Voluntary announcement: Acquisition of Sunshine Bakery

RCL FOODS LIMITED

(Incorporated in the Republic of South Africa) (Registration number: 1966/004972/06)

ISIN: ZAE000179438

Share Code: RCL

("RCL FOODS")

VOLUNTARY ANNOUNCEMENT: ACQUISITION OF SUNSHINE BAKERY

RCL FOODS is pleased to announce the conclusion of an agreement for the acquisition of Sunshine Bakery Holdings Proprietary Limited ("Sunshine Bakery") (the "Acquisition"), a Company indirectly majority-owned by AFGRI Group Holdings.

Established in 2005 by Daniel Anastasis, Sunshine Bakery, based in KwaZulu-Natal, is one of South Africa's largest independent baking businesses. It serves a diversified customer base in the formal retail and general trade channels, through two regional bakeries in Durban and Pietermaritzburg, as well as various depots across the province.

The Acquisition is in line with RCL FOODS' strategy to scale the value-added brands component of its portfolio and to expand the capability of its established Baking business unit into new geographies. The Acquisition will increase bread volumes in the RCL FOODS Baking network by 28%.

The Acquisition falls below the threshold for categorisation in terms of the JSE Limited Listings Requirements, and therefore this is a voluntary announcement provided for information purposes only.

The transaction is subject to the fulfilment of both regulatory and commercial suspensive conditions by no later than 30 November 2022.

Durban

26 July 2022

Sponsor

RAND MERCHANT BANK (A division of FirstRand Bank Limited)