ARMS.L Regulatory News (ARMS)

17 May 2014

For Immediate Release

Asia Resource Minerals plc ("ARMS" or the "Company")

Statement Regarding Demerger Proposal

On 6 May 2014, ARMS announced that a number of the Company's major shareholders had indicated a clear wish for a dividend in specie of the Company's shares in PT Berau and that the Board was actively soliciting shareholders views on this matter to establish whether such a plan could gain broad shareholder acceptance.

In addition, as part of the Separation transaction, the Board committed to return at least US$400m of cash to shareholders via a B-share scheme.

Following this solicitation process, the Board does not believe that there is consensus among the Company's shareholders sufficient to allow a dividend in specie of the Company's PT Berau shares to be carried out at this time. However, a very significant number of shareholders indicated a desire for a cash distribution to take place as soon as possible. As a result, the Board intends to focus on implementing the cash distribution and does not intend to proceed with the dividend in specie at the present time. The Board intends to continue its discussions with shareholders in relation to alternative strategic options for the Company following the cash distribution.

The Board therefore intends to propose a B-share scheme to the Company's shareholders to return US$465 million, which after shareholder consultation and the Board's due consideration, the Board deems to be the appropriate level of cash distribution. The Board will also proceed with seeking shareholder approval of the Company's proposed relationship agreement with Nathaniel Rothschild.

As announced on 6 May, Mr Bob Kamandanu and Dr Wallace King have been proposed as INEDs. They have not yet been appointed to the Board of ARMS, but discussions are at an advanced stage and they may be appointed shortly.

It is intended that a circular be sent to shareholders in short order to hold a general meeting to approve the B-share scheme on 27 June, being the same day on which the Company will hold its 2014 Annual General Meeting.

- ENDS-

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