Aminex Regulatory News (AEX)

AMINEX PLC

Preliminary results for the year ended 31 December 2010

HIGHLIGHTS

·; Gross revenues $7.1 million (2009: $7.8 million) and net loss for period $4.5 million (2009: $2.9 million)

·; New funds raised in 2011 from Placing and Open Offer will accelerate drilling

·; Nyuni-2 well in Tanzania to spud within 2 months 

·; Further well in Ruvuma Basin, Tanzania, will follow on from Likonde-1, drilled 2010 

·; New PSA being negotiated for Nyuni area, Tanzania

·; Scope to accelerate commercial production from Kiliwani North to meetenergy shortages in Dar es Salaam

·; Sale of 50% interest in Korex Ltd. 

·; Successful 2010 'Wilcox' well at Shoats Creek, Louisiana will lead to development drilling in 2011

Aminex chairman Brian Hall commented: "We are looking forward to a busy period of exploration drilling on both our main licences in Tanzania, together with commercialisation of the Kiliwani North gas discovery in Tanzania and development drilling in Louisiana. With an active programme supported by a strong balance sheet, shareholders can expect news from several different areas of our portfolio. "

For further information please contact:

Aminex PLC

Brian Hall - Chairman +44 (0) 20 7291 3100

Max Williams - Chief Financial Officer

Pelham Bell Pottinger

Archie Berens +44 (0) 20 7861 3112 or +44 (0) 7802 442486

Website www.aminex-plc.com

Dear Shareholder,

Below are Aminex's preliminary financial results and accompanying statement in respect of the year ended 31 December 2010.

OVERVIEW

During the year, Aminex drilled the Likonde-1 exploration well in the Ruvuma basin of Tanzania, the Olympia Minerals-1 (OM-1) well in Shoats Creek, Louisiana, formed a joined venture to drill deep Wilcox prospects in Louisiana with El Paso and drilled the Olympia Minerals 10-1 well as a member of that joint venture. Likonde-1 confirmed the prospectivity of the onshore Ruvuma basin in Tanzania but did not flow commercial hydrocarbons. OM-1 successfully tested oil and gas in Cockfield sands and was placed on production mid-year. OM10-1 tested five oil and gas intervals and was placed on production in late 2010. Following completion of negotiations between third parties for the expansion of gas facilities at Songo-Songo Island in Tanzania, a development licence was applied for in the second half of the year for commercialisation of the Kiliwani North gas discovery. It is anticipated that this licence will be signed in the near future, paving the way for construction of facilities and Aminex's first commercial gas production in Tanzania. Energy shortages and recent supply problems in Tanzania are underlining the country's urgent need for new sources of gas. Kiliwani North's proximity to infrastructure makes it an ideal candidate for early commercialisation with government support.

Three wells already drilled on the WEEM-2 concession, onshore Gulf of Suez, Egypt, have not been commercially successful but have provided valuable information for future exploration. Aminex is free-carried on this licence for a 10% beneficial interest through to commercial production, so has no immediate financial exposure.

During the year, the Company sold 50% of the wholly-owned subsidiary Korex Ltd. to Chosun Energy. Korex holds the rights to Aminex's involvement in the DPRK (North Korea), a highly prospective country for oil and gas but, of course, deeply troubled at present by international political issues. Chosun Energy has assumed the management of Korex, which signed a PSA for exploring the East Sea in the middle of the year. Korex's progress and ability to progress its projects in the DPRK will depend to a large extent on political developments in the region.

The Company's oilfield service and supply business, AMOSSCO, has traded steadily during the year, serving clients in a number of remote locations as well as supporting Aminex's own operations.

Since the year end Aminex has successfully concluded an institutional placing of new shares and an open offer to existing shareholders, together raising over $40 million in new funds (before expenses). This will finance an active drilling programme going forward over the next two years. As a direct consequence of the funding exercise, the Company has now been able to increase its interest in the Nyuni PSA in Tanzania, which includes two gas discoveries, from 50% to 65% and to sign a rig contract for drilling the Nyuni-2 well in Tanzania, likely to be spudded within two months. The Nyuni PSA expires this year, being the first PSA in the history of Tanzanian oil and gas exploration to last the full 11 year term. A new PSA, which may include additional acreage, is under negotiation and the Company is confident that this will be satisfactorily concluded. A further well is planned in the Ruvuma Basin this year, with partners Tullow Oil and Solo Oil. This must be drilled before the end of the current exploration phase which expires in December 2011. Prospect selection in this large licence area is still in progress, while offshore in the same basin there have been intensive deep water drilling campaigns by larger companies which have yielded major gas discoveries.

