New World Resources Regulatory News (NWR)

Amsterdam, 23 February 2012

New World Resources

Preliminary results for the full year 2011

New World Resources Plc ('NWR' or the 'Company') today announced its financial results for the year ended 31 December 2011.

Financial highlights

§ Consolidated revenues[1] of EUR 1,632 million, up 3%

§ EBITDA1 of EUR 454 million, down 2%

§ Underlying net profit of EUR 130 million, up 1%[2]

§ Basic EPS of EUR 0.47

§ Proposed final dividend of EUR 0.07 per A share, bringing FY dividend to EUR 0.23

§ Net debt of EUR 391 million; no significant short term debt maturities

Operational highlights

§ LTIFR[3] improved by 8% to 7.87

§ Coal production of 11.2Mt, and external sales of 10.6Mt

§ Coke production of 770kt, and external sales of 555kt

§ Broke ground at Debiensko Mine in Poland

§ Intention to explore the 1.5bnt hard coal resource at Frenstat Mine

§ Reincorporation in the UK and inclusion in FTSE index series

2012 outlook

§ Q1 coking coal and coke prices agreed at EUR 142/t and EUR 311/t, respectively

§ Thermal coal average prices for 2012 agreed at EUR 74/t

§ Coal production and sales targets of 10.8-11Mt and 10.25-10.5Mt, respectively

§ Expected external coal sales split of 48% coking coal and 52% thermal coal

§ Coke production and coke sales targets of 700kt and 600kt respectively

§ Mining unit costs expected to be broadly flat, ex-FX fluctuations

 Expected CAPEX of EUR 250 million of which EUR 40-50 million for Debiensko

Chairman's statement

"With an EBITDA of Euro 454 million, NWR has delivered one of its best financial performances ever in a period that has been characterised by severe challenges in the global economy. The progressive deterioration in business confidence in the Eurozone during the second half of 2011, combined with an uncertain macroeconomic outlook significantly compounded the slowing down in demand for steel and its raw materials in our target market. On the other hand thermal coal, as an established and reliable energy resource for European power generators, has proven to be less sensitive to the macro environment, and we continue to see a strong trend in 2012.

The most significant milestone for NWR during 2011 was our decision to commit to our organic growth strategy by starting work on opening the Debiensko Mine. This is a 190 million tonnes hard coal deposit (7/8 coking coal and 1/8 thermal coal) in southern Poland over which a Polish subsidiary of NWR has a 50-year mining license. Our decision was based on a thorough feasibility study of the proposed mine together with our assessment of long-term market considerations. During the year, we assembled an experienced international project team and we broke ground and commenced excavation of the box-cut for the first of the two planned slopes in December. The project is advancing and we will invest EUR 40-50 million in 2012 as we work towards bringing the mine into production during 2017. Looking further into new opportunities, we announced our intention to explore the hard coal resource at the Frenstat Mine in the Czech Republic.

Throughout 2011 we continued to benefit from our considerable prior investments into our underground mining equipment, thus enabling us to partially mitigate the negative effects of cash cost inflation, as well as the geological challenges of mining ever deeper underground. Mining at around 1,000 metres below the surface poses significant challenges in terms of both safety and production. Hence being able to exceed our overall production targets for the year whilst further reducing our Lost Time Injury Frequency Rate, underlines the benefits of these investments as well as the commitment and discipline of our dedicated workforce.

As a result of year-on-year improved pricing in 2011, together with the partial mitigation of input cost inflation, our mining EBITDA margin remained at 32 per cent in 2011, and our underlying profit for the period was stable year-on-year. For 2012 we expect our mining unit costs to remain broadly flat, excluding any impact from foreign exchange fluctuations.

Safety is a key priority in NWR. The main measure of overall safety performance, Lost Time Injury Frequency Rate, has improved by 8 per cent to 7.9 lost-time injuries per million hours worked. However, the tragic loss of five employees at our mining operations during 2011 reminds us of the severity of the hazards stemming from our geological and mining environment, and hence we continue to place rigorous focus on ways to limit the human impact of these.

Our coke sales suffered due to lower capacity utilisation by our steel customers. Our much improved flexibility to increase the proportion of more demand-stable foundry coke in our sales mix, combined with the reduced cost profile of the new single site operation, helped us mitigate the impact of the weak merchant coke markets in the second half of the year. Despite this, our coke business made an overall loss for the year.

Given our operations are at the hub of the CEE region's manufacturing base, we continue to see significant value potential in the business model of NWR. Our strategy is based upon ensuring sustainable coal production to serve a growing demand for our products in a region where competitor coal production continues to decline. Poland produced around 76 million tonnes of hard coal last year, 10 million tonnes less than three years ago and only half of what it produced back in 1990.

