Abridged audited financial statements for the year ended 28 February 2014 and notice of AGM Chrometco Limited (Incorporated in the Republic of South Africa) (Registration number 2002/026265/06) Share code: CMO ISIN: ZAE000070249 ("Chrometco" or "the group") ABRIDGED AUDITED GROUP ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2014 ABRIDGED CONSOLIDATED STATEMENT OF FINANCIAL POSITION Audited as at Audited as at 8 Feb 2014 8 Feb 2013 R'000 R'000 ASSETS Non-current assets 196 448 199 822 Tangible assets 7 31 Intangible assets 190 625 197 499 Deferred taxation 5 816 2 292 Current assets 15 470 31 752 Inventory 79 11 011 Trade and other receivables 448 973 Cash and cash equivalents 14 943 19 768 Total assets 211 918 231 574 EQUITY AND LIABILITIES Capital and reserves 178 950 179 256 Stated capital 54 187 54 187 Retained earnings 91 351 90 447 Non-controlling interest 33 412 34 622 Non-current liabilities 32 131 33 279 Deferred taxation 32 131 33 279 Current liabilities 837 19 039 Trade and other payables 303 15 546 Provisions 10 10 Taxation payable 524 3 483 Total equity and liabilities 211 918 231 574 Net asset value per share (cents) 87.32 87.47 Closing number of shares ('000) 204 929 204 929 ABRIDGED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Audited for Audited for year ended year ended 28 Feb 2014 28 Feb 2013 R'000 R'000 Revenue 12 900 1 553 Cost of sales (13 181) (530) Gross profit (281) 1 023 Other income 85 Amortisation of intangible assets (6 873) (6 481) Change in measurement – VAT 6 018 Operating expenses (7 701) (11 327) Net loss before interest and taxation (8 752) (16 785) Investment income 815 1 182 Loss before taxation (7 937) (15 603) Taxation 7 631 3 054 Loss for the year (306) (12 549) Total comprehensive loss for the year (306) (12 549) Loss attributable to non controlling interest 1 210 1 210 Total comprehensive income/(loss) for the year attributable to owners of the company 904 (11 339) Reconciliation between earnings and head line earnings per share Basic earnings / (loss) per share (cents) 0.44 (5.92) Diluted earnings / (loss) per share (cents) 0.33 (5.28) Earnings/(loss) attributable to owners of the company 904 (11 339) Adjustments: Profit on disposal of plant (85) - Headline profit attributable to owners of the company 819 (11 339) Headline profit/(loss) per share (cents) 0.40 (5.92) Weighted average number of shares (`000) 204 929 191 595 ABRIDGED CONSOLIDATED STATEMENT OF CASH FLOWS Audited for Audited for year ended year ended 28 Feb 2014 28 Feb 2013 R'000 R'000 Cash flows from operating activities (4 910) (11 042) Cash flows from investing activities 85 (800) Cash flows from financing activities - - Net movement in cash and cash equivalents (4 825) (11 842) Cash and cash equivalents at the beginning of the period 19 768 31 610 Cash and cash equivalents at the end of the period 14 943 19 768 ABRIDGED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Stated Non Capital and Controlling Retained Premium Interest Earnings Total R'000 R'000 R'000 R'000 Balance at 1 March 2012 35 487 35 832 101 786 173 105 Comprehensive loss for the period - - (11 339) (11 339) Non controlling interest’s share of loss for the year - (1 210) - (1 210) Effect of share based payments 18 700 - - 18 700 Balance at 1 March 2013 54 187 34 622 90 447 179 256 Non controlling interest’s share of loss for the year - (1 210) - (1 210) Comprehensive income for the period - - 904 904 Balance at 28 February 2014 54 187 33 412 91 351 178 950 COMMENTARY – Financial and operational overview. 1. The directors present the audited results for the year ended 28 February 2014 2. Basis of preparation The abridged audited group annual financial statements for the year ended 28 February 2014 have been prepared in accordance with the framework concepts and the recognition and measurement criteria of International Financial Reporting Standards (“IFRS”) and the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee, as well as the presentation and disclosure requirements of IAS 34 – Interim Financial Reporting, the JSE Limited Listings Requirements and the Companies Act of South Africa. The group accounting policies and methods of measurement and recognition comply in material respects with IFRS and are consistent with those applied in the financial period ended 28 February 2013 3. Auditors report This summarised report is extracted from audited information but is not itself audited. The unmodified audit report issued by Chrometco groups auditors, RSM Betty & Dickson (Johannesburg) is available for inspection at the company's registered office during normal office hours. The directors take full responsibility for the preparation of this report and confirm that the financial information has been correctly extracted from the underlying annual financial statements. 4. Nature of business The company is involved in the exploration of mineral resources and the possible beneficiation thereof. 5. General review of operations. During the period under review, the group focused its attention on the following important issues:- - Processing and sale of stockpiled MG4 chrome ore; - Optimisation of the allocation of capital resources. - DMR related activities required to conclude of the acquisition of the PGM prospecting rights from Nkwe Platinum SA and Realm Resources; and - Commercialization of the Rooderand chrome resource. 6. Prospects The group currently has a chrome mine in the North West province of the Republic of South Africa and is focusing on the consolidation of the PGM resources on its Rooderand chrome property while simultaneously extracting value from its chrome resource. The newly entered IFM agreement could see mining commence on Rooderand in this year. This is a significant step for the company. The company is also interested in the exploration and beneficiation of mineral related opportunities. 7. Changes to the board The board welcomed the appointment of Mr. Ryan McConnachie (alternate to Mr. Richard Rossiter) in May 2013. Mr Christopher Seabrooke resigned as an independent non executive director in June 2013. 8. Annual general meeting and integrated annual report The annual general meeting of the company will be held in the boardroom, at Computershare Investor Services (Pty) Ltd, 70 Marshall Street, Johannesburg on Friday, 4 July 2014 at 10h00. The notice of annual general meeting forms part of the Integrated Annual Report 2014, to be posted to shareholders on or about 31 May 2014. The integrated annual report and form of proxy will also be available on the company’s website: www.chrometco.co.za on or about 31 May 2014. 9. Dividends No dividend has been declared for the period. For and on behalf of the board of directors PJ Cilliers Managing Director Directors: JG Scott (Chairman), PJ Cilliers (MD), R Rossiter, E Bramley, IWS Collair, R McConnachie (alternate to Mr. Rossiter), TW Scott (FD) 30 May 2014 Designated Advisor: Sasfin Capital, a division of Sasfin Bank. Company Secretary: CIS Company Secretaries (Pty) Ltd Registered Office 70 Marshall Street Johannesburg (P.O.Box 3787, Dainfern. 2055) www.chrometco.co.za Date: 30/05/2014 04:03:00 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.