskilling and training of existing resources responsible

for the execution of key controls as well as a focus

on a greater degree of automation of controls throughout the organization;

(4)

embedding of controls compliance in the key performance indicators of

senior executives across the business; and

(5)

collaborating closely with internal and external assurance partners to ensure

the robustness of our remediation plan.

The remediation plan

with respect to the

material weaknesses identified for

the year ended June

30, 2025 may be

adjusted as is

appropriate,

as

we

continue

to

evaluate

and

enhance

our

control

over

reporting.

Other

than

the

design

and

implementation of

the remediation

plan, there

been any

our internal

control over

financial reporting

fiscal quarter ended September

30, 2025, that have

materially affected, or are

reasonably likely to materially

affect, our internal control

o

ver financial reporting.