AFARAK GROUP: SOUTH AFRICA BUSINESS RESCUE

14:00 London, 16:00 Helsinki, 8 May 2020 - Afarak Group Plc ("Afarak" or "the Company") (LSE: AFRK, NASDAQ: AFAGR)

SOUTH AFRICA BUSINESS RESCUE

Stock Exchange Release

On March 27 2020, South Africa began a first 21-day nation-wide Government-imposed lockdown aimed at slowing the coronavirus pandemic across the Country, this initial lockdown was than further extended being now at phase 4.

During the extension of the lockdown, most businesses remain fully shut and it is not possible to export goods outside of the Country.

The consequent stagnation in the economic activities, which has permeated the world economy as well, has completed the scenario on the already persistent global recession.

This situation is, unfortunately, likely to continue hitting the market and the global economy in the coming weeks and months.  

As a consequence of the imposed restrictions and the relevant economic impacts Afarak informs its shareholders that, based on Chapter 6 of the South African Companies Act which allows financially distressed South African companies an opportunity to reorganize and restructure their financial affairs, to voluntary file Afarak Mogale and Afarak South Africa for a business rescue process.

The company is confident that it can get out of the business rescue in a reasonably short period of time, as the world market prices have recently improved and the cost of production is positively affected by the weakening of the ZAR/USD exchange rate.

Helsinki, May 8, 2020

AFARAK GROUP PLC

Board of Directors

For additional information, please contact:

Afarak Group Plc

Guy Konsbruck, CEO, +356 2122 1566, guy.konsbruck@afarak.com

Financial reports and other investor information are available on the Company's website: www.afarak.com.

Afarak Group is a specialist alloy producer focused on delivering sustainable growth with a Speciality Alloys business in southern Europe and a FerroAlloys business in South Africa. The Company is listed on NASDAQ Helsinki (AFAGR) and the Main Market of the London Stock Exchange (AFRK).

Distribution:
NASDAQ Helsinki
London Stock Exchange
Main media

www.afarak.com