LSAI.L Regulatory News (LSAI)

LONGSHIPS PLC ("Longships" or the "Company")

RESULTS FOR THE YEAR ENDED 31 DECEMBER 2012

Longships is pleased to announce its annual results for the year ending 31 December 2012.

The accounts are today being posted to the shareholders and will shortly be available on the Company's website, www.longshipsplc.com.

Enquiries:

Longships plc

Nathan Steinberg - Director Tel: 020 7845 7500

Westhouse Securities Limited

Richard Baty / Jonathan Haines Tel: 020 601 6100

CHAIRMAN'S STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2012

Dear Shareholder,

I present the Chairman's report for the twelve months ending 31 December 2012. During the period under review the Company reported a net loss of £200,325 (0.82p per share). This compared with a net loss of £175,250 (0.76p per share) for the year ended 31 December 2011, the increase being due to the costs associated with the Praetorian Resources Limited ("Praetorian Resources") transaction set out below.

On 4 July 2012, the company subscribed £2,308,010 in cash for ordinary shares and subscription shares in the capital of Praetorian Resources, a Guernsey-incorporated investment company. Following completion of this subscription, the Company transferred all of its holding in Praetorian Resources to shareholders. This return of capital was effected on 23 August 2012, following the necessary High Court approval, by an issue of B Shares which were then cancelled by the Company in consideration for the Company transferring to shareholders all its holding of ordinary shares and subscription shares in Praetorian Resources.

Following this capital reduction there was a change in market conditions in the small cap sector. As a result the Directors took the view that this residual cash balance less continuing running costs would be insufficient to attract a potentially rewarding reverse takeover transaction. Accordingly, on 21 December 2012, your board, encouraged by support from the existing shareholders, raised a further £900,000 as set out in note 8 to the financial statements. As a result of this additional funding, the Company's cash resources at the year-end were in excess of £1.3 million.

The Company is aware of a number of possible candidates that are looking to make their public debut via the use of a 'shell' and should any discussions progress with any third party company, further communication with shareholders will be made.

In summary your Directors remain focused on using the Company's cash resources on an impact reverse takeover transaction to enhance shareholder value.

Malcolm Burne

Chairman

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2012

STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2012

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2012

Significant non-cash transactions

On 21 August 2012, a sum of £2,308,006 standing to the credit of the Company's share premium account was capitalised by the issue of 4,616,013 B shares of 50 pence each at par. On 23 August 2012, the B shares were repurchased and cancelled by the Company in exchange for the Company's financial assets held at fair value.

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2011

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2012

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2012

1. ACCOUNTING POLICIES

Basis of preparation

The financial statements have been prepared in accordance with International Financial Reporting Standards as adopted by the European Union.

The financial information set out in the announcement does not constitute the Company's statutory accounts for the period ended 31 December 2012 or the year ended 31 December 2011. The financial information for the period ended 31 December 2012 and the year ended 31 December 2011 are extracted from the statutory accounts of Longships plc. The Company's auditors reported on those accounts and their report was unqualified.

The Annual Report for the period ended 31 December 2012, including the auditors' report, and the notice of Annual General Meeting ("AGM") will be posted to shareholders, as applicable, shortly and will be available from the Company's website. The AGM will be held at Level 2, 18 Pall Mall, London, SW1Y 5LU on 24 May 2013 at 10.00 am.

2. LOSS BEFORE TAXATION

3. EARNINGS PER SHARE

The calculation of earnings per share is based on the loss of £200,325 (2011: £175,250) and on the number of shares in issue, being the weighted average number of equity shares in issue during the period of 24,432,508 (2011: 23,080,002) ordinary £0.01 shares. The weighted average number of shares excludes the B shares, which were in issue for 2 days and conferred no voting or dividend rights on their holders. In the current year share options were cancelled but there was no dilutive effect of these share options on the basic earnings per share, as the option exercise prices were higher than the average market price in the period.

4. SHARE CAPITAL

Allotted, called up and fully paid:

Shares issued and cancelled during the year

On 21 August 2012, the company capitalised the sum of £2,308,006 standing to the credit of its share premium account by the issue of 4,616,013 B shares of £0.50 each to its shareholders on the basis of one B share for every 5 existing ordinary shares. To facilitate this transaction, 98 ordinary shares of £0.01 were also issued for cash at £0.13 per share.

On 23 August 2012, the High Court sanctioned the reduction of the company's share capital by cancellation of the B shares, which were duly cancelled in exchange for shares in Praetorian Resources, which had been acquired by the Company and designated "Financial assets held at fair value through profit or loss".

On 21 December 2012, the Company issued 45,000,000 ordinary shares of £0.01 each at a premium of £0.01 per share by subscription, raising £900,000.