Baker Steel Regulatory News (BSRT)

At 28 September 2012

Price / Index Level

% Change in Quarter

% Change in Year

% Change from Inception

Net Asset Value (pence/share)

102.6

-10.7%

-21.9%

+2.6%*

Diluted Net Asset Value (pence/share)

102.2

-9.2%

-19.0%

n/a

Ordinary Share Price (pence/share)

87.5

-6.4%

+13.3%

-12.5%**

Subscription Share Price (pence/share)

12.5

-3.8%

-30.6%

n/a

MSCI ACWI Index

331.58

+6.2%

+10.7%

+7.6%%†

HSBC Global Mining Index (Sterling)

689.58

+3.9%

-7.3%

-18.9%†

CRB Index

309.3

+8.8%

+1.3%

+13.2%†

Chinese Domestic Iron Ore - Hebei/Tangshan (US$/t)

153.00

-13.1%

-18.2%

-20.3%†

Copper (US$/t)

8211.50

+6.8%

+8.2%

+10.2%†

Gold (US$/oz)

1772.10

+10.9%

+13.3%

+51.7%†

Review

At the end of September 2012, Baker Steel Resources Trust Limited ("BSRT" or "the Company") was fully invested. During the quarter there have been no significant changes to the Company's portfolio as it was fully invested at the end of June 2012 and there were no realisations during the period.

Following a weak first half of 2012, markets for mining equities stabilised during the third quarter of 2012, with the HSBC Global Mining Index rising 3.9%. The performance of commodities themselves was mixed with the prices of the steel minerals, iron ore and coking coal weakening over fears of a slowdown in Chinese growth. Conversely the prices for precious metals and copper have remained strong albeit volatile.

During the quarter the net asset value of the Company fell 10.7%. This fall was largely due to decisions to decrease the carrying values of Gobi Coal & Energy Limited ("Gobi") and Ferrous Resources Limited ("Ferrous") as well as falls in the share prices of certain of the listed stocks in the portfolio, particularly China Polymetallic Mining Limited. The decision to cut the carrying value of Gobi, which reduced overall NAV by 5.3%, was made following a fall in coking coal prices and a consequent postponement of its proposed IPO.

In August 2012, Copperbelt Minerals signed a conditional Settlement Agreement with its joint venture partner Gécamines whereby Copperbelt will exit its joint venture in the Democratic Republic of Congo for deferred compensation. Since then good progress appears to have been made on satisfying the numerous conditions precedent for completion of the transaction, which is expected to close before the year end.

Outlook

At the beginning of October 2012, Ivanplats Limited launched its roadshow to raise approximately C$300 million from an IPO on the Toronto Stock Exchange. Final pricing is expected during the week commencing 15 October 2012 with the IPO anticipated to close the following week. Based on the range indicated by Ivanplats' brokers, the Net Asset Value of the Company would rise between approximately 9% and 17%. As the Company will be subject to a lock-up on its shareholding, the Board may apply a discount in assessing the Company's carrying value of Ivanplats following the IPO.

The Ivanplats IPO will not only be an important milestone for the Company, as its largest investment (31.3% NAV), but could also be a significant indicator for the state of the IPO market in general and therefore the prospects for other IPO's within the Company's portfolio companies.

Investment Objective

To seek capital growth over the long term through a focused global portfolio consisting principally of the equities, or related instruments, of natural resources companies.

Investment Strategy

Investing predominantly in attractively valued private companies with strong development projects and focused management and also in listed securities to exploit value inherent in market inefficiencies.

Asset Allocation

Unlisted Equities £ 65.0 M 95.8 %

Listed Equities £ 5.4 M 7.9 %

Net Cash & £ -2.5 M -3.7 %

Equivalents

Net Assets £67.9 M

Gearing: -3.7%

Shares in Issue

Trading: The London Stock Exchange Ordinary: 66,142,533

Code: BSRT

ISIN GG00B6686L20

Subscription: 13,085,150

Code: BSRW

ISIN GG00B64WLC23

Financial Calendar

Year End: 31 December

Interims: August

Finals: April

The final date to subscribe for Subscription Shares is 2 April 2013

Top 10 Investments (at 28 September 2012)

Ivanplats Limited 31.3% NAV

A private company with major copper and zinc projects in the Democratic Republic of Congo and a platinum/nickel project in South Africa.

