Labat Africa : Agmnt - CSIR - Fast Track of Industrialisation - Cannabis Ind in SA & Accelerate use of Cannabis for Medicinal Purp

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 FSE Code: LEI 9845000R73DF5EE41J88

AGREEMENT WITH THE CSIR TO FAST TRACK THE INDUSTRIALISATION OF THE CANNABIS INDUSTRY IN

SOUTH AFRICA AND ACCELERATE THE USE OF CANNABIS FOR MEDICAL PURPOSES.

Labat Africa, the leading black owned listed Cannabis holdings group headquartered in South Africa and the Council for Scientific and Industrial Research, ("the CSIR") a statutory council, duly established under Act 46 of 1988, (together "the Parties") have signed an agreement to join forces to fast track and accelerate the implementation of various Cannabis related projects. The CSIR has carried out extensive work in the areas of both Industrial Hemp and Medical Cannabis.

The agreement follows in depth discussions which the parties held over the last year. The Parties entered into a Memorandum of Understanding ("MOU") for the purpose of collaboration in activities and/or interventions that support the Cannabis and Hemp value chains. The Parties recognise the synergy between them, and wish to explore possible areas of collaboration in the field of using hemp for construction and packaging amongst others.

This agreement provides for the Parties to further expand and develop the current Labat Africa offering which includes inter alia:

• Medical Cannabis product and process development;
• API Research Development and Production;
• Further development of Labat Africa wellness range;
• Processing and development of THC and CBD infused pharmaceutical products;
• COVID-19and disease research; and
• Hemp and Cannabis testing services.

This will enhance the opportunities within both Sweetwaters Aquaponics as well as BioData which conducts research and clinical trials using cannabis.

Johannesburg

12 August 2022

Sponsor

AcaciaCap Advisors Proprietary Limited