Mineral & Fin Regulatory News (MAFL)

Mineral & Financial Investments Limited

("MAFL" or "the Company")

Unaudited Interim Results for the Six Months Ended 30 June 2014

Mineral & Financial Investments Limited today announces its unaudited interim results for the six months ended 30 June 2014.

Chairman's Statement

I believe the past six months have shown that the evolved strategy your board has set and that the management team is implementing is beginning to yield positive results. We are still not where we plan to be, but these results can provide some temporary satisfaction to shareholders. Our Net Assets, as of June 30, 2014 have risen 46 per cent from 12 months ago, to £1,377,000. Our cash position continues to be strong at £636,000. This represents 46% of our net asset value.

During the six month period ending June 30, 2014 M&FI generated a net profit of £311,000, equating to a return on equity of 26.8%. We continue to scour the marketplace for opportunities for our shareholders. We believe that we will make our first strategic investment before year-end.

Our strategy remains to invest in, finance and advise junior mining companies. We are seeking to provide capital, after thorough due diligence, to companies that have attractive mineral assets which we believe can progress to production. We will invest meaningfully (5% to 20%), expect our voice to be heard in the boardroom, and be willing to make follow-on investment if and when appropriate. We view ourselves as financial partners, not solely investors to the investee companies.

But until we deploy capital in our first strategic asset we must be highly protective of our capital and liquidity while also generating positive returns for our shareholders.

Mining company investments can be can be thought of as having three key elements: 1. The mineral assets; 2. The financial assets; 3. The human assets.

The cornerstone is an attractive mineral asset. If we can identify mineral assets which meet our criteria then we may consider an investment in a given company. We recognize that the past few years have starved the industry of capital. Capital remains very scarce for the mining industry as a whole.

But we can distinguish M&FI by being both willing and able to invest when few others can or will invest in the sector. This requires patience, discipline, intelligence, and a willingness to roll up our sleeves.

The metal markets continue to appear stable overall, but below the overall averages. Bulk commodities (i.e. iron ore, metallurgical and thermal coal) continue to weaken as slowed demand and slight levels of over-capacity are weighing these commodities down. We are unlikely to alter our position of not investing in the segment for the foreseeable future as we are uneasy about the fundamentals, and the amounts of capital required far exceed our current financial wherewithal.

The copper market has been steady despite a slight slowdown in demand due to production disruptions in Asia constricting global supply. Gold and silver markets appear to be building a base for an advance in 2015, while the PGM segment has performed well due to production disruptions in South Africa. We have been bullish on zinc and nickel markets as certain mines approach the end of their economic lives (at the current prices). Over the next 12 to 18 months the greatest investment opportunities will be in the precious metals segment as well as certain base metals (nickel, tin, lead and zinc).

As central bankers collectively begin releasing their grip on rates, which has kept rates artificially low, we believe that there is likely to be turmoil in capital markets. We are being cautious and vigilant while seeking to position ourselves to benefit from the expected market turbulence.

On behalf of the Board

Jacques Vaillancourt

Chairman

Chief Investment Officer's Statement

Junior mining markets remained depressed during the period, but there was some evidence of renewed strength at the larger end of the market, with majors putting in some impressive gains. As far as the metals were concerned it was a mixed picture, as iron ore weakened, copper fluctuated, gold flatlined and zinc and nickel gained markedly.

Accordingly, Mineral & Financial stuck to its stated strategy of focussing its investments on larger companies and on specific metals, rather than on the juniors. The Company also retained a significant portion of its assets in cash, such that at the period end there was £636,000 on hand, part of an overall investment portfolio valued at nearly £1.6 million.

Perhaps more significantly, the Company returned to profit after several loss-making periods, booking a £311,000 net profit.

During the period Mineral & Financial took positions in BHP Billiton, well-known as one of the world's major diversified miners, and in Independence Group, a mid-tier Australian company with exposure to nickel and gold production. Both investments performed well, with Independence Group in particular rising strongly, by more than 25 per cent. Mineral & Financial therefore took profits on this investment, and is now looking keenly for further opportunities in nickel, which may yet enjoy further strength in the coming months, after a slight recent pull-back.

The Company maintained its ETF positions in gold, platinum, and zinc, with gold steady across the period at around US$1,300 per ounce, platinum stronger by a few per cent on the back of turbulent industrial relations in South Africa, and zinc up markedly by nearly 15 per cent as stockpiles dwindle and the market begins to anticipate supply shortfalls.

Also performing strongly was the Company's long-standing investment in West African oil & gas specialist Cap Energy. Cap Energy is currently evaluating off-shore oil exploration opportunities in conjunction with a partner with considerable industry expertise, and is also anticipating an Aim listing in the near future.

Finally, Mineral & Financial continues to review its positions in its last remaining legacy assets. The Company retains a significant stake in Tern PLC, a technology specialist which is continuing in its efforts to raise new funds for investments. It also holds significant stakes in Milamber Ventures and Sutherland Healthcare. These positions remain under continuous review.

Alastair Ford

Chief Investment Officer

For further information please call:

Statement of comprehensive Income

for the 6 months ended 30 June 2014

Statement of Financial Position

as at 30 June 2014

Statement of Changes in equity

for the 6 months ended 30 June 2014

Statement of Cash flow

for the 6 months ended 30 June 2014

Notes to the unaudited interim statement

for the 6 months ended 30 June 2014

1. General information

The Company is a limited company quoted on AIM and is registered in the Cayman Islands.

The address of its registered office is 190 Elgin Avenue, George Town, Grand Cayman, KY1-9005, Cayman Islands. The financial statements are presented in Pounds Sterling which is the Company's presentational currency.

2. Basis of preparation

The interim financial statements of Mineral & Financial Investments Limited have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union (EU) and on the historical cost basis using the accounting policies which are consistence with those set out in the Company's Annual Report and Accounts for the year ended 31 December 2013.

This interim financial information for the six months to 30 June 2014 was approved by the board on 1st September 2014.

The unaudited interim financial information for the 6 months ended 30 June 2014 does not constitute statutory accounts. The comparative figures for the year ended 31 December 2013 are extracted from the statutory financial statements which contain an unqualified audit report.

3. Earnings per share

The diluted loss per share for the comparative periods, the 6 months ended 30 June 2013 and the year ended 31 December 2013, are the same as the basic loss per share as the losses in each period have an anti-dilutive effect.