Zambeef Prod. Regulatory News (ZAM)

For Immediate Release 10 June 2013

Zambeef Products plc

("Zambeef" or the "Group")

Unaudited Results for the Six Months Ended 31 March 2013

Zambeef (AIM: ZAM), the fully integrated agri-business with operations in Zambia, Nigeria and Ghana, is pleased to announce its results for the six month period ended 31 March 2013.

Financial Highlights

**excludes the USD9.7m provision for the tax assessment, of which USD6.7m was charged to cost of sales issued on Zamanita Ltd. ("Zamanita") See below for a full explanation

+ adjusted to exclude unrealised foreign exchange differences

Highlights

·; Significant growth in revenue and gross profit, up 20 per cent. and 24 per cent. respectively; and EBITDA growth up eight per cent.

·; Gross margins increased from 35 per cent. for March 2012 (excluding the Zamanita tax provision) to 36.3 per cent. for March 2013

·; Adjusted pre-tax profit declined 7 per cent. due to increases in overhead costs, increased finance costs and higher depreciation costs due to increased capital expenditure and realised exchange losses due to the depreciation of the Zambian Kwacha against the USD

·; Strongest divisional growth seen in cropping (up 76 per cent.), edible oils (up 70 per cent.), stock feed (up 36 per cent.), and West Africa (up 30 per cent.)

·; Oil seed crushing recommenced at Zamanita

·; Increased crop yield performance at farming operations

·; Disposal of 49 per cent. of Zam Chick Limited ("Zam Chick") to Rainbow Farms Investments (Pty) Limited ("Rainbow") for USD14.25 million - effective date of completion of the transaction was 31 March 2013

·; Recently announced hatchery partnership with Rainbow.

Commenting on the results, Chairman Dr. Jacob Mwanza, said:

"We have been very encouraged by the good growth in turnover, gross margins, gross profit and EBITDA. Adjusted pre-tax profit was lower than last year's strong comparative period, largely due to increased costs, which is being actively addressed by management. However, the successful integration at Mpongwe Farm and subsequent excellent crop production, the doubling of capacity at Zamanita, the increase in capacity of our broiler and layer operations and capacity improvements at Master Pork, all leave Zambeef in a strong position to take advantage of growing demand for food products in Zambia. As such, as we return the chicken and egg, pork, and dairy divisions to expected levels of profitability, we anticipate a stronger performance in the second half of FY 2013 and the Board expects the Company to start paying dividends from 2014 onwards."

For further information, please contact:

Zambeef Products plc

Francis Grogan, Chief Executive Officer  Tel: +260 (0) 9 7799 9001

Carl Irwin, Director of Strategy and Development Tel: +260 (0) 9 7777 1002

Strand Hanson Limited Tel: +44 (0) 20 7409 3494

Angela Hallett

James Spinney

Buchanan Communications

Mark Edwards Tel: +44 (0) 20 7466 5000

Sophie McNulty

Louise Hadcocks

Notes to Editors

The Zambeef Group is one of the largest integrated agri-businesses in Zambia, involved in the primary production, processing, distribution and retailing of beef, chickens, pork, milk, eggs, dairy products, fish, flour, bread, edible oils and stock feed, throughout Zambia and the surrounding region, as well as Nigeria and Ghana. The Group is also one of the largest cereal row cropping operations in Zambia, with approximately 8,350 Ha of irrigated land and approximately 8,650 Ha of rain-fed/dry land, available for planting each year.

The Group employed an average of 5,579 employees in the period.

Further information can be found on www.zambeefplc.com

This publication is in line with standard practice for London Stock Exchange.

CHAIRMAN'S REPORT

Economic Review

I am pleased to report that following the ongoing improvement in operational performance in 2012 most areas of the business have continued to perform strongly during the six month period ended 31 March 2013.

The wider Zambian economy remains buoyant and the positive environment has led to substantial inward investment into the country. Macroeconomic factors that have an important bearing on the business and, for the most part are supporting our growth: increasing employment opportunities; higher disposable income amongst our customers (leading to greater demand for our products); continuing single-digit inflation and reducing lending rates. The period also saw the Kwacha undergo a rebasing, with the new Kwacha (ZMW) being worth 1,000 units of the old currency (ZMK).

Performance Review

Overview

Revenue, in ZMW, increased by 24 per cent., to ZMW809 million. In USD terms, the increase was 20 per cent. to USD153 million. Gross margins have improved from 29.8 per cent. in 2012, to 36.3 per cent. in 2013. However, adjusted pre-tax profit declined by 4 per cent. (ZMW) and 7 per cent. (USD) due to higher than expected increase in overhead costs, largely attributable to increases in the statutory minimum wage put into effect in July 2012, and increases in the cost of power and fuel, increased finance costs (gearing up by 15 per cent.), higher depreciation costs (up by 29 per cent.) due to increased capital expenditure and realised exchange losses due to the depreciation of the Zambian Kwacha against the USD. This has increased the cost to income ratio from 24.6 per cent. to 25 per cent. Operating profit has increased by 289 per cent. in ZMW, and 276 per cent. in USD terms. These metrics exclude the effect on performance of the profit of ZMW69 million or USD13.1 million, arising out of the sale of the 49 per cent. holding in Zam Chick to Rainbow.

Divisional Performance

Most divisions have performed strongly. In particular, Mpongwe Farm has had an excellent summer cropping season, and is the leading contributor to both revenue and profitability in the farming division. The stock feed division continues to do well and has exhibited strong growth during the period. Following on from the major upgrade and expansion of the Zamanita plant, edible oil seed crushing re-commenced in early October 2012, which has resulted in substantial growth in revenue and gross margin (the plant having been shut down for a period of nine months during FY 2012 to allow the work to take place). Production levels are also increasing in the dairy, leading to increased margins in the milk division versus the second half of FY 2012. The West African operations have shown improvement in both revenue and margins following the increase in Shoprite stores during 2012.

However, the chicken, pork and bakery and flour divisions have had a challenging six months, although we expect to return these divisions to improved performance in the second half of the financial year.

Zam Chick

One of the most important events during the period has been the sale of 49 per cent. of Zam Chick, our broiler operations, for USD14.25 million to Rainbow, a subsidiary of Rainbow Chickens Limited, South Africa, one of the largest chicken producers in Sub-Saharan Africa. This transaction will make available to Zambeef Rainbow's vast experience and track record in the poultry industry and a key focus will be on value added and processed chicken products, where Rainbow has demonstrated significant capabilities in the South African market.

Zamanita Tax Dispute

In relation to the disputed tax demand made by the Zambia Revenue Authority ("ZRA") with respect to Zamanita, Zambeef made its final written submission to the Revenue Appeals Tribunal on 11 February 2013, which was within the requisite ten-week period following the conclusion of the hearing. Thereafter, the ZRA submitted its position on 25 March 2013, to which Zambeef has submitted its response. A decision is expected to be made by the Revenue Appeals Tribunal in the second half of the current financial year.

As announced previously, a full provision for this tax demand amounting to ZMW49 million (approximately USD9.7 million) was made in the financial statements for the year ended 30 September 2012.

Board of Directors & Management Committee

As announced on 28 March 2013, Zambeef's Finance Director, Sushmit N. Maitra, will leave the Group with effect from 15 June 2013 following completion of a handover to his successor, Craig Harris. Currently Chief Administration Officer (CAO) of Zambeef, Mr. Harris previously held the position of the Group's Chief Financial Officer (CFO) from 1996 to 2004. His prior knowledge of Zambeef's operations and his recent experience as CAO leave him very well placed to pick up the reins as CFO and assist in driving the Company's continuing growth and expansion.

As we continually seek to improve group-wide team working and to make communication more effective, the Company has taken the decision to upgrade and expand the Management Committee set up last year into a Senior Management Committee, consisting currently of 18 senior managers and business unit heads.

Outlook and Dividend

Following the successful integration at Mpongwe Farm, the doubling of capacity at Zamanita, the increase in capacity of our broiler and layer operations, capacity improvements at Master Pork and the planned increase in capacity of the dairy plant (expected to be completed in the second half of FY 2013), Zambeef is now in a strong position to take advantage of the growing demand for food products in Zambia. We will continue to invest in our infrastructure, in order to further improve efficiencies, and increase scope and scale, where appropriate.

Major areas of capex investment over the next six to 12 months will seek to increase production and efficiency levels in the following areas:

i. Expansion of the dairy housing to increase milk yields;

ii. Expansion of the stock feed capacity with the installation of a third pelleting line;

iii. Continued expansion of our retail operations with an increased focus on wholesale centres;

iv. Continued rehabilitation and refurbishment of our existing retail outlets and processing facilities to ensure we continue to maintain efficiencies;

v. Continued investment into the Nigerian operations; and

vi. Continued investment into the palm plantation.

The return to cash generation is paramount to our business model. It will allow us to invest in the business to fund organic growth, reduce our borrowings and pay regular dividends to shareholders. We believe we are on track to meet this objective, and the Board expects the Company to start paying dividends from 2014 onwards.

As announced on 30 May 2013, Zambeef has entered into an agreement with Rainbow to establish a broiler parent stock rearing, laying and hatching operation for the supply of day old chicks, called Zamhatch Limited ("Zamhatch").

The establishment of Zamhatch is in line with the Group's strategically integrated business model. The Board considers that managing the quality and quantity of supply of day old chicks to its broiler division will enable the Group to maximise operational performance as well as create opportunities to generate revenue from the sale of day-old chicks to third parties.

