(Incorporated and registered in Zimbabwe with limited liability under Certificate of Registration number 552/66 and Certificates of Change

of Name dated 22 June 1979)

ABRIDGED GROUP STATEMENT OF CASH FLOWS

12 months ended 31-Mar-13 US$ Cash flows from operating activities Operating loss from operations before interest and taxation Adjusted for: Depreciation of property, plant and equipment Environmental rehabilitation costs Loss on disposal of property, plant and equipment Operating cash flow before working capital changes (Increase)/decrease in inventories Decrease in trade and other receivables (Decrease)/increase in trade and other payables Net cash flows from operations Returns on investments and servicing of finance Interest received Interest paid Exchange gains Taxes paid Zimbabwe income taxes (13,097,369) 208,414 (134,008) (13,022,963) (1,256,088) 135,944 (183,297) (14,326,404) 12 months ended 31-Mar-12 US$ (12,416,163) 249,466 158,983 (31,946) (12,039,660) 208,535 1,487,824 3,481,761 (6,861,540)

(BNC, the Corporation, the Group, or the Company)

Address: Trojan Nickel Mine, Trojan Mine Road, P.O. Box 35, Bindura, Zimbabwe

NOTICE TO SHAREHOLDERS Preliminary Unaudited Group Financial Results for the twelve months ended 31 March 2013
CHAIRMANS STATEMENT
OVERVIEW BNC's Shangani mine, smelter and refinery remained under care and maintenance for the year under review. In September 2012, the Company successfully raised US$23 million through a renounceable rights offer, towards funding the restart of its Trojan mine operation. As the start up of operations would focus on Trojan mine only, it was necessary to restructure the nonoperating business units. As a result, the Company undertook a retrenchment exercise whereby approximately 1 000 positions were made redundant. Work started on the refurbishment of the milling section in October 2012 and was successfully concluded in February 2013. The first concentrate was shipped in April 2013 in terms of an off take agreement between Glencore International and the Company. RIGHTS ISSUE AND PRIVATE PLACEMENT The Corporation held an extraordinary general meeting on 29 June 2012 at which the required approval was given to: Increase the authorised share capital of the Company from 500 000 000 to 3 000 000 000 ordinary shares at US$0.000 010 307 each. Raise capital by way of a renounceable rights offer. Place shares to selected creditors of the Company. Issue shares to the underwriter, Zimnick Limited, a wholly owned subsidiary of Mwana Africa Plc. Place the unissued shares under the control of the Directors. The rights issue was successfully concluded and US$21 million was raised. On 10 September 2012, it was announced that 67 153 635 shares were taken up by shareholders or third parties who acquired rights and 632 920 259 shares were taken up by the underwriter, Zimnick Limited, in terms of the underwriting agreement. The shares were taken up at a nominal value of US$0.00 010 307 each in the Company's share capital at a subscription price of US$0.03 per share. On 21 September 2012, a further 384 091 408 shares were issued through a private placement at the same price as that for the rights issue. Of these shares, 316 975 427 were issued to creditors and employees while 67 115 981 were issued to Zimnick Limited for a cash amount of US$2 million. FINANCIAL RESULTS The results for the year under review are in line with what would be expected from a business on care and maintenance and one which is starting up operations. During the period, there has been a strong focus on cash management and cash resources have been applied cautiously and only where necessary. Gross turnover was US$1 million (2012: US$1.5 million), following the sale of leach alloy from stock. The Corporation reported a loss attributable to ordinary shareholders of US$12.9 million (2012: loss of US$12.8 million). The loss is as a consequence of the low turnover and care and maintenance costs. Included in the loss for the current year is US$7.1 million relating to retrenchment costs arising from the restructuring of the Company. In terms of IAS 16, the Corporation has revised its accounting policy on property, plant and equipment. The revision allows the Corporation to capitalise any costs which are directly attributable to bringing the asset to the location and condition necessary for it to be capable of operation in the manner intended by management. The revision has no impact on prior periods. Operating costs amounting to US$5 million were capitalised for the six months to 31 March 2013 as a consequence of this revision. Non-current assets increased year on year to US$44.2 million (2012: US$35.1 million). The increase is as a result of the capitalisation of costs already referred to, as well as the capitalisation of costs associated with the refurbishment of the milling section at Trojan mine. Current assets of US$14.5 million (2012: US$8.3 million) increased due to the increase in inventories by US$1.2 million as operations started gearing up towards full production, and an increase in cash reserves following the rights issue. Debtors remained in line with the prior