Afarak Group — AGM Information 2018

Sep 7, 2018

STATEMENT BY AFARAK GROUP

STATEMENT BY AFARAK GROUP

16:45 London, 18:45 Helsinki, 07 September 2018 - Afarak Group Plc ("Afarak" or "the Company") (LSE: AFRK, NASDAQ: AFAGR)

STATEMENT BY AFARAK GROUP

In the Annual General Meeting held on May 29, 2018 one matter on the agenda was a request for a special audit. According to the proposal by the minority shareholders, the special audit should focus on operations of Afarak and its administration, and the legality of the operations should be clarified in the special audit, especially regarding and considering transactions made with the main shareholder, his controlled corporations and other parties and persons closely associated with him.

As the ownership of the minority shareholders proposing the special audit exceeded 10%, the proposal was included in the meeting minutes. According to the Companies Act, a shareholder may apply for a special audit from the Regional State Administrative Agency of the company's domicile. The application must be done within one month after the AGM.

The minority shareholders delivered their application for the special audit to the Regional State Administrative Agency for Southern Finland in June.

The company wishes to inform all shareholders that it has provided a reply to the application to the Regional State Administrative Agency For Southern Finland.

The company’s reply rejects the necessity to conduct a special audit. The company has provided answers to all questions raised and delivered supporting documentation in order to invalidate all the accusations that were raised by the applicants.

If the special audit is carried out according to the application, it will bring extensive additional costs to the Company, ultimately paid by all the shareholders. For the sake of clarity, Afarak underlines once more the importance of good governance that we attribute to the conduct of our businesses around the world.

AFARAK GROUP PLC

Guy Konsbruck

CEO

For additional information, please contact:

Afarak Group Plc

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

Jean Paul Fabri, +356 2122 1566, jp.fabri@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