EDL.L Regulatory News (EDL)

31 May 2012

EDENVILLE ENERGY PLC ("Edenville" or the "Company")

Final Results

Edenville Energy plc, (AIM:EDL), the African coal exploration and development company, today announces its Audited Final Results for the year ended 31 December 2011

Highlights

Operational

·; 22 vertical diamond drill holes completed at the Mkomolo Basin, one of three coal projects owned and controlled by Edenville in the Rukwa Coalfields

·; Acquisition of contiguous coal exploration block covering 494.99km² - adjacent to Kiwira-Songwe Coalfield

·; £1.5 million raised to fund drilling programs at key coal targets and working capital

Financial

·; £8,682,857net assets

·; £511,538 cash reserves

·; Group operating loss of £1,216,771

Post period

·; Maiden, JORC-compliant inferred resource at Mkomolo of 39 million tonnes of thermal coal at 17 MJ/kg (float density - 2.0 and Yield - 26%)

·; £2.5 million raised following January placing

·; Fully funded to undertake 2012 drill programme to delineate extensions to Mkomolo coal seams and also test the Muze and Namwele deposits

Simon Rollason, Chairman of Edenville, commented "Over the past year we have completed an intensive work programme with considerable success; the company is now extremely well positioned to progress towards its eventual aim of developing the Rukwa Coalfield. The initial JORC-compliant resource at Mkomolo represents completion of the first step in the Company's strategy to provide low-cost energy to Tanzania. The more results we receive, the more clear it becomes that the Rukwa deposit has significant potential and we look forward to keeping shareholders updated as we make further progress throughout the year."

Contact:

A copy of the Annual Report will be posted to shareholders and will shortly be made available on the Company's website www.edenville-energy.com.

EDENVILLE ENERGY PLC

CHAIRMAN'S STATEMENT

FOR THE YEAR ENDED 31 DECEMBER 2011

I am pleased to present the annual financial statements for Edenville Energy PLC for the period ending 31st December 2011, and report on the key developments of the Group in the past year.

The major focus of the past year has been the operations spent on the Rukwa Coalfield in Tanzania and, in particular, on the Mkomolo deposit. Exploration drilling commenced in July and 22 vertical diamond drill holes in total were completed up to October, with coal bearing strata identified over 6,500 metres lateral strike distance with a depth in excess of 230 metres. Wardell Armstrong International was employed to oversee the drilling programme and associated core handling procedures with all sample analysis completed by Inspectorate M and L (Pty) Ltd in Middleburg, South Africa.

In April 2012 the company announced its maiden in-situ resource estimate at the Mkomolo Basin of 39 million tonnes of thermal coal with a calorific value of 17 MJ/kg. This provided further confirmation that the coal is suitable, with appropriate processing, for coal fired power generation. The Phase 1 drilling covered a strike length of approximately 6km and the deposit remains open to the north, potentially for a further 3.5km and further remains open at depth to the southwest. The inferred JORC compliant resource of 39 million tonnes was in line with the Company's expectations and, given that Mkomolo represents just one of three deposits on the Rukwa coalfield and is in itself not drilled out, the upside potential for Edenville Energy looks very promising. Whilst 2011 saw the Company make outstanding progress at Mkomolo, it is important to underline that both the Namwele and Muze deposits remain part of the Group's core focus, and these deposits will be tested as part of the proposed 2012 drill programme.

Financial Results

The Group reported an operating loss of £1,216,771 (2010: £304,348) for the year ending 31 December 2011 and had net assets at that date of £8,682,857 (2010: £8,026,289).

As at 31 December 2011, the Group had cash reserves of £511,538.

The Group has a strong balance sheet and following a placing in January 2012 which raised £2.5million, the Group is fully funded to undertake the proposed 2012 work programme.