FINANCIAL REVIEW

Financing and future operations

In recent years, Aminex has maintained a policy of financing its exploration and production operations through equity and cash flow and as a result remains debt-free, except for low value asset-backed loans in its US operations. During 2010, the Directors applied this strategy when arranging placings under the disapplication authority granted by shareholders and, since the year-end, with a successful placing and over-subscribed open offer, completed in March 2011. The 2011 fundraising amounted to approximately $39 million (net of issue expenses). These funds are to finance Aminex's upcoming capital expenditure programme, including participation in drilling the Nyuni-2 exploration well on the Nyuni PSA in the first half of 2011, a second exploration well on the Ruvuma PSA in the second half of 2011 and the commercialisation of the Kiliwani North gas discovery in Tanzania. In addition, two development wells are planned at Shoats Creek, Louisiana. As a result of the fundraising, Aminex was able, in February 2011, to enter into a farm-in agreement with Key Petroleum Ltd, paying 20% of the Nyuni-2 dry-hole cost in order to earn an additional 15% interest in the Nyuni PSA, including the Kiliwani North gas discovery. This increases Aminex's interest from 50% to 65%.

Aminex's strengthened balance sheet will ensure that the Group can complete its planned high-impact exploration drilling projects and increase its production over the next twelve months.

2010 financial results

The Group benefited from increased oil and gas production in the second half of the year following the successful drilling and completion of the Olympia Minerals-1 and Olympia Minerals 10-1 wells on Shoats Creek, although production overall for the year was lower than for 2009:

Oil production decreased year-on-year by 9%. The reduction was primarily attributable to the decline in production from the Upper Andrau zone in the Sunny Ernst-2 well at Alta Loma, as reported at the half-year. However, this reduction has been partially reversed by production from the two new Shoats Creek wells. Somerset contributed 48% of oil sales, Shoats Creek 35%, Alta Loma 16% and South Weslaco and other legacy interests 1%. Gas production fell by 49%, again as a result of lower production from Sunny Ernst-2 but also through the lower production from South Weslaco. The Olympia Minerals 10-1 contributed the first gas sales from the Shoats Creek field. Alta Loma contributed 64% of gas sales, South Weslaco 28% and Shoats Creek and other legacy interests 8%. Average oil and gas prices increased by 38% and 21% respectively in 2010 compared with 2009: the average oil price was $76.46 per barrel (2009: $55.25 per barrel) and the average gas price was $4.74 per mcf (2009: $3.91 per mcf).

Overall, Group revenues fell by 10%, reflecting a 5% increase in oil and gas revenues and a 28% reduction in equipment sales by the oilfield services division, AMOSSCO, from $3.6 million in 2009 to $2.6 million in 2010. The AMOSSCO revenues for 2010 improved strongly in the second half as AMOSSCO expanded its customer base.

Cost of sales of $5.2 million was $200,000 less than in 2009. The decrease represented reduced costs in the oilfield services division arising on the lower revenues offset by increased production costs in the US, mainly arising on the additional wells producing at Shoats Creek. The fall in production has led to a reduction in the depletion and decommissioning charge by 25% to $1.19 million. The Directors have made an impairment provision of $550,000 against the carrying cost of the South Weslaco field: the provision arises on the lower net present value of the South Weslaco field evaluated by independent engineers as at 1 January 2011 compared with the carrying value of the asset.

The gross profit for the Group has fallen from $0.87 million to $0.16 million, mainly as a result of the impairment provision. Before the impairment provision, the gross profit percentage for 2010 was 10%, more in line with the 11% achieved in 2009.

Group administrative expenses increased by 30% from $3.59 million to $4.65 million. The increase of $1.06 million arose mainly as a result of an additional $0.7 million for share-based payment charges, following the grant of options in January 2010, and also because of adverse foreign exchange movements and a reduction in recoverable costs from joint venture partners compared with the previous year.

