Amur Minerals Regulatory News (AMC)

28 September 2011

AMUR MINERALS CORPORATION

(AIM: AMC)

RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2011

(Amounts in US Dollars unless otherwise stated)

Amur Minerals Corporation ("Amur" or the "Company"), a nickel-copper sulphide mineral exploration and resource development company focused on far east Russia, announces its Interim results for the half year ended 30 June 2010. Progress has been made in three main areas; reconnaissance exploration at the Kun-Manie nickel copper sulphide project; increased cash reserves; and in advancing our application for the mining licence at Kun-Manie.

Highlights:

·; Reconnaissance exploration commenced in June to identify 2012 drill targets

·; Substantial potential remains within the licence area to expand the resources and potentially improve the projected economics of the project

·; Engineering work initiated allowing the Company to advance the project toward production

·; Cash and cash equivalents increased to US$5.067 million from US$3.066 million during the six month period

·; Company is debt free

Post period:

·; Additional US$1.2 million VAT refund obtained

Robin Young, CEO of Amur Minerals, commented:

"In the 6 month period we have significantly improved the financial position of the Company and we are working with the Russian authorities to amend both the Mining Law and to advance the mining application.

"At Kun-Manie we are confident that the resources within the licence area can be increased significantly and we have commenced engineering work as we look to production. The initial sample results from this season's work have been received and we will announce these shortly.

"We continue to advance what we believe to be a major nickel project."

Enquiries:

Chairman's Statement

Dear Shareholder,

I am pleased to have this opportunity to update Amur Minerals Corporation shareholders on the Company's progress over the first six months of 2011. Broadly, progress has been made in three areas; reconnaissance exploration at our Kun-Manie nickel copper sulphide project was resumed in mid June, we have also substantially increased our cash reserve during the first half of the year and we continue to work with various Russian Federation officials and agencies in advancing our application for the mining licence at Kun-Manie. In greater detail, the following key accomplishments are noted below:

·; Resupply of our base camp and the Kun-Manie project site were completed using the winter ice roads during February and March. The advance team that was mobilised to site immediately undertook rehabilitation, refurbishment and repair of the site facilities whilst awaiting arrival of the exploration crew to arrive in mid June.

·; The reconnaissance exploration work began during the final days of June. The primary objectives are to identify drill targets for 2012. This includes geological mapping, grab and soil sampling, trenching with channel sampling and geophysical surveys within the limits of the proposed mining licence and areas nearby.

·; During Q1 of 2011, the Company and Lanstead agreed to close the July and October 2010 Lanstead placings by settling the remaining payments on an accelerated basis which resulted in a substantial increase in cash reserves. Value Added Tax (VAT) refunds from the Russian Federation were also obtained during the six months and, together with the Lanstead settlements, this resulted in cash and cash equivalents being increased to a total of US$5.067 million from US$3.066 million during the six month period.

·; In a post period end transaction, an additional US$1.2 million VAT refund was also obtained addition to the cash balance reported above.

·; Current liabilities remain low at US$159,000 and the Company is debt free.

·; Combined Total Liabilities and Equity increased from US$21.665 million to US$24.288 million.

·; The Company has continued to work with the Mining Advisory Council in submission of amendments to the Strategic Law which could ultimately result in the threshold of nickel reserves necessary to determine a 'strategic deposit' being increased to two million tonnes of nickel. Presently the limit used to define a strategic deposit containing nickel is the presence of any amount of certified reserve of nickel and if defined as such, the Company may have undertake the formation of a joint venture with a Russian partner.

·; Executive staff have been working with the Amur Oblast authorities and members of the Duma who have been lobbying the Federal agencies to grant the mining licence. In addition, frequent contact with the Ministry of Economics has been maintained to ensure that all information required by the agency is available ensuring that the agency can complete its report to Rosnedra (the agency responsible for granting the mining licence).

Debt Free and Cash Position

The Company remained debt free and was able to increase its cash reserves from US$3.1 million to US$5.1 million during the first half of the year. This was accomplished by completion of the following:

·; The primary source of additional funds was attained by the acceleration and closure of the Lanstead LLP financing originally placed in July and October 2010. At the beginning of 2011, 18 monthly unexercised settlements remained. The Company in agreement with Lanstead undertook an accelerated programme to exercise the settlements at market prices which were at a substantially higher share price than defined at the placing. The average monthly payment for the 18 settlements was approximately £95,000 which was more than £45,000 higher than contemplated in the original placing. Globally, this meant the Company more than doubled the actual cash paid above that planned from approximately £890,000 to over £2.0 million. Also of importance was the fact that we were able to accumulate the cash in a matter of weeks rather than over the course of 18 months.

·; Secondly, refunds of Russian Value Added Tax (VAT) to our ZAO Kun-Manie subsidiary also increased the cash reserve. The amount of the VAT refund during the period was in the order of US$223,000.