Corporate

In April 2011, the Group announced the successful acquisition of 3 additional exploration licences in south-western Tanzania which the Group considers to have strong coal potential and which will form part of the Group's long term exploration strategy. The licences form a contiguous block covering 494.99km² and lie adjacent to the Kiwara-Songwe Coalfield. The total cash consideration paid to the private owners was US$161,699. with the licences being held by Edenville's 99.5% owned Tanzanian subsidiary, Edenville International (Tanzania) Limited.

Outlook

The outlook for the Group is positive with the maiden JORC resource announcement the standout achievement of the past year. The 2012 drill programme will see the continuing delineation of the extensions to the Mkomolo coal seams whilst testing the Muze and Namwele deposits. Additionally the Group has signed geophysics and drill contracts, with field work set to commence at the deposits in May of this year. We continue to evaluate our portfolio of assets in Tanzania and will continue to seek new opportunities for company growth through joint participation, partnerships or ownership where appropriate. The short to mid-term future for energy commodities remains positive especially for lower cost producers and Edenville is well placed to participate strongly in this sector in the region.

On behalf of shareholders, I would like to take this opportunity to thank my colleagues and employees for all their efforts throughout the period. We are excited about the proposed work programme for the coming year which will build on the hard work put in since the re-admission in 2010.

Simon Rollason

Executive Chairman

Date: 30 May 2012

REVIEW OF OPERATIONS for the year ended 31 december 2011

It is with great pleasure that I can report that with the successful completion of last year's drilling and the publication of the Maiden Inferred Resource Statement at Mkomolo, we have successfully delineated a resource base of 39 million tonnes from which we shall be able to expand and add significant further resources at Rukwa this year. During 2011 the Company increased its interest in the Rukwa Coalfields from 70% to 80% as per the agreement signed with the vendor in August 2010. In 2012 the Company has the option to further increase its shareholding to 90% with an option payment of $100,000 with the vendor maintaining a free-carried interest of 10% at that time.

Since our last Annual Report a 3,000m diamond drill program was completed at Mkomolo (22 drillholes) and Namwele (8 drillholes) coalfields within our Rukwa Coalfields Project. The results from this drilling has enabled us, together with our consultants, Wardell-Armstong International ( "WAI") to report the maiden resource at Mkomolo of 39 million tonnes within an overall package of coal measures sequences which total 187 million tonnes. Further mapping and pitting has outlined that these Karoo sediments hosting coal measures extend to the north of borehole MK11-18, our current most northerly drill hole, for at least a further 3.0 to 3.5km. The 2011 drilling covered a strike length of 6.5km, and a width of approximately 200m, two deep step out holes to trace the coal measures to the west were abandoned due to poor drilling conditions and these will be part of our focus for the 2012 drilling program.

At Namwele eight holes were drilled of which only 5 were completed, intersecting coal measures, due to poor ground conditions. These holes will be used to give an outline of the resource at Namwele but will not allow a JORC compliant resource to be completed due to the incomplete drillholes. The results from these holes are still awaited from the laboratory in South Africa.

With the positive results from the 2011 drilling program as well as the Tanzanian Government actively seeking new sources of power for the country, which is currently dependant on ageing diesel fuelled power stations and hydro-electricity, a second phase of diamond drilling will take place. The drilling machinery is due to begin mobilising to site in mid-May upon cessation of the rainy season. A contract has again been signed with Layne Drilling International. Their work at the project last year gives the experience at Rukwa and this we feel will give us the best chance to successfully complete the planned 7,000m drilling program. Layne will again be using experienced drilling personnel as well as a Foreman with over 10 years experience drilling in the Australian coalfields. All proposed diamond drilling will utilise triple-tube core barrels for maximum recovery, similar to the 2011 drilling where we averaged an excellent 95% recovery.

The planned drilling for 2012 will be focused into three phases:

1) Infill and expansion drilling at Mkomolo. This will in part be based on the recommendations made by WAI in their Resource Report of April 2012, with the aim of infilling, expanding and upgrading the current Inferred Resource to a JORC compliant Measure and Indicated Resource that will enable mine planning to commence.

