Announcement relating to the acquisition by Long4Life of Inhle Beverages LONG4LIFE LIMITED (Incorporated in the Republic of South Africa) (Registration number: 2016/216015/06) Share code: L4L ISIN: ZAE000243119 ("Long4Life" or "the Company") ANNOUNCEMENT RELATING TO THE ACQUISITION BY LONG4LIFE OF INHLE BEVERAGES 1. INTRODUCTION Pursuant to the cautionary announcement released on the Stock Exchange News Service of the JSE Limited (“JSE”) on 5 July 2017 and the further cautionary announcement released on 5 August 2017 (collectively “the Cautionary Announcements”), the board of directors of Long4Life (“the Board”) is pleased to announce that it has concluded a Share Purchase Agreement to acquire the entire issued share capital of Inhle Beverages Proprietary Limited (“Inhle”) (“the Acquisition”). 2. RATIONALE FOR THE ACQUISITION The Board is of the opinion that the Acquisition of Inhle will provide a solid and strategic platform from which a beverage cluster can be created within Long4Life, including an opportunity to build a beverage business of scale through both organic and acquisitive growth. Furthermore, Inhle recently secured a liquor licence (for packaging purposes), representing an additional industry opportunity to expand and grow Inhle’s presence in the beverage sector. 3. OVERVIEW OF INHLE Inhle is a well-established contract packaging business located in Heidelberg, Gauteng, specialising in the canning and bottling of carbonated soft drinks, natural mineral water and energy drinks. Having been established in 2003 with one production line, the business has grown to be the second largest beverage contract packaging business in South Africa, currently employing around 300 staff. Inhle has seven production lines, with considerable scope for expansion. The existing management team will continue to be employed in the business. 4. PURCHASE CONSIDERATION AND CONDITIONS PRECEDENT The maximum purchase consideration is R360 million, based on a 6x multiple of forecast EBITDA for Inhle’s financial year to 28 February 2018 of R60 million, which EBITDA remains to be confirmed during the due diligence exercise referred to hereunder. Based on management accounts as at 31 July 2017, Inhle’s tangible net asset value amounts to R53.8 million. Anticipated EBITDA is referred to above. The Acquisition, which is effective 1 July 2017, is subject to certain conditions precedent, all of which are expected to be fulfilled by 31 October 2017, including: - certain regulatory approvals (including, but not limited to, the Competition Authorities); and - completion of a due diligence investigation to the satisfaction of Long4Life. The purchase consideration will be settled through a combination of cash and Long4Life shares, the latter to be issued based on the volume weighted average price (VWAP) of L4L Shares traded during the 5 (five) trading day period immediately preceding the closing date, this following fulfilment (or waiver, as the case may be) of the last of the conditions precedent. The Share Purchase Agreement contains warranties and indemnities that are standard for a transaction of this nature. 5. CATEGORISATION The Acquisition is classified as a Category 2 transaction for Long4Life in terms of the Listings Requirements of the JSE. There is no matter in the constitutional documents of Inhle which will preclude Long4Life from continuing to comply with its obligations in terms of the Listings Requirements of the JSE. 6. CAUTIONARY ANNOUNCEMENT Shareholders are advised that the Cautionary Announcements (which pertained to the Acquisition) are hereby withdrawn. Shareholders are however referred to the Firm Intention Offer by Long4Life announced on 25 July 2017 pertaining to the proposed acquisition of the entire issued share capital of Holdsport Limited, and are accordingly advised to continue to exercise caution when dealing in the Company’s securities until a further announcement in this regard is made. Johannesburg 23 August 2017 Financial advisor and Sponsor The Standard Bank of South Africa Limited Date: 23/08/2017 10:15:00 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.