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Camellia PLC

08 October 2020

8 October 2020

Camellia Plc (the "Company")

Update on allegations relating to African operations

As stated in January 2020 and most recently in the interim report in September, Camellia and a number of its subsidiary companies have been put on notice of claims relating to allegations against two companies in its African operations. One of these is Kakuzi Plc in which Camellia bought a controlling stake (50.7%) in the mid-1990s. Kakuzi Plc is quoted on the Nairobi Securities Exchange and is managed by its Board of Directors on behalf of its 1,300 mostly Kenyan shareholders.

Camellia takes any complaint of criminality, misconduct, illegality, or unethical behaviour against its operations very seriously. The allegations are of serious assault, harassment and sexual misconduct allegedly committed by certain individuals apparently employed by the two foreign operating companies. The allegations are being investigated by the two African companies but they are being hindered by UK lawyers Leigh Day's insistence on anonymity.

The two African companies have recognised alternative dispute resolution ("ADR") mechanisms locally so that any allegations are properly examined. If there has been any wrongdoing those responsible will be held to account, and if shortcomings are identified the companies will improve their safeguarding processes and victims will be compensated. Complainants can access independent legal advice, the costs of which will be borne by the operating companies, including if claims fail.

The cost of this ADR process will be expensed in 2020 and in the future and will be in addition to the GBP4.8m of legal and related costs incurred in 2019 and up to 30 June 2020 as previously disclosed.

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.

Enquiries

Camellia Plc 01622 746655

Tom Franks, CEO

Susan Walker, CFO

Panmure Gordon 020 7886 2500

Nominated Adviser and Broker

Emma Earl

Erik Anderson

Maitland/AMO

PR

William Clutterbuck 07785 292617

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October 08, 2020 12:15 ET (16:15 GMT)