Grit Inv Tst Regulatory News (GRIT)

To: RNS and the Channel Islands Securities Exchange Authority Limited

From: Global Resources Investment Trust plc

Date: 30 September 2016

Chairman's Statement

Introduction

I have written to you on a number of occasions since the Company was launched in March 2014 and am pleased, finally, to be able to do so with good news to report. The first part of 2016 appears to have seen the low of the commodity cycle and performance has picked up strongly since then.

Investment and Share Price Performance

At 30 June 2016 your Company's NAV was 27.6 pence, up 36.0% since 31 December 2015. The Company's ordinary share price did not fare as well, falling by 7.8% over the same period, but this bald fact masks a tale of recovery. The share price fell to 2.5 pence in January as the market capitulated before recovering to 5.9 pence at 30 June 2016 and now stands at 8.5 pence.

In spite of this recovery, the discount to net asset value at which the Company's ordinary shares trade still stands at 68%.

9% Cumulative Unsecured Loan Stock 2018 ('CULS') and Going Concern

The Company issued £5 million nominal of CULS in 2014 to provide working capital. The CULS provide a degree of structural gearing and the Company was 16.9% geared at 30 June 2016, down from 41.0% at 31 December 2015.

Under the terms of the CULS your Company gave an undertaking that the cover ratio (being the ratio of the value of its investment portfolio to the principal amount of the outstanding CULS) must be at all times no less than 4:1. The steep decline in NAV meant that this ceased to be the case and, as I reported to you when I wrote in April, on 14 March 2016 LIM Asia Multi-Strategy Fund ("LIM"), the largest CULS holder (owning £3.5m of the £4.7m CULS then in issue) formally requested repayment of its CULS.

The Company did not have sufficient cash or liquid assets to repay the amount owed immediately. LIM and the other CULS holders have all indicated in writing their current intention to support the Company through the realisation of assets over a longer period with the purpose of enabling the Company to repay the CULS. On 23 August the Company repaid £1.0m nominal of CULS to LIM. On 2 September the Company announced that it had entered into an agreement to sell the balance of its position in Merrex Gold. The sale is expected to realise £2.6m and to settle within 60 days.

The ability of the Company to continue as a going concern is therefore still dependent on the continued support of the CULS holders in not seeking immediate repayment which would result in a liquidation event.

Outlook and Future Plans

Your Board announced initiatives in January and in June 2016 aimed at stabilising the Company and improving its prospects. The improvement in the commodity markets and changes in market sentiment, together with shareholder consultations, led the Board to conclude that it was not in the best interests of shareholders to proceed with these. Your Board greatly appreciates the patience that shareholders have displayed in waiting for the tide to turn in what is a volatile asset class, and I expect to be writing to you again shortly.

Lord St John

Chairman

30 September 2016

Investment Manager's Review

After almost four years in one of the worst slumps in decades, the commodity markets may appear to have finally bottomed in the first half of 2016. Having fallen to multiple year lows in 2015, the Bloomberg Commodity Index rose 14% during the first six months of the year, reflecting a recovery in most mineral commodities, including energy. Despite increasing supply, even the bulk commodities such as iron ore and coal recovered moderately in price, while oil recovered from a low below US$30/bbl to the mid US$40 level. Base metals such as copper, aluminium, lead and zinc fared less well but may also have seen the worst in terms of prices. The price of many metals had declined close to the marginal cost of production, which resulted in closures and cutbacks of higher cost producers, thereby providing a degree of price support. Continuing currency volatility and loose monetary policy in the OECD countries provided a strong boost to precious metal prices, with gold and silver rising 24% and 33% respectively.

The rise in the gold price and its effect on gold mining stocks provided most of the impetus for the improvement in the net asset value, which appreciated 35.9% from 20.3p to 27.6p during the first half of the year. This compares favourably with the rise of 19.5% in the FTSE AIM Basic Resource Index. The concentrated XAU Gold Index more than doubled from a very depressed and oversold level earlier in the year.

The precious metals have been the star performers so far this year, as investment demand for gold has soared as evidenced by the record levels of buying through Exchange Traded Funds. Additionally, Central Bank purchases have continued, with the most notable buyer being China, whose official gold holdings have reportedly risen to 59 million ounces. This is still a small percentage of total foreign exchange reserves compared with most western central bank holdings and should provide an underpinning factor for the physical gold market.

We have used the recent strength in the gold market to sell the fund's holdings in NuLegecy Gold and Inca Gold Resources and subsequent to the half year end; we have also agreed to sell the holding in Merrex Gold. The proceeds of these sales have and will be used to repay LIM Asia Multi-Strategy Fund. Following these sales we continue to maintain a high exposure to the gold sector primarily through the holdings of Siberian Goldfields and Mineral Mountain Resources.

We have also continued to rationalise the portfolio to less than 20 holdings, with the ongoing sale of the smaller holdings. This has resulted in a more focused portfolio with a concentration in several companies where we maintain a large shareholding and which we believe have the potential of above average returns as their projects develop and move closer to production.

While there will continue to be some short term price volatility, the resource sector appears to be stabilising. Global population is growing steadily and economic growth, particularly in greater Asia continues to grow, albeit at a slower rate. On aggregate, China is accounting for approximately 40% of world mineral consumption and mining will continue to play an important role in future global economic growth.

David Hutchins and Kjeld Thygesen

RDP Fund Management LLP

30 September 2016

Enquiries:

RDP Fund Management LLP

David Hutchins

Tel +44 (0) 207 290 8541

R&H Fund Services Limited

Martin Cassels

Tel: +44 (0) 131 550 3760

Audited Income Statement

The 'total' column of this statement represents the Company's profit and loss account, prepared in accordance with IFRS. All revenue and capital items in this statement derive from continuing operations. All of the loss for the year is attributable to the owners of the Company.