Following completion of this transaction, the Board expects Zamhatch to become operational over the next two to three years.

Zambia continues to be an attractive destination for agricultural and agro-processing investment. Aided by sound macro-economic policies and a stable political environment, its economy is expected to show continuing strong growth. Zambeef is a well-diversified Group. It has an outstanding management team with a proven successful track record. Accordingly, the Board has great confidence that the Group will continue to enhance its position as one of the leading food providers in the region.

Dr Jacob Mwanza

Chairman

10 June 2013

CHIEF EXECUTIVE OFFICER'S REPORT

I am delighted to present the results of the Zambeef Group for the six month period ended 31 March 2013. During the previous financial year, I reported that the biggest challenges faced by Zambeef were our supply constraints. I am pleased to report that, following the extensive capital investments made over the last 18 months, the majority of supply issues have been addressed.

Most of our divisions have performed well in the period under review. However, we have faced performance issues in our broilers, pork and mill and bakery divisions.

One of the key highlights of this period has been the completion of the sale of 49 per cent. of Zam Chick, details of which were announced to the market on 4 February 2013. Zam Chick currently manages and operates the Group's chicken broiler business, including the broiler houses, chicken abattoir and processing plant. We will leverage Rainbow's excellent track record of technical expertise in the chicken broiler business to grow this area of the Group's operations, with a key focus on the processing of value added and processed chicken products, where Rainbow has demonstrated significant capabilities in the South African market.

Particular areas of expertise to be introduced by Rainbow will be:

i. Technical specifications and standard operating procedures for broiler farms and processing facilities;

ii. Product specifications;

iii. Improved feed formulation for broiler chickens;

iv. Design and specification of facilities;

v. Veterinary and disease control management; and

vi. Generating and maintaining quick service restaurant relationships.

In addition to the above, the transaction and partnership provides Zambeef with further opportunities, such as the increase in value added range and the Zamhatch venture.

Comparing the six months ended 31 March 2013 to the six months ended 31 March 2012, most of our key performance indicators have improved. Revenue has grown by 24 per cent. in ZMW terms and 20 per cent. in USD terms, and gross margins improved from 35.0 per cent. (excluding the ZRA provision) to 36.3 per cent.. The cost income ratio has increased from 22.3 per cent. (excluding the ZRA provision) to 25 per cent. largely as a result of increase in the statutory minimum wages in July 2012. However, this represents a marginal improvement in the FY 2012 year end position of 26 per cent. Progress towards achieving the Group's total debt to equity (gearing) target ratio of 50 per cent. continues, reducing from 87 per cent. at FY 2012 year end to 82 per cent. as at 31 March 2013. The Group has maintained a healthy interest cover with EBITDA of 5 times without taking into account any exceptional costs or gains. The current ratio has improved from 1.1 as at March 2012 and 1.4 at FY 2012 year end to 1.5 at March 2013.

Some of the other challenges faced by the Group have been the increase in finance costs as a result of increased borrowings to support the substantial increase in inventories seen in the previous financial year, capital expenditure commitments; and depreciation in the Zambian Kwacha versus major global currencies. As a result, adjusted pre-tax profits for the period to March 2013 have declined by 4 per cent. in ZMW terms and 7 per cent. in USD terms in comparison to March 2012 (pre-Zamanita tax provision).

In line with ensuring that we continue to improve our supply chain and increase efficiencies, we continue with our capital expenditure programme, which has been targeted at the following:

i. Completion of the dairy processing plant to increase capacity to 60,000 litres per day, up from 25,000 litres per day, expected to commence operations in the second half of the financial year;

ii. Completion of the mixer at our stock feed operations to produce fish and dog feed mashes, completed in the second half of the period;

iii. Increasing the number of new retail outlets by three and refurbishment of five existing outlets;

iv. Increase in boreholes and upgrade of silo facilities at Mpongwe Farm;

v. Purchase of new farming assets such as spreaders, combine harvester and tractors;

vi. Continued investment in the palm plantation with increase of plantation size to 1,938 Ha; and

vii. Rehabilitation and refurbishment of older assets.

Taking each of our business areas in turn as follows:

Edible oils

* excludes the tax provision

Zamanita recommenced crushing after the expansion and renovation of the solvent extraction plant in early October 2012 and, after a steady build-up in production capacity during the first quarter of the current financial year, is now running at over 85 per cent. capacity. As expected, revenue is up significantly period on period as a result of the extra capacity and increased crushing, while margins have also improved.

Soya meal continues to be in high demand across the region.

