Rex International Holding - JPM

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Asia Pacific Equity Research23 September 2013

Rex International HoldingsCompany Visit Note: An edge in exploratory drilling?

Oil & Gas

Ajay MirchandaniAC

(65) 6882-2419

[email protected]

Bloomberg JPMA MIRCHANDANI

J.P. Morgan Securities Singapore PrivateLimited

Kumar Gaurav

(91-22) 6157-3357

[email protected]

J.P. Morgan India Private Limited

See page 28 for analyst certification and important disclosures, including non-US analyst disclosures.J.P. Morgan does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that tfirm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factormaking their investment decision.

We recently met up with the management team of Rex International (CEO,Mans Lidgren and COO, Kristofer Skantze). Rex International Holdings(RIH) is an independent oil and gas exploration and production (E&P)company having 15 concessions (10 at time of IPO in July13) in USA (2),Middle East (4), Norway(6) and Trinidad and Tobago (3) through variousjoint venture vehicles. Its parent company, Rex Partners, claims to ownproprietary and innovative exploration technologies called RexTechnologies that mitigates exploration risks and reduces cost ofexploration, which RIH has access to and enjoys right to first refusal in allglobal territories except certain locations.

What is so unique about Rex Technologies? Management said thatRex Technologies (comprises 3 proprietory technologies, Rex Gravity,Rex Seepage and Rex Virtual Drilling) significantly reduces the need forexploration and appraisal drilling thus reducing risks and costs involvedin the exploration process. Management claims more than 50% successrate in exploratory drilling (versus 10-15% for industry). It also said thatthe use of Rex Technologies enables it to obtain seismic data resultsmuch faster. The theory at the base of Rex Virtual Drilling is resonance

frequency (Source: North Energy, Rexs partner).

RIHs business strategy: prove up value then sell oil in the ground:Management highlights it will look to identify and then acquire newconcessions, increase value introducting Rex Technologies, developconcessions and then sell off stakes thereby unlocking capital and valueas it sees its advantage limited to exploratory drilling phase. Thecompany will look to add 8-10 concessions (5 added since IPO)alongwith its partners North Energy (in Norway) and HibuscusPetroleum (Malaysia listed E&P name via its JV, HiRex in Asia-Pacific).

NOTE: THIS DOCUMENT IS INTENDED AS INFORMATION ONLY AND NOT ASA RECOMMENDATION FOR ANY STOCK. IT CONTAINS FACTUALINFORMATION, OBTAINED BY THE ANALYST DURING MEETINGS WITHMANAGEMENT. J.P. MORGAN DOES NOT COVER THIS COMPANY AND HASNO RATING ON THE STOCK.

Rex International Holdings (Reuters: REXI.SI, Bloomberg: REXI SP)

US$ in mn, Dec year end FY11A FY12A

Revenue 0.0 0.0Operating Profit 0.0 -0.5Share of profit/loss of Associates -1.5 -3.0Net Profit -1.5 -3.5Net Profit GrowthEPS (US$ cents) -0.2 -0.4ROE n/m -3%

Source:: Company Reports *Company has no earnings estimates currently

REXI.SI, Not Covered

S$ 0.925, September 23, 2013

Share Price ChartS$

Source: Bloomberg

One-year price performance

1D 1M YTD

Absolute (%) 9% 19% 85%

Relative (%) 9.5% 15% 86%

Source: Bloomberg

Company Data

Price Range (till date) 0.5 - 0.925Market Cap (S$ mn) 929Market Cap (US$ mn) 752Shrs outstanding (in mn) 977Free Float % 44.3Average Volume (30D) in mn 16.6FSSTI Index 3214Date of Price 23-Sep-13

Source: Bloomberg

0.4

0.5

0.6

0.7

0.8

0.9

1

30-Ju l 9 -Aug 19-Aug 29-Aug 8 -Sep 18-SRex International FSSTI Rebased


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Ajay Mirchandani(65) [email protected]

Quick Overview of RIH

Rex International Holdings is an independent oil and gas exploration and production(E&P) company having concessions in USA, Middle East, Norway and Trinidad and

Tobago. The parent company, Rex Partners, claims to own a proprietary andinnovative exploration technologies called Rex Technologies that mitigates

exploration risks and reduces cost of exploration. Rex Technogies provides higher

exploration accuracy than peers and is several times faster compared to current

techniques of looking for oil, thus reducing costs.

Rex International has been granted an IP License to use this technology. Howeverit

cannot use this technology in areas where Rex Partners and its group of companies,has interests in the exploration and production of oil and gas.

Rex Technologies: Is it really unique and a game-changer?

Rex Partners (parent company of Rex International Holdings) claims to have a

proprietary technology which decreases the cost as well as risk of explorationsignificantly. Rex Technologies was developed by the founders of Rex Partners Ltd,Dr Karl Lidgen and Mr Hans Lidgren.

The technologies are a) Rex Gravity, b) Rex Seepage c) Rex Virtual Drilling.(More details about its proprietary technology in theRex Technologies Section)

Rex International claims 100% success in tests conducted at various places with theusage of this technology. According to Rex, it conducted 8 blind tests (i.e. Rex didnot have information about the locations) for North Energy, Norway which wasconfirmed to be 100% accurate. Rex also conducted 4 live tests which were 100%accurate. Later, North Energy entered into a partnership with Lime Petroleum (a 65%owned subsidiary of Rex International) as a result of the tests.

The company also carried out blind tests successfully for Hibiscus Petroleum andFram and consequently entered into partnerships with these companies. (More detailsregarding tests conducted by Rex Technologies in theRex Technology: Track recordSection.)

Aiming big with strategic tie ups; eye on acquiring assets

Rex International is headquartered in Singapore, but its fields are located around theglobe. With a presence in the Middle East, USA, Norway and South East Asia, thecompany is poised to grow with oil and gas demand growth.

Rex International has strategic tie ups with companies in Singapore, Malaysiaand Norway and intends to acquire assets with its partners in Norway and SEAsia. Key strategic partners of Rex International include Malaysias Hibiscus

Petroleum, Singapore listed Loyz Energy, Norways Fram Exploration and NorwaysNorth Energy

Rex International holds interest in its Norwegian and Middle East assets through itssubsidiary Lime Petroleum. Lime Petroleum is owned 65% by Rex International and35% by Malaysia's Hibiscus Petroleum. Lime petroleum intends to apply for 8-12more licenses by end of 2013.

Rex International entered into

partnerships with various players as

a result of its successful testing of

Rex Technologies.

