Announcement regarding the subscription of Sea Harvest shares Brimstone Investment Corporation Limited (Incorporated in the Republic of South Africa) Registration number 1995/010442/06 Share Code: BRT ISIN: ZAE000015277 Share Code: BRN ISIN: ZAE000015285 (“Brimstone” or the “Company”) ANNOUNCEMENT REGARDING THE SUBSCRIPTION OF SEA HARVEST SHARES 1. Introduction and details Brimstone shareholders are referred to the announcement released on SENS on 28 August 2018 (the “Announcement”) regarding the acquisition by Sea Harvest Group Limited (“Sea Harvest”), a subsidiary of Brimstone, of Ladismith Cheese Company Proprietary Limited (the “Acquisition”). The Announcement referred to Sea Harvest’s intention to part-fund the Acquisition by way of a vendor consideration placing of up to R300 million worth of Sea Harvest shares with Brimstone. In this regard, Brimstone shareholders are advised that Brimstone has entered into a subscription agreement with Sea Harvest in terms of which Brimstone will be subscribing for 21 428 571 Sea Harvest ordinary shares (“Shares”) at a price of R14.00 per Share, for a total consideration of R300 million (the “Subscription”). The Subscription represents approximately 7.9% of the total Sea Harvest Shares currently in issue and will increase Brimstone’s shareholding in Sea Harvest from 50.6% to 54.2%. The effective date of the Subscription will be 7 January 2019 (the “Effective Date”). 2. Overview of Sea Harvest Sea Harvest is a leading, internationally recognised B-BBEE fishing and food business with operations in South Africa and Australia, servicing retail and foodservice customers in 22 countries. Its principal business is the fishing of wild-caught MSC certified Cape hake and Shark Bay prawns along with horse mackerel, pilchards, anchovies, tuna, prawns, scallops and crabs, the processing of the catch into frozen and chilled seafood, and the marketing of these products, locally and internationally. Sea Harvest is also one of the most diversified players in the South African aquaculture space, with operations spanning abalone, oysters, mussels and trout. Employing 3 740 employees and with operations along the entire South African coastline, including the rural areas of Kleinzee, Saldanha Bay, Mossel Bay and Buffelsjag, Sea Harvest continues to be one of the largest economic drivers in the communities in which it operates. Further information on Sea Harvest can be accessed on www.seaharvest.co.za. 3. Rationale for the Subscription Following its listing on the JSE Limited (“JSE”) on 23 March 2017, Sea Harvest has actively sought to grow both organically and via acquisitions in the fishing and food sectors in line with the company’s strategy and vision of becoming one of the largest black owned diversified global seafood and food companies. Brimstone considers it important to support its subsidiary in pursuing this growth strategy and additionally further strengthening Sea Harvest’s B-BBEE credentials. 4. Purchase consideration The consideration payable for the Subscription of R300 million will be settled by Brimstone from available facilities. 5. Condition precedent The Subscription is conditional upon Sea Harvest shareholders having approved the Subscription by way of a special resolution as required in terms of section 41(1)(b) of the Companies Act, No 71 of 2008, by no later than the Effective Date. 6. Net assets and attributable profits The net asset value of the Subscription was R226.8 million and the net profit after tax was R4 million as extracted from Sea Harvest’s unaudited interim results for the six months ended 30 June 2018, which were prepared in accordance with International Financial Reporting Standards. The above calculations do not take into account Shares issued subsequent to 30 June 2018 for the acquisition by Sea Harvest of the Viking Fishing Group and Forfeitable Share Plan shares issued to Sea Harvest management and staff. 7. Categorisation of the Subscription The Subscription is categorised as a Category 2 transaction for Brimstone in terms of the JSE Listings Requirements. 17 October 2018 Cape Town Investment bank, corporate advisor and sponsor Nedbank Corporate and Investment Banking Legal advisor Cliffe Dekker Hofmeyr Date: 17/10/2018 08:01:00 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.