Unaudited Interim Results For The Half Year Ended 30 June 2013

Market Share Revenue Occupancy RevPAR Costs

17%
27%

4%
$13.2million

10%
43%

13%
$ 36

12%
$1.6million

EBITDA

982%
$ 1.644 million
CHAIRMANS STATEMENT
The directors of Rainbow Tourism Group Limited (RTG) are pleased to announce the unaudited interim results for the six months ended 30 June 2013. 1. HIGHLIGHTS Profit after tax of $105,000 achieved in first half from a loss of $3.2 million. Revenue of $13.2 million for the 2013 half year versus $12.7 million for the same period in 2012, a growth of 4% above prior year (Rooms - 2.8% , F&B - 9.3% ). Costs reduced by $1.6 million. Occupancy : 10 % to 43% from 39% in prior year. Market Share : 17% to 27% in 2013 from 23% in 2012 against a fair share of 25%. RevPar : 13% to $36 from $32 in prior year. EBITDA : 982% to $1,644,000 from $152,000 same period last year. Interest cost : 47% to $851,000 from $1,600,000 same period last year. Gearing : to 57% from 69% in December 2012. Net assets : to$15.85 million from $13.7 million same period last year. to $21.09 million from $23.34 million same period last year. Net debt : Foreign Business : 27% in business mix from 22:78 in 2012 to 28:72 in 2013. 2. OPERATING ENVIRONMENT RTG turns to profitability. This is consistent with the Groups turnaround strategy, despite a constrained trading environment. Domestic business activity was affected by liquidity challenges, rising costs of key inputs and intense competition. As world travel is anticipated to grow by about 4% in 2013, driven by Asian, Pacific and African countries, we expect to continue to benefit from increased inbound travel trade. This global trend, together with the RTG sales restructure and consequent increased global efficiencies and reach, has seen a 27% increase in foreign business into the Groups hotels.

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION as at 30 June 2013 Group Group Group 30.06.2013 30.06.2012 31.12.2012 US$ US$ US$ Unaudited Unaudited Audited NOTES TO THE SUMMARY FINANCIAL STATEMENTS ASSETS for the half year ended 30 June 2013 Non current assets Property and equipment 36,114,767 34,170,053 35,814,057 Intangible asset 202,228 235,932 206,441 36,316,995 34,405,985 36,020,498 1. GENERAL INFORMATION Rainbow Tourism Group Limited, is a company incorporated and domiciled in Zimbabwe with Current assets Inventories 2,081,696 1,871,319 1,967,424 operations in Zambia and Mozambique. The Group is in tourism services industry as hoteliers, tour Accounts receivable 6,211,739 7,158,774 5,688,796 operators and providers of conference facilities. Its registration number is 4880/91. The Group is Held to maturity investments - 900,000 - Held for trading investments 5,847 18,335 25,288 listed on the Zimbabwe Stock Exchange. Cash and cash equivalents 2,537,827 4,623,126 2,961,923 10,837,109 14,571,554 10,643,431 2. Significant accounting policies and estimates Assets in disposal group The Condensed Interim Financial Statements have been prepared in accordance with the classified as held for sale 1,689,520 1,784,418 1,722,452 accounting policies and estimates adopted in the Groups last Annual Financial Statements. Total assets 48,843,624 50,761,957 48,386,381 3. Basis of preparation EQUITY AND LIABILITIES Capital and reserves Share capital Share premium Non distributable reserves Foreign currency translation reserve Revaluation reserve Accummulated losses Total equity Non current liabilities Borrowings Deferred tax Current liabilities Borrowings Accounts payable Tax payable Bank overdraft Liabilities directly associated with assets in disposal group classified as held for sale Total liabilities Total equity and liabilities 187,055 4,477,500 16,711,500 (21,091) 1,257,114 (6,761,090) 15,850,988 18,456,338 2,113,325 20,569,663 709,722 8,181,691 122,524 1,923,189 10,937,126 32,992,636 48,843,624 1,485,847 164,555 - 16,922,452 (18,250) 1,108,995 (4,479,753) 13,697,999 10,740,838 3,603,404 14,344,242 7,708,804 9,349,748 - 4,895,793 21,954,345 37,063,958 50,761,957 765,371 164,555 - 16,711,500 1,498 1,257,114 (6,865,677) 11,268,990 10,162,903 2,295,798 12,458,701 10,206,224 8,570,017 122,524 4,161,270 23,060,035 37,117,391 48,386,381 1,598,655 The Interim Financial Statements for the half year ended 30 June 2013 have been prepared in accordance with International Accounting Standard 34,Interim Financial Reporting,and in terms of the Zimbabwe Stock Exchange(ZSE) listing rules and the Companies Act,(Chapter 24:03). The Interim Financial Statements are based on statutory records that are maintained under the historical cost convention,except for land and buildings that are maintained at fair value. 4. Property and equipment Additions to property and equipment Depreciation and amortisation 30.06.2013 30.06.2012 31.12.2012 US$ US$ US$ 1,197,073 763,909 973,453 755,717 3,936,629 1,536,887

