Acquisition of the Grain Management Business of MGK AFGRI Limited Registration Number: 1995/004030/06 (Incorporated in the Republic of South Africa) ISIN: ZAE000040549 JSE share code: AFR ("AFGRI" or "the Company") VOLUNTARY ANNOUNCEMENT REGARDING THE ACQUISITION OF THE GRAIN MANAGEMENT BUSINESS OF MGK BEDRYFSMAATSKAPPY EIENDOMS BEPERK INTRODUCTION AFGRI Operations Limited, a wholly owned subsidiary of the Company ("AFGRI Operations”) and MGK Bedryfsmaatskappy Eiendoms Beperk (“MGK”), have entered into binding sale of business and lease agreements ("the Agreements") in terms of which AFGRI Operations will, upon fulfilment of the suspensive conditions referred to in paragraph 2 below ("the Conditions"), acquire the Grain Management business of MGK conducted at the silos in Pretoria West, Brits, Northam as well as Battery (“the Silo Complexes”) as a going concern (“the Business”), and will lease the Silo Complexes from MGK ("the Transaction"). 1. THE TRANSACTION 1.1 Rationale The Business has been identified as a valuable strategic asset which falls within AFGRI’s growth strategy to expand its core Grain Management capacity. The Transaction will increase AFGRI’s grain storage capacity by 165,000 metric tonnes to 4 471 000 metric tonnes. 1.2 Terms of the Transaction In terms of the Transaction: 1.2.1 MGK will sell the Business, including its assets, as a going concern to AFGRI Operations; 1.2.2 MGK will lease the Silo Complexes to AFGRI Operations for a period of 9 years and 11 months with an option by AFGRI Operations to extend the lease period for a further 9 years and 11 months; and 1.2.3 MGK will grant AFGRI Operations a right of first refusal to acquire the Silo Complexes should MGK wish to sell, with effect from the effective date of the Transaction, which will occur once the last of the Conditions has been satisfied. 1.3 Purchase price 1.3.1 The purchase price payable by AFGRI Operations to MGK for the Business is R12 million. 1.3.2 The monthly lease payment for the Silo Complexes is R1.1 million, which will escalate annually in line with the Consumer Price Index. 2. SUSPENSIVE CONDITIONS The Transaction is subject to the fulfilment or waiver of, inter alia, the following conditions: 2.1 the unconditional approval of the Transaction by the South African Competition Authorities, or if such approval is conditional, subject to conditions acceptable to AFGRI Operations insofar as such conditions affect AFGRI Operations and to MGK insofar as such conditions affect MGK; and 2.2 AFGRI Operations confirming its approval of the results of the financial, legal and technical due diligence conducted by AFGRI Operations in respect of the Business. Centurion 27 May 2013 Sponsor of the Company Investec Bank Limited Date: 27/05/2013 01:10:00 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.