Oracle Power Regulatory News (ORCP)

Interim Results

Oracle Power PLC

29 September 2017

ORACLE POWER PLC

("Oracle" or the "Company" or the "Group")

UNAUDITED INTERIM RESULTS FOR THE 6 MONTHS TO 30 JUNE 2017

Oracle Power PLC (AIM:ORCP), the UK energy developer of a combined lignite coal mine and mine mouth power plant located in the Thar desert in the south-eastern Sindh Province of Pakistan, today announces its unaudited interim results for the six months ended 30 June 2017.

2017 Highlights : January -June

· "Letter of No Objection" issued by Central Power Purchasing Agency;

· Power from the project to be accommodated within high voltage transmission line;

· Water access allocated;

· Change of name, reflecting broader strategic objective to be an integrated resource and energy company.

2017 Highlights : Since 1st July

· Public hearing for power plant Environmental and Social Impact Assessment held in Thar;

· Strengthening of Board;

· Loan Agreement for working capital arranged.

· Memorandum of Understanding agreed in principle with two Chinese State-owned Enterprises for development and funding of Thar project.

CHAIRMAN'S STATEMENT FOR THE 6 MONTHS TO 30 JUNE 2017

Chairman's Statement

I am pleased to present the Company's results for the six months ended 30 June 2017.

Board Appointments

We have made two recent appointments to the Board, Mr Mark Steed in July 2017 and Mr Andreas Migge in August 2017. I am grateful for the experience they bring to the Company, Mark in the field of international stock and commodity markets, corporate finance and trading in securities in emerging economies, and Andreas as an investment banker with a strong investment and cross border experience in the resources and energy sector.

Operational Update

 Since Oracle's elevation to the Priority List, originally announced on 9 January 2017, the Company has continued to seek suitable Chinese partners as Engineering, Procurement and Construction contractors, to construct the mine and the power plant and to provide ongoing operations and maintenance, as well as to provide equity and loan finance for the Project, with the intention that the project finance will be underwritten by Sinosure, the China Export and Credit Assurance Corporation.

In Pakistan, during 2017, work has been progressing on various essential elements to bring the Project to financial close:

January - June :

· The Central Power Purchasing Agency has issued a "Letter of No Objection" for the 660MW power plant and the National Grid has confirmed that power from the project will be accommodated within the planned high voltage transmission line.

· As announced in the year end results to 31 December 2016, the Government of Sindh, Energy Department, has allocated water access of 38 cubic feet per second from its nearly completed pipeline and reservoir. This takes water from the Indus river canal system to the Thar coalfield which will provide sufficient water for power generation for the life of the project.

Since 1st July :

· The Sindh Environmental Protection Agency ("SEPA") held a public hearing for the power plant Environmental Social Impact Assessment on 13 July 2017 in Thar on the mine site, attended by 400 people, with good representation from people affected by the project as well as other interested parties. SEPA has indicated that they will convene a technical hearing shortly.

· On 25 September 2017, the Company announced that it has entered into a loan agreement for up to £1,000,000 with its substantial shareholder Brandon Hill Capital Limited. With this facility in place, it provides Oracle the flexibility to progress its ongoing discussions with various Chinese parties with regards to the full funding of the Thar Project, without equity dilution.

· On 27 September 2017, the Company announced that a Memorandum of Understanding ("MOU") has been agreed in principle with two Chinese State-owned Enterprises for the full development and funding of the Thar project. The MOU sets out, inter alia, that the Chinese parties will take a significant majority equity holding, will arrange debt finance and will provide Engineering, Procurement and Construction contractors for the coal mine and power plant.

Looking Ahead

· The Company will seek to finalise MOU terms with its Chinese partners and it is anticipated that the MOU will be formally signed during October 2017. Further announcements on the progress of the Project will be made as matters progress.

· As signalled by its change of name, the Company is looking at diversification opportunities in the power sector.

