Withdrawal of Cautionary Announcement

Further to the last cautionary announcement dated 04 March 2014 and first issued on 24 December 2013 and in compliance with the provisions of the Securities (Registration of Securities) Rules, 1993 of the Securities Act, Cap 354 of the Laws of Zambia (“Securities Act”) and the Listing Rules of the Lusaka Stock Exchange (“LuSE”), it is hereby announced that Zambian Energy Corporation (Ireland) Limited (“ZECI”), the majority shareholder of CEC has implemented its internal reorganisation in the ultimate shareholding of ZECI.

1. CEC is majority owned by Zambian Energy Corporation (Ireland) Limited (ZECI) which holds 52% shareholding whilst the balance of 48% is held by various institutional and retail investors. ZECI is wholly owned by Zambian Energy Corporation Limited (“ZECL”), a Zambian private limited company.
2. ZECL and its shareholders have undertaken an internal reorganization involving changes in its ownership but no changes in the level of ZECI’s 52% ownership of CEC shares.
3. As part of the internal reorganisation of ZECL, Batoka Energy Holdings (Ireland) Limited (“Batoka Ireland”) acquired 40% of ZECL, which was held by the minority shareholders of ZECL (the “ZECL Minority Shareholders”).
4. The Securities and Exchange Commission of Zambia (“SEC”) has formally advised that the internal reorganisation of ZECL stated under section 3.0 above, results in an obligation on Batoka Ireland to make a mandatory offer to CEC shareholders under the Securities (Takeovers and Mergers) Rules, 1993 of the Securities Act.
5. Accordingly, Batoka Ireland has announced that it is making a mandatory offer, as directed by the SEC, to acquire, from the minority shareholders of the Company, the shares in CEC not owned by ZECI, pursuant to Rule 56 of the Securities (Takeovers and Mergers) Rules, 1993 of the Securities Act.
   For further details, shareholders are referred to the Announcement of the Terms of the Mandatory Offer issued by Batoka Ireland on 11 April 2014.

Accordingly, shareholders are referred to the cautionary announcement last issued on 04 March 2014 and are advised that following the announcement by Batoka Ireland on the mandatory offer to CEC shareholders, caution is no longer required to be exercised by shareholders when dealing in their securities and the cautionary announcements in force since 24 December 2013 are hereby withdrawn.

Date: 11 April 2014
Sponsoring Broker

STOCKBROKERS ZAMBIA LIMITED
[MEMBER OF THE LuSE and REGULATED BY THE SECURITIES AND EXCHANGE COMMISSION OF ZAMBIA]