Landore Regulatory News (LND)

LANDORE RESOURCES LIMITED

INTERIM STATEMENT

For the six months ended 30 June 2012

MANAGEMENT DISCUSSION AND ANALYSIS

FOR THE SIX MONTHS ENDED 30 JUNE 2012

General

The following discussion of performance, financial condition and future prospects should be read in conjunction with the interim consolidated financial statements of the Group and notes thereto for the period from 1 January 2012 to 30 June 2012. All amounts are stated in sterling.

Overview

Landore Resources Limited is listed on the AIM 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.

Results of Operations

The financial results for the six months to 30 June 2012 show a loss of £2,469,980 ( 2011 : loss £1,903,093). These results were in line with expectations and as a result of the increased exploration costs of £ 1,837,894

( 2011 : £1,337,695 ).

During the period under review approximately £2.26 million was raised from the issue of 30,100,000 shares.

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. The drilling programme on the B4-7 deposit has significantly enhanced the volume of the massive sulphide mineralization along the 650 metres of strike, the deposit remains open along strike and down dip. Exploration to the west indicates that there could be a significant extension of up to 600 metres. Further details are set out below:

The Junior Lake property

The Junior Lake property, 100% owned by Landore, is located in the province of Ontario, Canada, approximately 235 kilometres north-northeast of Thunder Bay, and is host to; the B4-7 Nickel-Copper-Cobalt-PGMs deposit, the VW Nickel deposit, the B4-8 prospect and numerous other highly prospective mineral occurrences.

The combined resources (Canadian National Instrument (NI) 43-101 compliant) of the VW and B4-7 deposits delineated to date, total 48,281 tonnes of nickel equivalent (NiEq), 82 per cent of which is in the Indicated category, these resources do not include any upgrade from this season's drilling campaign. Both deposits remain open down dip and along strike to the east and west.

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. In Q1 2010, a NI 43-101 compliant report and resource estimate upgrade for the B4-7 deposit was completed. The resource reported 26,521 tonnes NiEq, at a 0.25% Nickel cut-off.

The drilling campaign started in February 2012, aimed at expanding the B4-7 deposit and providing adequate drill density to bring inferred portions of the deposit to indicated status, is now complete. In total, 81 diamond core NQ size holes and 4 re-entered holes (0412-367 to 0412-448 and 0409-202, 0409-237/238 and 0411-359) for 15,868 metres, have been completed.

B4-7 mineralised intersections include:

*The actual true thickness of mineralisation is estimated to represent between 75-80% of the intervals shown in the above table.

Additionally, drill-hole 0412-437 revealed encouraging zinc results with 1.32 metres at 5.87%Zn, 0.22% Ni, 0.50% Cu, and 0.04% Co.

These significant drill results have successfully increased the potential tonnage of the B4-7 deposit, most notably within the upper 150-metre portion of the deposit along the eastern 500 metres of strike length. Drilling consistently intersected the B4-7 massive sulphide main zone through this 500 metre section. Drill testing has shown that the mineralisation in this section extends to the surface.

Encouraged by these results, Landore reviewed all assays from drill-holes 0412-367 to 0412-424 and re-entered holes 0409-202, 0409-237/238 and 0411-359. Samples from these drill holes had initially been submitted to Landore's primary laboratory for exploration-grade analysis with ore grade analysis triggered at a threshold metal level.

Significant mineralised intersections from these drill-holes were re-submitted to the laboratory for full ore grade analysis. Results from this testing have indicated average grade increases of approximately 8.1% for nickel, 1.6% for copper, and 4.4% for cobalt within these intersections.

Re-evaluated mineralised B4-7 intersections include:

*The actual true thickness of mineralisation is estimated to represent between 75-80% of the intervals shown in the above table.

Accordingly, Landore modified its B4-7 analysis protocol to include nickel and copper assaying using strict ore grade methodology, and lowered the trigger limit for cobalt ore grade re-analysis. All drill-holes subsequent to 0412-424 (comprising of 0412-425 to 0412-448 and re-entered holes 0409-222 and 0409-257) have followed this new protocol.

2012 Planned Works

The results of the current drilling campaign on the B4-7 deposit are highly encouraging having significantly increased the potential tonnage amenable to open pit development.

Landore has initiated an in-house resource upgrade, including a full review of all quality assurance-quality control (QAQC) data, geological and grade wireframe modelling, internal resource estimate and the updating of all text required for the final NI43-101 report. On completion, Landore will submit all data for an independent audit and external resource upgrade of the B4-7 deposit. The resource upgrade is anticipated for completion in early Q4 2012.

Pre-feasibility studies on the combined B4-7 and the VW deposits will be initiated in Q1 2013.

A drilling program to extend the B4-7 to the west is currently being planned to commence in Q4 2012.

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 2012

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 2012

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

UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AT 30 JUNE 2012

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 2012

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

NOTES TO THE FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED 30 JUNE 2012

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 2012).

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 2011.

2 Exploration expenditure and mineral properties

Mineral properties at 30 June 2012 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 283,279,383 (2011: 200,777,391).

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 £302,735 (before issue costs) during the year as follows:

30,100,000 shares were issued for cash and the balance in settlement of a fee to an adviser.

5 Profit and loss reserve

6 Trade and other receivables

The Group's trade 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 10th December 2012, 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 10th December 2013.

7 Post balance sheet events

On 4 July 2012 the Group issued 500,000 of ordinary share options, each with a nominal value of 1 pence, which were valued at 6.5 pence per share at the time of issue.