Bezant Res Regulatory News (BZT)

31 Mar 2009 07:45



Bezant Resources Plc

Interim Results for the six months ended 31 December 2008

Bezant Resources Plc ("Bezant" or the "Company"), the AIM listed gold and copper exploration and development company operating in the Philippines and Tanzania, today announces its interim results for the six months ended 31 December 2008.

Highlights: 

• •

Cash Resources: £2.5 million cash in bank. Company remains fully funded for completion of its current Philippines and Tanzanian exploration programmes.  Mankayan Copper-Gold Project, Philippines:

• • • • • • •

Independent Inferred Resource estimate at a 0.4 per cent. copper cut-off of approximately 277.7 million tonnes grading at 0.50% copper and 0.42 g/t of gold. Approximately 3.06 billion pounds (1.39 million tonnes) of copper and 3.8 million ounces of gold contained within the Inferred Resource. Exploration Programme near completion with submission of final database to the Snowden Group imminent. Tanzania: Anglo Tanzania Gold Limited, a wholly owned subsidiary of the Company, maintains its 46% interest in the Mkurumu Project, (a subsidiary of AngloGold Ashanti holds a similar 46% interest and Tanzanian locals hold the remaining 8%). The early exploration continues in a package of 9 highly prospective tenements with Prospecting Licences. Corporate: Dr. Evan Kirby appointed as a Non-Executive Director. Matrix Corporate Capital LLP appointed as sole Broker to the Company.

Commenting on the interim results, Gerry Nealon, Executive Chairman, said: 

"Within a two year timeframe we have successfully pursued an extensive drilling programme at the Mankayan project, which has generated defined results to a JORC compliant Inferred Resource. 

The updating of our drilling and geotechnical database is near completion and submission for final independent verification from the Snowden Group.

In the coming Quarter, we look to update areas within the current Inferred Resource to that of Indicated Resource status, as well as developing the encouraging higher grade zone within the deposit. In addition, the Board aims to capitalise on its area of expertise, seeking further attractive opportunities for potential expansion into other promising tenements and exploration licence areas within Tanzania."

For further information, please contact:

Bezant Resources Plc	Tel: +61 8 9368 1566
Gerry Nealon, Executive Chairman	Mobile: +61 41 754 1873
Bernard Olivier, Executive Director	Mobile : +61 40 894 8182
Strand Partners Limited
James Harris Matthew Chandler	Tel: +44 (0) 20 7409 3494

Alastair Stratton Tel: +44 (0) 20 3206 7000

Matrix Corporate Capital LLP

Media enquiries: 

Threadneedle Communications (UK)	Tel: +44 (0) 20 7653 9855
Laurence Read / Beth Harris	Mobile: +44 (0) 797 995 5923
Email: Laurence.Read@threadneedlepr.co.uk
or visit: http://www.bezantresources.com

Bezant Resources Plc

Chairman's statement

I have pleasure in presenting the Interim Report for Bezant in relation to the six month period ended 31 December 2008.

In the Philippines, site work on our two year drilling and environmental programme for the Mankayan Project is nearing completion. During the reporting period, Snowden Mining Industry Consultants Pty. Limited ("Snowden") confirmed a JORC compliant Inferred Resource at a 0.4 per cent. copper cut-off of approximately 277.7 million tonnes grading at 0.50% copper and 0.42 g/t of gold (serving to support the Company's belief that approximately 3.06 billion pounds (1.39 million tonnes) of copper and 3.8 million ounces of gold are contained within the Inferred Resource). This Inferred Resource was, at the time, limited to information resulting from digitisation of historical data on the Mankayan Project, but also indicated that the deposit is centred on an approximate 900m. x 300-400m. intrusive stock complex. The additional new data acquired from the Company's current drilling programme, also promotes the presence of a localised higher grade zone approximately 300m. long x 200m. wide and 600-900m. deep. It is anticipated that the updated drilling and geotechnical database will be submitted to Snowden during the next Quarter and the status of certain areas to the deposit, including this high grade zone, may well be upgraded to that of an Indicated Resource.

