Additional Information in relation to the Starbucks Disposal and Withdrawal of Cautionary Announcement TASTE HOLDINGS LIMITED (Incorporated in the Republic of South Africa) (Registration number: 2000/002239/06) Share code: TAS ISIN: ZAE000081162 (“Taste” or “the Company”) ADDITIONAL INFORMATION IN RELATION TO THE STARBUCKS DISPOSAL AND WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT 1. INTRODUCTION 1.1. Shareholders are referred to the Company’s SENS announcement of 1 November 2019 (“Announcement”), regarding the conclusion of an agreement on 31 October 2019 (“Agreement”), by the Company, through its wholly-owned subsidiary Taste Food Franchising Proprietary Limited (“Taste Food”) with Rand Capital Coffee (South Africa) Proprietary Limited (formerly “K2019548958”) (“Purchaser”), a related party of the Company, in terms of which the Company agreed to dispose of its Starbucks franchise business in South Africa (“Starbucks Business”) as a going concern to the Purchaser (“Disposal”). 1.2. In the Announcement, shareholders were advised to exercise caution when dealing in the Company’s securities until a further announcement regarding the fairness opinion to be obtained by the Company from an independent expert in relation the Disposal and the financial information relating to the Disposal had been published. The procurement of the fairness opinion was also a condition to the Disposal. 1.3. The Company has obtained a fairness opinion from an independent expert, Bridge Capital Advisors, in relation to the Disposal and has set out the financial information relating to the Disposal in this announcement. 2. FAIRNESS OPINION 2.1. The Company has obtained a fairness opinion from an independent expert, Bridge Capital Advisors, acceptable to the JSE, confirming that the terms of the Disposal are fair as far as the shareholders of the Company are concerned (“Fairness Opinion”). 2.2. The Fairness Opinion has been made available for inspection at the Company’s registered office, from the date of this announcement to 30 December 2019. 3. FINANCIAL INFORMATION 3.1. Shareholders should note that the financial information set out below is historic and does not factor in the following: 3.1.1. the lease obligations of approximately R43.9 million for the 12 stores currently in operation; 3.1.2. the future capital obligations pursuant to the license agreement with Starbucks, estimated to be R350 million, in order to meet the minimum store build obligations; and 3.1.3. the capital required to fund the Starbucks Business’ on-going and deteriorating operating losses. 3.2. The audited loss after tax attributable to the Starbucks Business for the period ended 28 February 2019, was R25.6 million, based on the audited annual financial statements of Taste for the year ending 28 February 2019, which were prepared in terms of IFRS. 3.3. The value of the net assets comprising the Starbucks Business as at 28 February 2019, being the date of the last audited annual financial statements of Taste, was R64.1 million. The majority of the aforementioned net assets consists of Starbucks proprietary shop fittings and equipment. 4. CONDITIONS PRECEDENT Shareholders are reminded that the Disposal remains subject to the fulfilment of certain conditions precedent set out in the Agreement. 5. WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT As the Fairness Opinion has now been completed and the financial information relating to the Disposal have been published, shareholders are advised that caution is no longer required to be exercised by shareholders when dealing in the Company’s securities. Johannesburg 29 November 2019 Sponsor PSG Capital Date: 29-11-2019 01:12:00 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.