AFEX Commodities Exchange CMC Meeting Report and Price Trends Summary

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Report provides a detailed overview of AFEX Commodities Exchange CMC meeting, transaction volumes, traded commodities, price trends, and opportunities for investment in 2017. It also outlines the deployment of the Nasdaq OMX trading system and upcoming milestones. The report highlights the development of commodity indices and the next steps in managing various commodities efficiently.

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AFEX Commodities Exchange CMC Meeting Report Private and confidential 1

2017: Year to Date Summary Volume of Transaction ( 000 MT) Number of Transactions 27.94 4,605 13.44 1,032 1,017 908 4.51 671 2.89 2.78 2.56 370 359 248 1.46 0.30 JAN FEB MAR APR MAY JUN JUL TOTAL JAN FEB MAR APR MAY JUN JUL TOTAL Disaggregation Of Traded Commodities Total Volume on E-Warehouse Receipt Soybeans 0.11% 13,970.68 Yellow Maize 2.43% 12,528.97 Paddy Rice 0.10% 9,214.33 Ginger 5.84% 5,023.70 5,023.70 3,179.00 1,281.07 JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY White Maize 91.52% Total Volume on E-Warehouse receipt 2

Price Trends & Opportunities for Investment 180,000.00 160,000.00 140,000.00 120,000.00 100,000.00 80,000.00 60,000.00 60,000.00 60,000.00 51,000.00 40,000.00 35,000.00 35,000.00 20,000.00 10,000.00 10,000.00 - January February March April May June July Max Price Min Price Spread It is off importance to study the spread in the price positions as highlighted in structured trade presented by AFEX. The Commodity Indices presently in development by AFEX along with other sector professionals will provide robust information which will attract more investment for the sector development. 3

Nasdaq OMX Trading System In June 2017, AFEX Completed the deployment of the Nasdaq trading system. User Acceptance Testing is currently ongoing as well as the design of the market structure. We hope to go live in 2017 Q4 We have developed trade-able securities and contracts to match the Nigerian environment and its dynamics, with the realities of the physicals markets adapted to meet the needs of the developing commodities and financial sector. 4

NASDAQ Go-live timeline Milestone 8 Q4 Milestone 1 Aug 10 Milestone 5 Sep 1 Milestone 7 Sep 29 Milestone 2 Aug 14 Milestone 3 Aug 18 Milestone 4 Aug 23 September October 2017, Q4 August In-house Training Thursday 10/08/17 Monday 14/08/17 Monday 14/08/17 Friday 25/08/17 UAT: Brokers UAT: Regulators Wednesday 23/08/17 Monday 21/08/17 Thursday 24/08/17 Friday 01/09/17 UAT: Off-takers Friday 29/09/17 Members Registration Monday 04/09/17 Go Live 2017, Q4 5 Progress Go Live Not Started

Next Steps Commodity Indices M: 30,000MT G:4,000Mt PR: 15,000MT The ability to efficiently manage a minimum annual volume 50,000Mt 20,000Mt rice, 20,000Mt soybean and 4,000Mt of Ginger. of Sokoto of of maize, Paddy Katsina Paddy Rice Jigawa Zamfara Yobe Maize, Ginger Borno of Kano Kebbi Gombe Bauchi Kaduna Kaduna Maize, Paddy Rice, Soybean Niger Adamwara Plateau With key consultants we have development of the first Maize index due for launch by 4th Qtr 2017. Indices Soybean and paddy to be deployed from 2nd Qtr. 2018. Plateau Kwara Fct begun Oyo Nassarawa Taraba Ekiti Kogi Osun Benue Soybean Ondo Ogun Enugu Lagos Edo Ebonyi for Anambra M: 15,000 PR:5,000 SB:5,000 Cross River Abia Imo Delta Akwalbom Bayelsa Rivers SB:15,000 6