Hibiscus Petroleum partners Rex

in 10 out of its 15 assets, plans

to secure 5-6 licenses in SE Asiatogether by 2014


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Figure 1: Lime Petroleum Ownership Structure

Source: Hibiscus Petroleum, PL518, 526 and 530 were replaced with PL498, 503B and 616

Rex is also planning to expand its portfolio to South East Asia. In order to achievethis expansion, Rex International has set up a JV with Hibiscus Petroleum known asHiRex Petroleum where Rex International holds a 41% stake. HiRex has begunscreening potential drilling locations in mature field and exploration opportunities inMalaysia, Australia, New Zealand, Cambodia, Vietnam, Myanmar and thePhilippines and expects to secure interests in five (5) to six (6) licenses in the next18 months. (More details about Rex-Hibiscus partnership inKey tie up with Hibiscus

Petroleum section.)

US production to kick in by end of 2013; T&T producingassets to be acquired

Rex International has not generated any revenue as of now. However, assets in

Colorado and North Dakota, USA are set to start production by the end of 2013generating revenues for the company.

Moreover, the company will acquire producing assets Inniss Trinity and South Erinat Trinidad and Tobago, which currently produces 45bpd and 80bpd respectively,while another asset at Cory Moruga Block, T&T is expected to produce shortly.

Rex also intends to acquire mature fields in SE Asia via HiRex Petroleum.Acquisition of producing assets will be a big positive for the company in the nearterm.

Figure 2: Expected USA production

Source: Company Reports

1320

2928 2936209

410 328

1529

3338 3264

0

500

1000

1500

2000

2500

3000

3500

2013 2014 2015

Whitewater, Colorado Williston, North Dakota

Production is expected to average

3338 bpd in 2013 and 3264 bpd in2014 from the US assets.


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Farm out of interest in Middle East

Rex International, which currently holds interests in Middle East assets through itssubsidiary Lime Petroleum, intends to farm out part of its interests to raise funds forexploration. (Effective stake of Rex in Middle Eastern Assets can be found in theCompany Description Section). The company has entered into discussions with a few

potential investors, according to management.

Rex mentions that it will carry out its drilling schedule in its Middle East assets withadditional funds from the farm outs. Farming out Lime Petroleum's interest isexpected to generate positive cash flow for the company, according to management.First well will be drilled in Oman Block 50 in December and in other UAE assets byearly 2014.

Rex will look to sell off oil-in-the ground once 1-2successful wells are discovered

The company re-iterated that its edge (as against competition) lies in minimizing theexploration costs given its higher success rates in knowing where to drill (leading tolesser time spent at exploration stage) and higher exploration success rate of 50%(versus 10-15% seen at traditional E&P companies).

Management highlighted that while Rex would need only weeks (instead of yearstaken by competition) in studying the fields, they also claim their cost would be lessthan US$100,000 versus millions incurred by traditional E&P companies.

Table 1: Traditional Players vs Rex International

Rex International Traditional PlayersExploration success rate of finding oil 50% 10-15%

Cost Under US$100,000 May go in millionsTime Required 4-6 weeks 1-3 years

Source: Company reports..

REXs edge lies in exploratory drilling phase not during development drilling

Management highlighted that once theyve identified where it is best to drill (for oil),the remaining process of development drilling is commoditized and see no edge therefor Rex to retain its presence. Currently management is undertaking a strategy tosell off its entire stake (may look to retain some stake possibly once exploratorydrilling is complete) and look to identify other opportunities to invest its technology.

As we can see in the table below management presents a case study of potentialprofit it would generate (net of exploratory drilling costs) on sale of asset.

Table 2: Well Exploration Profit: Low End

Minimum Reservoir size 50 MMBblOil in the ground price US$ 5/bblParticipation Interest 20%

Net Revenue US$ 50 mn

Capex US$10 mnProfit US$ 40 mn

Source: Company reports..

Management believes it is 10-15 years ahead of competition and will continue tomaximize the advantage it enjoys over its peers by continually re-cycling its assetsand re-investing its proceeds into new assets. Moreover, given its competitiveadvantage, management does not intend to provide service of this technology butinstead retain it and invest in potential under-appreciated / under-valued assets.


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Company Description

Aiming big with proprietary technology

Rex International Holdings is an independent oil and gas exploration and production(E&P) company having concessions in USA, Middle East, Norway and Trinidad andTobago. The parent company, Rex Partners, claims to have a proprietary andinnovative exploration technology called Rex Technologies that mitigatesexploration risks and reduces cost of exploration and has granted access to RexInternational to use these technologies. However, the company has no producingresources as of now, and aims to produce first oil by end of this year from its USassets.

Figure 3: Rex International Map of Assets

Source: Company reports. The company has acquired 2 more assets in Norway.

Figure 4: Rex current position in E&P value chain

Source: Company reports.


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Figure 6: Concession status


Table 4: Rex International: List of Assets

Field Effective Interest Other participants Onshore/Offshore

Field Type Plans and programmes Status

USAWhitewater Federal

production28% (20% direct

ownership, rest through24% ownership in Fram

Loyz Energy (20%), Fram (23%), Others(30%)

Onshore Oil Drilling of the 80 Commitment Wellswithin 24 months from the date the

first well is spudded Productionexpected in 4th quarter of 2013

Development

Willston Basin 28% (20% directownership, rest through24% ownership in Fram

Loyz Energy (20%), Fram (23%), Others(30%)

Onshore Oil Development

Middle EastRAK NorthConcession

38.40% (through 65% inLime Petroleum)

Schroder (25%), Hibiscus Petroleum(20%), Others (16%)

Offshore Oil Drilling of first well in early 2014 Exploration

Sharjah Concession 65% (through 65% in LimePetroleum)

Hibiscus Petroleum (35% Offshore Oil Drilling of first well by 1H14 Exploration

RAK Onshoreconcession

65% (through 65% in LimePetroleum)

Hibiscus Petroleum (35%) Onshore Oil Drilling of first well by end of 2014 Exploration

Block 50 Omanconcession

42% (through 65% in LimePetroleum)

Hibiscus Petroleum (23%), Others 35% Offshore Oil Drilling of 2 wells in 2013 Exploration

NorwayPL503/Valberget 8.10% (through 65% in

Lime Petroleum)North Energy (20), Skagen (25), Edison

International (25)Offshore Oil

Drilling of 3-5 wells in 2013 and 2014

Exploration

PL503B/Valberget 8.10% (through 65% inLime Petroleum)

North Energy (20), Skagen (25), EdisonInternational (25)

Offshore Oil Exploration

PL616/Skagastol 3.30% (through 65% inLime Petroleum)

North Energy (15), Skagen (15),Concedo (20), Noreco Norway(20)


PL498/Skagen 3.30% (through 65% inLime Petroleum)

North Energy (20), Skagen (25), EdisonInternational (25)


PL 707 6.5 (through 65% in LimePetroleum)

North Energy (10), PGNIG (25), EdisonInternational (50)


PL 708 6.5 (through 65% in LimePetroleum)

Lundin (40), North Energy (10), Lukoil(20), Edison (20)


T&T

Inniss Tr ini ty Incrementa l Product ionContract

Onshore OilMulti well campaign to start by end of

2013 or early 2014.