World edible oil prices are currently at a four year low, leading to a reduction in price. This has led to a large increase in volumes of imported edible oil into Zambia. However, as reported in the Zambian press, it is estimated that a large proportion of this oil is being imported without payment of necessary duties and levies, leading to an unfair advantage in pricing. Zamanita's strengths continue to be: the higher margins from crushing, the Zambeef retail network, a strong brand name and good service levels; all of which allow us to continue to be one of the leading suppliers of edible oil in the market.

The Group has once again sourced 40,000 MT of soya beans from the local market, and 40,000 MT produced by the Group's cropping division. This represents a sufficient volume of soya beans for twelve months crushing purposes.

Beef

Demand for beef is still very strong, with revenue and gross profitability ahead of last year.

Adequate supplies of both choice and traditional beef have been available throughout the majority of the period. We have therefore been able to keep pace with demand. We continue to improve the size and health of our breeding herd at Mpongwe Farm. Feedlotting at Huntley, Sinazongwe, Mongu and Namwala is yielding good results and aiding the supply of choice beef for slaughter. Work on improving animal husbandry by small-scale producers in cattle dense provinces, subsidised by Zambeef and its strategic partners, has started and will increase the quality and quantity of cattle for the future.

Stock feed (Novatek)

Novatek continues to perform at full capacity and is barely able to meet demand from third party customers. This has aided Novatek in becoming one of the market leaders in its sector and being recognised as the producer of one of the best quality animal feeds in Zambia.

Export of feed to Zimbabwe is also on the increase.

In our 2012 annual report, it was indicated that we were planning to install a new mash feed mixer. This has been assembled and is relieving pressure on the two existing pelleting lines, and is expected to add 3,000 MT of mashes per month, having commenced production in April 2013. Additionally an upgrade and extra capacity has been added to the full fat extrusion plant. Fish and dog feed is being produced, adding sales volume, since early May 2013. A third pelleting line is at an advanced planning stage but will only come into production in 2014. This capacity will be fully required as Zambeef's internal demand will increase due to the expected expansion of the broiler segment following the strategic partnership with Rainbow.

A project to improve traditional beef supply and quality is underway, with Zambeef partnering with a veterinary supply company in remote but cattle dense areas, which will supply veterinary medicines but more importantly educate the small scale cattle farmers. Zambeef will supply the basic ruminant feed components while guaranteeing the purchase of these improved cattle. There is a potential opportunity to supply finished feeds (all species) in these areas, as none is currently available. Zambeef already has the distribution network and facilities in place to meet this demand and increasing production capacity at Novatek will allow us to capitalise on such opportunities.

Cropping

Zambeef's summer cropping programme for FY 2013 was conducted on all four estates: Chiawa Estate in the south of Zambia, on the confluence of the Zambezi and Kafue rivers totalling 2,160 Ha of irrigated land; Sinazongwe Estate on the banks of Lake Kariba comprising 1,779 Ha of irrigated land; Huntley Estate in Chisamba, north of Lusaka with 766 Ha of irrigated land and 737 Ha of rainfed land available for cropping; and Mpongwe Estate in Mpongwe district of the northern Copperbelt Province having a total of 3,344 Ha of irrigated land and 6,977 Ha of rainfed land.

A total of 15,753 Ha of summer cropping was planted this season. This was split as follows:

i) 11,907 Ha (75.6 per cent.) soya beans to supply Zamanita with over 37,500 Mt of soya beans.

ii) 2,415 Ha (15.3 per cent.) commercial maize to provide Novatek with 20,500 Mt of maize as a strategic reserve.

iii) 228 Ha (1.4 per cent.) maize silage for the dairy operation.

iv) 817 Ha (5.2 per cent.) pasture and grass for the cattle livestock.

v) 63 Ha (0.4 per cent.) sunflower to supply Zamanita for trials on producing sunflower oil.

vi) 323 Ha (2.1 per cent.) sunhemp planted in Chiawa for soil conditioning.

The farming division has had another excellent summer. We finished harvesting the soya crop in May 2013 and yields are ahead of budget. Whilst Mpongwe continues to be the leading performer with respect to yields per hectare, it is also pleasing to report that Chiawa Farm's yields have seen good growth from the previous financial year showing a positive trend and outlook.

Planting has commenced for the winter season for wheat, barley and winter maize and it is expected to yield positive results.

Chicken & Egg

As with beef supply, Zambeef addressed the supply constraints it has faced over the last 18 months. However, as the entire country has been deficient in supply, there has been a rush to increase broiler production, both from the commercial sector and informal sector. As such, a national capacity increase took place during the last quarter of 2012 leading to an over-supply in the

The situation has now stabilised, with most producers reducing day old chick placements. We anticipate demand continuing to grow in the future and thus, we expect the market capacity to be met by consumer demand.

We have also implemented two new layer houses, which increases our capacity by 25 per cent. One of the inhibiting factors in this area has been the increased cost of feed which has led to reduced margins. It is expected that margins, along with revenue, will increase during the second half of the year.

