Labat Africa : General Issue of Shares for Cash

LABAT AFRICA LIMITED

Incorporated in the Republic of South Africa

(Registration number 1986/001616/06)

JSE code: LAB ISIN: ZAE000018354 ("Labat" or "the Company" or "the Group")

LEI 9845000R73DF5EE41J88

GENERAL ISSUE OF SHARES FOR CASH

In terms of paragraph 11.22 of the JSE Listings Requirements, shareholders are hereby advised that Labat Africa has issued 21 282 998 new shares under its General Authority to issue shares for cash, which was approved by shareholders on 11 May 2021. The Company has issued 102 689 044 new shares from the date of the approval of the General Authority representing a cumulative of 26.17% of the issued share capital of the Company from the date of approval of the general authority.

The new issue of 21 282 998 shares represents 5.42% thereof. The shares were issued over a period of three months at prices ranging from 23 cents to 29 cents per share, being a premium to the 30-day volume weighted average price ("VWAP") on a monthly basis in accordance with the board approval for the issue of shares for cash.

As at 31 March 2022, the 10% discount to the 30-day VWAP was 22.3 cents per share.

The funds received are being applied to the expansion of the cannabis healthcare business and working capital.

The shares issued rank pari passu with existing listed Labat Africa ordinary shares. Following the issue of the shares, the total issued and listed share capital of Labat Africa has increased to 550 489 994 ordinary shares.

Johannesburg

14 April 2022

Sponsor

AcaciaCap Advisors Proprietary Limited