APF.L Regulatory News (APF)

News Release

July 31, 2017

Anglo Pacific Group PLC

Notice of 2017 Interim Results and Q2 2017 Trading Update

Anglo Pacific Group PLC ("Anglo Pacific", the "Company" or the "Group") (LSE: APF, TSX: APY), the London and Toronto listed royalty company, is pleased to announce that its interim results for the six months ended June 30, 2017 will be released on August 23, 2017.

Anglo Pacific also issues the following trading update for the period April 1, 2017 to July 31, 2017. Unless otherwise stated, all unaudited financial information is for the quarter ended June 30, 2017.

H1 2017 Highlights

§ Free cash flow of £18.5-19.0m generated in H1 2017 (H1 2016: £4.7m) which includes the £3.1-3.4m received as part of the Denison financing arrangement (£1.7m of which related to H2 2016)

§ ~290% increase in royalty income to £15.9-16.3m in H1 2017 compared to the equivalent 2016 period (H1 2016: £4.1m; FY 2016: £19.7m)

§ Increase in royalty income mostly attributable to ~88% of sales from Kestrel within the Group's private royalty land compared to 38% in H1 2016, along with a ~10% increase in total sales volumes

§ Significant milestone achieved at Kestrel in Q2 2017 with a royalty paid on ~95% of sales which we expect to remain around these levels for the foreseeable future

§ Fair value decline of £10.5-11.5m in relation to Kestrel, largely as a result of resource depletion

§ Net debt of £0.8m at June 30, 2017 (December 31, 2016: £1.0m) including repayment, within six months, of the C$12.75m drawn as part of the Denison finance arrangement

§ Cash generated in July resulted in the Group returning to a net cash position

§ New dividend schedule with intention to pay quarterly instalments in even tranches, although the fourth quarter dividend may be adjusted to reflect the actual level of income earned during the year

Julian Treger, Chief Executive Officer of the Company, commented:

"We are encouraged by the level of royalty income received in the first half of the year, and expect this trend to continue into the second half now that we anticipate being paid a royalty on almost all sales by Rio Tinto at Kestrel. Royalty income for 2017 is already ~80% of that reported for 2016 as a whole.

However on the flip side of such strong revenue from Kestrel is that it will impact on the valuation of the asset through resource depletion.

"The level of cash generated during the first six months is also pleasing, and is already ahead of that generated in 2016 as a whole. This will allow us to repay in full the amount of borrowings drawn as part of our Denison transaction. With spot coking coal prices running higher than we had anticipated so far in Q3 2017, we will review the absolute level of the final dividend as part of our Q4 2017 trading update and will communicate this to the market in February 2018.

"With the full availability of our US$30m revolving credit facility, a recent strengthening of the spot coking coal price, further weakening of the pound against our income currencies and a comfortably covered dividend expected in 2017, we are in a healthy financial position with good liquidity to pursue further royalty acquisitions and provide meaningful returns to our shareholders."

There will be an analyst presentation on the Company's interim results at 9:30am (BST) on August 23, 2017 at the offices of Redleaf Communications. To register your attendance or for further information, please contact Redleaf Communications on +44 (0) 20 7382 4746 or by emailing anglopacific@redleafpr.com.

For further information:

Notes to Editors

About Anglo Pacific

Anglo Pacific Group PLC is a global natural resources royalty and streaming company. The Company's strategy is to develop a leading international diversified royalty and streaming company with a portfolio centred on base metals and bulk materials, focusing on accelerating income growth through acquiring royalties on projects that are currently cash flow generating or are expected to be within the next 24 months, as well as investment in earlier stage royalties. It is a continuing policy of the Company to pay a substantial portion of these royalties to shareholders as dividends.

Cautionary statement on forward-looking statements and related information

Certain information contained in this announcement, including any information as to future financial or operating performance and other statements that express management's expectation or estimates of future performance, constitute "forward looking statements". The words "expects", "anticipates", "plans", "believes", "estimates", "seeks", "intends", "targets", "projects", "forecasts", or negative versions thereof and other similar expressions identify forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Further, forward-looking statements are not guarantees of future performance and involve risks and uncertainties which could cause actual results to differ materially from those anticipated, estimated or intended in the forward-looking statements. Furthermore, this announcement contains information and statements that are based on certain estimates and forecasts that have been provided to the Group by Kestrel Coal Pty Ltd ("KCPL"), the accuracy of which KCPL does not warrant and on which readers may not rely. The material assumptions and risks relevant to the forward-looking statements in this announcement include, but are not limited to: stability of the global economy; stability of local government and legislative background; continuing of ongoing operations at the properties underlying the Group's portfolio of royalties in a manner consistent with past practice; accuracy of public statements and disclosures (including feasibility studies and estimates of reserve, resource, production, grades, mine life, and cash cost) made by the owners and operators of such underlying properties; accuracy of the information provided to the Group by the owners and operators of such underlying properties; no material adverse change in the price of the commodities produced from the properties underlying the Group's portfolio of royalties and investments; no material adverse change in foreign exchange exposure; no adverse development in respect of any property in which the Group holds a royalty or other interest, including but not limited to unusual or unexpected geological formations and natural disasters; successful completion of new development projects; planned expansions or additional projects being within the timelines anticipated and at anticipated production levels; and maintenance of mining title. If any such risks actually occur, they could materially adversely affect the Group's business, financial condition or results of operations. For additional information with respect to such risks and uncertainties, please refer to the "Principal Risks and Uncertainties" section of our most recent Annual Report and to the "Risk Factors" section of our most recent Annual Information Form available on www.sedar.com and the Group's website www.anglopacificgroup.com. Readers are cautioned to consider these and other factors, uncertainties and potential events carefully and not to put undue reliance on forward-looking statements. The forward-looking statements contained in this announcement are made as of the date of this announcement only and the Group undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.

Third party information

As a royalty holder, the Group often has limited, if any, access to non-public scientific and technical information in respect of the properties underlying its portfolio of royalties, or such information is subject to confidentiality provisions. As such, in preparing this announcement, the Group has largely relied upon the public disclosures of the owners and operators of the properties underlying its portfolio of royalties, as available at the date of this announcement.