·; Looking to the longer term cash requirements over the next 12 to 24 months, Amur entered into a second placing with Lanstead in the amount of £2.5 million. The placing was similarly structured to that of the June 2010 placing and included 24 settlement payments to be executed over a two year period. The projected monthly income to Amur for each settlement is approximately £104,000 based on a projected share price of 13.33 pence. The placing was done at 10 pence per share. The first settlement was completed in early June of this year, just before the period end.

·; The acceleration of the July and October 2010 Lanstead LLP placings, the VAT refunds and the funds received from the first settlement of the second Lanstead placing have resulted in an increase in available cash and cash equivalents by approximately US$2.0 million from US$3.1 million to US$5.1 million during the six month period. This represented an increase of nearly 65% in cash while simultaneously funding the Group's operational costs.

·; Not included in the US$5.1 million cash balance at the end of the six month period and occurring as a post period end event, a large VAT refund in the amount of US$1.2 million for outstanding amounts from 2006 through part of 2008 was received. At the close of July 2011, the Company cash position was nearly US$6.2 million.

Exploration

During the first half of 2011, the Company initiated its 2011 exploration season by the construction of a 300 kilometre long winter ice road during February. In February and March, the site was fully restocked with fuel, spare parts, food stuffs, and additional supplies. An advance team specialised in maintenance and repairs moved to the site and initiated work on the various camps located throughout the licence area.

The advance crews were joined in mid June when the geological crews arrived and began the reconnaissance exploration work planned for 2011. The primary 2011 objective of the exploration programme is drill target delineation for an extensive drill programme planned for the summer field season of 2012. The field work consists of geological mapping, geochemical sampling, soil sampling, geophysical surveys, trenching and road building. Samples collected on site are initially prepared at the camp and are flown out via helicopter once a month for delivery to our base camp along the Baikal Amur Rail system for shipment to Moscow and subsequent analysis. The comprehensive turnaround time from sample collection at the outcrop to final analytical results ranges from 8 to 12 weeks. Presently, the first partial batch of analytical results has just been received and an announcement will be made when the results are verified.

Concurrent with the exploration work ongoing engineering work has also been initiated allowing the Company to advance the project toward production as well as the identification of alternatives which could result in the reduction of the previously projected capital cost estimates as compiled by SRK Consulting. Specific focus is also being given to the metallurgical response of the defined nickel copper ores to assist in a more definitive process design. Optimisation studies are also being assessed to determine the potential impact on cash flow projections related to Kun-Manie.

Mining Licence

Rosnedra is responsible for the issuance of the mining licence. The process requires reviews and reports to be issued from the Ministry of Defence (MOD), Anti-Monopoly Board (FAS), State Security (FSB) and the Ministry of Economic Development (MED). All but MED have completed their obligations and reports have been forwarded by three of the agencies to Rosnedra.

The executives of Amur, its legal counsel in Moscow, Duma members, and key administrative officials of Amur Oblast have all been working together to encourage MED to complete its assigned task. Communications with MED within the last month confirm that they have all the necessary information from the Company to undertake its work obligation as related to the mining licence application for Kun-Manie. Discussions with MED and affiliated State sanctioned groups indicate that work on the pricing efforts is in progress. No delivery date for the final report has been provided.

In summary, the Company continues to conduct exploration on the Kun-Manie licence with visual results indicating that substantial potential remains within the licence area to expand the resources and potentially improve the projected economics of the project. Work continues to refine the project design and to optimise various areas such as mine production, scheduling, metallurgical recoveries and the possible consideration in the addition of a smelter. Over the course of the last six months, the cash position of the Company has been significantly improved. The Board remains confident that we shall ultimately obtain the mining licence at Kun-Manie.

Robert W. Schafer

Chairman

28 September 2011

Independent Review Report

To the shareholders of Amur Minerals Corporation

Introduction

We have been engaged by the company to review the financial statements in the half-yearly financial report for the six months ended 30 June 2011 which comprises the Consolidated Statement of Financial Position, Consolidated Statement of Comprehensive Income, Consolidated Statement of Cash Flows, Consolidated Statement of Changes in Equity and related notes.

We have read the other information contained in the half-yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the financial statements.

Directors' responsibilities

The interim report, including the financial information contained therein, is the responsibility of and has been approved by the directors. The directors are responsible for preparing the interim report in accordance with the rules of the London Stock Exchange for companies trading securities on the Alternative Investment Market which require that the half-yearly report be presented and prepared in a form consistent with that which will be adopted in the company's annual accounts having regard to the accounting standards applicable to such annual accounts.

Our responsibility

Our responsibility is to express to the company a conclusion on the financial statements in the half-yearly financial report based on our review.

Our report has been prepared in accordance with the terms of our engagement to assist the company in meeting the requirements of the rules of the London Stock Exchange for companies trading securities on the Alternative Investment Market and for no other purpose. No person is entitled to rely on this report unless such a person is a person entitled to rely upon this report by virtue of and for the purpose of our terms of engagement or has been expressly authorised to do so by our prior written consent. Save as above, we do not accept responsibility for this report to any other person or for any other purpose and we hereby expressly disclaim any and all such liability.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, ''Review of Interim Financial Information Performed by the Independent Auditor of the Entity'', issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the financial statements in the half-yearly financial report for the six months ended 30 June 2011 is not prepared, in all material respects, in accordance with the rules of the London Stock Exchange for companies trading securities on the Alternative Investment Market.

