Shumba Energy : CAUNTIONARY ANNOUNCEMENT

Suite 204

Grand Baie Business Quarters

Chemim Vingts Pied

Grand Bay, 30529

Republic of Mauritius

(A public company registered in the Republic of Mauritius - Company No. 111905 C1/GBL)

CAUNTIONARY ANNOUNCEMENT

TRADING STATEMENT - PUBLICATION OF THE UNAUDITED FINANCIALS STATEMENT FOR THE YEAR ENDED 30 JUNE 2023

The shareholders of Shumba Energy Ltd ("Shumba" or the "Group") are advised that the Group expects to shortly release unaudited results for the 12 months ended 30 June 2023, which will reflect a significant improvement in performance as compared to the corresponding period ended 30 June 2022. The group expects to report a loss for the period of around USD1m-USD1.2m as compared to a loss of USD2.2m in the prior year.

The improvement in performance is due to the following factors;

• In the prior year the group recognised the expenditure related to the Tati Solar project in the income statement as the project was commencing and did not meet the criteria for the expenditures to be capitalised. In the current year the group was able to capitalise the expenditures incurred in the development of the project.
• The group continues to streamline its operations, and this has resulted in further cost savings.

The expected loss for the 12 months ended 30 June 2023 will represent an improvement of approximately USD1m to USD1.2m, representing an improvement of approximately 45% to 55%, as compared to corresponding period of 30 June 2022.

The company been engaged in the protracted and difficult process of normalization of the company's financial, reporting, and compliance status after the severely damaging impact of the Pandemic up to and including the 2022 financial year ending June 30th, 2022.

Following acquisition of funding the company has managed to complete the 2021 and 2023 Audits and reporting, then obtaining consent from the BSE have completed the holding of a joint AGM for those 2 years together.

At the joint AGM held on the 4th August 2023, all resolutions were passed, and the Board obtained the necessary shareholder approval to proceed with the migration of the company back to Botswana and are now in the process of completing this process.

Having informed the BSE that we will publish unaudited results for 2023 by the end of September 2023, and will delay publishing the Audit 2023 results pending the completion of the migration process, we are now finalizing the obtaining of approvals from the Mauritius and Botswana to complete the migration.

By order of the Board

26th September 2023

This announcement is issued in accordance with section 5.4 of the Listing Requirements of the Botswana Stock Exchange ("BSE"), in which a listed entity is required to announce through the BSE any circumstances or events that may impact the financial results of the Company. In addition, companies must publish a cautionary announcement as soon as they are satisfied that a reasonable degree of certainty exists that the expected profit or loss (before tax) for the period to be reported upon next will differ by at least 10% to the corresponding comparative period.

The Board of Directors of the Company accepts full responsibility for the accuracy of the information contained in this announcement.