During the period, metallurgical samples representing the various lithologies defined from our diamond drill core were also submitted to AMMTEC Laboratories in Perth. Selective flotation conditions were established and excellent copper recoveries to high-grade copper concentrates were achieved. Gold recovery was acceptable with the gold being distributed between the copper concentrate and a pyrite concentrate, whilst a bulk flotation test to produce a larger sample of copper concentrate shall be finalised and the results available during the next Quarter, thereby serving to complete the current Metallurgical Test Programme. It is anticipated that Snowden's final report on the Mankayan Project shall be completed and announced within the next Quarter.

In Tanzania, the Company maintains its 46 per cent. interest in the "Mkurumu Project", being prospective for gold, with AngloGold Ashanti retaining a similar 46 per cent. interest and the remaining 8 per cent. being held by indigenous Tanzanian locals. Progress continues on our early exploration programme in relation to a package of 9 highly prospective tenements with Prospecting Licenses covering, in aggregate, some 2,116 square kilometres. The Company also has an interest in other Licence areas covering approximately a further 455 square kilometres. As announced in May 2008, the Company owns an initial 30 per cent. interest in these tenements and has the right to progressively earn-in an interest of up to 50 per cent. over a two year period in return for funding towards exploration activities of US$100,000 per quarter (a maximum of US$800,000 in aggregate).

Reflecting expenditure on our ongoing exploration programmes within the Philippines and Tanzania, the Company incurred a loss after tax for the six month period ended 31 December 2008 of approximately £498,000 (2007: loss of £428,000).

In December 2008, Dr. Evan Kirby was appointed as a Non-Executive Director of the Company in order to provide further technical support to Dr. Olivier and Mr. Siapno, while Mr. Mark Burchnall stepped down from the Board to pursue his other work commitments and we wish him well in his future endeavours.

Most recently, the Board was pleased to announce the appointment of Matrix Corporate Capital LLP as sole Broker to the Company and their research coverage on the Company is expected to commence shortly.

I would like to take this opportunity to thank all of our Shareholders for their continuing support and look forward to reporting further progress throughout the remainder of 2009.

Gerard Nealon 

Executive Chairman

30 March 2009

Interim Financial Information of Bezant Resources Plc 

The following interim financial information of Bezant Resources Plc is for the period from 1 July 2008 to 31 December 2008. The interim financial information was approved by the Board of Directors on 27 March 2009.

Bezant Resources Plc

Group Income Statement

For the period ended 31 December 2008

	Unaudited Period ended 31 December 2008 £'000			Unaudited Period ended 31 December 2007 £'000			Audited Year ended 30 June 2008 £'000
Continuing operations
Group revenue	-			-			-
Cost of sales	-			-			-
Gross profit/(loss)	-			-			-
Depreciation	(5)			(1)			(4)
Share-based payment expense	(44)			(69)			(136)
Other administrative expenses	(383)			(412)			(950)
Total administrative expenses	(432)			(482)			(1,090)
Impairment expenses	(125)			-			(5,985)
Group operating loss	(557)			(482)			(7,075)
Interest receivable	52			54			180
Other income	7			-			-
Total Income	59			54			180
Loss before taxation	(498)			(428)			(6,895)
Taxation	-			-			-
Loss for the period	(498)			(428)			(6,895)
Attributable to: Equity holders of the Company	(498)			(428)			(6,895)
Loss per share (pence)
Basic & Diluted	(1.27p)			(1.19p)			(18.66p)

Bezant Resources Plc

Group Statement of Changes in Equity

For the period ended 31 December 2008

	Share Capital £'000	Share Premium £'000		Other Reserves £'000		Accumulated Losses £'000		Total  Equity £'000
Unaudited - period ended 31 December 2008
Balance at 1 July 2008	1,016		21,904		165		(12,498)		10,587
Cost of share-based payments	-		-		44		-		44
Current period loss	-		-		-		(498)		(498)
Foreign currency reserve	-		-		99		-		99
Balance at 31 December 2008	1,016		21,904		308		(12,996)		10,232