Summary of Results

As expected for a mining company at our stage of development, our financial results for the six months to the 30 June 2017 show an operational loss for Oracle Power PLC Group of Companies after taxation of £460,667 (2016: loss of £448,139). At the period end, the Group had cash and cash equivalents of £57,782 (2016: £1,098,594) and total assets less current liabilities of £5,103,036 (2016: £6,009,371). The basic loss per share was 0.05p (2016: loss 0.05p).

The Board extends its appreciation to the Thar Coal Energy Board, the Energy Department, the Sindh Coal Authority and Government of Sindh, as well as the Ministry of Water and Power (Government of Pakistan) for their continued support. The Board also continues to be very grateful for the patience and support of our shareholders.

Anthony Scutt

Chairman of the Board - Oracle Power PLC

Date: 28 September 2017

CONSOLIDATED INCOME STATEMENT

FOR THE 6 MONTHS ENDED 30 JUNE 2016

(Unaudited) (Unaudited) (Audited)

6 months to 6 months to Year ended

30 June 2017 30 June 2016 31 Dec 2016

£ £ £

CONTINUING OPERATIONS

Revenue - - -

Other operating income - - -

Administrative expenses (462,717) (452,710) (919,190)

OPERATING LOSS (462,717) (452,710) (919,190)

Finance costs - - -

Finance income 2,050 4,571 5,726

LOSS BEFORE TAX (460,667) (448,139) (913,464)

Tax - - -

LOSS FOR THE PERIOD (460,667) (448,139) (913,464)

Loss attributable to:

Owners of the parent (460,623) (447,972) (913,258)

Non-controlling interests (44) (167) (206)

(460,667) (448,139) (913,464)

Loss per share attributable to the ordinary equity

 holders of the parent:

Basic and diluted (pence) (0.05) (0.05) (0.10)

STATEMENT OF COMPREHENSIVE INCOME

FOR THE 6 MONTHS ENDED 30 JUNE 2017

(Unaudited) (Unaudited) (Audited)

6 months to 6 months to Year ended

30 June 2017 30 June 2016 31 Dec 2016

£ £ £

LOSS FOR THE PERIOD (460,667) (448,139) (913,464)

OTHER COMPREHENSIVE INCOME

Item that may be reclassified subsequently

 to profit or loss:

Exchange difference arising on translation of foreign

 operations (101,991) 157,012 278,662

Income tax relating to components of other

 comprehensive income - - -

OTHER COMPREHENSIVE INCOME

 FOR THE PERIOD, NET OF INCOME TAX (101,991) 157,012 278,662

TOTAL COMPREHENSIVE INCOME

 FOR THE PERIOD (562,658) (291,127) (634,802)

Total comprehensive income attributable to:

Owners of the parent (560,709) (305,283) (624,574)

Non-controlling interests (1,949) 14,156 (10,228)

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2017

(Unaudited) (Unaudited) (Audited)

As at As at As at

30 June 2017 30 June 2016 31 Dec 2016

Notes £ £ £

ASSETS

NON-CURRENT ASSETS

Intangible assets 4,869,548 4,476,908 4,779,496

Property, plant and equipment 21,196 24,640 23,790

Loans and other financial instruments 3 384,775 377,266 405,446

5,275,519 4,878,814 5,208,732

CURRENT ASSETS

Trade and other receivables 111,814 114,342 98,851

Cash and cash equivalents 57,782 1,098,594 505,904

169,596 1,212,936 604,755

TOTAL ASSETS 5,445,115 6,091,750 5,813,487

EQUITY

SHAREHOLDERS' EQUITY

Share capital 4 911,783 911,783 911,783

Share premium 10,900,723 10,900,723 10,900,723

Translation reserve 43,240 24,079 143,326

Share scheme reserve 86,712 120,194 109,588

Accumulated losses (6,855,138) (5,960,348) (6,417,391)

