Interim condensed consolidated financial results for the six months ended 31 August 2014 Chrometco Limited (Incorporated in the Republic of South Africa) (Registration number 2002/026265/06) Share code: CMO ISIN: ZAE000070249 (“Chrometco” or “the group” or “the company”) Interim condensed consolidated financial results for the six months ended 31 August 2014 Abridged statement of financial position Unaudited Unaudited Interim Interim Audited 6 months 6 months for year ended ended ended 31 August 31 August 28 February 2014 2013 2014 R’000 R’000 R’000 Assets Non-current assets 194 629 197 697 196 448 Tangible assets 19 24 7 Intangible assets 187 175 194 062 190 625 Deferred taxation 7 435 3 611 5 816 Current assets 11 554 26 889 15 470 Inventories 79 9 531 79 Trade and other receivables 395 962 448 Cash and cash equivalents 11 080 16 406 14 943 Total assets 206 183 224 596 211 918 Equity and liabilities Capital and reserves 173 791 172 119 178 950 Stated capital 54 187 54 187 54 187 Retained earnings/(Accumulated loss) 86 797 83 915 91 351 Non-controlling interest 32 807 34 017 33 412 Non-current liabilities 31 553 32 700 32 131 Deferred taxation 31 553 32 700 32 131 Current liabilities 839 19 777 837 Trade and other payables 287 16 212 303 Provisions 10 10 10 Taxation payable 542 3 555 524 Total equity and liabilities 206 183 224 596 211 918 Net asset value per share (cents) 84.81 83.99 87.32 Net tangible asset value per share (cents) 8.87 5.25 9.98 Closing number of shares (`000) 204 929 204 929 204 929 Abridged statement of comprehensive income Unaudited Unaudited Interim Interim Audited 6 months 6 months for year ended ended ended 31 August 31 August 28 February 2014 2013 2014 R’000 R’000 R’000 Revenue 63 1 827 12 900 Cost of sales ¬ (1 899) (13 181) Gross profit/(loss) 63 (72) (281) Other income ¬ - - Amortisation of intangible assets (3 451) (3 444) (6 973) Change in measurement – VAT - - 6 018 Operating expenses (4 220) (5 946) (7 071) Net loss before interest and taxation (7 608) (9 462) (8 752) Investment income 269 370 815 Net loss before taxation (7 339) (9 092) (7 937) Taxation 2 180 1 954 7 631 Loss for the year (5 159) (7 137) (306) Other comprehensive income - - ¬ Taxation of other comprehensive Income - - - Loss/(profits) attributable to non Controlling interest 605 605 1 210 Total comprehensive (loss)/income for the period attributable to the owners of the company (4 554) (6 532) 904 Reconciliation between earnings and headline earnings per share Basic (loss)/earnings per share(cents) (2.22) (3.19) 0.44 Diluted (loss)/earnings per share (cents) (1.66) (2.38) 0.33 Headline (loss)/earnings per share for the half year ended 31 August 2014 Total comprehensive profit/(loss) for the six month period (4 554) (6 532) 904 Adjustments: Profit on sale of assets - 85 (85) Headline loss attributable to ordinary shareholders (4 554) (6 447) 819 Headline loss per share (cents) (2.22) (3.15) 0.40 Weighted average number of shares (`000) 204 929 204 929 204 929 Cash flow statements Unaudited Unaudited Interim Interim Audited 6 months 6 months for year ended ended ended 31 August 31 August 28 February 2014 2013 2014 R’000 R’000 R’000 Cash flows from operating activities (3 845) (3 362) (4 910) Cash flows from investing activities (18) - 85 Cash flows from financing activities - - (4 825) Net movement in cash and cash equivalents (3 863) (3 262) (11 842) Cash and cash equivalents at the beginning of the period 14 943 19 768 19 768 Cash and cash equivalents at the end of the period 11 080 16 406 14 943 Statement in changes of equity Non Stated Controlling Retained Capital Interest Earnings Total R’000 R’000 R’000 R’000 Balance at 1 March 2012 35 487 35 832 101 786 173 105 Non controlling interest share of loss for the six months ended 31 August 2012 - (605) - (605) Total comprehensive loss for the period - - (5 189) (5 189) Balance at 31 August 2012 35 487 35 227 96 597 167 311 Effect of share Based payments 18 700 - - 18 700 Non controlling interest share of loss for the six months ended 28 February 2013 - (605) - (605) Total comprehensive loss for the six months ended 28 February 2013 - - (6 150) (6 150) Balance at 28 February 2013 54 187 34 622 90 447 179 256 Non controlling interest share of loss for the six months ended 31 August 2013 - (605) - (605) Total comprehensive loss for the six months ended 31 August 2013 - - (6 532) (6 532) Balance at 31 August 2013 54 187 34 017 83 915 172 119 Non controlling interest share of loss for the six months ended 28 February 2014 - (605) - (605) Total comprehensive income for the six months ended 28 February 2014 - - 6 532 6532 Balance at 28 February 2014 54 187 34 622 90 447 179 256 Non controlling interest share of loss for the six months ended 31 August 2014 - (605) - (605) Total comprehensive loss for the six months ended 31 August 2014 - - (4 554) (4 554) Balance at 31 August 2014 54 187 32 807 86 798 173 792 Commentary Financial and operational overview 1. The directors present the interim consolidated financial results for the six months ended 31 August 2014. 2. Basis of preparation These condensed consolidated interim results for the six month period ended 31 August 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 previous financial period. These condensed consolidated interim financial statements have been prepared under the supervision of Trevor Scott (BCom (Hons), BAcc, CA(SA))in his capacity as Financial Director. 3. Long term receivables are measured at amortised cost less accumulated impairment losses. 4. Intangible assets comprising geological information are amortised over their expected remaining useful life of 27 years. 5. New order mining rights for chrome at Rooderand are amortised over their expected remaining useful life of 27 years. 6. Nature of business The company is involved in the exploration of mineral resources and the possible beneficiation thereof. 7. General review of operations During the six months under review, the company focused its attention on the following important issues: - Finalising a mining services and ore sales agreement with International Ferro Metals SA Proprietary Limited (“IFM). - Conducting an exploration and drilling programme at Rooderand in accordance with the first phase of the agreement with IFM. - DMR related activities required to conclude the acquisition of the Platinum Group Metals (“PGM”) prospecting rights from Nkwe Platinum SA and Realm Resources. - Completion of a detailed PGM value strategy for PGM consolidation on the Rooderand property. 8. 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 IFM agreement which was announced on SENS on 7 October 2014 has seen mining commence on Rooderand in the 2014/2015 year. This is a significant step for the company. The company is also interested in the exploration and beneficiation of mineral related opportunities. 9. Changes to the board There were no changes to the board during the period under review. 10. Dividends No dividend has been declared for the interim period. For and on behalf of the board of directors PJ Cilliers Managing Director 27 November 2014 Directors: JG Scott (Chairman), PJ Cilliers (MD), R Rossiter (Non- executive), E Bramley (Non-executive), IWS Collair (Non-executive), R McConnachie (Non-executive – alternate), TW Scott (FD). Designated Advisor: Sasfin Capital, a division of Sasfin Bank Limited. Company Secretary: Vanessa Marques, representing The Green Board CC Registered Office: 71 Van Beek Avenue Glenanda 2091 (P.O. Box 758, Mondeor, 2110) www.chrometco.co.za Date: 27/11/2014 05:20:00 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.