Restatement of previously reported financial results Withdrawal of cautionary Renewal of cautionary MINE RESTORATION INVESTMENTS LIMITED (formerly Capricorn Investment Holdings Limited) (Registration Number 1987/004821/06) ("MRI" or "the Company") Share code: MRI ISIN: ZAE000149951 RESTATEMENT OF PREVIOUSLY REPORTED FINANCIAL RESULTS (“RESTATEMENT”), WITHDRAWAL OF CAUTIONARY WITH REGARD TO THE RESTATEMENT AND RENEWAL OF CAUTIONARY WITH REGARD TO THE CONVERSION OF DEBT INTRODUCTION Shareholders were advised in the cautionary announcement published on SENS on 20 March 2014 (“Cautionary Announcement”), that the Company?s annual financial statements for the 14 months ended 28 February 2013 (“2013 AFS”) and the interim results for the period ended 31 August 2013 (“August 2013 Interims”) were misstated. The misstatement of the 2013 AFS and August 2013 Interims were identified following the JSE Limited?s (“JSE”) pro-active monitoring process whereby the 2013 AFS were selected for review by the JSE (“Pro-active Monitoring”). RESTATEMENT 1.Background During the financial period ended 28 February 2013, MRI was, from an International Financial Reporting Standards (“IFRS”) perspective, acquired by Western Utilities Corporation (Pty) Limited (“WUC”) by way of a reverse-acquisition in terms of IFRS 3 Business Combinations. MRI was regarded as the legal parent and the accounting acquiree and WUC was regarded as the legal subsidiary company and the accounting acquirer, which resulted in the identifiable assets and liabilities of MRI being measured at their fair-value. The misstatement occurred as a result of incorrectly applying the requirements of IFRS 3 in the reverse acquisition, as well as errors made in the calculations relating to the transaction itself. The revised computation of the purchase price and the treatment of the loan accounts payable added further to the computation of the correcting reverse acquisition entries. 2. Basis of preparation of the Restatement The restated financial information regarding the 2013 AFS and August 2013 Interims has been prepared by Anthon Meyer in his capacity as Financial Director, in accordance with IFRS and the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee. The accounting policies applied in arriving at the restated financial results are consistent, in all material respects, with those applied in the 2013 AFS and August 2013 Interims. 3. Restated 2013 AFS and August 2013 Interims CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 6-months Restatement Restated 14- Restatement Restated to Adjustments 6-months months Adjustments 14-months August to to 28 to 2013 August February February 2013 2013 2013 R’000 R’000 R’000 R’000 R’000 R’000 Other income - - - 20 021 (14 043) 5 978 Operating expenses (4 093) (4 093) (9 048) - (9 048) Operating (loss)/profit (4 093) - (4 093) 10 973 - (3 070) Investment revenue 5 - 5 177 - 177 Interest expense (2 707) - (2 707) (4 908) - (4 908) (Loss)/Profit before taxation (6 795) - (6 795) 6 242 - (7 801) Taxation 1 550 - 1 550 (11 415) - (11 415) (Loss)/Profit for the period (5 245) - (5 245) (5 173) - (19 216) Other comprehensive income - - - - - - Total comprehensive (loss)/income (5 245) - (5 245) (5 173) - (19 216) (Loss)/Profit attributable to: - Equity holders (4 283) - (4 283) (5 095) - (19 138) Non-controlling interests (962) - (962) (78) - (78) Total comprehensive (loss)/income attributable to: Equity holders (4 283) - (4 283) (5 095) - (19 138) Non-controlling interests (962) - (962) (78) - (78) Basic and diluted (loss)/earnings per share (0.91) - (0.91) (1.74) (4.82) (6.55) Basic and diluted headline (loss)/earnings per share (0.91) - (0.91) (6.55) - (6.55) Weighted average number of shares („000) 468 413 - 468 413 292 106 - 292 106 CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION 31 Restatement Restated 14- Restatement Restated August Adjustments 6-months months Adjustments 14-months 2013 to to 28 to August February February 2013 2013 2013 R’000 R’000 R’000 R’000 R’000 R’000 Assets Non-Current Assets Property, plant and equipment 14 404 - 14 404 10 798 - 10 798 Intangible assets 91 284 - 91 284 92 411 - 92 411 Goodwill - 9 123 9 123 - 9 123 9 123 Deferred tax 1 550 - 1 550 7 173 - 7 173 107 238 9 123 116 361 110 382 9 123 119 505 Current Assets Trade and other receivables 521 - 521 610 - 610 Cash and cash equivalents 3 270 - 3 270 314 - 314 3 791 - 3 791 924 - 924 Total Assets 111 029 9 123 120 152 111 306 9 123 120 429 Equity and Liabilities Equity Share capital and share premium 79 961 (15 695) 64 266 76 999 (15 695) 61 304 Reverse acquisition reserve (31 066) 31 066 - (31 066) 31 066 - Retained earnings (10 330) (6 248) (16 578) (6 047) (6 248) (12 295) Amount attributable to equity holders 38 565 9 123 47 688 39 886 9 123 49 009 Equity loan 5 000 - 5 000 5 000 - 5 000 Non-Controlling Interest 16 390 - 16 390 17 352 - 17 352 59 955 9 123 69 078 62 238 9 123 71 361 Liabilities Non-Current Liabilities Deferred tax 18 464 - 18 464 25 626 - 25 626 Other financial liabilities 25 768 - 25 768 22 002 - 22 002 44 232 - 44 232 47 628 - 47 628 Current Liabilities Other financial liabilities 6 795 - 6 795 - - - Current tax payable 16 - 16 33 - 33 Trade and other payables 31 - 31 1 407 - 1 407 6 842 - 6 842 1 440 - 1 440 Total Equity and Liabilities 111 029 9 123 120 152 111 306 9 123 120 429 OTHER MATTERS ARISING FROM THE PRO-ACTIVE MONITORING The Pro-active Monitoring also identified that insufficient disclosure, in terms of IFRS, was made with regard to certain items in the 2013 AFS. This is not considered to be material and will be corrected in the annual financial statements for the year ended 28 February 2014. WITHDRAWAL OF CAUTIONARY WITH REGARD TO THE RESTATEMENT AND RENEWAL OF CAUTIONARY ANNOUNCEMENT WITH REGARD TO CONVERSION OF DEBT Further to the Cautionary Announcement and this announcement, shareholders need no longer exercise caution when trading in MRI securities with regard to the Restatement. Notwithstanding this, further to the detailed cautionary announcement published on 21 February 2014 regarding the conversion of debt, shareholders should continue to exercise caution when dealing in MRI securities until a further announcement in this regard is made. 4 April 2014 Johannesburg Designated Advisor: Sasfin Capital (a division of Sasfin Bank Limited) Date: 04/04/2014 12:15:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.