ABRIDGED UNAUDITED RESULTS

FOR THE YEAR ENDED 30 SEPTEMBER 2013

TURNOVER TURNOVER UP BY 25% $6,814,259 OPERATING LOSS $401,504

STATEMENT OF COMPREHENSIVE INCOME

YEAR ENDED 30 SEPTEMBER 2013 US$ UNAUDITED YEAR ENDED 30 SEPTEMBER 2012 US$ AUDITED

STATEMENT OF CHANGES IN EQUITY

YEAR ENDED 30 SEPTEMBER 2013 US$ UNAUDITED YEAR ENDED 30 SEPTEMBER 2012 US$ AUDITED

Turnover Operating loss Realised loss on investments Net interest expense Loss before taxation Taxation Loss for the year Other comprehensive income Revaluation of property, plant & equipment Income tax relating to other comprehensive income Total comprehensive income for the year Loss per share - cents Diluted loss per share - cents

6,814,259 (401,504) (3) (470,483) (871,990) 101,369 (770,621) 11,156,788 (2,874,817) 7,511,350 (0.04) (0.04)

5,457,961 (1,036,293) (300,058) (1,336,351) 301,679 (1,034,672) 15,000 (3,863) (1,023,535) (0.06) (0.06)

Shareholders' equity at beginning of period Revaluation of assets Deferred tax Loss attributable to shareholders Other comprehensive income Shareholders' equity at end of period

6,717,969 11,156,788 (2,874,817) (770,618) (3) 14,229,319

7,741,504 15,000 (3,863) (1,034,672) 6,717,969

SUPPLIMENTARY INFORMATION
YEAR ENDED 30 SEPTEMBER 2013 US$ UNAUDITED YEAR ENDED 30 SEPTEMBER 2013 US$ UNAUDITED YEAR ENDED 30 SEPTEMBER 2012 US$ AUDITED YEAR ENDED 30 SEPTEMBER 2012 US$ AUDITED

STATEMENT OF FINANCIAL POSITION

1.

Commitments for capital expenditure Authorised by directors but not contracted for The capital expenditure is to be financed out of the Company's own resources and existing borrowing facilities

1,240,324

1,080,100

Assets Non current assets Property, plant and equipment Current assets Inventories Trade and other receivables Taxation Investments Cash and cash equivalents Total assets Equity and liabilities Equity Share capital Capital reserve Accumulated loss Non current liabilities Deferred taxation Medium to long term borrowings Current liabilities Short term borrowings Trade and other payables Provisions Total equity and liabilities 14,229,319 88,900 18,663,432 (4,523,013) 6,142,990 5,272,436 870,554 5,781,303 1,954,315 3,548,231 278,757 26,153,612 6,717,969 88,900 10,381,461 (3,752,392) 2,727,784 2,501,605 226,179 5,126,545 2,623,657 2,256,095 246,793 14,572,298 24,551,821 1,601,791 1,231,000 285,875 2,837 82,079 26,153,612 13,170,422 1,401,876 1,144,267 241,299 2,837 3 13,470 14,572,298

2. 3.

Net interest bearing debts Borrowings

2,824,869

2,849,836

Accounting convention The financial results are based on the statutory records that are maintained under the historical cost convention and have, in all material respects, been prepared applying applicable accounting policies that are consistent with the prior year, adjusted for necessary changes/ amendments effective for the current period.

