Interim Condensed Consolidated Financial Results for the Six Months Ended 31 August 2015 Chrometco Limited (Incorporated in the Republic of South Africa) (Registration number 2002/026265/06) Share code: CMO ISIN: ZAE00007020249 ("Chrometco" or "the group" or “the company”) INTERIM CONDENSED CONSOLIDATED FINANCIAL RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2015 CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION Unaudited Unaudited Audited Interim Interim for year as at as at as at 31 August 31 August 28 February 2015 2014 2015 R'000 R'000 R’000 ASSETS Non-current assets 184 715 194 629 187 597 Tangible assets 2 223 19 2 267 Intangible Assets 180 316 187 175 183 751 Deferred Taxation - 7 435 - Environmental Rehabilitation Investments 2 176 - 1 579 Current assets 5 335 11 554 8 373 Inventories - 79 - Trade and other receivables 518 395 1 039 Cash and cash equivalents 4 817 11 080 7 334 Total assets 190 050 206 183 195 970 EQUITY AND LIABILITIES Capital and reserves 155 753 173 791 160 927 Stated capital 54 187 54 187 54 187 Retained earnings 69 970 86 797 74 539 Attributable to ordinary Shareholders 124 157 140 984 128 726 Non-Controlling Interest 31 596 32 807 32 201 Non-current liabilities 33 525 31 553 33 865 Deferred taxation 30 448 31 553 30 963 Environmental Rehab Provision 3 077 - 2 902 Current liabilities 772 839 1 178 Trade and other payables 762 287 1 168 Provisions 10 10 10 Taxation payable - 542 - Total equity and liabilities 190 050 206 183 195 970 Net asset value per share 76.00 84.81 78.53 (cents) Net tangible asset value per 2.87 8.87 3.97 share (cents) Closing number of shares 204 929 204 929 204 929 (`000) CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Unaudited Unaudited Audited Interim Interim for year 6 months 6 months ended ended ended 28 February 31 August 31 August 2015 2015 2014 R'000 R'000 R’000 Revenue 1 401 63 672 Other income - - 1 102 Amortisation of intangible assets (3 437) (3 451) (6 873) Operating expenses (3 746) (4 220) (8 749) Net loss before interest and taxation (5 782) (7 608) (13 848) Investment income 176 269 536 Finance Charges (85) - (157) Net loss before taxation (5 691) (7 339) (13 469) Taxation 517 2 180 (4 553) Loss for the year (5 174) (5 159) (18 022) Total Comprehensive Loss (5 174) (5 159) (18 022) Attributable to non-controlling interest (605) (605) (1 210) Attributable to the owners of the parent (4 569) (4 554) (16 812) Loss per share Basic loss per share(cents) (2.23) (2.22) (8.20) Diluted loss per share (cents) (1.66) (1.66) (6.12) CONDENSED CONSOLIDATED CASH FLOW STATEMENTS Unaudited Unaudited Audited Interim Interim for year 6 months 6 months ended ended ended 28 February 31 August 31 August 2015 2015 2014 R'000 R'000 R’000 Cash flows from operating activities (1 919) (3 845) (6 012) Cash flows from investing activities (598) (18) (1 597) Cash flows from financing activities - - - Net movement in cash and cash equivalents (2 517) (3 863) (7 609) Cash and cash equivalents at the beginning of the period 7 334 14 943 14 943 Cash and cash equivalents at the end of the period. 4 817 11 080 7 334 CONDENSED CONSOLIDATED STATEMENT IN CHANGES OF EQUITY Stated Non Controlling Retained Capital Interest Earnings Total R'000 R'000 R'000 R'000 Balance at 1 March 2014 54 187 33 412 91 351 178 950 Non controlling interest share of loss for the six months ended 31 August 2014 - (605) - (605) Total comprehensive loss for the period - - (4 554) (4 554) Balance at 31 August 2014 54 187 32 807 86 797 173 791 Non controlling interest share of loss for the six months ended 28 February 2015 - (605) - (605) Total comprehensive loss for the six months ended 28 February 2015 - - (12 258) (12 258) Balance at 28 February 2015 54 187 32 201 74 539 160 927 Non controlling interest share of loss for the six months ended 31 August 2015 - (605) - (605) Total comprehensive loss for the six months ended 31 August 2015 - - (4 569) (4 569) Balance at 31 August 2015 54 187 31 596 69 970 155 753 COMMENTARY – Financial and operational overview. 1. The directors present the interim consolidated financial results for the six months ended 31 August 2015. 2. Basis of preparation The condensed consolidated group annual financial statements for the period ended 31 August 2015 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, the Financial Reporting Pronouncements as issued by the Financial Reporting Standards Council as well as the presentation and disclosure requirements of IAS 34 – Interim Financial Reporting, the JSE Listings Requirements and the Companies Act of South Africa. 