LESAKA TECHNOLOGIES INC

Litigation related to CPS

Lesaka

SA

was

a

party

to

proceedings

in

the

Constitutional

Court

of

South

Africa

involving

its

subsidiary,

Cash

Paymaster

Services Proprietary Limited (“CPS”), which is in liquidation.

The objective of these proceedings was to procure an

order for CPS to

pay

to

the

South

African

Social Security

Agency

(“SASSA”)

the

profit

by

CPS from

an

agreement

concluded

between

SASSA and

CPS, following

the award

of a tender

to CPS. This

arose from

prior court

proceedings which

concluded that the

tender

should not

awarded to

CPS (for

technical reasons

not related

to any

conduct by

CPS). Lesaka

SA was

in these

proceedings to provide

information relevant to

determining the profit

so made by CPS.

The Constitutional Court

delivered its ruling

on April 8, 2026.

The Court ordered CPS

to refund certain

adjusted certified profits to

SASSA. The Court did

not make any adverse

order against Lesaka SA.

General

We are, from

time to time, subject to claims and suits, or threats of claims or suits, relating

to our business, including claims for

damages for personal injuries,

breach of contract and

employment related claims. In

certain of these actions,

plaintiffs request payment

for damages, including punitive damages, which may not be covered by insurance or may otherwise have a material adverse effect on

our business or results of

operations. In the opinion

of management, we are

not currently a party to

any proceedings that would

have

a material adverse effect on our business, financial condition,

or results of operations.