After depreciation arising on other fixed assets, the loss from operating activities was $4.57 million compared with $2.77 million in 2009.

After taking into account net finance income of $73,000 (2009: net finance costs of $130,000), the resulting loss before tax for the year ended 31 December 2010 was $4.49 million (2009: loss $2.89 million), with basic and diluted loss per share of 1.06 cents (2009: $0.92 cents).

Balance sheet

As a result of drilling three wells during 2010, the Group's total non-current assets increased from $45.8 million to $58.0 million. The movement of $12.2 million comprises a net increase to exploration and evaluation assets of $5.7 million, an increase in property, plant and equipment of $6.3 million and an increase in other investments of $0.2 million.

Aminex's participation in the drilling of the Likonde-1 well on the Ruvuma PSA, together with the associated technical evaluation and general administrative costs, was the main reason for the net increase of $5.7 million in the exploration and evaluation assets. The increase also included expenditure on an independent resources report and work to identify suitable drilling prospects on the Nyuni PSA, ongoing negotiations for the development and commercialisation, including submission of the development licence application, of the Kiliwani North gas discovery and the continuing evaluation work on the West Songo-Songo field carried out by the operator, Key Petroleum. Following the disposal of 50% of the share capital and transfer of day-to-day management of Korex Limited to Chosun Energy Pte. Ltd., Aminex has concluded that the fair value of the remaining investment in Korex of $500,000 should be reclassified to other investments to reflect its reduced involvement in the project in Korea.

The increase of $6.3 million in property plant and equipment mainly comprises the cost of the drilling and completion for Olympia Minerals-1 and Olympia Minerals 10-1 and the cost of related production facilities on the Shoats Creek field. These additions, together with an increase in the decommissioning provision, have been offset by the depletion, depreciation and decommissioning charge for the year and the impairment provision against the carrying value of the South Weslaco field. The increase in other investments of $200,000 relates to the net effect of the reclassification of the North Korea investment from exploration and evaluation assets, the provision against an unlisted investment and the acquisition of an interest in Triton Petroleum as part of the consideration on the part-disposal of Korex Ltd.

As with each reporting period, the Directors have performed an extensive review of the Group's portfolio of assets to determine whether any of the assets have been impaired. The Directors have given particular consideration to the Nyuni PSA which is due to expire in 2011. At present Aminex is in advanced negotiations with the Tanzanian authorities for a new Nyuni PSA and a development licence for the Kiliwani North gas field. In the event that either the new Nyuni PSA or the development licence was not granted, then provision would need to be made against the carrying cost of the Nyuni PSA, either in whole or in part. However the Directors have a reasonable expectation that both a new Nyuni PSA and the Kiliwani North development licence will be granted and have therefore concluded that no additional impairment provision is required against the Group's exploration and evaluation assets. In the US, as part of the impairment review, the Directors have made a provision of $550,000 against the net book cost of the South Weslaco field.

The Group's current assets at 31 December 2010 amounted to $5.0 million (2009: $14.3 million), comprising cash balances of $2.9 million (2009: $11.7 million) and trade and other receivables of $1.7 million (2009: $2.6 million) and assets available for sale of $0.4 million (2009: $nil). Current liabilities increased to $4.4 million compared with $2.7 million in the prior year, the increase being mainly due to capital expenditure payables settled since the year-end. Non-current liabilities have been increased by an amount of $524,000 due mainly to an increase in the decommissioning provision, reflecting a faster campaign to decommission the Somerset field and an increase in the estimated costs to decommission the Shoats Creek field.

Cash movements

The net decrease of $8.8 million in cash and cash equivalents is net of proceeds of $4.3 million from the issue of new share capital, after transaction costs. The net cash outflow from operating activities was $0.4 million (2009: outflow $1.7 million) and capital expenditure outflows were $12.7 million (2009: $7.3 million). The Group also received $93,000 from the disposal of shares and interest received and reduced debt by a net amount of $38,000.

