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(A public company Incorporated in the Republic of Zimbabwe under company registration number 18/35)

UPDATE ON THE SCHEME OF ARRANGEMENT BETWEEN STARAFRICA AND ITS CREDITORS


1. SCHEME OF ARRANGEMENT  The Scheme of Arrangement between Starafricacorporation Limited and its lenders and creditors (the Scheme) was overwhelmingly voted for at the creditors meetings held on 5 June 2013. The Scheme was sanctioned by the High Court on 7 August 2013 and registered with the Registrar of Companies on 14 August 2013. The Scheme requires that updates be furnished to all Scheme Members. The Scheme provides for a grace period of 6 months commencing 7 August 2013 and expiring on 6 February 2014. This means that the first payments to lenders and creditors will be made on or before 7 February 2014. 2. DISPOSAL OF ASSETS  The shareholders approved the disposal of Starafricas investment in Tongaat Hulett Botswana (THB) and Bluestar Logistics at an Extraordinary General Meeting held on 19 July 2013. Proceeds from the two disposals will be applied towards the payments to be made to creditors and lenders on or before 7 February 2014 in accordance with the terms of the Scheme. Negotiations with prospective purchasers are in progress and we hope to conclude both disposal transactions by 30 November 2013. 3. GSSH PLANT UPGRADE  The plant upgrade project at Goldstar Sugars Harare (GSSH) is progressing on schedule. Eighty five percent (85%) of the contract price has been paid as per the payment terms stipulated in the Contract. The first lot of equipment constituting 35% of total is undergoing pre-shipment inspection by SGS an international engineering consultancy firm. Shipment is targeted for early October 2013. The manufacture of the remainder is in progress and shipment will be done on or before 31 October 2013. The civil works is in progress and is scheduled to be completed on or before 7 October 2013. Installation and commissioning of the equipment is targeted for completion in January 2014. 4. RAW SUGAR SUPPLY  The supply of raw sugar to GSSH was restored in December 2012 under an Over-arching Toll Refining and del Credere Agency Agreement signed between Starafrica and the raw sugar supplier. This resulted in GSSH resuming sugar refining operations in December 2012. The Agreement continues in force and GSSH is performing its sugar refining operations although it faces stiff competition from lower priced imported sugar. The sugar industry has made submissions to Government with a view to countering the adverse impact of sugar imports.

 By Order Of The Board

 A J Musemburi Company Secretary 26 September 2013

www.starafricacorporation.com

VISUALCOM S/03297

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