SALUNGANO GROUP LIMITED - Renewal of Keaton Mining Cautionary and Creditors' Approval of Compromise Proposal

Renewal of Keaton Mining Cautionary and Creditors' Approval of Compromise Proposal

SALUNGANO GROUP LIMITED
Incorporated in the Republic of South Africa
(Registration number 2005/006913/06)
Share code: SLG  ISIN: ZAE000306890
("Salungano Group" or "the Company")


RENEWAL OF KEATON MINING CAUTIONARY AND CREDITORS' APPROVAL OF
COMPROMISE PROPOSAL


Shareholders are referred to the further cautionary announcement released on SENS on 27 February 2024
regarding the application to place Keaton Mining Proprietary Limited ("Keaton Mining"), a wholly-owned
subsidiary of the Company's wholly-owned subsidiary, Keaton Energy Holdings Limited ("Keaton Energy
Holdings") under supervision and to commence business rescue proceedings ("Business Rescue
Application") ("Keaton Mining Cautionary"), and the subsequent renewals thereof, the last of which was
dated 23 July 2024.

Shareholders are hereby advised that:

-   a hearing date for the application for leave to appeal against the judgment in terms of which the Business
    Rescue Application had been dismissed, is still being awaited;

-   at the liquidation hearing held on 22 August 2024 relating to the provisional liquidation order obtained by
    one of Keaton Mining's creditors, the matter was postponed to 11 October 2024;

-   a creditors' compromise proposal in terms of section 155 ("section 155 compromise proposal") of the
    Companies Act, 2008 (Act 71 of 2008), as amended ("Companies Act") was presented to concurrent,
    secured and preferent creditors at respective meetings held on 22 August 2024. The section 155
    compromise proposal was adopted by creditors representing 100% in value of each of the aforementioned
    classes of creditors;

-   as the section 155 compromise proposal has been adopted as contemplated in section 155(6) of the
    Companies Act, the provisional liquidators of Keaton Mining will continue to apply to court for an order
    sanctioning such adopted proposal; and

-   it is anticipated that the compromise so sanctioned will serve to uplift the provisional liquidation status of
    Keaton Mining. Shareholders will be further informed on this matter in subsequent SENS announcements.

As the appeal relating to the dismissal of the Business Rescue Application, the aforementioned provisional
liquidation process and the section 155 compromise proposal (which proposal is awaiting sanctioning by the
court), may have a material effect on the price of Salungano Group's securities, shareholders are advised to
continue to exercise caution when dealing in the Company's securities until further announcements are made.

Johannesburg
26 August 2024

Sponsor
Merchantec Capital

Date: 26-08-2024 05:19:00
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