Unaudited - period ended 31 December 2007
Balance at 1 July 2007	987	10,576	686	(5,603)	6,646
Share issues	25	10,326	-	-	10,351
Share issue costs	-	(414)	-	-	(414)
Reversal of placement funds received in advance	-	-	(665)	-	(665)
Cost of share-based payments	-	-	69	-	69
Current period loss	-	-	-	(428)	(428)
Foreign currency reserve	-	-	46	-	46
Balance at 31 December 2007	1,012	20,488	136	(6,031)	15,605

Audited - year ended 30 June 2008
Balance at 1 July 2007	987	10,576	686	(5,603)	6,646
Share issues	29	11,742	-	-	11,771
Share issue costs	-	(414)	-	-	(414)
Cost of share-based payments	-	-	136	-	136
Reversal of placement funds received in advance	-	-	(665)	-	(665)
Current year loss	-	-	-	(6,895)	(6,895)
Foreign currency reserve	-	-	8	-	8
Balance at 30 June 2008	1,016	21,904	165	(12,498)	10,587

Bezant Resources Plc

Group Balance Sheet

As at 31 December 2008

	Notes	Unaudited Period ended 31 December 2008 £'000		Unaudited Period ended 31 December 2007 £'000		Audited Year ended 30 June 2008 £'000
ASSETS
Non-current assets
Goodwill	4	-		4,500		-
Investment in associate	5	6,871		5,892		6,218
Investment in joint venture	6	606		521		493
Plant and equipment		33		9		32
Deferred exploration and evaluation  costs	7	272		49		149
Other investment	8	9		200		135
		7,791		11,171		7,027
Current assets
Cash at bank and in hand		2,544		4,557		3,713
Trade and other receivables	9	8		18		7
		2,552		4,575		3,720
Total assets		10,343		15,746		10,747
LIABILITIES
Current Liabilities
Trade and other payables	10	111		141		160
		111		141		160
Total liabilities		111		141		160
Net assets		10,232		15,605		10,587
EQUITY
Share capital		1,016		1,012		1,016
Share premium account		21,904		20,488		21,904
Reserves	12	308		136		165
Accumulated losses		(12,996)		(6,031)		(12,498)
Shareholders' Equity		10,232		15,605		10,587

  Bezant Resources Plc

Group Cash Flow Statement

For the period ended 31 December 2008

	Notes	Unaudited Period ended 31 December 2008 £'000			Unaudited Period ended 31 December 2007 £'000			Audited Year ended 30 June 2008 £'000
Net cash outflow from  operating activities	14	(528)			(430)			(974)
Cash flows from   investing activities
Payments for plant and equipment		(6)			(7)			(32)
Payments to fund exploration		(123)			(112)			(149)
Payments for joint venture expenditure		(113)			-			(35)
Payments to acquire investment in associate		-			(500)			(500)
Loans to associates		(653)			(278)			(605)
Payments to acquire available-for- sale investments		-			(200)			(200)
Interest received		52			54			180
Other income		15			50			73
Net cash outflow from  investing activities		(828)			(993)			(1,268)
Cash flows from   financing activities
Proceeds from the issue of shares		-			4,335			4,335
Share issue costs		-			(26)			(26)
Net cash inflow from   financing activities		-			4,309			4,309
(Decrease) / Increase in cash and cash equivalents		(1,356)			2,886			2,067
Cash and cash equivalents at  beginning of period		3,713			1,625			1,625
Effect of foreign currency translation  reserve		187			46			21
Cash and cash equivalents at end  of period		2,544			4,557			3,713

Bezant Resources Plc

Notes to the Interim Financial Information

For the period ended 31 December 2008

1. Accounting policies

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated below.

1.1 Basis of preparation

This interim report, which incorporates the financial information of the Company and its subsidiary undertakings (the "Group"), has been prepared using the historical cost convention, on a going concern basis and in accordance with the International Financial Reporting Standards ("IFRS") including IAS 34 'Interim Financial Reporting' and IFRS 6 'Exploration for and Evaluation of Mineral Resources', as adopted by the European Union ("EU"). 

These interim results for the six months ended 31 December 2008 are unaudited and do not constitute statutory accounts as defined in section 434 of the Companies Act 2006. The financial statements for the year ended 30 June 2008 have been delivered to the Registrar of Companies and the auditors' report on those financial statements was unqualified and did not contain a statement made under Section 237(2) or Section 237(3) of the Companies Act 1985, with the latter version of the Companies Act having been current during the previous reporting period.

