ORION EQUITIES LIMITED — Net Asset Value 2020

Dec 8, 2020

Wednesday, 9 December 2020

ASX Code: OEQ

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MARKET ANNOUNCEMENT

Net Tangible Asset Backing – 30 November 2020

Month Ending: % Change 30 November 2020 Consolidated 31 October 2020 Consolidated Net tangible assets (NTA) (before tax) $3.849m $2.729m Pre-Tax NTA Backing per share +41.08% $0.246 $0.1744 Net tangible assets (after tax) $3.849m $2.729m Post-Tax NTA Backing per share +41.08% $0.246 $0.1744 Based on total issued share capital 15,649,228 15,649,228 The NTA position comprises the following items: Current MonthPrevious Month Net Tangible Assets $’millions $’millions	% Change 30 November 2020 Consolidated 31 October 2020 Consolidated	% Change 30 November 2020 Consolidated 31 October 2020 Consolidated
	+41.08%	$3.849m $2.729m $0.246 $0.1744
	+41.08%	$3.849m $2.729m $0.246 $0.1744
		15,649,228 15,649,228
		Current MonthPrevious Month $’millions $’millions
Investment in listed Associated Entity: (a) Shares in Bentley Capital Limited (ASX:BEL) Investments in other listed securities: (a) Shares in Strike Resources Limited (ASX:SRK) Investment in property (held for development/resale) 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		1.439 0.762 1.350 0.88 1.100 1.100 (0.040) (0.013)
		3.849 2.729
		- - - - - -
		3.849 2.729

Orion has valued its 10 million shareholding in Strike Resources Limited (ASX:SRK) based on the $0.135 last bid price as at 30 November (31 October: $0.088). Bentley notes that Strike’s current bid price was $0.15 (as at 9 December 2020).

www.orionequities.com.au

Orion Equities Limited

A.B.N. 77 000 742 843

Level 2, 31 Ventnor Avenue, West Perth, Western Australia 6005 ASX : OEQ T | (08) 9214 9797 F | (08) 9214 9701

E |info@orionequities.com.au

20201209 OEQ ASX NTA Backing as at 30 November 2020.docx

Notes:

• (1) The Company’s investment in Bentley Capital Limited (ASX: 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 also Note 20 (Investments in Associates) on pages 37 and 38 of the Company’s 30 June 2020 Annual Report for further details in this regard.

Accordingly, as at 31 October 2020, the Company’s 20,513,783 shares (26.95% interest) (31 October 2020: 20,513,783 shares and 26.95%) in BEL have a $0.1.439m carrying value; this compares with BEL’s last bid price on ASX of $0.065 per share ($1.333m) and BEL’s after-tax NTA backing of $0.1303 per share ($2.673m)[1] , as at month end.

• (2) The fair value of investments in ASX-listed Strike Resources Limited (ASX: SRK ) comprise 10,000,000 shares (31 October 2020: 10,000,000 shares) with a value of $0.135 per share (based on the closing bid price as at 30 November 2020) (31 October 2020: $0.088).

• (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) The fair value of Investment in property (held for resale) is based on the Directors’ judgement, having regard to the most recent independent valuation report dated 29 July 2019 and an assessment of current pertinent real estate market conditions.

• (5) 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). Refer also Note 6 (Tax) on pages 26 to 28of the Company’s 30 June 2020 Annual Report for further details in this regard.

AUTHORISED FOR RELEASE - FOR FURTHER INFORMATION:

Victor Ho Executive Director & Company Secretary

T | (08) 9214 9797

• E | cosec@orionequities.com.au

1 Refer BEL’s ASX Announcement dated [14] December 2020: NTA Backing as at 30 November 2020

2