PHAROL, SGPS, S.A.

Major Shareholding Notification • Dec 5, 2016

Announcement | Lisbon | 5 December 2016

Qualified Holding – High Seas Investments, LLC

PHAROL, SGPS S.A. ("PHAROL") hereby informs, pursuant to the terms and for the purposes of articles 16 of the Portuguese Securities Code and 2 of the Portuguese Securities Commission Regulation no. 5/2008, that received a communication from Hight Seas Investments, LLC, attached hereto.

NOTIFICATION OF MAJOR HOLDINGS (to be sent to the relevant issuer and to the competent authority)i

1. Identity of the issuer or the underlying issuer of existing shares to which voting rights are
attachedii:

Pharol SGPS SA Symbol : PHRZF ISIN Number : PTPTC0AM0009 CUSIP : X6454E135

2. Reason for the notification (please tick the appropriate box or boxes):

[ x] An acquisition or disposal of voting rights [ ] An acquisition or disposal of financial instruments

[ ] An event changing the breakdown of voting rights

[ ] Other (please specify)iii:

3. Details of person subject to the notification obligationiv :

Name: High Seas Investments, LLC City and country of registered office (if applicable): 615 south Dupont Highway, Dover, 19901. Delaware, USA

4. Full name of shareholder(s) (if different from 3.)v :

5. Date on which the threshold was crossed or reachedvi: November 28th, 2016.

6. Total positions of person(s) subject to the notification obligation:
	% of voting rights attached to shares (total of 7.A)	% of voting rights through financial instruments (total of 7.B.1 + 7.B.2)	Total of both in % (7.A + 7.B)	Total number of voting rights of issuervii
Resulting situation on the date on which threshold was crossed or reached	5,20%	0	5,20%	896.512.500
Position of previous notification (if applicable)	2,04%	0	2,04%

7. Notified details of the resulting situation on the date on which the threshold was crossed or reachedviii:

A: Voting rights attached to shares
Class/type of shares	Number of voting rightsix		% of voting rights
ISIN code (if possible)	Direct (Art 9 of Directive 2004/109/EC)	Indirect (Art 10 of Directive 2004/109/EC)	Direct (Art 9 of Directive 2004/109/EC)	Indirect (Art 10 of Directive 2004/109/EC)
Symbol : PHRZF ISIN Number : PTPTC0AM0009 CUSIP : X6454E135	46.657.016	0	5,20%
SUBTOTAL A	46.657.016		5.20%

Type of financial instrument	Expiration datex	B 1: Financial Instruments according to Art. 13(1)(a) of Directive 2004/109/EC Exercise/ Conversion Periodxi	Number of voting rights that may be acquired if the instrument is exercised/ converted.	% of voting rights
NA
		SUBTOTAL B.1

B 2: Financial Instruments with similar economic effect according to Art. 13(1)(b) of Directive
2004/109/EC

Type of financial instrument	Expiration datex	Exercise/ Conversion Period x i	Physical or cash settlementxii	Number of voting rights	% of voting rights
NA
			SUBTOTAL B.2

8. Information in relation to the person subject to the notification obligation (please tick the applicable box):

[ ] Person subject to the notification obligation is not controlled by any natural person or legal entity and does not control any other undertaking(s) holding directly or indirectly an interest in the (underlying) issuer.xiii

[x] Full chain of controlled undertakings through which the voting rights and/or the financial instruments are effectively held starting with the ultimate controlling natural person or legal entityxiv:

Namexv	% of voting rights if it equals or is higher than the notifiable threshold	% of voting rights through financial instruments if it equals or is higher than the notifiable threshold	Total of both if it equals or is higher than the notifiable threshold
Angra Capital Management LTD.	0	0	0

9. In case of proxy voting: [name of the proxy holder] will cease to hold [% and number] voting rights as of [date] NA

10. Additional informationxvi:

NA

November 28th, 2016.