Pork

Similar to beef and chicken, Zambeef's main drive over the last eighteen months has been to increase throughput and capacity in its pork division. The slaughter numbers of live pigs have improved to over 1,000 per week from less than 900 per week in the previous financial year and should demand warrant it and grower consistency continue, we believe we can achieve capacity in excess of 1,300 pigs per week in the foreseeable future.

Whilst revenue was up, profitability was down due to a significant reduction in gross margins. A large portion of production at Master Pork requires imported raw materials. During 2012, there was a three-month moratorium on importation of food products into Zambia leading to a situation where the Group had procured stock, but was not able to import it, whilst having to meet costs. These costs were factored into the cost of our raw materials, leading to the reduction in margins. The situation has now resolved and is not expected to reoccur. Nevertheless the Group maintains continuous dialogue with the Zambian Government on this and other subjects.

The installation of the increased capacity at Master Pork has been completed and we look forward to further growth and improved margins in 2014.

West Africa

The West African operations continue to be dependent on the roll out of Shoprite stores. Having seen two new stores open during 2012 in Ilorin and Abuja, there has been a resulting increase in revenue across the operations.

We have also strengthened the management team during this financial period with the Head of our International Retail operations assuming the role of Managing Director for West Africa. Aided by his input, the margins show improvement since the 2012 year end.

Shoprite's aim is to continue with opening at least three new stores every year, with four stores expected to open in 2013: Abuja, Ibadan and Kano, Nigeira; and one additional store in Accra, Ghana.

As a result continued strong growth is expected in Zambeef's West African operations.

Bakery & Flour

This division has had a reasonable first half after taking into account lower wheat prices and the removal of Value Added Tax (VAT). The winter crop of 2012 saw an excellent harvest of wheat in Zambia, leading to a reduction in pricing of the primary commodity, which had led to increased margins on processed products. However, with the budget of fiscal year 2013 announcing the removal of VAT from wheat and wheat products effective January 2013, there had been a slow down in the uptake and distribution of wheat and wheat products during October to December 2013, which had led to reduced revenue.

The higher percentage of revenue and profitability continue to be derived from flour. The Zambeef retail framework allows us to be a national distributor of both flour and bread.

Demand for flour is expected to be strong in the second half of the financial year and Zambeef welcomes the removal of VAT on wheat and wheat products.

Fish, Zamchick Inn & Leather

Demand for fish remains stable despite increasing competition with the key to success being a good supply base, an efficient distribution network and quality product. This continues to be an attractive substitute for meat protein and is in high demand.

Zamchick Inn remains a small part of the business, as the Group's decision has been to maintain the number of stores, while improving quality and efficiency. There is enormous competition in this sector, and as such, the Group continues to do well by improving margins with reasonable revenue growth.

The leather division had an excellent year last year and has started this one in a similar manner. Processing up to 8,000 hides per month, Zamleather is the Group's main buyer of hides and provides an environmentally friendly approach to Zambeef's beef abattoir by-products. The shoe division is unable to meet demand and production continues to increase.

Milk and Dairy

Demand for fresh milk and value added dairy products is on the increase and whilst we have made significant inroads with both improving yields and herd size at Kalundu Dairy, as well as increased sourcing from third party suppliers, we are still short of meeting demand across our retail channels, having experienced supply constraints in this division in the second half of FY 2012 through disease issues leading to poor yields and reduced milking herd size. This has led to a reduction in revenue in comparison to the first half of FY 2012. However, we have made good progress with improving our yields, herd health conditions, and number of milking cows in comparison to the end of FY 2012. With the lucerne being grown at Chiawa Farm, we aim to improve the quality of feed to our dairy for the foreseeable future.

The equipment for the new processing plant has arrived at Huntley and is expected to be set up and in production in the second half of the year. The new plant will allow Zambeef to more aggressively target supply growth and increase the amount of value added products produced, which is where the highest margins are earned.

The benefits of these measures are expected to return this division to an improved performance in FY 2014.

Conclusion and outlook

Whilst the Group has continued to record healthy growth in revenue and gross margins, we have had challenges in managing costs and a depreciating Zambian Kwacha, However, the commencement of oil seed crushing at Zamanita the continued strong performance of the farming division, together with the increase in production facilities across the Group, ensures Zambeef is well positioned to benefit from opportunities of increasing demand for food in the region.

We continue to invest into our palm plantation project with regular monitoring by an independent consultant. The current plantation size is 1,938 Ha and is expected to produce stepped yields of fresh fruit bunch (source of crude palm oil) from 2015 onwards. We expect to develop the total plantation size to c.2,950 Ha and establish a crushing mill by 2015.