Despite the difficult macroeconomic environment, car production in the region, one of the key drivers of local steel production, grew at a rapid pace in 2011 (up 12% in the Czech Republic and 13% in Slovakia), which reinforces our belief in the long-term prospects of the steel sector in the CEE. Moreover, our move to quarterly pricing of coking coal has allowed us to align ourselves with the global pricing trend and has, at the same time, brought more visibility into the regional price formation process.

The outlook for thermal coal continues to be positive. With renewed investments in coal-fired power plants in countries such as Germany (particularly as a consequence of the Fukushima nuclear disaster), thermal coal seems well positioned to play an ever-increasing role in the regional energy mix.

The reincorporation of NWR in the United Kingdom and subsequent inclusion in the FTSE 250 and FTSE 350 Mining indices has increased our visibility amongst the international investment community, to whom NWR represents an opportunity to gain exposure to both the global as well as regional hard coal growth phenomena.

The company has thus performed well against a backdrop of the recent macroeconomic uncertainty and both our business model and our long-term growth strategy remain intact. Therefore, in line with NWR's stated dividend policy of distributing 50 per cent of the Mining Division's consolidated annual net income over the course of the business cycle, I am pleased to propose a final dividend of EUR 0.07 per share, which, if approved by the Annual General Meeting in April, will bring the total dividend for FY 2011 to EUR 0.23 per share."

Mike Salamon, Executive Chairman of NWR

Selected consolidated financial and operational data

(1) From continuing operations.

(2) In thousands of tonnes.

(3) Including contractors.

(4) Includes EUR 82 million one-off gain from the sale of NWR Energy and EUR 23 million positive tax refund.

The Company's revenues increased by 3% in FY 2011 compared to FY 2010 mainly due to increased prices for both coking coal and thermal coal.

Main operating expenses (comprising consumption of material and energy, service and personnel expenses) from continuing operations increased by 11% in FY 2011 compared to the previous year (8% excluding effects of foreign exchange).

This increase in costs reflected significant input cost inflation resulting from higher European steel prices, electricity prices, and increased contractor costs as well as more intensive underground development works and scheduled maintenance of mining equipment. Personnel expenses increased by 4% on a constant currency basis, reflecting a 4% increase in basic wages in 2011. Service expenses for the period include one-off advisory and other costs related to the reincorporation process.

EBITDA from continuing operations of EUR 454 million for FY 2011 was 2% (1% Ex‑FX) lower than in the previous year.

Depreciation increased by 4% to EUR 167 million in FY 2011 compared to the previous year (1% on a constant currency basis), mainly due to higher depreciation charges on new mining equipment (POP 2010) and the new No. 10 coking battery.

Operating profit from continuing operations was EUR 276 million, 6% lower than in the previous year.

Net financial expenses decreased by 22% to EUR 89 million in 2011. Both financial income and financial expenses decreased, mainly as a result of lower currency effects. In 2010, the financial expenses were also impacted by fees and interest expenses related to the proposed Bogdanka acquisition, as well as fees related to the repayment in full of the Senior Secured Facility.

Profit before tax from continuing operations was EUR 187 million.

NWR recorded net income tax expense of EUR 57 million in FY 2011, compared to a EUR 31 million net expense in the same period of 2010, which included a one-off tax refund associated with the reversal of Czech tax authority's position on certain interest expenses that were previously deemed non tax-deductible.

NWR's consolidated profit for the period was EUR 130 million, down 44% compared to the same period in 2010. Excluding the one-off EUR 82 million gain on the sale of the Energy business and the tax refund of EUR 23 million in the previous year, the consolidated underlying profit for the period increased 1% from EUR 128 million in FY 2010.

The basic earnings per A share for the year ended 31 December 2011 amounted to EUR 0.47.

Operating cash flow after working capital movements and before taxes and interest increased to EUR 382 million, up 5% compared to FY 2010. Net operating cash flow for FY 2011 was EUR 258 million, 18% lower than in FY 2010 due to increased interest payment (2018 Notes) as well as higher income tax payments.

Total capital expenditure in FY 2011 was EUR 194 million, 12% below the FY 2010 level, and broadly in line with our guidance. Maintenance and safety-related CAPEX for both the mining and the coking segments accounted for approximately EUR 100 million, while EUR 90 million was invested in operational improvements and development of existing operations. CAPEX spent on Debiensko in FY 2011 was EUR 5 million.