Emphasis of matter - going concern

In forming our review conclusion, which is not qualified, we have considered the adequacy of the disclosures made in note 3 to the financial statements concerning the Group's ability to continue as a going concern which is dependent on raising further funds through new debt, equity or sale of assets of the Group. The Group cash flow forecasts show that the Group requires additional funds before October 2012. While the directors are continuing funding negotiations with certain 3rd parties there are currently no binding agreements in place. The directors believe that the Group will secure the necessary funds. These conditions together with the other matters referred to in note 3 indicate the existence of a material uncertainty which may cast significant doubt over the Group's ability to continue as a going concern. These consolidated financial statements do not include any adjustments that would result if the group was unable to continue as a going concern.

BDO LLP

Chartered Accountants and Registered Auditors

London,

United Kingdom

BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).

1. Reporting Entity

Amur Minerals Corporation (the "Company") is a company domiciled in the British Virgin Islands. The consolidated interim financial statements as at and for the six months ended 30 June 2011 comprise the Company and its subsidiaries (together referred to as the "Group").

The consolidated financial statements of the Group as at and for the year ended 31 December 2010 are available upon request from the Company's registered office at Kingston Chambers, P.O. Box 173, Road Town, Tortola, British Virgin Islands, from offices of RBC Europe Limited, Riverbank House, 2 Swan Lane London EC4R 3BF or at www.amurminerals.com.

2. BASIS OF PREPARATION

The financial information set out in this report is based on the consolidated financial statements of Amur Minerals Corporation and its subsidiary companies (together referred to as the 'Group'). The accounts of the Group for the 6 months ended 30 June 2011 were approved and authorised for issue by the Board on 28 September 2011. The interim results have not been audited, but were the subject to an independent review carried out by the Company's auditors, BDO LLP. Such unaudited results do not constitute statutory accounts of the Company or the Group. These accounts have been prepared in accordance with the accounting policies that are expected to be applied in the Report and Accounts of Amur Minerals Corporation for the year ended 31 December 2011 and are consistent with IFRS as adopted by European Union. The auditor's report on the group accounts to 31 December 2010 was unqualified, but did include an emphasis of matter on going concern. The comparative information for the full year ended 31 December 2010 is not the Group's full annual accounts for that period but has been derived from the annual financial statements for that period. 

The consolidated financial statements incorporate the results of Amur Minerals Corporation and its subsidiaries undertakings as at 30 June 2011, using the acquisition method of accounting as appropriate. The corresponding amounts are for the year ended 31 December 2010 and for the 6 month period ended 30 June 2010.

The Group financial information is presented in US dollars ('US$') and values are rounded to the nearest thousand dollars.

3. GOING CONCERN 

In the absence of production revenues, the Group is currently dependent upon its existing financial resources which comprises cash and derivative financial asset (note 7), and its ability to raise additional finance through share placings to satisfy its obligations and fully finance its exploration and evaluation programme for Kun-Manie. Failure to meet these exploration and evaluation commitments could put the related licence interest at risk of forfeiture.

The Group currently has sufficient funding to finance its activity through to October 2012. The Directors are currently in negotiations with a number of parties in respect of raising further funds to continue with the exploration work programme. Whilst progress is being made on a number of potential transactions which would provide additional finance for the Group, progress needs to be made to ensure the expenditure commitments on the asset interests the Group retains can be met with its available funding in order to secure the Group's future. There are currently no binding agreements in place which will provide additional finance.

These conditions indicate the existence of a material uncertainty which may cast significant doubt over the group's ability to continue as a going concern. Based on the current progress of the negotiations with potential providers of finance and discussions with potential investors the Directors believe that the necessary funds to provide adequate financing for continued exploration work will be raised as required and accordingly they are confident that the Group will continue as a going concern and have prepared the financial statements on that basis.

The financial statements do not include the adjustments that would result if the Group was not able to continue as a going concern.

4. LOSS PER SHARE

Basic and fully diluted loss per share are calculated and set out below. The effects of warrants and share options outstanding at the period ends are anti-dilutive and have therefore been excluded from the following calculations.

The Group had no dilutive potential ordinary shares in either period that would serve to increase the loss per ordinary share. There is therefore no difference between the basic and diluted loss per share for either period. A total of 13,847,000 (2010: 10,291,456) potential ordinary shares have therefore been excluded from the above calculations.

5. FORWARD LOOKING STATEMENTS

This report contains certain forward looking statements, which include assumptions with respect to future plans, results and capital expenditures. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. All such forward looking statements involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control. Please refer to the Company's Admission Document available from the Company's web site for a list of risk factors. The Company's actual results could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits the Company will derive therefrom. All subsequent forward-looking statements, whether written or oral, attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Furthermore, the forward-looking statements contained in this report are made as at the date of this report.

6. INTERIM REPORT

Copies of this interim report for the six months ended 30 June 2011 will be available from the company's website www.amurminerals.com.