OPP.L Regulatory News (OPP)

August 4, 2011

Origo Partners PLC

Interim Management Statement for the three month period from 

April 1, 2011 to June 30, 2011

This Interim Management Statement by Origo Partners Plc ("Origo" or "the Company") and its subsidiaries ("the Group") relates to the three month period from April 1, 2011 to June 30, 2011 ("the Period").

Highlights from the Period:

·; Unaudited net asset value of US$193.4 million compared to US$199.1 million for the period ending March 31, 2011 due to operating expenses and non-cash based charges

·; Unaudited net asset value per share of US$0.65 at the end of the Period compared to US$0.67 per share for the period ending March 31, 2011

·; Total investments of US$20.3 million

·; Net cash position of US$43.5 million

Chris Rynning, Origo's CEO, said:

"In Q2, the Company completed material investments in Moly World Ltd. and Unipower Battery Ltd, expanding our mining portfolio with an advanced molybdenum/tungsten exploration asset in Mongolia and increasing our exposure to the Chinese Electric Vehicle sector.

After the Period, we successfully completed a reverse acquisition of our interest in Kincora Group Ltd, delivering a 3.8x uplift on our original investment based on the placing price. At the end of the Period, Origo's interest was valued at US$10.8 million, on the basis of the placing price, less a 16 per cent weighted average liquidity discount to account for the 3 year lock-up. Today, the enlarged group, now trading on the Toronto Stock Exchange under the name Kincora Copper, has traded up 86 per cent since completion of the transaction, resulting in an uplift of nearly 7x our original acquisition cost.

We are very pleased to have been able to convert our interest in this privately held exploration company into shares in a publicly traded vehicle at a significant premium to cost in a relative short time period, reflecting our strategy to continue to crystallise value in our portfolio as appropriate."

1. Resources and Commitments

At June 30, 2011, Origo had cash and cash equivalents of US$47.4 million. Payables to debtors and other liabilities equalled US$3.9 million, leaving the Group with a net cash position of US$43.5 million.

2. Unaudited Net Asset Value

No revaluation of the Portfolio took place during the Period as per Origo's policy to reassess the value of the Company's assets on a bi-annual basis. However, adjusting to reflect the purchase and sale of investments, currency movements and market values in respect of quoted investments, the Company estimates unaudited net asset value at the end of the Period was US$193.4 million (US$0.65/share). The equivalent NAV per share translated into British Sterling at the prevailing exchange rate at the end of the Period was 40.4p compared to 41.6p for the period ending March 31, 2011. The decrease in NAV was due to ongoing operating expenses (US$1.3 million) and non-cash based charges relating to the reversal of interest accrued on loans extended to investee companies (US$3.1 million), interest accrued (US$0.99 million) to the zero-dividend preferred shares, and share based payments (US$0.26 million).

3. Portfolio composition

In line with the Group's strategy, investments are made predominately in privately held companies across various sectors of China's economy, and in companies and assets with exposure to the Chinese market, with the objective of providing shareholders with above market returns, primarily through capital appreciation. Currently, the Group focuses on two sectors: natural resources (comprising metals, mining and agriculture) and clean tech.

As at June 30 2011, the Portfolio was carried at the aggregate value (excluding revaluations of unquoted portfolios) of US$198.6 million compared to US$162.0 million for the period ending March 31, 2011. The top ten investments represented 90 per cent of the fair value of the Portfolio, with the top five accounting for 67 per cent.

Table 1: Top 10 Investments (US$ million)

* Legal & beneficial interests, excluding impact of outstanding options/warrants and any outstanding convertible instruments

** Fund managed by the Group

Reflecting the Group's strategy of investing in privately held companies, 96 per cent of the Portfolio (in terms of fair value) at the end of the Period was invested in unquoted portfolio companies, with the exception of the Company's stake in AIM-listed HaloSource Inc. (LSE: HAL) and a minor position in Weka Entertainment, listed on NYSE Alternext (ALWEK.NX).

The weighted average holding period is 2 years, with 79 per cent of the Portfolio having been held for less than 3 years; 15 per cent having been held for 3-4 years, and 6 per cent for 4 years or longer.

In terms of sectors, the composition of the Portfolio at the end of Period comprised:

Metals & Mining (56 per cent)

Agriculture (22 per cent)

Clean tech (15 per cent)

Consumer, Technology and Media (7 per cent).

4. Investments

Origo invested a total of US$20.3 million during the period, comprising US$10.1 million of investments in new portfolio companies, and US$10.2 million of deployments to existing investee companies.

In April, the Company extended US$4 million of a total US$9 million commitment to Unipower Battery Ltd as part of a US$22 million convertible note offering.

In May, the Company made further subscriptions of US$6 million in China Commodities Absolute Return Fund, a commodities hedge fund managed by the Group.

In June, the Company entered into an agreement to acquire a 20 per cent equity stake for US$10 million in Moly World Ltd, which owns an advanced stage molybdenum/tungsten exploration project in Mongolia.

5. Realisation

The Company sold back its full 10% equity interest in Huremtiin Hyar LLC to the founding shareholder for US$ 300,000, equal to the cost of the original investment.

6. Portfolio updates

Kincora Copper Limited

In July, Origo announced that Toronto-listed Brazilian Diamonds Limited had completed its acquisition of Origo's interest in Kincora Group Limited ("Kincora Group") and changed its name to Kincora Copper Limited ("Kincora Copper").

Following the transaction, Origo holds approximately 34.8 per cent of the outstanding share capital of Kincora Copper, now trading on the TSX Venture Exchange under the ticker KCC:CN.

As a result of the transaction, Kincora Copper will own a 75 per cent interest in the Mongolian Bronze Fox copper-gold prospect, located close to the world class OyuTolgoi copper deposit and near to the Chinese border. Kincora Copper will focus on the development of Bronze Fox and acquiring other copper - gold exploration and development projects in Mongolia.

R.M. Williams Agricultural Holdings Limited

In July, R.M. Williams Agricultural Holdings Limited announced the acquisition of Henbury Station, a 516,800 hectares pastoral property in the Northern Territory. Acquired with the support of the Australian Government for a total consideration of AUD 13 million, Henbury Station will be managed as an innovative conservation project, that also facilitates an additional revenue stream through the accreditation and sale of bio-diverse carbon credits as a consequence of recently passed legislation.

ENDS