Gobi Coal & Energy Limited 19.4% NAV

A private company with three coking coal projects in Mongolia.

Ironstone Resources Limited 8.9% NAV

A private company with an iron ore/vanadium project in Canada.

China Polymetallic Mining Limited 8.2% NAV

A company listed on the Hong Kong Stock Exchange with a producing silver/lead/zinc mine and other development opportunities in China.

Black Pearl Limited Partnership 7.0% NAV

Black Pearl is the private vehicle through which the investment in the Black Pearl beach placer iron sands project in West Java, Indonesia is held.

Ferrous Resources Limited 6.5% NAV

A private company with five iron ore projects in Brazil.

Bilboes Gold Limited 5.9% NAV

A private company with four previously producing gold mines in Zimbabwe.

Polar Silver Resources Limited 5.4% NAV

A private company which holds a 50% interest in a silver project in Russia.

Metals Exploration plc 4.1% NAV

A company listed on the AIM market of the London Stock Exchange with a gold project in the Philippines.

South American Ferro Metals Limited 2.5% NAV

A company listed on the Australian Stock Exchange with a producing iron ore mine in Brazil.

The remainder of the Portfolio (excluding cash) comprises seven holdings totalling 4.5% NAV.

Further information is available on BSRT's website: www.bakersteelresourcestrust.com

Investment Manager

Baker Steel Capital Managers LLP

Investment Advisers

AWR Lloyd Capital Ltd

Rock Capital Partners Ltd

Management Fees

Monthly: 1/12 of 1.75% of

Market Capitalisation

Performance: 15% of NAV growth (if over 8% p.a. compound hurdle rate, with high watermark)

Board

Howard Myles (Chairman)

Ed Flood

Charles Hansard

Clive Newall

Chris Sherwell

Joint Brokers

RBC Capital Markets

+44(0)20 7653 4253

Winterflood Investment Trusts

+44(0)20 3100 0000

Contact:

Baker Steel Capital Managers LLP

86 Jermyn Street,

London SW1Y 6JD

+44 (0) 20 7389 8237

enquiries@bakersteelresourcestrust.com

Baker Steel Resources Trust Limited is incorporated in Guernsey

Registration Number: 51576

Arnold House, St Julian's Avenue,

St Peter Port, Guernsey

Important Information

This document is issued by Baker Steel Capital Managers LLP (a Limited Liability Partnership registered in England No OC301191 and authorised and regulated by the Financial Services Authority). The information contained in this document is not intended to and does not constitute an offer, solicitation, inducement, invitation or commitment to purchase, subscribe to, provide or sell any securities, service or product or to provide any recommendations which should be relied upon for financial, securities, investment or other advice or to take any decision based on such information. Individual advice should be sought from legal, financial, personal and other advisors before making any investment or financial decision or purchasing any financial, securities or investment-related service or product. As a registered collective investment scheme, shares in Baker Steel Resources Trust Ltd are not permitted to be directly offered to the public in Guernsey but may be offered to regulated entities in Guernsey or offered to the public by entities appropriately licensed under the Protection of Investors (Bailiwick of Guernsey) Law 1987 as amended.

The Net Asset Value ("NAV") figures stated are based on unaudited estimated valuations of the underlying investments and not necessarily based on observable inputs. Such estimates are not subject to any independent verification or other due diligence and may not comply with generally accepted accounting practices or other generally accepted valuation principles. In addition, some estimated valuations are based on the latest available information which may relate to some time before the date set out above. Accordingly, no reliance should be placed on such estimated valuations and they should only be taken as an indicative guide. Other risk factors which may be relevant to the NAV figures are set out in the Company's Prospectus dated 31 March 2010.