Shumba Energy : CAUTIONARY ANNOUNCMENT

Suite 204

Grand Baie Business Quarters

Chemim Vingts Pied

Grand Bay, 30529

Republic of Mauritius

(A public company registered in the Republic of Mauritius - Company No. 111905 C1/GBL)

CAUTIONARY ANNOUNCMENT

TRADING STATEMENT - PUBLICATION OF THE UNAUDITED FINANCIALS STATEMENT FOR THE YEAR ENDED 30 JUNE 2022

The shareholders of Shumba Energy Ltd ("Shumba" or the "Group") are advised that it expects to only release its audited results for the 2022 Financial year by end of the year, however, the Group shall shortly release the unaudited results for the 12 months ended 30 June 2022.

These results will reflect a significant increase in the loss for the year mainly due to the increased development expenditure by the group in the period within its Renewable Energy focused subsidiary and specifically on its Tati 100MW Solar PV project. The group expects to report a loss for the period of around USD1.8m-USD2.2m as compared to a loss of USD1.2m in the 2021 prior year.

The expected loss for the 12 months ended 30 June 2022 will represent an decline of approximately USD600k-USD1m, a total decline of approximately 50% to 83% as compared to corresponding audited period of 30 June 2021.

Despite the increased loss expected to be declared, the company has continued to develop its assets and navigated successfully its most challenging period since its incorporation and listing on the BSE. The impacts of the pandemic causing contractual force-majeure by commercial partners that provided cash flows to cover operating costs, and by investors that had committed to various project developments within our portfolio caused significant financial hardship.

However, the company is pleased to report that it has emerged successfully with a strong foundation supported by new investment within the reporting period, in particular within its renewable energy investment portfolio. Further, the company has normalized and reinforced relationships with its audit, secretarial and governance partners. In particular the company wishes to express its gratitude for the guidance and support shown by the BSE in this regard.

We are also pleased to report that the clear reverse in global sentiment with regard to the requirement for and development of hydrocarbon assets for base load power generation within the growing energy crisis is proving to be positive for the company. This has justified our belief and the decision taken by the Board some 5 years ago that we should maintain our strong hydrocarbon asset portfolio and make it development ready for the inevitable change that would come. Accordingly, the company has received direct approaches and is currently engaged with new direct external investors initiated by the energy crisis challenges being faced both within the SADC region and internationally, and we look forward to delivering positive news in this regard in due course.

Shareholders are therefore advised to exercise caution when dealing in the company's shares.

The information in this trading statement has not been reviewed by Shumba's independent auditors.

By order of the Board

27 September 2022

This announcement is issued in accordance with section 5.4 of the Listing Requirements of the Botswana Stock Exchange ("BSE"), in which a listed entity is required to announce through the BSE any circumstances or events that may impact the financial results of the Company. In addition, companies must publish a cautionary announcement as soon as they are satisfied that a reasonable degree of certainty exists that the expected profit or loss (before tax) for the period to be reported upon next will differ by at least 10% to the corresponding comparative period

The Board of Directors of the Company accepts full responsibility for the accuracy of the information contained in this announcement.