year. Current liabilities decreased to US$23.6 million (2012: US$40.7 million) due to the reduction in creditors following the rights issue as well as a write back of amounts due to employees as a result of the settlement reached with them. The long term loan increased to US$10.7 million (2012: US$5.3 million). This amount was provided as a shareholders loan by Mwana Africa Plc. The funds were utilised to finance operations during care and maintenance. The net cash position of the Corporation improved significantly following the re-capitalisation of the Company with a net cash position of US$5.4 million (2012: US$0.4 million). MARKETS The London Metal Exchange (LME) cash settlement price for nickel for the period was US$7.69/lb compared to US$9.56/lb in the prior year. Nickel prices traded in a compressed range mainly because of the weak state of the global economy. Nickel supply was good as a number of new projects either ramped up or came into production. Output, therefore, exceeded weak demand and LME stocks have now risen to record highs. The nickel market is currently in a surplus, and the fundamentals do not support a price increase. At the current level, analysts expect that the price is now trading in the cost curve of producers (including pig iron production). Going forward, the balance between Nickel Pig Iron (NPI) cost levels and stainless steel demand will determine price levels. An upside to the nickel price will come from an improvement in global macro conditions or enforcement (partial or complete) of the Indonesian export ban which would reduce NPI production in China. In the period under review, no nickel sales were made as the operations continued to be under care and maintenance. Two parcels of semi-processed material from the refinery were sold. OPERATIONS As indicated under the overview, the refurbishment programme on the milling section was completed in February 2013, and production started during the same month. The mining equipment and processing plant are currently being optimised and teething problems associated with re-commissioning, after a prolonged shut down, are being attended to. The Company shipped its first concentrate during April 2013. Thereafter, shipments have continued regularly, in line with output. The Company forecasts that steady state levels of production should be reached in December 2013. SAFETY, HEALTH AND ENVIRONMENT Notwithstanding the suspension of operations, safety, health and environment issues remain of paramount concern to the Board and management, and the Corporation continues to provide health services from its on-site health centres. As and when the Corporation resumes operations, application will be made for re-certification in terms of OHSAS 18 001 and ISO 14 001. We were saddened by the loss of an employee on 16 February 2013, through an accident underground. He died from injuries sustained while working in the Shaft Re-deepening section of Trojan mine. Our heartfelt condolences go to his family on this sad loss. HUMAN RESOURCES The Corporation has retained key management during the care and maintenance period and is in the process of securing human skills as and when such resources are required in terms of the re-commissioning plan. The reorganisation has been successfully concluded, and management continues to engage constructively with the worker leadership with regard to the re-commissioning of operations. Labour litigation cases are being handled on a case-by-case basis. OUTLOOK The Company is well positioned operationally and has undertaken the necessary work to ensure that the plant is successfully re-commissioned. In January 2013, the Corporation engaged SRK Consulting (UK) Limited to complete a Competent Persons Report on the operations of Trojan mine. This report was finalised in May 2013 and it concluded that the Corporation's restart plans are both realistic and achievable. However, the success of these plans depends on the Corporation's ability to raise sufficient funding in the coming year. The nickel price remains under pressure and the forecast is that it will remain as such in the near future. Improvement against the current nickel price is only anticipated next year. GOING CONCERN The Group incurred a loss before tax for the year ended 31 March 2013 amounting to US$12.9 million (2012: US$12.8 million) and, as of that date, total assets exceeded total liabilities by US$3.3 million (2012: Total liabilities exceeded total assets by US$15.2 million). The Group continues to incur losses. During the year, the Group raised sufficient capital to fund the restart of Trojan Nickel Mine for approximately nine months from date of commencement in October 2012. To continue with the restart, the Directors did anticipate that further financing would be required to fund the operations into year two of the restart plan. It was anticipated that this funding would be provided by Mwana Africa Plc through a shareholders loan. Unfortunately, this has not materialised. To enable the Group to continue operating, management has devised a plan whereby the Group will be mining high grade massives over the next eighteen months. The