5. Cash and cash equivalents Cash on hand Bank overdraft

30.06.2013 US$ 2,537,827 (1,923,189) 614,638

30.06.2012 US$ 4,623,126 (4,895,793) (272,667)

31.12.2012 US$ 2,961,923 (4,161,270) (1,199,347)

3. FINANCIAL REVIEW Revenue for the Group registered positive growth. The half year ended 30 June 2013 saw revenue increasing by 4% to $13.2 million compared to the corresponding period last year. Occupancies improved by 10%, whilst the average room rate grew from $81 in 2012 to $84. Revenues improved by 4%, with operating costs decreasing by $1.6 million resulting in a pleasing EBITDA margin. EBITDA grew by 982% to $1.644 million (12% margin) from $152,000 (1% margin) attained in the corresponding period last year. The margin growth is a direct result of cost reduction measures embarked on in November 2012. The cost reduction measures have addressed core cost impact items that will see a sustained efficient system going forward. Interest expense reduced by 47% to $851,000 from the same period last year following the retirement of much of the short term loans. Other significant short term loans were restructured to long term which resulted in reduced average cost of borrowing to 11%. The target is to futher reduce cost of borrowing to 7% by December 2013. The Groups continuing operations achieved a profit before tax of $29,049 compared to a loss of $2.2 million recorded in the prior period. The total debt reduced by 14% from $24.5 million at 31 December 2012 to $21.1 million at 30 June 2013. Gearing for the same period reduced from 69% to 57%.

4. REFURBISHMENT PROGRAMME Rainbow Towers Hotel and Conference Centre The works resumed in second quarter of 2013. The project is progressing well with the first 60 rooms that had been taken out for refurbishment now complete and released back into circulation on 31 July 2013. The remainder of the project is expected to be completed by January 2014. Beitbridge Hotel Project The construction of the hotel is now complete. Funding for equipment, furniture and fittings has been secured and the remaining works will be completed in the third quarter. The hotel is set to open for trading on 1 November 2013. The full impact to the Group operations will be felt in 2014. Bulawayo Rainbow Refurbishment Refurbishment has progressed well, with the rooms carpeting, hot water system and lifts having been done. Focus is now on public areas including reception, bar and restaurants. This will be completed by first quarter of 2014.

5. CORPORATE SOCIAL INVESTMENT The Group continues to support the green agenda by sponsoring the Environment Reporter Awards in partnership with Environment Africa. These awards advocate for sustainable environmental reporting by journalists in Zimbabwe and have been in place for the past 15 years. RTG is also an active participant in the Green Fund project established to promote environmental awareness in Victoria Falls. RTG successfully raised funds to send 30 adolescent young women infected with HIV & AIDS for technical skills training, and managed to avail six months supply of anti-retroviral drugs under the ZAPP/UZ SHAZ project partnership. Going forward, RTG will seek to be an agent of empowerment to local communities by making use of its business entities to set up economically viable projects for local communities as a way of adding value to its social entities.