Production/Exploraion

South Erin Block 75% Others 25% Onshore Oil DevelopmentCory Moruga Block 51% Others 49% Onshore Oil Development



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Table 5: Reserves and Resources USA

MMbbl

Field Total Reserves Rex's share1P 14.9 4.1

Whitewater, Colorado 2P 20.4 5.73P 26.5 7.4

Total Resources Rex's Share1C 0.16 0.04

Williston Basin, North Dakota 2C 0.27 0.073C 0.38 0.11


2 fields in US have proven reserves till date.

Table 6: Prospective Resources Middle East

MMbbl

Field NameNet Unrisked Best Estimate

Recoverable Resources (mmboe)

Net Risked Best EstimateRecoverable Resources

(mmboe)

RAK North Concession 61 13Sharjah Concession 426 55Block 50 Concession 1420 248RAK Onshore Concession TBA TBATotal (Excludes RAK Onshore) 1908 316

Source: Hibiscus Petroleum.

Table 7: Original Oil in Place (Trinidad and Tobago)

MMbbl

Field Name Original Oil in Place Recoveery Factor South Erin Block 20 19.5Cory Moruga Block E 40 20Inniss Trinity field* Incremental Production ContractSource: Company Reports*Rex has no working interest as an Incremental Production contract is awarded to them at Inniss Trinity.

Reserves/Resources in Norway are currently undergoing evaluation.


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Key Tie up with Hibiscus Petroleum

Hibiscus Petroleum is Malaysias first listed independent oil and gas exploration andproduction company with assets located in the Middle East, Norway and the Asia-Pacific regions.

Lime PetroleumRex International has a close tie up with Hibiscus Petroleum in Norway, Middle Eastand SE Asia. In 2012, Hibiscus Petroleums wholly owned subsidiary Gulf HibiscusLtd signed a deal to acquire a 35% stake in Lime Petroleum, a wholly ownedsubsidiary of Rex Oil and Gas then.

Figure 7: Assets held through Lime Petroleum

Source: Hibiscus Petroleum,

Lime Petroleum has been granted a license by Rex Technology to utilize RexTechnologies for the purpose of exploring and producing oil and the companyintends to use it extensively during exploration process in Middle East and Norway.

HiRex Petroleum

Hibiscus Petroleum tied up with Rex South East Asia, a wholly owned subsidiary ofRex International to form a 50:50 JV company called HiRex Petroleum in Kuala

Lumpur, Malaysia. HiRex Petroleum is set up to acquire strategic matureconcessions in South East Asia,

As part of the JV agreement, HiRex has the right to use the Rex Tehnology packagefor a period of 5 years with provisions for extension.

In June 2013, HiRex signed an agreement to receive a USD10 mn investment fromPanama-based company, Triax Ventures Corp in exchange for a 15% stake in thecompany.

Rex International intends to farm

out some of the stake in Middle

Eastern assets soon to secure

funds for drilling.

Lime Petroleum is eyeing additional

8-10 new licenses in Norway.


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Figure 8: Hibiscus Petroleum Ownership structure

Source: Hibiscus Petroleum,

HiRex has begun screening potential drilling locations in mature field andexploration opportunities in Malaysia, Australia, New Zealand, Cambodia, Vietnam,Myanmar and the Philippines. The company expects to secure interests in 5-6licenses in the next 18 months as the result of a large seismic data screening processduring 2013 and 2014. It expects considerable growth in its concession portfolio overthe next 18 months.

In Sep 2013, the JV entered into an agreement with Bass Strait Oilof Australia forusage of Rex Technologies in the Gipsland Basin. HiRex and Bass will work

together over the next 3 months to reassess the prospectivity and HiRex may thencommit to acquiring a 51% participating interest in the permit. The joint venture maycommit to drilling an exploration well in the 2014/2015 period.

Figure 9: HiRex Strategy and Targets

Source: Hibiscus Petroleum, VD= Virtual Drilling

HiRex is targeting 20-40

opportunities to be identified forscreening every year, with at least 3

opportunities to be selected for

investment per year.


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Understanding Oil Formation and accumulation

Oil is found accumulated in thick porous rocks like sandstone or limestone.Movements in the Earth trap oil and natural gas in the reservoir rocks between layersof impermeable rock, or cap rock, such as granite or marble.

The movements of rocks include:

Folding: Horizontal movements of earth press inward and move the rock layersupward into a fold called anticline. Anticlines are the most common type of trapswhere oil is found.

Faulting: The layers of rock crack and one side shifts upwards or downwardscreating a cap of impermeable layer which stops oil from flowing.

Pinching out: A layer of impermeable rock is squeezed upward into the reservoirrock.

Conventional techniques of finding oil

As mentioned in the previous section, oil is found trapped in specific geological

structures.It is the task of the geologists to find the right source rock, reservoirrock and entrapment. Modern oil geologists examine surface rocks and terrain, withthe additional help of satellite images.

Geologists also use seismology, i.e creating shock waves that pass through hiddenlayers and interpret the waves that are reflected back to the surface.

In seismic surveys, a shock wave is created by a) Compressed-air gun - shootspulses of air into the water (for exploration over water) b) Thumper truck- slamsheavy plates into the ground (for exploration over land) c) Explosives - detonatedafter being drilled into the ground (for exploration over land) or thrown overboard(for exploration over water).

The shock waves travel beneath the surface of the Earth and are reflected back by thevarious rock layers. The reflections travel at different speeds depending upon thetype or density of rock layers through which they must pass. Sensitive microphonesor vibration detectors detect the reflections of the shock waves. Seismologistsinterpret the readings for signs of oil and gas traps.


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Rex Technologies: the 3 proprietory technologies

Rex Partners (which owns Rex International Holdings) claims to own a proprietarytechnology which makes finding oil and gas easier and cheaper. Rex Technologieswere developed by the founders of Rex Partners, Dr Karl Lidgren and Mr HansLidgren, and comprises three proprietary innovative exploration technologies:

The three technologies owned by Rex are Rex Gravity, Rex Seepage and RexVirtual Drilling.

