ORION EQUITIES LIMITED — Net Asset Value 2007

Jul 15, 2007

Friday, 13 July 2007

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MARKET ANNOUNCEMENT

Net Tangible Asset Backing – 30 June 2007

Month Ending:%Change30 June 2007Consolidated31 May 2007ConsolidatedNet tangible assets (before tax)$39.704$41.629mPre-Tax NTA Backing per share-4.62%$2.2287$2.3368Net tangible assets (after tax)$33.832$35.597mPost-Tax NTA Backing per share-4.96%$1.8991$1.9982Based on total issued share capital17,814,38917,814,389The NTA position comprises the following items:Current MonthPrevious MonthNet Assets$’millions$’millionsInvestments in listed Associated Entities:(a)Shares in Bentley International Limited (BEL)4.6344.794(b)Shares in Scarborough Equities Limited (SCB)6.7636.719Investments in other listed securities14.52415.097Investments in unlisted options6.4126.724Investment in property3.8213.821Investment in Koorian Olive Grove2.6892.689Provision for dividend(0.028)(0.028)Net cash / other assets / provisions0.8901.813Pre-Tax NTA39.70441.629Tax Provisions:(a)Prior year tax--(b)Current year tax(1.409)(1.166)(c)Net deferred tax asset / (liability)(4.463)(4.866)Post-Tax NTA33.83235.597	%Change30 June 2007Consolidated31 May 2007Consolidated	%Change30 June 2007Consolidated31 May 2007Consolidated
		$39.704$41.629m
	-4.62%	$2.2287$2.3368$33.832$35.597m
	-4.96%	$1.8991$1.998217,814,38917,814,389
		Current MonthPrevious Month$’millions$’millions4.6344.7946.7636.71914.52415.0976.4126.7243.8213.8212.6892.689(0.028)(0.028)0.8901.81339.70441.629--(1.409)(1.166)(4.463)(4.866)33.83235.597
Investments in listed Associated Entities:(a)Shares in Bentley International Limited (BEL)(b)Shares in Scarborough Equities Limited (SCB)Investments in other listed securitiesInvestments in unlisted optionsInvestment in propertyInvestment in Koorian Olive GroveProvision for dividendNet cash / other assets / provisionsPre-Tax NTATax Provisions:(a)Prior year tax(b)Current year tax(c)Net deferred tax asset / (liability)Post-Tax NTA

www.orionequities.com.au

ASX Code: OEQ

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ORION EQUITIES LIMITED

A.B.N. 77 000 742 843

Level 14, 221 St Georges Terrace, Perth WA 6000 | + 61 (8) 9214 9797 F | + 61 (8) 9322 1515

E | info@orionequities.com.au

20070713 OEQ ASX NTA Backing as at 30 June 2007

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 June 2007 the Company’s:

• (i) 28.38% interest in BEL has a carrying value of $0.4109 per share ($4.634m); this compares with BEL’s last bid price on ASX of $0.39 per share ($4.398m) and BEL’s after tax NTA backing of $0.5066 cents per share ($5.712m) at month end;

• (ii) 28.22% interest in SCB has a carrying value of $1.2351 per share ($6.763m); this compares with SCB’s last bid price on ASX of $1.055 per share ($5.777m) and SCB’s after tax NTA backing of $1.2187 per share ($6.673m) 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

  • (b) 1,666,667 options, each to acquire one SRK share at an exercise price of 30 cents, on or before 9 February 2011.

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

• (i) SRK’s share price being $2.020 (the last bid price as at 30 June 2007). The Company notes that SRK’s last bid price was $2.350 as at 13 July 2007;

• (ii) A risk free rate of return of 6.41% (based on the 5 year bond yield as at 30 June 2007).

• (iii) An estimated future volatility of SRK’s share price of 65%.

• (4) The Consolidated Entity’s investment in real property is carried at cost.

• (5) The Consolidated Entity’s investment in the Koorian Olive Grove comprise a 143 hectare property, approximately 64,500 (7 year old) olive trees, an appoximately one gigalitre per annum water licence (carried at cost) and depreciable plant and equipment and other grove related infrastructure.

• (6) Tax Provision Item (c) includes a provision for income tax on net unrealised gains on the Company’s 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 T | (08) 9214 9797 Company Secretary E | vho@ orionequities.com.au

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