As at 31 December 2011, the Company's net debt was EUR 391 million, up 22% from 31 December 2010, mainly due to the payment of the final dividend for the 2010 financial year (EUR 58 million and EUR 40 million B shares dividend) and the interim dividend for the 2011 financial year (EUR 43 million). The Company's first significant debt maturity is not until 2015. During 2012 we will continue to watch the markets closely so that we are able to take advantage of opportunities either to raise new financing or to refinance our debt as they arise.

Dividend

NWR's dividend policy is to target distribution of approximately 50% of the Mining Division's consolidated annual net income over the course of the business cycle. Consistent with this policy, the Board of Directors has proposed a final dividend for the full-year ended 31 December 2011 of EUR 0.07, which will be paid to A share holders on 2 May 2012. Payment of the final dividend is subject to shareholder approval at the Annual General Meeting, which will be held on 26 April 2012.

Subject to various exceptions and exemptions, shareholders are generally subject to Dutch dividend withholding tax at the rate of 15% on dividends distributed, which the Company is required to withhold and account for to the Dutch tax authorities. Shareholders should consult their own tax advisers as to their particular tax consequences for receiving dividends from NWR.

The dividend for NWR is declared in Euros. The shareholders may elect to receive this dividend in Pounds Sterling or Euros. The default election will be deemed to be Euros if a shareholder expresses no preference. The Pound Sterling amount payable will be determined by reference to the exchange rate applicable to the Euro on 17April 2012.

The timetable in respect of the final dividend will be:

Ex-dividend London, Prague and Warsaw Stock Exchanges 28 March 2012

Record date 30 March 2012

Currency election closing date 13 April 2012

Euro exchange rate fixed and announced 17 April 2012

Annual General Meeting 26 April 2012

Payment date 2 May 2012

The record time is close of market on the record date as defined above.

Further details regarding dividend payments, together with currency election and dividend mandate forms, are available for download from NWR's website (www.newworldresources.eu) or from the Company's registrars.

Coal segment

Revenues for the coal segment increased by 11% mainly due to higher realised prices for both coking and thermal coal, and increased thermal coal sales volumes.

Total coal production in FY 2011 was 2% lower than in FY 2010, and external coal sales were 1% lower year on year, both slightly ahead of our guidance mainly due to higher volumes of thermal coal.

External coking coal sales in FY 2011 comprised approximately 53% hard coking coal and 47% semi-soft coking coal. Thermal coal sales in the period were approximately 77% thermal coal, 6% PCI coking coal and 17% middlings.

Given the ultimate consumer of PCI coking coal is the steel making industry, we started to classify its sales as coking coal as of 1 January 2012, in line with industry practice.

Since April 2011, 100% of our coking coal sales have been priced on a quarterly basis in line with international markets. The average agreed price of coking coal, including PCI coking coal, for delivery in the first calendar quarter of 2012 is EUR 142 per tonne, a decrease of 13% compared to the fourth quarter realised price and in line with developments in the global coking coal markets. This average price is based on expected Q1 2012 coking coal sales of approximately 54% hard coking coal, 38% semi-soft coking coal, and 8% PCI coking coal.

NWR sells 100% of its thermal coal volumes on a calendar year basis. As previously announced, the average price agreed for thermal coal sales for the 2012 calendar year is EUR 74 per tonne, an 11% increase compared to the 2011 average realised price and reflects strong regional demand for thermal coal as a source of power generation. This average price is based on expected FY 2012 mix of 82% thermal coal and 18% middlings.

Main operating expenses for the coal segment increased by 13%, or 10% excluding the impact of currency movements. This increase was mainly driven by continuing mine development, as well as higher input prices of energy and steel, scheduled maintenance of mining equipment and increased costs for contractors and personnel.

Mining costs per tonne, which do not include the cost of transportation, rose by 12% compared to FY 2010 excluding FX fluctuations, mainly due to the cash cost inflation detailed above, as well as 2% decrease in production.

The coal segment generated EBITDA of EUR 483 million, a 10% increase on the comparable period of 2010. The EBITDA margin remained flat at 32% and EBITDA per tonne of production was EUR 43, up 12% from the comparable period in 2010. The total coal production per coal segment employee (including contractors) reached 666 tonnes of coal in 2011.

Outlook

As previously announced, given the still uncertain short-term market outlook, NWR's management has retained some flexibility in terms of 2012 coal production and coal sales targets. NWR expects production between 10.8 and 11Mt and external sales between 10.25Mt and 10.5Mt in 2012. The external sales split is expected to be approximately 48% coking coal, including PCI coking coal, and 52% thermal coal in 2012.

