R I O Z I M L I M I T E D AU D I T E D A B R I D G E D G R O U P R E S U LT S

FOR THE YEAR ENDED 31 DECEMBER 2013 (Incorporated in Zimbabwe on 29 August 1956 under registration number 607/56)

Revenue increased $105.7m from $72.4m (2012) EBIDTA decreased $5.1m from $6.9m (2012)
CHAIRMANS STATEMENT
Introduction The company operated under challenging conditions characterised by lower revenue resulting from the 30% decline in international commodity prices and expensive nancing costs. The disruption at Renco in January and February 2013 cost the company $4.5million in lost revenue and cash. Economic Overview The economy continues to operate sub-optimally mainly because of liquidity constraints and minimum foreign direct investments. This coupled with the lack of suitable lines of credit and a fragile banking sector resulted in limited economic activity. I would, however, like to acknowledge the support rendered by the banks in spite of the limited resources at their disposal. I would also like to acknowledge the support given by regional institutions such as Afrexim Bank who have continued to support the revival of the Zimbabwean economy. Corporates, however, continue to remain under pressure due to high interest rate burden which in the main averaged about 20% per annum. Ination remained low at 0.33% on an annualised basis. The Zimbabwe Agenda for Sustainable Socio-Economic Transformation (Zim Asset) document launched during the period under review has all the necessary and correct ingredients. What is urgently required is to put in place a serious implementation program. If Zim Asset is to be a success we need undoubted commitment on the part of the implementers. More importantly, we need to eectively re-engage the international community. The national gold output declined 6.02% after the closure of some mines due to unsustainably high extracting costs against the background of declining gold prices. RioZim has continued to focus on the cost cutting measures whose success has helped the company to continue operating. Financial Performance The Groups revenue grew by 46% over last year and an operating prot of $2.1 million was recorded. This prot fell short of the $4.6million achieved in the comparative period mainly due to the decline in global metal prices. A net nance cost of $9.7 million (2012: $11.8 million) reversed the operating prot to a loss for the year of $4.7 million (2012: $5.5 million). Empress Nickel Renery (ENR) recorded a growth in turnover of 132% from $34 million in 2012 to $79 million in 2013. The growth in revenue was largely driven by the change in the ENR business model from toll-rening to own production. This business unit has since become the largest exporter of beneciated mineral products in Zimbabwe. The operation traded protably in 2013 even though the margins were negatively aected by the high electricity taris and stop and start costs resulting from inconsistent liquid oxygen supply which was addressed by the purchase and installation of a new oxygen plant commissioned in November 2013. The new plant produces oxygen at a signicant cost saving. The reverts project was concluded though at much lower revenues than anticipated due to falling metal prices. Renco achieved a slightly more than break-even operating prot. The decline in gold prices together with the disturbances experienced in the rst quarter aected the momentum of this business even though the operation remains a strategic asset for the Group. The cost cutting measures that commenced in 2012 aorded the Renco business continuity in the face of collapsing gold prices. The decline in metal prices hampered the Groups ability to service its debt at the rate that was planned. Bank facilities were renewed, even though capital repayments were made at a slower rate than expected by the nancial institutions. An approach is being worked on that will provide a long lasting solution to all lenders. The performance of the Groups associate, Murowa Diamonds (Private) Limited improved signicantly on the back of a 24% increase in price per carat partially attributable to an improvement in quality. A share of prot from associate of $823 000 (2012: loss of $267 000) was posted. Outlook The company continues to pursue growth through increased productivity at lower cost. To this end $3.3million was invested in capital improvements, mainly at ENR, which were completed in the rst quarter of 2014. As mentioned in my last report, a new mining operation based on the Cam & Motor ore bodies is on course with the design and manufacturing of the plant for the operation having commenced. The Engineering Procurement and Construction contract was recently signed and the company has every reason to believe that the operation will be on course to start production in the second half of 2014. Given that the mine was historically Zimbabwes largest gold producing mine, Cam & Motor should be an excellent addition to the Groups operating portfolio. The Groups restructuring is on course and the successful completion of this exercise will enable the Group to raise capital at subsidiary level whilst remaining an indigenous entity. The funds raised will be used to nance some of the Groups exciting project pipeline.