5,087,320 5,996,431 5,648,029

Non-controlling interest 15,718 12,940 17,667

TOTAL EQUITY 5,103,038 6,009,371 5,665,696

LIABILITIES

CURRENT LIABILITIES

Trade and other payables 5 342,077 82,379 147,791

TOTAL LIABILITIES 342,077 82,379 147,791

TOTAL EQUITY AND LIABILITIES 5,445,115 6,091,750 5,813,487

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE 6 MONTHS ENDED 30 JUNE 2017

Share

Share Accumulated Share scheme

capital losses premium reserve

£ £ £ £

Balance at 31 December 2015 911,783 (5,534,399) 10,900,723 149,782

Changes in equity

Share options expired - 29,588 - (29,588)

Increased investment in subsidiary - (7,565) - -

Loss for the period - (447,972) - -

Other comprehensive income - - - -

Balance at 30 June 2016 911,783 (5,960,348) 10,900,723 120,194

Changes in equity

Share options expired - 10,606 - (10,606)

Increased investment in subsidiary - (2,363) - -

Loss for the period - (465,286) - -

Other comprehensive income - - - -

Balance at 31 December 2016 911,783 (6,417,391) 10,900,723 109,588

Changes in equity

Share options expired - 22,876 - (22,876)

Loss for the period - (460,623) - -

Other comprehensive income - - - -

Balance at 30 June 2017 911,783 (6,855,138) 10,900,723 86,712

Translation Non-controlling Total

reserve Total interest equity

£ £ £ £

Balance at 31 December 2015 (132,534) 6,295,355 5,143 6,300,498

Changes in equity

Share options expired - - - -

Increased investment in subsidiary 13,924 6,359 (6,359) -

Loss for the period - (447,972) (167) (448,139)

Other comprehensive income 142,689 142,689 14,323 157,012

Balance at 30 June 2016 24,079 5,996,431 12,940 6,009,371

Changes in equity

Share options expired - - - -

Increased investment in subsidiary 26,748 (29,111) 29,111 -

Loss for the period - (443,714) (39) (443,753)

Other comprehensive income 145,995 145,995 (24,345) 121,650

Balance at 31 December 2016 143,326 5,648,029 17,667 5,665,696

Changes in equity

Share options expired - - - -

Loss for the period - (460,623) (44) (460,667)

Other comprehensive income (100,086) (100,086) (1,905) (101,991)

Balance at 30 June 2017 43,240 5,087,320 15,718 5,103,037

CONSOLIDATED CASHFLOW STATEMENT

FOR THE 6 MONTHS ENDED 30 JUNE 2017

(Unaudited) (Unaudited) (Audited)

6 months to 6 months to Year ended

30 June 2017 30 June 2016 31 Dec 2016

Notes £ £ £

Cash flows from operating activities

Cash generated from operations 1 (263,896) (614,822) (1,028,337)

Net cash from operating activities (263,896) (614,822) (1,028,337)

Cash flows from investing activities

Purchase of intangible fixed assets (182,693) (155,004) (334,044)

Purchase of tangible fixed assets (1,385) (1,158) (1,663)

Interest received 2,050 4,571 5,726

Net cash from investing activities (182,028) (151,591) (329,981)

Cash flows from financing activities

Share issue - - -

Cost of share issue - - -

Net cash from financing activities - - -

(Decrease)/Increase in cash

 and cash equivalents (445,924) (766,413) (1,358,318)

Cash and cash equivalents at beginning

 of period 2 505,904 1,860,662 1,860,662

Effect of foreign exchange rate changes (2,198) 4,345 3,560

Cash and cash equivalents at end of period 57,782 1,098,594 505,904

NOTES TO THE CASH FLOW STATEMENT

FOR THE 6 MONTHS ENDED 30 JUNE 2017

1. RECONCILIATION OF LOSS BEFORE TAX TO CASH GENERATED FROM OPERATIONS

(Unaudited) (Unaudited) (Audited)

6 months to 6 months to Year ended

30 June 2017 30 June 2016 31 Dec 2016

£ £ £

Loss before tax (460,667) (448,139) (913,464)