We have reviewed our longer-term plans and NWR now expects to increase the proportion of coking coal in its external sales mix above 50% over the medium term (2‑3 years). Any further increase towards our historical levels is dependent on the outcome of our ongoing underground development works as well as favourable mining conditions. Longer term, the additional production from Debiensko is expected to further increase the proportion of coking coal in the overall coal mix.

NWR expects its mining unit costs to remain broadly flat in 2012, excluding any impact from foreign exchange fluctuations.

Coal segment capital expenditure is expected to be around EUR 250 million in 2012, including EUR 40-50 million for Debiensko. In coming years the ongoing CAPEX will be used mainly to finance incremental underground development work aimed at maintaining production volumes and improving the coal mix. Further it includes expenditure for replacement and renewal of longwall sets, development sets, maintenance of mining equipment, as well as safety-related CAPEX.

Coke segment

Revenues for the coke segment decreased by 31%, as the increase in prices was more than offset by the decrease in sales volumes, due to our reduced coke capacity, as well as due to weak demand for merchant coke in the second half of 2011.

Coke production and coke sales volumes decreased by 23% and 50% respectively in FY 2011 compared to FY 2010 mainly due to the closure of the Jan Sverma coking plant at the end of 2010, which reduced the Company's production capacity but which has significantly enhanced our cost position.

Coke sales in FY 2011 were approximately 67% foundry coke, 23% blast furnace coke, and 10% other types.

The average price agreed for coke sales during the first calendar quarter of 2012 is EUR 311 per tonne, a decrease of 11% compared to the fourth quarter realised price, as a result of continued weakness on the European coke market, in particular for blast furnace coke. This average price is based on the expectation of Q1 2012 sales to be approximately 70% foundry coke, 20% blast furnace coke, and 10% other types.

Main operating expenses for the coke segment decreased by 10% in 2011. Excluding the impact of currency appreciation, main expenses for the coke segment decreased by 12% in the period, as lower production was partly offset by the increased unit price of coking coal.

Despite the 23% decrease in production, coke conversion costs per tonne, which exclude the cost of coal inputs and transportation, decreased by 17%, excluding the impact of currency movements, driven by the modernisation and consolidation of our coke production facilities in a single plant.

Outlook

As previously stated, NWR expects to produce 700kt and sell 600kt of coke in 2012.

Coke unit conversion costs are expected to increase, in line with the expected decrease in production in 2012.

Health and safety

The safety of our people is our highest priority and our Lost Time Injury Frequency Rate showed an 8% improvement in 2011 to less than eight loss-time injuries per one million hours worked across our mining operations. This rate has halved since 2007 before our extensive investment in the state-of-the-art mining and safety equipment. We have also benefited from intensified safety training for our people together with the incentives now provided under our Continuous Improvement Programme to come up with ideas for both efficiency-enhancement as well as safety-improvement.

Following the two fatal accidents in July 2011 caused by severe rock bounces in one of our mines, we have introduced even stricter safety procedures throughout our operations in order to minimise the human impact of such tectonic events. Management has taken additional measures for the more bounce prone areas by way of extending the protected zones, and installing new equipment to better identify increasing geological stress.

Every accident is investigated by a committee comprised of members of the Czech Mining Authority in Ostrava, Mine management, OKD management, the trade union and the local police. Appropriate measures are taken based on the findings of these investigations.

Development projects: Debiensko

In June 2011, NWR announced that its Board of Directors had given its final approval for the Debiensko project, based on the outcome of the Detailed Feasibility Study, an extensive internal review of the project as well as long-term market considerations.

The construction of the Slope 1 portal opening (box-cut) commenced in December 2011 and is well underway. Currently, we are negotiating contracts with developers of the Slope. Simultaneously, we continue to acquire land and surface assets, and to construct surface facilities. The Slope 1 development is scheduled to commence in the second half of 2012.

NWR holds a 50-year mining license, granted in 2008, to extract coal from Debiensko and in 2010 we applied for an amendment to this license to enable the Company to mine the additional shallower coal seams at Debiensko. Approval for this is expected during 2012 following the completion of the environmental review.

Total reserves in Debiensko amount to 190Mt of coal, of which 7/8 is expected to be coking coal and 1/8 thermal coal. The quality mix of the coking coal is expected to be 2/3 hard coking coal and 1/3 semi-soft coking coal. We expect the average production to be approximately 2 million tonnes per annum from 2017 onwards. Mining unit costs at Debiensko are estimated to be around 10-15% lower compared to our current operations.