Basis of Consolidation

The consolidated financial statements incorporate the financial statements of the Company and its subsidiary undertakings and have been prepared by using the principles of acquisition accounting, which includes the results of the subsidiaries from their dates of acquisition.

All intra-group transactions, income, expenses and balances are eliminated fully on consolidation.

A subsidiary undertaking is excluded from the consolidation where the interest in the subsidiary undertaking is held exclusively with a view to subsequent resale and the subsidiary undertaking has not previously been consolidated in the consolidated accounts prepared by the parent undertaking.

Business Combination

On acquisition, the assets and liabilities and contingent liabilities of a subsidiary are measured at their fair values at the date of acquisition. Any excess of the cost of acquisition over the fair values of the identifiable net assets acquired is recognised as goodwill. Any deficiency of the cost of acquisition below the fair values of the identifiable net assets acquired (i.e. discount on acquisition) is credited to profit and loss in the period of acquisition.The interest of minority shareholders is stated at the minority's proportion of the fair values of the assets and liabilities recognised. Subsequently, any losses applicable to the minority interest in excess of the minority interest are allocated against the interests of the parent.

Investment in associate companies is accounted for using the equity method.

1.2 Goodwill

Goodwill is the difference between the amount paid on the acquisition of the subsidiary undertakings and the aggregate fair value of their separable net assets. Goodwill is capitalised as an intangible asset and in accordance with IFRS 3 'Business Combinations' is not amortised but tested for impairment when there are any indications that its carrying value is not recoverable. As such, goodwill is stated at cost less any provision for impairment in value. If a subsidiary undertaking is subsequently sold, goodwill arising on acquisition is taken into account in determining the profit and loss on sale.

1.3 Exploration and evaluation expenditure 

Exploration, evaluation and development expenditure incurred is accumulated in respect of each identifiable area of interest. These costs are only carried forward to the extent that they are expected to be recouped through the successful development of the area or where activities in the area have not yet reached a stage which permits reasonable assessment of the existence of economically recoverable reserves. Accumulated costs in relation to an abandoned area are written off in full against profit in the year in which the decision to abandon the area is made. When production commences, the accumulated costs for the relevant area of interest are amortised over the life of the area according to the rate of depletion of the economically recoverable reserves. A regular review is undertaken of each area of interest to determine the appropriateness of continuing to carry forward costs in relation to that area of interest. 

Costs of site restoration are provided when an obligating event occurs from when exploration commences and are included in the costs of that stage. Site restoration costs include the dismantling and removal of mining plant, equipment and building structures, waste removal and rehabilitation of the site in accordance with clauses of the mining permits. Such costs have been determined using estimates of future costs, current legal requirements and technology on a discounted basis. Any changes in the estimates for the costs are accounted for on a prospective basis. In determining the costs of site restoration, there is uncertainty regarding the nature and extent of the restoration due to community expectations and future legislation. Accordingly the costs have been determined on the basis that the restoration will be completed within one year of abandoning the site.

1.4 Revenue

Revenue from the sale of goods (precious metals) is recognised upon production. Interest revenue is recognised on a proportional basis taking into account the interest rate applicable to the financial assets.

Bezant Resources Plc

Notes to the Interim Financial Information

For the period ended 31 December 2008

1.5 Share based payments

The Company made share-based payments to certain directors and advisers by way of issue of share options. The fair value 

of these payments is calculated by the Company using the Black Scholes option pricing model. The expense is recognised on a straight line basis over the period from the date of award to the date of vesting, based on the Company's best estimate of shares that will eventually vest.

1.6 Foreign Currency Transactions and Balances

(i) Functional and presentational currency

Items included in the Group's financial statements are measured using Pounds Sterling ("£"), which is the currency of the primary economic environment in which the Group operates ("the functional currency"). The financial statements are presented in Pounds Sterling ("£"), which is the functional currency of the Company and is the Group's presentation currency.

