Provisional reviewed results for the year ended 30 June 2014. Awethu Breweries Limited (Incorporated in the Republic of South Africa) (Registration Number: 1992/004352/06) Share Code: AWT ISIN Number: ZAE 000013769 (“the company” or “Awethu”) PROVISIONAL REVIEWED RESULTS FOR THE YEAR ENDED 30 JUNE 2014 Condensed Statement of Comprehensive Income Year ended Year ended 30 June 2014 30 June 2013 Reviewed Audited R R Continuing operations Revenue 945 746 11 421 059 Cost of sales (902 029) (10 150 024) Gross profit 43 717 1 271 035 Operating expenses (755 577) (924 843) Investment revenue - 524 Finance costs (3 263) (593 208) Fair value adjustment (2 927 199) - Operating loss (3 642 322) (246 492) Taxation - - Total comprehensive loss (3 642 322) (246 492) Basic and diluted loss per share (cents) (4.31) (0.29) Headline loss per share (cents) (0.85) (0.29) Basic number of shares in issue 84 556 909 84 556 909 Weighted average number of shares on which: Basic loss per share is based 84 566 909 84 566 909 Headline loss per share is based 84 566 909 84 566 909 Condensed Statement of Financial Position 30 June 30 June 2014 2013 Reviewed Audited R R Assets Non-Current Assets Property, plant and equipment 30 092 36 426 Investment Property 4 500 000 7 427 199 4 530 092 7 463 625 Current Assets Trade and other receivables 103 690 495 792 Cash and cash equivalents - 152 803 Straight-lining of lease asset - 84 762 Total current assets 103 690 733 357 Total assets 4 633 782 8 196 982 Equity and Liabilities Equity Share capital 10 747 076 10 747 076 Accumulated loss (16 317 326) (12 675 004) (5 570 250) (1 927 928) Liabilities Non-Current Liabilities Loan from shareholder 8 054 113 8 006 782 8 054 113 8 006 782 Current Liabilities Trade and other payables 480 265 448 558 Bank Overdraft 84 - Provisions 1 669 570 1 669 570 2 149 919 2 118 128 Total Equity and Liabilities 4 633 782 8 196 982 Net Liability Value per share (cents) 12.1 12.0 Condensed Statement of Changes in Equity Share Share Total Share Accumulated Total Capital Premium Capital Loss Equity R R R R R Balance at 30 June 2012 845 569 9 901 507 10 747 076 (12 428 512)(1 681 436) Total comprehensive loss for the year - - - (246 492) (246 492) Balance at 30 June 2013 845 569 9 901 507 10 747 076 (12 675 004)(1 927 928) Total comprehensive loss for the year - - - (3 642 322)(3 642 322) Balance at 30 June 2014 845 569 9 901 507 10 747 076 (16 317 326)(5 570 250) Condensed Statement of Cash Flows 30 June 30 June 2014 2013 Reviewed Audited R R Cash flows from operating activities: Cash used in operations (196 955) (327 475) Finance costs (3 263) (997) Net cash from operating activities (200 218) (328 472) Cash Flows from investing activities: Interest income - 524 Net cash from investing activities - 524 Cash flows from financing activities: Movement in shareholder’s loan – inflow 47 331 - Net cash from financing activities 47 331 - Total cash movement for the year (152 887) 327 948 Cash at beginning of year 152 803 480 751 Total cash at end of year (84) 152 803 Notes to condensed financial statements: 1. Basis of preparation These provisional reviewed condensed financial statements have been prepared by Mr JA Taylor CA(SA). The condensed financial statements are prepared in accordance with the requirements of the JSE Limited Listings Requirements for provisional reports and the requirements of the Companies Act of South Africa. The Listings Requirements require provisional reports to be prepared in accordance with the framework concepts and the measurement and recognition requirements of International Financial Reporting Standards (IFRS) and the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and Financial Pronouncements as issued by Financial Reporting Standards Council and to also, as a minimum, contain the information required by IAS 34 Interim Financial Reporting. The accounting policies applied in the preparation of the condensed financial statements are in terms of IFRS and are consistent with those applied in the previous annual financial statements. There were no effects of changes in new accounting standards for the year. 2. Headline loss Reconciliation between basic loss and headline loss: Net Loss for year (3 642 322) (246 492) Fair value adjustment on investment property 2 927 199 - Total tax effect of adjustments Headline loss for the year (715 123) (246 492) 3. Segmental Information The segment revenues, operating profit and other expenses generated by each reportable segment is summarised as follows: 2014 2013 Sales of goods Revenues 945 746 10 589 903 Investment revenue - 524 Cost of sales (902 092) (10 150 024) Depreciation (6 335) (6 335) Operating lease charges (45 000) (60 000) Employee costs (53 460) (61 827) Finance costs (959) (593 208) Segment loss (2013 : Profit) (62 100) 311 244 Other expenses (134 822) (915 289) Director’s remuneration (60 000) (81 600) Listing costs (232 861) (181 069) Audit and accounting (225 340) (210 934) Company loss from continuing (653 023) (246 492) operations before tax. Rental of premises Rental income - 831 156 Impairment of assets held for sale (2 927 