Execution of a Letter of Intent and Renewal of Cautionary Announcement LABAT AFRICA LIMITED Incorporated in the Republic of South Africa) (Registration number: 1986/001616/06) Share Code: LAB ISIN: ZAE000018354 ("Labat" or “the company”) EXECUTION OF A LETTER OF INTENT IN RESPECT OF THE PROPOSED ACQUISITION OF 5 OFF-SHORE PETROLEUM EXPLORATION BLOCKS IN NAMIBIA AND RENEWAL OF CAUTIONARY ANNOUNCEMENT Shareholders are referred to the cautionary announcement dated 4 April 2013 and are advised that Labat has signed a joint letter of intent with Amicitia Holdings Limited (“Amicitia”) for the purchase by Labat from Amicitia of all of the issued shares in Palantina Petroleum Limited (“the Proposed Acquisition”). The Proposed Acquisition, which will be subject to Palatina’s execution of various Petroleum Agreements, will result in Labat acquiring a majority participating interest in 5 (five) Petroleum Exploration Blocks, Off-shore Namibia. The letter of intent provides that the Company and Amicitia will work diligently and in good faith to execute a definitive agreement between them. Accordingly, shareholders are advised to continue to exercise caution in dealing in their securities, until a further announcement is made. Johannesburg 17 May 2013 Sponsor Arcay Moela Sponsors (Pty) Ltd Date: 20/05/2013 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.