1) Rex Gravity

Rex Gravity finds areas with suitable geological conditions for hydrocarbonaccumulations. Based on satellite gravity data, Rex Gravity measures water surfacelevels with the aim of finding anomalies in the sub-terrain, which could indicate the

presence of hydrocarbons.

According to the company, Rex Gravity generates a high resolution anomaly mapbased on satellite gravity data, by compensating for water depth and additionalparameters. The company claims that Rex Gravity is a very cost effective way toscreen large areas for hydrocarbons before a major decision is made to acquireseismic data.

Figure 10: Rex Gravity


Figure 11: Rex Gravity vs Traditional technology



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2) Rex Seepage

Rex Seepage is a tool used to spot oil seepages offshore in order to better understandthe potential presence of oil reservoirs in the sub-terrain. Based on thermal satelliteimaging, the tool is able to provide high resolution and accurate information about oil

seepages from beneath the rock strata over many years. The result is a much higherprobability of finding areas suitable for closer inspection.

Figure 12: Rex Seepage


The advantage of Rex Seepage as compared to traditional imaging technologies isthat it produces high resolution images and these images are obtained through a

much larger set of satellite images taken at frequent intervals and over many years,unlike traditional seepage imaging technologies which typically only capture oilseepages in one or a few images per area of interest.

Figure 13: Rex Seepage vs Traditional technology



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3) Rex Virtual Drilling

Traditionally the oil industry uses seismic data to search for oil. Rex Virtual Drillingis a proprietary technology that allows the company to find in details about thingssuch as where the oil is; how deep it lies; how much there is; the quality of the oil.

Rex claims that the oil discovery success rate is significantly increased to over 50%,compared to the global average of 10-15 %.

Figure 14: Rex Virtual Drilling


Figure 15: Rex Virtual Drilling vs Traditional Technology



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Rex Technologies Track Record:

Rex International carried out 18 tests during 2012 and 2013 and claims to be 100%successful in the tests. The company estimates worldwide success ratios inexploration drilling using Rex Technologies to be in excess of 50%, which is muchhigher than the average worldwide and industry-wide exploration success ratio of10% to 15%

According to Rex, it conducted 8 blind tests (i.e. Rex did not have information aboutthe locations) for North Energy, Norway which was confirmed to be 100% accurate.Rex also conducted 4 live tests which were 100% accurate. Later, North Energyentered into a partnership with Lime Petroleum (a 65% owned subsidiary of RexInternational) as a result of the tests.

The company also carried out blind tests successfully for Hibiscus Petroleum andFram and consequently entered into partnerships with these companies

Table 8: Results of Rex Technology

Type of Test Location Test Results

Blind test Norway Correct and verified testing partyBlind test Norway Correct and verified testing partyBlind test New Zealand Correct and verified testing party

Blind test India Correct and verified testing partyBlind test USA (onshore) Correct and verified esting partyBlind test Norway Correct and verified testing partyLive test Ras al-Khaimah Correct and publicly published informationLive test Norway Correct and publicly published informationLive test Norway Correct and publicly published informationLive test Norway Correct and publicly published informationLive test Norway Correct and publicly published information

Source: Company reports

Blind tests were based on seismic data provided by the testing party, which wasaware of the results of the tests provided, and Rex did not have prior knowledgeabout the exact location from which the seismic data were taken

Live tests were carried out in collaboration with Rexs partners where they analysedseismic data using RexTechnologies prior to the start of drilling campaigns.

The company is of the opinion that it is a potential game changer in the E&Pindustry. Rex International however does not intend to use Rex Technologies as astandalone service to other clients and intends to use it extensively in its ownconcessions.

Success of Rex Virtual Drilling in North Energy fields

North Energy had analysed 59 prospects using Rex Virtual Drilling over the past twoyears. Out of the 41 wells which had been drilled since, 35 predictions by RexVirtual Drilling were spot on.

85 per cent success rate (96 per cent success in predicting dry wells in 24 out of 25drillings and 69 per cent success in predicting presence of commercial oil in 11 outof 16 drillings)

Rex Technology LicensesRex Technologies (owned by Rex Partners) have granted Rex International Holdingsand its subsidiaries Lime Petroleum and HiRex Petroleum an IP License to use thetechnologies. However, to avoid conflict of interest, Rex Partners does not allowusage of Rex Technologies in areas where Rex Partners or its group of companieshas interests in E&P. Rex Partners is currently involved in key operation areas inrespect of exploration and production activities in the West Africa region.

Rex Partners has granted Lime Petroleum an exclusive license to use RexTechnologies in areas mentioned below, while it has granted Rex InternationalHoldings and HiRex Petroleum a Right to First Refusal in areas where they have

been provided licenses.

96% success rate in predicting

dry wells.

69% success in predicting

locations with commercial oil


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Table 9: Rex technology IP Licence agreement

RIH IP Licence Lime Petroleum IP Licence HiRex IP Licence Lime Norway IP Licence

Territories

Any territory in the world save forMorocco, Mauritania, Senegal,Cape Verde, Guinea Bissau, theGambia, Sierra Leone, Liberia,Guinea, Ivory Coast, Ghana, Togo,

Benin, Nigeria, Cameroun,Equatorial Guinea, Gabon, Congo-Brazzaville, the Kingdom of SaudiArabia and the offshore areasassociated with these countries

Middle East which includesBahrain, Egypt, Iran, Iraq,Jordan, Kuwait, Lebanon,Oman, Palestine (Gaza strip and

West Bank), Qatar, SaudiArabia, Syria, Turkey, UnitedArab Emirates, Yemen andoffshore areas associated withthese countries

Brunei, Myanmar, Malaysia, Indonesia,Thailand, Vietnam, Cambodia, the

Philippines, Australia, New Zealand andPapua New Guinea and offshore areasassociated with these countries

Norwegian Continental Shelf

First licence periodDate of RIH IP License Agreementto 31st Dec 2013

Not applicable12 months from the date of the HiRex IPLicense Agreement

Date of Lime Norway IPLicense Agreement to 31-Dec-13

Subsequent licenseperiod

Every 12 months from 1 January2014

Not applicable Every 12 months from 21st March 2014Every six (6) months from 1Jan 2014

Licence fees for RexVirtual Drilling (firstlicense period)

