Further announcement regarding delay in publication of financial results for the year ended 30 June 2018 Choppies Enterprises Limited (Registration number 2004/1681) JSE share code: CHP BSE share code: CHOPPIES ISIN: BW0000001072 Tax reference number: C08710401018 (“Choppies” or the “Company”) FURTHER ANNOUNCEMENT REGARDING DELAY IN PUBLICATION OF FINANCIAL RESULTS FOR THE YEAR ENDED 30 JUNE 2018, TRADING STATEMENT AND CAUTIONARY ANNOUNCEMENT Shareholders are referred to the announcement released on Friday, 21 September 2018 and are advised further as follows: Delay in Publication of Audited Financial Statements for the Year ended 30 June 2018 In order to provide further clarity to shareholders on this matter, the Company advises that, in relation to the current audit for the year ended 30 June 2018: - The Company appointed new external auditors PricewaterhouseCoopers (PwC) on 31 January 2018 and consequently the Board and the auditors have been reassessing a number of past accounting practices and policies. The reassessments currently being undertaken relate to historical purchase price allocations on business acquisitions, depreciation and amortization accounting, valuation of inventory and impairment assessments of property, plant and equipment, intangible assets and deferred tax assets. Such reassessments are ongoing, complex by nature and require careful analysis in order to determine the impact on prior and current periods. - The Board and the Company’s auditors identified a number of matters relating to the current and earlier financial periods, which require independent verification and expert legal analysis and advice before the impact thereof on accounting recognition, measurement and disclosures (if any) can be determined. Certain transactions and business relationships hitherto were not made fully apparent and were therefore not sufficiently considered in preparation of historical annual financial statements. These include: - certain business acquisition transactions undertaken by the South African subsidiary during the 2017 and 2018 financial years. - ramifications of the well-publicised shareholder dispute in Zimbabwe. Already the actions of a Zimbabwe domiciled director of the Group’s Zimbabwean investee company is the subject of a police investigation for alleged theft. While these independent verifications and expert legal analyses have been initiated, their completion date and outcomes cannot be determined with any reasonable certainty at this stage, impacting the finalization of the Company’s audited financial results for the year ended 30 June 2018. The Company is therefore unable to determine when it will be in a position to publish audited financial results for the year ended 30 June 2018. The board is reviewing these matters, meeting regularly with PwC and other advisers and will continue to provide the shareholders with updates as these matters are progressed. Trading Statement The decrease in profitability referenced in the announcement of 21 September 2018 results primarily from a combination of adverse trading conditions in South Africa, Mozambique and East Africa and a material year-on-year increase in inventory losses identified through improved stock count procedures employed during the last quarter of the financial year. The final results for the current financial year may be further impacted by possible restatements on prior periods and accounting for transactions still being verified. As set out above, the Group is not in a position to make any reasonable estimate of the impact of these matters (if any), until the necessary verifications, analyses and assessments are completed. Cautionary Announcement Given the matters referred to in this and the announcement of 21 September 2018, the Company advises shareholders to exercise caution in the trading of the Company’s securities until a further announcement is made. 27 September 2018 BSE Sponsoring Broker African Alliance Botswana Limited JSE Sponsor RAND MERCHANT BANK (A division of FirstRand Bank Limited) Date: 27/09/2018 01:16:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.