OPERATIONS REVIEW

TANZANIA - Ruvuma PSA

Likonde-1, the first of an initial two well programme in Ruvuma, penetrated excellent quality reservoir sands in the Oligocene and Mesozoic with a combined thickness of over 250 metres (820 feet). However, shows of both oil and gas recorded in the well proved to be residual. It was concluded that the Likonde closure had most likely been breached and that migrating hydrocarbons had escaped to surface. The reservoir quality Oligocene sands penetrated in the Likonde-1 well are believed to be of the same Lower Tertiary age, with similar geology, as those encountered in some of the large, gas-bearing reservoirs recently discovered in the offshore Ruvuma Basin, across the border in Mozambique.

With the benefit of the stratigraphic and velocity control gathered from the Likonde-1 well, the existing seismic along the highly prospective trend on which the well was drilled was significantly upgraded by reprocessing during 2010. The Ruvuma partners are now evaluating the options for the next well on the block which is scheduled to be drilled in 2011.

The Initial Exploration Period under the PSA has been extended to December 2011 and the well must be drilled prior to that date.

Following the Company's farmout of a 12.5% interest in the Likonde-1 well to Solo Oil PLC, Solo exercised its option to become a full party to the Ruvuma JOA. The current licence interests are now Tullow Oil (operator) 50%, Aminex 37.5% and Solo Oil 12.5%.

TANZANIA - Nyuni PSA and Kiliwani North Development

An application for a 25 year Development Licence for the Kiliwani North gas field was submitted to the Tanzanian Government in 2010 and the award of this licence is now thought to be imminent. The gas reserves in the field will be developed via a 3 kilometre tie-in to the Songas Processing Plant on Songo-Songo Island. Processed gas will then be transported through the export pipeline to Dar es Salaam. Agreements for connection to the facilities and for the processing and transportation of the gas are being negotiated with Songas, the owner of the plant and pipeline. In parallel with this, a memorandum of understanding has been signed with a potential gas buyer and a full gas sales agreement is under negotiation. A second potential gas buyer has signed a Letter of Intent. Preliminary engineering design work is commencing in advance of issuing tenders for the construction, hook-up and commissioning of a pipeline and tie-in facilities for the Kiliwani North field.

The demand for gas in Tanzania is increasing, both for power generation and for industrial use. A new 105 MW power plant is due to be commissioned in early 2012 in Dar es Salaam and plans for other plants are progressing. Expansion of the Songas Processing Plant by the addition of two trains and compression capability is progressing.

In-place gas, categorised as Contingent Resources, for the Kiliwani North field have been evaluated by ISIS Petroleum Consultants (ISIS) are shown in the table below.

Elsewhere in the Nyuni Licence, plans are well advanced for the drilling of the Nyuni-2 exploration well on the Nyuni Prospect. A contract for the Caroil-6 drilling rig was signed recently and material procurement is in progress as well as numerous contracts for the main drilling services. Nyuni-2 will be drilled as a deviated hole from Nyuni Island, with a planned build angle of 31 degrees from vertical to a bottom hole target approximately 1,200 metres to the south-east of Nyuni island. The primary objective of the well is the Neocomian sand reservoir which is the main producing horizon at Aminex's Kiliwani North field and at the neighbouring Songo-Songo field, while the overlying Aptian-Albian sands constitute a secondary objective. These sands were gas-bearing in the Nyuni-1 well in 2004, according to the wireline log evaluation, but operational difficulties prevented testing of the reservoir at the time. On the basis of the gas shows encountered while drilling and the petrophysical evaluation of the Aptian-Albian sands, ISIS attributes "Contingent In-place Resources" to the Aptian-Albian of the Nyuni Prospect. These, together with the "Prospective Resources" attributed to the Neocomian reservoir sands, are tabulated below.

*Prospective resource in place numbers are unrisked

The Prospective and Contingent resources have been prepared by Isis Petroleum Consultants Pty Ltd.

Aminex's interest in the above is 65%

With the Nyuni Licence approaching final expiry in 2011, and with a number of prospects and leads as yet undrilled or fully evaluated, Aminex is at an advanced stage in negotiating a new PSA with the Tanzanian Government. The new PSA will cover the existing area held under licence with the exception of the Kiliwani North Development Licence area.

Underlining its continuing confidence in the prospectivity of the Nyuni area, Aminex announced in February 2011 that it had reached agreement with Key Petroleum (Key) to farm into its interest in the Nyuni Licence by funding Key's 20% share of the cost of the Nyuni-2 well to earn a further 15% interest in the licence. This results in Aminex holding a 65% interest in the licence, including the Kiliwani North gas field.

The conclusion of a new PSA for Nyuni will allow for continuing exploration in an area where Aminex has built up a significant knowledge base and already made two gas discoveries. With real progress now being achieved on the commercialisation of Kiliwani North gas and with the potential to identify larger gas reserves with the upcoming drilling of the Nyuni-2 well, Aminex is well placed to build a significant position as a gas producer in Tanzania.

TANZANIA - West Songo-Songo

The West Songo-Songo PSA area, located between the Songo-Songo gas field and the coast of Tanzania, shares a petroleum system with the Songo-Songo and Nyuni PSA areas to the east. Two main structural prospects have been identified on the block with further stratigraphic potential. These require additional seismic to define drillable prospects. In 2010, operator Key Petroleum reprocessed the existing seismic on West Songo-Songo and updated its interpretation of the existing prospects and leads. Progress on this PSA continues to be limited, but the resource potential for gas remains high in an area close to the existing production, processing and transportation facilities on Songo-Songo Island. The result of recent work has not fundamentally changed the identification of the main prospects.

Within the Initial Exploration Period of the PSA there is an obligation to drill one well in the first three years.

Aminex holds a 50% interest in this PSA which is operated by Key Petroleum.

EGYPT

Gulf of Suez - West Esh el Mellaha-2 PSC ("WEEM-2")

The potential of this prospective block located along the south-western onshore margins of the oil-prone Gulf of Suez Basin is yet to be realised. Three wells already drilled under the current PSC have proved the presence of a working petroleum system with prospective reservoirs at a number of different horizons, but have not established commercial flow rates. The last well drilled, South Malak-1, was eventually abandoned after testing limited volumes of oil from two reservoir horizons. However, the main target in Nubian sandstones was not present in the well. Given the complexity of faulting and poor conditions for seismic acquisition, characteristic of the Gulf of Suez Basin, geological control from well data is vital in unravelling the geometry and reservoir distribution in the block. The group has entered the second period of the licence with a commitment to drill two further exploration wells.

Aminex has a 10% interest in the PSC with a free carry through to first production under a Development Licence.

USA

Shoats Creek Field, Louisiana

Aminex holds leases at Shoats Creek covering approximately 2,100 acres. Shoats Creek is an old field which has been producing for several decades under varying ownership, understanding of which has been greatly enhanced by recent acquisition of 3D seismic which has enabled the property to be fully re-evaluated. Principal oil and gas bearing horizons are the Frio sands at a depth of 5-6,000 feet, multiple zones in the Cockfield sands at 8,500 to 9,500 feet and, deeper than 10,000 feet, potential in the Upper and Lower Wilcox sands. Until the new seismic had been interpreted, the Wilcox sands had been difficult to identify and had not been explored.

In 2010 Aminex successfully drilled a well to test the Cockfield sands, OM-1, which was tested and placed on production during last summer at an initial flow rate of 150 BOED. In mid-year, the Company signed a joint venture agreement with its neighbouring leaseholder to the west, El Paso E&P, LP ("El Paso"). This agreement created a unitised area of roughly 1,000 acres, half of which was contributed from Aminex's acreage and half from El Paso's, with the intention to explore the Wilcox sands below 10,000 feet, each company paying a 50% share of the costs. Shortly afterwards, the joint venture drilled a 12,000 foot well, OM10-1, to test a prospect in Upper Wilcox sands which spanned the acreage of both companies, having been identified on seismic. OM10-1 identified five productive zones, all of which were fracture-treated, and was placed on production from three of them during the 4th quarter, at an initial flow rate of 450 BOED, of which approximately 30% was gas and 70% light grade crude oil. The remaining two zones will ultimately be placed on production as well, but first require installation of enhanced water disposal facilities.

The success of OM10-1 is likely to lead to the drilling of two further wells in the Wilcox sands by the Aminex-El Paso joint venture in 2011. However, production from both OM-1 and OM10-1 has been complex to manage so far and still requires better understanding if it is to be optimised and produced at consistent rates. Although the oil produced is light, commanding a small premium to the WTI marker crude price, it is also waxy and suffers from a high water cut. If produced too fast, there tends to be high water ingress, but if produced slowly, waxing problems occur. Both these problems will be solved over time but production has tended to be subject to frequent technical shutdowns so far.

Alta Loma Field, Texas

Aminex participated in a successful oil and gas well in 2008, Sunny Ernst-2 ('SE-2'). SE-2 has been producing from Upper Andrau sands since inception, but this has now materially declined, adversely affecting Aminex's group revenues. A project to plug off the Upper Andrau formation and recomplete the well in the shallower 'S' sands is now likely to be completed in the very near future. A further well at Alta Loma was originally due to be drilled in late 2010 but is now scheduled for 2012.

Aminex has a 37.5% working interest in Alta Loma and El Paso is operator.

Somerset Field, Texas

Production continues from several hundred stripper wells. Somerset produces oil of a lower quality than WTI and consequently suffers a discount to the WTI price. An accelerated programme of plugging and abandoning old, idle wells is under way.

Aminex has a 100% working interest and is field operator.

South Weslaco, Texas

South Weslaco produces gas and Aminex has participated in several new wells. Continuous drilling is required in order to hold additional prospects but the net result has been that revenues have tended to be ploughed back into relatively short life wells. Given a weaker overall market for gas, Aminex is not currently planning to participate in any further drilling on South Weslaco, but will continue to enjoy production from the existing wells it has drilled. An impairment provision against the book value of the South Weslaco property has been made in the 2010 financial statements.

Aminex has a 25% interest in this property which is operated by Kaler Energy.

US Reserves summary

An updated reserves report effective 1 January 2011 is summarised below. Drilling in 2010 at Shoats Creek has materially increased proved reserves (1P) at Shoats Creek but the report has also materially reduced the probable (2P) reserves reported. An ongoing further evaluation is in progress which will take into account accelerated drilling and a potential water-flood programme in the Cockfield formation. Consequently, an updated reserves summary may be calculated by the reporting engineers and released in due course.

NORTH KOREA

Aminex participates in exploration of the Korean East Sea through a PSC covering an offshore area of over 55,000 km², through a 50% shareholding in Korex Ltd., management of which is handled by fellow shareholder Chosun Energy of Singapore. Politics on the Korean peninsula are extremely volatile, difficult to follow and hard to predict. Early last year it was possible to be optimistic about political developments but subsequent conflict between the two Koreas has made the environment even more difficult for oil and gas operations and the Board watches the situation closely.

STRATEGY AND PROSPECTS

Aminex is the only fully-listed London Stock Exchange oil and gas company with a primary focus on the East African margin, which is becoming an area of intense industry interest. The Company plans to drill two major wells in Tanzania this year. In the first half, Nyuni-2 will be spudded on Nyuni Island to target a large prospect in Neocomian sands, which is a proven producing formation close by. Later in the year Aminex, with partners Tullow Oil and Solo Oil, plans to drill a further well in the onshore Ruvuma Basin, to follow up the promising but non-commercial Likonde-1 drilled in 2010. Progress is anticipated on commercialisation of the Kiliwani North gas field and first commercial production is likely within 12 months. In the US, two development wells in Wilcox sands are planned this year at Shoats Creek, through the Aminex-El Paso joint venture. In Egypt on the WEEM-2 PSC, two further wells are planned but timing has not yet been specified.

The Board constantly reviews the Company's strategy and the balance of its operations, seeking out opportunities for the profitable development of the business and encouraged by the outlook in East Africa, where Aminex has been a pioneering explorer for over nine years.

We are grateful to the financial institutions who have demonstrated their confidence in our projects by subscribing for new shares in the recent placing and, of course, to those existing shareholders who took up the accompanying 'Open Offer' in full. I would like to finish by paying tribute to our small but loyal staff who worked long and hard during the year to further our projects.

