Alba Mineral Resources Regulatory News (ALBA)

ALBA MINERAL RESOURCES PLC

CHAIRMAN'S STATEMENT

The Board of Alba Mineral Resources plc (the "Company" or "Alba" or collectively with its Subsidiary Companies, the "Group") is pleased to report the Company's interim results for the six months ended 31 May 2016. They incorporate the results of its subsidiary companies Aurum Mineral Resources Limited ("AMR"), Mauritania Ventures Limited ("MVL") and Alba Mineral Resources Sweden AB ("Alba Sweden") (collectively the "Subsidiary Companies").

INTRODUCTION

Alba is an explorer with a commodity focus on oil & gas, graphite, gold, uranium and base metals. Alba holds interests in the UK oil & gas exploration sector, plus hard rock exploration assets in Greenland (Graphite and Gold), Ireland (Base Metals and Gold) and Mauritania (Uranium). The Group's overall technical and corporate strategy is to identify and acquire natural resource projects it believes to have good potential and to advance them expediently. This will be achieved by controlled design and execution of a cost-effective generative process utilising data acquisition, GIS data analysis and exploration programme planning, led by our internal technical team and, where appropriate, through the support of external technical consultants.

RESULTS FOR THE PERIOD

The Group made a loss attributable to equity holders of the parent for the period, after taxation, of £198,803. The basic and diluted loss per share was 0.03 pence.

REVIEW OF ACTIVITIES

Corporate

On 26 February 2016, the Company announced that it had raised £525,000 (before expenses) in an oversubscribed placing, through the issue of 131,250,000 new ordinary shares at a price of 0.4 pence per ordinary share.

On 16 March 2016, the Company announced the appointment of Mr. Manual Lamboley to the Board as a Non-Executive Director. Mr. Ben Harber of Shakespeare Martineau was appointed as Company Secretary.

Horse Hill (UK)

The Horse Hill-1 well ("HH-1") is located within onshore exploration licence PEDL 137, on the northern side of the Weald Basin near Gatwick Airport. Alba owns a 15% direct interest in Horse Hill Developments Limited ("HHDL"). HHDL is a special purpose company that owns a 65% participating interest and operatorship of Licence PEDL137 and the adjacent Licence PEDL246 in the UK Weald Basin. The remaining 35% participating interests in the PEDL137 and PEDL246 licences are held by US-based Magellan Petroleum Corporation.

On 4 January 2016 the Company announced that it had been notified by HHDL that the Oil and Gas Authority ("OGA") had granted consent for an extended flow test over three separate zones in the Horse Hill-1 oil discovery well and, as such, that all necessary permissions had been granted in order for the Horse Hill-1 well to be flow tested. On 8 February 2016 Alba announced that flow tests had commenced. The final flow test results were announced by Alba on 21 March 2016. The final total aggregate stable dry oil flow rate from two Kimmeridge limestones plus the overlying Portland sandstone was measured at 1,688 barrels of oil per day.

Amitsoq (Greenland)

On 4 February 2016 the Company announced that it had completed an iron oxide (FeO) alteration remote sensing (satellite) study on the Amitsoq graphite project near Nanortalik in southern Greenland. The interpreted results were highly encouraging and provide numerous target areas for follow-up ground work and geophysics, highlighted as follows:

- Numerous and continuous graphitic horizons suggested along strike and proximal to the Amitsoq graphite mine.

- FeO anomalies are coincident with known graphite occurrences at the former Amitsoq graphite mine.

- Two zones contain multiple lenses of interpreted bedded graphite along strike 2.5 km and 5.8 km to the northeast of the Amitsoq mine.

- Additional FeO anomalies are interpreted to be favourable targets for platinum group metals, orogenic lode gold and intrusion related copper-zinc mineralization.

- Anomalies identified with geology similar to economic gold mineralization at the nearby Nalunaq gold mine (circa 340,000 ounces of gold produced to date).

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On 26 May 2016 the Company announced that it had elected to earn into the Amitsoq project and had agreed a variation to the terms of its earn in, such that Alba will earn an initial 49 per cent interest in the Project through the issue of £100,000 of Alba shares to Artemis (calculated at a 20 trading day volume-weighted average price) and by funding a minimum of a further DKK 1,476,740 (approximately £146,000) of exploration costs on the Project by 31 December 2016.

Limerick Basin Project - Ireland

The exploration licence in the Limerick Basin is highly prospective for zinc, lead gold and silver and is only 10 km away from and part of the same target unit as the Pallas Green zinc discovery. On 28 April 2016 an application to renew this licence was made. Following the grant of the renewal (see "Post Period End", below), the Company will initially undertake a geophysical survey, either Gravity or Induced Polarisation or both, to help better understand the structural elements of the licence area that may be controlling the known sulphide mineralisation that is present within the licence boundaries.

El Mreiti Project - Mauritania

An application has been submitted to the Mauritanian Authorities to take out a new licence over a reduced area within the original licence area, which includes the centre of the previously discovered and announced high-tenor uranium anomalies. Alba and its joint venture partner will then consider their options with regards to funding the next stage of exploration. The continued development of the Mauritania exploration activities is dependent on the grant of the new licence. An emphasis of matter has been included in the auditor's report on this point which can be found in the annual report for the year ended 30 November 2015.