Operating profit decreased

$2.1m from $4.6m (2012)

Loss after tax decreased $4.7m from $5.5m (2012)

ABRIDGED STATEMENT OF FINANCIAL POSITION

ABRIDGED STATEMENT OF cOMPREHENSIVE INcOME

For the year ended 31 December 2013

As at 31 December 2013 2013 2012 2013 2012 US$000 US$000 US$000 US$000 Revenue Cost of sales Gross Profit Other income Distribution and selling expenses Administrative expenses (Loss) / Gain on disposal of property, plant and equipment Write o of buildings Operating profit Net Finance cost Finance revenue Finance cost Share of prot / (loss) of associate Loss before Taxation Income tax credit Loss for the Year Other comprehensive income Other comprehensive income to be reclassified to profit or loss in subsequent periods: Fair value gain on available -for- sale investment Income tax eect on other comprehensive income Net other comprehensive income to be reclassified to profit or loss in subsequent periods Other comprehensive income not to be reclassified to profit or loss: Re-measurement gains on dened benet plans Net other comprehensive income not to be reclassified to profit or loss in subsequent period Total other comprehensive income for the year, net of tax Total comprehensive loss Loss for the year attributable to: Owners of the parent Non-controlling interests Total comprehensive loss attributable to: Owners of the parent Non-controlling interests (3 142 ) (104 ) (4 849 ) (11 ) (4 860 ) (12.11) (12.11) (12.36) Total equity and liabilities 119 900 118 520 (4 561 ) (104 ) (4 665 ) (5 512 ) (11 ) (5 523 ) 1 419 ( 3 246 ) 663 ( 4 860 ) 1 407 540 1 407 540 12 123 15 (3 ) 129 (6 ) (1 ) - 2 104 ( 9 749 ) 127 ( 9 876 ) 823 ( 6 822 ) 2 157 ( 4 665 ) 180 (66 ) 4 639 ( 11 843 ) 27 ( 11 870 ) (267 ) (7 471 ) 1 948 ( 5 523 ) EQUITY & LIABILITIES Shareholders equity Share capital Share premium Available for sale reserves Other reserves Retained Earnings Equity attributable to equity holders of the parent Non-controlling interest 659 11 600 135 133 7 743 20 270 ( 425 ) 659 11 600 123 133 10 897 23 412 (321 ) Current assets Inventories 7 52 928 3 910 1 375 669 58 882 119 900 43 010 16 103 1 034 60 147 118 520 Trade and other receivables Derivative nancial assets Cash and cash equivalents Total current assets Total assets 105 682 (84 402 ) 21 280 2 361 ( 198 ) (21 338 ) 72 383 (47 428 ) 24 955 518 (1 718 ) (19 230 ) Assets Non current assets Property, plant and equipment Exploration, evaluation and development assets 5 6 34 941 14 238 5 842 193 5 804 61 018 34 566 13 540 5 019 147 5 101 58 373

Investment in associate company Available for sale investments Deferred tax assets Total non-current assets

19 845 23 091 Total equity Non-current liabilities Interest bearing loans and borrowings 8 17 640 1 426 230 4 611 24 061 8 570 2 878 1 501 4 611 17 679 Provisions 154 119 Deferred tax liability Employee benet liability Long term payable Total non-current liabilities Current liabilities Trade and other payables Tax payable Interest-bearing loans and borrowings 44 863 282 30 849 32 941 282 44 527

Total current liabilities 75 994 77 750 Total liabilities 100 055 95 429

Sustainability RioZim Foundation launched a new platform for collaboration with government, business, the diplomatic community, donors, educational institutions and NGOs to bring sustainable development to communities across Zimbabwe. Under a new Executive Director, the Foundation is uniquely placed to provide a bridge between communities and potential development partners. The RioZim Foundations vision continues to be to create, develop and promote collaborative sustainable development programs and make measurable social impact on the lives of the people in Zimbabwe. In 2014, the RioZim Foundation will build upon a 40 year legacy of hard work and success to forge strategic partnerships for the future. The Foundation aims to be the Partner of Choice in the implementation of development programs in education, food production and health in Zimbabwe. Directorate Dr S H S Makoni, Mr. T P B Mpofu and Mr. R M Tait resigned from the Board with eect from the 4th of December 2013. I would like to thank them for their immensely valuable contribution to the Group and wish them well in their future endeavors. I welcome to the board Mr. M T Sachak and Mr. L P Chihota who each add a wealth of experience and expertise. Appreciation I wish to extend my gratitude to the rest of the Board for their continued guidance, commitment and tireless eort in directing the company forward during what has proved to be a demanding nancial year. I also wish to thank management, sta and other stakeholders for their seless support during the period.

