Disposal

M.P. EVANS GROUP PLC

("MP Evans" or "the Group")

SALE OF SHAREHOLDING IN THE NORTH AUSTRALIAN PASTORAL COMPANY PTY LIMITED ("NAPCo")

The board of MP Evans is pleased to announce that, earlier today, a conditional agreement was entered into with Queensland Investment Corporation ("QIC") regarding the sale to QIC of the Group's 34.37% stake in the Australian beef-cattle company, NAPCo. A price of A$18.50 per share has been agreed, which, the board believes, represents a fair price for the Group's minority holding, and compares with the Group's average purchase cost of A$8.44 per share some eleven years ago. This will result in a total gross consideration to MP Evans of approximately US$79 million at the current rate of exchange.

The transaction is subject to the satisfaction, within three months, of various statutory conditions, and to no material adverse change taking place. Settlement is scheduled to occur shortly after the satisfaction of all the conditions. QIC has additionally offered to purchase, on the same terms, all the remaining shares in NAPCo. The Foster family, who control some 61% of the shares, intend to accept the offer in relation to all of their shares. Taken together, the Foster family and MP Evans own more than 95% of NAPCo shares. The Foster family intend to roll over shares into the new ownership vehicle, such that they will retain an interest of approximately 20%.

The costs of professional advice relating to the transaction falling to the Group are expected to be in the order of US$1 million and tax is estimated to be some US$14 million, resulting in net disposal proceeds of some US$64 million. The Group carrying value of its investment in NAPCo is US$52 million, meaning that the profit after taxation of the disposal is estimated to be US$12 million.

The Group and predecessor companies have been investors in the agricultural sector of Australia for over forty years, focusing latterly on beef cattle through its ownership of both Woodlands and its NAPCo shareholding. Woodlands was sold in November 2015 and, notwithstanding the continuing bright prospects for the beef-cattle sector, the board has now decided to sell its remaining Australian investment and focus on the expansion of its core business, Indonesian palm oil.

It is accordingly planned that proceeds from the sale of the NAPCo shares will be applied towards the significant capital-investment programme scheduled in respect of the Group's existing unplanted areas of land in Indonesia as well as prospective investment in new sustainable land, ideally located close to the Group's existing oil-palm operations. A number of potential projects are currently under review in this regard.

In addition, subject to completion of the transaction, the board will give consideration to the payment of a special dividend of 5 pence per share, details of which will be announced once completion has taken place.

Commenting on the transaction, MP Evans chairman, Peter Hadsley-Chaplin, said 'The decision to sell the Group's share of NAPCo represents an important transition for the Group. NAPCo is an excellent company, with first-class management and staff, and has provided significant capital growth in the last decade or more. However, the Group's focus has increasingly been on Indonesian palm oil, which has consistently delivered profitable growth, and proceeds from the sale will enable the Group to achieve greater economies of scale. The board continues to believe that the long-term prospects for Indonesian palm oil remain favourable'.

6 May 2016

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