Unaudited Interim Condensed Consolidated Financial Results for the Six Months Ended 31 August 2016 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”) UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2016 CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION Unaudited Unaudited Audited Interim Interim for year as at as at as at 31 August 31 August 29 February 2016 2015 2016 R’000 R’000 R’000 ASSETS Non-current assets 278 024 184 715 284 761 Tangible assets 1 624 2 223 1 999 Intangible assets 273 322 180 316 279 755 Deferred taxation – - – Environmental rehabilitation investments 3 078 2 176 3 007 Current assets 985 5 335 2 477 Inventories – - – Trade and other receivables 483 518 792 Cash and cash equivalents 502 4 817 1 685 Total assets 279 009 190 050 287 238 EQUITY AND LIABILITIES Capital and reserves 221 019 155 753 233 867 Stated capital 158 062 54 187 158 062 Retained earnings 38 874 69 970 49 960 Attributable to ordinary shareholders 196 936 124 157 208 022 Non-controlling interest 24 083 31 596 25 845 Non-current liabilities 56 824 33 525 53 041 Deferred taxation 52 194 30 448 49 009 Environmental Rehabilitation Provision 4 630 3 077 4 032 Current liabilities 1 166 772 330 Trade and other payables 1 156 762 320 Provisions 10 10 10 Taxation payable – - – Total equity and liabilities 279 009 190 050 287 238 Net asset value per share 96.10 76.00 75.66 (cents) Closing number of shares 274 929 204 929 274 929 (`000) CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Unaudited Unaudited Audited Interim Interim for year 6 months 6 months ended ended ended 29 February 31 August 31 August 2016 2016 2015 R’000 R’000 R’000 Revenue - 1 401 1 401 Other income 165 – 2 811 Amortisation of intangible assets (3 101) (3 437) (7 872) Operating expenses (6 039) (3 746) (9 134) Net loss before interest and taxation (8 975) (5 782) (12 794) Investment income - 176 245 Finance charges (689) (85) (341) Net loss before taxation (9 664) (5 691) (12 890) Taxation (3 184) 517 (18 046) Loss for the year (12 848) (5 174) (30 936) Total comprehensive loss (12 848) (5 174) (30 936) Attributable to non-controlling interest (1 762) (605) (6 357) Attributable to the owners of the parent (11 086) (4 569) (24 579) Loss per share Basic loss per share (cents) (8.06) (2.23) (10.77) Diluted loss per share (cents) (0.81) (1.66) (8.94) CONDENSED CONSOLIDATED CASH FLOW STATEMENTS Unaudited Unaudited Audited Interim Interim for year 6 months 6 months ended ended ended 29 February 31 August 31 August 2016 2016 2015 R’000 R’000 R’000 Cash flows from operating activities (1 183) (1 919) (4 221) Cash flows from investing activities - (598) (1 428) Cash flows from financing activities – – – Net movement in cash and cash equivalents (1 183) (2 517) (5 649) Cash and cash equivalents at the beginning of the period 1 685 7 334 7 334 Cash and cash equivalents at the end of the period. 502 4 817 1 685 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 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 period – – (4 569) (4 569) Balance at 31 August 2015 54 187 31 596 69 970 155 753 Non controlling interest share of loss for the six months ended 29 February 2016 – (5 751) - (5 751) Total comprehensive loss for the six months ended 29 February 2016 – – (20 010) (20 010) Effect of share-based 103 875 - - 103 875 payment Balance at 29 February 2016 158 062 25 845 49 960 233 867 Non controlling interest share of loss for the six months ended 31 August 2016 – (1 762) - (1 762) Total comprehensive loss for the six months ended 31 August 2016 – – (11 086) (11 086) Balance at 31 August 2016 158 062 24 083 38 874 221 019 COMMENTARY – Financial and operational overview. 1. The directors present the unaudited interim condensed consolidated financial results for the six months ended 31 August 2016. 2. Basis of preparation The unaudited interim condensed consolidated group annual financial statements for the period ended 31 August 2016 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 interim condensed consolidated 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 29 February 2016 and 31 August 2015. 4. Intangible assets comprising geological valuation for chrome and PGMs are amortised over their expected remaining useful life of 26.25 years. The asset increased in value due to the acquisition of the PGMs that took place on 11 November 2015, which is just prior to the period under review. 5.The resource statement as disclised in the 2016 Integrated Report has not changed. 6. Headline loss per share for the six months ended 31 August 2016 Total comprehensive loss for the six months (11 086) (4 569) (24 579) Headline loss attributable to ordinary shareholders (11 086) (4 569) (24 579) Headline loss per share (cents) (8.06) (2.23) (10.77) Diluted Headline loss per share (0.81) (1.66) (8.94) Weighted average number of shares (`000) 137 464 204 929 228 262 Diluted weighted average number Of shares (‘000) 1 233 750 274 929 274 929 7. These results have been prepared under the supervision of the Financial Director, NI Waisberg, CFA, 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:- – DMR related activities required to conclude the acquisition of the PGM prospecting rights from Nkwe Platinum SA and Realm Resources and the issue of 70 million new CMO shares, 35 million to Realm and NKWE respectively. – Chrometco entered into agreements with Sail Minerals (Pty) Ltd (“SAIL”), the details thereof were released on SENS on 25 August 2016. - No mining or sale of ore took place over this period, but cash was received from a VAT return as well as a part settlement of the IFM debt. - Operating cost increased mostly related to the SAIL transaction. - The value of the PGM mining right on Rooderand increased the asset value. As a counter the increased valuation resulted in an increased depreciation, which impacted the income statement. 11. Prospects The group currently has entered into agreements with SAIL which will see the company acquire an operational chrome mine as well as a chrome prospecting right. This should reposition Chrometco as a significant Chrome player. 12. Changes to the board Post the period under review, Mr NL Waisberg has been appointed as full time FD. 13. Dividends No dividend has been declared for the interim period. For and on behalf of the board of directors PJ Cilliers Managing Director 1 December 2016 Directors: JG Scott (Chairman), PJ Cilliers (MD), R Rossiter (Non-executive), NL Waisberg (FD), E Bramley (Non-executive), IWS Collair (Non-executive). Designated Advisor: PSG Capital Proprietary Limited. 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: 01/12/2016 02:15:00 Produced by the JSE SENS Department. 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