UNAUDITED HALF UNAUDITED HALF YEAR ENDED YEAR ENDED 31.03.12 31.03.11 Cash flows from operating activities Operating profit/(loss) 217,331 (853,776)Net non-cash flow items (702,617) (31,787)Cash loss from operations (485,286) (885,563) Net financing costs (524,715) (324,259)Taxation paid - -Increase in working capital 1,172,954 (216,332)Cash generated/(utilised) in operating activities 162,953 (1,426,154) Cash flows from investing activities Cash utilised in investing activities (198,802) (340,803) Cash flows from financing activities Cash generated from financing activities 1,038,535 1,636,741Net cash outflow 1,002,686 (130,216)

Cash and cash equivalents at beginning of period 99,485 229,542Cash and cash equivalents at end of period 1,102,171 99,326

DIRECTORS: Dr R.M. Mupawose* (Chairman), Mr P. Spear (CEO), Mr I. Chagonda*, Mrs S.G. Chella *,Mr C.P. Conradie*, Mrs T.C. Mazingi*, Mr S.K. Mutepfa*, Mr R.M. Herron*, Mrs S. Payne*. * Non-Executive

Balance as at 25 September 2010 444,337 252,642 30,350 10,998,626 (644,742) 11,081,213Loss for the period - - - - (909,219) (909,219)

Balance as at 31 March 2011 444,337 252,642 30,350 10,998,626 (1,553,961) 10,171,994Transfer to share

premium reserve - 10,500 - - - 10,500

Share options exercised 750 - - - - 750

Transfer of reserve on

shares exercised - - (11,250) - - (11,250)

Loss for the period - - - - (1,093,508) (1,093,508)

Balance as at 25 September 2011 445,087 263,142 19,100 10,998,626 (2,647,469) 9,078,486Loss for the period - - - - (225,557) (225,557)

Balance as at 31 March 2012 445,087 263,142 19,100 10,998,626 (2,873,026) 8,852,929

NotesAccounting PoliciesThe principal accounting policies used in the previous period have been consistently applied in the preparation of the interim financial statements for the period ended 31 March 2012.

Introduction In our 2011 Annual Report we commented that in an effort to secure essential re-financing, discussions with a strategic partner were at an advanced stage. We are pleased to report that these discussions have been concluded and the Group managed to raise $8m worth of capital. Unfortunately this exercise was only concluded in April 2012 as a result, half year results do not reflect the impact of this funding. Available resources during the period under review were focused towards trading at the expense of farming operations. Seeing that no appropriately tenured funding was available on the market, the Board convinced shareholders of the need for a capital injection. As the Group was working on the capital raise, some shareholders put together bridging finance in March 2012 and the rights offer injection was received during the second week of April 2012. It should be noted that as a result of lack of funding, the Group’s going concern was in doubt. As was reported last year, products once discontinued have been reintroduced and have been readily accepted by the market and demand continues to firm. Considering the very limited resources that were available, staff at all levels continued to demonstrate commendable commitment and ingenuity in what had been a very challenging operating environment.

Macadamia and Tea Macadamia volumes continue to rise with this season expected to be another record yield. Added to the firm prices, the contribution from this crop was significant. Quality and yields are set to increase further next season and the market remains firm. Management is now focusing on irrigation where possible and improving plant density.

By half year end, tea volumes at 674 tonnes of made tea were 26% below forecast and 51% below 2011 production levels. In the year under review, a very severe frost slowed activity at the start of the new season. Significant revision of the manufacturing process has taken place at all tea factories. The increase in tea quality has been rewarded with higher prices.

Blended tea sales grew by 25% year on year. Late season sales received an additional boost from the introduction of two new tea bag product lines namely Three Leaves Tea and Mountain Dew.

Horticulture There was limited activity due to lack of resources. This coupled with erratic power supplies interrupted fruit set in certain orchards, however, early harvest quality is promising. All horticultural activities are under review in line with Group policy. Most affected being flower exports due to low international prices.

Poultry The first half of the poultry houses upgrade is complete and the division has just started on the second half. Placements for the period under review at 206,000 birds represented a 56% decrease on the previous year. Performance for the placements during the period under review is encouraging due primarily to reduced mortality compared to the previous year.

Retail Demand remains high for FAVCO's product range. Despite constraints in working capital,activity increased by 24%. The appetite of the market indicates that significant increases in throughput can be expected for this division.

Financial Performance Group revenues reduced by 3% to $6.7m. The operating profit was $0.217m after a fair value adjustment of $1.006m. Finance costs increased by 61.8% consistent with an increase in borrowings to $5.4m and increased cost of funds leading to a loss before tax of $0.307m. Loss after tax was $0.226m as a result of tax credit of $0.082m.

Southdown reported a turnover of $1.4m which was a reduction of 13% over the prior year and was 21% of Group turnover. An operating loss of $0.253m was posted compared to a loss of $0.111m in 2011. The fair value adjustment resulted in Southdown reporting a profit before interest and tax of $0.749m.

