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June 18, 2013

New Malaria Crisis Presents Opportunity For Plandai

In a recent feature story published in The Atlantic in early June, an estimated one-third of all malaria drugs in some African countries may be counterfeit or sub-standard. In fact, the proliferation of fake malaria and other drugs on the continent may cause malaria to reach epidemic proportions in some areas already traditionally hit by the disease.  These events are a potential disaster for the hundreds of millions people living in areas at risk of malaria transmission in Africa and it could prompt a spike in the estimated 600,000 deaths from the disease this year occurring in the African Region.

However, this crisis may be aided by Plandai Biotechnology, Inc. (OTCQB – PLPL - $0.52 – Spec Buy) which has made great strides toward treating and preventing malaria. In a recent study, the Company's Phytofare™ Catechin Extract proved effective in killing the malaria parasite, plasmodium falciparum. In the study, the single and most dominant catechin - Epigallocatechin Gallate (EGCG) - was isolated from Plandai's Phytofare™ extract and its effectiveness compared in killing the P. falciparum parasite against a purified EGCG extract. The results, which are expected to be published soon, showed that the Phytofare™ extract killed the parasite and with a lower dosage than the purified EGCG extract.

This study involving Phytofare™ is the first to show the effectiveness of using a commercial botanical extract, rather than purified extract of EGCG catechin, as an anti-malarial.  

These results validate the Company’s decade-long research into the opportunity for using botanical extracts as a means to combat one of the world's great plagues.  Plandai is finalizing agreements to undertake further in vitro and animal studies to further validate the antimalarial drug target through greater synergistic activity of the complete Phytofare™ catechin complex containing the total eight catechins, rather than the single isolated Epigallocatechin Gallate (EGCG). 

Pending a successful outcome, the Company plans to immediately seek FDA approval to commence human clinical trials in 2014.  However, under the circumstances, it is possible that Plandai seeks to accelerate the process in order to assist in stemming the current crisis.

If the Company is successful in developing a treatment or preventive vehicle for malaria, it could be a very profitable and very swift game-changer for the Company given its South Africa plantation and botanical-based therapeutic and go a long way toward cost-effectively eliminating one of the world’s most severe health issues.  Plus, given the form and type of treatment, it is unlikely that counterfeit or false Plandai products would be produced, which would provide both a clinical and ethical benefit to those at risk.

For more information, refer to our previous PLPL Reports, Updates and Hot Topics by visiting www.GoldmanResearch.com

Senior Analyst: Robert Goldman
Rob Goldman has over 20 years of investment and company research experience as a senior research analyst and as a portfolio and mutual fund manager. During his tenure as a sell side analyst, Rob was a senior member of Piper Jaffray's Technology and Communications teams. Prior to joining Piper, Rob led Josephthal & Co.'s Washington-based Emerging Growth Research Group. In addition to his sell-side experience Rob served as Chief Investment Officer of a boutique investment management firm and Blue and White Investment Management, where he managed Small Cap Growth portfolios and The Blue and White Fund.

Analyst Certification
I, Robert Goldman, hereby certify that the view expressed in this research report accurately reflect my personal views about the subject securities and issuers. I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the recommendations or views expressed in this research report. 

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