Our partnership with Rainbow Chickens of South Africa is extremely exciting as it allows the Group to utilise the experience of one of the largest chicken producers in sub-Saharan Africa and invest in the future with proceeds from the part disposal of our investment in the broiler division.

In addition to the partnership on the broilers, the Group has also entered into an agreement with Rainbow to establish a broiler parent stock rearing, laying and hatching operation for the supply of day old chicks, to be trading under Zamhatch.

The establishment of Zamhatch is in line with the Group's strategically integrated business model, aimed at reducing risk and earnings volatility and capturing margin throughout the value chain, with a focus on supplying higher margin products. We consider that managing the quality and quantity of supply of day old chicks to our broiler division will enable the Group to maximise operational performance as well as create opportunities to generate revenue from the sale of day-old chicks to third parties.

This business will be developed at Mpongwe Farm and will also include an on-site feed mill to reduce transport costs that would otherwise be incurred in delivering feed from Zambeef's Lusaka-based operations. We expect the setup, establishment and commencement of the operations of Zamhatch to be over the next two to three years.

We will continue to make targeted investment in infrastructure and facilities to keep pace with consumer demand, driving revenue and maintaining margins together with strong cash generation, whilst aiming to reduce our cost to income ratio.

Francis Grogan

Chief Executive Officer

Date: 10 June 2013

REPORT OF THE DIRECTORS

In compliance with Division 8.3 of the Zambian Companies Act, the Directors submit their report on the activities of the Group for the period ended 31 March 2013.

1. Principal activities

Zambeef Products plc and its subsidiaries ("Group") is one of the largest agri-businesses in Zambia. The Group is principally involved in the production, processing, distribution and retailing of beef, chicken, pork, milk, dairy products, eggs, edible oils, stock feed, flour and bread. The Group also has large row cropping operations (principally maize, soya beans and wheat), with approximately 8,350 Ha of irrigated row crops and 8,650 Ha of rain-fed/dry-land crops available for planting each year. The Group is also in the process of rolling out its West Africa expansion in Nigeria and Ghana, as well as a palm project within Zambia.

2. The Company

The Company is incorporated and domiciled in Zambia.

Business address Postal address

Plot 4970, Manda Road Private Bag 17

Industrial Area Woodlands

Lusaka Lusaka

ZAMBIA ZAMBIA

3. Share capital

Details of the Company's authorised and issued share capital are as follows:

4. Results

The Group's results are as follows:

\* The loss for the period to 31 March 2012 and year to 30 September 2012 includes a provision of ZMW33.96 million (c. USD6.7 million) under cost of sales and ZMW15.19 million (c. USD3.0 million) under administrative expenses with respect to a tax liability assessment from ZRA issued to Zamanita Limited (for importation of palm oil in prior periods).

5. Dividends

A final dividend of 2.14 ngwee (0.45 cents) for the year ended 30 September 2011 was paid to shareholders on 29 February 2012. There was no dividend paid or proposed for the year ended 30 September 2012.

6. Management

The senior management team comprise the following:

Francis Grogan - Chief Executive Officer

Carl Irwin - Director of Strategy and Development

Yusuf Koya - Executive Director

Sushmit N. Maitra - Finance Director

Michael Ledwith - Chief Operating Officer

Craig Harris - Chief Administrative Officer

Mike Lovett - General Manager - Farms

Danny S. Museteka - Company Secretary

Ebrahim Israel - Managing Director - West Africa

Francis Mondomona - Special Assistant to the CEO

Felix Lupindula - Special Assistant to the CEO

Murray Moore - General Manager - National Retail

Alastair McLeod - General Manager - Zam Chick Limited

David Mynhardt - General Manager - Sinazongwe Farm

Anthony Wells - General Manager - Chiawa Farm

Richard Franklin - General Manager - Zamleather Limited

Dharmesh Patel - General Manager - Zamanita Limited

Walter Roodt - General Manager - Stock Feed (Novatek)

