Ironveld Regulatory News (IRON)

MERCURY RECYCLING GROUP PLC

Interim Report for the period ending 30 June 2011

CHAIRMAN'S STATEMENT

The Group's unaudited results for the 6 months ended 30th June 2011 show sales of £1,371,821 with Operating Profits of £76,972. These figures compare to £1,330,154 and £158,000 respectively for the same period in 2010. Included in these figures were £72,000 of non-recurring costs as detailed below. The cash position remains strong at £422,524.

The volume of lamps recycled was reasonable, but price reduction has had an effect. More important has been the expenditure to prepare the premises (£34,000) for the new battery business. This has saved much larger capital expenditure which would otherwise have been required for new premises. In addition legal costs and aborted acquisition costs accounted for a further £38,000.

The Department for Business Innovation and Skills (BIS), has advised that the position is likely to change considerably in the lamp recycling industry when the 'recast' Waste Electrical and Electronic Equipment Directive (WEEE Directive) is implemented in the UK (probably 2013). We have been assured that in addition to transposing the new European Directive into UK legislation, it will provide an opportunity for BIS to consider ways in which the current requirements can be improved, and made fairer for all involved. During 2012 we will be able to participate in the full consultation of that process. This should ensure major changes and a substantial increase in lamps recycled.

The second half of 2011 is difficult to predict, but the battery business should be up and running strongly by the last quarter. We already have orders in place, and this should help to offset any reduced revenue for lamp recycling. We are also making major savings to overheads in the second half of the year.

As I have mentioned previously, we have been exploring potential projects in the Natural Resources field. We now hope to be able to make an announcement shortly.

Prospects for 2012 for the moment remain uncertain on the lamp recycling side, I am optimistic that the major expansion into battery recycling, will broaden our business base and revenue streams. Thereafter, the major European change in lamp recycling under the new Re-cast Directive will ensure much higher levels of recycling, and should substantially improve that side of our business.

Once again I would like to thank all our staff for their contribution and diligence during the last year.

The Rt Hon The Lord Barnett JP PC

Chairman

CONSOLIDATED INCOME STATEMENT

FOR THE PERIOD ENDED 30 JUNE 2011

CONSOLIDATED STATEMENT OF COMPRENSIVE INCOME

FOR THE PERIOD ENDED 30 JUNE 2011

CONSOLIDATED BALANCE SHEET

AS AT 30 JUNE 2011

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE PERIOD ENDED 30 JUNE 2011

CONSOLIDATED CASH FLOW STATEMENT

FOR THE PERIOD ENDED 30 JUNE 2011

Note to the cash flow statement

NOTES TO CONSOLIDATED ACCOUNTS FOR THE PERIOD ENDED 30 JUNE 2011

1. Basis of preparation and accounting policies

The results for the six months to 30 June 2011 have been prepared under International Financial Reporting Standards (IFRS) as adopted by the EU and International Accounting Standards Board.

The accounting policies applied are consistent with those of the annual financial statements for the year ended 31 December 2010, as described in those financial statements.

The financial information does not constitute statutory accounts as defined by section 435 of the Companies Act 2006. Full accounts of the company for the year ended 31 December 2010 on which the Auditors gave an unqualified report, have been delivered to the Registrar of Companies.

2. Earnings per share

The calculation of basic and diluted earnings per share is based upon the profit for the period and the weighted average number of shares in issue during the period.

Under IAS 33, the share warrants in issue at the period end were not considered diluting as the market based vesting conditions of the warrants had not been met at the period end.

3. Copies of report

Copies of this interim statement will be despatched to shareholders and will be available to the public at the Registered Office, Mercury House, 17 Commerce Way, Trafford Park, Manchester, M17 1HW.