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Cash payment in respect of Fractional Entitlement for Share Consolidation

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09 Nov 2017

EFORA ENERGY LIMITED

(Formerly SacOil Holdings Limited)

(Incorporated in the Republic of South Africa)

(Registration number 1993/000460/06)

JSE Share Code: EEL

ISIN:   ZAE000248258

(“Efora” or “the Company”)

CASH PAYMENT IN RESPECT OF FRACTIONAL ENTITLEMENT FOR SHARE CONSOLIDATION

Shareholders are referred to the announcements released on SENS in respect of the name change and share consolidation in the ratio of 10 to 1 (the “consolidation”), the last of which announcements was released on SENS on 8 November 2017.

In implementing the consolidation, the Company is required by the JSE to apply the rounding principle that a shareholder becoming entitled to a fraction of a share arising from the consolidation (“fractional entitlement”) will be rounded down to the nearest whole number, resulting in the allocation of whole Efora shares and a cash payment for the fraction (the “cash payment”). The value of such cash payment will be the volume weighted average traded price per Efora share less 10% calculated on the first day of trade after the last day to trade in order to participate in the consolidation. The value of such cash payment will be announced on SENS on the second day of trade after the last day to trade in order to participate in the consolidation.

Shareholders are advised that the value of an Efora share to be utilised in determining the cash payment due to a shareholder in respect of any fractional entitlement is 165.97558 cents. In accordance with the requirements of the JSE Limited, this amount has been determined with reference to the weighted average price of an Efora share traded on the JSE on Wednesday, 8 November 2017, discounted by 10%. The gross amount of the cash payment per fractional entitlement will be paid to Efora shareholders entitled thereto. There will be no withholding tax applicable.

To the extent that a shareholder held Efora shares as capital assets (not as trading stock as defined in section 1 of the Income Tax Act no. 58 of 1962 (“Income Tax Act”)), the cash payment will be regarded as capital in nature. The cash payment less the base cost allocated to the relevant fraction of Efora shares will accordingly be subject to capital gains tax in terms of the applicable provisions of the Eighth Schedule to the Income Tax Act. To the extent that a shareholder held the shares as trading stock as defined in section 1 of the Income Tax Act, the cash payment will be regarded as revenue in nature. The cash payment less the expenditure allocated to the relevant fraction of the Efora shares will accordingly be taxed as normal income in terms of the applicable provisions of the Income Tax Act.

The above is a general description of certain aspects of current South African tax considerations applicable to the receipt of the cash payment. It does not purport to be a complete analysis of all South African tax considerations applicable to the shareholders. Shareholders should consult their own tax advisers as to the application of the general principles set out herein to their specific circumstances.

This summary is based upon the law as in effect on the date of this announcement and is subject to any change in law that may take effect after such date.

The salient dates and times announced on Thursday, 26 October 2017 remain unchanged.

JSE Sponsor

PSG Capital Proprietary Limited

9 November 2017

For further information please contact:

Efora Energy Limited

Damain Matroos

+27 (0)10 591 2260

Buchanan (Financial PR adviser)

Ben Romney / Chris Judd

+44 (0)20 7466 5000

About Efora

Efora Energy Limited is a South African based independent African oil and gas company, listed on the JSE. The Company has a diverse portfolio of assets spanning production in Egypt; exploration and appraisal in the Democratic Republic of Congo; midstream project relating to crude trading in Nigeria and material downstream distribution operations throughout Southern Africa. Our focus as a Group is on delivering energy for the African continent by using Africa’s own resources to meet the significant growth in demand expected over the next decade.