ORION EQUITIES LIMITED — Net Asset Value 2011

Oct 13, 2011

Friday, 14 October 2011

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MARKET ANNOUNCEMENT

Net Tangible Asset Backing – 30 September 2011

Month Ending:Net tangible assets (NTA) (before tax)Pre-Tax NTA Backing per shareNet tangible assets (after tax)Post-Tax NTA Backing per shareBased on total issued share capitalThe NTA position comprises the following items:Net Tangible Assets	%Change30	September 2011Consolidated31 August 2011Consolidated
	-12.13%	$15.211m$17.311m
	-12.13%	$0.8539$0.9717$15.211m$17.311m
		$0.8539$0.971717,814,38917,814,389
		Current MonthPrevious Month$’millions$’millions
Investment in listed Associated Entity:(a)Shares in Bentley Capital Limited (BEL)Investments in other listed securities:(a)Shares in Strike Resources Limited (SRK)(b)Shares in Alara Resources Limited (AUQ)(c)Shares in other listed securitiesInvestment in property (held for development/resale)Agribusiness assets (including inventories)Net cash/receivables/payables/other assets/provisionsPre-Tax NTATax Provisions:(a)Prior year tax(b)Current year tax(c)Net deferred tax asset / (liability)Post-Tax NTA		5.4866.8114.0895.0071.6472.0260.0690.0681.8001.8002.4592.578(0.339)(0.980)
		$15.211$17.311
		------
		$15.211$17.311

The Company notes that it will be receiving $1,025,689 cash from Bentley Capital Limited under a 5 cents per share return of capital distributed by Bentley on 14 October 2011. The Company’s entitlement to receive these monies is not provided for in the September 2011 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

20111014 OEQ ASX NTA Backing as at 30 September 2011

Notes for Current Month NTA Position:

• (1) The Company’s investment in BEL, an Associated Entity (i.e. in which the Company has a greater than 20% interest), is accounted for under the equity method in the consolidated financial statements.

Under the equity method, the carrying amount of 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 such Associated Entity (refer note 1.3 (Summary of Accounting Policies – Investments in Associates) at page 18 of the Company’s 2011 Annual Report).

Accordingly, as at 30 September 2011, the Company’s 20,513,783 shares (27.93% interest) (31 August: 20,513,783 shares and 28.26%) in BEL has a carrying value of $0.2674 per share ($5.486m); this compares with BEL’s last bid price on ASX of $0.22 per share ($4.513m) and BEL’s after tax NTA backing of $0.317 per share ($6.503m) at month end.

• (2) The fair value of investments in ASX listed Strike Resources Limited ( SRK ) comprise 16,690,802 shares (31 August: 16,690,802 shares) with a value of $0.245 per share (based on the closing bid price on 30 September 2011) (31 August: $0. 30). The Company notes that SRK’s closing bid price on 14 October 2011 was $0.245 per share.

• (3) The fair value of investments in ASX listed Alara Resources Limited ( AUQ ) comprise 6,332,744 shares (31 August: 6,332,744 shares) with a value of $0.26 per share (based on the closing bid price on 30 September 2011) (31 August: $0.320). The Company notes that AUQ’s closing bid price on 14 October 2011 was $0.295 per share.

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

• (5) Investment in property (held for development/resale) is carried at net realisable value (refer note 1.13 (Summary of Accounting Policies - Property held for Resale) at page 20 of the Company’s 2011 Annual Report.

• (6) Agribusiness assets comprises a 143 hectare property comprising olive grove land and trees, depreciable plant and equipment, grove related infrastructure and olive oil inventories. The olive grove land and trees are carried at net realisable value (refer note 1.14 (Summary of Accounting Policies – Property, Plant and Equipment) at page 21 of the Company’s 2011 Annual Report).

• (7) Tax Provision Item (c) includes where applicable, 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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