Group Unaudited Financial Results for the 6 Months Ended 30 September 2013

Abridged Consolidated Statement of Comprehensive Income

for the 6 months ended 30 September 2013

UNAUDITED UNAUDITED

Sep-13 US$

Sep-12 US$

Abridged Consolidated Statement of Cash flows

Chairmans Statement
for the 6 months ended 30 September 2013 UNAUDITED UNAUDITED Sep-13 Sep-12 US$ OVERVIEW US$ US$

for the 6 months ended 30 September 2013

Continuing operations Revenue Loss before depreciation, interest and tax Restructuring costs Depreciation expense Impairment loss Net financing costs Income from associate Loss before taxation Income tax credit Loss for the period from continuing operations Discontinued operations (Note 3) Loss for the period from discontinued operations Loss for the period Other comprehensive loss (net of tax) Impairment on previously revalued properties Exchange differences on translating foreign operations Total comprehensive loss for the period Loss for the period attributable to: Non- controlling interest Equity holders of the parent Total comprehensive loss attributable to: Non controlling interest Equity holders of the parent Loss per share Basic -continuing & discontinued operations Basic -continuing operations Headline -continuing & discontinued operations Headline -continuing operations Weighted average number of shares for the period 6 941 667 17 395 194 (1 495 395 ) (2 150 030 ) - (87 277 ) (415 877 ) (827 182 ) - (305 183 ) (2 814 783 ) (2 108 334 ) 629 712 598 207 (4 096 343 ) (4 879 799 ) - 122 604 (4 096 343 ) (4 757 195 ) (1 141 230 ) (74 273 )

Cash flows from operating activities Net cash generated in operations Income tax paid Net interest paid Net cash outflow from operating activities Additions to plant and equipment Disposal of plant and equipment Dividend received from associate Net cash generated from investing activities Repayment of short term borrowings Net cash outflow from financing activities Decrease in cash and cash equivalents Cash and cash equivalents at the start of the period Cash and cash equivalents at the end of the period

(30 629 ) (91 468 ) - (34 724 ) (235 018 ) (1 162 562 ) (265 647 ) (1 288 754 ) (62 892) (48 853) 31 085 411 546 352 397 365 486 320 590 728 179 (110 745 ) (1 361 037) (110 745 ) (1 361 037 ) (55 802 ) (1 921 613 ) 483 395 2 599 295 427 593 677 683
30-Sep-13

During the period under review, the company concluded a Scheme of Arrangement with its creditors and lenders and the Scheme was sanctioned by the High Court on 7 August 2013 and registered with the Registrar of Companies on 14 August 2013. In terms of the scheme, the total amounts owed will be settled over a period of up to thirty six (36) months. The scheme entailed a restructuring of both the Companys debt and Balance Sheet, the disposal of Bluestar Logistics and the Companys 33.3% shareholding in Tongaat Hulett Botswana (Proprietary) Limited to fund the requisite part settlements to lenders and creditors. It also allowed the Company a 6 month moratorium to facilitate the plant upgrade at Goldstar Sugars Harare (GSSH). GROUP RESULTS The Groups loss before tax from continuing operations was USD4.1 million, compared with a prior year loss before tax of USD4.8 million. Discontinued operations incurred a loss before tax amounting to USD1.1 million, compared with USD74 273 sustained last year. Finance costs for the period under review were USD2.8 million compared with USD2.1 million in prior year. Continuing Operations Production at GSSH was 5 416 tonnes, a decrease of 44% on prior year. Production was adversely affected by inefficiencies arising from the use of antiquated plant and a three month plant shut down due to civil work that was being carried out in preparation for the plant upgrade. Sales volumes were adversely impacted by lower priced sugar imports that flooded the domestic market and low production volumes consequent upon the three month plant shut down. Representations have been made to regulatory authorities at Sugar Industry and undertaking levels for corrective action to be taken to ensure that locally produced sugar competes on an even keel with imported sugar dumped on the domestic market. Goldstar Sugars Bulawayo (GSSB) remained under care and maintenance during the period under review. Country Choice Foods recorded an operating profit of USD307 413 for the half year ended 30 September 2013, which is 57% of the USD537 271 realised in the comparative period last year. This performance was achieved in spite of fierce competition from imports. The Industrial Division posted a combined operating loss of USD355 204 compared with a loss of USD265 633 incurred last year. Discontinued Operations Arthur Garden Engineering, Bluestar Logistics, Grant Chemicals, Polyfilm Plastics, Retail Business and Highfield Bag were classified as discontinued operations. Bluestar Logistics profit performance was adversely affected by low business volumes from GSSH, liquidity constraints obtaining in the market and low vehicle availability. Although Bluestar Logistics is profitable, it is being disposed of as part of efforts to raise funds for the Scheme of Arrangement. Performance at both Polyfilm Plastics and Highfield Bag continued to be adversely affected by working capital constraints and plant obsolescence. Arrangements for the disposal of all discontinued operations are at an advanced stage. GSSH Plant Upgrade The manufacture of equipment for upgrading the plant at GSSH continued in India and the first lot of equipment was despatched from Mumbai/Nhava Sheva Port to Durban Port on 11 December 2013. The second lot will be despatched in the first week of Januay 2014. The last lot will be dispatched on or before 28 February 2014. Civil works have been completed and the procurement of the local components for the plant upgrade is at an advanced stage. Installation will commence in the latter half of January 2014 and commissioning is targeted for mid April 2014. The upgraded plant will increase production capacity from the current 300 tonnes per day to 600 tonnes per day. This will also result in improved sugar yield, quality and operational efficiencies, in addition to bringing the latest sugar refining technology and world standards at GSSH. As a result, GSSH will be able to consistently satisfy refined sugar requirements for all domestic market segments and have a surplus for export. The Board wishes to express its gratitude to National Social Security Authority (NSSA) who provided the financial support for the plant upgrade project. NSSA is also assisting with project management expertise on this project. Borrowing Powers The excess borrowings of USD31 Million were ratified at the Annual General Meeting held on 29 August 2013. Directorate Mr R. Njanike was appointed Alternate Director to Mr T.N. Chiganze on 29 August 2013. I extend a warm welcome to Mr. Njanike and wish him a fruitful tenure on the Board.

