ABRIDGED UNAUDITED FINANCIAL RESULTS

FOR THE HALF YEAR ENDED 30 JUNE 2013 STATEMENT OF FINANCIAL POSITION as at 30 June 2013
Unaudited 30.06.13 US$ ASSETS Non-current assets Property, plant and equipment Unaudited 30.06.12 US$ Audited 31.12.12 US$ Balance at start of period Total comprehensive income for period 9 392 724 10 050 553 9 722 792 3 543 862 Current assets Inventories Accounts receivable Bank and cash 5 762 556 4 271 629

STATEMENT OF CHANGES IN EQUITY for the half year ended 30 June 2013
Unaudited 30.06.13 US$ 4 271 629 (727 767) Unaudited 30.06.12 US$ 6 378 565 (616 009) Audited 31.12.12 US$ 6 378 565 (2 106 936)

Notes on the Financial statements

1 758 696 1 594 219 37 503 3 390 418 12 783 142 1 376 367 1 387 135 25 727 2 789 229 12 839 782 1 316 424 932 903 142 240 2 391 567 12 114 359 1. Accounting policies The accounting policies applied in the preparation of these interim financial statements are consistent with those used in the preparation of the companys audited financial statements in the year ended 31 December 2012 2. Basis of presentation The financial Statements have been prepared in conformity with International Financial Reporting Standards (IFRS's), promulgated by the International Standards Board (IASB), which includes standards and interpretations approved by the IASB as well as the International Accounting Standards (IAS's) and STanding Interpretations Commitee (SIC) interpretation issued under previous constitutions. The financial statements are based on statutory records that are maintained under the historical cost convention and expressed in United States dollars (US$). Unaudited 30.06.13 US$ 3. Depreciation 4. Capital expenditure 330 068 Unaudited 30.06.12 US$ 333 464 (11 291) Audited 31.12.12 US$ 656 275 (16 149)

Total assets EQUITY AND LIABILITIES Equity Share capital Share options reserve Non distributable reserve Accumulated loss

536 588 19 200 9 464 397 (6 476 323) 3 543 862

536 588 19 200 9 464 397 (4 257 629) 5 762 556

536 588 19 200 9 464 397 (5 748 556) 4 271 629

Non-current liabilities Deferred tax Long term Borrowings Current liabilites Short term loans Accounts payable Bank overdraft

1 690 083 400 000 2 090 083 911 167 6 110 411 127 619 7 149 197 9 239 280 12 783 142

2 385 357 2 385 357 80 000 3 973 518 638 350 4 691 868 7 077 225 12 839 782

1 846 311 330 000 2 176 311 192 500 5 381 941 91 978 5 666 419 7 842 730 12 114 359

CHAIRMANS STATEMENT

For the half year ended 30 June 2013

Total liabilities Total equity and liabilities

STATEMENT OF COMPREHENSIVE INCOME for the half year ended 30 June 2013
Unaudited 30.06.13 US$ Unaudited 30.06.12 US$ Audited 31.12.12 US$

Introduction The results for the half year to 30 June 2013 are presented to you against the backdrop of multiple economic environmental challenges dominated by acute low liquidity levels. Economic growth forecasts were revised from 4% to 3.4% while year on year inflation closed the first half at 1.87%. The expected resurgence of the mining sector and implementation of infrastructural water projects did not take off as was expected at last year end. Performance The first half of the year focused more on fund raising initiatives which resulted in the company accessing USD 1m from the DIMAF (Distressed and Marginalised Areas Fund) facility in March 2013. The funds were applied towards economic sourcing of raw materials thereby enhancing the company's competitiveness in the market. Due to the low raw materials stock levels and order book in the first half of the year, volumes at 447 metric tonnes were 30% lower than the 641 tonnes recorded in the same period prior year. The turnover at US$2 million was also 30% lower than prior year's US$2.9 million. Cost reduction initiatives resulted in savings of 10%. The accessing of cheaper DIMAF funds resulted in savings in the cost of funds. However, the increased borrowings resulted in finance costs being 39% above prior year at US$103 000. The operating loss for the half year at US$883 000 was a decline of 21% compared to the US$732 000 recorded in the prior year as capacity utilisation reduced to an average 15%. Outlook Fund raising initiatives will continue in the second half of the year in an effort to improve

the company's market positioning and competitiveness. Due to low levels of investment in plant and machinery since dollarization, the sought funds will be applied towards additional working capital and plant optimisation. This effort is expected to address the anticipated improved demand of the company's products from both the mining and agricultural sectors which are expected to rebound in the short term. Although competition from imports will be inevitable, the company believes that with the appropriate funding it can fend off competition through competitive pricing, product and adequate technical support. Dividend At a meeting held on 17 September 2013, the Board considered that in light of the company's performance in the period under review and the need for a successful turnaround it was not prudent to declare a dividend for the period to 30 June 2013. Directorate On the 26th of June 2013 Mr Israel Murefu was appointed to the Board and we welcome him. Appreciation The perseverance of employees, management, support from all our stakeholders and the wise counsel from my fellow Directors is greatly appreciated. I thank you all for supporting us through this difficult period. By Order Of The Board Chairman 17 September 2013

Total revenue Gross profit Operating loss Net financing cost Loss before tax Income credit Loss after tax

2 049 299 436 683 (781 069) (102 928) (883 997) 156 230 (727 767)

2 930 916 687 754 (658 632) (73 672) (732 304) 116 295 (616 009)

5 067 696 684 310 (2 601 680) (160 593) (2 762 273) 655 337 (2 106 936)

Total comprensive income for the period Number of shares in issue (000s) Basic earnings per share (cents)

(727 767) 536 589 (0.00136)

(616 009) 536 589 (0.00115)

(2 106 936) 536 589 (0.00393)

STATEMENT OF CASH FLOWS for the half year ended 30 June 2013
Unaudited 30.06.13 US$ Net cash flow from operations Net cash outflows from servicing finance Net cash outflows from investing activities Net cash inflows/(outflows) from financing activities Net cash (outflow)/inflows (826 126) (102 928) 788 667 (140 387) Unaudited 30.06.12 US$ (3 135) (73 672) (11 287) (260 000) (348 094) Audited 31.12.12 US$ 133 447 (1 173) 182 500 314 774

DIRECTORS:

G.G. Nhemachena (Chairman), S.P . Bango (Deputy Chairperson), W. Tsuroh* (Managing Director), C.E. Dhlembeu, O. M Moyo, P .C.C. Moyo, I. Murefu, Ald. A. M. Sibanda P . Munyanyi *(Finance ), R. Mavengere, T. Kufazvinei * executive