Total costs for the Debiensko project include development CAPEX of EUR 411 million, as well as EUR 133 million of pre-production operating costs, associated with the existing infrastructure. The expected Debiensko CAPEX in 2012 is EUR 40-50 million.

Full Year 2011 earnings analyst conference call.

NWR management will host an analyst and investor conference call on 23 February 2012 at 10:00 GMT (11:00 CET) to discuss the financial results for the period. The call will include a brief Q&A session.

The presentation will be also available via a live video webcast on www.newworldresources.eu. The webcast will be also archived on the Company's website.

Dial in details:

UK & the rest of Europe (Toll) +44 (0)20 7136 2054

Czech Republic (Toll free) 800 701 231

Poland (Toll free) 00 800 121 4330 

The Netherlands (Toll) +31 (0)20 713 2789

US (Toll) +1 646 254 3367

Access Code 9015354#

A replay of the conference call will be available for one week by dialling:

+44 (0)20 7111 1244 (Access code: 9015354#)

For further information:

Investor Relations

Radek Nemecek

Tel: +31 20 570 2244

Email: rnemecek@nwrgroup.eu

Corporate Communications

Petra Masinova

Tel:+31 20 570 2229

Email: pmasinova@nwrgroup.eu

Website: www.newworldresources.eu

About NWR

New World Resources Plc is one of Central Europe's leading hard coal and coke producers. NWR produces quality coking and thermal coal for the steel and energy sectors in Central Europe through its subsidiary OKD, the largest hard coal mining company in the Czech Republic. NWR's coke subsidiary OKK, is Europe's largest producer of foundry coke. NWR currently has two development projects in Poland, Debiensko and Morcinek, which form part of NWR's regional growth strategy. NWR is a FTSE 250 company, with listings in London, Prague and Warsaw.

This unaudited consolidated financial information is prepared for New World Resources Plc, which was established on 30 March 2011 and became the holding company of New World Resources N.V. on 6 May 2011 as described in this document. No change in control occurred and the comparative period is derived from New World Resources N.V. consolidated financial information for the year ended 31 December 2010.

New World Resources Plc

Consolidated income statement

The notes on pages 22 to 44 are an integral part of this condensed consolidated financial information.

New World Resources Plc

Consolidated statement of comprehensive income

The notes on pages 22 to 44 are an integral part of this condensed consolidated financial information.

New World Resources Plc

Consolidated statement of financial position

New World Resources Plc

Consolidated statement of financial position (continued)

The notes on pages 22 to 44 are an integral part of this condensed consolidated financial information.

New World Resources Plc

Consolidated statement of cash flows

New World Resources Plc

Consolidated statement of cash flows (continued)

The notes on pages 22 to 44 are an integral part of this condensed consolidated financial information.

New World Resources Plc

Consolidated statement of changes in equity

The notes on pages 22 to 44 are an integral part of this condensed consolidated financial information.

New World Resources Plc

Consolidated statement of changes in equity

The notes on pages 22 to 44 are an integral part of this condensed consolidated financial information.

Corporate Information

New World Resources Plc ('NWR Plc' or the 'Company') is a public limited liability company with its registered office at One Silk Street, London EC2Y 8HQ, United Kingdom. The Company is the sole producer of hard coal in the Czech Republic and one of the leading hard coal and coke producers in Central Europe. NWR Plc produces coking and thermal coal through its subsidiary OKD, a.s. ('OKD') and coke through its subsidiary OKK Koksovny, a.s. ('OKK'). NWR Plc and its subsidiaries are collectively referred to as 'the Group'.

The Group operates four mines and four coking batteries in the Czech Republic and currently has two development projects in Poland. The Group serves several large Central and Eastern European steel and energy producers, among others in the Czech Republic, Poland, Austria, Slovakia, Hungary and Germany. Among its key customers are Arcelor Mittal Steel, U.S. Steel, Dalkia, Moravia Steel, voestalpine, Verbund and ČEZ.

The Group's largest source of revenue is the sale of coking coal, which accounted for 49% of total revenues during the year ended 31 December 2011, followed by the sale of thermal coal (27%) and the sale of coke (12%).

The majority of coal sales are based on long-term framework agreements. Thermal coal sales are priced on an annual calendar year basis. In 2010, a majority of coking coal sales was priced annually for the Japanese Fiscal Year ending in March 2011. Since April 2011, 100% of coking coal sales are priced quarterly. This change allows the Group to better align its coking coal pricing cycle with that of the international coal markets. All of the Group's coke sales are priced quarterly.

Reincorporation

The Company was incorporated on 30 March 2011 as part of a corporate reorganisation under which it became the new UK incorporated holding company for the businesses previously held by New World Resources N.V. ('NWR NV').