(3 246 ) Loss per share (cents) Basic (8.55 ) Diluted basic (8.55 ) Headline (8.55 )

ABRIDGED STATEMENT OF CHANGES IN EQUITY

For the year ended 31 December 2013 Attributable to equity holders of the parent Available Share Share for sale Other Retained capital premium reserve reserve earnings Total US$000 US$000 US$000 US$000 US$000 US$000 Balance as at 1 January 2012 Loss for the year Other comprehensive income Total comprehensive income Issued share capital Convertible debentures Transaction costs Balance as at 31 December 2012 Loss for the year Other comprehensive income Total comprehensive income Balance as at 31 December 2013 425 - - - 234 - - 659 - - - - 659 500 - - - 11 543 - (443) 11 600 - - - 11 600 - - 123 123 - - - 123 - 12 12 135 - - - - - 133 - 133 - - - 133 15 869 (5 512 ) 540 (4 972 ) - - - 10 897 (4 561 ) 1 407 ( 3 154 ) 7 743 16 794 (5 512 ) 663 (4 849 ) 11 777 133 (443 ) 23 412 (4 561 ) 1 419 ( 3 142 ) 20 270 Noncontrolling interests US$000 (310 ) (11 ) - (11 ) - - - (321 ) (104 ) - ( 104 ) (425 )

Total equity US$000 16 484 (5 523 ) 663 (4 860 ) 11 777 133 (443 ) 23 091 (4 665 ) 1 419 (3 246 ) 19 845

E N Mushayakarara Board Chairman 20 March 2014

Directors responsibility statement The Directors are required by the Companies Act (Chapter 24:03) to maintain adequate accounting records and are responsible for the content and integrity of the Group consolidated nancial results and related information included in this report. It is their responsibility to ensure that the Groups abridged nancial results fairly present the state of aairs of the Group as at the end of nancial year and the results of its operations and cash ows for the year then ended, in conformity with International Financial Reporting Standards (IFRS). Auditors Statement The abridged nancial results should be read in conjunction with the complete set of nancial statements for the year ended 31 December 2013, which have been audited by Ernst & Young Chartered Accountants (Zimbabwe) who have issued an unmodied audit opinion with an emphasis of matter paragraph on going concern.

HEAD OFFICE

RioZim Limited 1 Kenilworth Road, Highlands, Harare, Zimbabwe

P O Box CY 1243, Causeway, or P O Box HG 900 Highlands, Harare, Zimbabwe

Telephone: (04) 746141/9, 776085/91, 746089/95 Fax: 746228

Directors: E.N. Mushayakarara (Chairman), J.L Nixon (Deputy Chairman), A.S. Ndlovu (Chief Executive Ocer)*, S. R. Beebeejaun, L. .P. Chihota, M.P. Mahlangu, K. Matsheza, A. F. Nhau, M. T. Sachak Executive Directors*

R I O Z I M L I M I T E D AU D I T E D A B R I D G E D G R O U P R E S U LT S
FOR THE YEAR ENDED 31 DECEMBER 2013 (Incorporated in Zimbabwe on 29 August 1956 under registration number 607/56)

ABRIDGED STATEMENT OF cASHFLOWS

For the year ended 31 December 2013 Cash flows from operating activities Operating prot 2 104 4 639 Adjustments to add/ (deduct) non-cash items: Depreciation Amortisation on capital development Loss / (Gains) on disposal of property, plant and equipment Impairment of land and buildings Unrealised exchange gain Unrealised gain on fair value on derivative nancial assets Working capital adjustments: Change in inventories Change in trade and other receivables Change in trade and other payables (9 918 ) 12 193 11 922 16 545 (16 176 ) 933 15 741 7 388 1 887 330 1 - (599 ) (1 375 ) 2 530 (180 ) 66 (165 ) US$000 US$000

5. Property, plant and equipment

Land and Plant and buildings machinery Capital work Motor Furniture in progress vehicles and fittings Total

US$000 US$000 US$000 US$000 US$000 US$000

2013 2012

Cost 28 232 - (103) (3 055) 25 074 - - 25 074 14 471 447 - - 14 918 279 - 15 197 - - - - - 1 558 - 1 558 1 827 - - (73) 1 754 320 (75) 1 999 314 44 844 32 - 479 (103) Additions

At 1 January 2012 Write o Disposals At 31 December 2012 Additions Disposals At 31 December 2013 Depreciation and impairment At 1 January 2012 Depreciation charge for the year Write o Disposals At 31 December 2012 Depreciation charge for the year Disposals At 31 December 2013 Net Book Value At 31 December 2013