199) - Segment (loss)/profit (2 927 199) 831 156 All segment revenue is derived from external sources External revenues per geography are summarized as follows: Ventersdorp Goods sold 945 746 10 589 903 Rental income - 831 156 Total revenue 945 746 11 421 059 The operating segment assets by each reportable segment are summarized as follows: Sales of goods Property, plant and equipment 30 092 36 426 Trade and other receivables 103 690 495 792 Segment assets 133 782 532 218 Rental of premises Investment Property 4 500 000 7 427 199 Segment assets 4 500 000 7 427 199 Unallocated assets: Cash and cash equivalents 152 803 Straight-lining of lease asset 84 762 Company assets 4 633 782 8 196 982 The company does not report on segment liabilities. Non-current non-financial asset per geography are summarized as follows: Ventersdorp Property, plant and equipment 30 092 36 426 Investment Property 4 100 000 6 827 199 Total assets 4 130 092 6 863 625 Carletonville Investment property 400 000 600 000 Total 4 530 092 7 463 625 4. Going concern The company reported a net loss of R3 642 322 and the company’s liabilities exceeds its assets by R5 570 250. The condensed financial statements have been prepared on the going concern basis as the shareholder's loan account has been subordinated in favour of all other creditors until such time as the company's assets (fairly valued) exceed its liabilities. COMMENTARY 1. Review of the results Awethu Breweries went through a disappointing year where we are still awaiting our liquor license as well as the sale of the Venterdorp mill. Neither were successful during the year. Due to current offers on the mill, we have impaired the value of the Investment property. This resulted in a current year impairment of R2 927 199, which represents 80% of the total loss reported for the year. Furthermore, the mill has not been classified as held for sale as it is not certain that the requirement, per IFRS 5 Non-Current Assets Held for Sale for the sale to complete within 12 months, will be met. There are no extra comments on the current results to report on. 2. Synopsis of Operations for the period and post balance sheet events Awethu is committed to selling the Ventersdorp mill to raise some capital for working capital and further acquisitions. There are no post balance sheet updates to be reported on at this time. 3. Dividends No dividend has been declared for the year. 4. Independent review by the external auditors. The condensed provisional financial information for the year ended 30 June 2014 has been reviewed by the Company’s auditors, Logista CA (SA) Incorporated. The review was conducted in accordance with ISRE 2410 Review of Interim Financial Information performed by the Independent Auditor of the Entity. The auditors review report does not necessarily cover all the information in this announcement. Shareholders are therefore advised that in order to obtain a full understanding of the nature of the auditors work they should obtain a copy of that report together with the accompanying financial information from the registered office of the Company. Any reference to future financial performance included in this announcement has not been reviewed or reported on by the Company’s auditors. 5. Emphasis of matter: The auditors review report contains the following conclusion: “Without qualifying our opinion, we draw attention to note 4 in the condensed financial statements which indicates that the company incurred a net loss of R (3 642 322) for the year ended 30 June 2014 and, as at that date, the company’s total liabilities exceed its total assets by R(5 570 250).The note 4 also indicates that these conditions, along with other matters, indicated the existence of a material uncertainty which may cast significant doubt on the company’s ability to continue as a going concern.” The review report is open for inspection at the company’s registered office. 6. Director changes during the year Mr Salim Bismilla was appointed to the board during the year as an independent non-executive director of the Company with effect from 28 February 2014, as announced on SENS on 3 March 2014. Ms Irene Vermaak has been appointed as non-executive director of the company with effect from 30 September 2014 and Mr. Jason Taylor has been appointed as the financial director with effect from 30 September 2014, both changes were announced on SENS on 1 0ctober 2014. The board wishes to thank Ms Irene Vermaak for her contribution over the years and welcome’s her input in her new role. On behalf of the board TTW Ford Chief executive 15 October 2014 Vanderbijlpark Registered Office: 24 Sering Street, SE3 Vanderbijlpark, 1911 Transfer secretaries: Computershare Investor Services (Pty) Ltd – 70 Marshall Street, Johannesburg, 2001 Directors: TTW Ford(CEO),JA Taylor (FD) I Vermaak(non- executive),S Bismilla(independent, non-executive) Auditors: Logista CA (SA)Incorporated Chartered Accountants (S.A.) Registered Auditors Sponsors: Deloitte & Touche Sponsor Services (Pty) Ltd Date: 15/10/2014 07:49:00 Produced by the JSE SENS Department. 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