ORION EQUITIES LIMITED — Net Asset Value 2016

Sep 13, 2016

Wednesday, 14 September 2016

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MARKET ANNOUNCEMENT

Net Tangible Asset Backing – 31 August 2016

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 2016 Consolidated 31 July 2016 Consolidated
	-3%	$7.031m $7.238m $0.449 $0.463
	-3%	$7.031m $7.238m $0.449 $0.463
		15,649,228 15,649,228
		Current Month Previous Month $’millions $’millions 3.020 3.200 0.460 0.420 0.011 0.007 0.280 0.284 1.350 1.350 2.001 2.004 (0.091) (0.027) $7.031 $7.238 - - - - - - $7.031 $7.238
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) Other listed securities Investment in units in managed fund Investment in property (held for development/resale) Agribusiness assets 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

On 31 August 2016, Bentley Capital Limited (ASX: BEL) announced its intention to pay a fully-franked dividend of 0.5 cent per share on or about 29 September 2016. Orion’s entitlement to such dividend would be $102,569.

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www.orionequities.com.au

ORION EQUITIES LIMITED

A.B.N. 77 000 742 843

Level 2, 23 Ventnor Avenue, West Perth, Western Australia 6005 T | (08) 9214 9797 F | (08) 9214 9701

E | info@orionequities.com.au

ASX Code: OEQ

20160914 OEQ ASX NTA Backing as at 31 August 2016

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 22 (Investments in Associates) at page 44 of the Company’s 2016 Full Year Report).

Accordingly, as at 31 August 2016, the Company’s 20,513,783 shares (27.20% interest) (31 July 2016: 20,513,783 shares and 27.20%) in BEL have a carrying value of $0.147 per share ($3.02m); this compares with BEL’s last bid price on ASX of $0.135 per share ($2.769m) and BEL’s after-tax NTA backing of $0.198 per share ($4.068m) at month end.

• (2) The fair value of investments in ASX-listed Strike Resources Limited ( SRK ) comprise 10,000,000 shares (31 August 2016: 10,000,000 shares) with a value of $0.046 per share (based on the closing bid price on 31 August 2016) (31 July 2016: $0.04).

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

• (4) Units invested in the managed fund are valued at the audited unit price published by the investment manager, as at month end – the unit price reflects the net asset backing of the fund; there is no buy/sell spread price; there is no recognition of realisation costs as there are no exit fees charged on redemption of units.

• (5) Investment in property (held for resale) was valued by an independent qualified valuer (a Certified Valuer and Associate Member of the Australian Property Institute) as at 30 June 2015 (refer Note 12 (Property held for Resale) at page 38 of the Company’s 2016 Full Year Report.

• (6) Agribusiness assets comprise a 143 hectare property comprising olive grove freehold land (with a water licence entitlement), olive trees (with approximately 64,500, 17 year old plantings) and depreciable plant and equipment. The land (with the water licence entitlement) was valued by an independent qualified valuer (a Certified Valuer and Associate Member of the Australian Property Institute) as at 30 June 2015 and the olive trees and depreciable plant and equipment are carried at net realisable value (refer Note 13 (Property, Plant and Equipment) at page 39 of the Company’s 2016 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 Executive Chairman E | info@orionequities.com.au Victor Ho T |(08) 9214 9797 Executive Director and Company Secretary E | cosec@orionequities.com.au

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