LESAKA TECHNOLOGIES INC

ITEM 3.

LEGAL PROCEEDINGS

Litigation related to CPS

Lesaka SA was party to proceedings in the Constitutional Court of South

Africa involving its former subsidiary, Cash Paymaster

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

liquidation. The key objective of

these proceedings was to procure an

order for CPS

to be

ordered to

pay to the

Social Security Agency

(“SASSA”) the profit

generated by CPS

from an agreement

between SASSA and CPS, following SASSA awarding

a tender to CPS. This

arose from prior court proceedings which

the tender should

not have been

awarded to CPS

(for technical reasons not

related to any

misconduct by CPS). Lesaka

SA was included

in these proceedings to provide information relevant to determining the profit so made by CPS. The Constitutional Court delivered its

ruling on

April 8,

Court ordered

CPS to refund

certain adjusted

certified profits

to SASSA.

The Court

did not

make any

adverse order against Lesaka SA. The Court’s

ruling concluded the matter.

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.