The individual financial statements of each Group company are presented in the functional currency of the primary economic environment in which it operates.

(ii) Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at period end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the income statement.

Transactions in the accounts of individual Group companies are recorded at the rate of exchange ruling on the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the rates ruling at the balance sheet date. All differences are taken to the income statement.

For the purpose of presenting consolidated financial statements, the assets and liabilities of the Group's foreign operations are translated at exchange rates prevailing on the balance sheet date. Income and expense items are translated at the average exchange rates for the period. Exchange differences arising are classified as equity and transferred to the Group's translation reserve. Such translation differences are recognised as income or as expenses in the period in which the operation is disposed of.

2. Loss per share 

The basic loss per ordinary share has been calculated using the loss for the period of £498,000 (31 December 2007: £428,000, 30 June 2008: £6,895,000) and the weighted average number of ordinary shares in issue of 39,162,223 (31 December 2007: 36,131,961, 30 June 2008: 36,944,824).

The diluted loss per share has been calculated using a weighted average number of shares in issue and to be issued of 34,011,508 (31 December 2007: 36,236,122, 30 June 2008 36,890,621). The diluted loss per share has been kept the same as the basic loss per share as the conversion of share options decreases the basic loss per share, thus being anti-dilutive. 

3. Segmental reporting

For the purposes of segmental information, the operations of the Group are focused in Tanzania and the Philippines and comprise one class of business: the exploration, evaluation and development of mineral resources.

The Group's operating loss arose from its operations in both Tanzania and the Philippines.

Bezant Resources Plc

Notes to the Interim Financial Information

For the period ended 31 December 2008

4. Goodwill

Group

	Unaudited 31 December 2008 £'000			Unaudited 31 December 2007 £'000			Audited 30 June  2008 £'000
Cost
At periods' / year end	4,500			4,500			4,500
Impairment
At periods' / year end	(4,500)			-			(4,500)
Net book value
At periods' / year end	-			4,500			-
Goodwill arose on the acquisition of the Company's subsidiary undertakings.

5. Investments in associate accounted for using the equity method of accounting

Group

	Unaudited 31 December 2008 £'000			Unaudited 31 December 2007 £'000			Audited 30 June  2008 £'000
Investment in Crescent Mining and Development Corporation	5,614			5,614			5,614
Loan due from Crescent Mining and Development Corporation	1,257			278			604
	6,871			5,892			6,218

  Bezant Resources Plc

Notes to the Interim Financial Information

For the period ended 31 December 2008

6. Investment in joint venture

Group

	Unaudited 31 December 2008 £'000			Unaudited 31 December 2007 £'000			Audited 30 June  2008 £'000
Investment in Mkurumu Project	606			521			493

7. Deferred exploration and evaluation costs

Group

	Unaudited 31 December 2008 £'000			Unaudited 31 December 2007 £'000			Audited 30 June  2008 £'000
Deferred exploration and evaluation  costs	272			49			149

8. Other investment

Group

	Unaudited 31 December 2008 £'000			Unaudited 31 December 2007 £'000			Audited 30 June  2008 £'000
Shares in listed company	9			200			135

9. Trade and other receivables

Group

	Unaudited 31 December 2008 £'000			Unaudited 31 December 2007 £'000			Audited 30 June  2008 £'000
Other receivables	8			18			7

10. Trade and other payables

Group

	Unaudited 31 December 2008 £'000			Unaudited 31 December 2007 £'000			Audited 30 June  2008 £'000
Trade payables	77			118			125
Other payables & accruals	34			23			35
	111			141			160

  Bezant Resources Plc

Notes to the Interim Financial Information

For the period ended 31 December 2008

11. Share capital and options

Group

Class	Nominal value		Unaudited 31 December 2008 Number			Unaudited 31 December 2007 Number			Audited 30 June  2008 Number
Authorised
Ordinary	0.2p		690,432,500			690,432,500			690,432,500
Deferred	4p		7,959,196			7,959,196			7,959,196
Deferred	99p		625,389			625,389			625,389
Allotted, called up and fully paid
Ordinary	0.2p		39,162,223			37,162,223			39,162,223
Deferred	4p		7,959,196			7,959,196			7,959,196
Deferred	99p		625,389			625,389			625,389

