Proposed Acquisition of Cannabis Cultivation Operation, Ext of Bookbuild , Update on Force Fuel Bus Rescue & Renewal LABAT AFRICA LIMITED (Incorporated in the Republic of South Africa) (Registration number 1986/001616/06) (“Labat Africa” or “the Company”) ISIN Code: ZAE 000018354 Share code: LAB PROPOSED ACQUISITION OF A SOUTH AFRICAN CANNABIS CULTIVATION OPERATION, EXTENSION OF BOOKBUILD CLOSING DATE, UPDATE ON THE FORCE FUEL (PTY) LTD AND FORCE FUEL PROPERTIES (PTY) LTD BUSINESS RESCUE PROCEEDINGS AND RENEWAL OF CAUTIONARY ANNOUNCEMENT 1 PROPOSED ACQUISITION OF LICENSED CANNABIS CULTIVATION OPERATION IN SOUTH AFRICA Shareholders are advised that Labat Africa has entered into negotiations which, if successfully concluded, will result in it acquiring a South African Health Professionals Regulatory Authority (SAHPRA) licensed cannabis cultivation group based in the Eastern Cape (“proposed acquisition”). The Company has been granted a 60-day exclusivity period to conclude a due diligence investigation on the proposed acquisition, which due diligence investigation has commenced. Shareholders are cautioned that if the Company is satisfied with the outcome of the due diligence investigation and the proposed acquisition is proceeded with, it may have a material effect on the price of the Company’s securities. 2. EXTENSION OF BOOKBUILD AND DATES APPLICABLE TO THE SUBSCRIPTION OF SHARES BY VERITYHURST (PTY) LTD (“VERITYHURST”) Shareholders are referred to the announcements released on the Stock Exchange News Service (“SENS”) on 5 May 2020 relating to the Company’s intention to raise up to R112 million through the issue of shares under the Company’s existing General Authority to issue share for cash (“Bookbuild”) and 26 June 2020 in terms of which they were advised the Company has entered into a share subscription agreement with Verityhurst (“Verityhurst Subscription”) in terms of which Verityhurst has agreed to subscribe for up to 70 000 000 ordinary shares in Labat (“Subscription Shares”) for cash in two separate and divisible tranches. Shareholders are advised that a portion of the anticipated funds were received during August 2020 resulting in the issue of 6 000 000 Subscription Shares. The roadshow is, however, gaining traction, albeit in a difficult market and the Board has accordingly elected to extend the date of the Bookbuild to 31 October 2020 and the closing dates for the two tranches of the Verityhurst Subscription to 30 September 2020 and 31 October 2020 respectively. 3. ANTICIPATED TRANSACTION TO DISPOSE OF FORCE FUEL AND FORCE FUEL PROPERTIES Shareholders are referred to the announcement released on SENS on 30 July 2020 advising affected persons of the approval of the Force Fuel (Pty) Ltd and Force Fuel Properties Pty) Ltd (together, “the companies”) business rescue plans (together, “the Business Rescue Plans), which Business Rescue Plans provide for a bidding process by which prospective investors may make an offer for the companies. Shareholders are advised that in accordance with the parameters for the bidding process, the successful bid is expected to, at a minimum, result in a Category 2 disposal transaction being concluded by the Company. Further details of the anticipated disposal including the final terms thereof, will be announced once the successful bid has been approved. 4. RENEWAL OF CAUTIONARY ANNOUNCEMENTS Shareholders are referred to item 2 above and the various cautionary announcements published on SENS, the last of which was dated 30 July 2020, and are advised to continue exercising caution when trading in the Company’s shares until such time as further announcements in respect of the above corporate actions are made. Johannesburg 8 September 2020 Sponsor AcaciaCap Advisors Date: 08-09-2020 11:47:00 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.