ORION EQUITIES LIMITED — Net Asset Value 2006

Dec 13, 2006

Thursday, 14 December 2006

MARKET ANNOUNCEMENT

Net Tangible Asset Backing - 30 November 2006

Month Ending:	% Change	30 November 2006 Consolidated	31 October 2006 Consolidated
Net tangible assets (before tax)		\$34.886m	\$35.754m
Pre-Tax NTA Backing per share	$-2.4\%$	\$1.96	\$2.01
Net tangible assets (after tax)		\$30.660m	\$31.257m
Post-Tax NTA Backing per share	$-1.9\%$	\$1.72	\$1.75
Based on total issued share capital		17,814,389	17,814,389

The NTA position comprises the following items:

	Current Month	Previous Month
Net Assets	\$'millions	\$'millions
Investments in listed Associated Entities:
(a) Shares in Bentley International Limited (BEL)	4.625	4.602
Shares in Scarborough Equities Limited (SCB) (b)	5.989	5.823
Investment in property	3.821	3.822
Investments in other listed securities	13.671	13.014
Investments in unlisted options	4.818	5.343
Net cash $/$ other assets $/$ provisions	1.962	3.149
Pre-Tax NTA	34.886	35.754
Tax Provisions:
(a) Prior year tax		(0.121)
(b) Current year tax	(0.788)	(0.708)
Net deferred tax asset / (liability) $\left( c\right)$	(3.438)	(3.668)
Post-Tax NTA	30.660	31.257

www.orionequities.com.au

ORION EQUITIES LIMITED

A.B.N. 77 000 742 843

Level 14, 221 St Georges Terrace, Perth WA 6000 T | + 61 (8) 9214 9797 $\mathbf{F}$ | + 61 (8) 9322 1515

Notes for Current Month NTA Position:

$(1)$ The Company's investments in Associated Entities (i.e. in which the Company has a greater than 20% interest) are accounted for under the equity method in the consolidated financial statements.

Under the equity method, the carrying amount of each such investment is cost plus a share of the Associate Entity's net profit or loss (after tax) for the financial year to month end as provided to the Company by each such Associated Entity.

Accordingly, as at 30 November 2006 the Company's:

• 28.38% interest in BEL has a carrying value of \$0.4101 per share (\$4.625m); this compares with $(i)$ BEL's last bid price on ASX of \$0.42 per share (\$4.680m) and BEL's after tax NTA backing of \$0.5057 cents per share (\$5.702m) at month end;
• 28.35% interest in SCB has a carrying value of \$1.0938 per share (\$5.989m); this compares with $(ii)$ SCB's last bid price on ASX of \$0.92 per share (\$5.038m) and SCB's after tax NTA backing of \$1.0895 per share (\$5.966m) at month end.
• $(2)$ The fair value of the Consolidated Entity's investments in other listed securities are based on each securities' last bid price on market at month end.
• $(3)$ The fair value of the Consolidated Entity's investments in unlisted options, being the following unlisted options in ASX listed Strike Resources Limited (SRK), is based on a Black-Scholes options pricing valuation model:
• $(a)$ 1,833,333 options, each to acquire one SRK share at an exercise price of 20 cents, on or before 9 February 2011; and
• 1,666,667 options, each to acquire one SRK share at an exercise price of 30 cents, on or before 9 $(b)$ February 2011.

This valuation has been calculated using the Black-Scholes option-pricing model applying the following assumptions:

• SRK's share price being \$1.56 (the last bid price as at 30 November 2006). The Company notes $(i)$ that SRK's last bid price was \$1.515 as at 13 December 2006;
• A risk free rate of return of 5.825% (based on the 5 year bond rate as at 30 November 2006). $(ii)$
• $(iii)$ An estimated future volatility of SRK's share price of 60%.
• $(4)$ The Consolidated Entity's investment in real property is carried at cost.
• Tax Provision Item (c) includes a provision for income tax on net unrealised gains on the Company's $(5)$ investments in securities and its share of Associated Entities' after tax net profit for the month (deferred tax liability) and the recognition of future income tax benefits on net unrealised losses on the Company's investments in securities and its share of Associated Entities' after tax net loss for the month (deferred tax asset).

Further information:

Farooq Khan	T (08) 9214 9797
Chairman	$E$ fkhan@orionequities.com.au
___	.

Victor Ho Company Secretary

• T | (08) 9214 9797
• E | vho@ orionequities.com.au