Diluted  Diluted loss per share amounts are calculated by dividing the net loss attributable to the ordinary equity holders of the company after adjusting for impact of dilutive instruments. Headline  Headline loss per share amounts are calculated by dividing the net loss attributable to the ordinary equity holders of the parent adjusted for prots, losses and items of a capital nature that do not form part of the ordinary activities of the Group.  The following reects the loss and share data used in the basic and diluted loss per share computations: 2013 US$000 2012 US$000

(10) (3 138) 336 42 082 105 (9) 2 262 (84)

432 44 260

1 708 802 (37) (1 931) 542 492 - 1 034

3 714 1 311 - - 5 025 1 258 - 6 283

- - - - - - - -

1 357 380 - (71) 1 666 103 (75) 1 694

253 37 -

7 032 2 530 (37)

(7) (2 009) 283 7 516 34 (9) 1 887 (84)

Net cash flows from operating activities Cash flows from investing activities Investment in exploration, evaluation and development assets Acquisition of property, plant and equipment Purchase of investments Proceeds on disposal of property, plant and equipment Interest received from investing activities Net cash used in investing activities Cash flow from financing activities Proceeds from issue of shares Inow from borrowings Repayment of borrowings Interest paid Net cash used in financing activities Net (decrease) / increase in cash and cash equivalents Cash and cash equivalents, beginning of period Cash and cash equivalents at 31 December

308 9 319

Loss attributable to equity holders of the parent for basic earnings (4 561 ) Adjustment for headline earnings Loss/(gain) on disposal of property 1 Write o of buildings - Headline earnings (4 560 ) Weighted average number of ordinary shares 53 363 Weighted average number of ordinary shares for basic earnings per share 53 363 Loss per share (cents) Basic (8.55 ) Diluted basic (8.55 ) Headline (8.55 )

(5 512)

(180) 66 (5 626 ) 45 536 45 536

(12.11) (12.11) (12.36)

(1 028 ) (2 262 ) (31 ) 1 127 (3 193 )

(1 421 ) (479 ) 1 311 27 (562 )

 he Group has some convertible debentures that could potentially dilute the basic earnT ings per share in the future, but were not included in the calculation of diluted earnings per share because they are anti-dilutive for periods presented. 31 December 31 December  2013 2012 There have been no other transactions involving ordinary shares or potential ordinary US$000 US$000 shares between the reporting date and the date of authorisation of these nancial statements. 6. Exploration evaluation and development assets 11. Share Capital Carrying amount at 1 January 13 540 12 119 Additions 1 028 1 421 2013 2012 Amortisation ( 330) US$000 US$000 Cost as at 31 December 14 238 13 540
At 31 December 2012 24 532 9 893 - 88 53 34 566

24 040

8 914

1 558

305

124 34 941

- 1 574 (6 182 ) (9 108 ) (13 716 ) (364) 1 033 669

11 776 (443 ) 12 219 (17 816 ) (11 870 ) (6 134 ) 692 342 1 034

Transaction costs on issue of shares -

7.

Inventories Stores and consumables Metals and minerals Finished metals

3 771 45 165 3 992 52 928

4 544 38 466 43 010

Authorised Shares 100 000 000 ordinary shares of US$0.01 each 1 000 1 Special Dividend Share of a nominal value of US$124 875.82 125 1 125 Issued Shares 000s Shares issued and fully paid 53 363 There were no shares which were issued during the year

1 000 125 1 125 000s 53 363

8. Interest bearing loans & borrowings Current Bank Loans Debentures Term loans Bank acceptance Non current Bank Loans Debentures Term loans Total

27 263 3 034 552 - 30 849

36 481 1 550 6 496 44 527

12. Dividends No dividends were declared. 13. Capital Commitements At the reporting date there were no capital commitements. 14. Going concern  The Group has incurred losses as a result of high interest rates and has recorded a net loss for the year ended 31 December 2013 of $4.7 million (2012: $5.5 million). As at that date its current liabilities exceeded its current assets by $17.1 million (2012: $17.6 million) as a result of short term borrowings of $30.8 million ( 2012 :$44.5 million).These factors point to a material uncertainty on the Groups ability to continue as a going concern and, therefore that it maybe unable to realise its assets and discharge its liabilities in the normal course of business. Directors assess the ability of the Group to continue as a going concern at the end of each nancial year and believe that the Group is a going concern for the reasons identied below:

NOTES TO THE AbRIdgEd FINANCIAL STATEMENTS

For the year ended 31 December 2013 1. General information  RioZim Limited (the Company) and its subsidiaries (together the Group) is involved in mining and metallurgical operations in dierent locations in Zimbabwe. The Group has mining operations and a metallurgical plant. The Company is a limited liability company incorporated and domiciled in Zimbabwe. The address of its registered oce is 1 Kenilworth Road, Newlands, Harare. The Company is listed on the Zimbabwe Stock Exchange.

