PHAROL, SGPS, S.A.

Major Shareholding Notification • May 16, 2017

Announcement | Lisbon | 16 May 2017

Qualified Holding – Renaissance Technologies 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 Renaissance Technologies 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

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

[ ] An acquisition or disposal of voting rights

[x] 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: Renaissance Technologies LLC City and country of registered office (if applicable): New York USA

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

5. Date on which the threshold was crossed or reachedvi:

May 11, 2017

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 issuer vii
Resulting situation on the date on which threshold was crossed or reached		2.14 %	2.14 %	896,512,500
Position of previous notification (if applicable)		2.13 %	2.13 %

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 ISIN code (if possible)	Number of voting rights	ix	% of voting rights
	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)
SUBTOTAL A

B 1: Financial Instruments according to Art. 13(1)(a) of Directive 2004/109/EC
Type of financial instrument	Expiration date x	Exercise/ Conversion Periodxi	Number of voting rights that may be acquired if the instrument is exercised/ converted.	% of voting rights
		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 date x	Exercise/ Conversion Period x i	Physical or cash settlement xii	Number of voting rights	% of voting rights
Cash Settled Swap	Rolling monthly	Monthly from first business day	Cash settled	19,215,348	2.14%
			SUBTOTAL B.2	19,215,348	2.14%

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
GF Trading LLC		1.99 %	1.99 %
Ridge Master Trading LP		0.15 %	0.15 %
Total:		2.14%	2.14 %

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

10. Additional informationxvi:

Renaissance Technologies LLC acts as investment manager to controlled undertakings (i) GF Trading LLC and (ii) Ridge Master Trading LP.

GF Trading LLC feel below a relevant reporting threshold, as specified in Section 8, above; however, GF Trading LLC and Ridge Master Trading LP hold financial instruments that in the aggregate still exceed the relevant reporting threshold.

New York, New York USA May 15, 2017