6. DIVIDENDS In view of the growth and futher investments still required in the business, the Directors have resolved that no interim dividend be declared for the half year ended 30 June 2013. 7. DIRECTORATE Dr. J. Kanyekanye stepped down as Chairman on 9 July 2013. He still remains a non-executive director on the board. Mr David Govere was appointed to the Board effective 9 July 2013 to replace Mrs Rosa Dube who resigned from the Board effective 16 June 2013. I welcome Mr Govere to the RTG board and his appointment will be confirmed in the next Annual General Meeting. I wish to sincerely thank Dr. J. Kanyekanye for his board leadership which was instrumental for turning around the fortunes of RTG. I also thank Mrs Rosa Dube for her contribution both as director and chairman of the risk and audit committee. OUTLOOK The improving occupancy trend is set to continue in the second half of the year. Focus will remain on embedding the IM FRESH Service Culture and intensifying Sales and Marketing efforts to grow revenues as well as the RTG Brand. In addition, continued success will come from enhancing the product, implementing further cost reduction measures, generation of free cashflows and prudent working capital management. The Group will seek to capitalize on the visibility and destination marketing opportunity presented by the hosting of the UNTWO General Assembly, a rare showcase for the country, to be held in August 2013 in Victoria Falls. ACKNOWLEDGEMENT I would like to express my gratitude to the management team for achieving the half year profit, a major swing from a significant loss position in 2012. Again, this being achieved in the low season for this industry. I thank all stakeholders, business partners, the Board Members and shareholders for their continued support and commitment in driving this Group forward.

