Funding agreement between Labat and Milost Global Inc. LABAT AFRICA LIMITED (Incorporated in the Republic of South Africa) (Registration number 1986/001616/06) (“Labat” or “the Company”) ISIN Code: ZAE 000018354 Share code: LAB VOLUNTARY SENS ANNOUNCEMENT – FUNDING AGREEMENT BETWEEN LABAT AND MILOST GLOBAL INC. Shareholders are advised that Labat Africa has entered into a funding agreement with Milost Global Inc. (“Milost”) Milost is a private equity firm headquartered in New York City. With more than $25 billion in committed capital, the firm operates at the intersection of innovation, capital, and job creation. Milost funds publicly traded companies through its 'MESA' or Milost Equity Subscription Agreement. The MESA is a differentiated equity investment facility whose unique features catalyze long term corporate growth that enhance shareholder value. Milost provides its capital, to companies around the world in a broad range of industries including technology, health care, education, mining, oil & gas, financial services, and real estate. Milost’s MESA funding agreement is divided into two parts. - A R250 million facility for the subscription of shares in Labat Africa will be used primarily for working capital purposes. This equity component will be subscribed at a 50% premium to the 5 day volume-weighted average share price for each draw down, which shares are expected to be issued under the Company’s general authority to issue shares for cash. Based on the Company’s share trading price, a mechanism exists for a defrayment amount to be settled through the issue of Labat shares. This will also be settled under the Company’s general authority to issue shares for cash, provided that the issue price is within the limits set by the general authority, failing which the issue of shares may require shareholder approval. - A R750m convertible debt facility will be used to finance acquisitions. The drawdown of the facility is subject to regulatory approvals and each drawdown will be in accordance with all the regulatory approvals. Any share issue and conversion options will be limited to below 35% and will not trigger an offer to minority shareholders of Labat. This equity and funding facility will assist Labat in its expansion strategy in the transport and logistics sector. The company is currently reviewing a number of possible opportunities that it believes will add value to the Company. Johannesburg 7 February 2017 Sponsor Arbor Capital Sponsors Proprietary Limited Date: 07/02/2017 04:54:00 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.