Alba Mineral Resources Regulatory News (ALBA)

Alba Mineral Resources plc

("Alba" or the "Company")

HALF-YEARLY REPORT

The Board of Directors of Alba Mineral Resources plc (the "Company" or "Alba"), the diversified mineral exploration and development company, is pleased to report the Company's interim results for the six months ended 31 May 2020. They incorporate the results of its subsidiary companies Aurum Mineral Resources Limited ("AMR"), Mauritania Ventures Limited ("MVL"), Obsidian Mining Limited ("OML"), White Eagle Resources Limited ("WERL"), White Fox Resources Limited ("WFRL"), Dragonfire Mining Limited ("DML") and the Gold Mines of Wales group of companies ("GMOW") (together the "Subsidiary Companies", collectively with Alba, the "Group").

CHAIRMAN'S STATEMENT

The six months to 31 May 2020 have seen the Company have to tackle the significant challenges resulting from the global Coronavirus pandemic. Despite this, we have continued to make material progress across our project portfolio.

1. REVIEW OF ACTIVITIES

As we entered 2020, the stated focus of our work activities for 2020 was to be the Clogau Gold Mine and the Amitsoq Graphite Project. At Clogau, our plan was to undertake a surface trenching programme across a selection of the 10 new gold targets identified from our regional-scale soil sampling programme over the Dolgellau Gold Belt. At Amitsoq, our plan was to complete a drilling programme this summer, which we hoped would enable us to declare a maiden JORC-compliant resource there.

Unfortunately, these plans had to be put on hold once the severity of the global public health emergency became apparent. As we reported to the market at the time of the release of our final results on 31 March 2020, these events placed considerable doubt on our ability to execute the planned field activities in both Wales and Greenland. As it turns out, our fears proved correct as the general lockdowns in the UK and Greenland made it practically impossible for us to send personnel and equipment to site.

However, our technical team put the enforced downtime imposed from the end of March through to July 2020 to very good use, using that time to develop and refine our plans for carrying out a programme of underground drilling and bulk sampling at the Clogau Gold Mine and to seek all the necessary regulatory consents for this work to proceed. As a result, earlier this month we were able to report that the planning authority for the Clogau-St David's Gold Mine (the "Mine") had confirmed that Alba's planned underground bulk sampling and drilling programme could proceed by way of permitted development. We expect to be able to mobilise the drilling and bulk sampling teams to site shortly, for an early September start date.

The next phase of work at Clogau is genuinely exciting and represents the first concerted underground exploration campaign at the Mine for several decades. Through this work, we hope to be able to identify new, and as yet unexploited, gold zones within or adjacent to the existing mine workings which will support a decision to re-open the Mine for commercial production.

With the gold price recently at record highs, it is certainly not a bad time to be focused on the restart of production at a gold mine.

As for our other projects, while COVID-19 put paid to our plans to drill a JORC resource at Amitsoq, we have also used the time wisely in relation to Greenland. We will complete the next phase of metallurgical test work in relation to our high-grade Amitsoq graphite, and we have also appointed highly reputable industry consultants Golder & Associates to undertake a detailed conceptual study on our Melville Bay Iron Ore Project. While we had always planned this as the next work phase for the project, with iron ore prices currently at a six-year high the case for commissioning an evaluation of the economic potential of undertaking mining operations at Melville Bay becomes that much more compelling. This will be the most important work undertaken at Melville Bay since the drilling and declaration of a maiden JORC resource back in 2011-2012.

In relation to our investment in the Horse Hill Oil Field, in March 2020 we announced that the Oil and Gas Authority had approved the Horse Hill Field Development Plan and consented to the start of long-term production from the field. After the reporting period, the operator of the Horse Hill Oil Field (the "Operator") announced that it was reviewing the options for the future use of the Horse Hill-2z Well ("HH-2z"), including stimulation to return it to long-term oil production, side-tracking the well to a different subsurface location or converting it into a water re-injection well to reduce future operating costs. At the same time, the Operator confirmed its intention to reperforate the Horse Hill-1 Well ("HH-1") with a view to improving the rate of production. At the time of writing, we await confirmation of the likely timelines for these well interventions.

2. CORPORATE

In February 2020, we announced that we had entered into a convertible securities issuance deed (the "Agreement") with a U.S.-based institutional investment fund managed by Bergen Asset Management, LLC ("Bergen") to provide up to £1,054,500 of funding in the form of the issuance by the Company of a series of unsecured zero coupon convertible securities. In early March, we announced that we had issued the first convertible security to Bergen, with a nominal value of £223,000 (the "First Convertible Security").

Bergen converted the First Convertible Security into Alba shares in tranches commencing in April 2020, with the final tranche being converted in August 2020.

Earlier this month, we announced that we had raised £450,000 (before expenses) in a share placing at a price of 0.065 pence per ordinary share, with one share warrant also being issued for every two shares subscribed for at an exercise price of 0.13p per share and an expiration date of 24 months from the date of issue. This share placing was completed so that we could accelerate our work activities at Clogau following the partial lifting of Coronavirus restrictions.

3. RESULTS

The Group made a loss attributable to equity holders of the parent for the period, after taxation, of £303,788 (2019: £375,970). The basic and diluted loss per share was 0.008p (2019: 0.012p).

4. OUTLOOK

Despite the considerable amount of field time lost to the Coronavirus lockdown, we are now in position to be able to execute one of the most significant underground work programmes seen at the Clogau-St David's Gold Mine for several decades.

Our other mining projects also remain on a sound footing, with JORC resources at both Thule Black Sands and Melville Bay, and renewed plans to drill a maiden JORC resource at Amitsoq in 2021. And assuming the plans to improve productivity at the two existing Horse Hill oil wells bear fruit, our investment in that asset will also begin to take on a much healthier hue, notwithstanding the recent downturn in the oil price.

In short, Alba remains in a strong position to generate real and sustained growth across the Company's portfolio of assets and investments.

On behalf of the entire Board, I would like to take this opportunity to thank our shareholders for all their messages of support during what have certainly been challenging and unprecedented times.

George Frangeskides

27 August 2020

Executive Chairman

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

Forward Looking Statements

This announcement contains forward-looking statements relating to expected or anticipated future events and anticipated results that are forward-looking in nature and, as a result, are subject to certain risks and uncertainties, such as general economic, market and business conditions, competition for qualified staff, the regulatory process and actions, technical issues, new legislation, uncertainties resulting from potential delays or changes in plans, uncertainties resulting from working in a new political jurisdiction, uncertainties regarding the results of exploration, uncertainties regarding the timing and granting of prospecting rights, uncertainties regarding the Company's ability to execute and implement future plans, and the occurrence of unexpected events. Actual results achieved may vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors.

For further information, please contact:

Alba's Project and Investment Portfolio

UNAUDITED CONSOLIDATED INCOME STATEMENT

FOR THE SIX MONTHS ENDED 31 MAY 2020

UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 31 MAY 2020

UNAUDITED CONSOLIDATED CASH FLOW STATEMENT

FOR THE SIX MONTHS ENDED 31 MAY 2020

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 2019. 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 2019 did include a paragraph on material uncertainty related 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 £303,788 (May 2019: £375,970; November 2019: £1,311,172) by the weighted average number of shares of 3,922,836,878 (May 2019: 3,264,478,658; November 2019: 3,403,506,056) 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".