Restatement of previously reported financial results LABAT AFRICA LIMITED (Incorporated in the Republic of South Africa) Registration number 1986/001616/06 (“Labat “the Company” or “the Group”) RESTATEMENT OF PREVIOUSLY REPORTED FINANCIAL RESULTS (“RESTATEMENT”) INTRODUCTION Shareholders are advised that the Company’s annual financial statements for the year ended 28 February 2014 together with the comparative figures (collectively, “2014 AFS”) as published, 6 June 2014 on SENS were misstated. The misstatement of the 2014 AFS was identified following the JSE Limited’s (“JSE”) pro-active monitoring process (“Pro-active Monitoring”) whereby the 2014 AFS were selected for review by the JSE. RESTATEMENT 1. Background During the financial period ended 28 February 2014, Labat entered into an agreement to dispose of its land and buildings. The land and buildings were therefore accounted for as a disposal group in accordance with IFRS 5: Non-current Assets Held for Sale (IFRS 5). The misstatement occurred as a result of incorrectly applying the requirements of IFRS 5 in accounting for the movement of the revaluation reserve in the statement of other comprehensive income as part of the profit from discontinued operations, as well as errors made in the calculation of the deferred tax implications on the fair value adjustment. Furthermore, it was identified that the deferred tax on the revaluation of the land portion, was not accounted for at a capital gains tax rate as required by IAS 12: Income Taxes which resulted in the comparative figures being misstated. 2. Basis of preparation of the Restatement The restated financial information regarding the 2014 AFS has been prepared by David O’Neill 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 2014 AFS. 3. Restated 2014 AFS CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION 29 February 2012 Adjustment As on use of previously CGT rate on Restated reported land portion balance Statement of Financial Position R’000 R’000 R’000 Non-distributable reserve (15 267) (1 129) (16 396) Deferred tax (5 408) 1 273 (4 135) Retained loss 63 545 (144) 63 401 28 February 2013 Adjustment As on use of previously CGT rate on Restated reported land portion balance Statement of Financial Position R’000 R’000 R’000 Non-distributable reserve (12 927) (1 128) (14 055) Deferred tax (4 554) 1 273 (3 281) Retained loss 62 103 (144) 61 959 28 February 2014 Adjustment on Adjustment revaluation on use of reserve and CGT rate As effect on on previously change of land Restated Statement of Financial reported rate portion) balance Position R’000 R’000 R’000 R’000 Non-distributable reserve (5 656) (1 988) (1 129) (8 773) Liabilities of disposal groups (2 213) (1 268) 1 273 (2 208) Retained loss 65 542 3 256 (144) 68 654 CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 28 February 2014 28 February 2013 As previously Restated reported Restatement balance R’000 R’000 R’000 (Loss) / profit from (6 022) - (6 022) 326 continuing operations Discontinued operations Profit / (loss) from 2 414 (3 256) (842) (1 225) discontinued operations (Loss) / profit for the year (3 607) (3 256) (6 864) (899) Other comprehensive income Loss on revaluation reserve (9 862) 2 761 (7 101) - Taxation related to 2 761 (773) 1 988 - revaluation of property Other comprehensive loss (7 101) 1 988 (5 112) - Total Comprehensive (loss) (10 709) (1 268) (11 977) (899) / income for the year EARNINGS AND HEADLINE EARNINGS PER SHARE 28 February 28 February 2014 2013 As previously Restated reported Restatement balance R’000 R’000 R’000 Total basic (loss)/earnings per share (cents) -Continuing operations (3.02) - (3.02) 0.17 -Discontinued operations 1.21 (1.63) (0.42) (0.62) Total loss per share (1.81) (1.63) (3.44) (0.45) Total headline (loss)/earnings per share (cents) -Continuing operations (3.01) - (3.01) (0.08) -Discontinued operations 1.31 (1.63) (0.32) (0.40) Total headline loss per share (1.70) (1.63) (3.33) (0.48) CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Non- Total share distributable Retained capital reserves losses Total Balance at 1 March 2012 as previously reported 50 555 15 267 (63 545) 2 277 Restatement - 1 129 144 1 273 Balance at 1 March 2012 50 555 16 396 (63 401) 3 550 Total comprehensive income - - (899) (899) Transfer of revaluation reserve - (253) 253 - Transfer of revaluation reserve on disposal - (2 088) 2 088 - Balance at 01 March 2013 as restated 50 555 14 055 (61 959) 2 651 Total comprehensive income as restated - (5 113) (6 864) (11 977) Transfer of revaluation reserve - (169) 169 - Issue of shares 750 - - 750 Balance at 28 February 2014 as restated 51 305 8 773 (68 654) (8 577) Johannesburg 19 February 2015 Sponsor Arbor Capital Sponsors Proprietary Limited Date: 19/02/2015 11:10:00 Produced by the JSE SENS Department. 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