2) Complete and in-fill the current drilling at Namwele to enable a Maiden JORC compliant Inferred Resource to be developed, thus enabling us to commence mine planning for a joint mining/plant operation at the Mkomolo/Namwele Deposits.

3) Initiate the drilling at Muze with the aim of allowing us to define a Maiden JORC Inferred Resource.

The ongoing drilling and resource evaluation work, costs of which are being capitalised, will be undertaken by Edenville's personnel and its qualified consultants, WAI. The aim being that the Measured and Indicated Resource will be available on Mkomolo towards the end of the First Quarter 2013, at Namwele an Inferred Resource during the Second Quarter and the Maiden Resource at Muze during the Third Quarter of 2013. This will therefore enable us to commence Mine Planning/Pre-Feasibility studies in the Second Half of 2013.

Due to the current worldwide interest in coal we along with all other clients are now having to accept a between 4 and 6 month turnaround time to obtain assay results. Management is thus currently attempting to find solutions to this by using other internationally recognised laboratories that may be less saturated and would enable us to have a shorter turn around for the results. This may or may not be successful but if positive then the time frames indicated above may be shortened.

In April we announced the acquisition of three additional exploration licences in south-western Tanzania. The licences form a contiguous block covering 494.99km² and lie adjacent to the Kiwira-Songwe Coalfield which had past historical production and limited power generation. This additional ground covers an area with a favourable geological setting for additional coal discoveries which complements our existing portfolio of coal focused assets within Southern Tanzania.

Edenville's other coal and uranium licences in South-western Tanzania continue to progress slowly with mapping and sampling of the radiometric anomalies. Edenville, with its concentrated effort in the Rukwa District took the view to continue work and submit reports to the Tanzanian Ministry of Energy and Mines as the law requires. However, with the funding the Group secured in January 2012 a further three new geologists have now been added to the exploration team. This will therefore allow us to advance the evaluation of these Southern Licences. Work will commence initially, in June following the end of the rainy season, with the mapping and sampling of the licences surrounding the historic Kiwira Coalfields.

Management is actively evaluating other more advanced coal projects in the African continent in order to expand the Group's coal resource base.

M J Pryor

Chief Executive Officer

Date: 30 May 2011

GROUP STATEMENT OF COMPREHENSIVE INCOME

year ended 31 december 2011

All operating income and operating gains and losses relate to continuing activities.

No separate statement of comprehensive income is provided as all income and expenditure is disclosed above.

GROUP STATEMENT OF FINANCIAL POSITION

AS AT 31 december 2011

The financial statements were approved by the board of directors and authorised for issue on 30 May 2012 and signed on its behalf by:

S. Rollason

Director

Company registration number: 05292528

GROUP STATEMENT OF CHANGES IN EQUITY

year ended 31 december 2011

.

group cash flow STATEMENTS

year ended 31 december 2011

NOTES TO THE COMPANY'S FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2011

1. Intangible assets

Javan licences

On 27 May 2009, the Company signed an option agreement with Javan Investments Company Limited, a private Tanzanian registered company for two prospecting licences in Tanzania. Under the terms of the option agreement, the Company acquired an initial 25% interest in both licences for a consideration of US$15,000 per licence. In the opinion of the Directors these licences should be fully impaired in line with IAS 36 and IFRS 6 as at 31 December 2011. On the basis that no further exploration and evaluation expenditure is expected on these licences and there is no expectation of the Company applying for renewal of the licences in the future.

Tanzanian Licences and Goodwill

The Tanzanian licenses comprise six prospecting licences acquired on the acquisition of Edenville International (Tanzania) Limited in 2010. The Licenses cover 598km2 in Tanzania, located in a region displaying viable prospects for both uranium and coal and occur in a country where the government's policy for development of the mineral sector aims at attracting and enabling the private sector to take the lead in exploration mining, development, mineral beneficiation and marketing. The value of the assets obtained on acquisition represent the fair value of the consideration paid to the vendors.