Yours sincerely,

BRIAN HALL

Chairman

Group Income Statement

for the year ended 31 December 2010

Group Statement of Comprehensive Income

for the year ended 31 December 2010

Group Balance Sheet

 at 31 December 2010

Group Statement of Changes in Equity

for the year ended 31 December 2010

Group Statement of Cashflows

for the year ended 31 December 2010

Notes to the Financial Informationfor the year ended 31 December 2010

1 Statement of accounting policies

The financial information has been prepared in accordance with International Financial Reporting Standards as adopted by the EU (EU IFRSs).

Basis of preparation

At the date of issue of this announcement the Group's statutory financial statements for the year ended 31 December 2010, and therefore the result showing in the announcement, are unaudited. In the opinion of the Directors, the announcement includes all adjustments necessary for a fair presentation of the results for the periods presented.

The accounting policies used are consistent with those set out in the audited Annual Report for the year ended 31 December 2009, which is available on the Company's website, www.aminex-plc.com, except as noted below.

i) New account standards and interpretations adopted

From 1 January 2010, the Group applied IFRS 3 "Business Combinations (2008)" and IAS 27 "Consolidated and Separate Financial Statements (2008)" in accounting for business combinations and the accounting for controlling and non controlling interests. The change in accounting policy has been applied prospectively.

ii) New standards and interpretations not adopted

A number of new standards, amendments to standards and interpretations are effective for annual periods beginning after 1 January 2010, and have not been applied in preparing the financial statements. None of these is expected to have a significant effect on the consolidated financial statements of the Group.

2 Operating segments

The Group considers that its operating segments consist of (i) Producing Oil and Gas Properties, (ii) Exploration Activities and (iii) Oilfield Services and Supplies. These segments represent are those that are reviewed regularly by the Executive Chairman (Chief Operating Decision Maker) to make decisions about resources to be allocated to the segment and assess its performance and for which discrete financial information is available. However it further analyses these by region for information purposes. Segment results include items directly attributable to the segment as well as those that can be allocated on a reasonable basis. Unallocated items comprise mainly head office expenses, cash balances and certain other items.

Segmental revenue - continuing operations

The exploration activities in Africa and Asia do not give rise to any revenue at present.

2 Segmental disclosure (continued)

3 Gain on disposal of exploration assets

During the period the Group disposed of 50% of its 100% shareholding in the wholly owned subsidiary, Korex Limited which holds exploration rights in the Korean East Sea. The interest was sold for a consideration valued at US$500,000 and the profit on disposal amounted to US$306,000. As a result of the disposal of 50% of the shareholding the Group now jointly controls Korex Limited. In line with IAS 27, the remaining investment of Korex Limited was adjusted to its fair value at the date of the change in control which resulted in an additional revaluation of this remaining investment of US$306,000. In conjunction with this transaction the Directors have concluded that the investment in Kobril Limited, a related Korean financial asset, of US$374,000 is impaired and have therefore made full provision against this balance. The total impact on the income statement from the disposal is set out below:

4 Finance income

5 Finance costs

6 Loss per Ordinary Share

The basic loss per Ordinary Share is calculated using a numerator of the loss for the financial year and a denominator of the weighted average number of Ordinary Shares in issue for the financial year. The diluted loss per Ordinary Share is calculated using a numerator of the loss for the financial year and a denominator of the weighted average number of Ordinary Shares outstanding and adjusting for the effect of all potentially dilutive shares, including share options, assuming that they had been converted.

The calculations for the basic loss per Ordinary Share for the years ended 31 December 2010 and 2009 are as follows:

There is no difference between the basic loss per Ordinary Share and the diluted loss per Ordinary Share for the years ended 31 December 2010 and 2009 as all potentially dilutive Ordinary Shares outstanding are anti-dilutive. There were 27,715,000 (2009: 15,625,000) anti-dilutive share options and no anti-dilutive share warrants in issue as at 31 December 2010 (2009: 36,423,689).