414,612 (110,328) 499,274 803,558 (13,522,846)

111 (789,508) 595,882 (193,515) (7,055,055)

Net cash flows from operating activities Cash flows from investing activities Purchase of property, plant and equipment Proceeds from sale of property, plant and equipment Net cash flows from investing activities Net cash flows before financing activities Cash flows from financing activities Staff loans repaid Long term loan received Shares issued Net cash flows from financing activities Increase/(decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year

(9,364,648) 179,200 (9,185,448) (22,708,294)

(310,021) 78,100 (231,921) (7,286,976)

1,966 4,707,969 23,015,696 27,725,631 5,017,337 417,955 5,435,292

7,313 5,292,031 5,299,344 (1,987,632) 2,405,587 417,955

ABRIDGED GROUP STATEMENT OF FINANCIAL POSITION

As at 31-Mar-13 US$ 12,474 31,585,412 (28,345,286) 3,252,600 10,757,648 8,536,907 12,649,381 31,943,936 23,569,412 58,765,948 As at 31-Mar-12 US$ 1,299 177,681 (15,390,450) (15,211,470) 5,388,654 12,649,381 18,038,035 40,692,826 43,519,391

Equity and liabilities Share capital Non-distributable reserves Retained loss Total equity Non-current liabilities Long term Loan Long term payables
Environmental rehabilitation provision

Current liabilities Trade and other payables Total equity and liabilities Assets Non-current assets Current assets Total assets

44,232,059 14,533,889 58,765,948

35,122,983 8,396,408 43,519,391

mining of these massives would have taken place later in the life of the mine. However, under the circumstances, management has revised the production schedule. The massives will be mined in conjunction with the current production schedule. The additional revenue to be derived from this new plan will enable the Group to become self sustaining and generate sufficient cash over the next six months to fund operations without the need for further funding from shareholders. The plan requires short term bridging finance of approximately US$4.5 million. Such funding is required to settle current creditors and will be repaid within the short term. The future funding of the Group's operations is, therefore, dependent on the successful execution of the revised production plan and conclusion of negotiations in respect of the bridging finance required. Should the Corporation fail to execute the revised production plan and raise the bridging finance, a material uncertainty exists which may cast significant doubt as to the ability of the Corporation and its subsidiaries to continue as a going concern. Therefore, the Corporation and its subsidiaries may be unable to realise its assets and discharge its liabilities in the normal course of business. These financial statements are prepared on the basis of accounting policies applicable to a going concern. This basis presumes that funds will be available to finance future operations and that the realisation of assets and settlement of liabilities will occur in the ordinary course of business. DIVIDEND Under the current circumstances, it is not feasible to declare a dividend for the period under review. APPRECIATION The Board pays tribute to management and staff for their dedication and hard work during the year. By Order of the Board Bindura Nickel Corporation Limited C F Mukanganga Company Secretary 30 July 2013

ABRIDGED GROUP STATEMENT OF CHANGES IN EQUITY

Share capital US$ Balances at 31 March 2011 Total comprehensive loss for the year Other comprehensive loss for the year Loss for the year attributable to ordinary shareholders Transactions with owners of the company recognised directly into equity Contributions by and distributions to owners of the company Balances at 31 March 2012 1,299 177,681 (15,390,450) (15,211,470) 1,299 Non-distributable reserves US$ 177,681 Retained earnings US$ (2,631,930) Total US$ (2,452,950)

(12,758,520) (12,758,520)

Total comprehensive loss for the year Other comprehensive loss for the year Loss for the year attributable to ordinary shareholders Transactions with owners of the company recognised directly into equity Contributions by and distributions to owners of the company Balances at 31 March 2013 11,175 12,474 31,407,731 31,585,412 (28,345,286) 31,418,906 3,252,600 -

(12,954,836) (12,954,836)

NOTES TO THE ABRIDGED GROUP FINANCIAL STATEMENTS

1 Presentation The financial statements are presented in United States dollars (US$), which is the company's functional currency. 2 Principal group accounting policies The financial results for the year ended 31 March 2013 have been prepared in accordance with International Financial Reporting Standards (IFRSs), the Zimbabwe Stock Exchange Listing Rules and the Companies Act (Chapter 24:03). All accounting policies have been applied consistently. 3 Loss per share Loss attributable to shareholders (US$) Weighed average number of shares Basic loss per share (cents) 4 Capital expenditure 5 Capital commitments Authorised by Directors and contracted for 6 No dividends have been declared in 2013. 31 March 2013 31 March 2012 (12,954,836) (12,758,520) 675,556,796 126,048,355 (2) 9,364,648 (10) 310,021

Nickel production
Gross nickel production BNC production Third party production BNC Leach alloy scrap sales

12 months ended 31-Mar-13 Tonnes

-

12 months ended 31-Mar-12 Tonnes

-

154

226

ABRIDGED GROUP STATEMENT OF COMPREHENSIVE INCOME

12 months ended 31-Mar-13 US$ Turnover Nickel By-products Toll refining Leach alloy scrap 4,642 1,021,441 1,026,083 (5,819,131) (13,097,369) 142,533 (12,954,836) (12,954,836) (12,954,836) (2) 12 months ended 31-Mar-12 US$ 309,346 1,199,365 1,508,711 (12,714,744) (12,416,163) (342,357) (12,758,520) (12,758,520) (12,758,520) (10)

973,219

611,763

By order of the Board Bindura Nickel Corporation Limited C F Mukanganga Company Secretary 30 July 2013

Gross loss Operating loss Net finance income/(costs) Loss before taxation Taxation Loss after taxation Other comprehensive income/(loss) net of tax Total other comprehensive income/(loss) Total comprehensive loss for the year Basic loss per ordinary share (cents)

Directors: K K Mpinga* (Chairman), J Arthur*, O M Chidawu*, N Kudenga*, B Manhando, T Mashungupa, M A Masunda*, D E H Murangari, D A R McAlister*, I S Cochrane* (Alternate Director) COMPANY SECRETARY C F Mukanganga *(Non-Executive)