Turpaz Industries Ltd.

Legal Proceedings Report • Jan 31, 2022

This is an English translation of a Hebrew immediate report that was published on January 31, 2022 (reference no.: 2022-01-012264) (hereafter: the "Hebrew Version"). This English version is only for convenience purposes. This is not an official translation and has no binding force. Whilst reasonable care and skill have been exercised in the preparation hereof, no translation can ever perfectly reflect the Hebrew Version. In the event of any discrepancy between the Hebrew Version and this translation, the Hebrew Version shall prevail.

Turpaz Industries Ltd. (the "Company")

Company number: 514574524 Address: Halahav 2 Holon Tel: 03-5560913; Fax: 03-5560915

January 31, 2022

To: To: Reported Via Magna Reported Via Magna

Israel Securities Authority ("ISA") Tel Aviv Stock Exchange Ltd. ("TASE")

Re: Signing on Agreement with the Landlord of the Factory in Beit Kama

Following the immediate reports issued by the Company on November 24 and 25, 2021 (reference numbers: 2021-01-101803 and 2021-01-171057, respectively), regarding a fire in the spice factory of SDA Spice Cooperative Association ("SDA"), a company wholly owned by the Company, in Beit Kama, the Company is honored to update that on January 31, 2022, it entered into an agreement with the landlord, who owns the factory buildings burned in Beit Kama, according to which the owner will transfer to SDA the full rights to receive insurance benefits in respect of the owner's share in the fire damage ("purchased insurance rights"), in exchange for the sum of NIS 47 million ("the consideration").

Following the signing of the agreement and the said payment, SDA alone will be entitled to receive all insurance benefits for the damages caused by the fire to buildings, equipment, inventories and for loss of profits. The purpose of the transaction is to promote, accelerate and streamline contacts with the insurer regarding the payment of insurance benefits due to the fire.

The consideration will be paid at the end of 12 months from the date of the agreement or at the date of receipt of the insurance benefits, whichever is earlier. The consideration is final and is not conditional on the receipt of insurance benefits for the purchased insurance rights.

The agreement also includes an agreement to bring forward the termination date of the lease, to November 24, 2022.

The Company is not able to assess at this stage the timing of receiving the insurance benefits from the insurer, but it estimates that it does not expect cash flow difficulties due to the fire or the agreement.

The Company's management continues to work to transfer production to its other factories and to purchase raw materials quickly in order to minimize harm to its customers, sales and continue regular operations.

The Company's assessment regarding the receipt of insurance benefits, their scope and timing of receipt, and the non-impact of the fire on its sales volume and cash flows is forward-looking information as defined in the Securities Law, 5728-1968, whose realization depends, among other things, on factors beyond the Company's control. These assessments may not materialize, in whole or in part, or materialize differently from what the Company has estimated.

Respectfully,

Turpaz Industries Ltd.

By: Karen Cohen Khazon, CEO and Chairperson.