W G WEARNE LIMITED - Financial effects of disposal and withdrawal of cautionary announcement

Financial effects of disposal and withdrawal of cautionary announcement

WG Wearne Limited
(Incorporated in the Republic of South Africa)
(Registration number 1994/005983/06)
JSE Share Code: WEA ISIN: ZAE000078002
(“Wearne” or “the company”)


FINANCIAL EFFECTS OF DISPOSAL OF 50% INTEREST IN WEARNE DRILLING & BLASTING
(PTY) LTD (“Wearne D&B”) AND WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT


 1.     FINANCIAL EFFECTS
        Shareholders are referred to the announcement dated 1 March 2013 (“the announcement”), where it was
        announced that Wearne entered into a Sale of Shares Agreement to sell its 50% interest in Wearne D&B,
        for R4.7 million (“the disposal”). The effective date of the disposal was 28 February 2013 and not 1 March
        2013 as stated into the announcement.
        Below are the financial effects of the disposal:

        The unaudited pro forma financial effects set out below are provided for illustrative purposes only to
        provide information about how the disposal may have impacted on Wearne's results and financial
        position. The pro forma financial effects have been prepared in accordance with International Financial
        Reporting Standards. Due to the nature of the unaudited pro forma financial information, it may not give a
        fair presentation of the company's results and financial position after the disposal. The unaudited pro
        forma financial effects are based on the unaudited financial information of Wearne for the six months
        ended 31 August 2012. The directors of Wearne are responsible for the preparation of the unaudited pro
        forma financial effects.

                                                               “Before the            “Pro forma After the
                                                                disposal”             disposal” unaudited
                                                                                                      (3)(4)
                                                                unaudited              31 August 2012
                                                             31 August 2012                                    Change

                                     (1)
       Earnings per share (cents)                                           -1.33                     -2.29    (72.18)%
                                             (1)
       Headline earnings per share (cents)                                  -1.28                     -1.52    (18.75)%
                                         (1)
       Net asset value per share (cents)                                    17.82                     17.10     (4.04)%
       Net tangible asset value per share
               (1)                                                          17.82                     17.10     (4.04)%
       (cents)
       Weighted average shares in issue („000)                           273 038                   273 038
       Number of shares in issue at period end
                                                                         273 038                   273 038
       („000)


      Notes:
           (1) For the purpose of calculating the earnings and headline earnings per share, it is assumed that the disposal
               was implemented on 1 March 2012 and for the purpose of calculating the net asset value and the net tangible
               asset value per share, it is assumed that the disposal was implemented on 31 August 2012.
           (2) The "Before the disposal" column has been extracted without adjustment, from the unaudited interim results
               of Wearne for the six months ended 31 August 2012.
           (3) The "After the disposal" net asset value and net tangible asset value per share have been adjusted to:
               - exclude the assets of Wearne D&B; and
               - reduce the inter company loan between Wearne and Wearne D&B by R4,7 million.
           (4) The "After the disposal" earnings and headline earnings per share have been adjusted to:
                - exclude the net profit of Wearne D&B; and
               - includes a loss on sale of interest in joint venture of R1,96 million.
2.    WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT

     Shareholders are advised that caution is no longer required to be exercised by shareholders when dealing
     in Wearne securities.


18 March 2013
Johannesburg


Designated Adviser
Exchange Sponsors

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