ORION EQUITIES LIMITED — Net Asset Value 2012

Sep 12, 2012

Thursday, 13 September 2012

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MARKET ANNOUNCEMENT

Net Tangible Asset Backing – 31 August 2012

Month Ending: Net tangible assets (NTA) (before tax) Pre-Tax NTA Backing per share Net tangible assets (after tax) Post-Tax NTA Backing per share Based on total issued share capital The NTA position comprises the following items: Net Tangible Assets	% Change		31 August 2012 Consolidated 31 July 2012 Consolidated
	-1.12%		$11.952m $12.087m
	-1.12%		$0.671 $0.679 $11.952m $12.087m
			$0.671 $0.679 17,814,389 17,814,389
			Current Month Previous Month $’millions $’millions 4.305 4.789 2.086 1.669 1.710 1.836 0.008 0.007 1.640 1.480 1.894 1.933 0.309 0.373 $11.952 $12.087 - - - - - - $11.952 $12.087
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 securities Investment in property (held for development/resale) Agribusiness assets (including inventories) Net cash/receivables/payables/other assets/provisions Pre-Tax NTA Tax Provisions: (a) Prior year tax (b) Current year tax (c) Net deferred tax asset / (liability) Post-Tax NTA

Subsequent to 31 August month end, the Company sold its 6,332,744 shareholding in AUQ realising gross proceeds of $1.58 million and a net gain (from cost) of $0.1 million.

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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

20120913 OEQ ASX NTA Backing as at 31 August 2012.docx

Notes:

• (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 21 of the Company’s 2012 Full Year Report).

Accordingly, as at 31 August 2012, the Company’s 20,513,783 shares (27.97% interest) (31 July 2012: 20,513,783 shares and 27.97%) in BEL has a carrying value of $0.2098 per share ($4.305m); this compares with BEL’s last bid price on ASX of $0.165 per share ($3.385m) and BEL’s after tax NTA backing of $0.26 per share ($5.332m) at month end.

• (2) The fair value of investments in ASX listed Strike Resources Limited ( SRK ) comprise 16,690,802 shares (31 July 2012: 16,690,802 shares) with a value of $0.125 per share (based on the closing bid price on 31 August 2012) (31 July 2012: $0.10). The Company notes that SRK’s closing bid price on 11 September 2012 was $0.12 per share.

• (3) The fair value of investments in ASX listed Alara Resources Limited ( AUQ ) comprise 6,332,744 shares (31 July 2012: 6,332,744 shares) with a value of $0.27 per share (based on the closing bid price 31 August 2012) (31 July 2012: $0.29). Subsequent to 31 August month end, the Company sold its entire shareholding in AUQ realising gross proceeds of $1.58 million and a net gain (from cost) of $0.1 million.

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

• (5) Investment in property (held for resale) is carried at net realisable value (refer note 1.13 (Summary of Accounting Policies - Property held for Resale) at page 23 of the Company’s 2012 Full Year 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 23 of the Company’s 2012 Full Year 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 | cosec@orionequities.com.au

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