ORION EQUITIES LIMITED — Net Asset Value 2008

Nov 13, 2008

Friday, 14 November 2008

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MARKET ANNOUNCEMENT

Net Tangible Asset Backing – 31 October 2008

Month Ending:%Change31 October 2008Consolidated30 September 2008ConsolidatedNet tangible assets (before tax)$23.532m$28.401mPre-Tax NTA Backing per share-17.14$1.3209$1.5942Net tangible assets (after tax)$22.981m$26.424mPost-Tax NTA Backing per share-13.03$1.2900$1.4833Based on total issued share capital17,814,38917,814,389The NTA position comprises the following items:Current MonthPrevious MonthNet Assets$’millions$’millionsInvestments in listed Associated Entities:(a)Shares in Bentley International Limited (BEL)3.6654.049(b)Shares in Scarborough Equities Limited (SCB)4.0994.358Investments in other listed securities:(a)Shares in Strike Resources Limited (SRK)6.2008.706(b)Shares in other listed securities1.0121.991Investments in unlisted options1.0721.695Investment in property3.6503.650Investment in Koorian Olive Grove3.4203.420Provision for dividend(0.028)(0.028)Net cash / other assets / provisions0.4430.560Pre-Tax NTA23.53228.401Tax Provisions:(a)Prior year tax(0.058)(0.058)(b)Current year tax(5.311)(5.311)(c)Net deferred tax asset / (liability)4.8183.392Post-Tax NTA22.98126.424	%Change31 October 2008Consolidated30 September 2008Consolidated	%Change31 October 2008Consolidated30 September 2008Consolidated
		$23.532m$28.401m
	-17.14	$1.3209$1.5942$22.981m$26.424m
	-13.03	$1.2900$1.483317,814,38917,814,389
		Current MonthPrevious Month$’millions$’millions3.6654.0494.0994.3586.2008.7061.0121.9911.0721.6953.6503.6503.4203.420(0.028)(0.028)0.4430.56023.53228.401(0.058)(0.058)(5.311)(5.311)4.8183.39222.98126.424
Investments in listed Associated Entities:(a)Shares in Bentley International Limited (BEL)(b)Shares in Scarborough Equities Limited (SCB)Investments in other listed securities:(a)Shares in Strike Resources Limited (SRK)(b)Shares 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

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www.orionequities.com.au

ORION EQUITIES LIMITED

A.B.N. 77 000 742 843

Level 14, The Forrest Centre, 221 St Georges Terrace, Perth, Western Australia 6000 T | (08) 9214 9797 F | (08) 9322 1515 E

ASX Code: OEQ

E | info@orionequities.com.au

20081114 OEQ ASX NTA Backing as at 31 October 2008.doc

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 31 October 2008 the Company’s:

• (i) 11,587,938 shares (28.80% interest) (30 September 2008: 11,587,938 shares and 28.80%) in BEL has a carrying value of $0.3162 per share ($3.665m); this compares with BEL’s last bid price on ASX of $0.260 per share ($3.013m) and BEL’s after tax NTA backing of $0.3887 cents per share ($4.505m) at month end;

• (ii) 5,619,645 shares (28.47% interest) (30 September 2008: 5,619,645 shares and 28.47%) in SCB has a carrying value of $0.7294 per share ($4.099m); this compares with SCB’s last bid price on ASX of $0.405 per share ($2.276m) and SCB’s after tax NTA backing of $0.7166 per share ($4.027m) at month end.

• (2) The fair value of investments in ASX listed Strike Resources Limited ( SRK ) comprise 13,190,802 shares (30 September 2008: 13,190,802 shares) with a value of $0.470 (based on the closing bid price on 31 October 2008) (30 September 2008: $0.66) each. The Company notes that SRK’s closing bid price on 13 November 2008 was $0.37.

• (3) The fair value of investments in other listed securities are based on each securities’ last bid price on market at month end.

• (4) The fair value of investments in unlisted options, being the following unlisted options in 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 $0.47 (based on the closing bid price on 31 October 2008) (30 September 2008: $0.66). The Company notes that SRK’s closing bid price on 13 November 2008 was $0.37;

• (ii) A risk free rate of return of 4.46% per annum (based on the 3 year bond yield as at 31 October 2008) (30 September 2008: 5.11% per annum).

• (iii) An estimated future volatility of SRK’s share price of 80% (30 September 2008: 80%).

• (5) Investment in real property is carried at net realisable value.

• (6) Investment in the Koorian Olive Grove comprises a 143 hectare property, approximately 64,500 (9 year old) olive trees, an approximately one gigalitre per annum water licence and depreciable plant and equipment and other grove related infrastructure. The Koorian land and trees are carried at net realisable value.

• (7) 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 Chairman

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

William Johnson Director

T | (08) 9214 9797

E | wjohnson@orionequities.com.au

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