(5 237 573 ) (4 831 468 ) (1 134 758 ) (1 048 425 ) (86 333 ) (32 411 ) (61 401 ) 28 990

Supplementary Information
for the 6 months ended 30 September 2013

30-Sep-12

(6 372 331 ) (4 863 879 ) - (3 315 ) (5 237 573 ) (4 828 153 ) (5 237 573 ) (4 831 468 ) - (3 315 ) (6 372 331 ) (4 860 563 ) (6 372 331 ) (4 863 879 ) (1.01 ) (0.93 ) (0.79 ) (0.92 ) (0.93 ) (0.88 ) (0.79 ) (0.86 ) 518 469 120 518 469 120

Total refined sugar sales (tonnes) Packaging production (tonnes) Logistics (tonnage moved) Capital expenditure authourised but not contracted for ($)

5 416 9 749 553 594 29 156 50 972 3 250 000 3 250 000

Notes To The Abridged Financial Statements

1. Basis of preparation  The consolidated financial statements of starafricacorporation limited have been prepared in accordance with International Financial Reporting Standards(IFRS), the requirements of the Companies Act (Chapter 24.03) and the requirements of the Zimbabwe Stock Exchange. The Groups presentation currency is the United States Dollar, which is the functional currency of the Groups operations in Zimbabwe. A  ccounting policies applied ,in all material respects ,are consistent with those applied by the Group for the year ended 31 March 2013. 2. Segment Information

Abridged Consolidated Statement of Financial Position

As at 30 September 2013
U

30-Sep-13

Food Industrial Properties Eliminations Consolidated US$ US$ US$ US$ US$

UNAUDITED AUDITED (Loss)/profit from Sep-13 Mar-13 operations before US$ US$

Revenue

7 616 442 (1 784 052) (369 755) - (2 814 783) 629 712 (4 338 876) 62 892

- 278 319 - 187 827 - (46 122) - - - - - - - 141 705 - -

(953 094)

6 941 667

ASSETS Non current assets Property, plant and equipment Other non-current assets Current assets Assets classified as held for sale Total assets EQUITY AND LIABILITIES Equity Attributable to equity holders of the parent Non controlling interest Non-current liabilities Loans and borrowings Deffered tax Current liabilities Loans and borrowings Other Liabilities associated with assets classified as held for sale Total equity and liabilities

21 542 110 24 020 844 18 764 929 21 243 663 2 777 181 2 777 181 3 582 581 7 226 693

depreciation Depreciation Impairment loss Finance costs Associate income

100 830 (1 495 395) - (415 877) - - - (2 814 783) - 629 712 100 830 (4 096 343) - 62 892

11 855 489 10 757 559 36 980 180 42 005 096

(Loss)/profit before taxation Capital expenditure 30-Sep-12

(16 740 360 ) (10 368 029 ) (18 274 691 ) (11 902 360 ) 1 534 331 1 534 331 26 019 443 12 187 255 23 832 188 10 000 000 2 187 255 2 187 255 23 260 417 37 863 757 5 256 657 17 290 319 18 003 760 20 573 438 4 440 679 2 322 113

