Landore Regulatory News (LND)

LANDORE RESOURCES LIMITED

INTERIM STATEMENT

For the six months ended 30 June 2013

MANAGEMENT DISCUSSION AND ANALYSIS

FOR THE SIX MONTHS ENDED 30 JUNE 2013

General

The following discussion of performance, financial condition and future prospects should be read in conjunction with the interim consolidated financial statements of Landore Resources Limited ("Landore" or the "Company") and its subsidiaries (together the "Group") and notes thereto for the period from 1 January 2013 to 30 June 2013. All amounts are stated in Sterling.

Overview

Landore is listed on the Alternative Investment Market in London, with the trading symbol of LND.L. The Company is based in Guernsey in the Channel Islands and its 100% owned operating subsidiary, Landore Resources Canada Inc, is engaged in the exploration and development of a portfolio of precious and base metal properties in North America. Its activities are almost entirely focused on the Junior Lake nickel project (the "Junior Lake Project"), in the province of Ontario, where we have now identified approximately 55,000 tonnes of Nickel equivalent (NiEq) in compliant resource categories. The Junior Lake Project has significant exploration upside which is described in more detail below.

Results of Operations

The financial results for the six months to 30 June 2013 show a loss of £1,546,309 (2012: loss £2,469,980). These results were in line with expectations and reflects the reduced exploration costs during the period amounting to £887,465 (2012: £1,837,894).

During the period under review £835,000 was raised from the issue of 16.7m shares, before issue costs.

The Group has no debt but will continue to raise further equity as needed to carry out its exploration and development activities.

Mineral Exploration Activities

In the period under review the Group's activities have been almost entirely focused on the Junior Lake Project. In January 2013, the Group announced an updated resource estimate for the B4-7 deposit identifying 2,695,000 tonnes at 1.24% NiEq for 33,248 tonnes of contained metal, all in the Indicated category. The deposit remains open down plunge at depth and along strike to the west.

The report also identified an exploration target (the "Exploration Target") located immediately west of the B4-7 deposit containing a potential 1.5 Mt to 2.0 Mt of sulphide mineralisation of similar grade range to that which has been outlined to date. The 2012 winter drilling programme, completed in March 2013, concentrated on the potential Exploration Target, together with its extension to the west. Results have been highly promising, confirming the presence of B4-7 massive sulphide mineralisation. Further details are set out below.

The Junior Lake property

The Junior Lake property, 100% owned by the Group, is located in the province of Ontario, Canada, approximately 235 kilometres north-northeast of Thunder Bay, and is host to; the Scorpion Zone, which contains the B4-7 Nickel-Copper-Cobalt-PGEs deposit, the Alpha Zone and the recently-identified Exploration Target. Junior Lake also contains the VW Nickel deposit and numerous other highly prospective mineral occurrences.

B4-7 Nickel-Copper-Cobalt-PGEs deposit

The B4-7 deposit is located approximately 3 kilometres to the northwest of the VW deposit. The B4-7 deposit mineralisation is hosted within a sub-vertical massive sulphide vein with stringers, net-textured and disseminated sulphides in the immediate hanging wall.

The B4-7 deposit resource estimate and report, completed by RPA Inc, of Toronto, Canada ("RPA") in January 2013, identified 2,695,000 tonnes at 1.24% NiEq for 33,248 tonnes of contained metal, all in the Indicated category.

The report also identified the Exploration Target located immediately west of the B4-7 deposit containing a potential 1.5 Mt to 2.0 Mt of sulphide mineralisation of similar grade range to that which has been outlined to date.

The 2012 winter drilling programme, completed in March 2013 and consisting of 14 NQ diamond drill-holes from 0413-463 to 0413-476 for 5,172 metres, concentrated on the potential Exploration Target, together with its extension to the west. Results have been highly promising, confirming the continuation of the B4-7 massive sulphide mineralisation between the existing intercepts on lines 175W and 300W.

B4-7 main zone intersections include:

*The actual true thickness of mineralisation is estimated to represent between 60-70% of the intervals shown in the above table.

Drilling on the Exploration Target has also intersected Alpha Zone style disseminated sulphide mineralisation. The Alpha Zone contains significant palladium with elevated nickel, copper, cobalt, platinum and gold. This mineralisation is found in both the open pit and underground portions of the B4-7 deposit.

Polymetallic Alpha Zone/Hanging wall intersections include:

*The actual true thickness of mineralisation is estimated to represent between 60-70% of the intervals shown in the above table.