13 708 - 3 932 17 640 48 489

3 167 1 417 3 986 8 570 53 097

 These abridged nancial results were authorised for issue by the Board of Directors on the 20th of March 2014. 2. Basis of preparation   The abridged nancial results are presented in United States Dollars (US$), which is the functional currency of the parent company. They have been extracted from the full set of the consolidated nancial statements which were prepared in accordance with the International Financial Reporting Standards (IFRS) and the International Financial Reporting Statements Interpretations Committee, (IFRIC) interpretations.  In addition the nancial statements were prepared in terms of Zimbabwe Stock Exchange (ZSE) listing rules and the Companies Act. The consolidated nancial statements are based on statutory records that are maintained under the historical cost conventions as modied by measurement of certain nancial assets at fair value. The abridged nancial results do not include all the information and disclosures required in the annual nancial statements, and should be read in conjunction with the Groups annual nancial statements for the year ended 31 December 2013. 3. Significant accounting policies  The abridged nancial results have been prepared in accordance with the accounting policies adopted in the Groups last annual nancial statements. 4. Estimates   When preparing the consolidated nancial statements, management undertakes a number of judgments, estimates and assumptions about recognition and measurement of assets, equity, liabilities, income and expenses. The actual results may dier from the judgments, estimates and assumptions made by management.

9. Operating segments The successful termination of the loss-making toll rening contract with Centametall in July Adjustments and 2012 is starting to bear some fruits as evidenced by the improvement in ENR protability. Gold Base Metals eliminations Total The new oxygen plant that was installed during the year coupled with a long-term supply $000 $000 $000 $000 contract of matte, will stabilise the ENR operation. The oxygen plant will result in cost savings of approximately $300 thousand per month which will improve the protability of Revenue the Group. 31 December 2013 27 012 78 656 14 105 682  The Groups debt position marginally decreased from $53.1 million in December 2012 to 31 December 2012 37 572 34 743 68 72 383 $48.5 million. The average cost of debt also continues to reduce from 21% to 19% in 2013 through rate negotiations and restructuring of the loan facilities. The successful renancing Depreciation and amortisation of the debt is expected to reduce interest costs by almost half and improve protability. 31 December 2013 1 429 727 61 2 217 31 December 2012 1 470 727 333 2 530  The Group is also in the process of re-opening Cam & Motor mine which was a world class mine before it closed up in 1968 after producing 150 tonnes of gold. A plant is being Segment profit designed and manufactured in China and the project is expected to be commissioned 31 December 2013 476 7 925 ( 6 297) 2 104 in the second half of 2014. The positive contribution of this operation is expected to 31 December 2012 8 514 4 354 ( 8 229) 4 639 strengthen the equity and net assets of the Group.  Key creditors including nancial institutions remain supportive through credit lines and Segment assets shareholders remain strongly supportive of managements eorts to improve productivity. 31 December 2013 31 543 62 375 25 982 119 900 31 December 2012 34 302 60 133 24 085 118 520 The Groups restructuring plan is now in its conclusion phases and will enable capital raise at subsidiary level and raise funds to retire debt. Segments liabilities 31 December 2013 29 850 59 028 11 177 100 055  The directors therefore believe that the Group will continue to operate as a going 31 December 2012 25 788 51 794 17 847 95 429 concern and the preparation of these nancial statements on a going concern basis is still appropriate. This basis assumes that the realisation of assets and settlement of liabilities will occur in the ordinary course of business. Capital expenditure 31 December 2013 31 December 2012 1 150 868 1 990 91 150 941 3 290 1 900 15. Events after reporting date.  There were no events that occurred after the reporting date that were material to require separate disclosure in these nancial statements.

10. Loss Per Share Basic  Basic loss per share amounts are calculated by dividing the net loss for the year by the weighted average number of ordinary shares outstanding during the year excluding treasury shares.

HEAD OFFICE
RioZim Limited 1 Kenilworth Road, Highlands, Harare, Zimbabwe P O Box CY 1243, Causeway, or P O Box HG 900 Highlands, Harare, Zimbabwe Telephone: (04) 746141/9, 776085/91, 746089/95 Fax: 746228

Directors: E.N. Mushayakarara (Chairman), J.L Nixon (Deputy Chairman), A.S. Ndlovu (Chief Executive Ocer)*, S. R. Beebeejaun, L. .P . Chihota, M.P. Mahlangu, K. Matsheza, A. F. Nhau, M. T. Sachak Executive Directors*