Update on Disposal of Sinazongwe Farm

13 March 2020

Zambeef Products plc

("Zambeef" or the "Group")

Update on Disposal of Sinazongwe Farm

Further to the Company's announcement of 17 September 2019, Zambeef (AIM: ZAM), the fully integrated cold chain food processing and retailing group with operations in Zambia, Nigeria and Ghana, announces that it has entered into an Addendum Agreement extending the Completion/Long-Stop date for the Sinazongwe Farm disposal (the "Transaction") from 15 March 2020 to 7 April 2020 (the "Extension"). It is the Company's expectation though that the Transaction will complete in advance of the Extension.

The Extension is principally due to a delay in satisfying certain of the Conditions Precedent (CPs), which are beyond Zambeef's control, relating to Properties/Farm security re-structuring (see below). The CPs yet to be satisfied include:

1) Discharge the Deg-Deutsche Investtitions-Und Entwicklungsgesellschaft Mbh mortgages ("DEG Mortgages") over the Properties/Farm;

2) Sub-division of the Feedlot and Abattoir (c.20 Ha) from the R/E of F4906; and

3) Obtaining state consent to assign the properties.

As a result of this delay of the above CPs, we have also agreed with Chenguang that CP number

2 above (sub-division of the Feedlot and Abattoir) shall now become a Condition Subsequent,

which shall be fulfilled on or before 29 May 2020 or such other date as may be mutually

agreed in writing by the parties.

All other CPs as set out in the Sale and Purchase Agreement announced on 17 September 2019 have been satisfied.

As previously announced, the disposal of Sinazongwe Farm is a manifestation of the Group's stated strategy to focus on its core business of producing and retailing cold chain meat and dairy products and stockfeed. The net sale proceeds will largely be used to pay down the Group's debt and thus reduce gearing and interest costs.

Notes to the editors

The Zambeef Group is one of the largest integrated cold chain food producers in Zambia, involved in the production, processing, distribution and retailing of beef, chicken, pork, milk, eggs, dairy products, fish, flour and stock feed. The Group also has large cereal row cropping operations (principally maize, soya beans and wheat), with approximately 7,973 hectares of row crops under irrigation, which are planted twice a year and a further 8,776 hectares of rain-fed/dry-land crops available for planting each year.

Chenguang Biotech (Zambia) Agri-Dev Limited is a subsidiary of the Chenguang Biotech Group Co. Limited based in China ("CCGB"). CCGB is a listed company on the Shenzhen stock exchange with 22 subsidiary companies. The Chenguang Group is one of the worlds leading producers and suppliers of natural plant extraction for paprika oleoresin, capsicum oleoresin and marigold oleoresin. The Chenguang Group also manufactures natural pigments, natural spice extracts, essential oils, natural nutrient and medicinal extracts and protein.

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement via Regulatory Information Service, this inside information is now considered to be in the public domain.

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