Notice re: Orbis Leveraged Funds¹ — 28 October 2008

Since its inception, the Orbis Leveraged (US$) Fund has procured term-committed loan facilities instead of a prime broker for its borrowings. The main advantage of this is that the Fund and its Members are protected from instantaneous increases in borrowing cost (or more accurately borrowing spread) or repayment on demand as can occur with prime brokerage agreements. However, we as the Fund’s manager must still negotiate renewal of the lending facilities from time to time and thus make a determination as to whether prevailing borrowing spreads are acceptable. One of Leveraged’s lending facilities is due for renewal at the end of November and the Fund has the option to either enter into a new facility or term out the existing facility for another ten months, at the same or lower borrowing spreads.

We would not find entering into a new facility at the high borrowing spreads currently available attractive. So, rather than lock the Fund and its Members into a new loan facility at what we think are unattractive rates, we have sought to extend this facility by offering to shift related party investments from Leveraged to the Orbis Equity Funds in exchange for the lenders giving the Orbis Leveraged (US$) Fund the ability to maintain headroom in its borrowing facilities at attractive spreads until June 2010, when the Fund’s other facility expires. We believe the terms are attractive to both the Fund and its lenders, but should we fail to reach agreement the Fund has the option to extend loans outstanding under the expiring facility until September 2009, while also retaining separate borrowing facilities adequate for current levels of non-related party investment extending to June 2010. Regardless, this means that, with immediate effect and until further notice, no new investments will be accepted into the Leveraged Funds, including from existing Members. Current Leveraged Fund Members will remain free to switch at no cost to other Orbis Funds, including among the Leveraged Funds.

We regret limiting Members’ ability to initiate or add to their investment in the Leveraged Funds, but we don’t believe renewing the Orbis Leveraged (US$) Fund’s loan facilities at current market rates is in Members’ best interest. Going forward, we will continue to evaluate interest rate conditions and access to the Leveraged Funds. As for the firm, the impact of limiting the growth of the Leveraged Funds will be muted as they currently make up just over 4% of total client assets under management.

If you have any questions or wish to discuss this change within the Leveraged Funds, please contact the Investor Services Team at Orbis, at +1 441 296 3000, by e-mail at clientservice@orbisfunds.com or by mail to: The Investor Services Team, Orbis Group, 34 Bermudiana Road, Hamilton HM 11, Bermuda. Residents of Australia or New Zealand should contact Orbis in Australia on +61 (0)2 8224 8600 or clientservice@orbisfunds.com.au. South African residents should contact Allan Gray Unit Trust Limited on 0860 000 654 (toll free from within South Africa) or clientservice@orbisfunds.co.za.

¹The Funds affected are the Orbis Leveraged (US$) Fund, the Orbis Leveraged (Euro) Fund and the Orbis Leveraged (Yen) Fund.