TRANS HEX GROUP LIMITED - Trading Statement

Trading Statement

TRANS HEX GROUP LIMITED
Incorporated in the Republic of South Africa
Registration number (1963/007579/06)
Share code: TSX
ISIN: ZAE000018552
("Trans Hex" or “the Company” or “the Group”)

TRADING STATEMENT

Trans Hex is currently finalizing its results for the six months
ended 30 September 2013 (“the period”), which should be released on
SENS on or about 1 November 2013.

The Group expects to report a net loss for the period of R53,9
million compared to net profit of R32,9 million in the corresponding
reporting period in 2012, primarily as a result of grade under-
performance at the Group’s South African operations and the effects
of a 21-day strike over pay increases by members of the National
Union of Mineworkers.

The loss after tax from continuing operations is expected to be R69,0
million, against profit of R24,9 million in September 2012.

The Group is expecting to report a loss per share of 51,0 cents
(September 2012: earnings of 31,6 cents) and headline loss per share
of 51,0 cents (September 2012: headline earnings of 21,5 cents).

Net asset value per share is expected to be 450,0 cents (September
2012: 466,0 cents).

COMMENTS
The following salient points will be fully reported upon when the
Group releases its results:

  - South African production amounted to 21,849 carats (September
    2012: 35,865 carats).
  - Sales revenue decreased by 21.5% in Rand terms, from R330,7
    million in September 2012 to R259,7 million.
  - South African operations generated a loss before tax of R88,6
    million for the period, compared to profit of R34,2 million in
    the corresponding reporting period in 2012.
  - Production at Somiluana in Angola amounted to 35,779 carats
    during the period (September 2012: 22,600 carats). The operating
    margin was 35%, compared to -11% in September 2012.
  - Somiluana sales totalled US$16,9 million (September 2012: US$7,9
    million) and the mine generated a net profit of US$5,9 million
    for the period, compared to a loss of US$0,9 million in the
    first six months of the previous financial year.
  - Net cash utilized during the period was R88,8 million (September
    2012: net cash generated R4,3 million) resulting in the Group’s
    net cash position at the end of the period being R294,6 million
    (September 2012: R351,7 million).

The financial information on which this trading statement is based
has not been reviewed and reported on by the Company’s auditors.
Cape Town
28 October 2013

Sponsor
Sasfin Capital (a division of Sasfin Bank Limited)

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