Alpha Zone mineralisation has not been included in the B4-7 resource due to its complexity along strike. Landore retained RPA in late March 2013 to conduct a study into the Alpha Zone style mineralisation so as to better understand the structural, lithological, and genetic characteristics of this style of mineralisation. Should these studies provide positive results, the potential exists to consider portions of the Alpha Zone as mineral resources.

The B4-7 deposit, so far delineated over 650 metres of strike, remains open down plunge at depth and along strike to the west. A previously completed airborne electromagnetic survey, as well as the deep-penetrating DCIP + MT survey completed in autumn 2012, suggests the conductive horizon hosting the B4-7 deposit persists to the west indicating the potential for further significant massive sulphide mineralisation.

The DCIP + MT survey interpretation has also identified five areas of interest for further exploration, based on a review of highly conductive horizons with associated moderate chargeability responses. Three areas of interest, located in the central, eastern and northern parts of the survey area appear to be interconnected, with the northern area extending to depth and dipping from the existing B4-7 deposit and adjacent exploration target immediately west of the deposit.

The results of the recently-completed B4-7 resource estimate, together with encouraging drill results from the Exploration Target, have contributed to the overall economic viability of the Junior Lake Project.

2013 Planned Works

Pre-feasibility studies, including ancillary metallurgical, geotechnical, environmental and socio economic studies, on the combined B4-7 and the VW deposits have been initiated.

A drill program for metallurgical, geotechnical and infra-structure condemnation is currently being prepared to be carried out during 2014.

Encouraged by the success of the resistivity results in identifying potential nickel targets at depth, Landore intends to expand the DCIP + MT geophysical coverage over the whole prospective area between the B4-7 and VW deposits, including the VW deposit itself, during the winter 2013/14 program.

In preparation for this exercise, approximately 60 kilometres of line cutting is currently underway over the proposed survey area.

For further information on Landore and the Group's projects please visit the website

www.landore.com 

UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 30 JUNE 2013

The Group's operating loss relates to continuing operations.

The notes and accounting policies form part of these interim financial statements

UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHS ENDED 30 JUNE 2013

The accounting policies and notes form part of these financial statements.

UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AT 30 JUNE 2013

The notes and accounting policies form part of these interim financial statements

UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED 30 JUNE 2013

The notes and accounting policies form part of these interim financial statements

NOTES TO THE FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED 30 JUNE 2013

1 Basis of accounting and accounting policies

The financial statements have been prepared in accordance with those International Financial Reporting Standards ("IFRS") and International Financial Reporting Interpretations Committee ("IFRIC") interpretations issued and effective or issued and early adopted as at the time of preparing these financial statements (August 2013).

The financial statements have not been audited and have been prepared on the historical cost basis. The principal accounting policies adopted are consistent with those adopted in the annual accounts to 31 December 2012.

2 Exploration expenditure and mineral properties

Mineral properties at 30 June 2013 represent accumulated costs to date incurred by Landore Resources Canada Inc., a subsidiary of Landore Resources Limited. On acquisition of Landore Resources Canada Inc. on 5 April 2006 the fair value of those costs incurred to date was considered to be £Nil. All subsequent expenditure in the period has been charged to the income statement in accordance with the group accounting policy.

3 Loss per share

The loss per share is based on the loss for the period and the weighted number of ordinary shares in issue during the period, being 356,617,527 (2012: 283,279,383).

Diluted loss per share

The potential ordinary shares which arise as a result of the options in issue are not dilutive under the terms of IAS 33 because they would not increase the loss per share. Accordingly there is no difference between the basic and dilutive loss per share.

4 Share capital

The company made allotments of ordinary 1p shares with an aggregate nominal value of £167,000 (before issue costs) during the year as follows:

5 Profit and loss reserve

6 Trade and other receivables

The Group's trade and other receivables include consideration receivable from Lamaune Iron Inc, a company under common control, for the sale of the Lamaune mineral property. The receivable is due by 10 December 2013, incurring interest at 3 per cent per annum, and is secured by the Lamaune mineral property. The parties to the loan agreement have agreed to extend the repayment date to 10 December 2014.

Enquiries:

Bill Humphries/Richard Prickett

Landore Resources Limited

Tel: +44(0)20 7409 7444

Angela Hallett / James Spinney

Strand Hanson Limited

Tel: +44(0)20 7409 3494