The reorganisation was undertaken by way of an offer by the Company to the shareholders of NWR NV to exchange shares in the Company for their shares in NWR NV on a one-for-one basis. The condition of the offer relating to acceptances was met on 5 May 2011 ('the first closing date') and the Company became the new holding company when it issued shares to accepting shareholders of NWR NV on 6 May 2011. At that date the Company held approximately 97.0% of the A shares of NWR NV and 100% of its B shares. The A shares of NWR NV that were not tendered into the offer at that date represented a non-controlling interest in NWR NV, that was decreased by additional closings and private share-for-share exchange to 0.2% as at 31 December 2011. The Company is currently in the process of a compulsory squeeze-out under which it intends to acquire the remaining shares in NWR NV. Further details are provided on page 25.

In accordance with the requirements of International Financial Reporting Standards as adopted by the European Union ('adopted IFRS'), the Company's consolidated financial results and financial position prior to the first closing date are those of NWR NV.

Financial Results Overview

Revenues. The Group's revenues increased by 3% (1% on a constant currency basis), from EUR 1,589,990 thousand in the year ended 31 December 2010 to EUR 1,632,491 thousand in the year ended 31 December 2011. This is mainly attributable to increased revenues from thermal coal, driven by both higher prices and sales volumes, as well as to increased revenues from coking coal, driven by higher prices, partly offset by lower sales volumes.

Operating expenses. Total operating expenses including depreciation and amortisation, net of other operating income and gain/loss from sale of material and property, plant and equipment, increased from EUR 1,260,492 thousand to EUR 1,394,131 thousand or by 11% (8% on a constant currency basis) for the year ended 31 December 2011 compared to the same period in 2010. This is attributable mainly to the increase in:

·; mine development and planned maintenance of mining equipment, resulting in higher mining material, spare parts and maintenance costs;

·; basic wages by 4% (in CZK terms) as agreed with the Trade Unions resulting in higher personnel expenses;

·; contractors' unit costs per shift and contractors' headcount, resulting in higher cost for contractors and

·; prices of externally purchased coal and electricity, resulting in higher costs of external coal used for own coke production and higher energy costs for coal mining,

·; advisory expenses as a result of reincorporation process and tax provision.

EBITDA. EBITDA slightly decreased by 2% from EUR 464,177 thousand in the year ended 31 December 2010 to EUR 453,993 thousand in the year ended 31 December 2011. Increase in revenues of EUR 42,501 thousand was more than offset by an increase in operating expenses net of changes in inventories of EUR 52,685 thousand.

Basis of Presentation

General information

The condensed consolidated financial information ('financial information') presented in this document is prepared for the year ended 31 December 2011, with the year ended 31 December 2010 as the comparative period.

The statutory accounts for 2011 will be finalised on the basis of the financial information presented by the directors in this preliminary announcement and will be delivered to the registrar of companies in due course.

The comparative figures for the financial year ended 31 December 2010 are not the Company's statutory accounts for that financial year. As the Company was incorporated in 2011, it was not required to prepare statutory accounts for the financial year ended 31 December 2010. The financial information for 2010 is derived from the statutory accounts of New World Resources N.V. for 2010. The auditor has reported on those accounts; the report was unqualified.

The financial information includes New World Resources Plc and its subsidiaries. The Company's significant subsidiaries as of 31 December 2011 are:

* representing 100% ownership by New World Resources N.V.

The objective of the Company is to act as a holding entity for the Group.

See note 'Changes in the consolidated group' on page 25 for information on the comparable period.

All of the Company's consolidated subsidiaries are incorporated in the Czech Republic, with the exception of NWR KARBONIA S.A. ('NWR Karbonia'), which is incorporated in Poland and NWR NV which is incorporated in the Netherlands.

Statement of compliance

The financial information is prepared based on the recognition and measurement criteria of adopted IFRS.

The financial information does not include all of the information required for full annual financial statements and should be read in conjunction with the consolidated financial statements of NWR NV as at and for the year ended 31 December 2010.

The financial information has been prepared on the basis of accounting policies and methods of compilation consistent with those applied in the 31 December 2010 annual consolidated financial statements, which are contained within the 2010 Annual Report and Accounts of NWR NV, which are available on the Group's website at www.newworldresources.eu.

Accounting policies

The accounting policies applied by the Group in the financial information are identical to those applied in the 31 December 2010 annual consolidated financial statements.

Basis of preparation

The financial information is prepared on the historical cost basis, except for derivative and certain other financial instruments, which are stated at their fair value. It is presented in Euros (EUR) and is rounded to the nearest thousand. Financial information of operations with functional currency other than EUR was translated to the Group presentation currency (EUR).

EUR is the functional currency of the Company and NWR NV, Polish Zloty (PLN) is the functional currency of NWR Karbonia and Czech Koruna (CZK) is the functional currency of all the remaining consolidated companies in the Group.

The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates. In preparing these condensed consolidated interim financial statements, the significant judgements made by the management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those applied to the consolidated financial statements of NWR NV for the year ended 31 December 2010.

Changes in the consolidated group

The changes listed below include all changes in the consolidated group for the period from 1 January 2010 to 31 December 2011, to enhance comparability of the presented periods.

New subsidiary

A new subsidiary NWR Communications, s.r.o. was established on 6 June 2011 to perform public relations and corporate communication activities.

Reincorporation

On 11 April 2011, the boards of NWR NV and NWR Plc announced a recommended share offer for all of the A ordinary shares of EUR 0.40 each in the capital of NWR NV (the 'Existing A shares') (the 'Offer'). The condition of the Offer relating to acceptances was met on 5 May 2011 ('the first closing date') and the Company became the new holding company when it issued 256,780,388 new A shares to accepting shareholders of NWR NV on 6 May 2011 (being approximately 97% of the Existing A shares).

In addition, after the Offer became wholly unconditional in all respects, NWR Plc acquired 10,000 B ordinary shares in the share capital of NWR NV by issuing the same number of new B ordinary shares of NWR Plc (being 100% of the B ordinary shares in the capital of NWR NV).

NWR Plc issued the above number of A and B Shares with a nominal value of EUR 7.00 per share. The difference between the nominal value of the new A and B Shares and carrying value of net assets acquired is recognized as a change in consolidated equity, resulting in the recognition of negative merger reserve of EUR -1,630,472 thousand.

On 11 May 2011, the Company reduced its share capital by reducing the nominal value of each of the A and B ordinary shares from EUR 7.00 per share to EUR 0.40 per share. This reduction of capital created distributable reserve of approximately EUR 1,694,817 thousand for NWR Plc.

After the subsequent four closings, the Company received valid acceptances in respect of approximately 99.6% of the Existing A shares in total, resulting in a non-controlling interest decrease of about 2.6%, as of 30 June 2011.

On 19 July 2011, NWR Plc initiated a compulsory squeeze-out procedure in accordance with Dutch law under which NWR Plc intends to acquire all remaining outstanding shares in NWR NV.

On 30 September 2011, pursuant to a private share-for-share exchange, NWR Plc acquired an additional 397,969 Existing A shares, taking NWR Plc's total shareholding in NWR NV to 264,119,398 Existing A shares (approximately 99.8%), in exchange for the Company issuing 397,969 A shares at a value of EUR 6.35 per share, resulting in the recognition of a share premium of EUR 2,368 thousand.

The issuances of A shares after each closing date and in connection with the private share-for-share exchange were treated as acquisitions of the non-controlling interests with the impact recognised directly into equity.

The reincorporation did not lead to a change in control and did not result in any changes to the day-to-day operations of the Group.

Disposal of energy business

On 24 June 2009 the Board of Directors of NWR NV ('the Board') approved its intention to sell the energy business of the Group. The energy business of the Group entailed NWR Energy, a.s., NWR Energetyka PL Sp. z o.o. and CZECH-KARBON s.r.o. Based on the Board's decision to sell the energy business, part of the energy business, which historically was presented as the electricity trading segment, is presented as discontinued operations in comparatives of this financial information. The sale was closed on 21 June 2010.

Non-IFRS Measures

The Company defines EBITDA as net profit after tax from continuing operations before non-controlling interests, income tax, net financial costs, depreciation and amortisation, impairment of property, plant and equipment ('PPE') and gains/losses from sale of PPE. While the amounts included in EBITDA are derived from the Group's financial information, it is not a financial measure determined in accordance with adopted IFRS. Accordingly, EBITDA should not be considered as an alternative to net income or operating income as a sole indication of the Group's performance or as an alternative to cash flows as a measure of the Group's liquidity. The Company currently uses EBITDA in its business operations to, among other things, evaluate the performance of its operations, develop budgets, and measure its performance against those budgets. The Company considers EBITDA a useful tool to assist in evaluating performance because it excludes interest, taxes and any non-cash charges.

The Company defines net debt as total debt less cash and cash equivalents. Total debt includes issued bonds, long-term interest‑bearing loans and borrowings, including their current portions, plus short-term interest‑bearing loans and borrowings. Total debt is defined as gross amount of debt less related expenses. Interest‑bearing loans, bond issues, and borrowings are measured at amortised cost.