Other Development Projects

Alba continues to review and discuss other project or investment opportunities, which have been brought to us by the Board, management, advisers or other contacts that may have value-enhancing potential.

Horse Hill

On 5 July 2016 the Company announced that the OGA had granted a licence conversion to new model terms for Horse Hill PEDL137 and PEDL246. At the election of the Operator, HHDL, the licences will adopt 2016 14th Round licence terms permitting the Horse Hill licences to continue without further relinquishment. A Retention Area ("RA") covering the entire 55 square mile licence area and an outline work programme has been agreed with the OGA. The RA will continue throughout the agreed work programme period currently due to expire on June 30, 2018 for PEDL137 and June 30, 2017 for PEDL246. The Horse Hill licences forward work plan includes long-term production testing of three Kimmeridge Limestone zones plus the overlying Portland, two contingent appraisal/development wells and 3D seismic.

On 19 July 2016 the Company announced that a new petrophysical analysis by Nutech, incorporating the findings of the successful Horse Hill-1 ("HH-1") flow test, demonstrates a threefold increase in calculated total oil in place (OIP) per square mile at the HH-1 well within the Upper Portland pay zone. As reported in May 2015, a total Horse Hill Portland P50 OIP of 21 Million Barrels ("MMbbl") was calculated utilising Nutech's petrophysical analyses. Nutech's May 2015 evaluation assigned a Portland OIP value of 7.7 MMbbl per square mile at the HH-1 well. Nutech's current evaluation upgrades the Portland OIP at HH-1 to 22.9 MMbbl per square mile, a 200% increase. As previously stated by the Company, the calculated OIP per square mile should not be construed as recoverable resources, contingent or prospective resources or reserves.

In its announcement on 19 July 2016, the Company also gave an indication of the future plans for the development of the Horse Hill onshore oil field which involve new permitting applications and additional commercial flow testing. The applications will seek permission to conduct a programme consisting of the production flow testing of three Kimmeridge Limestone zones plus the overlying Portland over a total flow period of up to 360 days, plus two further appraisal/development wells and the acquisition of 3D seismic data. Engineering studies to examine the range of possible flow rates from a planned horizontal sidetrack well are ongoing. Data to further calibrate these studies will be acquired during the further planned extended flow tests.

Ireland

On 26 July 2016, Alba announced that it has received confirmation from the Irish Department of Communications, Energy & Natural Resources (Exploration and Mining Division) that the Company's prospecting licence in County Limerick, Ireland (Area No. 3824) has been renewed for a further two years until 26 May 2018, for Base Metals, Gold,Silver and Barytes.

The positive developments in relation to the Horse Hill project over the past several months - most notably the very successful flow test results completed in the first quarter of 2016 - have provided further justification for Alba's decision to invest in the project and to increase its interest successively from an initial 5 per cent to its current 15 per cent interest in HHDL.

Aside from Horse Hill, the Board intends to carry out work programmes in the remainder of 2016 in both Greenland and Ireland. In addition, we continue actively to consider other projects and investment opportunities which may bolster the Company's portfolio of assets and provide further value and interest for our shareholders.

George Frangeskides

1 August 2016

Executive Chairman

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

For further information please visit the Company's website, www.albamineralresources.com, or contact:

UNAUDITED CONSOLIDATED INCOME STATEMENT

FOR THE SIX MONTHS ENDED 31 MAY 2016

UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 31 MAY 2016

UNAUDITED CONSOLIDATED CASH FLOW STATEMENT

FOR THE SIX MONTHS ENDED 31 MAY 2016

NOTES TO THE HALF-YEARLY FINANCIAL INFORMATION

1. Basis of preparation

The Group consolidates the financial statements of the Company and its subsidiary undertakings.

The financial information has been prepared under the historical cost convention in accordance with International Financial Reporting Standards ("IFRS"), International Accountant Standards ("IAS") and IFRS Interpretations Committee ("IFRIC") interpretations as adopted by the European Union. The financial information set out in this half-yearly report does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. The same accounting policies, presentation and methods of computation are followed in this interim condensed consolidated report as were applied in the Group's annual financial statements for the year ended 30 November 2015. The auditor's report on those financial statements was unqualified and did not contain any statements under section 498(2) or section 498(3) of the Companies Act 2006. The auditor's report for the year ended 30 November 2015 did include emphasis of matter paragraphs relating to the uncertainty as to whether the Group can raise sufficient funds to continue to develop the Group's exploration assets.

2. Taxation

No charge for corporation tax for the period has been made due to the expected tax losses available.

3. Loss per share

Basic loss per share is calculated by dividing the loss attributable to ordinary shareholders of £198,803 (May 2015: £232,118; November 2015: £291,564) by the weighted average number of shares of 742,971,557 (May 2015: 542,338,783; November 2015: 692,258,595) in issue during the period. The diluted loss per share calculation is identical to that used for basic loss per share as the exercise of warrants would have the effect of reducing the loss per ordinary share and therefore is not dilutive under the terms of Financial Reporting Standard 22 "Earnings Per Share".