AFR - AFGRI Limited - Cautionary announcement relating to the potential

AFR - AFGRI Limited - Cautionary announcement relating to the potential         
acquisition by AFGRI Operations Limited of the yellow maize milling business of 
Pride Milling Company (Proprietary) Limited                                     
AFGRI Limited                                                                   
(Incorporated in the Republic of South Africa)                                  
Registration Number: 1995/004030/06                                             
ISIN: ZAE000040549                                                              
JSE share code: AFR                                                             
("AFGRI" or "the Company")                                                      
CAUTIONARY ANNOUNCEMENT RELATING TO THE POTENTIAL ACQUISITION BY AFGRI          
OPERATIONS LIMITED ("AOL") OF THE YELLOW MAIZE MILLING BUSINESS OF PRIDE MILLING
COMPANY (PROPRIETARY) LIMITED ("PRIDE")                                         
Shareholders are advised that AOL, a wholly owned subsidiary of AFGRI, is in    
negotiations with Pride, which negotiations, if successful, will result in the  
acquisition by AOL of the yellow maize milling business of Pride ("the Proposed 
Transaction").                                                                  
If implemented, the Proposed Transaction will strengthen AFGRI`s industrial     
food processing capability, in line with AFGRI`s strategy to expand further into
the food industry.                                                              
As the Proposed Transaction may have a material effect on the price of AFGRI`s  
shares, AFGRI shareholders are advised to exercise caution when dealing in their
AFGRI shares.  A further detailed announcement will be made once definitive     
transaction agreements have been concluded between AOL and Pride.               
Centurion                                                                       
1 March 2011                                                                    
Sponsor                                                                         
Investec Bank Limited                                                           
Transactional Attorneys                                                         
Webber Wentzel                                                                  
Date: 01/03/2011 14:00:19 Supplied by www.sharenet.co.za                     
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