7 Exploration and evaluation assets

The Directors have considered the licence, exploration and appraisal costs incurred in respect of its exploration and evaluation assets, which are, with the exception of the partial write down on the Nyuni-1 well in Tanzania, carried at historical cost. These assets have been assessed for impairment and in particular with regard to remaining licence terms, likelihood of renewal, likelihood of further expenditures and ongoing acquired data for each area, as more fully described in the Operations Report. The current Nyuni exploration licence is due to expire in May 2011 and the Directors are currently negotiating with the Tanzanian authorities who have expressed willingness to renew the licence. The Directors are satisfied that there are no further indicators of impairment but recognise that future realisation of these oil and gas assets is dependent on further successful exploration and appraisal activities and the subsequent economic production of hydrocarbon reserves.

8 Property, plant and equipment

Property, plant and equipment shown above includes assets held under finance leases as follows:

The majority of the Group's property, plant and equipment comprises its producing oil and gas properties which are depleted on a unit of production basis, based on proven and probable reserves at each field. At 31 December 2010, an independent valuation was carried out based on estimated future discounted cash flows of each producing property at the Shoats Creek, South Weslaco and Alta Loma fields, as set out in more detail in the Operations Review. The South Weslaco field was considered to be impaired and its carrying value written down by $550,000. The Directors are satisfied that no further impairment of the property, plant and equipment is considered to have occurred.

9 Share capital

On 8 June 2010, the Group issued 17.2 million ordinary shares increasing share capital by $1.2 million. The premium arising on the issue, after share issue costs amounted to $401,000. On 12 November 2010, the Group issued 24.3 million ordinary shares increasing share capital by $2 million. The premium arising on the issue, after share issue costs amounted to $699,000.

10 Contingent liabilities

The Group has contingent liabilities at 30 June 2010 in respect of certain claims made against a subsidiary company. The Directors believe that these claims will be successfully defended and will not result in a material liability for the Group.

11 Going concern

The Directors have given careful consideration to the Group's ability to continue as a going concern. The Directors have concluded that, following the placing and open offer in 2011 which raised approximately $39 million net of transaction costs, the Group has sufficient ongoing operating cash flows to continue as a going concern. The Group's ability to continue to make planned capital expenditure, in particular in its areas of interest in Africa and the USA, can be assisted if necessary by the successful sale of assets, deferral of planned expenditure or an alternative method of raising capital. The Directors have a reasonable expectation that the Group will be able to implement this strategy.

We understand that, as in prior years, the auditors will likely make reference to this in their report. We understand that their opinion will not be qualified in this respect.

12 Post balance sheet events

On 4 February 2011 the Company signed a binding heads of agreement with Key Petroleum Limited ("Key") to increase its interest in the Nyuni PSA from 50% to 65%. Under the terms of the farm-in Aminex will fund a 20% share of the dry hole cost of the forthcoming Nyuni-2 wells in Tanzania in return for assignment to the Company of a 15% interest.

On 25 February 2011 the Company raised proceeds of approximately $29.5 million following a placing of 250 million new Ordinary Shares of nominal value €0.06 each at 8 pence per Ordinary Share.

On 14 March 2011 the Company raised additional proceeds of approximately $9.5 million on the completion of an Open Offer the terms of which permitted existing shareholders to subscribe for one share for every six shares held. The Company issued 75,667,727 new Ordinary Shares of nominal value €0.06 each at 8 pence per Ordinary Share under the Open Offer.

13 2010 Annual Report and financial statements

The 2010 Annual Report and financial statements will be posted to shareholders shortly.

14 Statutory information

The financial information set out above does not constitute the Company's statutory accounts for the year ended 31 December 2010 within the meaning of the Companies (Amendment) Act, 1986. The statutory accounts will be finalised on the basis of the financial information presented by the Directors in the preliminary announcement and together with the independent auditor's report thereon will be delivered to the Registrar of Companies following the Company's Annual General Meeting.

15 Estimates, key risks and uncertainties

The preparation of financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates. Key estimates and judgments related to the preparation of these financial statements relate to notes 7 (Exploration and evaluation assets), 8 (Property, plant and equipment) and 11 (Going concern) and these were the same as those applied in the most recent published financial statements for the Group. Principal risks and uncertainties affecting the Group relate to exploration and production risk, commodity and currency prices and other political risks particular to the countries in which we operate, as more fully described in the operations report, and in our most recent published financial statements.

16 Board approval

The Board of Directors approved the preliminary financial statements for the year ended 31 December 2010 on 29 March 2011.