US$312,500Hourly rate of US$150for projectengineer and US$300 for projectmanager

US$1.25 million US$625,000

Licence fees for RexVirtual Drilling(subsequent license

period

US$625,000Hourly rate of US$150for projectengineer and US$300 for projectmanager

US$2.5 million US$625,000

Licence fees for RexSeepage

US$75 per sq km and suchcharges shall be subject to thesame annual increment as the costfor the use of Rex Virtual Drilling

Hourly rate of US$150for projectengineer and US$300 for projectmanager

Charged separately on a case by casebasis, where such charges will be pre-approved by HiRex in writing

Charged separately on a caseby case basis, where suchcharges will be pre-approvedby Lime Petroleum Norway inwriting

Licence fees for RexGravity

US$75 per sq km and suchcharges shall be subject to thesame annual increment as the costfor the use of Rex Virtual Drilling

Hourly rate of US$150for projectengineer and US$300 for projectmanager

Charged separately on a case by casebasis, where such charges will be pre-approved by HiRex in writing

Charged separately on a caseby case basis, where suchcharges will be pre-approvedby Lime Petroleum Norway inwriting

Analysis coverage forRex Virtual Drilling(first license period)

Up to ten (10) analyses (subject tonot more than 3 analyses eachmonth

No limitUp to 20 analyses (subject to not morethan 3 analyses each month

Up to five (5) analyses (subjecto not more than 2 analyseseach month)

Analysis coverage forRex Virtual Drilling(subsequent license

period)

Up to 20 analyses (subject to notmore than 3 analyses each month

No limitUp to 40 analyses (subject to not morethan 6 analyses each month

Up to five (5) analyses (subjecto not more than 2 analyseseach month)

Rex Virtual Drilling 3Dcoverage (first licenseperiod)

Up to 5,000 sq km (subject to notmore than 500 sq km for eachanalysis)

No limitUp to 5,000 sq km (subject to not morethan 500 sq km for each analysis)

Up to 2,500 sq km (subject tonot more than 500 sq km foreach analysis)

Rex Virtual Drilling 3Dcoverage (subsequentlicense period)

Up to 10,000 sq km (subject to notmore than 500 sq km for eachanalysis)

No limitUp to 10,000 sq km (subject to not morethan 500 sq km for each analysis)

Up to 2,500 sq km (subject tonot more than 500 sq km foreach analysis)

Rex Virtual Drilling 2Dcoverage (if carried outinstead of 3D analysis)

Each analysis can have up to 25Dlines where each line has upto3000 shot points

No limitEach analysis can have up to 25D lineswhere each line has upto 3000 shotpoints

Each analysis can have up to25D lines where each line hasupto 3000 shot points

Adjustments tolicense fees

Fees to increase on an annualbasis after the 2nd annual licenseperiod by a rate equivalent toofficial reported British VirginIslands inflation rate for precedingprevious year plus 3%

Not applicable

Fees to increase on an annual basisafter the 2nd annual license period by arate equivalent to official reported BritishVirgin Islands inflation rate for precedingprevious year plus 3%, subject to amaximum increase of 7% pa

Fees to increase on an annualbasis after the 4th licenseperiod by a rate equivalent toofficial reported British VirginIslands inflation rate forpreceding previous year plus3%

Additional analysis

Fee for each additional analysis isUS$125,000. The company has theright to request for up to 10additional analysis during eachlicense period with 3 monthsadvance notice

Not applicable Not applicable

Fee for each additionalanalysis is US$125,000 LimePetroleum Norway has theright to request for up to 5additional analysis during eachlicense period with 1 monthsadvance notice

Source: Company reports


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Near Term Producing Assets

USA: North Dakota and Colorado

Table 10: Reserves and Resources

MMbbl

Field Total Reserves Rex's share1P 14.9 4.1

Whitewater, Colorado 2P 20.4 5.73P 26.5 7.4

Total Resources Rex's Share1C 0.16 0.04

Williston Basin, North Dakota 2C 0.27 0.073C 0.38 0.11


Rex Oil & Gas entered into the Participation and Exploration Agreement with Framand Loyz Oil for the US concessions on 28th August 2012. Rex owns a 27.5%interest in these field (through 20% direct interest and 8% interest in Fram); Loyz Oilholds 20% with the rest being held by Fram.

Rex and Loyz Oil are responsible for the implementation of a drilling plan for thewells, which are to be drilled within a period of 24 months commencing from thedate the first well was spudded, being 7 May 2013. The drilling campaign will take

place first within the North Dakota Concession before commencing within theColorado Concession.

Figure 16: Locations of USA assets


Table 11: Plan for exploration and development in USA

Exploration Plan 2013 2014 2015Whitewater, Colorado 26 35 9

Williston Basin, North Dakota 4 5 1Total 30 40 10



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The company plans to drill a total of 80 wells within 2015, with 70 wells to be drilledin Whitewater, Colorado whereas 10 wells are to be drilled in North Dakota.

Table 12: Production plan (bpd)

FIeld Intended Life 2013 2014 2015Whitewater 30 Years 1320 2928 2936

Williston 10 Years 209 410 328

Total 1529 3338 3264


Planned Capex for US assets

Table 13: Capex for Rex's Interest in US assets

2013 2014 2015Total (US$ mn) 6.4 8.9 3.1


Planned OPEX for US assets

Table 14: Operating expense for Rex's Interest in US assets

2013 2014 2015Total (US$ mn) 1.6 2.6 3.6

US$ per boe --- 7.8 11.1


Oil Sales Agreement

Fram, signed an off-take agreement with Plains Marketing L.P. for all the oil and gasproduced in the US Concessions on 22 June 2009.

The key terms of the off-take agreement include the following:

(i) the price of the crude oil will be based on an arithmetic average of thedaily settlement price for the Light Sweet Crude Oil prompt monthcontract reported by the New York Mercantile Exchange from the firstday of the delivery month through the last day of the delivery month,

less US$14 per barrel;

(ii) (ii) payment for the oil purchased will be made by the 20th day of themonth following the month of delivery;

Rex International aims to

produce a total of 3264bpd from

US assets

Rex International will spend

~US$18.4mn in the next 3 years incapital expenditure for US assets


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Other Assets and Potential acquisitions

Middle East

Rex International holds its Middle East concessions through Lime Petroleum inwhich the company holds a 65% shareholding interest. Rex owns 4 concessionswhich are operated by Malaysias Hibiscus Petroleum. 1 block is onshore while other

3 blocks are offshore fields.

Figure 17: Locations of Middle East assets


All 4 blocks are currently in the exploration stage and the company plans to drillexploratory well in 2013-14.

