PHAROL, SGPS, S.A.

Report Publication Announcement • Nov 3, 2016

Announcement | Lisbon | 3 November 2016

Qualified Holding – High Seas Capital Investments, LLC

PHAROL, SGPS S.A. ("PHAROL") hereby informs that High Seas Capital Investments, LLC, now holds 2.11% of the share capital of PHAROL.

On 27th and 28th October, Hight Seas Capital Investments, LLC acquired 18,300,000 ordinary shares, representing approximately 2.11% of the share capital of PHAROL..

This statement is 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, following a communication received from Hight Seas Capital Investments, LLC.

PHAROL, SGPS S.A.

Public company Share capital Euro26,895,375 Registered in theCommercial Registry Office ofLisbon and Corporation no. 503 215058

PHAROL is listed on the Euronext (PHR). Information may be accessed onBloomberg under the symbol PHRPL.

Luis Sousa de Macedo Investor Relations Director ir@pharol.pt Tel.: +351 212 697698 Fax: +351 212 697949