Acquisition of Thatswana Co. Update and Withdrawal of Cautionary Announcement Bauba Resources Limited Incorporated in the Republic of South Africa (Registration number 1986/004649/06) Share code: BAU ISIN: ZAE000145686 (“Bauba” or "the Company") ACQUISITION OF THATSWANA CO. UPDATE AND WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT 1. INTRODUCTION Shareholders are referred to the announcement dated 23 July 2019 (“Announcement”) (and using the terms defined therein unless otherwise stated), and the subsequent renewal of cautionary announcement dated 4 September 2019, and are hereby provided with an update thereto. 2. UPDATE TO THE ACQUISITION 2.1. Due Diligence Investigation Shareholders are advised that the Due Diligence Investigation in respect the business and assets of Thatswana Co. has been completed and Bauba has confirmed to the Seller that it is satisfied with the outcome thereof and wishes to proceed with the Acquisition. 2.2. Financial Information The value of the net assets that are the subject of the Acquisition as at 30 June 2019 was (R5 904 026), and the loss attributable to the net assets that are the subject of the Acquisition for the year ended 30 June 2019 was R490 460. The aforementioned unaudited financial information has been derived from unaudited annual financial statements. Bauba is satisfied with the quality of such financial statements. The financial statements were prepared in accordance with International Financial Reporting Standards for Small and Medium-sized Entities and the Companies Act, 2008 (Act 71 of 2008), as amended. 2.3. Initial Conditions All Initial Conditions to the Acquisition have been fulfilled. 3. WITHDRAWAL OF CAUTIONARY Further to the cautionary announcement dated 23 July 2019 and the subsequent renewal of cautionary announcement dated 4 September 2019, shareholders are advised that as a result of the information contained in this announcement, caution is no longer required to be exercised when dealing in the Company’s securities. Johannesburg 17 October 2019 Sponsor Merchantec Capital Date: 17/10/2019 05:08:00 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.