ORION EQUITIES LIMITED — Net Asset Value 2012

Jun 14, 2012

Thursday, 14 June 2012

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MARKET ANNOUNCEMENT

Net Tangible Asset Backing – 31 May 2012

Month Ending:	% Change	31 May 2012Consolidated	30 April 2012Consolidated
Net tangible assets (NTA) (before tax)	-11.5%	$13.200m	$14.922m
Pre-Tax NTA Backing per share		$0.741	$0.838
Net tangible assets (after tax)	-11.5%	$13.200m	$14.922m
Post-Tax NTA Backing per share		$0.741	$0.838
Based on total issued share capital		17,814,389	17,814,389
The NTA position comprises the following items:
		Current Month	Previous Month
Net Tangible Assets		$’millions	$’millions
Investment in listed Associated Entity:
(a)Shares in Bentley Capital Limited (BEL)		4.863	5.295
Investments in other listed securities:
(a)Shares in Strike Resources Limited (SRK)		2.253	2.837
(b)Shares in Alara Resources Limited (AUQ)		1.900	2.375
(c)Shares in other listed securities		0.071	0.073
Investment in property (held for development/resale)		1.800	1.800
Agribusiness assets (including inventories)		2.086	2.097
Net cash/receivables/payables/other assets/provisions		0.227	0.445
Pre-Tax NTA		$13.200	$14.922
Tax Provisions:
(a)Prior year tax		-	-
(b)Current year tax		-	-
(c)Net deferred tax asset / (liability)		-	-
Post-Tax NTA		$13.200	$14.922

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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

20120614 OEQ ASX NTA Backing as at 31 May 2012.doc

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 31 May 2012, the Company’s 20,513,783 shares (27.97% interest) (30 April 2012: 20,513,783 shares and 27.97%) in BEL has a carrying value of $0.2371 per share ($4.863m); 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 $0.29 per share ($5.874m) at month end.

• (2) The fair value of investments in ASX listed Strike Resources Limited ( SRK ) comprise 16,690,802 shares (30 April 2012: 16,690,802 shares) with a value of $0.14 per share (based on the closing bid price on 31 May 2012) (30 April 2012: $0.17). The Company notes that SRK’s closing bid price on 12 June 2012 was $0.11 per share.

• (3) The fair value of investments in ASX listed Alara Resources Limited ( AUQ ) comprise 6,332,744 shares (30 April 2012: 6,332,744 shares) with a value of $0.30 per share (based on the closing bid price 31 May 2012) (30 April 2012: $0.375). The Company notes that AUQ’s closing bid price on 12 June 2012 was $0.305 per share.

• (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 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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