Questions Why Jefferies' Board Refuses to Intervene After Being Notified That the Bank Is Illegitimately Withholding Funds from a Client as Security Against Positions that Legally No Longer Exist

Website Detailing Jefferies' Numerous Misdeeds Can Be Viewed at www.JefferiesFraud.com

IsZo Capital Management LP (together with its affiliates, “IsZo” or “we”) today issued the below letter to Jefferies Financial Group, Inc.'s (NYSE: JEF) (together with its affiliates, “Jefferies”) Board of Directors. The letter pertains to the statement of claim and arbitration proceeding that IsZo has initiated against Jefferies, pursuant to Rule 12200 of the Financial Industry Regulatory Authority ("FINRA") Code of Arbitration Procedure and the mandatory arbitration clause that Jefferies incorporated into its customer agreements. Visit www.JefferiesFraud.com for information pertaining to our case against Jefferies.

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"If you tell the truth, you don't have to remember anything."

– Mark Twain

January 3, 2022

Jefferies Financial Group, Inc.

Attn: The Board of Directors

520 Madison Avenue

New York, NY 10022

Dear Members of the Board of Directors,

It is disappointing that IsZo Capital Management LP (together with its affiliates, "IsZo" or "we") have not yet received a response from you regarding our November 17^th letter. I had hoped that when notified of wrongdoing in Jefferies LLC's (together with its affiliates, "Jefferies") prime brokerage business, the Board of Directors (the "Board") would act swiftly and responsibly to put a stop to the wrongdoing and correct the harm done, in accordance with Jefferies' purported "values." I urge you to recall that each of you has been notified of wrongdoing at your company and each of you has an obligation and responsibility to ensure that the matter is properly addressed. I cannot imagine that, at this point in your careers, you would want to perpetuate Jefferies' crimes against a client.

When it comes to Jefferies' Prime Brokerage employees, it is shocking how uniformly unethical your people have been in our experience with them. Without the slightest tinge of remorse, a hint of nervousness or a moment of hesitation, your employees tell the most comically ridiculous lies – one after the other. As a former physician who took the Hippocratic Oath, it always amazes me to see humans commit felonies in broad daylight without the slightest blush on their face. It is discouraging and shocking how ethically challenged and criminally inclined so many on Wall Street are.

Perhaps leadership is proud that you have employees so dedicated to Jefferies that they are willing to steal from clients for the bank's benefit. Unfortunately, your employees fail spectacularly in their efforts to invent credible lies to cover up their criminal actions. As Mark Twain would point out, almost no human is smart enough to consistently lie. It is why activist investors have so much success – their targets inflict all the damage themselves.

Recently, IsZo has been in the press following our successful campaign for boardroom change at Nam Tai Property Inc (NYSE: NTP) ("Nam Tai"). Some of my colleagues have congratulated me and expressed their surprise that IsZo prevailed in the fight for six board seats at Nam Tai. In my view, IsZo didn't necessarily defeat the Kwok family and Kaisa Group Holdings Ltd ("Kaisa") – we believe that Kaisa and the Kwoks destroyed themselves.

The question I now pose to the Board is, are you going to put an end to the crimes that your employees are actively committing? Every day, Jefferies steals more money from IsZo and our clients without cause. Jefferies is withholding our funds against our will, presumably as security or collateral against positions that are not securities and against positions that legally no longer exist. And every day, Jefferies continues to charge IsZo additional interest and fees for short securities that no longer exist. If the Board doesn't take action, I believe it is continuing the crimes initiated by Jefferies' prime brokerage group. And if the Board doesn't take immediate action, then Jefferies' ongoing theft and defrauding of IsZo becomes a crime also committed by you.

Rest assured that IsZo has reviewed Jefferies' fees numerous times and concluded that on every single day IsZo has been a Jefferies client, Jefferies has charged us fees and interest on short securities that do not exist. In other words, Jefferies has committed fraud against IsZo and our clients for the entire duration of our business relationship.

In addition, since we sent our November 17^th letter, it has come to our attention that at least one other fund has had similar issues with Jefferies Prime Brokerage and with some of the very same employees that have committed crimes against IsZo.

We believe that the crimes Jefferies has committed against IsZo are not a one-off problem but a systemic issue at Jefferies Prime Brokerage. Additionally, your employees Christopher Bianchi, John Laub, Jennifer Kane, Michael Sharp, and Barsam Lakani are not just one-time liars or criminals but are actively involved in the criminal activity of knowingly stealing from and defrauding of your "valued" customers.

Why doesn't the Board work with IsZo as well as the relevant authorities to see that your white-collar criminal employees serve the appropriate time and are barred from future employment in the securities industry and from practicing law? IsZo is even willing to help Jefferies review its records to help it identify and assist other Jefferies Prime Brokerage clients that have been robbed and defrauded by Jefferies Prime Brokerage.

The crimes that Jefferies has committed against IsZo are severe and we will not rest until justice has been served. Your employees have stolen millions of dollars from IsZo and our clients over worthless paper that are not securities by FINRA's own definitions and that legally no longer exist. Stealing millions of dollars is a felony in all 50 states, punishable by time served in an actual jail.

IsZo intends to maintain a permanent website documenting Jefferies' crimes against IsZo to keep the public informed of the bank's misdeeds. You can visit our website at www.JefferiesFraud.com for more information.

Sincerely,

Brian Sheehy, MD MA CFA

IsZo Capital

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