OREANDA-NEWS. Production, sales and throughput:

Volume and tonnage

Q2 FY2014(1)

Q2 FY2013(2)

y-o-y

Grain sales, tons

1,335,265

1,089,598

22.5%

Bulk oil sales, tons

261,747

382,680

(31.6%)

Bottled oil sales, '000 liters

30,375

33,760

(10.0%)

Sunflower seed crush, tons

726,087

760,218

(4.5%)

Refined oil production, tons

34,572

33,785

2.3%

Bottled oil production, tons

31,487

30,773

2.3%

Export terminals throughput, tons'3'

1,268,516

1,223,610

3.7%

Grain and oilseeds received in inland silos, tons'4'

2,447,085

1,623,760

50.7%

(1) Three months ended 31 December 2013.

(2) Three months ended 31 December 2012.

(3) Including 389,787 tons transshipped through Taman port in Q2 FY2014 (201,043 tons in Q2 FY2013), which represents 50% of the total throughput volume of the

Taman facility. Kernel Holding S.A. owns a 50% stake in the Taman grain transshipment facility.

(4) Six months ended 31 December 2013 and 2012, respectively.

Key highlights:

22.5% yoy growth in grain sales to a record 1.3 million tons in Q2 FY2014, stemming from a notable increase in grain exports from the Russian Federation and the overall advance of exports from Ukraine following a record high harvest.

Bulk oil sales of 261,747 tons in Q2 FY2014 approximately matched production volumes, with a decline of 31.6% yoy reflecting unusually high volumes delivered in second quarter last year.

Crushing plants were running at nearly full utilization, processing sizeable new harvest.

Record-high quarterly throughput at the export terminals of 1.3 million tons, up 3.7% yoy, reflecting higher utilization at the Taman grain transshipment facility and solid utilization of the Ukrainian ports.

Grain silo infrastructure benefitting from Ukraine's record high harvest, with grain and oilseeds received in inland silos up 50.7% yoy reaching a record 2.5 million tons as of 31 December 2013.

Corporate & Legislative:

In late December, the Ukrainian parliament approved a bill to reinstate VAT refunds on grain exports, effective 1 January 2014.

In October, Kernel Holding S.A. completed, via its subsidiary, the sale of remotely located farming operations in southern Ukraine for a total consideration of USD 7.0 million. Following the deal, the company's farming operations amounted to 405,000 hectares of leasehold land.

Selected average commodity prices, USD /t

3 months ended 31 December 2013 2012

yoy

Sunflower oil, Ukraine FOB, Black Sea

902

1,152

(21.8%)

Wheat, Ukraine FOB, Black Sea

284

340

(16.6%)

Corn, Ukraine FOB, Black Sea

202

299

(32.5%)

Barley, Ukraine FOB, Black Sea

243

312

(22.0%)