Share options

Details of share options outstanding at 31 December 2008 are as follows:

	Unaudited 31 December 2008 Number			Unaudited 31 December 2007 Number			Audited 30 June  2008 Number
Opening balance	2,197,800			2,197,800			2,197,800
Granted during the period	-			-			-
Exercised during the period	-			-			-
Lapsed during the period	-			-			-
	2,197,800			2,197,800			2,197,800

Bezant Resources Plc

Notes to the Interim Financial Information

For the period ended 31 December 2008

12. Reserves

Group

Share based payment reserve	Unaudited 31 December 2008 £'000			Unaudited 31 December 2007 £'000			Audited 30 June  2008 £'000
Opening balance	142			6			6
Share based payments - charge	44			69			136
Closing balance	186			75			142

Foreign currency reserve	Unaudited 31 December 2008 £'000			Unaudited 31 December 2007 £'000			Audited 30 June  2008 £'000
Opening balance	23			15			15
Movement in reserve	99			46			8
Closing balance	122			61			23

Other reserve - for own shares	Unaudited 31 December 2008 £'000			Unaudited 31 December 2007 £'000			Audited 30 June  2008 £'000
Opening balance	-			665			665
Transfer to equity	-			(665)			(665)
Closing balance	-			-			-

13. Share-based payments 

Group

The Group and Company recognised the following charge in the income statement in respect of its share based payment plans:

		Unaudited 31 December 2008 £'000			Unaudited 31 December 2007 £'000		Audited 30 June  2008 £'000
Share-based payment charge	44			69			136

Bezant Resources Plc

Notes to the Interim Financial Information

For the period ended 31 December 2008

14. Reconciliation of operating cash flows to net cash outflows from operating activities

	Unaudited 31 December 2008 £'000			Unaudited 31 December 2007 £'000			Audited 30 June  2008 £'000
Group operating loss	(557)			(482)			(7,075)
Other income	7			-			-
Depreciation	5			1			4
Foreign exchange gain	(87)			-			(12)
Share-based payment expense	44			69			136
VAT refunds received	(15)			(50)			(73)
Impairment in investments	125			-			5,985
(Increase) / decrease in trade and other receivables	(1)			27			38
Increase / (decrease) in trade and other payables	(49)			5			23
	(528)			(430)			(974)

  Bezant Resources Plc

Notes to the Interim Financial Information

For the period ended 31 December 2008

15. Events after the balance sheet date

There has not arisen in the interval between the half year end and the date of this report any item, transaction or event of a material or unusual nature likely, in the opinion of the directors of the Company, to effect:

The Company's operations in future financial periods; or 

The results of those operations in future financial periods; or

The Company's state of affairs in future financial periods.

16. Availability of Interim Report

A copy of these results will be available from the Company's registered office at Quadrant House, Floor 6, 17 Thomas More Street, Thomas More Square, London E1W 1YW and can also be downloaded from our website at www.bezantresources.com. Bezant Resources Plc is registered in England and Wales with company number 2918391.

INDEPENDENT REVIEW REPORT BY THE AUDITORS

TO BEZANT RESOURCES PLC

Introduction

We have been engaged by the company to review the condensed financial statements in the interim results for the six months ended 31 December 2008 which comprises the Group Income Statement, the Group Statement of Changes in Equity, the Group Balance Sheet, the Group Cash Flow Statement and the related notes. We have read the other information contained in the interim results and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

Directors' Responsibilities

The interim result is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the interim results in accordance with the AIM Rules For Companies.

As disclosed in note 15, the annual financial statements of the group will be prepared in accordance with IFRSs as adopted by the European Union. The condensed set of financial statements included in the interim results has been prepared in accordance with International Accounting Standard 34, Interim Financial Reporting, as adopted by the European Union.

Our Responsibility

Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the interim results based on our review.

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 condensed financial statements in the interim results for the six months ended 31 December 2008 is not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union and the AIM Rules For Companies.

UHY Hacker Young LLP

Chartered Accountants

Registered Auditors

London

30 March 2009

ENDIR QFLBXKXBXBBF