Launch CannAfrica Store Completion of CPs Update on Force Fuel Business Rescue Update Verityhurst & Renew Cautionary 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 VOLUNTARY ANNOUNCEMENT ON CANNAFRICA STORE LAUNCH, COMPLETION OF CONDITIONS PRECEDENT, UPDATE ON THE FORCE FUEL (PTY) LTD, FORCE FUEL PROPERTIES (PTY) LTD BUSINESS RESCUE PROCEEDINGS, VARIATION OF SUBSCRIPTION AGREEMENT WITH VERITYHURST PROPRIETARY LIMITED (“VH”) AND RENEWAL OF CAUTIONARY ANNOUNCEMENT 1 VOLUNTARY ANNOUNCEMENT IN RELATION TO CANNAFRICA The Board advises that the first CannAfrica store was opened in Woodridge Shopping Centre, Tyger Valley in Cape Town last week and CannAfrica has commenced with the licensing of retail stores to third parties. Labat is happy to announce that the first 25 stores have already been successfully allocated. CannAfrica stores will also be launched in Bryanston and Hartbeespoort over the next 6 weeks. Labat holds 70% in CannAfrica Proprietary Limited as previously announced. 2. COMPLETION OF CONDITIONS PRECEDENT Shareholders are advised that the remaining conditions precedent for both the acquisition of 70% of CannAfrica Proprietary Limited and 70% of BioData Proprietary Limited have been met, with the commencement of the consolidation of the results commencing from 1 September 2020, being the new financial reporting year for Labat. 3. UPDATE ON THE VARIATION OF SUBSCRIPTION AGREEMENT WITH VH Shareholders are referred to the announcement released on the Stock Exchange News Service on 8 September 2020 relating to the Company’s extension of the closing dates for the two tranches of the VH to 30 September 2020 and 31 October 2020 respectively and are advised that it is intended that the agreement will be varied to provide for the loan of funds to Labat Africa on a draw down basis, with a conversion right into shares in Labat Africa under the General Authority on or before 31 August 2021, provided that VH is not a related party as defined in the JSE Listings Requirement at the time of conversion, failing which shareholder approval will be required. The loan will bear interest at the prime rate. Shares that were subscribed for during August 2020 have been issued and listed. An application will be made to issue and list the balance of shares subscribed for to date in terms of the subscription agreement. VH is not a related party to Labat Africa at the date of this announcement. Shareholders are advised that Labat Africa will be continuing with the bookbuild as previously announced. 4. 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 and the process is ongoing. Further details of the anticipated disposal including the final terms thereof, will be announced once the successful bid has been approved. 5. RENEWAL OF CAUTIONARY ANNOUNCEMENTS Shareholders are referred to item 4 above and the various cautionary announcements published on SENS, the last of which was dated 8 September 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 21 October 2020 Sponsor AcaciaCap Advisors Date: 21-10-2020 04:13:00 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.