3. Significant accounting policies The unaudited consolidated condensed results have been prepared under the historical cost convention, except for the valuation at fair value of intangible assets comprising mining rights and geological information acquired as part of a business combination or by share based payment transaction. 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 2015 and 31 August 2014. 4. Intangible assets comprising geological information are amortised over their expected remaining useful life of 26.25 years. 5. New order mining rights for chrome at Rooderand are amortised over their expected remaining useful life of 26.25 years. 6. Headline loss per share for the half year ended 31 August 2015 Total comprehensive loss for the six months (4 569) (4 554) (16 812) Headline loss attributable to ordinary shareholders (4 569) (4 554) (16 812) Headline loss per share (cents) (2.23) (2.22) (8.20) Diluted Headline loss per share (1.66) (1.66) (6.12) Weighted average number of shares (`000) 204 929 204 929 204 929 Diluted weighted average number Of shares (‘000) 274 929 274 929 274 929 7. These results have been prepared under the supervision of the Financial Director, MB Scott(CA)SA, and have not been audited or reviewed by the Group's auditors, Mazars. 8. Going Concern The Board has considered the going concern assertion in terms of which the interim results are presented, and concluded that although cash flow uncertainties exist in the next 12 months, active management of cash flows will ensure that the assertion remains valid. The major uncertainty relates to the quantum and timing of receipt of the outstanding amounts owed by IFM to the group as referred to in note 11 below, 9. Nature of business. The company is involved in the mining and exploration of mineral resources and the possible further beneficiation thereof. 10. General review of operations. During the six months under review, the company focused its attention on the following important issues:- - Mining Chrome Ore at Rooderand in accordance with the second phase of the agreement with IFM as well as an ongoing exploration and drilling program. - DMR related activities required to conclude the acquisition of the PGM prospecting rights from Nkwe Platinum SA and Realm Resources, which has been concluded post this financial period and resulted in the issue of 70 million new CMO shares, 35 million to Realm and NKWE respectively. - Evaluating ways to extract value from the Rooderand mining assets as well as evaluating other opportunities. 11. Prospects The group currently has a chrome and PGM mine in the North West province of the Republic of South Africa and is focusing on the further consolidation of the resources on and around its Rooderand property while simultaneously extracting value from its chrome and PGM resources. The IFM agreement saw mining commence on Rooderand in the 2014/2015 year. Whilst this was a significant step for the company at the time, IFM entered business rescue proceedings in August 2015 and chrome mining at Rooderand has consequently ceased for the time being. The group remains a creditor of IFM and the prospects for recovering the R2.8m due to the group depends on the terms of the business rescue plan to be proposed by the appointed Business Rescue Practitioners. The company continues to look at other mineral related mining, exploration and beneficiation opportunities in this very depressed market. 12. Changes to the board During the period under review, Mr T Scott resigned as Financial Director, and Mr MB Scott (no relation) was appointed in his stead on 1 July 2015. Mr M Scott has subsequently resigned from the Board with effect from 1 December 2015. 13. Dividends No dividend has been declared for the interim period. For and on behalf of the board of directors PJ Cilliers Managing Director 30 November 2015 Directors: JG Scott (Chairman), PJ Cilliers (MD), R Rossiter (Non-executive), E Bramley (Non- executive), IWS Collair (Non-executive), R McConnachie (Non-executive – alternate), MB Scott (FD). Designated Advisor: PSG Capital (Pty) Ltd. Company Secretary: The Green Board CC Registered Office: 71 Van Beek Avenue Glenanda Johannesburg 2091 (P.O.Box 758, Mondeor. 2110) www.chrometco.co.za Date: 30/11/2015 04:45:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 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