SALUNGANO GROUP LIMITED - Cautionary Announcement Relating to a Business Rescue Application of a Wholly-Owned Subsidiary

Cautionary Announcement Relating to a Business Rescue Application of a Wholly-Owned Subsidiary

SALUNGANO GROUP LIMITED
Incorporated in the Republic of South Africa
(Registration number 2005/006913/06)
Share code: SLG   ISIN: ZAE000306890
(“Salungano Group” or “the Company”)


CAUTIONARY ANNOUNCEMENT RELATING TO A BUSINESS RESCUE APPLICATION OF A
WHOLLY-OWNED SUBSIDIARY


Shareholders are referred to the announcement released on SENS on 21 August 2023, advising shareholders
that a mining contractor of Wescoal Mining Proprietary Limited (“Wescoal Mining”), a wholly-owned subsidiary
of the Company, had taken legal steps to apply for the provisional winding-up of Wescoal Mining, that Wescoal
Mining had filed its notice of opposition to the liquidation application (which was heard on 22 August 2023) and
that Wescoal Mining comprised the mining operations at the Khanyisa and Elandspruit mines.

Shareholders were also advised that the Company, in its capacity as an affected party, had launched a court
application to place Wescoal Mining in business rescue, which application was heard on 22 August 2023.

Subsequent to the aforementioned announcement, the respective applications were postponed from 22 August
2023 to 24 August 2023. On 24 August 2023, the parties to the liquidation application agreed to settle the
matter and the terms of the settlement agreement have been made an order of the court. The liquidation
application was withdrawn and Wescoal Mining shall commence with a voluntary business rescue process
based on a board resolution in terms of Section 129(1) of the Companies Act.

Shareholders will be kept updated on the business rescue developments in subsequent announcements.

The business rescue process may have a material effect on the price of the Company’s securities. Accordingly,
shareholders are advised to exercise caution when dealing in the Company’s securities until a further
announcement is made.


Johannesburg
25 August 2023

Sponsor
Merchantec Capital

Date: 25-08-2023 02:15:00
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