Mineral & Fin Regulatory News (MAFL)

MINERAL & FINANCIAL LIMITED

("Mineral & Financial", "MAFL", or the "Company")

NET ASSET VALUE UPDATE

MAFL, the AIM quoted resources investment specialist, today announces an NAV and operations update on its activities for the period ended 30th September 2014.

Highlights

· Net assets of £1.38 million, or 10.04p per share (unaudited)

· Consolidation of recent NAV gains

· Tactical portfolio continues to focus on larger mining companies

· Profit taken on nickel investment

· Total cash at period end: £628,000, or 4.6p per share

Post period end

· Continuing to evaluate significant assets for acquisition

· Mixed outlook for mining markets

Chairman's Statement

The summer of 2014 saw major equity markets performing positively and global bond markets continuing to be robust. Despite these market indicators evidence of a global recovery points to an uneven spread of economic recovery across regions. Overall global economic activity is lower than initially expected at the dawn of the calendar year, especially within geographic regions that have been the demand drivers for raw materials. As a primary investor in developers and producers of commodities we continue to believe that a prudent path is best for our shareholders. Investment opportunities continue to multiply and we believe our defensive positioning will allow us to be comfortably positioned to make our first strategic investment in the mining space.

The IMF has, once again, lowered its global economic forecast by 0.4% for 2014, to +3.3%. The IMF's 2015 forecast for global economic growth has also been lowered to +3.8%. But of greater concern is the mounting evidence that global economic risks are rising, rather than declining.

Geopolitical tensions continue to mount, rather than to subside. We continue to be dumbfounded by the credit markets' unwillingness to demand greater returns for the risk levels currently seen in both G8 and G20 economies. This perhaps caused by central bankers willingly discussing economic risks, but being unwilling to alter administered rates to control these mounting economic risks.

We have underestimated the central bankers coordinated resolve and collective efforts to continue to keep rates lower, longer, than we would be expected. This is perhaps the cause for the markets' suspension of disbelief. The one area of noted failure by all G7 central bankers has been to create a 'healthy' level of inflation.

Nevertheless, now that the US Fed's Quantitative Easing (QE) is at an end and that the Fed Chairman has suggested that rates will rise, this creates a new type of disruption risk as rates are unlikely to rise only in the USA. US rates are a global reference point for virtually all credit markets. As US rates rise we believe there will be disruptions in most credit markets. This will most probably affect equity markets negatively.

As we enter the Q4-2014 period, equity markets have begun by correcting. Precious metal prices bouncing back from having tested their 5 year lows, by example gold has bounced off its $1,190/oz low three time in the past 2 years. A bottom may have been formed, from which a price ascent may be possible.

This is setting a very positive outlook in the mid-term for metal prices. In 2015 metals such as zinc and precious metals should do better as supply constraints increase, while we believe that iron ore, metallurgical and thermal coal will continue to be, at best, difficult areas within the mineral commodity markets.

We believe that prudence must be the watchword for the capital you have entrusted us with, nevertheless we see some very attractive opportunities that we may be able to seize without affecting our sturdy financial position. Our NAV at the end of the most recent period was 10.04 pence, a 29.2% increase since the beginning of the calendar year. We are confident that 2014 leading into 2015 will be a year of significant opportunity for Mineral & Financial Investments to continue creating value for our shareholders.

Jacques Vaillancourt

Executive Chairman

Chief Investment Officer's Statement

Since the Company's last quarterly update at the end of June 2014, the level of uncertainty in the mining and commodity markets has increased, with a weakening in gold and precious metals, and a decline in the equity valuations of the major mining companies as the iron ore price has rapidly declined.

With that in mind, the Company has traded out of BHP Billiton and into Glencore, which has a much more limited exposure to the iron ore price.

In addition, as reported at the interim stage, on 3rd September 2014, the Company also took profits on its investment in Independence Group, the Australian-quoted nickel and gold miner.

Against that difficult background, I am pleased to report that, following four consecutive quarterly NAV increases, the Company's net assets per share remained stable at 10.04 pence during the period, up fractionally from the 10.03 pence NAV reported at the end of June.

Mineral & Financial continues to take a conservative approach in the current markets, retaining a significant part of the portfolio in cash. However, the Company also holds significant equity stakes in two quoted vehicles - technology specialist Tern (8.2%), and oil and gas explorer Cap Energy (1.4%) and it was good to see progress from these two companies during the period.

Tern took small equity stakes in two technology companies as well as taking a 95 per cent stake in data security software company Cryptosoft, and the resulting upward momentum in the Tern share price was very welcome.

Cap Energy continues with the exploration and evaluation of its oil blocks offshore Guinea-Bissau and offshore Senegal, as well as with preparations for an admission to AIM in due course. Mineral & Financial looks forward to further updates

Notwithstanding the recent pullback in the gold price, the Company remains positive about the long-term prospects for gold in the context of a likely weakening in the dollar as the Federal Reserve seeks to stimulate an export-led recovery. Ongoing global political uncertainty, including events in the Middle East, is also likely to prove supportive to the price. Meanwhile, the global economy continues to recover, albeit slowly and with the occasional wobble. That dynamic should prove supportive for metals prices in the long-term.

Mineral & Financial continues to evaluate strategic investments, and will provide investors with a full update at the appropriate time.

Alastair Ford

Chief Investment Officer

For more information:

Katy Mitchell, WH Ireland +44 161 832 2174

Laurence Read, Director +44 20 3289 9923

Notes: The net asset value calculation is subject to audit and is made on the basis that the Company has 13,722,062 shares in issue. All listed investments, including investments on ISDX, are valued at the closing bid price as at 30th September 2014. The Company has an investment in one unquoted gold Company, which is currently valued at the price at which the gold Company in question last raised money, although this is subject to review.