This year a further three exploration licenses were acquired in south west Tanzania which the Group considers to have strong coal potential. The licences form a contiguous block covering 494.99 km2 and lie adjacent to the Kiwara- Songwe Coalfield.

The group has two CGUs: coal and uranium, as disclosed in note 5 segmental information, which are relevant for the purposes of evaluation licences and goodwill. Goodwill arose as a result of the valuation placed on the 6 Tanzanian licences acquired on the acquisition of Edenville (Tanzania) Limited. As such the value of Goodwill is linked to the value of the licences.

Goodwill at the year end totalled £1,286,890. £272,135 has been allocated to coal licences and £1,014,755 to uranium licences. The allocation has been made based on the value of the licences on the date of acquisition.

The carrying value of exploration and evaluation assets including goodwill is reviewed annually to determine whether it is in excess of its recoverable amount. The Directors have determined the recoverable amounts using value in use. The value in use is determined at the cash generating unit level, in this case the coal and uranium exploration and evaluation assets.

The group has so far undertaken limited exploration of its licences and as such it does not currently have any resources or reserves estimates on which to value its assets. In the absence of data specific to the group's licences, the Directors have determined the fair value of licences and hence goodwill based on comparable neighbouring coal and uranium exploration and development projects.

The Directors have used the following assumptions for its uranium licences in South-Western Tanzania, based on published information from a neighbouring deposit, last updated in November 2011:

·; Average annual production of U₃O₈ Uranium : 4.2million lbs

·; Initial life of mine :12 years

·; Average cash operation costs: US$22.20 per Ib of U₃O₈ Uranium

·; Total capital costs: US$ 430million

The Directors have used the following assumptions for its uranium licences in Northern Tanzania based on published information from a neighbouring deposit, last updated in June 2010.

·; Cash sales price US$ 50 per lb

·; Cash costs US$ 20 per lb

·; Recovery of 80% of 6.7m lbs

·; Sales split evenly over a 10 year life of mine

·; No potential additional resources were included

These assumptions were used to arrive at an estimated recoverable amount per square kilometre. A range of discount rates ranging from 10% to 20% was applied to reflect the early exploration stage of the group's projects. These discounted values were then applied to the licence area of the group's licences, as appropriate, and an average value was taken and compared against the initial value placed on the licences. There were no indications of impairment in the group's uranium licences and the associated goodwill.

For the coal licences the Directors have considered the success of a neighbouring deposit which covers an area of 61Km² and has a JORC compliant resource of 210 million tonnes. The neighbouring licence also estimates that the successful drilling programs undertaken in two newly acquired blocks have the potential to add a further 150-200m tonnes of coal.

The area has been earmarked for a proposed US$1.2bn power station with estimated returns of US$300m. This would result in high licence valuations and given that the group's licence covers three times the area of the neighbouring mine and if the group replicates the drilling success then the Directors consider that there has been no impairment in their coal licences.

Based on the above, the Directors do not consider the licences they hold and hence Goodwill to be impaired.

The calculation of value in use is most sensitive to the following assumptions:

·; Recoverable resources and reserves

·; Future price of coal and uranium

In the Directors' view no reasonable change in any of the key assumptions would trigger an impairment charge at 31 December 2011.

2. Equity investments - available for sale

On 13 March 2009, the Company entered into a collaboration and option agreement on a group of emerald mining licences in Tanzania, Africa, with Obtala Resouces Plc ("Obtala") and Obtala's subsidiary Mindex Invest Limited ("Mindex").

The Company's focus is now on coal exploration and mining and the directors therefore consider it appropriate to impair the cost of these emerald mining licences, as the company does not intend to develop these assets. As at 31 December 2011, the Directors deemed this investment to be permanently impaired and have therefore written off the carrying amount in the statement of comprehensive income.