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 6. Share capital for the half year ended 31 June 2013 Number of shares (000) Group Group Group 30.06.2013 30.06.2012 31.12.2012 Authorised shares 2,500,000 2,500,000 2,500,000 US$ US$ US$ Unaudited Unaudited Audited Issued shares 1,870,546 1,645,546 1,645,546 Revenue 13,229,721 12,667,324 27,570,966 7. Earnings per share Cost of sales (1,381,928) (1,419,681) (3,008,238) Gross profit 11,847,793 11,247,643 24,562,728 7.1 Basic earnings per share (continuing operations) Other operating income 57,860 203,348 212,787 Profit/(loss) attributable to shareholders 211,522 (2,174,583) (3,416,297) Operating expenses (10,261,467) (11,298,977) (24,161,131) Weighted average number of shares Earnings before interest, tax, in issue(000s) 1,870,546 1,645,546 1,645,546 depreciation and amortisation 1,644,186 152,014 614,384 Depreciation (763,909) (755,717) (1,536,887) Basic earnings per share(US cents) 0.01 (0.13) (0.21) Profit/(loss) from operations 880,277 (603,703) (922,503) Finance expense (851,228) (1,597,942) (3,653,963) 7.2 Headline earnings per share (continuing operations) Profit/(loss)before tax 29,049 (2,201,645) (4,576,466) Profit/(loss) attributable to shareholders 211,522 (2,174,583) (3,416,297) Income tax 182,473 27,062 1,160,169 Profit/(loss) after tax from Profit on sale of assets - (172,662) (276,991) continuing operations 211,522 (2,174,583) (3,416,297) 211,522 (2,347,245) (3,693,288) Loss from discontinued operations,net of tax (106,935) (1,115,449) (2,470,611) Weighted average number of shares Profit/(loss) for the year 104,587 (3,290,032) (5,886,908) in issue(000s) 1,870,546 1,645,546 1,645,546 Other comprehensive income: Gain on property revaluation(net of tax) - - 148,119 Headline earnings per share(US cents) 0.01 (0.14) (0.22) Exchange loss arising on translation of foreign operations (22,589) (26,416) (6,668) Total comprehensive income/(loss) 81,998 (3,316,448) (5,745,457) 8. Revenue 30.06.2013 30.06.2012 31.12.2012 Basic earnings per share(US cents) 0.01 (0.13) (0.21) US$ US$ US$ Headline earnings per share(US cents) 0.01 (0.14) (0.22) Zimbabwe 12,459,645 11,647,263 25,379,862 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS Mozambique 770,076 1,020,061 2,191,104 for the half year ended 30 June 2013 13,229,721 12,667,324 27,570,966 Group Group Group 30.06.2013 30.06.2012 31.12.2012 US$ US$ US$ 9. Statement of comprehensive income for discontinued operations Unaudited Unaudited Audited for the half year ended 30 June 2013 CASH FLOWS FROM OPERATING ACTIVITIES 30.06.2013 30.06.2012 31.12.2012 US$ US$ US$ Cash generated from operations 457,439 (280,053) 1,582,468 Interest received 89,102 45,676 220,827 Investment income 65,049 202,844 212,787 Revenue - 1,181,739 1,927,089 Interest paid (940,330) (1,681,660) (3,874,791) Income tax paid - (378,228) (255,704) Cost of sales - (296,208) (426,276) Exchange gains/(losses) on Gross profit - 885,531 1,500,813 translation of foreign operations 23,424 (28,733) 6,668 Net cash outflow from operating activities (305,316) (2,120,154) (2,107,745) Operating expenses (73,143) (1,870,734) (3,775,188) CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property and equipment (1,197,073) (973,453) (3,936,629) Earnings before interest, tax, Proceeds from sale of depreciation and amortisation (73,143) (985,203) (2,274,375) property and equipment - 805,000 217,602 Proceeds from sale of subsidiaries - - 762,000 Depreciation (33,792) (92,204) (136,093) Proceeds from sale of held for trading investments 19,441 - Impairment of property and equipment - - (22,015) Disposal of investment property - 650,000 580,000 Net cash (outflow)/inflow Loss from operations (106,935) (1,077,407) (2,432,483) from investing activities (1,177,632) 481,547 (2,377,027) Finance expense - (38,042) (38,042) CASH FLOWS FROM FINANCING ACTIVITIES Loss before tax for the year (106,935) (1,115,449) (2,470,525) Decrease in borrowings (1,203,067) (3,173,827) (1,254,342) Proceeds from rights issue of ordinary shares 4,500,000 - Net cash inflow/(outflow) Income tax - - (86) from financing activities 3,296,933 (3,173,827) (1,254,342) Loss from discontinued operations (106,935) (1,115,449) (2,470,611) NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS 1,813,985 (4,812,434) (5,739,114) CASH AND CASH EQUIVALENTS AT BEGINNING OF THE YEAR (1,199,347) 4,539,767 4,539,767 CASH AND CASH EQUIVALENTS AT END OF THE YEAR 614,638 (272,667) (1,199,347) CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY for the half year ended 30 June 2013 Share capital US$ Balance at 1 January 2013 164,555 New issue of shares 22,500 Total comprehensive income/ (loss) for the period - Balance at 30 June 2013 187,055 Balance at 1 January 2012 164,555 Total comprehensive income/ (loss) for the period - Balance at 30 June 2012 164,555 Balance at 1 January 2012 Total comprehensive loss for the year Transfer within reserves Balance at 31 December 2012 164,555 - - 164,555 Share premium US$ - 4,477,500 - 4,477,500 - - - - - - - Non distributable reserve US$ 16,711,500 - - 16,711,500 17,174,038 (251,586) 16,922,452 17,174,038 - (462,538) 16,711,500 Foreign currency translation reserve US$ 1,498 - (22,589) (21,091) 8,166 (26,416) (18,250) 8,166 (6,668) - 1,498 Revaluation reserve US$ 1,257,114 - - 1,257,114 1,108,995 - 1,108,995 1,108,995 148,119 - 1,257,114 Accummulated losses US$ (6,865,677) - 104,587 (6,761,090) (1,441,307) (3,038,446) (4,479,453) 1,441,307 (5,886,908) 462,538 (6,865,677) Total equity US$ 11,268,990 4,500,000 81,998 15,850,988 17,014,447 (3,316,448) 13,697,999 17,014,447 (5,745,457) - 11,268,990

Visual Point 13619

J.M. Chikura Chairman

Directors: John M. Chikura (Chairman),Tendai Madziwanyika (Chief Executive), Grant Gore (Finance Director), Shingirayi N. Chibanguza, David Govere, Ian C. Haruperi, Douglas Hoto, Joseph Kanyekanye, Douglas Mavhembu, Thandiwe T. Mlobane, Shadreck C. Vera

www.rtgafrica.com