Mineral & Financial Investments Regulatory News (MAFL)

MINERAL & FINANCIAL INVESTMENTS 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 31st December 2015.

Highlights:

• Net assets of £1.38 million, or 10.06p per share (unaudited) 

• Believe NAV benefits from cautious positioning on companies with low costs and strong management

• Continue to hold Glencore for medium term on belief copper will recover from current weakness & Glencore remains well positioned to recover

• New position in rhodium acquired through ETF

• Legacy investments in Technology and Communication & Media are being reduced when appropriate

• Total cash at period end: £596,000, or 4.3p per share

Post period end:

• Evaluation of assets for strategic acquisitions continues

• Analysis of potential first strategic asset acquisition in advanced stages

• £120,000 realised from reduction in Tern plc interest, following recent uplift in share value

Chairman's Statement:

Mineral & Financial Investments' NAV increased to 10.06 pence during 2014, a 29.5% gain year on year. We have continued our work divesting and/or developing value from legacy investments within the Company. In addition we have derived some success from our tactical trading portfolio. The MAFL strategy is to provide exposure to the natural resource sector by either investing tactically in liquid, large cap, resources stocks following careful analysis of both company and commodity fundamentals or making strategic investments in the sector. While commodities prices remain volatile we continue to be cautiously positive regarding gold and also certain other metals we believe should be set for under-supply in the medium term. With this in mind, MAFL has taken a few positions in the metals space through ETFs, including in gold, and in certain of the platinum group metals.

The key to the MAFL tactical portfolio is ensuring that the portfolio remains liquid.

In addition to our work within the tactical portfolio MAFL has also been developing its strategic asset strategy. With a wide range of experience within MAFL our objective is to identify undervalued companies that need revitalising in order for them to move forward. Our intention is to take significant positions in such assets, to take board representation, and help move these companies forward. The Company's directors continue to make progress with discussions and potential opportunities.

It is probably worth noting that there is not a shortage of investment opportunities, but a shortage of acceptable investment opportunities.

MAFL intends to be a natural resource focused finance house that provides companies that want to move resources forward with financing and support. Our intention is to act as a full and supportive partner to companies while ensuring all interests are clearly aligned with that of the shareholders.

Until we have made strategic investments, our capital will be cautiously exposed to metal and mineral investments so that our shareholders can prudently benefit from mining sector performance. We continue to address legacy investments and, when appropriate, liberate value from these holdings.

So, while our first strategic investment has yet to be made, we believe our cautious investment of shareholders' capital has nevertheless yielded positive returns for our shareholders.

In the context of the wider industry, we believe the lack of new significant mineral discoveries, production cutbacks and continued slow, but positive global economic growth brings us one year closer to the inflection point for metal prices and the mining industry. We continue to believe that the mining super cycle remains intact, and that the period of correction is approaching its conclusion.

2014 was a very difficult year for commodities due to the slowing growth of China and, in the second half of the year, the very rapidly rising US dollar. We take heart in the positive changes occurring in India, and elsewhere in emerging markets. However, there were a few select areas of positive performance within the metal markets.

While silver was down 34%, zinc was up 13%. We were fortunate to have purchased zinc earlier in the year to benefit from the positive price movement. During the year we were successful in trading an investment in the uranium sector. We continue to be more positive towards precious metals than base metals. Our least favoured segment of the mining sector continues to be the bulk commodities. Although we recognize that bulk commodity miners will benefit from lower oil pricing, they remain plagued by slowed demand growth and increasing supply.

The current environment continues to be fraught with risks. We will continue to be cautious and vigilant on behalf of our shareholders.

Jacques Vaillancourt

Executive Chairman

Chief Investment Officer's Statement

The recent uptick in the price of gold has made it one of the best performing asset classes so far this year, albeit that we are less than a month in. Looking back a bit further, it's interesting to note that the gold price actually strengthened by around eight per cent over the whole of 2014 and allowing for the latest gains, proving that although there has been plenty of bearish talk flying around in the past few months, the reality could be construed somewhat differently. Certainly, the commentary to Mineral & Financial's previous NAV update, for the period to end September 2014, spoke about the Company's cautious optimism in regard to the future gold price. Following the recent uptick, we retain that cautious optimism, and continue to hold gold.

In general terms though, the commodities and mining equity markets remain in a depressed state. With that in mind, the Company has continued to take a cautious approach as far as equity investments are concerned. In the previous quarter we were able to sell out of BHP Billiton before the most recent falls in that company's share price, but we continue to hold Glencore on the basis that it has the least exposure to iron ore and that copper is likely to recover from its recent weakness.

In the most recent quarter the Company took a new position in rhodium, a metal which we believe is near the bottom of its price cycle and which looks set for gains as increased demand from car manufacturers weighs against a widening deficit in supply.

Elsewhere, there was a slight drop off in the value of our 1.4% holding in Cap Energy, the ISDX-quoted West African oil explorer, as the shares drifted in limited liquidity. However, there should be increased newsflow in 2015 regarding funding, seismic and other work on the off-shore prospects, and a potential move to Aim, and the Company is hopeful that that will have a corresponding impact on liquidity.

Finally, the Company took advantage of the recent near-tripling in the share price of Tern PLC to sell a significant portion of our 8.2 per cent holding. We retain a small 1.64 per cent holding although, given that Tern is not a resources company, this remains subject to review.

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 31st December 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.