Exchange Rates

The Czech Koruna appreciated (based on the average exchange rate) by 3% between the year ended 31 December 2011 and the same period of 2010.

Throughout this presentation of the operating results, the financial results and performance compared to the prior period, both in absolute and percentage terms, are expressed in Euros. The Company may also, where deemed relevant, present variances in terms of constant foreign exchange rates, marked ex-FX, which exclude the estimated effect of currency translation differences and are non-IFRS financial measures. The financial information and described trends could differ considerably if the financial information was presented in CZK.

Financial Performance

Revenues

Revenues of the Group increased by 3% to EUR 1,632,491 thousand in the year ended 31 December 2011 compared to the same period in 2010.

*For the purpose of this analysis, where the Group sells products on an EXW or similar basis, the notional transport element is shown separately in order to separate the impact of changing transport costs from changes in the underlying achieved price for the products sold.

The increase in total revenues mainly reflects higher revenues from sales of both coking coal, and thermal coal. The increase in coking coal revenues is attributable to higher realised prices (see below), partly offset by lower sales volumes while the increase in thermal coal revenues is attributable to both an increase in sales volumes as well as higher realised prices. The decrease in coke revenues reflects a decrease in coke sales volumes by 50%, only partly offset by higher prices. The decrease in other revenues is attributable to the EUR 18,998 thousand electricity distribution revenues in 2010. The energy business was sold on 21 June 2010.

Total production of coal in the year ended 31 December 2011 decreased by 2% compared to production volume in the same period of 2010. Coal volumes sold to third parties decreased by 1%.

* The inventory consists of the volume of the coal available for immediate sale and the volume of the coal for sale that it is expected to be converted from raw coal. The production and sale flow is influenced by the complex process of coal preparation (e.g. separation, showering, drying) and as such the reconciliation between opening and closing inventory doesn't need to tie due to items such as production losses. It excludes coking coal inventory held by OKK that will be used for coke production and amounted to 7kt (2010: 4kt).

Coal inventories increased by 48 kt in the year ended 31 December 2011 compared to a decrease of 80 kt in the same period in 2010.

Coke production decreased by 23% in the year ended 31 December 2011 compared to the same period in 2010, principally caused by the centralisation of all coke production to the Svoboda coking plant. The closure of the Jan Sverma coking plant led to an overall reduction in the Company's annual coke production capacity, which is now approximately 800 kt.

Coke inventories increased by 112 kt in the year ended 31 December 2011 due to deteriorating demand for coke in the second half of the year compared to a decrease of inventories by 169 kt in the same period of 2010.

Operating Expenses

Total operating expenses, net of other operating income and gain/loss from sale of material and property, plant and equipment ('PPE'), increased by 11% (8% on constant currency basis) for the year ended 31 December 2011 compared to the same period in 2010.

Consumption of Material and Energy

The increase in the cost of mining material and spare parts results from higher input costs per equipped longwall due to more demanding geological conditions, as the Group mines at greater depths and uses higher grades of steel for reinforcement underground.

The costs for consumption of externally purchased coal for coking operations increased due to higher prices of coal, partly offset by a decrease in consumed volumes.

In the year ended 31 December 2011, the cost of energy consumption for coal mining increased by 11% mainly due to an increase in the price of electricity and distribution in the Czech Republic. The cost of energy for coking decreased by 41% as a result of lower consumption of electricity and heat, following the closure of the Jan Sverma coking plant and reduced production volumes of coke.

Service Expenses

The increase in contractors' costs is the result of a 6% increase in unit costs per shift, ex-FX, combined with a 9% increase in number of shifts worked and an increase in contractor headcount.

Advisory expenses include one-off costs and fees associated with the re-incorporation process in the amount of EUR 6,547 thousand and a EUR 4,591 thousand tax provision relating to an on-going tax audit initiated by the tax authorities in 2011.

The increase in maintenance costs is mainly attributable to scheduled maintenance of roadways and mining equipment. 

Personnel Expenses

Total personnel expenses increased by 4% compared to the year ended 31 December 2010 on a constant currency basis, mainly as a result of a 4% increase in basic wages per employee at OKD in CZK terms as agreed with the Trade Unions and higher accrual for bonuses and allowances when compared to the year ended 31 December 2010, partly offset by a headcount decrease of 6% and decrease in cost for share-based payments. In addition, the 2011 as well the 2010 personnel expenses were positively affected by the change in the employee benefit provision.