No operations were acquired or discontinued in the year.

A Statement of Total Recognised Gains and Losses is not required as all gains and losses of the Company have been reflected in the above Income Statement.

The accompanying notes are an integral part of the financial statements.

Reconciliation of Movement in Shareholders' Funds

Audited Balance Sheet

Audited Cash Flow Statement

Notes

1. Accounting Policies

Going Concern basis of accounting

The Company's operations have been cash flow negative since its inception; the Company relies on the sale of investments to generate the cash needed to continue to operate. £2.5m was realised from the sale of investments during the 6 month period under review.

The Company was at several points during the period in breach of the coverage ratio required to be maintained under the terms of the Convertible Unsecured Loan Stock 2017 ("CULS"). There are three CULS holders: at 30 June 2016 LIM Asia Multi-Strategy Fund Inc ("LIM") owned £3.5m of the £4.7m of CULS in issue. There are three CULS holders: at 30 June 2016 LIM Asia Multi-Strategy Fund Inc ("LIM") owned £3.5m of the £4.7m of CULS in issue. The Company does not have sufficient cash or liquid assets to repay the full amount owed immediately; however it repaid £1.0m on 23 August 2016. LIM confirmed to the Company in writing on 16 March 2016 that it was its current intention to support the Company through the realisation of assets over a longer period with the purpose of enabling the Company to repay the amounts owed to LIM. This continues to be the case, and the other two loan note holders have indicated, in writing, their support for this process.

The ability of the Company to continue as a going concern is therefore dependent on the continued support of LIM and the two other CULS holders in not seeking immediate repayment which would result in a liquidation event.

The Manager has said that it expects to be able to realise sufficient proceeds from the sale of a small number of quoted positions to satisfy the balance of debt payable to LIM. Should these sales not go ahead over the timescale envisaged then the continued support of the CULS holders may be imperilled.

These matters indicate the existence of a material uncertainty which may cast significant doubt as to the Company's ability to continue as a going concern. Nevertheless, the Directors believe that the risks around the possible immediate repayment of the CULS amounts due being required have been appropriately taken into consideration and accordingly the financial statements have been prepared on a going concern basis and do not include the adjustments that would result if the Company were unable to continue as a going concern.

2. Return per Ordinary Share

The revenue loss per ordinary share for the six months ended 30 June 2016 is based on a net loss after taxation of £305,000 and on a weighted average of 39,970,012 ordinary shares in issue during the period.

The capital return per ordinary share for the six months ended 30 June 2016 is based on a net capital gain after taxation of £3,221,000 and on a weighted average of 39,970,012 ordinary shares in issue during the period.

3. Net Asset Value per Ordinary Share

The net asset value per ordinary share is based on net assets of £11,031,000 (31 December 2015: £8,115,000) and on 39,970,012 (31 December 2015: 39,970,012) ordinary shares, being the number of ordinary shares in issue at the period end.

4 . 9% Convertible Unsecured Loan Stock 2017

5. Reserves

6. Related Party Transactions and fees paid to RDP Fund Management LLP

The Board of Directors is considered to be a related party. No Director has an interest in any transactions which are, or were, unusual in their nature or significant to the nature of the Company.

The Directors of the Company received fees for their services. Total fees for the six months to 30 June 2016 were £38,000 (six months ended 28 February 2015: £36,000) of which £12,000 (28 February 2015: £16,000) remained payable at the period end.

RDP Fund Management LLP ('RDP') received £80,000 in relation to the six months ended 30 June 2016, (six months ended 28 February 2015: £165,000) of which £13,000 (28 February 2015: £52,000) remained payable at the period end.

7. Post Balance Sheet Events

On 23 August 2016, LIM Asia Multi-Strategy Fund Inc was repaid £1m nominal of CULS in issue together with the accrued interest amount.On 2 September 2016, the Company announced that it had entered into an agreement to sell the balance of its position in Merrex Gold. The sale is expected to realise £2.6m and to settle within 60 days.

8. Financial Information

The financial information set out above does not constitute the Company's statutory accounts for the six months ended 30 June 2016. The statutory accounts for the sixteen months ended 31 December 2015 are audited and the Auditors have issued an unqualified opinion.

Directors' Statement of Principle Risks and Uncertainties

The risks, and the way in which they are managed, are described in more detail in the Strategic report contained within the Annual Report and Financial Statements for the sixteen months ended 31 December 2015. In opinion of the Directors, other than with regard to Going Concern (see note 1 above) the Company's principle risks and uncertainties have not changed materially since the date of the report and are not expected to change materially for the rest of the Company's financial reporting period to 31 December 2016.

Statement of Directors' Responsibilities in Respect of the Interim Report

We confirm that to the best of our knowledge:

· the condensed set of financial statements has been prepared in accordance with IAS 34 'Interim Financial Reporting' and gives a true and fair view of the assets, liabilities, financial position and profit of the Company;

· the Chairman's Statement and Investment Manager's Review (together constituting the Interim Management Report) include a fair review of the information required by the Disclosure and Transparency Rules ('DTR') 4.2.7R, being an indication of important events that have occurred during the first six months of the year and their impact on the financial statements;

· the Statement of Principle Risks and Uncertainties referred to above is a fair review of the information required by DTR 4.2.7R; and

· the condensed set of financial statements included a fair review of the information required by DTR 4.2.8R, being related perty transactions that have taken place in the first six months of the year and that have materially affected the financial position or performance of the Company during the period.

On behalf of the Board

Lord St. John

Chairman

30 September 2016