Moreover, Rex plans to farm out some stake in Lime Petroleum's interest in thesefields and intends to raise funds for drilling. The company is currently in talks with

potential investors.

Table 15: Target drilling schedule for Middle East Assets

Field

Block 50 2 wells in 2013RAK North Concession First well in early 2014

RAK Onshore Concession F irst well potent ially by end 2014

Sharjah Concession First well by first half of 2014Source: Company reports.


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Norway

Rex International has interest in 6 licenses in Norway through Lime Petroleum. Ofthe six licenses, two (2) are located in the southern region of the North Sea, inCentral Graben with Ekofisk and Valhall as the best known oil fields in that area.The other two (2) licenses lie 45 kilometres south-east of the famous recentdiscovery of Johan Sverdrup.

Lime Petroleum Norway AS entered into an agreement with North Energy, acompany listed on the Oslo Stock Exchange on 17 April 2013, whereby NorthEnergy assigned certain of its participating interests in six (6) Norwegian licences toLime Petroleum Norway for a consideration of NOK 28.2mn (approximately US$4.9million).

Table 16: List of Norways assets

Assets Interest Other PartnersPL503/Valberget 8.10% (through 65% in Lime

Petroleum)North Energy (20), Skagen (25), Edison

International (25)PL503B/Valberget 8.10% (through 65% in Lime


International (25)PL616/Skagastol 3.30% (through 65% in Lime

Petroleum)North Energy (15), Skagen (15), Concedo (20),

Noreco Norway(20)PL498/Skagen 3.30% (through 65% in Lime


International (25)PL 707 6.5% (through 65% in Lime

Petroleum)North Energy (10), PGNIG (25), Edison

International (50)PL 708 6.5% (through 65% in Lime

Petroleum)Lundin (40), North Energy (10), Lukoil (20), Edison

(20)


Figure 18: Locations of Norways assets

Source: Company reports. 2 other licenses at PL707 and PL 708 were acquired later.

Operations in the Norwegian Licenses are in the preliminary exploration stages andRex has not commissioned an independent assessment of the resources in the

Norwegian Licenses.

The company intends to apply for a further eight (8) to 12 licences by the end of2013, with the first well estimated to be drilled in 2014. Rex also intends to

participate in the drilling of three (3) to five (5) new offshore wells within the next 18months.


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Trinidad and Tobago

Rex International signed a term-sheet with Norwegian private equity investor ParetoStaur SPV1 AS, providing the company with access to three new onshore exploration& production (E&P) opportunities in the island nation of Trinidad and Tobago.

Rex International Holding will invest USD 9 million for a 51.99 per cent stake inRex Caribbean Oil Company Ltd (Rex Caribbean Oil Company) (Investment),while Pareto Staur will invest USD 6.5 million for a 34.76 per cent stake.

The transaction will involve three E&P licenses; namely, the Inniss- Trinity field,the South Erin Blockand the Cory Moruga Block E. These assets already have

producing discoveries; and Rex will, after completion of the farm-in activities, holdworking interest of 75 per cent in the South Erin Block and 51 per cent in the CoryMoruga Block E.

Inniss Trinity Field: Inniss-Trinity field was initially developed as twoneighbouring fields; the Inniss field first drilled by Shell in 1946 and put on

production in 1961 while the Antilles-Trinity field was drilled by Texaco in 1956.Both fields were taken over by Petrotrin in the early 1980s, and were part of several

of Petrotrins onshore assets put up for bidding in the 2009 as a production servicecontract. The Inniss-Trinity field is currently producing an average of 45 bopd withno new wells being drilled since 2009. Rex International has been granted anIncremental Producion Service Contract whereby Rex International will receive afixed amount for every incremental barrel of oil produced.

The South Erin Blockhas a current production average of about 80 bopd from fourshallow wells. The 1,350-acre block, reportedly under-explored, is estimated to havea large potential. The 1ER98 Area which constitutes only a small part of the SouthErin Block, is estimated to hold more the 20 MMbbl of Oil in Place (OOIP). Anambitious drilling campaign is planned to start in December 2013 or early 2014.

TheCory Moruga Block E field (OOIP of 40 MMbbl) is located in the southern

basin, onshore Trinidad. The 7,442-acre block (gross) had 15 wells drilled in the1950s. The current operator spudded a new well in 2010, and produced at a ratestabilizing above 500 bopd. The well is currently locked in, but will be put on

production soon.

Other Potential Areas of Interest:

Asia-Pacific

Rex International holds a 41% stake in HiRex Petroleum, a JV between RexInternational and Malaysia listed Hibiscus Petroleum. The company has begunscreening potential drilling locations in mature fields and exploration opportunities inMalaysia, Australia, New Zealand, Cambodia, Vietnam, Myanmar and thePhilippines.

Rex International intends to secure 5-6 licenses in the next 18 months as largeseismic data screening process will go on in 2013 and 2014.

Western Europe

Rex International seeks to grow its presence in Western Europe with a particularfocus on the UK and Germany.


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Financial HistoryRex International has no producing fields and therefore has generated no revenue tilldate. However, Rex is expected to generate revenue by the end of this year as USassets start production. Moreover, the company has also acquired producing assets inTrinidad and Tobago which are pending approval.

Table 17: Income Statement of Rex International

in US$ mn 2011 2012Revenue

Administration fees and expenses (0.5)Operating profit 0.0 (0.5)

Share of profit of jointly controlled entities 1.8 (0.7)Share of loss of associates (3.3) (2.3)

PBT (1.5) (3.5)TaxPAT (1.5) (3.5)

EPS (US cents) (0.2) (0.4)No of shares 976.7 976.7


Table 18: Profit and Loss of Associates

Interest Associates 2011 201265% Lime Petroleum 1.81 (0.64)49% Loyz Rex Drilling Services 0.00 0.0024% FRAM (3.30) (2.31)

Source: Company reports. FRAM numbers are pro-forma

The company carried out an IPO to raise US$71.2mn and intends to spend ~50%of the proceeds in drilling for new assets, and 22% of the funds in acquiring new oiland gas assets.

Table 19: Distribution of IPO proceeds

Use of IPO proceeds in S$ mn

Investment in new oil and gas opportunities 15.7

Drilling in Middle East concessions 12.4Drilling in Norwegian Licenses 23.6Repayment of loan 2.4General working capital 12.4Listing expenses 4.8Total 71.3


Figure 19: Use of IPO proceeds


Investm ent in new oiland gas

opportunities22%

Drilling in MiddleEast concessions

18%

Drilling in NorwegianLicenses

33%

Repayment of loan3%

Generalworking capital

17%

Listing expenses7%

Rex will generate revenue by the

end of 2013 as US fields startproducing


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Current Financial Position

Table 20: Balance Sheet

Balance Sheet 4Q12 1H13

Investment in jointly controlled entities 7.4 7.9Investment in associates 33.2Plant and equipment 0.0

Intangible exploration and evaluation assets 2.4Investment in subsidiary 0.0Total non current assets 7.4 43.5Cash and Cash Equivalents 21.9Debtors and Prepayments 2.3Total Current Assets 0.0 24.3Total Assets 7.4 67.8Trade and Other payables -0.3 -0.8Convertible Loans 0.0 -27.9Loans from related corporation -1.9 -1.9Total current liabilities -2.2 -30.6Total Liabilities -2.2 -30.6Share Capital 1.0 33.5Merger Reserve 4.1 4.1Capital Reserve 0.4 1.1Accumulated profit (loss) 0.6 -1.5Total Equity 6.1 37.2


In March 2013, the company entered into a share swap agreement with FRAMExploration ASA. Under the terms of the agreement, the company issued101,792,531 of its own shares as consideration for shares in Fram. This resulted inthe Company acquiring a 24% equity interest in Fram.

In April 2013, the company issued convertible loans to investors. The terms of theconvertible loan agreements are such that the loans will be converted into ordinaryshares of the company upon the listing on a recognized stock exchange. A total cashconsideration of US$28,734,164 was received.

Table 21: Cash Flow Statement

Cash Flow Statement 1Q13 2Q13Loss from income tax -1.4 -0.7

Adjustments forDepreciation in Furniture 0.0 0.0Share of loss in associates 0.0 0.3Share of loss in jointly controlled entities 1.1 0.2Operating profit before working cap changes -0.3 -0.2Trade and other payables 0.0 -0.1Debtors and prepayments -0.1 0.0Net cash from operating activities -0.4 -0.3Purchase of plant and equipment 0.0 0.0Purchase of exploration and evaluation assets 0.0 -1.7Investments in jointly controlled entities and associates 0.0 -2.1Net cash from investing activities 0.0 -3.7Financing activitiesPrepaid IPO costs 0.0 -2.2Proceeds from convertible loan holders 0.0 27.9Cash contribution from founders 0.7 0.0

Cash from financing activities0.7 25.7

Net change in cash 0.3 21.7Beginning Cash -0.3 0.3Ending Cash 0.0 21.9



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History6 June 2011: Rex Oil & Gas entered into a concession agreement with theGovernment of Sharjah in relation to the right to explore and produce hydrocarbonsfrom the Sharjah Concession. Rex later assigned its rights to its subsidiary Zubara.

10 June 2011: Lime Petroleum was incorporated under the laws of British VirginIslands.

26 August 2011: Lime Petroleum Ltd. acquired a 59.0% interest in Dahan. Dahanowns the entire concession right to RAK North Concession in Ras al-Khaimah.

30 August 2011: Lime Petroleum Ltd. acquired a 74.0% interest in Masirah whichholds entire participating interest in Block 50 Oman Concession.

28 August 2012: Rex Oil & Gas entered into the Participation and ExplorationAgreement with Fram and Loyz Oil in relation to the US Concessions.

21 March 2013: Rex oil and Gas and its wholly-owned subsidiary, Rex South EastAsia, entered into the HiRex Shareholders Agreement with Orient Hibiscus,Hibiscus Petroleum and HiRex in respect of a joint venture between HibiscusPetroleum and our Group for joint venture entity, HiRex.

21 March 2013: Entered into a share swap with the Fram Shareholders, pursuant towhich Rex holds 24% of the issued share capital in Fram

17 April 2013: Lime Petroleum Norway AS entered into an agreement with NorthEnergy, a company listed on the Oslo Stock Exchange, whereby North Energyassigned certain of its participating interests in six (6) Norwegian licences to LimePetroleum Norway for a consideration of NOK 28,233,000 (approximately US$4.9million)

18 June 2013: HiRex signed an agreement to receive a USD10 mn investment fromPanama-based company, Triax Ventures Corp in exchange for a 15% stake in thecompany

10 July 2013: Rex Oil & Gas converted into a public limited company and its namewas changed to Rex International Holding Limited.

22 July 2013: Invitation for IPO opened, and closed on 29th July 2013. Thecompany planned to raise US$71mn via IPO.

30 July 2013: Started trading on Singapore Exchange with a price of US$0.5/share.

17 Aug 2013: Rex International inks term-sheet with Norway's PE firm Pareto Staurgranting Rex access to 3 Trinidad and Tobago assets.

18 Sep 2013:Lime Petroleum to acquire 10% stake in 2 Norway assets PL 707 andPL 708from North Energy.

20 Sep 2013: Bass Strait Oil Company signs agreement with HiRex to use Rexstechnology for exploration opportunities in Australia. HiRex has an option to acquire51% stake in the asset if exploration is successful.

Figure 20: Rex International Ownership%

Source: Bloomberg, As of 23 Sep 2013.

Figure 21: Rex International since IPOS$

Source: Bloomberg

Rex Partners57%

SchrodersPLC9%

Others34%

0.4

0.5

0.6

0.7

0.8

0.9

1

30-Jul-13 9-Aug-13 19-Aug-13 29-Aug-13 8-Sep-13 18-Sep-13


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Experienced Management Personnel

Table 23: Key Management personnel for Rex International

Name Designation ProfileMans L idgren Chief Execut ive Off icer Mr Lidgren graduated from Lund University in Sweden with a Bachelor of Science and a Master of Science, both in Business Administration and Economics in 1999 and 2000

respectively. From 2002 to 2007, he joined his family business in private investments where he was a business analyst in 2002, and subsequently a merger and acquisitions manager in2003 and 2004. From 2005 to 2007, he assumed the position of senior investment manager in his familys business, and carried out portfolio management, liaison with partner banks

and private equity transactions. Mr Lidgren subsequently joined Credit Suisse in January 2008 as a vice president of business development and, among others, managed his own clientportfolio, acted as a broker for sourcing of new business and pre-screened business proposals under the private banking division. After leaving Credit Suisse in August 2009, Mr Lidgrenre-joined his familys business where he was chief financial officer until August 2011. He later joined Lime Petroleum Plc from August 2011 to December 2012, and took on the roles of

interim chief executive officer and director. Mr Lidgren joined Rex in January 2013 as Chief Executive Officer.KristoferSkantze

Chief Operating Officer Mr Kristofer Skantze is Groups Chief Operating Officer where he is responsible for he Groups overall operations, including the integration of new business development plans intothe Groups operations. Prior to joining Rex, Mr Skantze was the head of sales and marketing at HeiQ Materials AG from 2007 to 2012, a privately-owned textile chemical company.