Depreciation 555 195 554

Shares issued in lieu of remuneration - - -

Loss/(Gain) on foreign exchange movements 20,836 (37,828) (66,196)

Finance income (2,050) (4,571) (5,726)

(441,326) (490,343) (984,832)

(Increase)/Decrease in trade and

 other receivables (12,963) (26,737) (11,247)

Increase/(Decrease) in trade and

 other payables 190,393 (97,742) (32,258)

Cash generated from operations (263,896) (614,822) (1,028,337)

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the cash flow statement in respect of cash and cash equivalents are in respect of the statement of financial position amounts:

Period ended 30 June 2017

(Unaudited) (Unaudited) (Audited)

As at As at As at

30 June 2017 30 June 2016 31 Dec 2016

£ £

Cash and cash equivalents 57,782 1,098,594 505,904

Cash and cash equivalents consist of cash in hand and balances with banks.

NOTES TO THE FINANCIAL STATEMENTS UNAUDITED RESULTS

FOR THE 6 MONTHS ENDED 30 JUNE 2017

1. Basis of preparation

These interim financial statements for the six month period ended 30 June 2017 have been prepared using the historical cost convention, on a going concern basis and in accordance with applicable International Financial Reporting Standards as adopted by the European Union ("IFRS") and with those parts of the UK Companies Act 2006 applicable to companies reporting under IFRS as adopted by the European Union. They have also been prepared on a basis consistent with the accounting policies expected to be applied for the year ending 31 December 2017, and which are also consistent with the accounting policies applied for the year ended 31 December 2016 except for the adoption of any new standards and interpretations.

These interim results for the six months ended 30 June 2017 are unaudited and do not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. The financial statements for the year ended 31 December 2016 have been delivered to the Registrar of Companies and filed at Companies House and the auditors' report on those financial statements was unqualified and did not contain a statement made under Section 498(2) or Section 498(3) of the Companies Act 2006.

2. Loss per share

Basic earnings per share is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of ordinary shares of 911,783,126 (30 June 2016 - 911,783,126 and 31 December 2016 - 911,783,126) outstanding during the period. There is no difference between the basic and diluted loss per share.

3. Restricted bank deposits

In February 2015, US$500,000 was placed on deposit with Habib Bank as security for a performance bond. The deposit is repayable on compliance with the conditions of the bond.

4. Called up share capital

(Unaudited) (Unaudited) (Audited)

30 June 2017 30 June 2016 31 Dec 2016

£ £ £

Allotted, called up and fully paid

911,783,126 Ordinary shares of 1p each 911,783 911,783 911,783

The number of shares in issue was as follows:

Number of shares

Balance as 31 December 2015 911,783,126

Issued during the period -

Balance at 30 June 2016 911,783,126

Issued during the period -

Balance at 31 December 2016 911,783,126

Issued during the period -

Balance at 30 June 2017 911,783,126

5. Trade and Other Payables

(Unaudited) (Unaudited) (Audited)

As at As at As at

30 June 2017 30 June 2016 31 Dec 2016

£ £ £

Trade Payables 192,077 82,379 147,791

Advances 150,000 - -

342,077 82,379 147,791

Advances constitute funds provided to the Company by Brandon Hill Capital Limited in advance of a loan agreement being entered into between the two parties. This loan agreement is described further in note 6 below.

6. Post balance sheet events

The Company entered into a loan agreement for £1,000,000 with its major shareholder Brandon Hill Capital Limited. Under the agreement Oracle is able to draw down funds of up to £100,000 per month. A coupon of 12% per annum (accruing daily) will be applied only to those funds drawn by the Company. There are no options, warrants or convertible aspect to the loan and no fee owed to Brandon Hill Capital Limited for providing the funds. The Loan is unsecured. The Loan is repayable 12 months from the date of the loan agreement, or earlier, at Oracle's option, without penalty. As at 28 September 2017, a total of £350,000 has been drawn.

There are no other post balance sheet events to report.

For further information please contact:

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.