COMMENTARY - Financial year ended 30 September 2013

Overview The operating environment was characterized by a liquidity crisis that curtailed consumer spending and resulted in shortages of cash and high costs of borrowing. As a result anticipated critical funding could not be obtained on time resulting in subdued throughput and profitability. The business still requires refinancing to refurbish plant, acquire critical mobile equipment and provide sufficient working capital. Financial Results Turnover increased by 25% to $6.8 million compared to the prior year driven mainly by a 27% increase in volumes sold. Average revenue per 1000 bricks fell by 2% as there was pressure on prices due to cash shortages in the market. Improved volumes and cost reduction measures implemented during the year resulted in a reduction in the operating loss to $0,4m (2012: $1 million), after charging $525,968 to depreciation of property, plant and equipment. Although performance was better than the prior year, the company is in need of urgent recapitalization in order to further reduce unit production costs and improve profitability. Production Green and burnt production volumes increased by 17% and 31% respectively over the prior year. Down time of over 44 per cent was recorded for the year under review, with most of it caused by mobile equipment shortages. The bulk of funds from the current fund raising initiatives will be utilized towards reducing this down time. Several cost cutting measures undertaken across the production cycle resulted in reduced unit costs of production and improved margins. Costs of production still remain high relative to the region. Increasing production through put and cost reduction remain the key tasks of management. Sales and Marketing Sales volumes increased by 27% over the prior year. Brick availability improved significantly following an increase in fired production. Despite the cash squeeze which limited growth in revenues, enquiries continued to be received for a variety of bricks. There are several construction projects that will be targeted in the ensuing year which should result in further growth in volumes beyond the critical mass. Margins should further improve as volumes increase. Human Resources The industrial relations climate remained stable during the year under review, despite the harsh economic environment. A review of staffing levels across the value chain bench marking against best practice is under way. This will result in improved productivity and a reduction in unit staff costs. The position of Chief Executive Officer will be filled during the second quarter of the financial year. Security Although the security situation has significantly improved, management remains vigilant against threats of resurgence in theft cases, as a result of the harsh economic environment. Security cooperation through the area security cluster will be critical in reducing security risk. Outlook Current negotiations to refinance the Company, which are now at an advanced stage, will provide timely funding to maximize production during the peak production months of the year. This should provide stock to meet existing and new orders for various construction projects planned for the next financial year. In this regard, we are confident of further positive growth in revenues and improved profitability from increased throughput and reduced unit costs in the next financial year. Going Concern The Board believes that the Company will continue to operate as a going concern at least for the coming financial year and as a result financial statements for the period under review have been prepared using the going concern concept. The Boards view is based on the successful conclusion of negotiations with a potential financier, continued support from current financiers and suppliers and other initiatives that the Board is undertaking to improve the Companys performance. Dividend No dividend will be paid with respect to the year ended 30 September 2013 due to accumulated losses. Appreciation On behalf of my fellow Directors and Shareholders, I would like to express my sincere appreciation to our customers, suppliers and all stakeholders for their valued support. I would also want to thank management and staff for working tirelessly to improve the fortunes of the Company under difficult circumstances. Best wishes for the new year. Mount Hampden 21 January 2014 A C Jongwe Chairman

STATEMENT OF CASH FLOWS

YEAR ENDED 30 SEPTEMBER 2013 US$ UNAUDITED YEAR ENDED 30 SEPTEMBER 2012 US$ AUDITED

Operating loss Adjustments for non-cash items: Depreciation Loss/(Profit) on sale of property, plant and equipment Impairment loss on assets Other non cash items Cash flow before changes in working capital Working capital changes (Increase)/decrease in inventories (Increase) /decrease in accounts receivable Increase in accounts payable Cash generated/(utilised) from operating activities Interest paid Interest received Net cash generated/(utilised) from operating activities Purchase of plant and equipment Proceeds on sale of plant and equipment Cash outflow from investing activities Proceeds from medium to long term borrowings Overdraft conversion to loan Loan repayment Cashflow from financing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and bank Short term borrowings Closing cash and cash equivalents at 30 September 2013 Cash and bank Short term borrowings

(401,504) 525,968 390 3,718 128,572 (86,733) (44,576) 1,291,513 1,288,776 (470,553) 70 818,293 (664,998) 3,717 (661,281) 1,200,000 (453,094) 746,906 903,918 (2,245,027) 13,470 (2,258,497) (1,341,109) 82,079 (1,423,188)

(1,036,293) 436,821 (1,000) 65,142 9,886 (525,444) (334,501) (44,605) 219,723 (684,827) (276,109) 151 (960,785) (23,586) 5,000 (18,586) 235,296 (158,664) 76,632 (902,739) (1,342,288) 18,541 (1,360,829) (2,245,027) 13,470 (2,258,497)

Our

has been preceding us

since 1957
(*Executive)

D I R E C T O R S

A. C. Jongwe (Chairman), J.J. Brooke, G.A. Chigora, M.A. Gumbie, M.P. Karombo, C. Makoni, M.G. Revanewako, M. Munginga*

JERICHO 041042

4.

Basis of preparation The annual accounts are prepared in accordance with International Financial Reporting Standards issued by the International Accounting Standards Board(IASB) and interpretations issued by the International Financial Reporting Interpretations Committee(IFRIC) of the IASB.