Revenue (Loss)/profit from operations before depreciation Depreciation Impairment loss Finance costs Associate income (Loss)/profit before taxation Capital expenditure

14 305 411 4 875 510 131 122 (1 916 849) 17 395 194 (2 422 682) 189 396 83 256 - (2 150 030) - (827 182) - (305 183) - (2 108 334) - 598 207 - (4 879 799) - 48 853

(431 666) (334 516) (61 000) - (305 183) - (1 911 499) (196 835) - 598 207 - - (4 254 917) (647 138) 22 256 48 853 - -

36 980 180 42 005 096

Consolidated Statement of Changes in Equity

for the 6 months ended 30 September 2013

Equity holders Non-controlling Total of the parent interest US$ US$ US$

Balance at 31 March 2013 Total comprehensive income Loss for the period Other comprehensive income Balance at 30 September 2013
For the 6 months ended 30 September 2012

(11 902 360 ) (6 372 331 ) (5 237 573 ) (1 134 758 ) (18 274 691 )

1 534 331 (10 368 029 ) - (6 372 331 ) - (5 237 573 ) - (1 134 758 ) 1 534 331 (16 740 360 )

Equity holders Non-controlling Total of the parent interest US$ US$ US$

Outlook The company is confident that the plant upgrade will be completed in the first month of the next financial year. The Board is also expecting that Bluestar Logistics and  The Board of Directors also resolved to dispose of the investment in Tongaat Tongaat Hulett Botswana will be disposed of within the six month moratorium which Hulett Botswana (the associate) and Bluestar Logistics to raise funds to partly expires on 7 February 2014. The Groups performance is not expected to improve settle creditors and lenders in terms of the Scheme of Arrangement between until the plant upgrade at GSSH is completed and the plant is operational. The starafricacorporation limited and its lenders and creditors as sanctioned by the company is hopeful that measures being worked on by Government to stabilize the High court on 7 August 2013. domestic sugar market will see GSSH operating profitably after the plant upgrade. 4. Going concern   The Group has continued to report significant losses in the last four years with a Dividend net loss of $16.5 million for the year ended 31 March 2013 (2012:$8.4 million). In light of the overall performance of the Group, the Board has not declared a For the six months period ended 30 September 2013, the Group reported a loss dividend for the half year ended 30 September 2013. of $5.2 million against a loss of $4.8 million incurred during the same period last year. As at 30 September 2013, the Group total liabilities exceeded total assets by $16.7million (2012:$3.8million) and current liabilities exceed current assets by Conclusion $8.2million (2012:$19 million). The borrowing powers of the Group as stipulated I take this opportunity to express my appreciation to our stakeholders, Management, in the Memorandum and Articles of Association had been exceeded by $31 million staff and my fellow Board members for their continued dedication and support under as at 30 September 2013. extremely challenging conditions. T  o address the working capital position and return the Group to profitability, management have come up with four key deliverables in their plan: a. Scheme of Arrangement by starafricacorporation limited to its lenders and creditors, this scheme was sanctioned by the High Court on 7 August 2013. The key features of the scheme are included in the Chairmans Statement. b. Undertaking of a plant upgrade of the Gold Star Sugar Refinary, c. Restoring supplies of the raw sugar, and d. Unbundling and disposal of some of the firms non-core assets.

3. Discontinued operations  Arthur Garden Engineering is still classified as a discontinued operation. Management could not find a buyer for the business, due to liquidity challenges in the market. However, management is confident that a buyer will be found in the near future, as presently a number of potential buyers have expressed interest in the business. Highfield Bag, Polyfilm Plastics, Grant Chemicals and Retail operations have also been classified as discountinued operations in the current period.

Balance at 31 March 2012 Total comprehensive income Loss for the period Other comprehensive income Balance at 30 September 2012

7 053 798 (4 860 564 ) (4 828 153 ) (32 411 ) 2 193 234

1 538 393 8 592 191 (3 315 ) (4 863 879 ) (3 315 ) (4 831 468 ) - (32 411 ) 1 535 078 3 728 312

J.S Mutizwa Chairman 19 December 2013

Directors: J. S. Mutizwa (Chairman), *M. S. Mushiri (Group Chief Executive), K. Chibota, T.N. Chiganze, R.Njanike (Alternate), H. Chikova, J. Kanyekanye, R. J. Mbire *R. V. Mutyiri - (*Executive)