Justin Pigou - General Manager - Dairy

Rory Park - General Manager - Master Pork Limited

Webster Mapulanga - Factory Manager - Master Pork Limited

Andries Van Rensburg - Piggery Manager

Peter Wandira - Flour Mill Manager

Charles Milupi - Poultry Manager

Theo de Lange - Technical Manager

Bartholomew Mbao - Dairy Processing Manager

Justin Rust - Commercial Manager

Ivor Chilufya - Group Finance Controller

Victor Mundia - Group Finance Manager

Rehan Sayed - Finance Manager - Stock Feed and Zamleather Limited

Simon Nkhata - Finance Manager - Zambeef Retailing Limited

Royd Sitoloma - Finance Manager - Zamanita Limited

James Banda - Finance Manager - West Africa

Baron Chisola - Finance Manager - Stock Control

Eustace Bobo - Finance Manager - Fixed Assets

Mulendo Siame - Administration Manager - Huntley Farm

Anthony Seno - Head of IT

Juliet Bungoni - Head of Human Resources

Mathews Mbasela - Head of Payroll Processing

Ryan Stassen - Head of Procurement

Edward Tembo - Chief Security Manager

Pravin Abraham - Chief Internal Auditor

Jones Kayawe - Head of Environment, Health and Safety

Justo Kopulande - Head of Public Relations and Corporate Social Responsibility

Field Musongole - Maintenance Manager

Hilary Anderson - Retail Manager - Shoprite West Africa

Ernest Gondwe - Regional Manager - Shoprite & Excellent Meats

Francis Mulenga - Regional Manager - Shoprite

Noel Chola - Regional Manager - Shoprite

Rodgers Chinkuli - Regional Manager - Zambeef Outlets

Darren Young - Regional Manager - Zambeef Outlets

Perry Siame - Group Marketing Manager

Lufeyo Nkhoma - Head of Retail - Ghana

John Stephenson - Head of Retail - Nigeria

Clement Mulenga - Head of Processing - Nigeria

7. Directors and Secretary

The directors in office at the financial period and at the date of this report were as follows:

Jacob Mwanza (Dr) - Chairman

Lawrence S. Sikutwa - Non-executive Director

John Rabb - Non-executive Director

Irene M. Muyenga - Non-executive Director

Adam Fleming - Non-executive Director (Alternate Brian Dowden)

Francis Grogan - Chief Executive Officer

Carl Irwin - Director of Strategy and Development

Yusuf Koya - Executive Director

Sushmit N. Maitra - Finance Director

Danny Museteka - Company Secretary

8. Directors' interests

The directors held the following interests in the Company's ordinary shares at the balance sheet date:

9. Directors' fees and remuneration

In April 2011, the Remuneration Committee agreed the following gross annual packages (USD), with further revisions carried out in subsequent Committee meetings held on January 2012:

In addition to the above, all Executive Directors are also entitled a Gratuity of 10 per cent. of gross basic salary paid over the two year contract term, less statutory deductions for tax.

Each Non-executive Director has entered into a letter of appointment with the Company on 1 April 2011, for an initial term of three years, unless terminated by either party giving three months' notice.

Each Executive Director has entered into a fixed term service agreement on 1 April 2011, for an initial term of two years, unless terminated by either party giving six months' notice.

There were no loans made to Directors or any outstanding loans from Directors at the period end.

Members of the Board were not entitled to any form of defined pension benefits from the Company.

10. Significant Shareholdings

As at 31 March 2013, the Company has been advised of the following notifiable interests in its ordinary share capital:

11. Employees

The Group employed an average of 5,579 employees (30 September 2012 - 4,999, 31 March 2012 - 5,704) and total salaries and wages were ZMW93.2 million (USD17.7 million) for the period ended 31 March 2013 (30 September 2012 - ZMW158.6 million [USD31.2 million], 31 March 2012 - ZMW76.3 million [USD14.9 million]).

The average number of persons employed by the Group in each month of the 6 month period is as follows:

October 2012 - 5,369

November 2012 - 5,637

December 2012 - 5,649

January 2013 - 5,473

February 2013 - 5,711

March 2013 - 5,635

12. Safety, Health and Environmental issues

As part of some of the Group's term loans, the Group signed up to an Environmental and Social Action Plan ("ESAP"), which requires the Group to meet both local Zambian standards as well as international standards relating to the environment. The most recent independent consultant reports state that Zambeef continues to make positive progress in delivering the approved ESAP.

The Group provides healthcare services to its employees. The Group also supports various community activities in the areas that it operates from.

13. Legal matters

There are no significant legal or arbitration proceedings (including to the knowledge of the Directors, any such proceedings which are pending or threatened, by or against the Company or any subsidiary of the Group) which may have or have had during the 12 months immediately preceding the date of this document a significant effect on the financial position or profitability of the Company or any member of the Group, except the outstanding tax liability on Zamanita Limited of ZMW54.6 million (USD10.4 million) which the Group has referred to the Revenue Tribunals Authority.

14. Gifts and donations

The Group made donations of ZMW2 million (USD0.4 million) (30 September 2012 - ZMW1.8 million [USD0.4 million], 31 March 2012 - ZMW0.2 million [USD0.04 million]) to a number of activities.

15. Export sales

The Group made exports of ZMW83.2 million (USD15.8 million) during the period (30 September 2012 - ZMW21.3 million [USD4.2 million], 31 March 2012 - ZMW10.5 million [USD2.1 million]).