FAVCO's turnover grew by 24% to $4.3m and contributed 65% to Group turnover due to increased activities. An operating profit before interest and tax of $0.154m was recorded.

Claremont Estate’s turnover of $0.595m was 9% of Group turnover; an increase of 15% compared to 2011. An operating loss of $0.067m was reported compared to a $0.178m operating loss in 2011. Loss before interest and tax was $0.074m compared to a loss of $0.158m in the prior year.

Kent Estate recorded a turnover of $0.416m which was a reduction of 70% over the prior year and was 6% of Group turnover. An operating loss of $0.277m was reported compared to $0.302m in 2011. The loss before interest and tax was $0.267m compared to $0.257m in the prior year.

Outlook In the annual report for the year ended 25 September 2011, the Chairman mentioned that the Group had failed to perform largely as a result of capital constraints. Following the injection of fresh capital by the shareholders, overall prospects are positive. The 2011/12 season has begun with strong demand across the Ariston product range. Within a month after capital injection, the Group retired all expensive debt and paid most creditors. The result thereof is that the interest burden has been reduced and relations with suppliers and staff moral has significantly improved. The abridged statement of financial position below shows the Group's position soon after the rights offer.

Assets Equity and liabilities Non-current assets 19,181,489 Equity 16,589,002 Other current assets 3,308,692 Non-current liabilities 4,904,919 Cash resources 8,838,244 Current liabilities 9,834,504 Total assets 31,328,425 Total equity and liabilities 31,328,425

The macadamia forecast is for an earlier and slightly larger crop of improved quality which will have a positive influence on cashflows. Early season tea is of much improved quality. Local demand for the expanded range of blended tea continues to grow. Early stone fruit results are positive. The pome crop will exceed last year's yield and barring a repeat of last season's hail events, quality will also be much improved. Poultry production at Kent is set to stabilise with an emphasis on cost and waste reduction. Most significantly, FAVCO is poised to expand activities into a ready market. Now that financial resources have been availed by shareholders,much of management's attention is focused on the critical issue of improving working capital combined with the focus on product quality and cost management. These resources, we believe will unlock the potential of the Group.

Appreciation As management, we are grateful for the support given to us by the Chairman, Board, Shareholders, Employees and stakeholders during these difficult times. Following the injection of fresh capital, management's time is now focused on growing the business.

BY ORDER OF THE BOARD

F.N. MUSINGA COMPANY SECRETARY 16 May 2012

UNAUDITED F INANCIAL RESULTS FOR THE HALF YEAR ENDED 3 1 MARCH 2012

UNAUDITED HALF UNAUDITED HALF YEAR ENDED YEAR ENDED 31.03.12 31.03.11 Turnover 6,704,572 6,920,115Profit/(loss) before taxation and interest 217,331 (853,776)Operating loss (788,549) (1,226,026)Fair value adjustments 1,005,880 372,250Net finance costs (524,715) (324,259)Loss before taxation (307,384) (1,178,035)Taxation 81,827 268,816Loss for the period (225,557) (909,219)Other comprehensive income - -Total comprehensive loss for the period (225,557) (909,219) No. of shares in issue 445,087,262 444,337,262No. of shares in issue (weighted) 444,530,413 444,337,262Loss per share dollars -Basic ($0.0005) ($0.0020) -Weighted average ($0.0005) ($0.0020)

UNAUDITED HALF UNAUDITED HALF YEAR ENDED YEAR ENDED 31.03.12 31.03.11

Depreciation (345,872) (353,483)Capital expenditure for the period 198,802 353,823

UNAUDITED HALF UNAUDITED HALF AUDITED FULL YEAR ENDED YEAR ENDED YEAR ENDED 31.03.12 31.03.11 25.09.11

ASSETS Non-current assets Property, plant and equipment 8,688,114 8,648,369 8,479,107Biological assets 9,374,561 8,017,766 8,441,668Investments 25,650 25,650 25,650Taxation 1,093,164 942,271 1,345,547 19,181,489 17,634,056 18,291,972 Current assets Inventory 1,325,010 1,820,162 961,802Biological assets 399,183 353,304 305,456Accounts receivable 1,584,499 1,274,159 1,689,541Cash resources 1,102,171 99,326 99,485 4,410,863 3,546,951 3,056,284 Total assets 23,592,352 21,181,007 21,348,256 EQUITY AND LIABILITIES Equity Share capital 445,087 444,337 445,087Share premium 263,142 252,642 263,142Share based payments reserve 19,100 30,350 19,100Non-distributable reserves 10,998,626 10,998,626 10,998,626Accumulated losses (2,873,026) (1,553,961) (2,647,469) 8,852,929 10,171,994 9,078,486 Non-current liabilities Deferred taxation 4,238,252 4,302,090 4,238,254Long term borrowings 666,667 671,766 121,249 4,904,919 4,973,856 4,359,503Current liabilities Trade and other payables 5,054,492 2,918,016 3,623,372Short term borrowings 4,780,012 3,117,141 4,286,895 9,834,504 6,035,157 7,910,267 Total equity and liabilities 23,592,352 21,181,007 21,348,256