From 2000 to 2007, Mr Skantze held various positions within the Anoto Group AB, a Swedish high-tech company. Mr Skantze was the business development manager of Anoto Inc. atBoston from 2005 to August 2007, where he managed the partner network and was responsible for all new North American customers. Mr Skantze held positions of key account

manager, technical project manager and project manager in sales and business development at Anoto Group AB in Lund in Sweden from 2000 to 2005, where he also invented andfiled for several patents of which at least nine were granted. Mr. Skantze obtained a Masters degree in Engineering Physics from the Faculty of Engineering of University of Lund in

Sweden.Ake Knutsson Chief Financial Officer Mr Knutsson oined Rex International in 2011 as the Chief Financial Officer of its subsidiary, Lime Petroleum Plc, and was subsequently appointed he Companys Chief Financial

Officer in 2013. Prior to joining Rex, Mr Knutsson was the Chief Financial Officer of the Prestando Group since 2009, a supplier of pressed high-grade steel parts to the automotiveindustry in Europe and the USA. Between 2006 and 2009, Mr Knutsson was managing direct or of A Clean Partner International AB, a company which develops and sells cleaning

substances to industries in Sweden and other Nordic countries. Mr Knutsson graduated from the University of Lund in Sweden with a degree in Business Administration withInternational Orientation.

Lina Bernsten Chief Technology Officer Mrs Lina Berntsen obtained a Master of Science in Chemical Engineering from the University of Lund in Sweden in 2007. Mrs Berntsen started work with a biotechnology company,Chemel AB, from 2004 to 2006. She was the marketing coordinator in Chemel AB and also worked on product development. From 2008 to 2010, Mrs Berntsen worked as a

development engineer in Gambro Lundia AB, a global medical technology company, where she was responsible for product development and design control relating to dialysistechnology. After her stint at Gambro Lundia AB, Mrs Berntsen joined Rex Oil & Gas as the Rex Virtual Dri lling specialist and oversaw the operations and co-ordinated analyses in

relation to the use of Rex Virtual Drilling, until 2011. She later left to join Equus Consulting AB which she partly-owns. Equus Consulting AB is in the business of advanced mathematicalanalysis and Mrs Berntsen provided consultancy services to Rex as a technology specialist from 2011 to 2012. In 2012, Mrs Berntsen re-joined Rex where she continued working as the

Rex Virtual Drilling specialist to Lime Petroleum Norway.Dr Karl Lidgren Non Executive Director Dr Karl Lidgren is he Non-Executive Director and was appointed to he Board of Directors on 1 May 2013. Dr Lidgren graduated from Lund University in Sweden in 1970 with a degree

in Economics. Upon graduation, he taught in Lund University until 1972 before taking on the role of an investigator for the Swedish Government from 1972 to 1980. He concurrentlyobtained a Doctor of Philosophy from Lund University in 1976 in Economics. Dr Lidgren taught in Lund University as a Professor from 1980 until his retirement in 2000. Dr Lidgren

founded Rex Partners with his brother, Mr Hans Lidgren, and Mr Svein Kjellesvik. Dr Lidgren and Mr Hans Lidgren have, since the 1980s, utilised satellite altimeter data in oilexploration activities which enabled major oil and gas findings.

Svein Kjellesvik CEO, Lime Petroleum Mr Kjellesvik has a Masters degree in Applied Geophysics from the Norwegian Institute of Technology (NTH) in Trondheim, Norway (received in 1973).Starting as a SeismicProcessing Geophysicist in Stavanger in 1975, Kjellesvik has held leading positions in Schlumberger's seismic division. He has also been the President of their Global Marine Seismic

Division. Kjellesvik has played leading roles in key innovations in the seismic industry which includes multi-cable 3D seismic, 4 component seismic, and seismic 4D. He has also servedat the corporate headquarter of Schlumberger. Since retiring from Schlumberger in 2002, Kjellesvik has been an independent entrepeneur. Since 2008, Svein as been involved in the

start-up of Rex Oil & Gas and Lime Petroleum.


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Figure 23: Rex International Corporate Structure

Source: Company


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Rex International Holdings: Summary of Financials (US$ mn)

Profit and Loss Statement FY11 FY12* Cash Flow Statement FY11 FY12*

Revenue 0.0 0.0 Profit for the period 1.8 (3.5)Operating Profit 0.0 (0.5) Share of (gain)/loss of jointly controlled entities (1.8) 0.7

Share of loss of associates 0.0 2.3Share of Profit/Loss of Associates (1.5) (3.0) Increase in operating Payables (+) 0.0 0.1

Increase in operating payables due to relatedcorporation 0.0 0.0

Profit Before Tax (1.5) (3.5) Waiver of debt by equity holders 0.0 0.4Tax 0.0 0.0 Net cash generated by operating activities 0.0 0.0Profit After Tax (1.5) (3.5) Cash from investing activities 0.0 0.0

Shares outstanding 977 977Proceeds from conversion of convertible loaninstruments 0.0 28.7Proceeds from issue of shares 0.0 54.6

EPS (0.2) (0.4) Cash from financing activities 0.0 83.3Net change in cash 0.0 83.3Beginning Cash 0.0 0.0Ending Cash 0.0 83.3

Balance Sheet FY11 FY12* Ratio Analysis FY11 FY12*Investment in jointly controlled entities 5.9 7.4Investment in associate 0.0 33.1 ROE n/m -2.9%Total non current assets 5.9 40.5 ROA n/m -2.8%

Assets/Equity n/m 1.02Cash and cash equivalents 0.0 83.3Total Current Assets 0.0 83.3 Sales Growth n/m n/m

Net Profit Growth n/m n/mTotal Assets 5.9 123.8 Net Debt to Equity n/m (0.69)Other payables 0.0 2.2Current Liabilities 0.0 2.2Non Current Liabilities 0.0 0.0Total Liabilities 0.0 2.2Share Capital 0.0 116.4Merger Reserve 4.1 4.1Capital ReserveRetained Earnings 1.8 0.6

Total Equity 5.9 121.6Source: Company Reports*FY12 accounts are pro forma and assumes that IPO, FRAM share swap and convertible bonds have taken place before 31st Dec 2012.


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