16. Property, plant and equipment

Assets totalling ZMW37.7 million (USD7.1 million) were purchased by the Group during the period (30 September 2012 - ZMW119.6 million [USD23.5 million], 31 March 2012 - ZMW76.9 million [USD15.1 million]) and recorded expenditure on the palm plantation development during the period of ZMW8.8 million (USD1.7 million) (30 September 2012 - ZMW13 million [USD2.6 million], 31 March 2012 - ZMW2.2 million [USD0.4 million]).

17. Interim report

The interim report set out below has been approved by the directors.

By order of the Board

Company Secretary

Date: 10 June 2013

Date: 10 June 2013

The Directors

Zambeef Products plc

Plot 4970, Manda Road

Industrial Area

Lusaka

Dear Sirs

INDEPENDENT REVIEW REPORT OF ZAMBEEF PRODUCTS PLC AND ITS SUBSIDIARIES

Introduction

We have been instructed by the directors of the Company to review the financial information set out below and we have read the other information contained in the interim report and considered whether it contains any apparent misstatements or material inconsistencies with the financial information.

Directors' responsibilities

The interim report, including the financial information contained therein, is the responsibility of, and has been approved by the directors. The Listing Rules of the Lusaka Stock Exchange and International Accounting Standard 34 require that the accounting policies and presentation applied to the interim figures should be consistent with those applied in preparing the preceding annual financial statements except where changes, and reasons for them, are disclosed.

Review of work performed

We conducted our review in accordance with guidance contained in the International Standards on Auditing. A review consists principally of making enquiry of Group management and applying analytical procedures to the financial information and underlying financial data and based thereon, assessing whether the accounting policies and presentation have been consistently applied unless otherwise disclosed. A review excludes audit procedures such as test of controls and verification of assets, liabilities and transactions. It is substantially less in scope than an audit performed in accordance with International Standards on Auditing and therefore provides a lower level of assurance than an audit. Accordingly, we do not express an audit opinion on the financial information. However, the comparatives for the audited financial statements for the year ended 30 September 2012 included an emphasis of matter with regard to the functional currency of Mpongwe Farm branch as indicated in note 2(c) to the financial statements.

Review conclusion

On basis of our review we are not aware of any material modifications that should be made to the consolidated financial information as presented for the six months period ended 31 March 2013.

Chartered Accountants

Wesley M Beene

Partner

Lusaka

Date 10 June 2013

ZAMBEEF PRODUCTS PLC AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS PERIOD ENDED 31 MARCH 2013

The accompanying notes form part of the financial statements.

ZAMBEEF PRODUCTS PLC AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS PERIOD ENDED 31 MARCH 2013

The accompanying notes form part of the financial statements.

ZAMBEEF PRODUCTS PLC AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENT OF MOVEMENTS IN EQUITY

FOR THE SIX MONTHS PERIOD ENDED 31 MARCH 2013

 (i) An independent valuation of the Zam Chick's property, plant and equipment was performed by Messrs. R.M. Fumbeshi & Co., a firm of registered valuation surveyors, to determine their market value. The effective date of the valuation was 31 December 2012. The surplus on valuation totalling ZMW25.3 million (USD4.7 million) was transferred to a revaluation reserve.

(ii) During the period, Zambeef Products plc disposed of 49 per cent. of its shareholding in Zam Chick to Rainbow for a sum of USD14.25 million. At 30 September 2012, the book value of Zam Chick's assets was ZMW14.3 million (USD2.8 million). The assets were revalued in Zam Chick during the period to ZMW39.6 million (USD7.5 million) resulting in a revaluation reserve of ZMW25.3 million (USD4.7 million). The profit on the sale of 49 per cent. recognised in the Statement of movements in equity during the period is ZMW69 million (USD13.1 million).

ZAMBEEF PRODUCTS PLC AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENT OF MOVEMENTS IN EQUITY

FOR THE SIX MONTHS PERIOD ENDED 31 MARCH 2013

 (i) An independent valuation of the Zam Chick's property, plant and equipment was performed by Messrs. R.M. Fumbeshi & Co., a firm of registered valuation surveyors, to determine their market value. The effective date of the valuation was 31 December 2012. The surplus on valuation totalling ZMW25.3 million (USD4.7 million) was transferred to a revaluation reserve.

(ii) During the period, Zambeef Products plc disposed of 49 per cent. of its shareholding in Zam Chick to Rainbow for a sum of USD14.25 million. At 30 September 2012, the book value of Zam Chick's assets was ZMW14.3 million (USD2.8 million). The assets were revalued in Zam Chick during the period to ZMW39.6 million (USD7.5 million) resulting in a revaluation reserve of ZMW25.3 million (USD4.7 million). The profit on the sale of 49 per cent. recognised in the Statement of movements in equity during the period is ZMW69 million (USD13.1 million).

ZAMBEEF PRODUCTS PLC AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENT OF FINANCIAL POSITION ‑ 31 MARCH 2013