New Britain Palm Oil : THIRD QUARTER REPORT AND TRADING UPDATE

28 November 2014

New Britain Palm Oil Limited

("NBPOL", the "Group" or the "Company")

THIRD QUARTER REPORT AND TRADING UPDATE

New Britain Palm Oil Limited (LSE: NBPO; POMSoX: NBO), one of the world's largest fully integrated producers of sustainable palm oil , today announces its third quarter report and trading update for the period from 1 January 2014 to 30 September 2014.

Major financial and operational highlights in respect of the nine months ended 30 September 2014 were as follows:

(Note: PNG Kina-USD exchange rates for the nine months to 30 September 2014 and 30 September 2013 averaged 0.3882 and 0.4451 respectively)

* Net foreign exchange losses include approximately USD 1.8 million of unrealised non-cash foreign exchange losses (2013: USD 22.0 million losses).

** PBT in the first nine months of 2014, excluding unrealised non-cash foreign exchange losses, was therefore USD 89.6 million versus USD 40.5 million in the first nine months of 2013

Nick Thompson, Chief Executive Officer, stated:

"In the first nine months of 2014, the Group processed 1,802,157 tonnes of Fresh Fruit Bunches ("FFB"), some 11.2% higher than the same period last year, including 506,397 tonnes from smallholders (2013: 463,750 tonnes). Whilst allowing for the usual seasonal drop in volumes during the third quarter, we have seen a strong recovery in available FFB for harvest with increases in FFB production of 8.0% and 7.6% respectively from our estates and smallholders versus the third quarter of 2013.

Crude Palm Oil ("CPO") extraction rates during the period averaged 22.23%, as compared to the corresponding period in 2013 of 21.98%. As a result of higher FFB production and higher extraction rates, 400,672 tonnes of CPO was produced, some 12.5% higher than the same period last year. Palm Kernel Oil ("PKO") production was 40,624 tonnes, some 14.7% higher than the same period last year.

The Group shipped 448,106 tonnes of CPO, PKO and refined oils during the first nine months of 2014 at an average price of USD 972/tonne, compared to 417,702 tonnes in the first nine months of 2013 at an average price of USD 904/tonne. The greater volumes shipped at higher average selling prices, together with a lower PGK-USD exchange rate and the cost saving measures implemented in the prior year have resulted in improved gross margins and improved profitability when compared to the same period last year. However the decision by the Central Bank of PNG in early June to effectively increase the value of the PNG Kina by circa 18% has increased our year to date unit cost of production per tonne of oil by 8.8% when compared against our unit costs for the first half of 2014. Closing oil stocks at the end of September that will be shipped in the fourth quarter reflect this higher cost which, when coupled with lower selling prices, will negatively impact the Group's profitability during the fourth quarter. Subsequent to the Central Bank's intervention in June, the official reference rate has been lowered in small increments, with the PNG Kina currently trading at 0.3920 versus USD.

Palm oil prices during the first nine months of the year have traded as high as USD 990 per tonne and as low as USD 680 per tonne, their lowest level in nearly six years, driven by a record supply of alternative vegetable oils, the absence of an "El Niño" event and a weakening Chinese economy. Subsequent to period end, prices have remained subdued and are currently trading at approximately USD 715 per tonne.  As at the date of this announcement, the Group has sold forward 96,000 tonnes of CPO for the remainder of 2014 at an average price of USD 767/tonne and a further 33,000 tonnes into 2015 at USD 782/tonne.

On 9 October 2014, the Company received formal notification from Sime Darby Plantation Sdn Bhd ("Sime Darby Plantation") of its intention to make a cash offer for all the issued and to be issued shares in NBPOL at a price of GBP 7.15 or PGK 28.79 per share.

On 23 October 2014, the Offer Document and the Target Company Statement were dispatched to shareholders together with an assessment of the merits of the Offer by the Independent Directors of NBPOL. Following this assessment, the Independent Directors unanimously recommended, in the absence of a superior proposal, that NBPOL shareholders accept the offer. Please refer to the Company's announcements dated 9 October, 23 October and 18 November 2014 for further information regarding the cash takeover offer.

On 21 November 2014, the Company paid a gross interim dividend for 2014 of USD 15 cents per share to shareholders listed on the Jersey and PNG registers on 17 October 2014.

Overall, the Group continues to trade in line with the Board's expectations."

Enquiries:

Website:www.nbpol.com.pg

Notes to editors:

NBPOL is a large scale integrated industrial producer of sustainable palm oil in Australasia, headquartered in Papua New Guinea ('PNG'). It has over 79,800 hectares of planted oil palm estates, over 7,700 hectares of sugar cane and a further 9,200 hectares of grazing pasture; twelve oil mills; two refineries, one in PNG, and one in Liverpool, UK; and a seed production and plant breeding facility. The Company is listed on both the Main Market of the London Stock Exchange and on the Port Moresby Stock Exchange in PNG.

NBPOL is fully vertically integrated, producing its own seed (which it also sells globally), planting, cultivating and harvesting its own land, and processing and refining palm oil (both in PNG and the UK). It also contracts directly with its end customers in the EU and arranges shipping of its products.

NBPOL has high regard for the importance of its sustainability credentials. It has achieved 100% certification of all estates, mills and smallholders to the Roundtable on Sustainable Palm Oil ('RSPO') standard. NBPOL continues to be active in proving its performance through its certification to ISO 14001 and its close involvement with other innovative initiatives. The Company is a certified supplier of sustainable palm oil from its entire production base in PNG and Solomon Islands, under the RSPO guidelines."

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