GCM Resources Regulatory News (GCM)

 20 April 2012

GCM Resources plc

(the "Company" or "GCM Resources")

(AIM:GCM)

Changes to remuneration and issue of options to directors

Following the recent change in management resulting from the departure of the former Chief Executive, the Board has conducted a thorough review of the status of its Phulbari Coal Project ("the Project") in Bangladesh. As a result of this review, the Board has agreed a detailed action plan to fully engage with the Government and people of Bangladesh. This activity will seek to ensure that all stakeholders are fully aware of the significant benefits arising from development of the Project and associated power generation.

The implementation of this action plan will necessitate an increased level of commitment and direct participation of certain Board members. In recognition of this increased involvement in working towards achieving the requisite approvals for the Project, the Board has agreed to changes in remuneration, including the following:

New share options issued:

Gerard Holden - 800,000 options with exercise price £1 and expiry 30 April 2015

David Weill - 800,000 options with exercise price £1 and expiry 30 April 2015

Stephen Dattels - 400,000 options with exercise price £1 and expiry 30 April 2015

Bill McIntosh - 80,000 options with exercise price £1 and expiry 30 April 2015

New shares issued

Greg James - 100,000 shares allotted in equal quarterly amounts during the period April 2012 to March 2014.

Amendment to the terms of existing share options:

Gerard Holden - 200,000 options

Expiry date 29 November 2014 (from 29 November 2012)

Exercise price £1 (from £1.35)

Graham Taggart - 500,000 options

Expiry date 29 November 2014 (no change)

Exercise price £1 (from £1.35)

Gerard Holden, Chairman said: "The slow pace of development of the Project has been extremely frustrating for all concerned. We see the Government and people of Bangladesh as our most important partners in this Project and by continuing to work together we are confident that we can achieve a positive result for all stakeholders. Our Board members have accepted that they will need to devote more time and effort to be able to ensure the success of the Project. The remuneration changes are in line with the additional workload required to achieve this."

For further information contact: