AF LEGAL GROUP LTD — M&A Activity 2021

Apr 28, 2021

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29 April 2021

Market Announcements Office Australian Securities Exchange Level 5, 20 Bridge Street Sydney NSW 2000

Update on Watts McCray Acquisition

The board of AF Legal Group Ltd ( ASX: AFL ) ( Company or AFL ) is pleased to announce that it has today signed the formal documentation, the sale and purchase agreement ( SPA ), to acquire 100% of the shares of Watts McCray (NSW) Pty Ltd ( Watts McCray ) ( Proposed Transaction ).

The Company has now also completed its due diligence and is working with Watts McCray to satisfy the remaining conditions set out in the SPA. The parties are now targeting to complete the transaction no later than June 2021. The Proposed Transaction is subject to a number of conditions precedent including but not limited to:

• no material adverse changes occurring in relation to the financial position of Watts McCray in the period up until completion;

• all related party loans to which Watts McCray is a party are repaid in full;

• Watts McCray obtaining consents to the change of control under any leases in respect of their business premises; and

• the debt facilities of Watts McCray being either discharged in full or assigned to the Company (as the case may be).

The board can confirm that the transaction will be materially earnings accretive for the Company and an investor presentation with further information will be provided at the completion of the transaction.

The Company will advise the market once completion occurs.

The board of AFL has approved this announcement.

For any questions, please contact the undersigned on +61 2 8272 1400.

Yours faithfully

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Maggie Niewidok Company Secretary