Investment Update Correction

Masawara plc ("Masawara")

Investment Update - BP and Shell Marketing Services (Private) Limited Correction

The following amendment has been made to the Investment Update announcement released on 25 March 2011 at 7:00am under RNS No. 6119D

The reference to the value of the property, plant and equipment held by BP Zimbabwe, Shell Zimbabwe and BPSMS and the total net assets at 31 December 2010 should be to an unaudited value and not audited as stated in the announcement.

All other details remain unchanged and the full amended text is shown below.

25 March 2011

Masawara plc ("Masawara")

Investment Update - BP and Shell Marketing Services (Private) Limited 

Further to the announcement on 12 October 2010, Masawara Plc (AIM:MASA) today announces the completion of the acquisition of 100% of BP Zimbabwe (Private) Limited ("BP Zimbabwe") and Shell Zimbabwe (Private) Limited ("Shell Zimbabwe"), which collectively own BP and Shell Marketing Services (Private) Limited ("BPSMS" or "the Company").

The consideration for the acquisition is US$30 million and is financed through a combination of $8.2 million of cash resources available to Masawara and third party debt funding arrangements.

As an investment company, Masawara is not intending to undertake operating activity. As such, the equity investment will be diluted through a combination of the following measures:

·; The introduction of financial and technical partners;

·; The introduction of an employee share ownership scheme; and

·; The implementation of other economic empowerment initiatives.

Following such dilution, Masawara will, however, retain a minimum equity interest of 51%. The introduction of financial and technical partners will allow for the repayment of a significant portion of the third party funding. 

BPSMS is a long established importer and distributor of petroleum products in Zimbabwe. It has the largest storage capacity and widest distribution network for petroleum products in Zimbabwe comprising, 70 retail sites and 10 depots across the country. As at 31 December 2010, the unaudited value of the property, plant and equipment held by BP Zimbabwe, Shell Zimbabwe and BPSMS was $48 million, with total net assets of $52 million.

In the twelve months to 31 December 2010, BPSMS generated revenue of $101 million and had unaudited EBITDA of $3.4 million. This performance was on the back of supply and funding constraints, which saw BPSMS losing significant market share, which is currently estimated at 16%, from historical levels in excess of 40%. The Directors of Masawara are confident that with the strategies that will be implemented, the business will experience substantial growth within the next twenty-four months.

It is proposed that the Company will be renamed and the retail assets will be rebranded over the next six months. Shingai Mutasa, Chief Executive commented:

"This is an exciting acquisition for Masawara. This is a business that has been very profitable in the past, and with adequate funding, will steadily grow again. BPSMS fits our strategy of investing in cash generative businesses with a clear growth potential."

About Masawara:

Masawara is an investment company focused on growth opportunities primarily in Zimbabwe and is listed on the AIM market of the London Stock Exchange. The Company is pursuing high quality new investment opportunities in Zimbabwe to add to a portfolio of existing investments.

For more information contact:

Masawara plc

Oliver Lutz/Rutendo Maziva +263 4 751805

Cenkos Securities plc (Nominated adviser and broker)

Nicholas Wells /Elizabeth Bowman +44 20 7397 8900